BILL ANALYSIS Ó AB 578 Page 1 Date of Hearing: April 29, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 578 (Low) - As Amended April 13, 2015 ----------------------------------------------------------------- |Policy |Labor and Employment |Vote:|5 - 2 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- 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 AB 578 Page 2 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 AB 578 Page 3 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. AB 578 Page 4 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. AB 578 Page 5 Analysis Prepared by:Misty Feusahrens / APPR. / (916) 319-2081