BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2387
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          Date of Hearing:   April 18, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                 AB 2387 (Smyth) - As Introduced:  February 24, 2012 

          Policy Committee:                              Labor and 
          Employment   Vote:                            6-0

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              No

           SUMMARY  

          This bill authorizes any county, city, special district, public 
          authority, public agency, or joint powers authority to apply for 
          a refund of civil penalties assessed, with interest, for 
          violations of occupational safety and health laws if the 
          conditions have been corrected. Specifically, this bill: 

          1)Authorizes local governments to apply for a refund of their 
            civil penalties assessed for occupational safety and health 
            law violations, if all conditions have been abated, they have 
            abated their outstanding citation, and they have not been 
            cited for serious violation within two years of the original 
            violation.   

          2)Requires, if violating entities do not apply for a refund of 
            the penalties assessed within two years and six months of the 
            original violation date, the proceeds of civil penalties 
            received by the entities specified above be available for 
            grants to local public entities to maintain effective 
            occupational injury and illness prevention programs.  

          3)Prohibits the refunds of civil penalties from applying to the 
            portion of any civil or administrative penalty distributed 
            directly to an aggrieved employee.

           FISCAL EFFECT  

          Loss of GF revenue, of at least $200,000, to the Department of 
          Industrial Relations to allow specified local government 
          entities to be refunded civil penalties assessed for violations 
          of occupational safety and health laws, provided specified 








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          conditions are met.  

           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.

           3)Previous legislation  .  AB 1106 (Achadjian), substantially 
            similar to this measure, was held on this committee's suspense 
            file in May 2011.  








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           Analysis Prepared by  :    Kimberly Rodriguez / APPR. / (916) 
          319-2081