BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2387
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          Date of Hearing:   March 28, 2012

                     ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT
                                Sandre Swanson, Chair
                 AB 2387 (Smyth) - As Introduced:  February 24, 2012
           
          SUBJECT  :   Occupational safety and health: penalties: grants.

           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.








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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

          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' 








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               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,) Chapter # 141, authorized a similar 
          refund mechanism for police departments, fire departments, and 
          the State Department of Forestry and Fire Protection.

          This bill is nearly identical to AB 1106 (Achadjian) of 2011, 
          which passed this Committee on consent, however it was 
          subsequently held under submission in Assembly Appropriations 
          Committee.
          The author and supporters of this bill believe this bill would 
          provide local entities with a history of good behavior with a 
          pathway to recoup costly civil penalties and put them to good 
          use at the local level.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Association of the Healthcare Districts
          California Association of Joint Powers Authorities








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          California Special Districts Association
          California State Association of Counties
          CSAC Excess Insurance Authority
          League of California Cities
          Regional Council of Rural Counties
          Solid Waste Association of North America

           Opposition 
           
          None on file.
           
          Analysis Prepared by  :    Lorie Alvarez / L. & E. / (916) 
          319-2091