Amended in Assembly August 5, 2013

Amended in Senate February 13, 2013

Amended in Senate February 6, 2013

Amended in Senate January 29, 2013

Senate Bill No. 54

Introduced by Senator Hancock

December 21, 2012

An act to add begin delete Sections 31621.12 and 31676.20 to the Government Code, relating to county employees’ retirement, and declaring the urgency thereof, to take effect immediately. end delete begin insert Section 25536.7 to the Health and Safety Code, relating to hazardous materials. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 54, as amended, Hancock. begin delete Retirement: county employees. end delete begin insert Hazardous materials management: stationary sources: skilled and trained workforce. end insert

begin insert

Existing law establishes an accidental release prevention program implemented by the Office of Emergency Services and the appropriate administering agency, as defined, in each city or county. Under existing law, stationary sources subject to the accidental release prevention program for the state are required to prepare a risk management plan (RMP) when required under certain federal regulations or if the administering agency determines there is a significant likelihood of a regulated substances accident risk. Under existing law, the RMP is required to be submitted to the California Environmental Protection Agency and to the administering agency. Existing law imposes criminal penalties upon a stationary source that knowingly violates requirements of the accidental release prevention program.

end insert begin insert

This bill would require an owner or operator of a stationary source with one or more covered processes that is required to prepare and submit an RMP, when contracting for the performance of construction, alteration, demolition, installation, repair, or maintenance work at the stationary source, to require that its contractors and any subcontractors use a skilled and trained workforce to perform all onsite work within an apprenticeable occupation in the building and construction trades, including skilled journeypersons paid at least a rate equivalent to the applicable prevailing hourly wage rate. The bill would not apply to oil and gas extraction operations. Because the bill would make a knowing violation of these requirements a crime, and would otherwise impose new duties upon local agencies administering the program, the bill would impose a state-mandated local program.

end insert begin insert

This bill would require the Chief of the Division of Apprenticeship Standards of the Department of Industrial Relations to approve a curriculum of inperson classroom and laboratory instruction for approved advanced safety training for workers at high hazard facilities by January 1, 2016. The bill would define terms for purposes of the bill.

end insert begin insert

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

end insert begin insert

This bill would provide that no reimbursement is required by this act for specified reasons.

end insert begin delete

The California Public Employees’ Pension Reform Act of 2013 requires each county retirement system created pursuant to the County Employees Retirement Law of 1937 to use a retirement formula commonly known as 2.5% at 67 years of age for nonsafety members first hired on or after January 1, 2013, except that a lower retirement formula may be used as specified. The County Employees Retirement Law of 1937 authorizes the Alameda County Board of Supervisors to provide service retirement allowances for general members based on one of 2 formulas commonly known as the 2% at 57 years of age formula or the 1.64% at 57 years of age formula.

end delete begin delete

This bill would authorize the Alameda County Board of Supervisors to adopt a resolution that would provide service retirement allowances based on a formula commonly known as the 2% at 65 years of age formula for general members hired after approval of the resolution, as specified.

end delete begin delete

This bill would declare that it is to take effect immediately as an urgency statute.

end delete

Vote:  begin delete ²⁄₃ end delete begin insert majority end insert . Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program:  begin delete no end delete begin insert yes end insert .

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert The Legislature finds and declares all of the
following: end insert

begin insert

(1) The use of unskilled and untrained workers at chemical
manufacturing and processing facilities that generate, store, treat,
handle, refine, process, and transport hazardous materials is a
risk to public health and safety, and the risk to public health and
safety is particularly high when workers are employed by outside
contractors because they generally will be less familiar with the
operations of the facility and its emergency plans and the owner
or operator of the facility will have less incentive to invest in their
training.

end insert begin insert

(2) Requiring that workers employed by outside contractors at
these facilities be paid at least at a rate equivalent to the prevailing
journeyperson wage for the occupation, or be registered in an
approved apprenticeship program, is necessary to provide an
economic incentive for employers to use only the most skilled
workers to perform work that poses a risk to public health and
safety. The wage scale is also necessary to provide an economic
incentive for the workers to obtain the mandatory advanced safety
training required by Section 2 of this act.

end insert begin insert

(3) Requiring that apprentices be registered in programs
approved by the Chief of the Division of Apprenticeship Standards
is necessary to ensure that these workers are receiving the proper
training and on-the-job supervision and that the programs are
subject to proper oversight.

end insert begin insert

(4) The requirement that at least 60 percent of the
journeypersons working for a contractor be graduates of an
approved apprenticeship program is necessary to ensure that the
majority of the journeypersons will have had appropriate
classroom and laboratory instruction for their occupations. A
phase-in for this requirement will avoid disruption of the industry.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 25536.7 is added to the end insert begin insert Health and Safety
Code end insert begin insert , to read: end insert

begin insert

begin insert 25536.7. end insert   

(a) (1) An owner or operator of a stationary source
with one or more covered processes that is required to prepare
and submit an RMP pursuant to this article, when contracting for
the performance of construction, alteration, demolition,
installation, repair, or maintenance work at the stationary source,
shall require that its contractors and any subcontractors use a
skilled and trained workforce to perform all onsite work within
an apprenticeable occupation in the building and construction
trades. This section shall not apply to oil and gas extraction
operations.

(2) The Chief of the Division of Apprenticeship Standards of
the Department of Industrial Relations may approve a curriculum
of inperson classroom and laboratory instruction for approved
advanced safety training for workers at high hazard facilities. That
safety training may be provided by an apprenticeship program
approved by the chief or by instruction provided by the Chancellor
of the California Community Colleges. The chief shall approve a
curriculum in accordance with this paragraph by January 1, 2016,
and shall periodically revise the curriculum to reflect current best
practices. Upon receipt of certification from the apprenticeship
program or community college, the chief shall issue a certificate
to a worker who completes the approved curriculum.

(3) For purposes of paragraph (2) of subdivision (b) of Section
3075 of the Labor Code, a stationary source covered by this section
shall be considered a public works site.

(4) This section shall not apply to contracts awarded before
January 1, 2014, unless the contract is extended or renewed after
that date.

(5) This section shall not apply to the employees of the owner
or operator of the stationary source or prevent the owner or
operator of the stationary source from using its own employees to
perform any work that has not been assigned to contractors while
the employees of the contractor are present and working.

(6) The criteria of subparagraph (A) of paragraph (9) of
subdivision (b), subparagraph (C) of paragraph (9) of subdivision
(b), and subparagraph (B) of paragraph (10) of subdivision (b)
shall not apply to either of the following:

(A) To the extent that the contractor has requested qualified
workers from the local hiring halls that dispatch workers in the
apprenticeable occupation and, due to workforce shortages, the
contractor is unable to obtain sufficient qualified workers within
48 hours of the request, Saturdays, Sundays, and holidays excepted.
This section shall not prevent contractors from obtaining workers
from any source.

(B) To the extent that compliance is impracticable because an
emergency requires immediate action to prevent harm to public
health or safety or to the environment, but the criteria shall apply
as soon as the emergency is over or it becomes practicable for
contractors to obtain a qualified workforce.

(b) As used in this section:

(1) “Apprenticeable occupation” means an occupation for
which the chief has approved an apprenticeship program pursuant
to Section 3075 of the Labor Code.

(2) “Approved advanced safety training for workers at high
hazard facilities” means a curriculum approved by the chief
pursuant to paragraph (2) of subdivision (a).

(3) “Building and construction trades” has the same meaning
as in Section 3075.5 of the Labor Code.

(4) “Chief” means the Chief of the Division of the
Apprenticeship Standards of the Department of Industrial
Relations.

(5) “Construction,” “alteration,” “demolition,” “installation,”
“repair,” and “maintenance” have the same meanings as in
Sections 1720 and 1771 of the Labor Code.

(6) “On-site work” shall not include catalyst handling and
loading, chemical cleaning, or inspection and testing that was not
within the scope of a prevailing wage determination issued by the
Director of Industrial Relations as of January 1, 2013.

(7) “Prevailing hourly wage rate” means the general prevailing
rate of per diem wages, as determined by the Director of Industrial
Relations pursuant to Sections 1773 and 1773.9 of the Labor Code,
but does not include shift differentials, travel and subsistence, or
holiday pay. Notwithstanding subdivision (c) of Section 1773.1 of
the Labor Code, the requirement that employer payments not
reduce the obligation to pay the hourly straight time or overtime
wages found to be prevailing shall not apply if otherwise provided
in a bona fide collective bargaining agreement covering the
worker.

(8) “Registered apprentice” means an apprentice registered in
an apprenticeship program approved by the chief pursuant to
Section 3075 of the Labor Code who is performing work covered
by the standards of that apprenticeship program and receiving the
supervision required by the standards of that apprenticeship
program.

(9) “Skilled journeyperson” means a worker who meets all of
the following criteria:

(A) The worker either graduated from an apprenticeship
program for the applicable occupation that was approved by the
chief, or has at least as many hours of on-the-job experience in
the applicable occupation that would be required to graduate from
an apprenticeship program for the applicable occupation that is
approved by the chief.

(B) The worker is being paid at least a rate equivalent to the
prevailing hourly wage rate for a journeyperson in the applicable
occupation and geographic area.

(C) The worker has completed within the prior two calendar
years at least 20 hours of approved advanced safety training for
workers at high hazard facilities. This requirement applies only
to work performed on or after January 1, 2018.

(10) “Skilled and trained workforce” means a workforce that
meets both of the following criteria:

(A) All the workers are either registered apprentices or skilled
journeypersons.

(B) (i) As of January 1, 2014, at least 30 percent of the skilled
journeypersons are graduates of an apprenticeship program for
the applicable occupation that was either approved by the chief
pursuant to Section 3075 of the Labor Code or located outside
California and approved for federal purposes pursuant to the
apprenticeship regulations adopted by the federal Secretary of
Labor.

(ii) As of January 1, 2015, at least 45 percent of the skilled
journeypersons are graduates of an apprenticeship program for
the applicable occupation that was either approved by the chief
pursuant to Section 3075 of the Labor Code or located outside
California and approved for federal purposes pursuant to the
apprenticeship regulations adopted by the federal Secretary of
Labor.

(iii) As of January 1, 2016, at least 60 percent of the skilled
journeypersons are graduates of an apprenticeship program for
the applicable occupation that was either approved by the chief
pursuant to Section 3075 of the Labor Code or located outside
California and approved for federal purposes pursuant to the
apprenticeship regulations adopted by the federal Secretary of
Labor.

end insert

begin insert

begin insert SEC. 3. end insert   

end insert begin insert

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
a local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act or because costs that may be
incurred by a local agency or school district will be incurred
because this act creates a new crime or infraction, eliminates a
crime or infraction, or changes the penalty for a crime or
infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIII B of the California Constitution.

end insert

begin delete

SECTION 1.  

Section 31621.12 is added to the Government
Code, to read:

31621.12.  

In counties adopting Section 31676.20, the normal
rates of contribution for members covered by Section 31676.20
shall be as provided for in Section 7522.30. Employees shall pay
at least 50 percent of normal costs and the employer shall not pay
any part of the required employee contribution.

SEC. 2.  

Section 31676.20 is added to the Government Code,
to read:

31676.20.  

(a) (1) Notwithstanding any other provision of this
chapter or of subdivision (b) of Section 7522.02 and Section
7522.20, this section may be made applicable in a county of the
fourth class, as defined in Sections 28020 and 28025, as amended
by Chapter 1204 of the Statutes of 1971, on the first day of the
month after the board of supervisors of the county adopts a
resolution by majority vote, as part of or subsequent to the adoption
of any negotiated memorandum of understanding with a bargaining
unit that represents general member employees and that was
adopted on or before December 31, 2012, to employees of that
bargaining unit hired after approval of the resolution or to
unrepresented employees hired after approval of the resolution.

(2) Notwithstanding any other provisions of this chapter or of
subdivision (b) of Section 7522.02 and Section 7522.20, the defined
benefit plan shall provide a pension at retirement for service equal
to the percentage of the member’s final compensation set forth
opposite the member’s age at retirement, taken to the preceding
quarter year, in the following table, multiplied by the number of
years of service in the system as a nonsafety member. A member
may retire for service under this section after five years of service
and upon reaching 52 years of age.

 

Age of Retirement	Fraction
52	1.00
521⁄4	1.025
521⁄2	1.050
523⁄4	1.075
53	1.100
531⁄4	1.125
531⁄2	1.150
533⁄4	1.175
54	1.1883
541⁄4	1.2022
541⁄2	1.2160
543⁄4	1.2299
55	1.2436
551⁄4	1.2585
551⁄2	1.2733
553⁄4	1.2882
56	1.3031
561⁄4	1.3192
561⁄2	1.3353
563⁄4	1.3514
57	1.3675
571⁄4	1.3850
571⁄2	1.4025
573⁄4	1.4200
58	1.4375
581⁄4	1.4565
581⁄2	1.4757
583⁄4	1.4947
59	1.5138
591⁄4	1.5346
591⁄2	1.5554
593⁄4	1.5763
60	1.5972
601⁄4	1.6126
601⁄2	1.6282
603⁄4	1.6438
61	1.6593
611⁄4	1.6801
611⁄2	1.7010
613⁄4	1.7219
62	1.7428
621⁄4	1.7649
621⁄2	1.7871
623⁄4	1.8092
63	1.8314
631⁄4	1.8549
631⁄2	1.8785
633⁄4	1.9021
64	1.9257
641⁄4	1.9510
641⁄2	1.9763
643⁄4	2.0015
65	2.0268
651⁄4	2.0268
651⁄2	2.0268
653⁄4	2.0268
66	2.0268
661⁄4	2.0268
661⁄2	2.0268
663⁄4	2.0268
67 and over	2.0268

 

(b) Except as provided for in subdivision (a), any requirement
of the California Public Employees’ Pension Reform Act of 2013
(Article 4 (commencing with Section 7522) of Chapter 21 of
Division 7 of Title 1) applicable to employers or members
participating in county and district retirement systems created
under this chapter shall also apply to employers and members
operating under this section.

(c) Subject to the requirements of Section 7522.30, a resolution
adopted pursuant to this section or previously adopted resolutions
of the board may require members to pay all or part of the
contributions by a member or employer, or both, that would have
been required if the section or sections specified within this chapter
were or have been adopted by resolution. The payment by a
member shall become part of the accumulated contributions of the
member.

(d) Notwithstanding any other provision of law, the effective
date of a resolution described in subdivision (a) may be different
than the date of the resolution.

(e) This section shall not apply to safety members.

SEC. 3.  

This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:

In order for the benefits of a memorandum of understanding that
was negotiated between a county of the fourth class and one of its
bargaining units to be enacted and applied equitably at the earliest
possible time, it is necessary that this act take effect immediately.

end delete