BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



           ----------------------------------------------------------------- 
          |SENATE RULES COMMITTEE            |                       AB 1415|
          |Office of Senate Floor Analyses   |                              |
          |1020 N Street, Suite 524          |                              |
          |(916) 651-1520         Fax: (916) |                              |
          |327-4478                          |                              |
           ----------------------------------------------------------------- 
           
                                           
                                    THIRD READING


          Bill No:  AB 1415
          Author:   John A. Pérez (D), et al.
          Amended:  8/29/14 in Senate
          Vote:     21

           
           SENATE GOVERNMENTAL ORGANIZATION COMMITTEE  :  11-0, 6/25/13
          AYES:  Wright, Nielsen, Berryhill, Calderon, Cannella, Correa,  
            De León, Galgiani, Hernandez, Lieu, Padilla
           
          SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  70-0, 5/24/13 - See last page for vote


            SUBJECT  :    Administrative regulations:  corrosion prevention  
                      and mitigation project

           SOURCE  :     Author


           DIGEST  :    This bill directs the Department of Industrial  
          Relations (DIR), in consultation with the Department of Toxic  
          Substances Control (DTSC), to adopt regulations for corrosion  
          prevention work on public infrastructure projects; provides that  
          these regulations require use of certified personnel for  
          application of protective coatings and linings on steel and  
          concrete which will prevent early deterioration due to corrosion  
          and related environmental contamination; and mandates that these  
          regulations be a part of public contracts receiving state funds  
          by January 1, 2017.

           Senate Floor Amendments  of 8/29/14 expand the exemption for  
                                                                CONTINUED





                                                                    AB 1415
                                                                     Page  
          2

          plumbing and piping to ventilation, sheet metal, and pre-cast  
          concrete work; and make grammatical, technical changes.

           Senate Floor Amendments  of 8/22/14 add a new body of law  
          relating to corrosion prevention and mitigation standards on  
          public works contracts, as specified; change the bill's author  
          from the Assembly Accountability and Administrative Review  
          Committee to Assemblymember John A. Perez; add coauthors; make  
          legislative findings; and, with the exception of a technical  
          change, reinstate existing law relative to judicial review of  
          administrative procedures.

          ANALYSIS  :    

          Existing law:

           1. Sets forth, pursuant to the Administrative Procedure Act,  
             the requirements for the adoption, publication, review, and  
             implementation of regulations by state agencies.

           2. Establishes DIR to improve working conditions and to advance  
             opportunities for profitable employment in California.  DIR  
             administers and enforces laws related to apprenticeship  
             training and certification programs. 

           3. Establishes DTSC to protect California's people and  
             environment from harmful effects of toxic substances by  
             restoring contaminated resources, enforcing hazardous waste  
             laws, and reducing hazardous waste generation.

          This bill:

           1. Makes legislative findings and declarations relative to the  
             state's water and transportation infrastructure needs that  
             will continue to increase dramatically.  As California  
             prepares for more than $7 billion in investments in the  
             state's water infrastructure, preventive measures such as  
             corrosion prevention applications should be a part of all new  
             construction, retrofitting, and maintenance work and the work  
             should be done by a competent workforce.

           2. Requires a public entity, as defined, that awards a contract  
             for construction, alteration, demolition, installation,  
             repair, or maintenance work after January 1, 2017, that is  

                                                                CONTINUED





                                                                    AB 1415
                                                                     Page  
          3

             paid for in whole or in part with state funds to require all  
             contractors and subcontractors performing corrosion  
             prevention and mitigation work to comply with certain  
             standards adopted pursuant to this bill.

           3. Provides that contractors and subcontractors performing  
             contracts for construction, alteration, demolition,  
             installation, repair or maintenance work awarded after  
             January 1, 2017, that are paid for in whole or in part with  
             state funds shall, when performing corrosion prevention and  
             mitigation work, comply with the standards adopted pursuant  
             to this bill.

           4. Requires DIR, in consultation with DTSC, on or before  
             January 1, 2016, to adopt regulations establishing standards  
             for the performance of corrosion prevention and mitigation  
             work on public projects that reflect industry best practices,  
             as specified.

           5. Defines "trained and certified personnel" as workers  
             performing surface preparation and application of protective  
             coatings and linings to steel and concrete surfaces who are  
             classified as (a) journey-level workers shall be certified by  
             an organization generally accepted in the industry as meeting  
             the NACE 13/ACS 1 standard or a similar standard that is  
             generally accepted by the industry, and (b) apprentices shall  
             be registered in an industrial apprenticeship program  
             approved by the Division of Apprenticeship Standards (DAS)  
             that provides training to meet the NACE 13/ACS 1 standard or  
             a similar standard that is generally accepted by the  
             industry.

           6. Defines "NACE 13/ACS 1 standard" as the Society for  
             Protective Coatings/NACE International standard for an  
             industrial coating and lining application specialist.

           7. Makes it explicit that standards adopted pursuant to this  
             body of law shall not apply to work on sheet metal and  
             ventilation systems or on plumbing and piping systems or to  
             precast concrete work that is performed offsite when the work  
             on these systems or precast concrete work is performed by  
             either: 

              A.    Skilled journey persons who are graduates of an  

                                                                CONTINUED





                                                                    AB 1415
                                                                     Page  
          4

                apprenticeship program for the applicable occupation that  
                either approved by the Chief of DAS pursuant to Labor Code  
                Section 3075 or located outside California and approved  
                for federal purposes pursuant to the apprenticeship  
                regulations adopted by the federal Secretary of Labor.

              B.    Apprentices registered in an apprenticeship program  
                for the applicable occupation that was approved by the  
                Chief of DAS pursuant to Labor Code Section 3075.

          This bill makes technical, nonsubstantive changes to the  
          Administrative Procedure Act.

           Background
           
          According to the author's office, the well-being of California  
          and its people is dependent upon the quality and integrity of  
          its water infrastructure, bridges, roads and industrial  
          structures.  Ensuring the reliability of these public assets  
          depends primarily on two factors:  the performance of proper,  
          timely preventive maintenance by certified workers as well as  
          the extent and severity of structural corrosion or other  
          deterioration. 

          Corrosion was already found to be at a critical level on the  
          suspension span of the new $6.5 billion San Francisco-Oakland  
          Bay Bridge.  According to a 2012 American Society of Civil  
          Engineers study, 2,978 of the 24,812 bridges in California  
          (12.0%) are considered structurally deficient and roughly 8,000  
          of them are older than the recommended 50-year lifespan.

          As California is poised to spend more than $7 billion on water  
          infrastructure in the near future, preventative measures like  
          corrosion prevention applications should be a part of all new  
          construction, retrofitting, and maintenance work.  This protects  
          against deterioration of the building materials, as well as  
          environmental contamination from leakage, breaks, or the release  
          of toxics.

          Corrosion prevention work is necessary for long-term  
          environmental protection.

          When a coating is properly applied, it can last 10-20 years.   
          When applied incorrectly, repairs are necessary within one to  

                                                                CONTINUED





                                                                    AB 1415
                                                                     Page  
          5

          three years, requiring untold costs.  Each repair of a structure  
          surface requires removal of the existing coating.  When this  
          process is not conducted by a competent workforce, the  
          surrounding environment can be exposed to lead or other  
          hazardous materials.

          The Society for Protective Coatings (SSPC) states that 80% of  
          coating failures are due to human error.  Whether from flawed  
          surface preparation; improper coating selection and application;  
          inadequate drying and curing or over-coating; the use of  
          certified professionals can help prevent these failures.  The  
          use of experienced professionals who are trained to the  
          standards of third party organizations - such as NACE or SSPC,  
          which have long-standing reputations for developing training,  
          manufacturing and safety specifications and certifications based  
          on science and well-researched best-practices - there is greater  
          assurance that projects will be completed on time, on budget and  
          in accordance with the highest industry standards.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

           SUPPORT  :   (Verified  8/28/14)

          Advanced Industrial Services, Inc.
          AFSCME
          American Coatings
          California Labor Federation
          FCA International
          F.D. Thomas, Inc.
          G and B Painting
          Hartman Walsh Industrial Services
          International Union of Painters and Allied Trades
          International Union of Painters and Allied Trades, District  
          Council 16
          International Union of Painters and Allied Trades, District  
          Council 36
          International Union of Painters and Allied Trades/Finishing  
          Trades Institute
          Jerry Thompson & Sons Painting, Inc.
          K2 Cannon Sline Industrial, Inc.
          KBI Painting, Inc.
          Long Painting Company
          Los Angeles Painting & Finishing Contractors Association

                                                                CONTINUED





                                                                    AB 1415
                                                                     Page  
          6

          Mason Painting
          Murphy Industrial Coatings, Inc.
          NACE International
          NACE International Institute
          Northern California Painting and Finishing Contractors  
          Association
          Redwood Painting Co., Inc.
          Russell Hinton Co.
          Society for Protective Coatings
          Southern California Painting Decorators, Contractors Association
          State Building and Construction Trades Council
          Techno Coatings, Inc.
          Wm. B. Saleh Co. 

           OPPOSITION  :    (Verified  8/29/14)

          Air Conditioning Trade Association
          Associated Builders and Contractors - San Diego Chapter
          Associated General Contractors
          Plumbing-Heating-Cooling Contractors Association of California
          Western Electrical Contractors Association

           ARGUMENTS IN SUPPORT  :    Proponents write that this bill will  
          increase environmental and health and safety workforce  
          protections for corrosion prevention applications on public  
          works projects that receive state funding.

           ARGUMENTS IN OPPOSITION  :    Opponents write that it is unclear  
          why the requirements of this bill do not apply to plumbing and  
          piping systems.  Corrosion has a significant impact on plumbing  
          and piping systems and it seems this bill ignores a significant  
          part of the industry. 
           

           ASSEMBLY FLOOR  :  70-0, 5/24/13
          AYES:  Achadjian, Alejo, Ammiano, Atkins, Bigelow, Bloom,  
            Blumenfield, Bocanegra, Bonilla, Bradford, Brown, Buchanan,  
            Ian Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley,  
            Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox, Frazier,  
            Beth Gaines, Garcia, Gatto, Gomez, Gordon, Gorell, Gray,  
            Hagman, Hall, Harkey, Roger Hernández, Jones, Jones-Sawyer,  
            Levine, Linder, Logue, Lowenthal, Maienschein, Mansoor,  
            Medina, Melendez, Mitchell, Morrell, Mullin, Muratsuchi,  
            Nestande, Olsen, Pan, Patterson, Perea, V. Manuel Pérez,  

                                                                CONTINUED





                                                                    AB 1415
                                                                     Page  
          7

            Quirk, Quirk-Silva, Rendon, Salas, Stone, Ting, Wagner, Weber,  
            Wieckowski, Williams, Yamada, John A. Pérez
          NO VOTE RECORDED:  Allen, Bonta, Grove, Holden, Nazarian,  
            Skinner, Waldron, Wilk, Vacancy, Vacancy


          MW:k  8/29/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

                                   ****  END  ****


































                                                                CONTINUED