BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 792
                                                                  Page  1


          (  Without Reference to File  )

          SENATE THIRD READING
          SB 792 (Padilla)
          As Amended  August 30, 2014
          Majority vote 

           SENATE VOTE  :Vote not relevant  
           
           LABOR & EMPLOYMENT        5-2                                   
           
           ----------------------------------------------------------------- 
          |Ayes:|Roger Hern�ndez, Alejo,   |     |                          |
          |     |Chau, Holden,             |     |                          |
          |     |Ridley-Thomas             |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Grove, Gorell             |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Requires public projects involving corrosion  
          prevention and mitigation work to comply with specified  
          standards.  Specifically,  this bill  :

          1)Requires the Director of the Department of Industrial  
            Relations (DIR), in consultation with the Department of Toxic  
            Substances Control, 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.

          2)Specifies that such industry best practices shall include, but  
            are not limited to, all of the following:

             a)   Use of trained and certified personnel for surface  
               preparation and application of protective coatings and  
               linings to steel and concrete surfaces.

             b)   Use of inspectors to ensure best practices and standards  
               are met.

             c)   A plan to prevent environmental degradation, including,  
               but not limited to, careful handling and containment of  
               hazardous materials such as lead paint.








                                                                  SB 792
                                                                  Page  2



          3)Defines "trained and certified personnel" to mean both of the  
            following:

             a)   To the maximum extent feasible, workers performing  
               surface preparation and application of protective coatings  
               and linings to steel and concrete surfaces who are  
               classified as journey-level workers shall be certified by  
               an organization generally accepted in the industry as  
               meeting the National Association of Corrosion Engineers  
               (NACE) 13/ACS 1 standard or a similar standard that is  
               generally accepted in the industry.

             b)   Workers performing surface preparation and application  
               of protective coatings and linings to steel and concrete  
               surfaces who are classified as apprentices shall be  
               registered in an industrial apprenticeship program approved  
               by the Division of Apprenticeship Standards that provides  
               training to meet the NACE 13/ACS 1 standard or a similar  
               standard that is generally accepted in the industry.

          4)Defines "NACE 13/ACS 1 standard" to mean the Society for  
            Protective Coatings/NACE International standard for an  
            industrial coating and lining application specialist.

          5)Provides that a public entity (as defined) that awards a  
            contract for construction, alteration, demolition,  
            installation, repair or maintenance work after January 1,  
            2017, that is paid for in whole or in part with state funds  
            shall require all contractors and subcontractors performing  
            corrosion prevention and mitigation work to comply with the  
            aforementioned standards.

          6)Requires 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, when performing  
            corrosion prevention and mitigation work, to comply with the  
            aforementioned standards.

          7)Specifies that the aforementioned standards shall not apply to  
            work on sheet metal and ventilation systems, or on plumbing  
            and piping systems or precast concrete work that is performed  
            offsite when the work on these systems or precast concrete  








                                                                  SB 792
                                                                  Page  3


            work is performed by either:

             a)   Skilled journey persons who are graduates of an  
               apprenticeship program for the applicable occupation that  
               was either approved by the Chief of the Division of  
               Apprenticeship Standards pursuant to existing law 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  
               the Division of Apprenticeship Standards pursuant to  
               existing law.

          8)Makes related legislative findings and declarations.
           
          FISCAL EFFECT :  Unknown

           COMMENTS  :  According to the author and the sponsor (the  
          International Union of Painters and Allied Trades), 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. 

          They note that 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%) are considered structurally deficient and  
          roughly 8,000 of them are older than the recommended 50-year  
          lifespan.

          The author and the sponsor state that 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  








                                                                  SB 792
                                                                  Page  4


          of toxics.

          They contend that corrosion prevention work is necessary for  
          long-term environmental protection.  When a coating is properly  
          applied, it can last between 10 and 20 years.  However, when  
          applied incorrectly, repairs are necessary within one to 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 author and the sponsor note that 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.  With the use of experienced  
          professionals who are trained to the standards of third party  
          organizations - such as SSPC or the NACE, 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.

          Opponents write that it is unclear why the requirements of this  
          bill do not apply all work, such as plumbing and piping systems.  
           Corrosion has a significant impact on plumbing and piping  
          systems and other excluded work and it seems this bill ignores a  
          significant part of the industry.
           

          Analysis Prepared by  :    Ben Ebbink / L. & E. / (916) 319-2091 


                                                                 FN:  
          0005603