April 4, 2025 | Sacramento, CA — MedLegalNews.com — Assemblymember Liz Ortega has amended Assembly Bill 1329 to significantly alter California’s Subsequent Injuries Benefits Trust Fund (SIBTF), proposing its renaming to the Second-Chance Employer’s Risk Reduction Trust Fund.
The SIBTF Reform Bill aims to reform the program that provides supplemental benefits to workers with pre-existing disabilities who suffer a subsequent work-related injury, resulting in a combined permanent disability rating of at least 70%.
Under the proposed changes, the program would maintain its core mission — assisting workers who suffer a subsequent industrial injury that compounds a prior disability — but with clearer standards and accountability mechanisms. Lawmakers say the reforms are intended to curb misuse, align benefit calculations with updated impairment ratings, and create a more transparent claims process.
Key changes proposed in AB 1329 include:
- Stricter Proof of Pre-Existing Disability: For injuries occurring on or after January 1, 2026, claimants must provide “substantial evidence” of a pre-existing permanent partial disability supported by prior medical records, testimony, and other evidence predating the subsequent injury.
- Qualified Medical Evaluator Database: The Division of Workers’ Compensation will establish a database of qualified medical evaluators with expertise in SIBTF claims.
- Standardized Medical-Legal Evidence: Medical-legal evidence follows standard workers’ compensation procedures, with payments limited to the Medical-Legal Fee Schedule.
- State Direct Payment: The Department of Industrial Relations (DIR) will assume direct benefit payments, replacing the State Compensation Insurance Fund.
- Clarification of Permanent Disability Definitions: The bill codifies existing law regarding permanent disability calculations for injuries before and after January 1, 2013, specifying the use of whole-person impairment and the statutory diminished future earning capacity modifier.
- Fund Name Change: The “Subsequent Injuries Benefits Trust Fund” would be renamed the “Second-Chance Employer’s Risk Reduction Trust Fund”.
The SIBTF, created to encourage the hiring of World War II veterans, has seen a substantial increase in assessments. This surge, rising from $14 million in 2015 to $848 million in 2025, stems from several factors. Like changes in apportionment rules and permanent disability rating calculations, as highlighted in a 2024 Rand Corp. report.
Rand’s analysis also revealed significant growth in benefit payments, from $13.6 million in 2010 to $232 million in 2022. With a substantial portion going towards medical-legal expenses. The report suggested that changes in workers’ compensation law, including those in Senate Bill 863, and the Todd v. SIBTF decision, have contributed to increased SIBTF claims and liabilities.
Assembly Bill 1329, has been referred to the Assembly Insurance Committee but has not yet been scheduled for a hearing.
For full legislative tracking and bill text, visit the California Legislative Information Portal to follow updates on Assembly Bill 1329.
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FAQs: SIBTF Reform Bill
What is the purpose of the SIBTF reform bill?
The SIBTF reform bill aims to modernize the Subsequent Injuries Benefits Trust Fund by tightening eligibility rules and improving oversight of disability benefit claims.
How does the SIBTF reform bill affect injured workers?
Under the SIBTF reform bill, injured workers must provide stronger evidence of pre-existing disabilities, supported by medical records and prior evaluations.
What changes are proposed under the SIBTF reform bill?
The bill introduces a Qualified Medical Evaluator database, standardizes medical-legal evidence, and shifts benefit payments directly under the Department of Industrial Relations.
When will the SIBTF reform bill take effect?
If passed, the SIBTF reform bill would apply to injuries occurring on or after January 1, 2026, pending approval by the Assembly Insurance Committee in Sacramento.