BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1803
                                                                  Page  1

          Date of Hearing:   April 30, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   AB 1803 (Skinner) - As Amended:  April 10, 2014 

          Policy Committee:                              LaborVote:7-0

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

           SUMMARY  

          This bill establishes a lead-related construction registration  
          program under the Division of Occupational Safety and Health  
          (DOSH) and requires any employer or contractor who will be  
          engaging in lead-related construction work to apply for and  
          obtain registration in the program prior to the commencement of  
          any such work.  Specifically, this bill:

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

          2)Sets forth criteria for the application procedure and  
            authorizes DOSH to 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.  

          3)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.  

          4)Provides that the director's decision on appeal shall be final  








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            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.  

          5)Authorizes DOSH to hold a hearing to determine if a  
            lead-related violation has occurred and authorizes DOSH to  
            impose monetary penalties: $5,000 for the first violation and  
            $20,000 for the second or subsequent violation.

          6)Authorizes DOSH, 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.  

           


          FISCAL EFFECT  

          The Department of Industrial Relations (DIR) estimates costs of  
          $1.9 million in the first year and $1.8 million annually to  
          administer the program.  The bill authorizes DOSH to estimate  
          the cost of the application and renewal fees, which would be  
          deposited into the Lead Contractor Registration Fund established  
          under the bill. The bill requires the program to be funded  
          solely from these funds.  
          DOSH is also authorized to assess penalty fees for lead-related  
          violations which could also offset costs to administer the  
          program.

           COMMENTS  

           1)Purpose  . Under existing law, employers are required to provide  
            written notification to the nearest DOSH division district  
            office when lead-related work is planned (California Code of  
            Regulations, Title 8, Section 1532.1(p)).  However, according  
            to the author, contractors are not required to register with  
            the state when they are performing lead abatement activities.   
            By contrast, asbestos abatement laws require contractors to  
            register with the state and notify the state when they are  
            performing abatement activities. 

            This bill is modeled after the asbestos abatement laws, which  
            require employers and contractors engaging in asbestos-related  
            work to be certified and registered with DOSH.  According to  
            the sponsor, the Association of Environmental Contractors  








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            (AEC), the asbestos contractor registry has been successful in  
            increasing compliance with safety standards without a  
            corresponding increase in enforcement costs. 

           2)DPH lead program  .  The California Department of Public Health  
            (DPH) currently administers a Health Lead Accreditation and  
            Certification Program. The program, established in 1994,  
            certifies lead-related construction trades-people and  
            accredits lead-related construction training providers. Each  
            certificate has different training, education, and experience  
            requirements. Certificates are granted to individual people,  
            not to companies or businesses.

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



           Analysis Prepared by  :    Misty Feusahrens / APPR. / (916)  
          319-2081