BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 520| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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: AB 520 Page 2 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 AB 520 Page 3 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. AB 520 Page 4 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 AB 520 Page 5 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 AB 520 Page 6 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 AB 520 Page 7 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' AB 520 Page 8 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 **** END **** AB 520 Page 9