BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                       AB 578


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          ASSEMBLY THIRD READING


          AB  
          578 (Low)


          As Amended  April 13, 2015


          Majority vote


           -------------------------------------------------------------------- 
          |Committee       |Votes |Ayes                   |Noes                |
          |----------------+------+-----------------------+--------------------|
          |Labor           |5-2   |Roger Hernández, Chu,  |Harper, Patterson   |
          |                |      |Low, McCarty, Thurmond |                    |
          |                |      |                       |                    |
          |----------------+------+-----------------------+--------------------|
          |Appropriations  |12-5  |Gomez, Bonta,          |Bigelow, Chang,     |
          |                |      |Calderon, Daly,        |Gallagher, Jones,   |
          |                |      |Eggman, Eduardo        |Wagner              |
          |                |      |Garcia, Gordon,        |                    |
          |                |      |Holden, Quirk, Rendon, |                    |
          |                |      |Weber, Wood            |                    |
          |                |      |                       |                    |
          |                |      |                       |                    |
           -------------------------------------------------------------------- 


          SUMMARY:  Makes changes to existing law related to variances from  
          occupational safety and health standards.  Specifically, this  
          bill:  


          1)Requires an applicant for a permanent variance to an  
            occupational safety and health standard to also give notice to  
            workers at the place of employment who will be "affected" by the  








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            permanent variance, or representatives of the affected  
            employees.


          2)Provides that an applicant for a permanent variance shall  
            provide certification that the affected employees have been  
            provided notice of the request.


          3)Provides that, upon request, "affected employees" or their  
            representatives shall be granted party status in permanent  
            variance proceedings.


          4)Requires an employer applying for a temporary variance to an  
            occupational safety and health standard to also give notice to  
            workers at the place of employment who will be "affected" by the  
            temporary variance, or representative of the affected workers.


          5)Provides that a temporary variance may be granted only after  
            notice to employees and other "affected workers" and an  
            opportunity for a hearing.


          6)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.


          7)Provides that, upon request, any "affected worker" or  
            representative of affected workers, shall be granted party  
            status to the variance proceedings.


          8)Makes related and conforming changes.


          FISCAL EFFECT:  According to the Assembly Appropriations  








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          Committee, ongoing costs of approximately $275,000 to $290,000  
          (special funds) to the Department of Industrial Relations 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:  The sponsors argue that the Standards Board has the  
          authority to grant variances to occupational safety and health  
          standards.  Existing law requires that affected employees be  
          notified of the variance request.  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.  


          The sponsors state that this legislation will simply provide that  
          those employees who are directly affected by the variance be  
          notified of the variance application and be granted party status  
          upon request.  


          A coalition of organizations, including the California Chamber of  
          Commerce, opposes this measure.  They argue that this bill  
          proposes to significantly expand the employer's notice obligations  
          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 that current regulation language "appears to  
          create the concern" giving rise to this bill.  However, rather  








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          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 that may exist in the process  
          for permanent or temporary variance applications for conveyances. 




          Analysis Prepared by:                                               
          Ben Ebbink / L. & E. / (916) 319-2091  FN: 0000570