BILL ANALYSIS
AB 1655
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 1655 (Hertzberg)
As Amended July 12, 1999
Majority vote
ASSEMBLY: 73-4 (May 24, 1999) SENATE: 22-17
(August 24, 1999)
Original Committee Reference: L. & E.
SUMMARY : Repeals the sunset of assessments to fund the
Cal/OSHA Targeted Inspection and Consultation Program (TICP).
Requires the Occupational Safety and Health Standards Board
(Board) to report to the Legislature not later than April 1,
2000, on the nature and extent of investigations conducted by
the Board pursuant to the procedure established in the Labor
Code for granting a variance from a safety or health standard.
The Senate amendments delete the sunset on assessments from
employers with elevated workers compensation claims, as
specified, to fund TICP.
EXISTING LAW :
1)Provides for a TICP in the Division of Occupational Safety and
Health (Division). The Division is required to identify the
employers with the highest incidence of preventable injuries
and illness and workers' compensation losses. The Division is
authorized to identify these employers using workers'
compensation and illness and injury data. The program is
designed to provide inspection and consultation services to
the highest hazard employers in the most hazardous industries
on a priority basis.
2)Authorizes the funding of TICP through an assessment on
employers with an experience modification (x-mod) of 1.25 or
greater and on private self-insured employers with an
"equivalent" x-mod. The authority to levy such assessments
sunsets on January 1, 2000.
3)Authorizes employers to apply to the Board for a permanent
variance from an occupational safety and health standard,
order, or special order upon a showing of an alternate
program, method, practice, means device, or process that will
provide equal or superior safety to employees.
AB 1655
Page 2
4)Provides for the Board to issue such variance if it determines
on the record, after opportunity for an investigation where
appropriate and a hearing that the proponent of the variance
has demonstrated by a preponderance of the evidence that the
specified standard is met.
AS PASSED BY THE ASSEMBLY , this bill required the Board to
report to the Legislature not later than April 1, 2000, on the
nature and extent of investigations conducted by the Board
pursuant to the procedure established in the Labor Code for
granting a variance from a safety or health standard.
FISCAL EFFECT : TICP collects an estimated $7 million in
assessment revenues annually. If the assessment authority
sunsets, this revenue and matching federal funds will be
unavailable for TICP. According to the Assembly Appropriations
Committee analysis, the Department of Industrial Relations would
incur minor, absorbable costs to prepare the required report.
COMMENTS : The proponents state that the targeted inspection
program is important in preventing workplace injuries and
illnesses because its focuses on the highest hazard employers in
the most hazardous industries. Some employers have argued that
this program should be funded through general funds, rather than
assessments.
The Board in recent years has granted numerous variance
applications and denied very few. This bill requires a report
concerning the investigations conducted by the Board during the
variance process.
Analysis Prepared by : Ralph Lightstone / L. & E. / (916)
319-2091
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