SIBTF 101: What Attorneys Need to Know About AB 1329

What’s Going On with SIBTF?

AB 1329 proposes major updates to SIBTF, including stricter proof requirements for pre-existing  disabilities and clearer eligibility rules starting January 1, 2026. If passed, it will change how claims are prepared, evaluated, and approved.

Key Changes in AB 1329

• The fund is renamed Second-Chance Employers Risk Reduction Trust Fund
• For injuries occurring between January 1, 2005 and January 1, 2013, disability calculations remain based on:
  • Age
  • Occupation
  • Impact on earning ability
• For injuries after January 1, 2013, a fixed disability adjustment factor of 1.4 is applied to disability calculations

Why This Matters to Attorneys and Claimants

• Claims without strong, well-documented proof may be denied trust fund benefits
• Medical evaluations must be:
  • Precise
  • Thorough
  • Directly linked to functional impact
• This bill raises the standard of evidence, making medical evaluations more critical than ever

How Exam Specialists Medical Group Is Adapting

To support attorneys and claimants, Exam Specialists Medical Group is preparing by:

• Enhancing training for physicians and evaluators to align reports with the new legal standards
• Revising evaluation templates to focus on clear documentation of prior disability impact
• Increasing collaboration with attorneys to ensure reports meet evidentiary needs
• Adjusting scheduling and workflows to manage increased evaluation complexity and volume while waiting for consideration of veto

Important Dates and Legislative Timeline of AB 1329

• Jan 1, 2005 – Jan 1, 2013: Legacy disability calculation rules apply
• Jan 1, 2013 onward: Fixed 1.4 adjustment factor applies
• June 3, 2025: The bill passes the Assembly floor with a vote of 63 ayes to 1 noe. It is then ordered to the Senate.
• June 4, 2025: The bill is received in the Senate and assigned to the Senate Rules Committee for referral.
• June 18, 2025: The bill is referred to the Senate Committee on Labor, Public Employment, and Retirement.
• July 9, 2025: The bill passes the Senate Committee on Labor, Public Employment, and Retirement (4-1 vote) and is re-referred to the Senate Appropriations Committee.
• August 18, 2025: The bill is placed on the Senate Appropriations Committee's suspense file.
• August 29, 2025: The bill is taken off the suspense file, amended, and passed by the Senate Appropriations Committee (5-2 vote).
• September 8, 2025: The bill passes the full Senate floor with a vote of 29 ayes to 10 noes. It is then sent back to the Assembly for concurrence on the Senate's amendments.
• September 10, 2025: The Assembly concurs with the Senate amendments (63-4 vote). The bill is then enrolled and prepared for the Governor's desk.
• September 22, 2025: The enrolled bill is presented to the Governor at 3:00 p.m.. The Governor has 12 days to act, which was extended to October 13, 2025, due to the end of the legislative session.
• October 3, 2025: The Governor vetoes Assembly Bill 1329 and sends his veto message back to the Assembly. 

Current Pending Action

The current status of AB 1329 is "Consideration of Governor's veto pending" in the Assembly. 

The California Constitution allows the Legislature 60 calendar days (excluding joint recesses) to consider overriding a gubernatorial veto. If two-thirds of both the Assembly and the Senate vote to override the veto, the bill becomes law without the Governor's signature. 

As of today, the Assembly has not yet voted to override the veto. If the Legislature does not act on the veto within the specified timeframe, the veto is sustained, and the bill dies.

Assembly Bill 1329 is still relevant because the California Assembly can attempt to override the Governor's veto. The bill's status is currently listed as "Consideration of Governor's veto pending". 

Here's why it remains relevant:

• Veto Override Possibility: A California Governor's veto can be overridden by a two-thirds vote in both the Assembly and the Senate. While this is a rare occurrence (it hasn't happened since 1979), the option remains constitutionally available to the Legislature.
• Active Consideration: The bill is still technically "alive" because the process for addressing the veto message has begun in the house of origin (the Assembly). The Legislature has 60 calendar days (not counting joint recesses) to act on the veto from when it was issued on October 3, 2025.
• Policy Debate Continues: The issues addressed by AB 1329—reforming the Subsequent Injuries Benefits Trust Fund (SIBTF) for workers' compensation—are significant and ongoing concerns. In his veto message, the Governor acknowledged the dire situation of the SIBTF and ordered the Division of Workers' Compensation to prepare a reform plan, indicating that the topic will be a focus of future legislative efforts, even if this specific bill does not become law.

So, while the bill did not become law via the typical process (Governor's signature), the legislative process regarding it is not entirely finished, and the underlying policy issue is a high priority.

References

1. CalMatters Digital Democracy — AB 1329
Exam information and legislative history provided by CalMatters Digital Democracy
Website: https://calmatters.digitaldemocracy.org/bills/ca_202520260ab1329

2. LegiScan — AB 1329 Bill Text
Full bill text, version history, and legislative tracking provided by the LegiScan database
Website: https://legiscan.com/CA/bill/AB1329/2025