BILL ANALYSIS �
Bill No: SB
792
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Lou Correa, Chair
2013-2014 Regular Session
Staff Analysis
SB 792 Author: Padilla
As Amended: August 30, 2014
Hearing Date: August 30, 2014
Consultant: Art Terzakis
SUBJECT
Public Contracts: regulations: corrosion prevention and
mitigation projects
DESCRIPTION
SB 792 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. These regulations would require use of certified
personnel for application of protective coatings and
linings on steel and concrete which would prevent early
deterioration due to corrosion and related environmental
contamination. The bill mandates that these regulations be
a part of public contracts receiving state funds by January
1, 2017. Specifically, this bill:
1)Makes numerous 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)Adds a new body of law to the Public Contract Code
relating to corrosion prevention standards that specifies
SB 792 (Padilla) continued
Page 2
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
certain standards adopted pursuant to this bill.
3)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 standards adopted
pursuant to this bill.
4)Requires the DIR in consultation with the 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" for purposes of
the bill.
6)Defines "NACE 13/ACS 1 standard" for purposes of the
bill.
7)Makes it explicit that standards adopted pursuant to this
body of law shall not apply to work on sheet metal and
ventilations systems or on plumbing and piping systems or
precast concrete work that is performed offsite when the
work on these systems or precast 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 Section 3075
of the Labor Code 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
SB 792 (Padilla) continued
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Chief of the Division of Apprenticeship Standards
pursuant to Section 3075 of the Labor Code.
EXISTING LAW
Existing law contains various provisions relating to
contracts by a public entity for the performance of public
works of improvement, including provisions for the payment
of progress payments and the disbursing and withholding of
retention proceeds.
Existing law establishes the DIR to improve working
conditions and to advance opportunities for profitable
employment in California. The DIR administers and enforces
laws related to apprenticeship training and certification
programs.
Existing law establishes the 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
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.
The author's office notes that corrosion has already been
found to be at a critical level on the suspension span of
the new $6.5 billion San Francisco-Oakland Bay Bridge and
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, preventive
measures like corrosion prevention applications should be a
part of all new construction, retrofitting, and maintenance
SB 792 (Padilla) continued
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work. This protects against deterioration of the building
materials, as well as environmental contamination from
leakage, breaks, or the release of toxics. When a coating
is properly applied, it can last 10-20 years. When applied
incorrectly, repairs are necessary within 1-3 years,
requiring untold costs. Each repair of a structure surface
requires removal of the existing coating. The author's
office emphasizes that 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 3rd party organizations - such
as the National Association of Corrosion Engineers (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.
NACE establishes the industry standards for corrosion
protection. NACE International, the Worldwide Corrosion
Authority, serves nearly 33,000+ members in 116 countries
and is recognized globally as the premier authority for
corrosion control solutions. The organization offers
technical training and certification programs, conferences,
industry standards, reports, publications, technical
journals, government relations activities and more. It is
from the standards established by this organization that
DIR and DTSC are to establish the certification regulations
for anti-corrosion applicators in California.
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. Additionally,
proponents emphasize that "ensuring the protection and
long-term viability of public investments is a
responsibility of the state and an expression of fiscal
responsibility."
SB 792 (Padilla) continued
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Arguments in Opposition: Opponents argue that "while
corrosion prevention and safety of California's
infrastructure is good policy, no information has been
offered as to why the creation of a new regulatory program
is necessary as the bill's provisions won't take effect
until 2017." Additionally, opponents state that "if
preventing corrosion is the intent of the bill, eliminating
those that work on piping and plumbing systems from
following best practices on public infrastructure projects
that carry water or other substances is simply not a
logical policy."
SUPPORT: As of August 30, 2014:
Advanced Industrial Services, Inc.
American Coatings
Support (continued)
American Federation of State, County and Municipal
Employees (AFSCME)
California Labor Federation
Cannon Sline Industrial, Inc.
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
Jerry Thompson & Sons Painting, Inc.
KBI Painting, Inc.
Long Painting Company
Los Angeles Painting & Finishing Contractors Association
Mason Painting, Inc.
Murphy Industrial Coatings, Inc.
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
SB 792 (Padilla) continued
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State Building and Construction Trades Council
Techno Coatings, Inc.
Wm. B. Saleh Co.
OPPOSE: As of August 30, 2014:
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
FISCAL COMMITTEE: Senate Appropriations Committee
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