BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 578


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          Date of Hearing:  April 29, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          578 (Low) - As Amended April 13, 2015


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          Urgency:  No  State Mandated Local Program:  YesReimbursable:   
          No


          SUMMARY:  


          This bill requires an applicant for a temporary or permanent  
          variance to an occupational safety and health standard to give  
          notice to affected workers at the place of employment, or  








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          representatives of the affected employees. Specifically, this  
          bill:  


          1)Requires an applicant for a permanent variance to provide  
            certification that the affected employees have been provided  
            notice of the request.


          2)Grants party status in temporary or permanent variance  
            proceedings, upon request, to affected employees or their  
            representatives.


          3)Provides that a temporary variance may be granted only after  
            specified is provided.


          4)Requires an employer's application for a temporary variance to  
            contain a certification that the employer has given the  
            required notice to "affected workers" or their  
            representatives.


          FISCAL EFFECT:  


          Administrative costs of approximately $275,000 to $290,000  
          (special funds) to the Department of Industrial Relations (DIR)  
          to provide additional staff to the Occupational Safety and  
          Health Standards Board (Standards Board) due to proposed changes  
          to the temporary and permanent variance hearing process. 


          COMMENTS:  


          1)Background. The Division of Occupational Safety and Health  
            (DOSH) (under the Department of Industrial Relations) enforces  








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            the health and safety standards adopted by the Occupational  
            Safety and Health Standards Board (Standards Board).  The  
            duties of the Standards Board include adopting occupational  
            safety and health standards, considering petitions for new or  
            revised standards, and granting variances from such standards.  
             


            Current law authorizes the board, upon the application of an  
            employer, to grant a permanent variance from an occupational  
            standard or order after specified notice and hearing  
            requirements are met. Current law also authorizes an employer  
            to apply to DOSH, for a temporary variance from an  
            occupational safety or health standard and requires the order  
            to be granted only if the employer's application satisfies  
            specified requirements. Existing law provides that a temporary  
            order may be granted only after notice to employees, and an  
            opportunity for a hearing, is provided. 


          2)Purpose. Current law requires the Standards Board to conduct  
            hearings on requests for variances after employees or employee  
            representatives are properly notified and given an opportunity  
            to appear.  Standards Board regulations provide that "affected  
            employees" and an authorized employee representative may elect  
            to participate as parties at any time before commencement of  
            the variance hearing. "Affected employee" includes employees  
            of the employer seeking the variance (rather than other  
            employees of other employers).  


            According to the author, requests for variances for elevator  
            construction and other public conveyances generally come from  
            the building owner.  In these instances, the owner rarely has  
            affected employees.  The workers, hired by the elevator  
            manufacturer, will be installing the public conveyance but  
            will not have been a party to the variance proceeding.  










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            The International Union of Elevator Constructors, Local 18 and  
            Local 8, are sponsoring this bill to provide employees who are  
            affected by the variance to be notified of the variance  
            application and be granted party status upon request.  





          3)Opposition. Opposition, including the California Chamber of  
            Commerce, are concerned the employer's notice obligations  
            would expand not only beyond affected employees and their  
            representatives, but into an unknown region of "workers at the  
            place of employment who will be affected by the permanent  
            variance, or representatives of affected workers who may be  
            affected by or exposed to the hazards by the temporary  
            variance."  The other workers would not be employees of the  
            employer seeking the variance, making it difficult for the  
            employer to identify the universe of workers to be notified.



            Opponents acknowledge concerns over existing regulatory  
            language, however, rather than adopt a change in statute that  
            would impact all industries; they urge the author to look at  
            changes in regulation that would address any notification  
            challenges for permanent or temporary variance applications  
            for conveyances. 





          4)Prior legislation. AB 1277 (Skinner) from 2014, among other  
            things, had language that attempted to address issues related  
            to notification and due process rights of affected employees  
            in variance proceedings.  AB 1277 was held on the Suspense  
            file in this committee.
          








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          Analysis Prepared by:Misty Feusahrens / APPR. / (916)  
          319-2081