BILL ANALYSIS                                                                                                                                                                                                    Ó





          SENATE COMMITTEE ON LABOR AND INDUSTRIAL RELATIONS
                             Senator Tony Mendoza, Chair
                                2015 - 2016  Regular 

          Bill No:               AB 520       Hearing Date:    August 17,  
          2016
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          |Author:    |Levine                                               |
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          |Version:   |August 15, 2016                                      |
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          |Urgency:   |No                     |Fiscal:    |Yes              |
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          |Consultant:|Brandon Seto                                         |
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               Subject:  Private employment:  occupational safety and  
                                   apprenticeships


          KEY ISSUE
          
          Should the Legislature instruct the Occupational Safety and  
          Health Standards Board to adopt a standard developed by the  
          Division of Occupational Safety and Health that requires  
          employers performing corrosion prevention work on industrial and  
          infrastructure projects to use trained and certified personnel?

          ANALYSIS
          
           Existing law  


             1)   Establishes the Occupational Safety and Health Standards  
               Board (Board), within the Department of Industrial  
               Relations, as the standards-setting agency for the Division  
               of Occupational Safety and Health (Cal/OSHA). The Board  
               promulgates and enforces occupational safety and health  
               standards for the state (Labor Code §140 and §142.3).


             2)   Establishes the Division of Apprenticeship Standards  








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               (DAS) to administer California apprenticeship law and  
               enforce apprenticeship standards for wages, hours, working  
               conditions and the specific skills required for state  
               certification as a journeyperson in an apprenticeable  
               occupation.  Within the DAS, the California Apprenticeship  
               Council (CAC) issues rules and regulations which establish  
               standards for minimum wages, maximum hours, and working  
               conditions for apprentice agreements (Labor Code §3070 and  
               §3071).  


              3)   Requires the Chief of the DAS and the CAC to report  
               annually through the Director of Industrial Relations to  
               the Legislature on the activities of the DAS and the CAC  
               including certain aspects of apprenticeship programs in the  
               State (Labor Code §3073.5).  
            
          This Bill 

             1)   States that the Board must, by June 1, 2017, adopt a  
               standard to be developed by Cal/OSHA that requires  
               employers performing corrosion prevention work on  
               industrial and infrastructure projects to use trained and  
               certified personnel.

             2)   Further specifies that this standard include a  
               requirement that employees performing this type of work be  
               trained and certified according to the NACE 13/ACS 1  
               standard developed by the Society for Protective Coatings  
               (SSPC) and the National Association of Corrosion Engineers  
               International (NACE) for an industrial coating and lining  
               application specialist. Apprentices registered in an  
               industrial apprenticeship program approved by the DAS that  
               provides training to meet the NACE 13/ACS 1 standard may  
               also perform this work.

             3)   Defines "corrosion prevention work" as surface  
               preparation, including abrasive blasting, and the  
               application of protective coatings and linings, including  
               spray application, to steel and concrete surfaces for the  
               purpose of corrosion prevention. 

             4)   Stipulates that when performing this work, three  
               employees certified in this manner must be used by  
               employers for every one employee who is not, and that those  







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               employees must be supervised by those who are certified. 

             5)   Requires that employers maintain reasonably-accessible  
               records of compliance with this standard in a manner that  
               protects employee privacy.

             6)   Specifies that this certification requirement will be  
               phased in, and that the standard must be fully-implemented  
               by January 1, 2020. 

             7)    Makes an exception from the standard for work on sheet  
               metal, ventilation systems, plumbing and piping systems or  
               precast concrete work that is performed offsite when the  
               work on these systems or precast work is performed by  
               either:

                  a)        Skilled journey persons who are graduates of  
                    an apprenticeship program for the applicable  
                    occupation that was either approved by the Chief of  
                    the DAS, or located outside California and approved  
                    for federal purposes pursuant to the apprenticeship  
                    regulations adopted by the federal Secretary of Labor.

                  b)        Apprentices registered in an apprenticeship  
                    program for the applicable occupation that was  
                    approved by the Chief of the DAS.

             8)   Makes and additional exception from the standard if the  
               surface to be prepared and coated are both smaller than 100  
               square or 100 linear feet.

             9)   Specifies that these provisions do not limit the  
               authority of the Board to adopt additional standards that  
               may include elements of this standard, or additional  
               requirements that are broader in scope than those described  
               in this bill, to protect employees performing corrosion  
               prevention or other industrial painting work. 

             10)  Mandates that in the required annual report to the  
               Legislature, the Chief of the DAS and the CAC must include  
               an analysis of any apprenticeship standards or regulations  
               proposed or adopted in the previous year. 
          
          COMMENTS
          







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          1.    Brief Background  
               
            The Society for Protective Coatings (SSPC) and the National  
            Association of Corrosion Engineers (NACE) are third-party  
            organizations that develop training, manufacturing and safety  
            specifications and certifications based on science and  
            researched best-practices. NACE establishes industry standards  
            for corrosion protection.  The organization also offers  
            technical training and certification programs, conferences,  
            reports, publications, technical journals, and government  
            relations activities. Employees performing corrosion  
            prevention work would be required, as specified in the  
            provisions of the bill, to be trained and/or certified  
            according to the standards set by these organizations. 

          2.  Need for this bill?

            The author states that corrosion is the natural deterioration  
            of a substance because of a reaction with its environment.  A  
            2002 study released by the Federal Highway Administration  
            revealed that metallic corrosion costs the country $276  
            billion per year.  The primary defense against corrosion  
            involves the application of protective coatings to surfaces.   
            Accordingly, the author believes that the performance of  
            corrosion prevention work on industrial and infrastructure  
            projects presents significant safety and health risks that  
            should be addressed by an occupational safety and health  
            standard applicable to the work at issue. 

            In 2004, the Society for Protective Coatings and NACE,  
            International, collaborated to develop a general industry  
            standard for the safe performance of corrosion prevention  
            work.  With input from industry experts and career industrial  
            painters, they developed the NACE 13/ACS 1 standard for  
            certification as an Industrial Coating and Lining Application  
            Specialist.  The NACE 13/ACS 1 standard represents the  
            consensus of the industrial painting community as to the body  
            of knowledge necessary to perform surface preparation and  
            coating application safely and effectively for steel and  
            concrete surfaces for complex industrial and infrastructure  
            projects.  

            The author goes on to state that the International Union of  
            Painters and Allied Trades filed a petition, accompanied by  
            supporting evidence, seeking the adoption of a corrosion  







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            prevention standard with the Occupational Safety and Health  
            Standards Board on August 24, 2015.  The author states that  
            the Board granted the petition and referred the matter to a  
            Cal/OSHA Industrial Painter Certification Advisory Committee,  
            but that the proceeding has stalled.  The author believes that  
            this bill and the standard it calls for are necessary to  
            protect the health and safety of corrosion prevention workers.

          3.  Proponent Arguments  :
            
            Proponents state that corrosion prevention work is absolutely  
            necessary for prolonging the durability and integrity of a  
            wide range of infrastructure and industrial structures, as  
            well as protecting the environment from potentially hazardous  
            materials. Proponents believe that when coatings or linings  
            are applied incorrectly, this protection can be short-lived  
            and that reapplication or intensive repair is subsequently  
            needed. This can result in cost overruns or unexpected  
            maintenance needs. Skilled and certified workers applying  
            these coats ensure that the work is done properly, on time,  
            and to the highest industry standards. Proponents state that  
            these regulations will allow future contracts to reflect the  
            priorities of infrastructure longevity, environmental  
            protection, and worker safety. In a competitive work  
            environment with the pressure of schedules and costs,  
            proponents contend that the first thing compromised is  
            workers' health and safety. They argue that AB 520 would set  
            down needed health and safety standards for those who perform  
            this dangerous work.

          4.  Opponent Arguments  :

            None received.

          5.  Prior Legislation  :

            SB 792 (Padilla) Vetoed, 2014 - Directed the Department of  
            Industrial Relations in consultation with the Department of  
            Toxic Substances Control to adopt regulations for corrosion  
            prevention work on public infrastructure projects. Also, this  
            bill provided that these regulations required the use of  
            certified personnel for the application of protective coatings  
            and linings on steel and concrete in order to prevent early  
            deterioration due to corrosion and related environmental  
            contamination.  Finally, the bill mandated that by January 1,  







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            2017, these regulations be a condition of public contracts  
            receiving state funds.  
            
            Governor Brown's Veto Message: 
            
            This bill directs the Department of Industrial Relations, in  
            consultation with the Department of Toxic Substances Control,  
            to adopt regulations, on or before January 1, 2016, to  
            establish performance standards for corrosion prevention work  
            on projects designated as public works. Unfortunately, the  
            development of these standards is outside of the jurisdiction  
            and expertise of these departments. 

          Using industry accepted standards for corrosion prevention and  
            worker safety on public infrastructure projects is good policy  
            and procurement requirements should ensure that all workers  
            are properly trained and certified to do this critical work. 

          Therefore I am directing the Department of Industrial Relations  
            to incorporate industry accepted standards for corrosion  
            prevention training into the appropriate apprenticeship  
            programs. I am also directing the department to work with the  
            Standards Board to assess the adequacy of safety standards for  
            workers engaged in corrosion prevention work and make  
            necessary changes.  
            
          SUPPORT
          
          Auto, Marine & Specialty Painters Local Union 1176
          International Union of Painters and Allied Trades, District  
          Council 16
          International Union of Painters and Allied Trades, Painters &  
          Tapers, Local 487
          International Union of Painters and Allied Trades, Painters &  
          Tapers, Local 507
          International Union of Painters and Allied Trades, Painters,  
          Tapers, Floorcoverers, & Glaziers, Local 294
          International Union of Painters and Allied Trades, Painters &  
          Drywall Finishers, Local 83
          International Union of Painters and Allied Trades, Painters &  
          Drywall Finishers, Local 741
          State Building and Construction Trades Council of California
          
          OPPOSITION
          







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          None on file.

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