BILL ANALYSIS �
AB 1106
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Date of Hearing: April 13, 2011
ASSEMBLY COMMITTEE ON INSURANCE
Jose Solorio, Chair
AB 1106 (Achadjian) - As Amended: March 25, 2011
SUBJECT : Occupational safety and health: penalty moneys and
grants
SUMMARY : Allows local public entities such as cities,
counties, and special districts to apply for a refund of civil
penalties assessed for violations of occupational safety and
health laws if the conditions have been corrected.
Specifically, this bill :
1)Allows a county, city, special district, public authority,
public agency, and a joint powers authority to apply for a
refund of their civil penalty assessed for violating
occupational safety and health laws and orders if all
conditions previously cited have been abated, they have abated
any other outstanding citation, and they have not been cited
for a serious violation at the same agency within two years of
the original violation.
2)Provides that if a local public entity does not apply for a
refund of its civil penalties within two years and six months
of the original violation, the funds shall be expended by
making available grants to assist "local public entities" in
establishing and maintaining effective occupational injury and
illness prevention programs.
3)Provides that these refunds of civil penalties do not apply to
the portion of any civil or administrative penalty which is
distributed directly to an aggrieved employee due to numerous
specified reasons including, but not limited to, loss of wages
for lawful conduct during nonworking hours away from the
employer's premises, the filing of a complaint or claim, or
the failure to receive wages earned and due.
4)Requires the Department of Industrial Relations (DIR) to
expend moneys in the Workers' Compensation Administration
Revolving Fund, a special account in the State Treasury, for
the following purposes:
a) Administer the workers' compensation program.
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b) Enforce the requirement that employers maintain
workers' compensation insurance coverage.
c) Pay for grants to assist in establishing effective
occupational injury and illness prevention programs.
d) Collect civil and administrative penalties against
specified educational entities and to refund civil
penalty moneys to these entities when all the conditions
have been abated.
EXISTING LAW :
1)Requires the director of DIR to levy a surcharge upon all
employers (i.e., every person, corporation, or association
that employs another person, all state agencies, all local
public agencies, and all public and quasi public corporations)
for deposit into four funds, one of which is the Workers'
Compensation Administration Revolving Fund. The total amount
of the surcharges is allocated between self-insured employers
and insured employers in proportion to payroll respectively
paid in the most recent year for which payroll information is
available.
2)Provides that civil and administrative penalties assessed for
violating occupational safety and health laws and orders
against a school district, county board of education, county
superintendent of schools, charter school, community college
district, California State University, University of
California, or joint powers agency performing education
functions shall be deposited with the "Workplace Health and
Safety Revolving Fund" (incorrect name cited in one instance
and corrected in the bill as the Workers' Compensation
Administration Revolving Fund).
3)Specifies that these educational entities may apply for a
refund of their civil penalties if all conditions previously
cited have been abated, they have abated any other outstanding
citation, and if they have not been cited for a serious
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violation at the same school within two years.
4)Provides that if an educational entity does not apply for a
refund of its civil penalties within two years and six months
of the original violation, the funds shall be expended by
making available grants to assist schools in establishing
effective occupational injury and illness prevention programs.
5)Permits the DIR to expend moneys in the Workers' Compensation
Administration Revolving Fund for the following purposes:
a) Administer the workers' compensation program.
b) Enforce the requirement that employers maintain
workers' compensation insurance coverage.
FISCAL EFFECT : Undetermined.
COMMENTS :
1)Background. Prior to 1999, state law did not authorize the
Division of Occupational Safety and Health (Cal OSHA) to levy
civil fines on local government agencies. In 1999, AB 1127
(Steinberg) (Chapter 615, Statutes of 1999) provided Cal OSHA
with that authority. That law also allows school districts,
county boards of education, community college districts, the
CSU, and the UC system to apply for a refund of Cal OSHA civil
penalties if certain conditions are met. In 2005, AB 186
(Bogh) (Chapter 141, Statutes of 2005) authorized a similar
refund mechanism for police departments, fire departments, and
the State Department of Forestry and Fire Protection.
2)Support. The author and supporters state that this bill
addresses the inequitable policy that permits only some
governmental entities to obtain a rebate of civil fines paid
to Cal OSHA. This bill would permit local governmental
entities to obtain a rebate of Cal OSHA civil fines, as long
as the same conditions are met by the entities that are
currently exempted (i.e., educational entities).
The author cites DIR data to point out that schools have been
subject to $192,000 in Cal OSHA fines between 2007 and 2010,
and have received $122,879 in rebates during this time period.
The author cites data from the California State Association
of Counties (CSAC) that indicates that between 2008 and 2010,
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local public entities have been fined $534,155, but have not
been eligible for a rebate of their Cal OSHA fines, even
though the conditions that caused the citations have been
remedied.
3)Technical amendment . This bill replaces the word "schools"
with the phrase "local public entities" in the section that
determines which unclaimed funds are available to establish
occupational injury and prevention programs. Since the term
"local public entities" is not defined, it is not clear if
only the traditional local public agencies such as cities,
counties, and special districts would become eligible for
these prevention program, and schools would no longer be
eligible, or if both types of entities would be eligible. To
clarify this issue, the term "local public entities" can be
defined as specified in Section 940.3 of the Government Code
to ensure that educational entities as well as the newly added
local government entities are covered.
REGISTERED SUPPORT / OPPOSITION :
Support
California Association of Joint Powers Authorities
California Special Districts Association
CSAC Excess Insurance Authority
Regional Council of Rural Counties
Opposition
None received.
Analysis Prepared by : Manny Hernandez / INS. / (916) 319-2086