BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 578 (Low) - Occupational safety and health.
          
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          |Version: April 13, 2015         |Policy Vote: L. & I.R. 4 - 1    |
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          |Urgency: No                     |Mandate: Yes                    |
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          |Hearing Date: July 6, 2015      |Consultant: Robert Ingenito     |
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          This bill meets the criteria for referral to the Suspense File.







          Bill  
          Summary: AB 578 would require an applicant for a temporary or  
          permanent variance to an occupational safety and health standard  
          to give notice to affected workers (or their representatives) at  
          the place of employment, as specified.


          Fiscal  
          Impact: The Department of Industrial Relations (DIR) would incur  
          first-year costs (special funds) of $291,000 and ongoing costs  
          of $275,000 to implement the provisions of the bill. 


          Background: The Occupational Safety and Health Standards Board (Standards  
          Board) adopts occupational safety and health standards that are  







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          designed to protect California workers. However, current law  
          includes a process whereby an employer may apply for permission  
          to deviate or not follow an existing standard (also known as a  
          variance). Variances can be either permanent or temporary in  
          nature. 
          Permanent Variances. An employer may apply to the Standards  
          Board for a permanent variance from a standard (or portion of  
          one), upon a showing of an alternative program, method,  
          practice, means, device, or process which will provide equal or  
          superior safety for employees. The Standards Board will grant  
          the request if it determines that the condition or practice  
          proposed to be used by the employer will provide places of  
          employment which are as safe and healthful as those which would  
          prevail if he or she complied with the existing standard. The  
          Standards Board is required to conduct hearings on requests for  
          permanent variances after employees or employee representatives  
          are properly notified.


          Temporary Variances. In contrast, temporary variances are  
          short-term in duration. Temporary variances also have different  
          procedures and standards that apply.  First, applications for  
          temporary variances are made to the Division of Occupational  
          Safety and Health (DOSH), rather than the Standards Board.   
          However, the decision by DOSH to allow or deny the variance may  
          be appealed to the Standards Board.


          The criteria for the granting of a temporary variance also  
          differ from those governing permanent variances.  A temporary  
          variance shall be granted only if it has been established that  
          the employer (1) is unable to comply with a standard by its  
          effective date because of unavailability of professional or  
          technical personnel or of materials and equipment needed to come  
          into compliance with the standard or because necessary  
          construction or alteration of facilities cannot be completed by  
          the effective date, (2) is taking all available steps to  
          safeguard the employees against the hazards covered by the  
          standard; and (3) has an effective program for coming into  
          compliance with the standard as quickly as practicable.












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          Proposed Law:  
           This bill would amend current law related to variances from  
          occupational safety and health standards.  Specifically, this  
          bill would, among other things, do the following:  
                 Require 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 or exposed to hazards by the permanent  
               variance, or representatives of the affected employees.


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


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


                 Require 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.


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


                 Require 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.


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










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          Related  
          Legislation: AB 1277 (Skinner, 2014), among other things,  
          attempted to address issues related to notification and due  
          process rights of affected employees in variance proceedings.   
          However, the language was not identical to that contained in  
          this bill.  AB 1277 was held in the Assembly Appropriations  
          Committee.


          Staff  
          Comments: As noted above, current law requires the Standards  
          Board to conduct hearings on requests for variances after  
          employees or their 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 those of other employers).  

          Regarding instances of requests for variances for elevator  
          construction and other public conveyances, such requests  
          generally come from the building owner. However, the owner  
          typically has few affected employees. Instead, employees  
          performing the labor to repair an elevator would be installing  
          the public conveyance but would not have been a party to the  
          variance proceeding.  

          DIR indicates that the increased workload resulting from the  
          bill would require additional staff, at a cost of $291,000  
          initially and $275,000 ongoing.


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