BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                          SB 829 (DeSaulnier)
          
          Hearing Date: 5/16/2011         Amended: 5/3/2011
          Consultant: Bob Franzoia        Policy Vote: L&IR 5-0
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          ____
          BILL SUMMARY: SB 829 would revise and recast various provisions 
          regarding citations issued by the Department of Industrial 
          Relations (department), the persons or entities who are 
          authorized to participate as a party in an appeal before the 
          Occupational Safety and Health Appeals Board (appeals board), 
          and the procedures that govern the appeals board in hearing and 
          deciding appeals. The bill also would make other related 
          clarifying and conforming changes. 
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          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2011-12      2012-13       2013-14     Fund
           Revision of employment Unknown, major costs annually, 
          ongoingSpecial*
          safety appeals process                                      

          * Occupational Safety and Health Fund 
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          ____

          STAFF COMMENTS: This bill meets the criteria for referral to the 
          Suspense File. 

          Existing law establishes the Division of Occupational Safety and 
          Health (division) in the department to enforce employment safety 
          laws.  Existing law authorizes the division to conduct hearings, 
          inspections, and investigations regarding alleged violations of 
          employment safety laws and to issue citations to employers. 
          Existing law establishes in the department, and prescribes 
          procedures for the appeals board to hear and decide employer 
          appeals of the division's enforcement actions.

          This bill makes numerous changes to the appeals process, as 
          follows:
          - Require the appeals board, in adjudicating appeals, to 
          liberally construe the provisions of the California Occupational 








          SB 829 (DeSaulnier)
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          Safety and Health Act of 1973, as well as standards and orders 
          adopted by the department, the division and the Occupational 
          Safety and Health Standards Board.
          - Expand to include a party and any affected person who may seek 
          judicial review of an appeals board decision regardless of 
          whether he or she participated in the appeal to the appeals 
          board or the hearing officer.
          - Require, in adjudicating appeals, the appeals board be subject 
          to and shall apply the rules and regulations adopted by the 
          department, and not the board, for the purposes of enforcing 
          statutes regarding occupational safety and health.
          - Authorize the appeals board to award fees to the division if 
          it prevails in an appeal, as specified.  Costs and fees awarded 
          to the division would be deposited in the division's operating 
          budget.
          - Increase the persons and entities that may file a complaint 
          prompting an investigation.
          - Prohibit the appeals board from staying an abatement measure 
          required by the division as part of an enforcement action 
          pending appeal unless the employer indicates that it seeks a 
          stay of the abatement.
          - Provide that the employer may request a hearing before the 
          appeals board on the enforcement action upon payment of a $250 
          filing fee.  The appeals board may grant a stay of abatement if 
          it finds no employee will be exposed to an unsafe or unhealthy 
          condition or the condition is unlikely to cause death, serious 
          injury or illness or serious exposure to any worker.
          - Permit wider participation in an appeal, as specified, and to 
          contest the reasonableness of the period of time fixed in the 
          citation or order for the abatement of the violation, the 
          sufficiency of the changes required to abate the condition, and 
          the characterization of the violation.
          - Permit any party to contest a citation or notice of proposed 
          penalty regardless of whether the employer is contesting the 
          citation or notice of proposed penalty.
          - Expand participation in hearings by allowing parties to 
          subpoena witnesses and documents, offer evidence, examine and  
          cross examine witnesses and argue and submit briefs.
          - Increase parties rights to participate in settlements.
          - Provide for the scheduling of hearings in a manner designed to 
          minimize inconvenience and require the appeals board to set 
          initial hearing dates, as specified.
          - Establish a settlement program designed to bring parties to an 
          agreement at the earliest possible stage of an appeal.








          SB 829 (DeSaulnier)
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          - Require the appeals board to (1) allow the division, at any 
          time before an appeal is submitted for decision, to amend a 
          citation and (2) allow the employer to amend, according to proof 
          presented by the employer, the basis of its appeal.
          - Revise appeals board timelines.
          - Expand the parties that shall have the right to appear in 
          mandate proceedings.

          The above provisions will result in a major increase in the cost 
          to operate the appeals board and its processes.  Specific cost 
          information is being developed and unavailable at this time.  
          Because the Occupational Safety and Health Fund is capped, and 
          may not be adjusted annually by more than a specified 
          state-local government deflator, a significant increase in costs 
          as a result of this bill may force the division to prioritize 
          its activities.