BILL ANALYSIS Ó
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UNFINISHED BUSINESS
Bill No: SB 54
Author: Hancock (D)
Amended: 9/3/13
Vote: 21
PRIOR VOTES NOT RELEVANT
ASSEMBLY FLOOR : 51-24, 9/9/13 - See last page for vote
SUBJECT : Hazardous materials: stationary sources: trained
workforce
SOURCE : State Building and Construction Trades Council
DIGEST : This bill enacts specified provisions related to
construction and related work performed by contract at specified
stationary sources.
Assembly Amendments delete the Senate version of the bill which
dealt with public employees and insert current language which
addresses industrial safety, skilled and workforce training.
ANALYSIS : 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 this accidental release prevention program 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 that the use of
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regulated substances by a stationary source may pose 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 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.
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
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on-the-job experience that will 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.
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
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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.
Comments
According to the author's office, 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
construction work associated with such facilities, general
facility operations and emergency plans.
Therefore, the author's office 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's office
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
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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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
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.
SUPPORT : (Verified 9/9/13)
State Building and Construction Trades Council (source)
California Medical Association
California Professional Firefighters
California State Council of Laborers
California State Pipe Trades Council California
California Teamsters Public Affairs Council
Construction Employees Association
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Environmental Labor Coalition of Contra Costa County
International Association of Heat and Frost Insulators, Local 5
International Brotherhood of Boilermakers
Legislative Conference of Plumbing, Heating, and Piping Industry
National Electrical Contractors Association
State Association of Electrical Workers
State Building and Construction Trades Council (Sponsor)
Western Steel Council
OPPOSITION : (Verified 9/10/13)
Air Conditioning Trade Association
American Chemistry Council
American Council of Engineering Companies of California
Asian Pacific Environmental Network
Associated Builders and Contractors of California
Association of California Surety Companies
Building Owners and Managers Association of California
California Business Properties Association
California Chamber of Commerce
California League of Food Processors
California Manufacturers and Technology Association
Chemistry Industry Council of California
Communities for a Better Environment
International Council of Shopping Centers
NAIOP of California, the Commercial Real Estate Development
Association
Plumbing-Heating-Cooling Contractors
United Steelworkers
West Coast Lumber and Building Material Association
Western Electrical Contractors Association
Western Plant Health Association
Western States Petroleum Association
ASSEMBLY FLOOR : 51-24, 9/9/13
AYES: Alejo, Ammiano, Atkins, Bloom, Bocanegra, Bonilla, Bonta,
Bradford, Buchanan, Ian Calderon, Campos, Chau, Chesbro,
Cooley, Daly, Dickinson, Eggman, Fong, Fox, Frazier, Garcia,
Gatto, Gomez, Gonzalez, Gordon, Gray, Roger Hernández, Holden,
Jones-Sawyer, Levine, Lowenthal, Medina, Mitchell, Mullin,
Muratsuchi, Nazarian, Pan, Perea, V. Manuel Pérez, Quirk,
Quirk-Silva, Rendon, Salas, Skinner, Stone, Ting, Weber,
Wieckowski, Williams, Yamada, John A. Pérez
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NOES: Achadjian, Allen, Bigelow, Chávez, Conway, Dahle,
Donnelly, Beth Gaines, Gorell, Grove, Hagman, Harkey, Jones,
Linder, Logue, Maienschein, Mansoor, Melendez, Morrell, Olsen,
Patterson, Wagner, Waldron, Wilk
NO VOTE RECORDED: Brown, Hall, Nestande, Vacancy, Vacancy
PQ:d 9/10/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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