BILL NUMBER: SB 54 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY AUGUST 5, 2013
AMENDED IN SENATE FEBRUARY 13, 2013
AMENDED IN SENATE FEBRUARY 6, 2013
AMENDED IN SENATE JANUARY 29, 2013
INTRODUCED BY Senator Hancock
DECEMBER 21, 2012
An act to add Sections 31621.12 and 31676.20 to the
Government Code, relating to county employees' retirement, and
declaring the urgency thereof, to take effect immediately.
Section 25536.7 to the Health and Safety Code, relating to
hazardous materials.
LEGISLATIVE COUNSEL'S DIGEST
SB 54, as amended, Hancock. Retirement: county employees.
Hazardous materials management: stationary sources:
skilled and trained workforce.
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.
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.
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.
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.
This bill would provide that no reimbursement is required by this
act for specified reasons.
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.
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.
This bill would declare that it is to take effect immediately as
an urgency statute.
Vote: 2/3 majority . Appropriation:
no. Fiscal committee: no yes .
State-mandated local program: no yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all
of the following:
(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.
(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.
(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.
(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.
SEC. 2. Section 25536.7 is added to the
Health and Safety Code , to read:
25536.7. (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.
SEC. 3. 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.
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
52 1/4............................ 1.025
52 1/2............................ 1.050
52 3/4............................ 1.075
53................................ 1.100
53 1/4............................ 1.125
53 1/2............................ 1.150
53 3/4............................ 1.175
54................................ 1.1883
54 1/4............................ 1.2022
54 1/2............................ 1.2160
54 3/4............................ 1.2299
55 ............................... 1.2436
55 1/4............................ 1.2585
55 1/2............................ 1.2733
55 3/4............................ 1.2882
56................................ 1.3031
56 1/4............................ 1.3192
56 1/2............................ 1.3353
56 3/4............................ 1.3514
57................................ 1.3675
57 1/4............................ 1.3850
57 1/2............................ 1.4025
57 3/4............................ 1.4200
58................................ 1.4375
58 1/4............................ 1.4565
58 1/2............................ 1.4757
58 3/4............................ 1.4947
59................................ 1.5138
59 1/4............................ 1.5346
59 1/2............................ 1.5554
59 3/4............................ 1.5763
60................................ 1.5972
60 1/4............................ 1.6126
60 1/2............................ 1.6282
60 3/4............................ 1.6438
61................................ 1.6593
61 1/4............................ 1.6801
61 1/2............................ 1.7010
61 3/4............................ 1.7219
62................................ 1.7428
62 1/4............................ 1.7649
62 1/2............................ 1.7871
62 3/4............................ 1.8092
63................................ 1.8314
63 1/4............................ 1.8549
63 1/2............................ 1.8785
63 3/4............................ 1.9021
64................................ 1.9257
64 1/4............................ 1.9510
64 1/2............................ 1.9763
64 3/4............................ 2.0015
65................................ 2.0268
65 1/4............................ 2.0268
65 1/2............................ 2.0268
65 3/4............................ 2.0268
66 ............................... 2.0268
66 1/4............................ 2.0268
66 1/2............................ 2.0268
66 3/4............................ 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.