BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 578


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          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


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          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.








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          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.  








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          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  








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          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