BILL ANALYSIS Ó AB 578 Page 1 GOVERNOR'S VETO AB 578 (Low) As Enrolled September 10, 2015 2/3 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 | | | | | | | | | | | | -------------------------------------------------------------------- -------------------------------------------------------------------- |ASSEMBLY: |52-27 |(June 2, 2015) |SENATE: |23-16 |(September 8, | | | | | | |2015) | | | | | | | | AB 578 Page 2 | | | | | | | | | | | | | | | | | | | | | | | | | | | | -------------------------------------------------------------------- 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 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. AB 578 Page 3 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 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. AB 578 Page 4 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 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. GOVERNOR'S VETO MESSAGE: This bill requires employers who apply for variances of existing occupational safety or health standards to formally notice workers, or representatives of workers, who will be impacted. While this bill is intended to provide an opportunity for affected workers to be notified of variances and raise concerns during a relevant hearing, it is unclear what workers would be affected, and why the current process at the Occupational Safety and Health Standards Board is not sufficient. In fact the board routinely works with stakeholders to provide timely written notice of variance requests and permits those parties to AB 578 Page 5 intervene in the proceedings. I believe that process is one that provides adequate opportunity for interested and affected workers to be heard. Analysis Prepared by: Ben Ebbink / L. & E. / (916) 319-2091 FN: 0002492