BILL ANALYSIS Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair 2774 (Swanson) Hearing Date: 8/12/2010 Amended: 8/10/2010 Consultant: Bob Franzoia Policy Vote: L&IR 4-1 _________________________________________________________________ ____ BILL SUMMARY: AB 2774 would establish a rebuttable presumption as to when an employer commits a serious violation and would define physical harm, as specified. This bill would also establish new procedures and standards for the investigation and the determination by the Division of Occupational Safety and Health (division) in the Department of Industrial Relations of a serious violation by an employer which causes harm or exposes an employee to the risk of harm. _________________________________________________________________ ____ Fiscal Impact (in thousands) Major Provisions 2010-11 2011-12 2012-13 Fund Revision of procedures to $300 to $600 annually; likely an overall Special* determine degree of reduction in current appeals process workplace injuries costs in future years * Occupational Safety and Health Fund _________________________________________________________________ ____ STAFF COMMENTS: This bill meets the criteria for referral to the Suspense File. Existing law authorizes the division to issue a citation when an employer causes an employee to suffer or potentially suffer, among other things, serious injury or illness or serious physical harm. This bill defines serious physical harm to mean any injury or illness, specific or cumulative, occurring in the place of employment or in connection with any employment, that results in any of the following: (1) Inpatient hospitalization for purposes other than medical observation. (2) The loss of any member of the body. (3) Any serious degree of permanent disfigurement. This bill would revise the current process to provide for a staged process that would result in a review of the alleged violation before that violation reaches the appeals process. There would be initial costs to provide the "pre appeal" process. To the extent alleged violations are disposed of earlier, there would be savings overall.