September 17, 2025 | SIBTF.org — The push for AB 1329 SIBTF reforms is gaining momentum in Sacramento. After a key Senate Appropriations Committee hearing on August 18, 2025, the bill cleared fiscal review and advanced through the legislative process. By September 2, 2025, AB 1329 was read a second time in the Senate and formally ordered to a third reading, bringing it closer to a final floor vote.
The momentum behind AB 1329 SIBTF reforms reflects growing urgency to stabilize the trust fund and address concerns raised by lawmakers, labor groups, and insurers. With liabilities surpassing $20 billion, legislators argue that reform is essential to protect the program’s long-term viability while ensuring injured workers with legitimate claims continue to receive supplemental benefits. The upcoming Senate third reading will serve as a pivotal moment, as both supporters and opponents prepare to make their final case on how the reforms could reshape California’s workers’ compensation system.
Key Reforms at Stake
AB 1329 proposes several major changes to the Subsequent Injuries Benefits Trust Fund (SIBTF), including:
- Requiring substantial medical evidence for preexisting disability claims.
- Creating a centralized Qualified Medical Evaluator (QME) database.
- Transferring trustee responsibilities from the State Compensation Insurance Fund (SCIF) to the Department of Industrial Relations (DIR).
These measures aim to improve oversight, reduce costs, and ensure fairness in how benefits are awarded. These measures aim to improve oversight, reduce costs, and ensure fairness in how benefits are awarded. Lawmakers emphasize that the AB 1329 SIBTF reforms are designed not only to streamline administrative processes but also to strengthen protections for both workers and employers.
By shifting oversight to the Department of Industrial Relations and tightening medical documentation standards, the bill seeks to reduce fraudulent claims while preserving access for those with genuine subsequent injuries. Supporters argue this balance is critical to restoring confidence in the fund and preventing further financial strain on California’s workers’ compensation system.
Support and Opposition
Supporters argue the bill provides necessary accountability and will help control SIBTF’s rising liabilities, which have already exceeded $20 billion. However, opposition from groups such as the California Coalition on Workers’ Compensation reflects concerns that stricter evidence requirements could make it harder for injured workers to qualify for benefits.
Critics of the AB 1329 SIBTF reforms warn that the proposal could unintentionally shift the burden onto injured workers by raising the threshold of proof required for eligibility. Labor advocates argue that while accountability is important, reforms must not undermine the core mission of the fund—to provide supplemental benefits for individuals whose combined disabilities significantly reduce their earning capacity. The debate highlights the challenge of balancing fiscal responsibility with fair access to compensation.
Next Steps for AB 1329
With AB 1329 now scheduled for its third reading, the Senate will soon decide whether to advance the bill to the Governor’s desk. The coming weeks will be critical for stakeholders, as the vote could determine the future of California’s SIBTF program.
The outcome of the AB 1329 SIBTF reforms will be closely monitored by policymakers, legal experts, and injured workers across California. If the bill clears the Senate floor, it will move to the Governor for consideration, where advocacy groups on both sides are expected to intensify their efforts. The decision will not only shape the immediate administration of the Subsequent Injuries Benefits Trust Fund but also set a precedent for how future reforms in the state’s workers’ compensation system are crafted and implemented.
For employers, insurers, and injured workers alike, the AB 1329 SIBTF reforms represent more than just a policy shift—they signal how California intends to manage long-term disability costs and claimant rights. Businesses are watching closely for potential cost savings tied to reduced fund liabilities, while workers and their advocates remain focused on maintaining fair access to benefits. The third reading in the Senate is expected to be a decisive moment that will reveal whether lawmakers prioritize fiscal reform, worker protections, or a balance of both.
For further details on AB 1329’s progress, visit LegiScan.
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Read More from SIBTF.org:
- LAO Warns SIBTF Has Drifted: Stricter Eligibility and Review Reforms Proposed
- SIBTF Liabilities Soar Past $20 Billion: AB 1329 Seen as Partial Fix
- AB 1329 Tightens Standards: Proof of Preexisting Disability’s Impact Now Required
FAQs: AB 1329 SIBTF Reforms
What is the current status of AB 1329?
As of September 2, 2025, AB 1329 has passed its second Senate reading and is now set for a third reading before a full vote.
What major changes does AB 1329 propose for SIBTF?
The bill includes stricter medical evidence requirements, a QME database, and a transfer of trustee oversight to the Department of Industrial Relations.
Why is there opposition to AB 1329?
Some employer and labor groups fear the stricter eligibility and evidence standards could restrict access for injured workers.
When will AB 1329 face a final vote?
The bill is awaiting its third reading in the Senate. A floor vote is expected later in the 2025 legislative session.
How will the AB 1329 SIBTF reforms impact employers?
Employers may see reduced costs if the reforms succeed in controlling SIBTF liabilities. However, they could also face new compliance requirements tied to stricter medical documentation standards.
What do legal experts say about the AB 1329 SIBTF reforms?
Legal analysts believe the reforms could reshape how disability claims are handled in California, setting a precedent for future workers’ compensation legislation nationwide.
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.