BILL ANALYSIS Ó
SB 54
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SENATE THIRD READING
SB 54 (Hancock)
As Amended September 3, 2013
Majority vote
SENATE VOTE :Vote not relevant
LABOR & EMPLOYMENT 5-2 APPROPRIATIONS 11-5
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|Ayes:|Roger Hernández, Alejo, |Ayes:|Gatto, Bocanegra, |
| |Chau, Gomez, Holden | |Bradford, |
| | | |Ian Calderon, Campos, |
| | | |Eggman, Gomez, Hall, |
| | | |Holden, Pan, Quirk |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Morrell, Gorell |Nays:|Harkey, Bigelow, |
| | | |Donnelly, Linder, Wagner |
| | | | |
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SUMMARY : Enacts specified provisions related to construction
and related work performed by contract at specified stationary
sources. Specifically, this bill :
1)Requires an owner or operator of specified stationary sources
(petroleum refineries and petrochemical manufacturing
facilities), when contracting for the performance of
construction, maintenance and related work, 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.
2)Defines a "skilled and trained workforce" to mean a workforce
that meets the following criteria:
a) All the workers are either registered apprentices or
"skilled journeypersons."
b) As of January 1, 2014, at least 30% of the "skilled
journeypersons" are graduates of approved apprenticeship
programs, as specified.
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c) As of January 1, 2015, at least 45%of the "skilled
journeypersons" are graduates of approved apprenticeship
programs, as specified.
d) As of January 1, 2016, at least 60% of the "skilled
journeypersons" are graduates of approved apprenticeship
programs, as specified.
3)Defines a "skilled journeyperson" as a worker who meets all of
the following criteria:
a) The worker either graduated from an approved
apprenticeship program or has at least as many hours of
on-the-job experience that would be required to graduate
from an approved apprenticeship program.
b) The worker is being paid at least a rate equivalent to
the prevailing hourly wage rate, as defined.
c) For work performed on or after January 1, 2018, 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.
4)Provides that an approved apprenticeship program may enroll,
with advanced standing, applicants with relevant prior work
experience, as specified.
5)Specifies that these requirements shall apply to each
individual contractor's and subcontractor's onsite workforce.
6)Provides that for purposes of existing law related to approval
of new apprenticeship programs, a covered stationary source
shall be considered in determining whether existing
apprenticeship programs do not have the capacity, or have
neglected or refused, to dispatch sufficient apprentices.
7)Provides that this bill does not make work subject to its
requirements "public work" for specified purposes of the Labor
Code.
8)Provides that the requirements of this bill shall not apply to
oil and gas extraction operations.
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9)Provides that the requirements of this bill shall not apply to
contracts awarded before January 1, 2014, unless the contract
is extended or renewed after this date.
10)Provides that the requirements of this bill shall not apply
to the employees or the owner or operator of the stationary
source or prevent the owner or operator 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.
11)Provides that specified provisions of the bill related to the
qualifications for skilled journeypersons shall not apply to
either of the following:
a) To the extent that the contractor has requested
qualified workers from local hiring halls but is unable to
obtain sufficient workers within 48 hours of the request.
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.
12)Requires the Chief of the Division of Apprenticeship
Standards to approve a curriculum of in-person classroom and
laboratory instruction for approved advanced safety training
for workers at high hazard facilities by January 1, 2016.
13)Makes related and conforming changes.
14)Makes related legislative findings and declarations.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, this bill will result in annual, special fund costs,
between $900,000 and $1.6 million, to the Department of
Industrial Relations (DIR) to adequately enforce this measure.
These costs are associated with additional training and staff.
COMMENTS : According to the author, under existing law there are
no requirements that employees of outside contractors working at
chemical manufacturing and processing facilities, including
refineries, have a minimum level of skills training, including
safety training. This poses a risk to public health and safety
as unskilled and untrained workers may be unfamiliar with the
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construction work associated with such facilities, general
facility operations and emergency plans.
Therefore, the author states that ensuring that outside
contractors that work at chemical refineries have properly
trained workers through approved apprenticeship programs will
reduce public health and safety risks. The author states that
outside contractors at these facilities should be using a
qualified workforce, not unskilled, low-wage workers hired off
the street or brought in from other states to save money.
The bill defines a skilled and trained workforce to mean a
workforce consisting of qualified journeypersons and apprentices
registered in state-approved apprenticeship programs. Qualified
journeypersons must be graduates of an apprenticeship program or
have at least the same amount of experience as would be required
to graduate from an apprenticeship program. They also must have
completed at least 20 hours of advanced safety training in a
curriculum approved by the Chief of the Division of
Apprenticeship Standards. Contractors and subcontractors must
pay their journeypersons at least the prevailing wage for the
craft to ensure that there is no economic incentive to use less
qualified workers for these high-hazard jobs. Beginning on
January 1, 2014, at least 30% of a contractor's journeyperson
workforce must consist of graduates of a state-approved
apprenticeship program. That figure rises to 45% on January 1,
2015, and to 60% on January 1, 2016.
The United Steelworkers opposes this measure, arguing that it
jeopardizes the safety of the environment, communities, workers
and families, and displaces 5,000 to 10,000 of their members.
Similarly, the Western States Petroleum Association states that
this bill may result in decreased safety, delayed maintenance,
and extended shutdowns, adversely impacting local communities
and the state's transportation and fuel supplies. Other
opponents, including the California Chamber of Commerce, argue
that the bill imposes a significant burden on private companies
by requiring them to pay "prevailing wages" despite the fact
that the project may not involve the use of public funds.
Analysis Prepared by : Ben Ebbink / L. & E. / (916) 319-2091
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FN: 0002127