BILL NUMBER: AB 517	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Achadjian

                        FEBRUARY 20, 2013

   An act to amend Sections 62.5 and 6434 of the Labor Code, relating
to occupational safety and health.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 517, as introduced, Achadjian. Occupational safety and health:
local public entities: penalty moneys: grants.
   Existing law requires the Commission on Health and Safety and
Workers' Compensation in the Department of Industrial Relations to
review and approve applications from employers and employee
organizations, as well as applications submitted jointly by an
employer organization and an employee organization, for grants to
assist in establishing effective occupational injury and illness
prevention programs, as specified.
   Existing law requires certain civil and administrative penalties
relating to workers' compensation to be deposited in the Workers'
Compensation Administration Revolving Fund. Existing law authorizes
the department to expend these funds upon approval by the commission,
and upon appropriation from the fund by the Legislature, to fund the
above-described grants and other activities and expenses of the
commission.
   Existing law requires any civil or administrative penalty assessed
pursuant to the California Occupational Safety and Health Act of
1973 against a school district, county board of education, county
superintendent of schools, charter school, community college
district, California State University, University of California, or
joint powers agency performing education functions to be deposited
with the Workplace Health and Safety Revolving Fund. Existing law
authorizes these entities to apply for a refund of the civil
penalties assessed against them if specified conditions are met.
Existing law requires moneys in the fund that are not refunded to be
expended as provided for in the above-described grant provisions to
assist schools in establishing effective occupational injury and
illness prevention programs.
   This bill would, instead, require any civil or administrative
penalty assessed pursuant to the California Occupational Safety and
Health Act of 1973 against a school district, county board of
education, county superintendent of schools, charter school,
community college district, California State University, University
of California, or joint powers agency performing education functions
to be deposited with the Workers' Compensation Administration
Revolving Fund.
   In addition, the bill would require any civil or administrative
penalty assessed pursuant to the California Occupational Safety and
Health Act of 1973 against a city, county, city and county, special
district, public authority, public agency, joint powers agency or
authority to be deposited with the Workers' Compensation
Administration Revolving Fund. The bill would authorize these local
public entities to apply for a refund of the civil penalties assessed
against them if specified conditions are met. The bill would require
moneys in the fund that are not refunded to be expended as provided
for in the above-described grant provisions to assist these local
public entities, regardless of whether any penalty has been assessed
against them, in establishing and maintaining effective occupational
injury and illness prevention programs.
   This bill would add funding the above-described grants to the list
of purposes for which moneys in the Workers' Compensation
Administration Revolving Fund may be expended. This bill would make
other nonsubstantive changes to these provisions.
   Existing law, the Labor Code Private Attorneys General Act of
2004, allows aggrieved employees to bring civil actions to recover
penalties for violations of the Labor Code if the Labor and Workforce
Development Agency or its departments, divisions, commissions,
boards, agencies, or employees do not do so. The penalties collected
in these actions are distributed 75% to the agency to be continuously
appropriated for purposes of enforcement and education and 25% to
the aggrieved employee, except as specified.
   This bill would provide that the above provisions pertaining to
civil or administrative penalties assessed pursuant to the California
Occupational Safety and Health Act of 1973 shall not apply to that
portion of any civil or administrative penalty that is distributed
directly to an aggrieved employee pursuant to the above-described
provisions.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 62.5 of the Labor Code is amended to read:
   62.5.  (a) (1) The Workers' Compensation Administration Revolving
Fund is hereby created as a special account in the State Treasury.
 Money   Moneys  in the fund  may
  shall  be expended by the department, upon
appropriation by the Legislature, for all of the following purposes,
and may not be used or borrowed for any other purpose:
   (A) For the administration of the workers' compensation program
set forth in this division and Division 4 (commencing with Section
3200), other than the activities financed pursuant to 
paragraph (2) of subdivision (a) of  Section 3702.5.

   (B) For the Return-to-Work Program set forth in Section 139.48.
 
   (C) 
    (B)  For the enforcement of the insurance coverage
program established and maintained by the Labor Commissioner pursuant
to Section 90.3. 
   (C) For the purposes described in Sections 78 and 6434. 
   (2) The fund shall consist of surcharges made pursuant to
paragraph (1) of subdivision (f).
   (b) (1) The Uninsured Employers Benefits Trust Fund is hereby
created as a special trust fund account in the State Treasury, of
which the director is trustee, and its sources of funds are as
provided in paragraph (1) of subdivision (f). Notwithstanding Section
13340 of the Government Code, the fund is continuously appropriated
for the payment of nonadministrative expenses of the workers'
compensation program for workers injured while employed by uninsured
employers in accordance with Article 2 (commencing with Section 3710)
of Chapter 4 of Part 1 of Division 4, and shall not be used for any
other purpose. All moneys collected shall be retained in the trust
fund until paid as benefits to workers injured while employed by
uninsured employers. Nonadministrative expenses include audits and
reports of services prepared pursuant to subdivision (b) of Section
3716.1. The surcharge amount for this fund shall be stated
separately.
   (2) Notwithstanding any other provision of law, all references to
the Uninsured Employers Fund shall mean the Uninsured Employers
Benefits Trust Fund.
   (3) Notwithstanding paragraph (1), in the event that budgetary
restrictions or impasse prevent the timely payment of administrative
expenses from the Workers' Compensation Administration Revolving
Fund, those expenses shall be advanced from the Uninsured Employers
Benefits Trust Fund. Expense advances made pursuant to this paragraph
shall be reimbursed in full to the Uninsured Employers Benefits
Trust Fund upon enactment of the annual Budget Act.
   (4) Any moneys from penalties collected pursuant to Section 3722
as a result of the insurance coverage program established under
Section 90.3 shall be deposited in the State Treasury to the credit
of the Workers' Compensation Administration Revolving Fund created
under this section, to cover expenses incurred by the director under
the insurance coverage program. The amount of any penalties in excess
of payment of administrative expenses incurred by the director for
the insurance coverage program established under Section 90.3 shall
be deposited in the State Treasury to the credit of the Uninsured
Employers Benefits Trust Fund for nonadministrative expenses, as
prescribed in paragraph (1), and notwithstanding paragraph (1), shall
only be available upon appropriation by the Legislature.
   (c) (1) The Subsequent Injuries Benefits Trust Fund is hereby
created as a special trust fund account in the State Treasury, of
which the director is trustee, and its sources of funds are as
provided in paragraph (1) of subdivision (f). Notwithstanding Section
13340 of the Government Code, the fund is continuously appropriated
for the nonadministrative expenses of the workers' compensation
program for workers who have suffered serious injury and who are
suffering from previous and serious permanent disabilities or
physical impairments, in accordance with Article 5 (commencing with
Section 4751) of Chapter 2 of Part 2 of Division 4, and Section 4 of
Article XIV of the California Constitution, and shall not be used for
any other purpose. All moneys collected shall be retained in the
trust fund until paid as benefits to workers who have suffered
serious injury and who are suffering from previous and serious
permanent disabilities or physical impairments. Nonadministrative
expenses include audits and reports of services pursuant to
subdivision (c) of Section 4755. The surcharge amount for this fund
shall be stated separately.
   (2) Notwithstanding any other law, all references to the
Subsequent Injuries Fund shall mean the Subsequent Injuries Benefits
Trust Fund.
   (3) Notwithstanding paragraph (1), in the event that budgetary
restrictions or impasse prevent the timely payment of administrative
expenses from the Workers' Compensation Administration Revolving
Fund, those expenses shall be advanced from the Subsequent Injuries
Benefits Trust Fund. Expense advances made pursuant to this paragraph
shall be reimbursed in full to the Subsequent Injuries Benefits
Trust Fund upon enactment of the annual Budget Act.
   (d) The Occupational Safety and Health Fund is hereby created as a
special account in the State Treasury. Moneys in the account may be
expended by the department, upon appropriation by the Legislature,
for support of the Division of Occupational Safety and Health, the
Occupational Safety and Health Standards Board, and the Occupational
Safety and Health Appeals Board, and the activities these entities
perform as set forth in this division, and Division 5 (commencing
with Section 6300).
   (e) The Labor Enforcement and Compliance Fund is hereby created as
a special account in the State Treasury. Moneys in the fund may be
expended by the department, upon appropriation by the Legislature,
for the support of the activities that the Division of Labor
Standards Enforcement performs pursuant to this division and Division
2 (commencing with Section 200), Division 3 (commencing with Section
2700), and Division 4 (commencing with Section 3200). The fund shall
consist of surcharges imposed pursuant to paragraph (3) of
subdivision (f).
   (f) (1) Separate surcharges shall be levied by the director upon
all employers, as defined in Section 3300, for purposes of deposit in
the Workers' Compensation Administration Revolving Fund, the
Uninsured Employers Benefits Trust Fund, the Subsequent Injuries
Benefits Trust Fund, and the Occupational Safety and Health Fund. The
total amount of the surcharges shall be allocated between
self-insured employers and insured employers in proportion to payroll
respectively paid in the most recent year for which payroll
information is available. The director shall adopt reasonable
regulations governing the manner of collection of the surcharges. The
regulations shall require the surcharges to be paid by self-insurers
to be expressed as a percentage of indemnity paid during the most
recent year for which information is available, and the surcharges to
be paid by insured employers to be expressed as a percentage of
premium. In no event shall the surcharges paid by insured employers
be considered a premium for computation of a gross premium tax or
agents' commission. In no event shall the total amount of the
surcharges paid by insured and self-insured employers exceed the
amounts reasonably necessary to carry out the purposes of this
section.
   (2) The surcharge levied by the director for the Occupational
Safety and Health Fund, pursuant to paragraph (1), shall not generate
revenues in excess of fifty-two million dollars ($52,000,000) on and
after the 2009-10 fiscal year, adjusted for each fiscal year as
appropriate to reconcile any over/under assessments from previous
fiscal years pursuant to Sections 15606 and 15609 of Title 8 of the
California Code of Regulations, and may increase by not more than the
state-local government deflator each year thereafter through July 1,
2013, and, as appropriate, to reconcile any over/under assessments
from previous fiscal years. For the 2013-14 fiscal year, the
surcharge level shall return to the level in place on June 30, 2009,
adjusted for inflation based on the state-local government deflator.
   (3) A separate surcharge shall be levied by the director upon all
employers, as defined in Section 3300, for purposes of deposit in the
Labor Enforcement and Compliance Fund. The total amount of the
surcharges shall be allocated between employers in proportion to
payroll respectively paid in the most recent year for which payroll
information is available. The director shall adopt reasonable
regulations governing the manner of collection of the surcharges. In
no event shall the total amount of the surcharges paid by employers
exceed the amounts reasonably necessary to carry out the purposes of
this section.
   (4) The surcharge levied by the director for the Labor Enforcement
and Compliance Fund shall not exceed thirty-seven million dollars
($37,000,000) in the 2009-10 fiscal year, adjusted as appropriate to
reconcile any over/under assessments from previous fiscal years, and
shall not be adjusted each year thereafter by more than the
state-local government deflator, and, as appropriate, to reconcile
any over/under assessments from previous fiscal years pursuant to
Sections 15606 and 15609 of Title 8 of the California Code of
Regulations.
   (5) The regulations adopted pursuant to paragraph (1) to (4),
inclusive, shall be exempt from the rulemaking provisions of the
Administrative Procedure Act (Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code).
   (g) On and after July 1, 2013, subdivision (e) and paragraphs (2)
to (4), inclusive, of subdivision (f) are inoperative, unless a later
enacted statute, that is enacted before July 1, 2013, deletes or
extends that date.
  SEC. 2.  Section 6434 of the Labor Code is amended to read:
   6434.  (a) Any civil or administrative penalty assessed pursuant
to this chapter against a school district, county board of education,
county superintendent of schools, charter school, community college
district, California State University, University of California, or
joint powers agency performing education functions shall be deposited
 with   in  the  Workplace Health
and Safety   Workers' Compensation Administration 
Revolving Fund established pursuant to Section  78. 
 62.5. 
   (b) Any school district, county board of education, county
superintendent of schools, charter school, community college
district, California State University, University of California, or
joint powers agency performing education functions may apply for a
refund of  their   its  civil penalty, with
interest, if all conditions previously cited have been abated,
 they have   it has  abated any other
outstanding citation, and if  they have   it has
 not been cited by the division for a serious violation at the
same school within two years of the date of the original violation.
Funds not applied for within two years and six months of the time of
the original violation shall be expended as provided for in Section
78 to assist schools in establishing effective occupational injury
and illness prevention programs. 
   (c) Any civil or administrative penalty assessed pursuant to this
chapter against a city, county, city and county, special district,
public authority, public agency, or joint powers agency or authority
shall be deposited in the Workers' Compensation Administration
Revolving Fund established pursuant to Section 62.5.  
   (d) Any entity listed in subdivision (c) may apply for a refund of
its civil penalty, with interest, if all conditions previously cited
have been abated, it has abated any other outstanding citation, and
if it has not been cited by the division for a serious violation
within two years of the date of the original violation. Funds not
applied for within two years and six months of the time of the
original violation shall be expended as provided for in Section 78 to
assist the entities listed in subdivision (c), regardless of whether
any penalty has been assessed against them, in establishing and
maintaining effective occupational injury and illness prevention
programs.  
   (e) This section does not apply to the portion of any civil or
administrative penalty that is distributed directly to an aggrieved
employee pursuant to Section 2699.