August 11, 2025 | SIBTF.org — California lawmakers are taking decisive steps to reshape the future of the Subsequent Injuries Benefits Trust Fund (SIBTF). AB 1329, introduced by Assemblymember Liz Ortega, is now under active review by the State Senate’s Labor, Public Employment and Retirement Committee. The bill proposes sweeping changes to eligibility criteria and oversight of the embattled fund.
Tighter Eligibility and Stronger Proof Requirements
The AB 1329 SIBTF bill aims to implement stricter thresholds for applicants by mandating “substantial medical evidence” to establish the severity and relevance of pre-existing conditions. This move responds to growing concern about inflated claims and inconsistent documentation contributing to the Fund’s ballooning liabilities—now estimated at over $20 billion.
If passed, AB 1329 would reinforce documentation standards for both medical and legal stakeholders. Claims based solely on self-reporting or vague historical injuries would no longer meet the minimum burden of proof under the revised statute.
DIR to Take Over Fund Oversight
A central provision in the AB 1329 SIBTF bill is the transfer of Fund administration to the Department of Industrial Relations (DIR). Proponents argue that centralized oversight under DIR would streamline operations, improve compliance, and enable better long-term forecasting of liabilities.
Currently, SIBTF operations are mired in bureaucratic fragmentation, often leading to delays in claims processing, inconsistent evaluations, and challenges in fraud detection. The move to DIR signals the state’s intention to tighten control, enhance audit authority, and ensure the Fund’s sustainability through better governance.
Legislative Momentum Builds
The bill has already cleared the Assembly with bipartisan support. Stakeholders from labor unions, applicant attorneys, and employer groups are now watching closely as the bill undergoes scrutiny in the Senate. Public hearings are expected to draw expert testimony on the implications of the proposed medical evidence standard and DIR’s capacity to absorb oversight responsibilities.
Critics of the bill argue that stricter eligibility may disadvantage genuinely injured workers with complex medical histories. However, supporters maintain that the changes are necessary to prevent SIBTF fraud, close loopholes, and protect the Fund for future injured workers.
Employers and Attorneys Should Prepare
If enacted, the AB 1329 SIBTF bill will require a fundamental shift in how SIBTF claims are prepared and defended. Medical documentation must be explicit, thorough, and directly linked to pre-existing disability impairments.
Employers and defense attorneys are advised to audit current open claims, verify the sufficiency of submitted evidence, and prepare for a more aggressive compliance environment.
Track AB 1329 directly via the California Legislative Information portal for real-time updates.
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Read More from SIBTF.org:
- SIBTF Liabilities Top $20 Billion in 2025 Forecast
- LAO Report: SIBTF “No Longer Aligned” with Legislative Intent
- SIBTF Reform Unlikely in 2025 Amid Budget and Legislative Gridlock
FAQs: Understanding AB 1329 and the Future of SIBTF
What is the purpose of the AB 1329 SIBTF bill?
The AB 1329 SIBTF bill aims to reform California’s Subsequent Injuries Benefits Trust Fund by requiring substantial medical evidence, tightening eligibility, and transferring fund oversight to the Department of Industrial Relations.
How will AB 1329 impact current and future SIBTF claims?
If enacted, AB 1329 will raise the burden of proof, making it harder for applicants to qualify for benefits without robust, documented pre-existing conditions. Pending claims could face stricter scrutiny.
Why is legislative reform like AB 1329 being considered now?
AB 1329 was introduced in response to growing concerns over fraud, rising liabilities, and a lack of oversight in SIBTF. Lawmakers see reform as essential to preserving the Fund’s long-term solvency.
What is SIBTF?
The Subsequent Injuries Benefits Trust Fund (SIBTF) helps California workers who suffer a new workplace injury and already had a prior disability. It offers supplemental compensation when combined impairments severely limit earning capacity.