BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 517
                                                                  Page  1

          Date of Hearing:   April 17, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

               AB 517 (Achadjian) - As Introduced:  February 20, 2013 

          Policy Committee:                              Labor and  
          Employment   Vote:                            7-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill authorizes any county, city, special district, public  
          authority, public agency, or joint powers authority to apply for  
          a refund of civil penalties assessed, with interest, for  
          violations of occupational safety and health laws if the  
          conditions have been corrected.  Specifically, this bill: 

          1)Authorizes local governments to apply for a refund of civil  
            penalties assessed for occupational safety and health law  
            violations, if all conditions have been abated, they have  
            abated their outstanding citation, and they have not been  
            cited for serious violation within two years of the original  
            violation.   

          2)Requires, if violating entities do not apply for a refund of  
            the penalties assessed within two years and six months of the  
            original violation date, the proceeds of civil penalties  
            received by the entities specified above be available for  
            grants to local public entities to maintain effective  
            occupational injury and illness prevention programs.

          3)Prohibits the refunds of civil penalties from applying to the  
            portion of any civil or administrative penalty distributed  
            directly to an aggrieved employee, as specified.

           FISCAL EFFECT  

          Loss of GF revenue, of at least $200,000, to the Department of  
          Industrial Relations to allow specified local government  
          entities to be refunded civil penalties assessed for violations  
          of occupational safety and health laws, provided specified  








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          conditions are met.  

           COMMENTS  

           1)Purpose  .  The author states this bill addresses an inequitable  
            policy that permits only some governmental entities to obtain  
            a rebate of civil fines paid to the Division of Occupational  
            Health and Safety (Cal/OSHA).  This bill would permit local  
            governmental entities to obtain a rebate of Cal/OSHA civil  
            fines, as long as the same conditions are met by the entities  
            that are currently exempted (i.e., educational entities and  
            law enforcement).

          Department of Industrial Relations data illustrates schools have  
            been subject to $192,000 in Cal/OSHA fines between 2007 and  
            2010, and have received $122,879 in rebates during this time  
            period.  Further data from the California State Association of  
            Counties (CSAC) indicates that between 2008 and 2010, local  
            public entities have been fined $534,155, but have not been  
            eligible for a rebate of their Cal/OSHA fines, even though the  
            conditions that caused the citations have been remedied.

           2)Background  . The Cal/OSHA Program is responsible for enforcing  
            California laws and regulations pertaining to workplace safety  
            and health and for providing assistance to employers and  
            workers about workplace safety and health issues.  AB 1127  
            (Steinberg), Chapter 615 of 1999, repealed the exemption for  
            governmental entities from the imposition of Cal/OSHA civil  
            penalties, thereby treating governmental entities the same as  
            private employers for purposes of Cal/OSHA penalties.  AB 1127  
            included a provision that permits educational entities to  
            apply for a refund of Cal/OSHA penalties if the previously  
            cited condition has been abated, any other outstanding  
            citations have been abated, and there have been no citations  
            for serious violations for a period of two years.

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

           3)Previous legislation  .  

             a)   AB 2387 (Smyth), 2012, substantially similar to this  
               bill, was held on this committee's Suspense File in May  








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               2012.  

             b)   AB 1106 (Achadijian), 2011, similar to AB 2387 and this  
               measure, was held on this committee's Suspense File in May  
               2011.  


           Analysis Prepared by  :    Kimberly Rodriguez / APPR. / (916)  
          319-2081