September 24, 2025 | SIBTF.org — California’s most closely watched SIBTF reform is now awaiting a decision from the Governor—and time is running out. After months of legislative debate, AB 1329 has reached the final stage, placing the future of the Subsequent Injuries Benefits Trust Fund at a crossroads. Supporters say the measure is critical to stabilizing a system burdened by billions in liabilities, while opponents warn the new requirements could create fresh obstacles for injured workers seeking benefits.
Observers note that this SIBTF reform effort is part of a broader trend in California’s workers’ compensation system, where policymakers are increasingly focused on curbing long-term liabilities and tightening oversight of benefit programs. Previous audits by the State Auditor’s Office have flagged gaps in documentation and inconsistent application of eligibility standards within the Fund, raising concerns about transparency and accountability. Labor and employer groups alike are closely watching whether AB 1329 becomes law, as its outcome could set a precedent for how the state balances fiscal sustainability with the protection of injured workers.
Legislative Milestone: AB 1329 Awaits Governor’s Signature
After months of committee hearings and late-session amendments, Assembly Bill 1329 has cleared the Legislature and is now awaiting action by Governor Gavin Newsom.
The bill would:
- Require substantial medical evidence proving that a worker’s pre-existing permanent partial disability caused measurable loss of earnings or daily-living capacity.
- Transfer administration of the Subsequent Injuries Benefits Trust Fund (SIBTF) from the State Compensation Insurance Fund to the Department of Industrial Relations.
- Establish a new database of qualified medical evaluators to streamline claim reviews.
The Governor must sign or veto the measure by October 13, 2025. If he takes no action by that date, the bill will automatically become law without his signature, a procedural outcome that has occurred with other high-profile labor measures in recent years. Political analysts suggest the Governor may be weighing the competing interests of employer coalitions pushing for fiscal restraint and labor advocates warning of reduced access to benefits.
The decision on this SIBTF reform also carries broader implications, as it could influence future negotiations over California’s workers’ compensation framework and signal the administration’s priorities heading into the 2026 legislative session.
Why This Decision Matters
State analysts estimate SIBTF liabilities exceed $26 billion and grow by roughly $3 billion each year. Business groups argue that without SIBTF reform the Fund will remain a major financial burden on employers who finance it through assessments. Injured-worker advocates caution that new proof requirements could make legitimate claims harder to win.
Potential Impact on Employers and Injured Workers
If signed, AB 1329 would take effect January 1, 2026, immediately reshaping eligibility criteria for second-injury benefits. Employers could see slower growth in annual SIBTF assessments, while claimants may face a higher evidentiary bar when combining pre-existing conditions with work-related injuries.
What’s Next
Until the Governor acts, the future of SIBTF reform remains uncertain. Stakeholders across California’s workers’ compensation system are urging quick resolution so they can prepare for new compliance and funding requirements.
Read the full enrolled bill text directly from the California Legislative Information site for complete details.
Subscribe to SIBTF.org for immediate alerts the moment the Governor announces a decision.
Read More from SIBTF.org:
- SIBTF Faces Financial Strain and Growing Backlog
- California Assembly Approves AB 1329: Stricter Eligibility for SIBTF Benefits
- AB 1329 Advances: SIBTF Reform Bill Moves to Senate Third Reading
FAQs: AB 1329 & SIBTF Reform
What is AB 1329?
A reform bill designed to tighten eligibility and strengthen oversight of California’s Subsequent Injuries Benefits Trust Fund.
When is the Governor’s deadline to act?
Governor Newsom must sign or veto AB 1329 by October 13, 2025.
How large is the current SIBTF liability?
Analysts estimate more than $26 billion in unfunded liabilities, with about $3 billion added annually.
When would the reforms take effect if signed?
Most provisions, including the new medical evidence requirements, would become law on January 1, 2026.
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.