Amended in Assembly August 21, 2013

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

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(Coauthors: Assembly Members Bonilla, Dickinson, Roger Hernández, Skinner, and Williams)

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December 21, 2012

An act to add Section 25536.7 to the Health and Safety Code, relating to hazardous materials.

LEGISLATIVE COUNSEL’S DIGEST

SB 54, as amended, Hancock. 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 begin insert that is engaged in certain activities with regard to petroleum and end insert 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 begin delete inperson end delete begin insert in-person end insert 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.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

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

SECTION 1.  

The Legislature finds and declares all of the
following:

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(1)

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begin insert ( end insert begin insert a) end insert  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.

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(2)

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begin insert ( end insert begin insert b) end insert  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.

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(3)

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begin insert (c) end insert  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.

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(4)

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begin insert (d) end insert  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
begin insert that is engaged in activities described in Code 324110 or 325110
of the North American Industry Classification System (NAICS),
as that code read on January 1, 2014, and end insert 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 in-person 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 begin delete a public works site end delete begin insert in determining whether
existing apprenticeship programs do not have the capacity, or
have neglected or refused, to dispatch sufficient apprentices to
qualified employers who are willing to abide by the applicable
apprenticeship standards end insert .

(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.

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(7) The requirement specified in paragraph (1) for a skilled and
trained workforce, as defined in paragraph (10) of subdivision
(b), shall apply to each individual contractor’s and subcontractor’s
onsite workforce.

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(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)  begin delete “On-site end delete begin insert “Onsite end insert 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.