BILL ANALYSIS                                                                                                                                                                                                    







             SENATE COMMITTEE ON Public Safety
                   Senator John Vasconcellos, Chair   A
                      1999-2000 Regular Session       B

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AB 1127 (Steinberg)                                   7
As Amended July 12, 1999
Hearing date:  July 13, 1999
Labor Code
MK:jm

                 EMPLOYEE SAFETY:  VIOLATIONS  

                          HISTORY

Sources:  Los Angeles District Attorney's Office; Attorney  
          General; California Labor Federation, AFL-CIO

Prior Legislation:AB 1015 (Knox) 1998 - vetoed
            AB 2156 (Keeley) 1998 - vetoed
            SB 1464 (Marks) 1994 - vetoed
            AB 3831 (Horcher) 1994 - vetoed
            SB 1935 (B. Greene) 1992 - vetoed
            SB 2277 (Burton) 1992 - vetoed
            AB 1545 (Friedman) Chapter 599, Statutes of  
1991
            AB 150 (Assembly Select Committee on Industrial  
Safety)
                  Chapter 993, Statutes of 1973
           
Support: (See Comment #6)

Opposition: (See Comment #6)

Assembly Floor Vote:  Ayes 45 - Noes  32

                               
                         KEY ISSUES




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SHOULD THE MISDEMEANOR PENALTIES FOR A REPEATED VIOLATION  
OF AN ORDER OR FAILURE TO COMPLY WITH AN ORDER WHICH  
CREATES A REAL HAZARD TO EMPLOYEES BE INCREASED?

                                                 (CONTINUED)



SHOULD IT BE AN ALTERNATE MISDEMEANOR/FELONY ("WOBBLER") FOR AN EMPLOYEE TO  
WILLFULLY VIOLATE AN OCCUPATIONAL SAFETY OR HEALTH STANDARDS AND THEREBY CAUSE  
THE DEATH TO ANY EMPLOYEE OR CAUSE PERMANENT OR PROLONGED INJURY TO THE  
EMPLOYEE?

SHOULD A SECOND WILLFUL VIOLATION OF AN OCCUPATIONAL SAFETY OR HEALTH STANDARD  
CAUSING DEATH OR PERMANENT OR PROLONGED INJURY TO AN EMPLOYEE BE A FELONY?

SHOULD CIVIL PENALTIES FOR OCCUPATIONAL SAFETY OR HEALTH STANDARDS BE  
INCREASED?

SHOULD OTHER CHANGES BE MADE TO THE LABOR CODE REGARDING THE ENFORCEMENT OF  
HEALTH AND SAFETY CODE VIOLATIONS?


                          PURPOSE

The purpose of this bill is to increase the civil and  
criminal penalties for violations of statutes and  
regulations regarding worker safety and make related  
changes to Labor Code provisions regarding worker health  
and safety.

  In existing law  , the Penal Code defines specified terms for  
the purposes of the Penal Code, including:

 "willfully" when applied to the intent with which an act  
  is done or omitted, implies simply a purpose or  
  willingness to commit the act or make the omission  
  referred to.  It does not require any intent to violate  
  law, or to injury another, or to acquire any advantage.




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 "negligently" imports a want of such attention to the  
  nature or probable consequences of the act or omission as  
  a prudent man ordinarily bestows in acting in his own  
  concerns.
 "knowingly" imports only of a knowledge that the facts  
  exist which bring the act or omission within the  
  provisions of the code.  (Penal Code 7)

  This bill  adopts the above definitions and all other  
definitions referenced in Penal Code 7 for the purpose of  
defining terms in the criminal provisions of this bill.

  Existing law  provides that every employer and every  
officer, management official, or supervisor having  
direction, management, control, or custody of any  
employment, place of employment, or other employee who does  
any of the following is guilty of a misdemeanor punishable  
by up to six months in county jail and/or a fine not  
exceeding $5,000:

 Knowingly or negligently violates any standard, or  
  special order, or any provision of this division the  
  violation of which is deemed to be a serious violation.
 Repeatedly violates any standard, order, or special  
  order, or provision of this division, or any part thereof  
  in, or authorized by, this part, which repeated violation  
  creates a real and apparent hazard to employees.
 Fails or refuses to comply, after notification and  
  expiration of any abatement period, which any such  
  standard order, special order, or provision of this  
  division, or any part thereof, which failure or refusal  
  creates a real and apparent hazard to employees.
 Directly or indirectly or knowingly induces another to do  
  any of the above. (Labor Code 6423)

  This bill  increases the penalty for repeated violations or  
failure to comply or inducing others to do the above to up  
to one year in county jail and/or a $15,000 fine.

  This bill  also creates a separate penalty if the violator  




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is a corporation or limited liability company.  That  
penalty shall be not more than $150,000, however the bill  
specifically states that in determining the amount of fine  
to impose, the court shall consider all relevant  
circumstances including the nature, circumstance, extent  
and gravity of the violation, any prior history of  
violations and the ability of the defendant to pay.

  Existing law  provides that battery is any willful and  
unlawful use of force or violence upon the person of  
another. (Penal Code 242)

  Existing law  provides that when a battery is committed  
against any person and serious bodily injury is inflicted  
on the person it is an alternate misdemeanor/felony  
"wobbler" punishable by imprisonment in the county jail up  
to one year or in state prison for 2, 3, or 4 years. (Penal  
Code 243(d))

  Existing law  provides that manslaughter is the unlawful  
killing of a human being without malice. (Penal Code 192)

  Existing law  provides that manslaughter is involuntary when  
committed in the commission of an unlawful act, not  
amounting to a felony; or in the commission of a lawful act  
which might produce death, in an unlawful manner, or  
without due caution and circumspection. (Penal Code  
192(b))

  Existing law  provides that involuntary manslaughter is a  
felony punishable by imprisonment in state prison for 2, 3,  
or 4 years. (Penal Code 193(b))

  Existing law  provides that any employer, and every employee  
having direction, management, control, or custody of any  
employment, place of employment or other employee, who  
willfully violates any occupational safety or health  
standard, order or special order, or Section 25910 of the  
Health and Safety Code, and that violation caused death to  
any employee, or caused permanent or prolonged impairment  




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of the body of any person is guilty of a misdemeanor  
punishable by up to 6 months in jail and/or a fine not to  
exceed $70,000.  If the conviction is for a violation  
committed after a first conviction punishment shall be by a  
$35,000-$70,000 fine and/ up to one year in jail. (Labor  
Code 6425)

  This bill  makes the above offense a "wobbler" for a first  
offense punishable by either one year in county jail and/or  
a fine not exceeding $100,000, or, 16 months, 2 or 3 years  
and/or a fine of not more than $250,000 for a first  
offense.

  This bill  makes it a felony when the person has a prior  
conviction for Labor Code 6423 which shall be punishable  
by 16 months, 2 or 3 years and/or a fine not exceeding  
$250,000.

  This bill  makes it a felony when the person has a second  
violation of the same offense which shall be punishable by  
2, 3 or 4 years and/or a fine not exceeding $250,000.

  This bill  also creates a separate penalty for a corporation  
or a limited liability company for the above offense.  This  
bill provides that a first offense by a corporation is  
punishable by a not less than $2,000,000; a second offense  
when the prior was Labor Code 6423 is punishable by a fine  
of $500,000 to $3,000,000 and a second offense when the  
prior offense is for the same violation is punishable by  
$1,000,000 to $4,000,000. 

  This bill  specifically provides that the court shall  
consider the gravity of the offense, any prior history of  
violations, and the defendant's ability to pay when  
considering the amount of the fine.

  Existing law  prohibits and regulates the use and removal of  
asbestos. (Health and Safety Code 25910)

  Existing law  provides that any employer who violates any  




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occupational safety or health standard, order, or special  
order, or Section 25910 of the Health and Safety Code; and  
the violation is specifically not determined to be serious  
in nature, may be assessed a civil penalty of up to $7,000  
for each violation. (Labor Code 6427)

  This bill  adds a violation of "any provision of this  
Division related to health or safety of employees" to the  
above provision and subjects those violations to the up to  
$7,000 civil penalties. 

  Existing law  provides any employer who commits a serious  
violation of any occupational safety or health standard,  
order, special order, or Section 25910 of the Health and  
Safety Code shall be assessed a civil penalty of up to  
$7,000 for each violation and that the violation should not  
be reduced under specified provisions if the employer does  
not have an operative injury prevention program. (Labor  
Code 6428)

  This bill  adds a violation of "any provision of this  
Division related to health or safety of employees" to the  
above provision and increases the penalties to up to  
$25,000.

  Existing law  provides any employer who willfully or  
repeatedly violates any occupational safety or health  
standard, order, or special order or Section 25910 of the  
Health and Safety Code, may be assessed a civil penalty of  
$5,000-$70,000. (Labor Code 6429)

  This bill  adds a violation of "any provision of this  
Division related to health or safety of employees" to the  
above provision; keeps existing penalties; provides any  
repeatedly violates any of the things listed above shall  
not receive any adjustment to the fine; provides that any  
past similar violation by any employer occurring anywhere  
within the state within the previous five years shall be  
used to establish the current violation is a repeat  
violation; and provides that the division shall preserve  




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and maintain records of its investigations and inspections  
and citations for a period of not less than seven years.

  Existing law  provides that any employer who fails to  
correct a violation of any occupational safety or health  
standard, order, or special order, or Section 25910 of the  
Health and Safety Code, within the period permitted for its  
correction shall be assessed a civil penalty of not more  
than $7,000 for each day a violation occurs. (Labor Code  
6430(a))

 Existing law  provides that notwithstanding the above, any  
employer who submits a signed statement affirming  
compliance with the abatement terms and is found upon  
inspection not to have abated the violation, any adjustment  
to the civil penalty based on abatement shall be rescinded  
and the additional civil penalty assessed for failure to  
abate shall not be adjusted for good faith of the employer  
or history of previous violations. (Labor Code 6430(b)

  This bill adds a violation of "any provision of this  
Division related to health or safety of employees" to  
6430; and provides that notwithstanding 6430(a) any  
employer who submits a signed statement affirming  
compliance with the abatement terms and is found not to  
have abated the violation is punishable by a misdemeanor  
punishable by up to one year in jail and/ or a fine up to  
$100,000 and if the defendant is a corporation or limited  
liability company the fine shall be $100,000-$1,000,000.

  Existing law  provides that a "serious violation" shall be  
deemed to exist in a place of employment if there is a  
substantial probability that death or serious physical harm  
could result from a serious exposure exceeding the  
permissible exposure limit or a condition which exists, or  
from one or more practices, means, methods, operations, or  
processes which have been adopted or are in use, in the  
place of employment unless the employer did not, and could  
not with the exercise of reasonable diligence, know of the  
presence of the violation. (Labor Code 6432(a))




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This bill  provides instead that a "serious violation" shall  
be deemed to exist in a place of employment if either of  
the following conditions exist:

 There is a substantial probability that death or serious  
  physical harm could result from a violation including but  
  not limited to circumstances where there is a substantial  
  probability that either of the following could result in  
  death or great bodily injury:  an exposure exceeding an  
  established permissible limit; the existence of one or  
  more practices means, methods, operations, or processes  
  which have been adopted or are in use, in the place of  
  employment.
 The violation results in occupational injuries or  
  illnesses that are indicative of a condition that may  
  result in serious harm.

  Existing law  provides that every employer shall furnish a  
safe and healthful place of employment. (Labor Code 6400)

  Existing regulations  include in the definition of employer  
for the purposes of civil penalties a multiemployer place  
of employment who with respect to any other employee either  
exposes the employee to a danger; creates a hazard; is  
responsible for the safety and health conditions of the  
workplace, either through practice or contract; or is  
responsible for correction a hazard. 

  This bill  codifies the above regulation.

  Existing law  provides that "substantial probability" refers  
not to the probability that an accident or exposure will  
occur as a result of the violation but rather to the  
probability that death or serious physical harm will result  
assuming an accident or exposure occurs as a result of the  
violation. (Labor Code 6432(b))

  Existing law  provides that any person who believes that he  
or she has been discharged or discriminated against in  




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violation of the Labor Code may file a complaint with the  
Labor Commissioner within 30 days of the violation. (Labor  
Code 98.7)

  This bill  extends that time limitation to one year.

  Existing law  provides that it is the intent of the  
Legislature that the provisions of this division shall be  
applicable to the proceedings against employers pursuant to  
the provisions of Chapter 3 and Chapter 4 of this division  
for the exclusive purpose of maintaining and enforcing  
employee safety.  Existing law also exempts any part of the  
division from consideration in, admissibility into, or  
evidence in any person injury or wrongful death action  
except between an employee and his own employer. (Labor  
Code 6304.5)

  This bill  changes the Legislative intent to include a  
reference to the occupational safety and health standards  
and orders promulgated under the Labor Code and changes the  
admissibility rules to allow the admission of this division  
and the occupational safety and health standards and orders  
promulgated under the Labor Code to be admitted into  
evidence in a personal injury or wrongful death action and  
provides that the issuance or failure to issue a citation  
by the division not be admissible in those actions.

 Existing law  provides that in enforcing occupational safety  
and health standards and orders and special orders the  
Division of Occupational Safety and Health may do specified  
things including "require the performance of any other act  
which the protection of the life and safety of the  
employees in employments and places of employment  
reasonably demands." (Labor Code 6308)

  This bill  changes that language to read "require the  
performance of any other act that is reasonably necessary  
for the protection of the life and safety of the employees  
in employments and places of employment.





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  Existing law  provides that if the Division of Occupational  
Safety and Health learns or has reason to believe that any  
place of employment is not safe or is injurious to the  
welfare of any employee, it may on its own motion summarily  
investigate that place with or without notice of hearings.  
(Labor Code 6309)

  Existing law  provides that if the Division of Occupational  
Safety and Health gets a complaint from an employee, the  
employee's representative or an employer of an employee  
directly involved in an unsafe place of employment, it  
shall with or without notice of hearing investigate the  
complaint within 3 days of a serious complaint and within  
14 days of a non-serious complaint. (Labor Code 6309)

  This bill  defines employee's representative for the  
purposes of the complaint initiating an investigation as  
"an attorney, health or safety professional, union  
representative, or representative of a government agency."   


  This bill  also provides that inspection resources shall be  
allocated to respond first to those situations in which  
time is of the essence.

 Existing law  provides that if the Division of Occupational  
Safety and Health determines that the condition of any  
employment, or place of employment or the operation of any  
machine, device, apparatus or equipment constitutes a  
serious menace to the lives or safety of persons it may  
apply to the superior court in the county in which such  
place of employment, machine, device, apparatus, or  
equipment is situated for an injunction restraining the  
operation. (Penal Code 6323)

  This bill  limits the jurisdiction to the place where the  
employment or employee is situated.

  Existing law  provides that an application to the superior  
court and the accompanying affidavit for the injunction in  




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6323, described above, must show that the use or operation  
constitutes a menace to the life and safety of any person  
employed thereabout. It also provides that no bond is  
required from the Division of Occupational Safety and  
Health as a prerequisite for granting a restraining order.  
(Labor Code 6324)

  This bill  provides instead that the affidavit must show  
that either that the operation constitutes a menace or is  
likely to cause death, serious injury or illness, or  
serious exposure to an employee.  It also extend the "no  
bond" provision to any other state or local prosecutor.

 Existing law  provides that when in the opinion of the  
Division of Occupational Safety and Health a place of  
employment, machine, device, apparatus, or equipment or any  
part thereof is in a dangerous condition, is not properly  
guarded, or is dangerously placed so as to constitute an  
imminent hazard to employees, its use can be prohibited by  
the division and a conspicuous notice to the effect  
attached.  Such notice shall not be removed except by an  
authorized representative of the division nor until it is  
made safe and required safeguards or safety appliances or  
devices are provided. (Labor Code 6325)

  This bill provides that the Division of Occupational Safety  
and Health may prohibit the use if it is likely to cause  
death, serious injury or illness or serious exposure to an  
employee as well as if it is an imminent hazard.  It also  
makes other technical changes to that section.
  
Under existing law  the appeal of an alleged violation  
suspends the running of the period of abatement.

  This bill creates a new section providing that if the  
Division of Occupational Safety and Health determines that  
an alleged violation is serious and presents such a  
substantial risk to the safety or health of employees that  
the initiation of an appeal by the employer should not  
suspend the running of the period for the abatement of that  




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violation the citation issued shall include a statement of  
that determination.  If a citation contains such a  
statement then at the time of filing for appeal the  
employer may file a motion requesting the running for the  
period of abatement be suspended during the appeal. This  
bill makes it clear that the burden is on the Division to  
establish that an abatement shall occur.  

The bill provides that a hearing on that motion shall be  
conducted within 15 days of filing the motion and sets up  
factors to consider in deciding the motion.  The bill also  
provides that appeals for citations in these situations  
shall have priority.

  This bill  contains language stating that the Legislature  
reaffirms its concerns over the prevalence of repetitive  
motion injuries.


                          COMMENTS

1.  Need for the Bill  

According to the author:

    On Monday, June 8th, an employee of a  
    building-materials company in Southern California  
    was killed when he was sucked into a sand hopper,  
    buried and suffocated.  While the investigation of  
    this latest workplace fatality has just begun, it  
    appears to be similar to a case described by the  
    representative of the Los Angeles District Attorney  
    in support of this measure.

    From the district attorneys, Cal/OSHA officials,  
    and the Labor community, we have learned about a  
    series of horrifying and preventable accidents  
    where workers have been suffocated, crushed, or  
    burnt to death in California following willful  
    safety violations.




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    The vast majority of California's employers follow  
    the law, and work hard to maintain safe and healthy  
    workplaces.  There are a handful of employers,  
    however, who don't.  For those employers, there is  
    no adequate penalty on the books.  A willful safety  
    violation causing death or permanent injury of a  
    worker in this state is a misdemeanor with a  
    maximum penalty of $70,000.   There are greater  
    penalties under pollution laws for discharges that  
    threaten wildlife, than for safety violations will  
    kill or maim workers.  

2.   Increases in Criminal Penalties  

    a. Violating any standard

    Existing law creates a misdemeanor with a penalty of up  
    to 6 months in jail and/or a fine up to $5,000 for  
    repeatedly violating any standard order, special order,  
    etc. or for failing or refusing to comply with any  
    standard order, special order, etc. when the refusal  
    creates a real hazard for employees or for inducing  
    another to do the above. 

    This bill increases the penalty for these offenses to  
    up to one year in the county jail and/or $15,000.

    This bill also provides for a separate penalty if the  
    violator is a corporation or limited liability company  
    providing for a fine of not more than $150,000 but also  
    states that in imposing the fine the court shall  
    consider the circumstances of the injury, whether prior  
    violations exist and the ability of the defendant to  
    pay.

    should the criminal penalties for REPEATEDLY VIOLATING  
    an order from the division of occupational Safety and  
    Health or for refusing to comply with an order when  
    such failure creates a real or apparent hazard be  




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    increased?

    b. Violation causing death or permanent or prolonged  
    impairment

    Existing law creates a misdemeanor punishable by up to  
    6 months in jail and or a fine not to exceed $70,000  
    for any employer having direction, management, control  
    or custody of any place of employment, etc. who  
    willfully violates any occupational safety or health  
    standard etc and that violation caused death or caused  
    permanent or prolonged impairment of the body of a  
    person.  Existing law provides that a second violation  
    is punishable by up to one year in jail and/or a fine  
    of $35,000-$70,000.

    This bill makes the above offense a "wobbler"  
    punishable by either one year in county jail and/or a  
    fine up to $100,000 or by 16 months, 2 or 3 years in  
    prison and/or a fine up to $250,000.  

    This bill creates a separate penalty for a corporation  
    or a limited liability company providing for a fine of  
    not more than $2,000,000 for a first offense. 

    The bill provides that a second offense within seven  
    years of a conviction for a violation of any standard  
    creating a hazard which did not cause an actual injury  
    is a felony punishable by 16 month, 2 or 3 years and a  
                                         fine not exceeding $250,000.  If the defendant is a  
    corporation or a limited liability company, the fine  
    shall be between $500,000 and not more than $3,000,000.

    A second offense with a prior conviction for a  
    violation where there was an injury or death it would  
    be a straight felony punishable by 16, months, 2 or 3  
    years and/or a fine up to $250,000 and the penalty for  
    a corporation would be a fine of $1,000,000 to  
    $4,000,000 for a second offense.





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    This section also contains a provision requiring the  
    court to consider the extent of the injury, past  
    violations and the ability of the defendant to pay.

    Willfully, by reference to the Penal Code, when applied  
    to the intent with which an act is done or omitted,  
    implies simply a purpose or willingness to commit the  
    act or make the omission referred to.  It does not  
    require any intent to violate law, or to injury  
    another, or to acquire any advantage.

    By way of comparison, the penalty battery with serious  
    bodily injury is "wobbler" punishable by one year in  
    county jail or 2, 3 or 4 years in state prison.   
    Battery also requires a willful act and the injury  
    required is a lesser on than the one required in this  
    bill and could include loss of consciousness (no matter  
    how brief), a bone fracture or a wound requiring  
    numerous stitches.  The penalty for involuntary  
    manslaughter is a straight felony punishable by  
    imprisonment in state prison for 2, 3, or 4 years.

    Other white collar crime penalties include:  Water Code  
    Section 1387(d)(1) which provides that waste discharge  
    which merely threatens to cause injury or death is a  
    felony punishable up to 15 years and a $1,000,000 fine;  
    Health and Safety Code Section 25189.6 provides that  
    disposal of waste which creates a risk of death or  
    great bodily injury punishable by up to 9 years in  
    state prison and a fine of $250,000 per day; Finance  
    Code Sections 5305-5310 provide that false financial  
    statement and other financial misconduct by saving and  
    loan executives is a felony punished by 2, 3, or 4  
    years in state prison and fines between $1,000,000 and  
    $5,000,000.

    SHOULD THE PENALTY FOR AN EMPLOYER WHO WILLFULLY  
    VIOLATES A SAFETY STANDARD WHICH CAUSES THE DEATH OF OR  
    PERMANENT OR PROLONGED INJURY TO AN EMPLOYEE BE  
    INCREASED FROM A MISDEMEANOR TO A "WOBBLER?"




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    SHOULD THE PENALTY FOR AN EMPLOYER WHO COMMITS A SECOND  
    WILLFUL VIOLATION OF A SAFETY STANDARD WHICH CAUSES THE  
    DEATH OF OR PERMANENT OR PROLONGED INJURY TO AN  
    EMPLOYEE BE INCREASED FROM A MISDEMEANOR TO A STRAIGHT  
    FELONY?

    c. "Three-Strikes"

    Some of the opposition argues that these penalties  
    shall be exempted from "three-strikes" and express  
    concern that some of their employees who are in  
    management positions may have prior convictions that  
    would constitute strikes.

    In 1997 when this Committee heard AB 1015 (Knox) which  
    added a "wobbler" for a willful violation of a health  
    and safety standard which caused death this Committee  
    chose not to put in a "three-strikes" exemption because  
    it was determined that because the violation resulted  
    in death it was a "serious" felony.

    SHOULD A "THREE-STRIKES" EXEMPTION BE ADDED TO This  
    BILL OR DOES THE FACT THAT THE ACT MUST CAUSE DEATH OR  
    PERMANENT OR PROLONGED INJURY MAKE This FELONY A  
    "VIOLENT" ONE?

    d. Stating that abatement occurred but failing to  
    actually abate

    Existing law provides for civil penalties for failing  
    to correct a violation of any OSHA standard, order,  
    etc. and provide that when an employer submits a signed  
    statement affirming compliance with abatement terms  
    when it is later discovered that the situation was not  
    abated specified adjustments to the fine shall not be  
    made. (For a discussion of adjustments, see comment #3)

    This bill adds criminal penalties for signing a  
    statement affirming compliance but actually failing to  




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    comply.  The penalties are up to one year in jail  
    and/or a fine up to $100,000 and if the defendant is a  
    corporation or limited liability company the fine shall  
    be $100,000-$1,000,000.

    SHOULD IT BE A MISDEMEANOR FOR AN EMPLOYER TO SIGN A  
    STATEMENT AFFIRMING COMPLIANCE WITH AN ORDER TO CORRECT  
    AN OSHA VIOLATION BUT NOT ACTUALLY COMPLYING WITH THE  
    ORDER?

    e. Higher fines for corporations.

    Some of the opposition to this bill believes it is  
    inequitable to have the separate high fines for  
    corporations. 

    The California Beer and Beverage Distributors state  
    "the $4 million fine for corporations . . . is  
    unreasonable for family-owned corporations to be  
    subject to. Corporations should be treated the same as  
    other businesses or some distinction made for  
    family-owned corporations."  

    The Wine Institute states, "the bill's higher tier of  
    penalties against corporations establishes an unlevel  
    playing field for the vast majority of wineries who are  
    family-owned corporations compared to the fewer in  
    partnerships."

    The proponents of this bill note that a business is  
    incorporated, in part, to limit the individual  
    shareholders' personal liability.  Because of its  
    corporate status a corporation would avoid the other  
    jail or prison penalties in the bill because a  
    "corporation" can not serve time in one of these  
    facilities.  Thus, this bill provides higher monetary  
    penalties to adjust, not only for the need to find a  
    fine that would "punish" a corporation, but also for  
    the fact that jail and prison time can not be imposed. 





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    In general, criminal penalties are imposed with a  
    consideration of ability to pay and this bill  
    specifically provides that in the interest of justice  
    the court may impose a fine lower than the minimum.   
    This essentially sets up the fine levels as suggested  
    fines but gives the court broad discretion to impose an  
    appropriate fine.  Thus, for example, a court would be  
    unlikely to impose a fine that would exceed the  
    corporation's net earnings in past years.

    ARE THE SEPARATE FINE ONLY PENALTIES FOR CORPORATIONS  
    AND LIMITED LIABILITY COMPANIES APPROPRIATE?

3.   Civil Penalties  

    a. Violation of occupational safety or health standard  
    or order - not serious

    Existing law provides that any employer who violates  
    any occupational safety or health standard, order, etc.  
    and the violation is specifically not determined to be  
    serious in nature, may be assessed a civil penalty up  
    to $7,000.

    This bill keeps the same fine but expands the above to  
    include "any provision of this division related to the  
    health or safety of employees."

    There was a discussion at the Public Safety Committee  
    hearing on July 6 to modify "provision" with  
    "statutory," but Legislative Counsel has informed the  
    author that "provision" does mean "statute" and since  
    that is the only possible definition, such a  
    modification would only lead to confusion in other  
    parts of the code.

    b. Violation of occupational safety or health standard  
    or order - serious

    Existing law provides that any employer who commits a  




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    serious violation of any occupational safety or health  
    standard, order, etc. may be assessed a civil penalty  
    up to $7,000 and that the fine should not be reduced  
    under specified provisions if the employer does not  
    have an operative injury prevention program.

    This bill adds a violation of "any provision of this  
    Division related to health or safety of employees" to  
    the above provision and increases the penalties to up  
    to $25,000.

    c. Willful or repeated violations of standards

    Existing law provides that any employer who willfully  
    or repeatedly violates any occupational safety or heath  
    standard, order, etc. may be assessed a civil penalty  
    of $5,000-$7,000.

    This bill keeps the existing penalties but provides  
    that the fines should not be adjusted.  It also  
    provides that any past violation anywhere within the  
    state within the previous five years shall be used to  
    establish the current violation.

    Opponents object to the expansion of repeat violations  
    to include violations anywhere within the state within  
    the previous five years and argue that the employer  
    should only be held responsible if the violation occurs  
    in the same location.  One concern is that as  
    businesses combine, businesses could be liable for  
    violations occurring at previously unaffiliated  
    companies.  Another argument is that two citations in a  
    five-year period is unreasonable because the violations  
    could be minor.

    Proponents note that under existing law a company could  
    be cited committing the same safety violation at  
    multiple locations, even if the violation is one that  
    could have caused serious injury, that company could  
    not be cited for repeat violations.




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    SHOULD TWO OR MORE REPEAT VIOLATIONS, EVEN AT DIFFERENT  
    FACILITIES, COUNT AS REPEAT VIOLATIONS FOR PENALTY  
    PURPOSES IF THEY OCCUR WITHIN FIVE YEARS?

    SHOULD THE REPEAT VIOLATIONS BE LIMITED TO SERIOUS  
    VIOLATIONS OR MORE THAN TWO VIOLATIONS IF THEY ARE NOT  
    SERIOUS?

    d. Standard required penalty reductions

    The author, sponsors and supporters of this bill point  
    out that Cal/OSHA regulations provide for specified  
    penalty reductions to civil fines that will not be  
    changed by this bill.  First it is determined whether a  
    violation was regulatory, general, serious, repeat or  
    willful.  Then an initial base penalty is determined.   
    Then the initial base penalty is adjusted up or down by  
    up to 50% based on the size of the crew and the  
    likelihood of the injury.  Then adjustments are made  
    based on the size of the employer, good faith of the  
    employer, and the history of previous violations.  An  
    additional abatement credit of 50% is applied on the  
    presumption that an employer will abate the situation. 

    The author included in his background examples of OSHA  
    inspector worksheets which resulted in an initial  
    $1,000 fine being adjusted so that the final fine was  
    $50 based on these mandatory adjustments.

4.  Definition Changes Made by This Bill  

    a. Serious violation

    Under existing law, "serious violation" shall be deemed  
    to exist in a place of employment if there is a  
    substantial probability that death or serious physical  
    harm could result from a serious exposure exceeding the  
    permissible exposure limit or a condition which exists,  
    or from one or more practices, means, methods,  




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    operations, or processes which have been adopted or are  
    in use, in the place of employment unless the employer  
    did not, and could not with the exercise of reasonable  
    diligence, know of the presence of the violation.  
     
     This bill provides instead that a "serious violation"  
    shall be deemed to exist in a place of employment if  
    any of the following conditions exist:

       There is a substantial probability that death or  
     serious physical harm could result from a violation  
     including but not limited to circumstances where there  
     is a substantial probability that either of the  
     following could result in death or great bodily  
     injury:  an exposure exceeding an established  
     permissible limit; the existence of one or more  
     practices means, methods, operations, or processes  
     which have been adopted or are in use, in the place of  
     employment.

        The violation results in occupational injuries or  
     illnesses that are indicative of a condition that may  
     result in serious harm.

    Opponents are concerned about this revised definition  
    of "serious violation."  For example the California  
    Beer and Beverage Distributors assert:  "A single  
    exposure in excess of a permissible exposure limit may  
    pose no harm . . . "

    However, the proponents point out that under the  
    proposed definition the "single exposure" must have a  
    "substantial probability that death or serious physical  
    harm could result from" the exposure, thus if the  
    single exposure poses no harm then it would not be a  
    "serious violation" under this new definition.
     
    b. Employer

    Opposition has expressed concern that the definition of  




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    "employer" in this bill would create vicarious  
    liability for the action of a subcontractor.

    The definition of employer in this bill includes  
    "multiemployer" which is an employer who, with respect  
    to any other employee at the place of employment does  
    any of the following:

        Employs the exposed employee.
        Creates the hazard.
        Is primarily responsible, by contract or through  
      practice, for safety and health conditions that  
      resulted in the hazard.
        Is responsible for correcting the hazard.

    The author points out that the above definition already  
    exists in OSHA regulations. It was a regulation that  
    the Federal Government required OSHA to implement to be  
    in compliance with minimum standards.  The Federal  
    policy has recently been upheld as valid.

    The definition in its wording does not create vicarious  
    liability, it instead requires that if you are  
    responsible for a hazard or the safety of the workplace  
    you are responsible regardless of who the employee is.   
    Thus, under existing statute, when a employer has  
    subcontractor employees working at the same site and  
    the employer is responsible for the safety at that  
    site, if a subcontractor is injured because of a hazard  
    created by the employer, the employer can not be cited.  
     This bill would allow such an employer to be cited.

    SHOULD AN EMPLOYER WHO IS RESPONSIBLE FOR THE SAFETY OF  
    A WORKPLACE BE RESPONSIBLE FOR AN INJURY OR DEATH  
    REGARDLESS OF WHO THE EMPLOYEE IS?

    SHOULD EXISTING REGULATIONS DEFINING EMPLOYER TO  
    INCLUDE MULTIEMPLOYER BE CODIFIED?

    c. Substantial Probability




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    Substantial Probability refers not to the probability  
    that an accident or exposure will occur as a result of  
    the violation but rather to the probability that death  
    or serious physical harm will result assuming an  
    accident or exposure occurs as a result of the  
    violation.

    This bill adds the following to that definition:  A  
    substantial probability of serious injury also shall  
    exist if any single serious injury has been caused by  
    the violation.

5.  Other Provisions  

    a. Statute of limitations for complaints filed with  
    Labor Commissioner

    This bill changes the current 30 days statute of  
    limitations for filing a complaint because of wrongful  
    discharge or other discrimination with the Labor  
    Commissioner to allow the complaint to be filed within  
    one year.  According to the sponsors, this is  
    consistent with the time for filing of other types of  
    complaints, such as a discrimination complaint.

    b. Admissibility of OSHA regulations and statutes

    Existing law prohibits the admissibility of OSHA  
    regulations and statutes in personal injury or wrongful  
    death statute.  This is contrary to the usual rule of  
    admissibility of statutes and regulations in court  
    proceedings.  According to the proponents this rule of  
    inadmissibility was the result of a negotiation at the  
    time the OSHA statutes were originally enacted.

    This bill provides that OSHA standards, statutes and  
    orders are admissible in proceedings against employers.

    The opposition argues that this admissibility may make  




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    OSHA develop regulations based on litigation concerns  
    and not worker safety.

    c. Investigation of complaints

    Existing law provides that the Division of Occupational  
    Safety and Health must within a specified time frame  
    investigate complaints from an employee, the employee's  
    representative or an employer of an employee directly  
    involved in an unsafe place of employment.

    This bill expands the definition of "employee  
    representative" to include "an attorney, health and  
    safety professional, union representative, family  
    member, or representative of a government agency."

    The opposition is concerned about the expansion of this  
    definition for fear of meritless complaints which will  
    then have to be investigated.

    The proponents wanted the expansion because sometimes  
    more serious complaints get put behind less serious  
    complaints because of the deadlines.

    SHOULD THE DEFINITION OF EMPLOYMENT REPRESENTATIVE BE  
    EXPANDED? IF SO WOULD A MORE NARROW EXPANSION BE  
    APPROPRIATE?

    d. Injunctions

    Existing law provides that the jurisdiction for an  
    injunction sought by the Division of Occupational  
    Safety and Health is any place where the machine,  
    device, apparatus, equipment or employment is situated.

    This bill provides that the place for jurisdiction is  
    where the employment or employee is situated.

    Existing law allows the Division of Occupational Safety  
    and Health may seek an injunction against the use of a  




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    machine, device, apparatus, etc. if it constitutes a  
    serious menace to the lives or safety of persons.  The  
    law provides that no bond is required.

    This bill provides that the "no bond" provision also  
    applies to an injunction sought by the local district  
    attorney or the Attorney General.  The bill does not  
    however explicitly grant the authority to the district  
    attorney or the Attorney General to seek the bond.

    The Wine Institute is concerned about the expansion of  
    the "no bond" provision because "undue economic harm  
    could be inflicted on an employer of perishable farm  
    commodities if an error was made after the state or  
    local prosecutor was granted an immediate restraining  
    order."

    Under existing law a judge looks at economic hardship  
    to the party when granting a preliminary injunction.

    SHOULD This BILL CLEARLY SPECIFY THAT A JUDGE SHOULD  
    CONSIDER ECONOMIC HARDSHIP WHEN GRANTING A PRELIMINARY  
    INJUNCTION?

    e. Abatement

    This bill provides that when the Division of  
    Occupational Safety and Health determines an alleged  
    violation is serious and presents such a substantial  
    risk to the safety or health of employees that the  
    initiation of an appeal shall not suspend the running  
    of the period of abatement, it shall be noted on the  
    violation and then the a must be made for abatement by  
    the employer and gives an expedited hearing for that  
    motion.

6.   Support and Opposition  

Support:      California District Attorneys Association;  
        Amalgamated Transit Union Members Local 192;  




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        American Federation of State, County, and Municipal  
        Employees; Building Construction and Trades  
        Council; California Applicants' Attorneys  
        Association; California Conference Board of the  
        Amalgamated Transit Union; California Conference of  
        Machinists; California Independent Public Employees  
        Legislative Council; California Optometry  
        Association; California Professional Firefighters;  
        California School Employees Association; California  
        State Association of Electrical Workers; California  
        Teamsters Public Affairs Council; Consumer  
        Attorneys of California; Engineers and Scientists  
        of California, Local 20 IFTPE; Hotel Employees and  
        Restaurant Employees International Union;  
        International Association of Bridge, Structural,  
        Ornamental and Reinforcing Iron Workers;  
        International Longshoreman's and Warehouseman's  
        Union Local 63, Marine Clerks; Johan Klehs; Pile  
        Drivers Local 34; PRIO Corporation; Plumbers,  
        Steamfitters and Refrigeration Fitters U.A, Local  
        Union 393; Region 8 States Council of the United  
        Food and Commercial Workers Union; Southern  
        California District Council International  
        Longshoremen's and Warehousemen's Union; United  
        Union of Roofers, Waterproofers and Allied Workers;  
        Western States Council of Sheet Metal Workers;  
        WORKSAFE!

















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Opposition: California Chamber of Commerce; California  
        Manufacturers Association; California State  
        Association of Counties; Kern County Superintendent  
        of Schools; Fresno County Office of Education;  
        Accesio Products; American Electronics Association;  
        American Energy Operations, Inc.; Associated  
        General Contractors of California; Associated  
        General Contractors of San Diego; Associated  
        Builders and Contractors; Association of California  
        School Administrators; Brea Canon Oil Co., Inc.;  
        BreitBurn Energy Company; California Association of  
        Joint Powers Authorities; California Business  
        Properties Association; California Beer and  
        Beverage Distributors California Cast Metals  
        Association; California Drilling Fluids; California  
        Employment Law Council; California Farm Bureau  
        Federation; California Healthcare Association;  
        California Hotel and Motel Association; California  
        Grocers Association; California Industrial Hygiene  
        Council; California Lodging Industry Association;  
        California Mining Association; California Poultry  
        Industry Federation; California League of Food  
        Processors; California Poultry Industry Federation;  
        California Railroad Industry; California Restaurant  
        Association; California Retailers Association;  
        California School Boards Association; California  
        State Association of Counties; California Small  
        Business Association; California State Floral  
        Association; California Trucking Association; City  
        of Davis City Council; Dalton Trucking; Civil  
        Justice Association of California; Coalition for  
        Common Sense; Clorox Company; Commercial Transfer,  
        Inc.; Coalition for Common Sense; Commercial  
        Transfer, Inc.; Construction Employers'  
        Association; Construction Preliens & Paperwork;  
        Custom Plastics; Edward S. Cortez, Mayor of Pomona;  
        Ed Vance Company; Engineering Contractors'  
        Association; Engineering and Utility Contractors;  
        Fence Contractors Association; Flasher/Barricade  











                                         AB 1127 (Steinberg)
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        Association; Food Express, Inc.; Frank C. Alegre  
        Trucking, Inc.; Fresno County Office of Education;  
        Kern County Superintendent of Schools; K.K.W.  
        Trucking Inc.; Gary Olson Trucking, Inc.; Greater  
        San Diego Chamber of Commerce; Helix Electric,  
        Inc.; Latin Business Association; League of  
        California Cities; Marin Builders Exchange;  
        Meehleis Modular Buildings, Inc.; Mike Conrotto  
        Trucking; Motion Picture Association of America;  
        Mountain Cascade Inc.; National Federation of  
        Independent Business; Pacific Linen Service; New  
        United Motor Manufacturing, Inc.; Printing  
        Industries of California; Ray Stone, Inc.; Reliable  
        Trucking, Inc.; Research Consultants and Advocates;  
                                                            Roofing Contractors Association of California;  
        Ryder System, Inc.; Sacramento Builders' Exchange;  
        Small Manufacturers Association of California;  
        Sequoia Gas, Co.; South Bay Association Chambers of  
        Commerce; Swanson Farms; Textile Rental Services  
        Association of America; The Gate Guy; Tiger lines  
        Inc.; TRW Space and Electronics; Visalia Chamber of  
        Commerce; Warner-Lambert Co. Western Textile  
        Services Association; Western Growers Association;  
        Western States Petroleum Association; Wine  
        Institute; Woodwork Institute of California


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