BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1803
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          Date of Hearing:   April 23, 2014

                     ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT
                               Roger Hern�ndez, Chair
                   AB 1803 (Skinner) - As Amended:  April 10, 2014
           
          SUBJECT  :   Occupational safety and health: lead-related  
          construction registration program

           SUMMARY  :   Establishes a program to register employers and  
          contractors who perform lead-related construction work.   
          Specifically,  this bill  : 

          1)Applies the definition of "lead-related construction work," as  
            defined in Labor Code Section 6716, to the provisions of this  
            act. 

          2)Requires any employer or contractor who will be engaging in  
            lead-related construction work to apply for and obtain a  
            registration from the Division of Occupational Safety and  
            Health (DOSH) prior to the commencement of any such work, with  
            certain exceptions.  

          3)Imposes an application fee for registration to be estimated by  
            DOSH and used for the purposes of this program.

          4)Establishes an application procedure that shall include all of  
            the following:

             a)   Proof of a valid California contractor's license.

             b)   Proof of workers' compensation insurance.

             c)   Proof of sufficient employee health insurance coverage  
               for any medical surveillance costs imposed by Section  
               1532.1 of Title 8 of the California Code of Regulations, or  
               any successor to that regulation.

             d)   Proof that all training and certification requirement  
               for employees engaged in lead-related work pursuant to  
               Section 105250 of the Health and Safety Code and Section  
               1532.1 of Title 8 of the California Code of Regulations, or  
               any successor to that regulation, have been completed.

             e)   Other information as DOSH determines to be necessary.








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          5)Establishes a civil penalty of up to $10,000 if an employer or  
            contractor willfully states as true any material fact he or  
            she knows to be false.

          6)Provides that DOSH shall deny a registration application if  
            the employer has failed to show, based on available facts and  
            the employer's compliance history with DOSH, that the  
            conditions, practices, means, methods, operations, or  
            processes used or proposed to be used will provide a safe and  
            healthful place of employment.  

          7)Allows an employer or contractor to appeal an application  
            denial to the Director of Industrial Relations (director), who  
            will designate a hearing venue and preside over the hearing.   
            The employer shall provide reasonable notice to employees and  
            employee representatives of a hearing, which shall be open for  
            them to attend.  

          8)Provides that the director's decision on appeal shall be final  
            unless a request for rehearing is filed with director within  
            10 days after the date of the decision is rendered, or unless  
            the decision is appealed to the courts as provided by law.  

          9)Provides that registration for lead-related construction work  
            shall be valid for one year after the date of issuance by DOSH  
            and must be annually renewed with DOSH.

          10)Provides that DOSH may hold a hearing to determine if a  
            lead-related violation has occurred and to order the violator  
            to pay monetary penalties.

          11)Provides that DOSH may, at any time, upon a showing of good  
            cause and after notice and an opportunity to be heard, revoke  
            or suspend a lead-related construction work registration.  

          12)Provides that the registration program shall be funded solely  
            from funds in the Lead Contractor Registration Fund.

          13)Makes related and conforming changes.  

           EXISTING LAW  :

          1)Defines "lead related construction work" as meaning any of the  
            following:








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            a)  Any construction, alteration, painting, demolition,  
              salvage, renovation, repair, or maintenance of any building  
              or structure, including preparation and cleanup, that, by  
              using or disturbing lead-containing material or soil, may  
              result in significant exposure of employees to lead as  
              determined by the standard adopted pursuant to Labor Code  
              Section 6717.

            b)  The transportation, disposal, storage, or containment of  
              materials containing lead on site or at a location at which  
              construction activities are performed.  "Lead-related  
              construction work" does not include any activity related to  
              the manufacture or mining of lead or the installation or  
              repair of automotive materials containing lead. 

          2)Requires certification for persons engaged in specified lead  
            construction work.

          3)Establishes the following regulations for lead-related  
            construction work:

             a)   Permissible exposure limit

             b)   Exposure assessment standard
                  
             c)   Methods of compliance: engineering and work practice  
               controls; compliance program; mechanical ventilation;  
               administrative controls

             d)   Respiratory protection guidelines

             e)   Protective work clothing and equipment guidelines

             f)   Housekeeping guidelines

             g)   Hygiene facilities, practices and regulated areas  
               guidelines

             h)   Medical surveillance guidelines

             i)   Medical removal protection guidelines

             j)   Employee information, training, and certification  
               guidelines








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             aa)       Sign posting guidelines

             bb)       Recordkeeping guidelines

             cc)       Guidelines for monitoring exposed employees 

             dd)       Notification guidelines requiring an employer to  
               provide written notification to the nearest Division  
               District Office when specified lead-related work is  
               planned. 

           FISCAL EFFECT  :  Unknown
           
          COMMENTS  :  In 1978 the Consumer Product Safety Commission banned  
          the sale of lead paint which had been proven to produce a wide  
          range of adverse health effects.  Today, according to the  
          National Safety Council (NSC), lead paint may be found in  
          approximately two-thirds of all homes built before 1940, half of  
          all homes built between 1940 and 1960, and a lesser number of  
          homes built between 1960 and 1978.  Although NSC does not record  
          percentages for commercial structures they are believed to be  
          the same as residential structures.  Lead paint that remains  
          undisturbed and is in good condition does not pose an immediate  
          health hazard. However, if lead paint chips, cracks, flakes, or  
          is disturbed during repainting, remodeling, or renovation, lead  
          paint can create serious health hazards.  Studies have also  
          shown adults with high levels of lead exposure are at risk for  
          high blood pressure, nerve disorders and kidney disease.

          This bill was modeled after the asbestos abatement laws (Labor  
          Code Section 6501 et seq and Business and Professions Code  
          7058.6), which require employers and contractors engaging in  
          asbestos-related work to be certified and registered with DOSH.   
          Under existing law, employers are required to provide written  
          notification to the nearest Division District Office when  
          lead-related work is planned (California Code of Regulations,  
          Title 8, Section 1532.1(p)).

          According to the author, under current law, contractors who  
          perform lead abatement activities must meet certain criteria and  
          follow specific operational protocols.  However, contractors are  
          not required to register with the state or notify the state when  
          they are performing lead abatement activities.  By contrast,  
          asbestos abatement laws require contractors to register with the  








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          state and notify the state when they are performing abatement  
          activities. This system allows for proper enforcement and  
          ensures that safety standards are being met.
           
          The author argues that, because contractors are not required to  
          register or notify the state when they are performing lead  
          abatement activities, the state's ability to ensure that  
          contractors are operating properly is limited because the state  
          does not know which contractors are performing lead abatement  
          activities or where lead abatement activities may be taking  
          place. Given the limited enforcement, unscrupulous contractors  
          may hire unqualified workers, knowingly expose them to unsafe  
          work conditions, carry inadequate insurance policies and  
          consequently underbid contractors who are in compliance.

           The California Department of Public Health Lead Accreditation  
          and Certification Program  

          California's lead accreditation and certification program began  
          in June, 1994. At that time, new childhood lead poisoning  
          prevention required the California Department of Public Health  
          (CDPH, formerly Department of Health Services) to create a  
          program to certify lead-related construction trades-people and  
          accredit lead-related construction training providers. Final  
          regulations establishing this program took effect April 5, 1995.  
          Revisions to these regulations that established work practice  
          standards for lead-related construction and amended the  
          previously established accreditation and certification  
          requirements went into effect in January, 1999.  These  
          regulations were updated in April 2008.

          The regulations governing accreditation and certification apply  
          to lead-related construction work done in residential and public  
          buildings.  Some examples of public buildings include schools,  
          day-care centers, museums, airports, hospitals, stores,  
          convention centers, government facilities and office buildings.   
          Accreditation means that a training provider meets regulatory  
          requirements and has been approved by CDPH to offer lead-related  
          construction courses. To be accredited, training providers must  
          have qualified instructors and adequate training facilities.  
          Their courses must provide information about the health effects  
          of lead poisoning, sources of lead, as well as how to identify  
          and reduce lead hazards. 

          Certification means that CDPH has evaluated and approved a  








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          person's qualifications to perform lead-related construction  
          work in residential and public buildings. CDPH evaluates  
          applicants to make sure they have completed state-approved  
          training and have relevant experience and education to perform  
          lead work. CDPH grants five kinds of certificates: (1) Lead  
          Inspector/Assessor; (2) Lead Project Monitor; (3) Lead Sampling  
          Technician; (4) Lead Supervisor; and (5) Lead Worker.


          Each certificate has different training, education, and  
          experience requirements. Certificates are granted to individual  
          people, not to companies or businesses

           ARGUMENTS IN SUPPORT  :

          This bill is sponsored by the Association of Environmental  
          Contractors (AEC).  They state the following in support of this  
          bill:

               "[This bill] establishes a Cal/OSHA-administered registry  
               of contractors who perform lead-related construction work.   
               Registration requirements would only apply to contractors  
               performing work involving a minimum threshold of lead;  
               existing Title 8 guidelines would remain in force for all  
               contractors, regardless of registration.  Because Cal/OSHA  
               currently operates a similar registry for asbestos-related  
               work, the institutional framework is already in place to  
               implement lead registration.   The asbestos contractor  
               registry has proven enormously successful in increasing  
               compliance with safety standards without a corresponding  
               increase in enforcement costs. 

               Registration gives owners, consultants, and general  
               contractors a simple pre-qualification standard for  
               construction work involving a defined amount of lead.  All  
               registered contractors will possess demonstrated knowledge  
               of the regulations and will have supplied procedures to  
               comply with them.  The owner, consultant, and general  
               contractor must simply confirm a contractor's status on the  
               Cal/OSHA registry prior to performing lead work.

               Regulatory coverage is currently triggered by expected  
               exposure (where lead is known to be present) and air  
               monitoring.  The majority of contractors do not monitor  
               work-place air lead levels, however, which creates a  








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               significant gap in regulatory compliance. Registration  
               would close this gap in a cost-effective manner, as it  
               would ensure that contractors who are familiar with the  
               applicable regulations-and committed to following them-are  
               performing lead-related construction work.

               In addition, the California Department of Public Health is  
               recommending lowering the Permissible Exposure Limit (PEL)  
               for workers who are exposed to lead, which is measured by  
               air monitoring.  This recommendation is a response to the  
               clear harm that flows from even low-level lead exposure.  
               Regardless of whether Cal-OSHA lowers the PEL, however,  
               without a registry, the lack of compliance will continue,  
               as those not performing air monitoring will continue to  
               flout the regulations governing lead-related construction  
               work.

               [This bill] benefits workers who perform lead abatement  
               activities, lead abatement workers' families who face  
               incidental exposure, building owners who may be faced with  
               additional liability for failure to properly abate lead,  
               and building tenants and residents who may be exposed to  
               lead if abatement is performed improperly."

          Similarly, the California State Council of Laborers states that  
          employers play a key role in worksite safety and are responsible  
          for the safety of their employees.  They state that they take  
          great pride in partnering with their signatory employers to  
          better provide as much protection to workers as possible, and  
          this bill will establish a better method of identifying who is  
          performing these type of work activities throughout the state.

           PRIOR RELATED LEGISLATION  :

          This bill is virtually identical to the introduced version of AB  
          354 (Ed Hern�ndez) of 2007.  However, AB 354 was subsequently  
          amended to deal with the cremation of human remains and the  
          removal of pacemakers.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Association of Environmental Contractors
          California Labor Federation, AFL-CIO








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          California State Council of Laborers

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