May 9, 2025 | SIBTF.org – SIBTF Bill Amendments: As Assembly Bill 1329 (Ortega) progresses through the California Legislature, it has become a focal point of intense discussion among lawmakers, insurers, and employer advocacy groups. The bill is designed to restore fiscal balance to the Subsequent Injuries Benefits Trust Fund (SIBTF)—a program intended to support workers with pre-existing disabilities who suffer subsequent workplace injuries.
However, while the proposal is largely seen as a necessary step toward reform, several major payors and business coalitions argue that the SIBTF bill amendments in their current form fall short of delivering the comprehensive changes needed to ensure long-term stability. These stakeholders are actively lobbying for additional provisions they believe are essential to rein in costs, reduce abuse, and bring greater consistency to claim evaluations.
What AB 1329 Seeks to Do
AB 1329 proposes several key changes:
- Clarifies what counts as a pre-existing disability by requiring evidence that it limited work or daily function.
- Mandates that all medical-legal evaluations use the Qualified Medical Evaluator (QME) system.
- Codifies how permanent disability ratings must be calculated using DFEC or a 1.4 multiplier, depending on injury dates.
- Transfers benefit payment responsibilities from the State Compensation Insurance Fund (State Fund) to the Department of Industrial Relations (DIR) for greater efficiency.
Supporters say the bill addresses core issues driving SIBTF’s growing liabilities. Notably, the bill incorporates several recommendations from the RAND Corporation’s 2024 report, which detailed how outdated processes and unchecked evaluator discretion have led to skyrocketing costs. SIBTF Bill Amendments
Payor Concerns: More Reforms Needed
However, employer-side stakeholders—including the California Chamber of Commerce, American Property Casualty Insurance Association (APCIA), and the California Coalition on Workers’ Compensation (CCWC)—have issued “oppose unless amended” letters. They argue the bill stops short of fully addressing known problems, such as:
- The Todd Decision (2020), which allowed simple addition of disability ratings instead of using the Combined Values Chart. This change dramatically increased the number of applicants who qualify for 100% disability and lifelong benefits.
- Surging legal and medical-legal costs, which rose to $27 million in attorney fees alone in 2022, a stark contrast to $770,000 in 2010.
- Settlement avoidance, as applicants now frequently pursue litigation to maximize awards rather than negotiate a lump sum.
While AB 1329 reins in some costs, payors want broader statutory reforms to fully stabilize the Fund.
Amendment Proposals in the Works
Insiders report that proposed amendments under discussion may include:
- Restoring the Combined Values Chart (CVC) method to reduce inflated combined ratings.
- Capping attorney fees tied to SIBTF claims.
- Reinstating limitations on evaluations to control “doctor shopping” and excessive reports.
- Strengthening fraud prevention by tightening the types of medical documentation accepted.
These changes would help bring SIBTF back in line with traditional workers’ compensation systems and ensure the Fund operates sustainably for years to come.
What’s at Stake for Employers and Workers
For employers, rapidly growing SIBTF surcharges represent a rising cost of doing business. For injured workers, delays and disputes—often triggered by vague statutes—can mean months or years without compensation.
AB 1329 represents a pivotal opportunity. If amended thoughtfully, it could strike a balance between fiscal responsibility and support for truly eligible workers.
Stay informed and get involved in shaping fair and sustainable SIBTF policy. Visit SIBTF.org for updates, resources, and tools for employers, claimants, and attorneys.
Read More from SIBTF.org:
- California Employers Face Mounting SIBTF Liabilities
- Doctor Pleads Guilty to Writing SIBTF Reports After Suspension
- Summary and Background of SIBTF
- California’s Subsequent Injuries Benefits Trust Fund
FAQs: SIBTF Bill Amendments 2025
What are the key goals of AB 1329’s SIBTF bill amendments?
AB 1329’s SIBTF bill amendments aim to restore fiscal integrity to the Subsequent Injuries Benefits Trust Fund by clarifying eligibility, enforcing QME standards, and improving oversight of disability rating methods.
Why are major payors opposing the current version of AB 1329?
Payors argue the current SIBTF bill amendments do not go far enough, especially after the Todd Decision’s impact. They seek stronger statutory reforms to control rising costs and prevent inflated claims.
How could proposed amendments change SIBTF operations?
Potential amendments include restoring the Combined Values Chart, capping attorney fees, tightening evaluation guidelines, and bolstering anti-fraud measures to ensure long-term sustainability of the Fund.
Where can stakeholders track the progress of SIBTF bill amendments?
Stakeholders can follow the legislative journey of SIBTF bill amendments, such as AB 1329, through the official California Legislative Information portal, which offers real-time updates on bill texts, votes, analyses, and committee actions. Monitoring this resource ensures transparency as proposed reforms continue to evolve: leginfo.legislature.ca.gov.
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.