August 1, 2025 | SIBTF.org – California lawmakers are moving forward with AB 1329, a key piece of SIBTF reform legislation designed to tighten eligibility, expand oversight, and limit long-term financial exposure tied to the Subsequent Injuries Benefits Trust Fund. On July 30, the bill passed the Senate Labor, Public Employment and Retirement Committee, advancing the conversation on cost containment and claims reform.
Legislative Momentum Builds
AB 1329, introduced by Assemblymember Jim Patterson (R-Fresno), reflects recommendations from the RAND Corporation and the Legislative Analyst’s Office. Both reports warned that unmitigated growth in SIBTF liabilities—now estimated at $11 to $12 billion—poses a serious challenge to California’s workers’ compensation framework.
This SIBTF reform legislation proposes:
- Requiring verified, substantial evidence of a pre-existing permanent disability to qualify,
- Increasing Qualified Medical Evaluator (QME) oversight to ensure claim legitimacy,
- Transferring fund administration from the State Compensation Insurance Fund (SCIF) to the Department of Industrial Relations (DIR) for stricter fiscal control.
Impact on Claimants and Employers
For claimants, the proposed changes mean additional documentation will be necessary to prove prior disability before obtaining SIBTF benefits. Legal representatives will need to recalibrate how they build and present claims.
Employers, already concerned with surging annual fund assessments, view this legislation as a long-overdue effort to stabilize contributions and reduce abuse. Without reform, future annual liabilities could exceed $3 billion, according to projections from the LAO.
Timeline and What’s Next
AB 1329 must now pass the Senate Appropriations Committee before proceeding to a floor vote later this legislative session. If approved and signed into law, the changes would take effect January 1, 2026, giving stakeholders less than five months to adapt compliance procedures and update internal claims protocols.
Why This Matters
The SIBTF reform legislation in AB 1329 represents the most serious attempt in over a decade to restructure how subsequent injury claims are processed and funded. With California’s workers’ comp system under financial pressure, legislators and stakeholders are seeking actionable solutions to ensure long-term viability.
Subscribe to SIBTF.org for the latest updates on AB 1329, regulatory changes, and resources that matter to claimants, employers, and legal professionals. Stay ahead—get informed today.
Read More from SIBTF.org:
- SIBTF Regulatory Update: DWC Withdraws Proposed Medical Review Changes
- WCIRB Releases New X-Mod Estimator for 2025: Impact on SIBTF Claims
- California Workers’ Comp Experience Declines in 2024: Impacts on SIBTF Payouts
FAQs: About SIBTF Reform Legislation
What changes does AB 1329 propose in SIBTF reform legislation?
The bill tightens eligibility criteria, adds QME oversight, and shifts fund administration to DIR, aiming to reduce fraud and manage rising liabilities.
How would AB 1329 affect existing SIBTF claimants and employers?
Claimants may face stricter documentation standards, while employers could benefit from reduced long-term assessments tied to SIBTF claims.
Where can I review current status of this SIBTF reform legislation?
You can follow AB 1329’s progress via the California Legislative Information site or LegiScan’s Bill Tracker.
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.