BILL ANALYSIS Ó Senate Committee on Labor and Industrial Relations Senator Ben Hueso, Chair Date of Hearing: June 11, 2014 2013-2014 Regular Session Consultant: Gideon L. Baum Fiscal:Yes Urgency: No Bill No: AB 1634 Author: Skinner As Introduced/Amended: February 10, 2014 SUBJECT Occupational safety and health: violations. KEY ISSUE Should the Legislature require that the Occupational Safety and Health Appeals Board (OSHAB) only be permitted to stay the abatement of a serious, willful or repeat violation if the Division of Occupational Safety and Health (DOSH) determines that a stay of the abatement will not adversely impact the health and safety of employees? ANALYSIS Existing law provides the California Occupational Safety and Health Act of 1973 for the purpose of assuring safe and healthful working conditions for all California working men and women by authorizing the enforcement of effective standards, assisting and encouraging employers to maintain safe and healthful working conditions, and by providing for research, information, education, training, and enforcement in the field of occupational safety and health. (Labor Code §6300) Existing law provides that the Division of Occupational Safety and Health (DOSH) may, among other things, require the performance of any act which the protection of the life and safety of the employees in places of employment reasonably demands through a special order or action order. (Labor Code §6308) Existing law provides that if, upon inspection or investigation, DOSH believes that an employer has violated any standard, rule, order, or regulation established for workplace safety, DOSH must issue a citation to the employer. Each citation shall be in writing and shall describe with particularity the nature of the violation, including a reference to the provision of the code, standard, rule, regulation, or order alleged to have been violated. In addition, the citation shall fix a reasonable time for the abatement of the alleged violation. (Labor Code §6317) Existing law provides that if an employer is served with a citation or special order, the employer may appeal to the Occupational Safety and Health Appeals Board (OSHAB) within 15 working days from the receipt of the citation or order with respect to violations alleged by the division, abatement periods, amount of proposed penalties, and the reasonableness of the changes required by the division to abate the condition. (Labor Code §§ 6600 & 6600.5) Existing law also provides that the period specified for abatement shall not commence running until the date the citation or notice is received by certified mail and the certified mail receipt is signed, or if not signed, the date the return is made to the post office. If DOSH officially and directly delivers the citation or notice to the employer, the period specified for abatement shall commence running on the date of the delivery. (Labor Code §6317) Existing law provides that, if an employer can show a good-faith effort to comply with the abatement requirement of a citation, but the abatement has not been completed because of factors beyond his reasonable control, DOSH, after an opportunity for a hearing, must issue an order affirming or modifying the abatement requirements in such citation. (Labor Code §6319.5) Existing law defines a "serious violation" as a violation where DOSH determines that there is a substantial probability that death or serious physical harm could result from a condition which exists, or from one or more practices, means, methods, operations, or processes which have been adopted or are in use Hearing Date: June 11, 2014 AB 1634 Consultant: Gideon L. Baum Page 2 Senate Committee on Labor and Industrial Relations in a place of employment. (Labor Code §6309) Existing California Regulations require that, unless otherwise specified by statute, all abatement periods and changes required by the Division are stayed upon the filing of a docketed appeal with the Appeals Board and remain stayed until withdrawal of the appeal or a final disposition of the proceeding by the Appeals Board. (California Code of Regulations Title 8, § 362) This bill would provide that any appeal of a citation that is classified and cited as a serious violation, a repeat serious violation, or a willful violation cannot stay the abatement dates unless DOSH determines that a stay of the abatement will not adversely impact the health and safety of employees. COMMENTS 1. AB 1634 and Occupational Safety and Health Appeals Board Regulations: As noted above, existing law allows employers to contest citations or special orders issues by the Division of Occupational Safety and Health (DOSH). However, under Occupational Safety and Health Appeals Board (OSHAB) regulations (8 CCR § 362), all abatement activity must be stayed while an issue is pending before OSHAB. According to several stakeholders, this can create a situation where workers continue to work under unsafe conditions while the appeal is pending. In an effort to address this concern, OSHAB promulgated regulations last year which would expedite hearings in order to avoid abatement delays (8 CCR §373). The OSHAB regulations create a three-step process once OSHAB is aware of that an alleged violation is classified by DOSH as a Serious, Repeat Serious, Willful Serious, Willful, Willful Repeat or Failure to Abate, and either abatement is on appeal, or abatement has not occurred. 1) Within 30 days of an appeal being filed, a telephonic conference to see, among other things, if an expedited Hearing Date: June 11, 2014 AB 1634 Consultant: Gideon L. Baum Page 3 Senate Committee on Labor and Industrial Relations process is appropriate; 2) Within 60 days of the telephonic conference, the parties would hold a preconference hearing to, among other things, stipulate to undisputed facts and identify witnesses and evidence to be used by both parties. 3) Within 60 days of the preconference hearing, the hearing itself would be scheduled. The regulations would also allow OSHAB or a party to bring a motion to shorten the timeframes discussed above on a showing of good cause. According to data released by OSHAB, from July 1, 2013 to April 30, 2014, OSHAB has conducted 155 expedited hearings; 54 of the cases were abated within 30 days, 22 cases were abated within 31-60 days, 26 cases were abated within 61-90 days, and 22 cases were abated within 91-120 days. In 4 cases, abatement took longer than 120 days, and 26 cases are still waiting for hearings. In short, 80% of cases were abated within 90 days under the existing process. 2. Why Didn't OSHAB End Automatic Abatement Stays in the 2013 Regulations? In the initial statement of reasons for the expedited abatement hearing process, OSHAB said the following: Alternatives to this rule were proposed by stakeholders, namely, repeal of the automatic stay provision. However, such alternative would not be less burdensome and equally effective. Rather, such would result in employers who contest the abatement ordered by the Division having no remedy to obtain a stay other than by seeking one from the superior court. This is costly for employers and the Division, which must respond.? A compelling argument was also made that the merits of ordering a stay turn on whether the violation occurred, and so any procedure addressing the merits of a stay requires a hearing on the merits of the alleged violation. For purposes of allowing discovery by the parties, reaching the merits consumes approximately 120 days of time. Hearing Date: June 11, 2014 AB 1634 Consultant: Gideon L. Baum Page 4 Senate Committee on Labor and Industrial Relations OSHAB also noted that the "great majority of employers who appeal also voluntarily abate the cited condition" and that the 4-5 month expedited abatement process was a significant reduction over the existing process. 3. Washington State Abatement Process : The author of this bill notes that legislation was signed into law in April 2011 in the State of Washington creates a similar process to AB 1634. The law (WAC 296-900-17006) requires that the employer request from WA's DOSH a stay of abatement for any violation classified as serious, willful, repeat serious, or failure to abate serious. WA's DOSH may only abate the hazard if doing so would not have a negative impact on the health and safety of impacted workers. 4. Proponent Arguments : Proponents note that if an employer appeals the citation existing law stays all hazard abatement during the appeal. The appeal is resolved through a hearing before the Occupational Safety and Health Appeals Board (OSHAB), which proponents note can occur months or years after the citation is issued and a hazard identified. Proponents argue that AB 1634 requires an employer to abate any safety violations cited as "serious," "willful," or "repeat" as required by DOSH, even during an employer's appeal. Proponents believe that AB 1634 ensures places of employment can be safe without having to wait for the completion of the often timely appeals process. 5. Opponent Arguments : Opponents argue that AB 1634 reverses the right of an employer to stay abatement while an appeal of the citation is pending. It requires an employer to specifically request a stay when filing an appeal of a serious, willful, repeat, or failure to abate citation. Opponents also note that the construction of AB 1634 is confusing and unclear. Opponents believe that the expedited appeal process has been created specifically to address this situation, and that the expedited hearing process is working and improving workplace safety, making AB 1634 Hearing Date: June 11, 2014 AB 1634 Consultant: Gideon L. Baum Page 5 Senate Committee on Labor and Industrial Relations unnecessary. 6. Prior Legislation : AB 1165 (Skinner) of 2013 was very similar to this bill. AB 1165 was vetoed by Governor Brown, who directed Cal/OSHA to consult with the author to make sure the Appeals Board process is working as intended in his veto message. SUPPORT State Building and Construction Trades Council of California (Sponsor) American Federation of State, County and Municipal Employees, AFL-CIO Asian Pacific Environmental Network California Conference Board of the Amalgamated Transit Union California Conference of Machinists California Environmental Justice Alliance California Labor Federation, AFL-CIO California Teamsters Public Affairs Council Engineers and Scientists of California International Longshore &Warehouse Union Professional & Technical Engineers, Local 21 UNITE HERE United Steelworkers, District 12 Utility Workers Union of America, Local 132 WORKSAFE OPPOSITION Air Conditioning Trade Association Associated Builders and Contractors - San Diego Chapter Associated Builders and Contractors of California Associated General Contractors of California Associated Roofing Contractors of the Bay Area Counties, Inc. Brawley Chamber of Commerce Brea Chamber of Commerce California Asian Pacific Chamber of Commerce California Association of Winegrape Growers Hearing Date: June 11, 2014 AB 1634 Consultant: Gideon L. Baum Page 6 Senate Committee on Labor and Industrial Relations California Automotive Business Coalition California Chamber of Commerce California Chapter of American Fence Association California Construction & Industrial Materials Association California Farm Bureau Federation California Fence Contractors' Association California Framing Contractors Association California Grocers Association California League of Food Processors California Manufacturers and Technology Association California Professional Association of Specialty Contractors California Restaurant Association California Retailers Association Construction Employers Association Chambers of Commerce Alliance of Ventura and Santa Barbara Desert Hot Springs Chamber of Commerce and Visitors Center El Centro Chamber of Commerce Flasher Barricade Association Fresno Chamber of Commerce Fullerton Chamber of Commerce Greater Bakersfield Chamber of Commerce Lake Tahoe South Shore Chamber of Commerce Marin Builders Association National Federation of Independent Business Oxnard Chamber of Commerce Palm Desert Area Chamber of Commerce Plumbing-Heating-Cooling Contractors Association of California Porterville Chamber of Commerce Redondo Beach Chamber of Commerce Residential Contractors Association San Diego East County Chamber of Commerce San Fernando Valley Chamber of Commerce San Gabriel Valley Legislative Coalition of Chambers San Jose Silicon Valley Chamber of Commerce Santa Clara Silicon Valley Central Chamber of Commerce & Convention-Visitors Bureau Simi Valley Chamber of Commerce Southwest California Advocacy Associates Southwest California Legislative Council The Chamber of the Santa Barbara Region Torrance Area Chamber of Commerce Turlock Chamber of Commerce Hearing Date: June 11, 2014 AB 1634 Consultant: Gideon L. Baum Page 7 Senate Committee on Labor and Industrial Relations Valley Industry and Commerce Association Visalia Chamber of Commerce Walter & Prince LLP Western Electrical Contractors Association Western Growers Association Western States Petroleum Association Western Steel Council Wine Institute Hearing Date: June 11, 2014 AB 1634 Consultant: Gideon L. Baum Page 8 Senate Committee on Labor and Industrial Relations