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Senator Tom Torlakson Chair, Senate Appropriations Committee State Capitol, Room 5050 Sacramento, CA 95814 Dear Senator Torlakson: I OPPOSE AB 1212 (Nuñez), which would require the Administrative Director (AD) of the Division of Workers’ Compensation to revise the Permanent Disability Rating Schedule (PDRS), with the effect of increasing permanent disability ratings, prior to 1/1/2009. While it is clear that permanent disability (PD) ratings have decreased since the adoption of SB 899, it is not clear to what extent those reductions are problematic. Prior to the adoption of SB 899 PD claims were filed in California at a rate 3 times the national average, and 20% higher than the next highest state. The Commission on Health Safety and Workers’ Compensation (CHSWC) has measured the reduction in benefits in a way that provides an incomplete picture. CHSWC determined the percentage of reduction in PD benefits by comparing post-reform ratings against pre-reform ratings. However, the sample of pre-reform ratings is made up of only one year of data from 2004, which is a period of time in which PD costs were at their height. While this was done due to limitations in data, according to CHSWC, it does create the appearance of a more dramatic decline in benefits. Requiring the AD to increase benefits through regulations based on incomplete and faulty data can only lead us down the path to higher workers’ compensation costs. I urge a more cautious, collaborative, and data-driven approach to answering questions about PD benefits. Notably, stakeholders need to share a common understanding about what PD should accomplish and how to benchmark the performance of the system. AB 1212 (Nuñez) leads us farther away from this goal.