BILL ANALYSIS Ó AB 520 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 520 (Levine and Atkins) As Amended August 15, 2016 Majority vote -------------------------------------------------------------------- |ASSEMBLY: |. |(April 27, |SENATE: |27-12 |(August 22, | | | |2016) | | |2016) | | | | | | | | | | | | | | | -------------------------------------------------------------------- (vote not relevant) ---------------------------------------------------------------------- | | | | | | | | | | | | |COMMITTEE VOTE: |5-2 |(August 29, |RECOMMENDATION: |concur | | | |2016) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ---------------------------------------------------------------------- L. & E. Original Committee Reference: L. & E. SUMMARY: Requires the Occupational Safety and Health Standards Board (Standards Board) to adopt a standard that requires AB 520 Page 2 employers performing corrosion prevention work on industrial and infrastructure projects to use trained and certified personnel, as specified, and makes other changes to existing law. The Senate amendments: 1)Require the Standards Board, by June 1, 2017, to adopt a standard that requires employers performing corrosion prevention work on industrial and infrastructure projects to use trained and certified personnel. 2)Specify that the standard shall include all of the following: a) A requirement that an employee performing corrosion prevention work be trained in accordance with the National Association of Corrosion Engineers International (NACE) 13/Applicator Certification Standard No. 1(ACS 1) for an industrial coating and lining application specialist developed by the Society for Protective Coatings (SSPC) and the National Association of Corrosion Engineers International (NACE). b) A requirement that an employee who performs corrosion prevention work obtain a certification as an SSPC Level 2 Corrosion Application Specialist, or an equivalent certification. c) A requirement that an employer performing corrosion prevention work use at least three trained and certified employees for every one employee who is not certified, with the uncertified employee working under supervision. d) Provisions that allow corrosion prevention work to be performed by apprentices registered in an industrial apprenticeship program approved by the Division of AB 520 Page 3 Apprenticeship Standards (DAS) that provides training to meet the NACE 13/ACS 1 standard. e) Provisions that require an employer to maintain records of compliance with the standard and allow reasonable access to those records by members of the public in a manner that protects employee privacy. f) An appropriate phase-in period for the certification requirement that ensures full implementation of the standard by January 1, 2020. g) A definition of corrosion prevention work that includes surface preparation, including abrasive blasting, and application of protective coatings and linings, including spray application, to steel and concrete surfaces for the purpose of corrosion prevention. h) An exception from the standard for work on sheet metal and ventilation systems, or on plumbing and piping systems or precast concrete work that is performed offsite when the work on these systems or precast concrete work is performed by either: i) Skilled journeypersons who are graduates of an apprenticeship program for the applicable occupation that was either approved by the DAS or located outside California and approved for federal purposes pursuant to the apprenticeship regulations adopted by the federal Secretary of Labor. ii) Apprentices registered in an apprenticeship program for the applicable occupation that was approved by the DAS. AB 520 Page 4 i) An exception from the standard if the surface to be prepared and the surface to be coated are both smaller than 100 square or 100 linear feet. 3)Provide that this bill shall not be construed to limit the authority of the Standards Board to adopt additional standards to protect employees performing corrosion prevention or other industrial painting work. Nothing in this bill shall be interpreted to preclude the Standards Board from adopting standards that include elements or requirements additional to, or broader in scope than, those described in this bill. FISCAL EFFECT: Unknown COMMENTS: The SSPC and the 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. In 2004, the SPPC 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. According to the author, 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. In 2013, the Legislature passed SB 792 (Padilla), which required the Director of the Department of Industrial Relations (DIR), in AB 520 Page 5 consultation with the Department of Toxic Substances Control, to adopt regulations establishing standards for the performance of corrosion prevention and mitigation work on public projects that reflect industry best practices. The author and the sponsor of SB 792 (the International Union of Painters and Allied Trades), argued that the well-being of California and its people is dependent upon the quality and integrity of its water infrastructure, bridges, roads and industrial structures. Ensuring the reliability of these public assets depends primarily on two factors: the performance of proper, timely preventive maintenance by certified workers as well as the extent and severity of structural corrosion or other deterioration. They argued that as California is poised to spend more than $7 billion on water infrastructure in the near future, preventative measures like corrosion prevention applications should be a part of all new construction, retrofitting, and maintenance work. This protects against deterioration of the building materials, as well as environmental contamination from leakage, breaks, or the release of toxics. However, SB 792 was vetoed by Governor Brown. In his veto message, the Governor stated: "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. AB 520 Page 6 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." On August 26, 2015, the International Union of Painters and Allied Trades filed a petition with the Standards Board to amend the General Industry Safety Orders to adopt a safety and health standard governing the performance of corrosion prevention work on industrial and infrastructure projects in California. The Standards Board convened an advisory committee to discuss the necessity for amending the current standards to include the requirements of the NACE 13/ACS 1 standard. However, such a standard has not yet been adopted by the Standards Board. The petitioner and supporters have expressed concerns that there have been delays between meetings of the advisory committee, and that the Standards Board is considering dispensing with the requirement of independent third party certification, which they contend is an essential component of any effective, enforceable regulation in this area. Supporters of this bill argue that it would reduce long-term costs and ultimately save taxpayer money. They argue that the NACE 13 ACS/1 standard is the most widely recognized standard by public and private entities on their corrosion prevention projects. This would not only prevent early deterioration due to corrosion and related environmental contamination, but also ensure that the highest industry safety standards are applied on what is often very dangerous work. Opponents argue that this bill differs from other requirements of existing law by mandating a particular regulatory scheme. AB 520 Page 7 They argue that this bill bypasses any evaluation of industry practices and procedures and mandates a new certification requirement in the final weeks of the legislative session where there will be scant opportunity for the public, industry and others to opine on the new mandates. Furthermore, they raise numerous concerns about the specific requirements of the bill, including the fact that it sets a single standard for training and establishes a monopoly for SSPC and NACE. Analysis Prepared by: Ben Ebbink / L. & E. / (916) 319-2091 FN: 0004964