BILL ANALYSIS                                                                                                                                                                                                    Ó



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

          AB 1050 (Low) - Occupational safety and health:  permanent  
          variances
          
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          |Version: February 10, 2016      |Policy Vote: JUD. 5 - 1, L. &   |
          |                                |          I.R. 3 - 1            |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: August 1, 2016    |Consultant: Robert Ingenito     |
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          This bill meets the criteria for referral to the Suspense File.


          


          Bill  
          Summary: AB 1050 would (1) require that employers seeking a  
          permanent variance to an elevator safety order notify specified  
          affected workers, and (2) grant party status to affected  
          workers, or their authorized representative, to participate in  
          variance proceedings.


          Fiscal  
          Impact: The Department of Industrial Relations (DIR) indicates  
          that it would incur first-year costs of $166,000 and ongoing  
          costs of $160,000 to implement the provisions of the bill  
          (special fund).


          Background: The Occupational Safety and Health Standards Board (Standards  







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          Board) adopts occupational safety and health standards that are  
          designed to protect state 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. 
          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.


          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 (1) require employers seeking a permanent  
          variance to a conveyance covered by the elevator safety orders  
          to notify the union representing elevator workers in the region  
          where the building is being constructed or modified, and those  
          workers who will be performing the tasks pursuant to the  
          proposed variance, or their authorized representative, and (2)  
          grant these workers, or their authorized representative, party  
          status upon request to the Standards Board.


          Related  
          Legislation: AB 578 (Low) of 2015, was similar to this bill, but  
          was broader in scope and included notification requirements for  
          both permanent and temporary variance requests. The bill was  
          vetoed by the Governor.


          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 $166,000  
          initially and $160,000 ongoing.












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