BILL ANALYSIS                                                                                                                                                                                                    Ó


          |SENATE RULES COMMITTEE            |                         SB 54|
          |Office of Senate Floor Analyses   |                              |
          |1020 N Street, Suite 524          |                              |
          |(916) 651-1520         Fax: (916) |                              |
          |327-4478                          |                              |
                                 UNFINISHED BUSINESS

          Bill No:  SB 54
          Author:   Hancock (D)
          Amended:  9/3/13
          Vote:     21


          AYES:  Hill, Calderon, Corbett, Hancock, Jackson, Leno, Pavley
          NOES:  Gaines, Fuller

           ASSEMBLY FLOOR  :  51-24, 9/9/13 - See last page for vote

           SUBJECT  :    Hazardous materials:  stationary sources:  trained  

           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  


                                                                      SB 54

          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  
          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  

          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  



                                                                      SB 54

             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 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  



                                                                      SB 54

             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  

             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  

          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.

          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  



                                                                      SB 54

          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.

           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



                                                                      SB 54

          California State Council of Laborers 
          California State Pipe Trades Council California 
          California Teamsters Public Affairs Council 
          Construction Employees Association
          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  
          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,  



                                                                      SB 54

            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
          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  9/11/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

                                   ****  END  ****