BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 517
                                                                  Page  1

          Date of Hearing:   April 10, 2013

                     ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT
                               Roger Hern�ndez, Chair
                AB 517 (Achadjian) - As Introduced:  February 20, 2013
          
          SUBJECT  :   Occupational safety and health: local public  
          entities.

           SUMMARY  :   Authorizes local public entities such as cities,  
          counties, and special districts to apply for a refund of civil  
          penalties assessed for violations of occupational safety and  
          health laws if the conditions have been corrected.   
          Specifically,  this bill  :

          1)Authorizes a county, city, city and county, special district,  
            public authority, public agency, and a joint powers authority  
            to apply for a refund of their civil penalty assessed for  
            violating occupational safety and health laws and orders if  
            all conditions previously cited have been abated, they have  
            abated any other outstanding citation, and they have not been  
            cited for a serious violation at the same agency within two  
            years of the original violation.

          2)Provides that if a local public entity does not apply for a  
            refund of its civil penalties within two years and six months  
            of the original violation, the funds shall be expended by  
            making available grants to assist local public entities in  
            establishing and maintaining effective occupational injury and  
            illness prevention programs.   
           
          3)Provides that these refunds of civil penalties do not apply to  
            the portion of any civil or administrative penalty which is  
            distributed directly to an aggrieved employee pursuant to  
            provisions of current law authorizing private rights of  
            action. 

          4)Makes related and conforming changes. 

           EXISTING LAW  : 

          1)Provides that civil and administrative penalties assessed for  
            violating occupational safety and health laws and orders  
            against a school district, county board of education, county  
            superintendent of schools, charter school, community college  








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            district, California State University, University of  
            California, or joint powers agency performing education  
            functions shall be deposited with the "Workplace Health and  
            Safety Revolving Fund" (incorrect name cited in one instance  
            and corrected in the bill as the Workers' Compensation  
            Administration Revolving Fund).

          2)Specifies that these educational entities may apply for a  
            refund of their civil penalties if all conditions previously  
            cited have been abated, they have abated any other outstanding  
            citation, and if they have not been cited for a serious  
            violation at the same school within two years.  

          3)Provides that if an educational entity does not apply for a  
            refund of its civil penalties within two years and six months  
            of the original violation, the funds shall be expended by  
            making available grants to assist schools in establishing  
            effective occupational injury and illness prevention programs.

          4)Establishes a similar refund mechanism for workplace safety  
            penalties imposed against public police departments, fire  
            departments, and the California Department of Forestry and  
            Fire Protection

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   The California Occupational Safety and Health Act of  
          1973, was enacted by the Legislature to ensure safe and healthy  
          conditions for working people in California.  The Division of  
          Occupational Safety and Health (DOSH) was created to enforce  
          effective standards, assist and encourage safe and healthy  
          working conditions, and to provide for research, information and  
          training in the field of occupational safety and health.

          Prior to 2000, the Labor Code contained a statutory exemption  
          for governmental entities from the imposition of DOSH civil  
          penalties.  However, AB 1127 (Steinberg) of 1999, repealed that  
          exemption, thereby treating governmental entities the same as  
          private employers for purposes of DOSH penalties.

          AB 1127 also contained a limited carve-out for specified  
          educational entities and institutions.  Under that provision,  
          educational entities may apply for a refund of DOSH penalties if  
          the previously cited condition has been abated, any other  
          outstanding citations have been abated, and there have been no  








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          citations for serious violations for a period of two years.

          In 2005, AB 186 (Bogh,) Chapter # 141, authorized a similar  
          refund mechanism for police departments, fire departments, and  
          the State Department of Forestry and Fire Protection.

          This bill is nearly identical to AB 2387 (Smythe) of 2012, which  
          passed this Committee on consent.  However, AB 2837 was  
          subsequently held under submission in Assembly Appropriations  
          Committee.  This bill is also nearly identical to AB 1106  
          (Achadjian) of 2011, which also passed this committee but was  
          held in the Assembly Appropriations Committee.

          The author and supporters of this bill believe this bill would  
          provide local entities with a history of good behavior with a  
          pathway to recoup costly civil penalties and put them to good  
          use at the local level.

          The sponsors argue that this bill will address the uneven policy  
          that permits only select types of governmental entities to  
          obtain a rebate of civil fines paid to Cal/OSHA.  They argue  
          that all local governmental entities should be permitted to  
          apply for a rebate of Cal/OSHA civil fines, as long as the same  
          conditions placed on currently exempted schools, fire and police  
          entities are met.  These conditions include:  addressing and  
          abating unsafe or unhealthy work conditions and ensuring that  
          the entity has a continuing commitment to workplace safety and  
          health issues and using any rebated monies to enhance workplace  
          safety and health.








           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Association of California Healthcare Districts
          Association of California Water Agencies
          California Association of Joint Powers Authorities (co-sponsor)
          California Special Districts Association








                                                                  AB 517
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          California State Association of Counties
          CSAC Excess Insurance Authority (co-sponsor)
          League of California Cities
          Regional Council of Rural Counties

           Opposition 
           
          None on file.

           
          Analysis Prepared by  :    Ben Ebbink / L. & E. / (916) 319-2091