Opinion
LILLIE, P. J.
Petitioner Ricky D. Graczyk (applicant) seeks review of the decision of respondent Workers’ Compensation Appeals Board (Board) that he was not an employee of respondent California State University, Fullerton (CSUF) when injured in a football game while he was a student at CSUF. We conclude that the Board correctly determined applicant was not an employee of CSUF.
Applicant allegedly sustained injuries to his head, neck and spine while playing varsity college football for CSUF on September 9, 1978, as well as in the period from August 7, 1977, through November 27, 1978.
Trial of his application was bifurcated, and the matter was submitted on the issue whether he was an employee of CSUF within the meaning of the statutory definition of employee (Lab. Code, §§ 3351, 3352).
The evidence established that applicant enrolled as a student at CSUF in the fall of 1977, following completion of high school. Football scouts from CSUF and two other universities recruited him; however, he chose CSUF because it was “close to my mom and the rest of my family.” He commenced studies and playing football immediately upon enrollment.
Representatives of the CSUF football program encouraged applicant to apply for financial aid. During his first year as a student, he received financial aid, including a college opportunity grant of $1,100 a year from the state, a supplementary grant of approximately $800 from CSUF, and a student loan. Other than the student loan, the grants he received in the first year were based upon financial need and academic achievement, and were unrelated to athletic achievement.
In applicant’s second year at CSUF, he received an athletic scholarship in the amount of $1,600 a year, payable in monthly installments. The athletic coach determined recipients of athletic scholarships based on athletic progress and value to the football team; and the scholarship funds were raised by alumni and business groups. Applicant had intended to continue playing on the football team even had he not received the athletic scholarship. The scholarship was for a full year and could not be terminated unless the recipient quit the team, dropped out of school, or failed to maintain academic standards. The scholarship was intended to meet costs of room and board, but there was no control over the manner in which the recipient spent it. Applicant understood that it was to be used for student expenses, and he so used it.
The workers’ compensation judge found that applicant was an employee of CSUF, concluding in essence that he was an employee within the statutory definition of employee as interpreted in
Van Horn
v.
Industrial Acc. Com.
(1963) 219 Cal.App.2d 457 [33 Cal.Rptr. 169]; and that although section 3352, subdivision (k), excluding student athletes as employees, is constitutional, it was enacted in 1981 and could not properly be applied retroactively to deprive applicant of his vested right to employee status under the law existing at the time of his injury.
The Board granted reconsideration and found (in a two-to-one decision) that applicant was not an employee of CSUF. The Board’s determination was based on interpretation of the “relevant statutes defining ‘employee.’ ” Thus, the Board noted the general requirement (§ 3600) of the existence of “employment” as a prerequisite to workers’ compensation coverage, as well as the general statutory definition of “employee” (§ 3351) and the statutory definition of persons excluded from the general definition of employee (§ 3352). The Board concluded that the Legislature’s 1981 amendment of
section 3352, adding subsection (k) thereto and expressly declaring the amendment retroactive, could properly be applied retroactively to exclude applicant from the statutory definition of an employee entitled to benefits under the workers’ compensation law.
The Board’s dissenting panel member stated that he “would find that Labor Code Section 3352(k) may not constitutionally be applied to deprive applicant of a vested right.”
In support of his contention that the Board erred in finding that he was not an employee of CSUF, applicant asserts he had a “vested right” in employee status under the law existing at the time of his injuries as established in
Van Horn
v.
Industrial Acc. Com., supra,
219 Cal.App.2d 457, and hence he could not be deprived of it retroactively by the Legislature’s 1981 amendment to section 3352.
“ ‘The retroactive operation of a civil statute is by no means unusual, and no constitutional objection exists to such operation save where a vested right, or the obligation of a contract, is impaired.’”
(Gordon H. Ball, Inc.
v.
State of California
ex rel.
Dept. Pub. Wks.
(1972) 26 Cal.App.3d 162, 168 [102 Cal.Rptr. 637], quoting from
McCann
v.
Jordan
(1933) 218 Cal. 577, 579 [24 P.2d 457].) To determine whether applicant had a vested right of action, we must look to the unique nature of the workers’ compensation law in California.
California workers’ compensation law (§ 3200 et seq.) is a statutory system enacted pursuant to constitutional grant of plenary power to the Legislature to establish a complete and exclusive system of workers’ compensation. (Cal. Const., art. XIV, § 4; § 3201; 1 Herlick, Cal. Workers’ Compensation Law Handbook (2d ed. 1978) § 1.1, pp. 12-13; 1 St. Clair, Cal. Workers’ Compensation Law and Practice (3d ed. 1985) § 1.3, p. 2; 65 Cal.Jur.3d, Work Injury Compensation, §§ 1-2, pp. 20-23; Cal. Workers’ Compensation Practice (Cont.Ed.Bar 1985) § 1.3, p. 4; see
Lowman
v.
Stafford
(1964) 226 Cal.App.2d 31, 36 [37 Cal.Rptr. 681].) It is “an expression of the police power” (§ 3201) and has been upheld as a valid exercise of the police power.
(Western Indemnity Co.
v.
Pillsbury
(1915) 170 Cal. 686 [151 P. 398];
Pacific Employers Ins. Co.
v.
Industrial Acc. Com.
(1963) 219 Cal.App.2d 634 [33 Cal.Rptr. 442]; see
Alaska Packers Assn.
v.
Indus. Acc. Com.
(1934) 1 Cal.2d 250 [34 P.2d 716]; 1 Herlick, Cal. Workers’ Compensation Law Handbook,
supra,
§ 1.1, p. 13.)
The right to workers’ compensation benefits is “wholly statutory”
(Johnson
v.
Workmen’s Comp. App. Bd.
(1970) 2 Cal.3d 964, 972 [88 Cal.Rptr. 202, 471 P.2d 1002];
Ruiz
v.
Industrial Acc. Com.
(1955) 45
Cal.2d 409, 414 [289 P.2d 229]), and is not derived from common law.
(Carrigan
v.
California State Legislature
(1959) 263 F.2d 560, 567;
Coleman
v.
Silverberg Plumbing Co.
(1968) 263 Cal.App.2d 74, 84-85 [69 Cal.Rptr. 158]; see
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Opinion
LILLIE, P. J.
Petitioner Ricky D. Graczyk (applicant) seeks review of the decision of respondent Workers’ Compensation Appeals Board (Board) that he was not an employee of respondent California State University, Fullerton (CSUF) when injured in a football game while he was a student at CSUF. We conclude that the Board correctly determined applicant was not an employee of CSUF.
Applicant allegedly sustained injuries to his head, neck and spine while playing varsity college football for CSUF on September 9, 1978, as well as in the period from August 7, 1977, through November 27, 1978.
Trial of his application was bifurcated, and the matter was submitted on the issue whether he was an employee of CSUF within the meaning of the statutory definition of employee (Lab. Code, §§ 3351, 3352).
The evidence established that applicant enrolled as a student at CSUF in the fall of 1977, following completion of high school. Football scouts from CSUF and two other universities recruited him; however, he chose CSUF because it was “close to my mom and the rest of my family.” He commenced studies and playing football immediately upon enrollment.
Representatives of the CSUF football program encouraged applicant to apply for financial aid. During his first year as a student, he received financial aid, including a college opportunity grant of $1,100 a year from the state, a supplementary grant of approximately $800 from CSUF, and a student loan. Other than the student loan, the grants he received in the first year were based upon financial need and academic achievement, and were unrelated to athletic achievement.
In applicant’s second year at CSUF, he received an athletic scholarship in the amount of $1,600 a year, payable in monthly installments. The athletic coach determined recipients of athletic scholarships based on athletic progress and value to the football team; and the scholarship funds were raised by alumni and business groups. Applicant had intended to continue playing on the football team even had he not received the athletic scholarship. The scholarship was for a full year and could not be terminated unless the recipient quit the team, dropped out of school, or failed to maintain academic standards. The scholarship was intended to meet costs of room and board, but there was no control over the manner in which the recipient spent it. Applicant understood that it was to be used for student expenses, and he so used it.
The workers’ compensation judge found that applicant was an employee of CSUF, concluding in essence that he was an employee within the statutory definition of employee as interpreted in
Van Horn
v.
Industrial Acc. Com.
(1963) 219 Cal.App.2d 457 [33 Cal.Rptr. 169]; and that although section 3352, subdivision (k), excluding student athletes as employees, is constitutional, it was enacted in 1981 and could not properly be applied retroactively to deprive applicant of his vested right to employee status under the law existing at the time of his injury.
The Board granted reconsideration and found (in a two-to-one decision) that applicant was not an employee of CSUF. The Board’s determination was based on interpretation of the “relevant statutes defining ‘employee.’ ” Thus, the Board noted the general requirement (§ 3600) of the existence of “employment” as a prerequisite to workers’ compensation coverage, as well as the general statutory definition of “employee” (§ 3351) and the statutory definition of persons excluded from the general definition of employee (§ 3352). The Board concluded that the Legislature’s 1981 amendment of
section 3352, adding subsection (k) thereto and expressly declaring the amendment retroactive, could properly be applied retroactively to exclude applicant from the statutory definition of an employee entitled to benefits under the workers’ compensation law.
The Board’s dissenting panel member stated that he “would find that Labor Code Section 3352(k) may not constitutionally be applied to deprive applicant of a vested right.”
In support of his contention that the Board erred in finding that he was not an employee of CSUF, applicant asserts he had a “vested right” in employee status under the law existing at the time of his injuries as established in
Van Horn
v.
Industrial Acc. Com., supra,
219 Cal.App.2d 457, and hence he could not be deprived of it retroactively by the Legislature’s 1981 amendment to section 3352.
“ ‘The retroactive operation of a civil statute is by no means unusual, and no constitutional objection exists to such operation save where a vested right, or the obligation of a contract, is impaired.’”
(Gordon H. Ball, Inc.
v.
State of California
ex rel.
Dept. Pub. Wks.
(1972) 26 Cal.App.3d 162, 168 [102 Cal.Rptr. 637], quoting from
McCann
v.
Jordan
(1933) 218 Cal. 577, 579 [24 P.2d 457].) To determine whether applicant had a vested right of action, we must look to the unique nature of the workers’ compensation law in California.
California workers’ compensation law (§ 3200 et seq.) is a statutory system enacted pursuant to constitutional grant of plenary power to the Legislature to establish a complete and exclusive system of workers’ compensation. (Cal. Const., art. XIV, § 4; § 3201; 1 Herlick, Cal. Workers’ Compensation Law Handbook (2d ed. 1978) § 1.1, pp. 12-13; 1 St. Clair, Cal. Workers’ Compensation Law and Practice (3d ed. 1985) § 1.3, p. 2; 65 Cal.Jur.3d, Work Injury Compensation, §§ 1-2, pp. 20-23; Cal. Workers’ Compensation Practice (Cont.Ed.Bar 1985) § 1.3, p. 4; see
Lowman
v.
Stafford
(1964) 226 Cal.App.2d 31, 36 [37 Cal.Rptr. 681].) It is “an expression of the police power” (§ 3201) and has been upheld as a valid exercise of the police power.
(Western Indemnity Co.
v.
Pillsbury
(1915) 170 Cal. 686 [151 P. 398];
Pacific Employers Ins. Co.
v.
Industrial Acc. Com.
(1963) 219 Cal.App.2d 634 [33 Cal.Rptr. 442]; see
Alaska Packers Assn.
v.
Indus. Acc. Com.
(1934) 1 Cal.2d 250 [34 P.2d 716]; 1 Herlick, Cal. Workers’ Compensation Law Handbook,
supra,
§ 1.1, p. 13.)
The right to workers’ compensation benefits is “wholly statutory”
(Johnson
v.
Workmen’s Comp. App. Bd.
(1970) 2 Cal.3d 964, 972 [88 Cal.Rptr. 202, 471 P.2d 1002];
Ruiz
v.
Industrial Acc. Com.
(1955) 45
Cal.2d 409, 414 [289 P.2d 229]), and is not derived from common law.
(Carrigan
v.
California State Legislature
(1959) 263 F.2d 560, 567;
Coleman
v.
Silverberg Plumbing Co.
(1968) 263 Cal.App.2d 74, 84-85 [69 Cal.Rptr. 158]; see
Alaska Packers Assn.
v.
Indus. Acc. Com., supra,
1 Cal.2d at p. 256;
Argonaut Mining Co.
v.
Ind. Acc. Com.
(1951) 104 Cal.App.2d 27, 29 [230 P.2d 637].)
This statutory right is exclusive of all other statutory and common law remedies, and substitutes a new system of rights and obligations for the common law rules governing liability of employers for injuries to their employees.
(Fitzpatrick
v.
Fidelity & Casualty Co.
(1936) 7 Cal.2d 230, 233 [60 P.2d 276];
Alaska Packers Assn.
v.
Indus. Acc. Com.
(1927) 200 Cal. 579, 583 [253 P. 926]; see
Tipton
v.
Atchison Ry. Co.
(1935) 298 U.S. 141, 153-154 [80 L.Ed. 1091, 1098-1099, 56 S.Ct. 715, 104 A.L.R. 831];
Hazelwerdt
v.
IndustrialIndem. Exchange
(1958) 157 Cal.App.2d 759, 762 [321 P.2d 831].) Rights, remedies and obligations rest on the status of the employer-employee relationship, rather than on contract or tort. (Cal. Workers’ Compensation Practice (Cont.Ed.Bar 1985) § 1.3, p. 4;
see Alaska Packers Assn.
v.
Indus. Acc. Com., supra,
1 Cal.2d at p. 256;
Deauville
v.
Hall
(1961) 188 Cal.App.2d 535, 539-540 [10 Cal.Rptr. 511];
Argonaut Mining Co.
v.
Ind. Acc. Com., supra,
104 Cal.App.2d at p. 29.)
In enacting the workers’ compensation law as an expression of the police power pursuant to the constitutional grant of plenary power, the Legislature has defined employee status in sections 3351 and 3352.
In essence, section 3351 defines persons included in the definition of “employee,” and section 3352 defines persons excluded therefrom.
An employee excluded from
compensation benefits under section 3352 retains his right to maintain a civil action for damages against his employer. (See 1 St. Clair, Cal. Workers’ Compensation Law and Practice,
supra,
pp. 49-50.)
In 1963, at the time of the decision in
Van Horn
v.
Industrial Acc. Com., supra,
219 Cal.App.2d 457, the section 3352 exclusionary definition of employee did not refer to athletes among the occupational groups then excluded from employee status.
Van Horn
held that a student athlete who was killed in an airplane crash while returning to California with members of the college football team and college officials was an employee within the meaning of the section 3351 definition and the section 3357 presumption that any person rendering service for another, unless expressly excluded by statute, is presumed to be an employee. The
Van Horn
opinion made no reference to the section 3352 exclusionary statute.
Apparently in a response to the
Van Horn
decision (1 Herlick, Cal. Workers’ Compensation Law Handbook,
supra,
§ 2.11, pp. 30-31), the Legislature in 1965 amended section 3352, adding former subdivision (j) (presently subd. (g), see fn. 3,
ante),
which provides that “‘Employee’ excludes . . . [a]ny person, other than a regular employee, participating in sports or athletics who receives no compensation for such participation other than the use of athletic equipment, uniforms, transportation, travel, meals, lodgings, or other expenses incidental thereto.” The 1965 amendment was “designed to clarify the position of those who sponsor athletic events or participants in various forms of athletics, [the exclusions being] predicated on the absence of the usual elements of the employment relationship.” (1 Herlick, Cal. Workers’ Compensation Law Handbook,
supra,
§ 2.11, p. 30.)
In 1977-1978, applicant sustained the alleged injuries herein.
In 1981, the Legislature, again taking cognizance of the
Van Horn
decision (see fn. 4,
ante),
further amended section 3352, attempting to more specifically clarify the exclusion of athletic participants by adding present subdivision (k), which provides that “‘Employee’ excludes . . . [a]ny student participating as an athlete in amateur sporting events sponsored by any public agency, public or private nonprofit college, university or school, who receives no remuneration for such participation other than the use of athletic equipment, uniforms, transportation, travel, meals, lodgings, scholarships, grants-in-aid, or other expenses incidental thereto.” The Legislature expressly declared the act “an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution” (Stats. 1981, ch. 21, § 13, p. 49), and stated that “The Legislature finds and declares that the provisions of law set forth in Sections 8, 9, and 10 of this act, which respectively amend Sections 3352 and 3852 of the Labor Code and add Section 3706.5 to the Labor Code, do not constitute a change in, but are declaratory of, the existing
law. These provisions shall apply to all claims filed for injuries occurring prior to the effective date of this act.”
(Stats. 1981, ch. 22, § 12, p. 49.)
Since the 1963
Van Horn
decision was based on section 3351 without any reference or determination as to section 3352, and since in 1965 the Legislature in response to the
Van Horn
decision and prior to the 1977-1978 date of applicant’s injuries added former subdivision (j) clarifying the section 3352 exclusionary definition of athletes as employees, the law relating to employee status was in flux, and applicant did not at the time of his injury have a vested right in the
Van Horn
interpretation of the employee status statutes.
Moreover, applicant’s inchoate right to benefits under the workers’ compensation law is wholly statutory and had not been reduced to final judgment before the Legislature’s 1981 addition of subdivision (k) further clarifying the employee status of athletes. Hence, applicant did not have a vested right, and his constitutional objection has no bearing on the issue. (See
Johnson
v.
Workmen’s Comp. App. Bd., supra, 2
Cal.3d at p. 972;
Ruiz
v.
Industrial Acc. Com., supra,
45 Cal.2d at p. 414.) Where a right of action does not exist at common law, but depends solely on statute, the repeal of the statute destroys the inchoate right unless it has been reduced
to final judgment, or unless the repealing statute contains a saving clause protecting the right in pending litigation. (13 Cal.Jur.3d, Constitutional Law, § 275, p. 514; see
Governing Board
v.
Mann
(1977) 18 Cal.3d 819, 829 [135 Cal.Rptr. 526, 558 P.2d 1];
Southern Service Co., Ltd.
v.
Los Angeles
(1940) 15 Cal.2d 1, 11-12 [97 P.2d 963];
Penziner
v.
West American Finance Co.
(1937) 10 Cal.2d 160, 170-171 [74 P.2d 252];
Callet v. Alioto
(1930) 210 Cal. 65, 67 [290 P. 438];
Freeman
v.
Glenn County Telephone Co.
(1920) 184 Cal. 508, 510 [194 P. 705];
Frost
v.
State of California
(1966) 247 Cal.App.2d 378, 384-385 [55 Cal.Rptr. 652].) Because it is a creature of statute, the right of action exists only so far and in favor of such person as the legislative power may declare.
(Justus
v.
Atchison
(1977) 19 Cal.3d 564, 575 [139 Cal.Rptr. 97, 565 P.2d 122].)
Thus, although the law in force at the time of the injury is determinative of a person’s right to recovery of compensation benefits, this general rule is subject to circumstances where the legislative intent is to the contrary, provided that in making substantial changes which enlarge or diminish existing rights and obligations, the Legislature’s intent to do so retroactively must be clear.
(Industrial Indemnity Co.
v.
Workers’ Comp. Appeals Bd.
(1978) 85 Cal.App.3d 1028, 1031 [149 Cal.Rptr. 880], citing
Aetna Cas. & Surety Co.
v.
Ind. Acc. Com.
(1947) 30 Cal.2d 388, 392-393 [182 P.2d 159] and
State of California
v.
Ind. Acc. Com.
(1957) 48 Cal.2d 355, 361-363 [310 P.2d 1].) Here, the Legislature clearly stated its intent that its 1981 amendment to section 3352 further clarifying the statutory definition of employee status of athletes be retroactive. (Stats. 1981, ch. 21, § 12, p. 49; see
Travelers Ins. Co.
v.
Sierra Pacific Airlines
(1983) 149 Cal.App.3d 1144, 1150 [197 Cal.Rptr. 416].)
For the foregoing reasons, we conclude that applicant did not have a vested right in employee status at the time of his injury; and hence no constitutional objection exists to retroactive operation of the 1981 statute.
We also consider respondents’ contention that irrespective of whether applicant’s right be characterized as “vested” or “unvested,” retroactivity of the Legislature’s declaration that its 1981 statutory amendment to section 3352 be retroactive is justified by police power “policy factors.” (See
Flournoy
v.
State of California
(1964) 230 Cal.App.2d 520, 534-537 [41 Cal.Rptr. 190].)
“Vested rights are not immutable; the state, exercising its police power may impair such rights when considered reasonably necessary to protect the health, safety, morals and general welfare of the people.”
(In re Marriage of Buol
(1985) 39 Cal.3d 751, 760-761 [218 Cal.Rptr. 31, 705 P.2d 354]; see
In re Marriage of Bouquet
(1976) 16 Cal.3d 583, 592 [128 Cal.Rptr. 427, 546 P.2d 1371].) Hence, the constitutional question, on principle, is not whether a vested right is impaired by a change of law, but whether such a change reasonably could be believed sufficiently necessary to the public welfare as to justify the impairment.
(Ibid.)
In determining whether a given retroactive provision contravenes due process in impairing a vested right, certain policy factors are considered, such as “‘the significance of the state interest served by the law, the importance of the retroactive application of the law to the effectuation of that interest, the extent of reliance upon the former law, the legitimacy of that reliance, the extent of actions taken on the basis of that reliance, and the extent to which the retroactive application of the new law would disrupt those actions.’”
(Inre Marriage of Buol, supra,
39Cal.3d at p. 761, quoting from
In re Marriage of Bouquet, supra,
16 Cal.3d at p. 592: see
Flournoy
v.
State of California, supra,
230 Cal.App.2d at pp. 534-537.) Where retroactive application is necessary to subserve a sufficiently important state interest, the inquiry need proceed no further.
(In re Marriage of Buol, supra,
39 Cal.3d at p. 761;
In re Marriage of Bouquet, supra,
16 Cal.3d at p. 593.)
In
Flournoy, supra,
230 Cal.App.2d 520, the court weighed these policy factors, balanced the great public interest and the importance of its retroactive application against a right which had not been grievously impaired, and concluded that the legislative declaration of retroactivity was not unconstitutional.
Here, as previously indicated, the state has a significant, if not a compelling interest in defining the employer-employee status, such status in fact being the very cornerstone of the Legislature’s enactment of a complete and exclusive workers’ compensation system in exercise of its police power pursuant to the constitutional grant of plenary power. (Cal. Const., art. XIV, § 4; Lab. Code, §§ 3201, 3351,
3352, 3600; Alaska Packers Assn.
v.
Indus. Acc. Com., supra,
1 Cal.2d at p. 256;
Deauville
v.
Hall, supra,
188 Cal.App.2d at pp. 539-540;
Argonaut Mining Co.
v.
Ind. Acc. Com., supra,
104 Cal.App.2d at p. 29; Cal. Workers’ Compensation Practice,
supra,
§ 1.3, p. 4.) Retroactive application of the 1981 amendment to section 3352 clearly subserved this compelling state interest, as evidenced by the legislative history (fn. 4,
ante)
to effectuate that interest by clarifying the statutory definition excluding athletes as employees under the 1965
amendment to section 3352. Also, the 1981 amendment legitimately relied on the former law as set forth in section 3352.
Thus, all of the policy factors are in favor of the Legislature’s declaration of retroactivity except the extent to which retroactive application would disrupt employee status rights of persons in applicant’s position. As to disruption of such rights, we have noted that persons excluded from workers’ compensation by the section 3352 exclusionary definition of employee retain their right to maintain a civil action for damages. In addition, the 1981 amendment to section 3352 was not “surprise legislation” in light of the existence of the 1965 amendment thereto excluding athletes as employees. (See
Flournoy
v.
State of California, supra,
230 Cal.App.2d at pp. 536-537.) Thus, whatever right a person in applicant’s position may have had when the Legislature further amended the athletic exclusion definition in 1981 was not “grievously impaired”
(id.,
at p. 537); and a weighing of the policy factors establishes that the legislative declaration of retroactivity (Stats. 1981, ch. 21, § 12, p. 49) is not unconstitutional.
The June 27, 1985, decision after reconsideration of respondent Workers’ Compensation Appeals Board is affirmed.
Thompson, J., and Johnson, J., concurred.
Petitioner’s application for review by the Supreme Court was denied October 23, 1986.