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

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          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

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               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

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            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

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            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

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          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

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          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