BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1106
                                                                  Page  1

          Date of Hearing:   May 18, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                  AB 1106 (Achadjian) - As Amended:  April 25, 2011 

          Policy Committee:                              InsuranceVote:12 
          - 0 
                       Labor and Employment                     6 - 0 

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              

           SUMMARY  

          This bill allows any county, city, special district, public 
          authority, public agency, or joint powers authority 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 local governments to apply for a refund of their civil 
            penalties 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 distributed 
            directly to an aggrieved employee.

           FISCAL EFFECT  

          Loss of GF likely in excess of $200,000 a year as this bill 
          requires civil penalties currently paid into the GF either be 
          returned to the local government that paid the penalty or used 








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          to provide grants to local entities to help them establish and 
          maintain injury prevention programs.

           COMMENTS  

           1)Purpose  . The author states that this bill addresses an 
            inequitable policy that permits only some governmental 
            entities to obtain a rebate of civil fines paid to the 
            Division of Occupational Health and Safety (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 and law enforcement).

          The author cites Department of Industrial Relations 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, 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.
           
          2)Background  . The Cal/OSHA Program is responsible for enforcing 
            California laws and regulations pertaining to workplace safety 
            and health and for providing assistance to employers and 
            workers about workplace safety and health issues.  AB 1127 
            (Steinberg; Chapter 615 of 1999, repealed the exemption for 
            governmental entities from the imposition of Cal/OSHA civil 
            penalties, thereby treating governmental entities the same as 
            private employers for purposes of Cal/OSHA penalties.  AB 1127 
            included a provision that permits educational entities to 
            apply for a refund of Cal/OSHA 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; Chapter 141, Statutes of 2005) 
            authorized a similar refund mechanism for police departments, 
            fire departments, and the State Department of Forestry and 
            Fire Protection.











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           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916) 
          319-2081