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 FN: 0002524