BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 578 (Low) - Occupational safety and health. ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: April 13, 2015 |Policy Vote: L. & I.R. 4 - 1 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: Yes | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: July 6, 2015 |Consultant: Robert Ingenito | | | | ----------------------------------------------------------------- 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 AB 578 (Low) Page 1 of ? 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. AB 578 (Low) Page 2 of ? 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. AB 578 (Low) Page 3 of ? 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. -- END -- AB 578 (Low) Page 4 of ?