BILL ANALYSIS �
AB 1106
Page 1
Date of Hearing: May 4, 2011
ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT
Sandre Swanson, Chair
AB 1106 (Achadjian) - As Amended: April 25, 2011
SUBJECT : Occupational safety and health: penalties.
SUMMARY : Authorizes 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)Authorizes 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 pursuant to
provisions of current law authorizing private rights of
action.
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) Administering the workers' compensation program.
b) Enforcing the requirement that employers maintain
workers' compensation insurance coverage.
AB 1106
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c) Paying for grants to assist in establishing
effective occupational injury and illness prevention
programs.
d) Collecting civil and administrative penalties
against specified educational entities and refunding
civil penalty moneys to these entities when all the
conditions have been abated.
EXISTING LAW :
1)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).
2)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
violation at the same school within two years.
3)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.
4)Establishes a similar refund mechanism for workplace safety
penalties imposed against public police departments, fire
departments, and the California Department of Forestry and
Fire Protection
AB 1106
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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 : Unknown
COMMENTS : The California Occupational Safety and Health Act of
1973 was enacted by the Legislature to ensure safe and healthy
conditions for working people in California. The Division of
Occupational Safety and Health (DOSH) was created to enforce
effective standards, assist and encourage safe and healthy
working conditions, and to provide for research, information and
training in the field of occupational safety and health.
Prior to 2000, the Labor Code contained a statutory exemption
for governmental entities from the imposition of DOSH civil
penalties. However, AB 1127 (Steinberg), Chapter # 615,
Statutes of 1999, repealed that exemption, thereby treating
governmental entities the same as private employers for purposes
of DOSH penalties.
AB 1127 also contained a limited carve-out for specified
educational entities and institutions. Under that provision,
educational entities may apply for a refund of DOSH penalties if
the previously cited condition has been abated, any other
outstanding citations have been abated, and there have been no
citations for serious violations for a period of two years.
In 2005, AB 186 (Bogh) authorized a similar refund mechanism for
police departments, fire departments, and the State Department
of Forestry and Fire Protection.
ARGUMENTS IN 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 dosh. This bill would
permit local governmental entities to obtain a rebate of dosh
civil fines, as long as the same conditions are met by the
entities that are currently exempted (i.e., educational entities
and law enforcement).
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The author cites DIR data to point out that schools have been
subject to $192,000 in DOSH 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, local
public entities have been fined $534,155, but have not been
eligible for a rebate of their DOSH fines, even though the
conditions that caused the citations have been remedied.
REGISTERED SUPPORT / OPPOSITION :
Support
ALPHA Fund
California Association of Joint Powers Authorities (Co-Sponsor)
California Special Districts Association
CSAC Excess Insurance Authority (Co-Sponsor)
Regional Council of Rural Counties
Opposition
None on file.
Analysis Prepared by : Ben Ebbink / L. & E. / (916) 319-2091