BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                        AB 520|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
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                                   THIRD READING 


          Bill No:  AB 520
          Author:   Levine (D) and Atkins (D)
          Amended:  8/15/16 in Senate
          Vote:     21 

           SENATE LABOR & IND. REL. COMMITTEE:  3-0, 6/8/16
           AYES:  Mendoza, Leno, Mitchell
           NO VOTE RECORDED:  Stone, Jackson

           SENATE APPROPRIATIONS COMMITTEE:  Senate Rule 28.8

           SENATE LABOR & IND. REL. COMMITTEE:  4-1, 8/17/16 (pursuant to  
            Senate Rule 29.10)
           AYES:  Mendoza, Jackson, Leno, Mitchell
           NOES:  Stone

           ASSEMBLY FLOOR:  60-0, 4/27/15 - See last page for vote

           SUBJECT:   Private employment:  occupational safety and  
                     apprenticeships


          SOURCE:    Author

          DIGEST:   This bill instructs the Occupational Safety and Health  
          Standards Board to adopt a standard developed by the Division of  
          Occupational Safety and Health that requires employers to use  
          trained and certified personnel when performing corrosion  
          prevention work, as specified, on industrial and infrastructure  
          projects.


          ANALYSIS:








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          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 (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) Specifies further 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  







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             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 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.







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              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


          SSPC and NACE. SSPC and 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 this bill, to be  
          trained and/or certified according to the standards set by these  
          organizations. 


          Need for this bill? The author states that corrosion is the  
          natural deterioration of a substance because of a reaction with  







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          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, SSPC and NACE 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  
          prevention standard with the 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.


          Prior Legislation


          SB 792 (Padilla, 2013) 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, the bill provided  
          that these regulations required the use of certified personnel  







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          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, 2017, these regulations be a  
          condition of public contracts receiving state funds.  The bill  
          was vetoed by the Governor.  Governor Brown's veto message  
          states: 


            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.




          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   Yes


          SUPPORT:   (Verified8/17/16)


           Auto, Marine & Specialty Painters Local Union 1176
           International Union of Painters and Allied Trades, District  







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            Council 16
           International Union of Painters and Allied Trades, Painters &  
            Drywall Finishers, Local 83
           International Union of Painters and Allied Trades, Painters &  
            Drywall Finishers, Local 376
           International Union of Painters and Allied Trades, Painters &  
            Drywall Finishers, Local 741
           International Union of Painters and Allied Trades, Painters &  
            Tapers, Local 272
           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
           State Building and Construction Trades Council of California


          OPPOSITION:   (Verified8/17/16)


          Associated Builders and Contractors of California
          Associated Builders and Contractors-San Diego Chapter
          Associated General Contractors
          Plumbing-Heating-Cooling Contractors Association of California
          Western Electrical Contractors Association


          ARGUMENTS IN SUPPORT:     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'  







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          health and safety. They argue that AB 520 will set down needed  
          health and safety standards for those who perform this dangerous  
          work.


          ARGUMENTS IN OPPOSITION:     Opponents contend that AB 520 
          bypasses an evaluation of industry practices and procedures, and  
          mandates a new certification requirement based only on a single  
          standard developed by SSPC and NACE. Furthermore, opponents  
          state that AB 520 sets a 3-1 ratio of certified employees to  
          those uncertified, and that a "one-size fits all" standard does  
          not give contractors any flexibility based upon the complexity  
          of the project. Opponents also argue that the bill broadly  
          defines "corrosion prevention work" to the degree that virtually  
          any preparation of steel or concrete and the application of any  
          finish that could provide corrosion protection is covered by the  
          requirement. Finally, opponents state that AB 520 applies to  
          "industrial and infrastructure projects" which they believe  
          suggests that other than residential construction, every other  
          construction project, private and public, would fall under the  
          requirements of the bill.


          ASSEMBLY FLOOR:  60-0, 4/27/15
          AYES:  Achadjian, Alejo, Baker, Bloom, Bonilla, Bonta, Brown,  
            Burke, Calderon, Chau, Chávez, Chiu, Chu, Cooley, Cooper,  
            Dababneh, Daly, Dodd, Eggman, Frazier, Cristina Garcia,  
            Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray,  
            Grove, Hadley, Roger Hernández, Holden, Irwin, Jones-Sawyer,  
            Lackey, Levine, Lopez, Low, McCarty, Medina, Mullin, Nazarian,  
            Obernolte, O'Donnell, Olsen, Perea, Quirk, Rendon,  
            Ridley-Thomas, Rodriguez, Salas, Santiago, Mark Stone,  
            Thurmond, Ting, Waldron, Weber, Williams, Wood, Atkins
          NO VOTE RECORDED:  Travis Allen, Bigelow, Brough, Campos, Chang,  
            Dahle, Beth Gaines, Gallagher, Harper, Jones, Kim, Linder,  
            Maienschein, Mathis, Mayes, Melendez, Patterson, Steinorth,  
            Wagner, Wilk

          Prepared by:Brandon Seto / L. & I.R. / (916) 651-1556
          8/17/16 16:06:32


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