BILL ANALYSIS                                                                                                                                                                                                    



                                                          AB 1127
                                                          Page  1

Date of Hearing:  May 11, 1999
Consultant:    Ignacio Hernandez


              ASSEMBLY COMMITTEE ON PUBLIC SAFETY  
                        Mike Honda, Chair

     AB 1127 (Steinberg) - As Introduced:  February 25, 1999
  
  
  SUMMARY  :  Protects a worker by increasing his or her ability to  
file a claim of discrimination against an employer.  Improves  
worker safety by increasing the penalties available when an  
employer knowingly creates a hazard for employees, or willfully,  
or repeatedly violates Occupational Safety and Health Act (OSHA)  
standards, causing serious harm or death.  Specifically,  this  
bill  :  

1)Increases from 30 days to 1 year the time that an employee has  
  to file a claim of improper discharge or discrimination  
  against his or her employer with the Labor Commission. 

2)Defines "serious physical harm" as:

   a)   Any injury involving a temporary, prolonged, or  
     permanent impairment of the body in which any part of the  
     body is rendered functionally useless or substantially  
     reduced in efficiency on or off the job.  

   b)   Any illness involving a condition that may shorten life  
     or significantly reduce physical or mental efficiency by  
     inhibiting the normal function of a part of the body.

3)Provides that OSHA standards are admissible in any personal  
  injury or wrongful death action.

4)Presumes that OSHA standards are reasonable and proper  
  requirements of safety and are, therefore, admissible in any  
  civil or criminal matter. 

5)Places burden of establishing good cause on employer who seeks  
  to appeal an order to abate a hazard.  

6)Increases the misdemeanor punishment for knowingly,  
  negligently, or repeatedly violating an order to abate a  








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  hazard, punishable by a county jail term not to exceed one  
  year or a by a fine not exceeding $200,000 (currently, the  
  punishment is a term in the county jail not to exceed six  
  months or a fine of not more than $5,000.)  

7)Sets the misdemeanor fine for a corporation or limited  
  liability company that knowingly, negligently, or repeatedly  
  violates an order to abate a hazard at no less than $100,000,  
  but not more than $1 million.

8)Increases from a misdemeanor to an alternate  
  misdemeanor/felony the willful violation of an occupational  
  safety or health standard or order that causes serious injury  
  or death.

9)Sets the misdemeanor penalty for a willful violation of an  
  occupational safety or health standard or order that causes  
  serious injury or death at a term in the county jail not to  
  exceed one year and or a fine.

10)Increases the misdemeanor monetary penalty for the willful  
  violation of an occupational safety or health standard or  
  order that causes serious injury or death from between $70,000  
  to $250,000. 

11)Sets the felony penalty for a willful violation of an  
  occupational safety and hazard standard or order that causes  
  serious injury or death as imprisonment in the state prison  
  for 16 months, or 2 or 3 years.  

12)Sets the felony fine for the willful violation of an  
  occupational safety or health standard or order that causes  
  serious injury or death at an amount no less than $250,000 but  
  not exceeding $1 million.  

13)Increases the felony fine for the willful violation of an  
  occupational safety or health standard or order that causes  
  serious injury or death by a corporation or limited liability  
  company at no less than $500,000 and no more than $5 million.

14)Makes the second conviction for the willful violation of an  
  occupational safety or health standard or order that causes  
  serious injury or death a felony punishable by two, three, or  
  four years in state prison, or a fine of no less than $500,000  
  but not exceeding $5 million.








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15)Sets the felony fine for a second conviction of a corporation  
  or limited liability company that willfully violates an  
  occupational safety or health standard that causes serious  
  injury or death at no less than $1,000,000 and nor more than  
  $10 million.

16)Makes it an alternative misdemeanor/felony for an employer to  
  submit a false statement of compliance with an abatement order  
  punishable by either:

   a)   A county jail term not exceeding one year or by a fine  
     not exceeding $100,000 or by both a fine and imprisonment; 

   b)   A term in the state prison of 16 months, 2 or 3 years,  
     or by a fine of not less than $50,000 but not exceeding  
     $250,000, or by both fine and imprisonment; or,

   c)   If the violator is a corporation or a limited liability  
     company the fine shall not be less than $100,000 but not to  
     exceed $1 million.

  EXISTING LAW  :

1)Establishes that an employer who commits a serious violation  
  of a standard may be assessed a maximum penalty of $25,000. 

2)Establishes than an employer who willfully or repeatedly  
  violates an OSHA standard may be assessed a penalty of not  
  less than $5,000 nor more than $70,000.

3)Provides, by regulation, that following the issuance of a  
  citation requiring abatement, the duty of an employer to abate  
  an unsafe condition is stayed if the employer appeals the  
  citation.

4)Provides that employers who are governmental entities are not  
  subject to civil penalties for violating a safety standard.

  FISCAL EFFECT  :  Unknown

  1)Author's Statement:   According to the author, "I am pleased to  
  be carrying this important worker health and safety  
  legislation on behalf of the California Labor Federation and  
  the Los Angeles District Attorney with the support of many  








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  labor organizations, the California District Attorney's  
  association, and Attorney General Bill Lockyer.

"This bill is about  preventing  injuries and  protecting  the  
  safety and health of workers in California by enforcing the  
  existing standards and closing loopholes that have developed  
  during the last 16 years.

"AB 1127 is not about California's law abiding employers.  It is  
  about those companies which violate safety standards and  
  injury and endanger workers.  This bill significantly expands  
  potential criminal penalties against an employer who willfully  
  violates a safety standard leading to the  death or permanent  
  or prolonged impairment  of the body of an employee.

"It seems to me that we can all agree that such an employer  
  should be subject to significant penalties.  Under current  
  laws.  Under current law, that is not the case.

"Most of the key provisions of this bill have been heard before  
  in the Legislature and passed out, but vetoed.  For example,  
  the revised criminal provisions are largely drawn from Mr.  
  Knox's 1997 bill, AB 1015.  And the added time to receive  
  administrative complaints from employees who are fired because  
  they complain of unsafe working conditions was contained in a  
  bill by Mr. Keeley last year.  It too passed, but was vetoed.

"The provision concerning multiple employer worksites has drawn  
  major opposition.  Members, please let me call your attention  
  to the fact that this provision is drawn from an existing  
  Wilson administration regulation, which was adopted to bring  
  California into conformity with federal requirements.  

"If it is in current regulations, why is it in this bill?  It is  
  in the bill because there are legal issues about the  
  enforceability of the regulations.  This bill simply clarifies  
  that the existing regulations.  This bill simply clarifies  
  that the existing regulations are enforceable.  Some  
  opposition may characterize this as a radical proposal, but it  
  simply is not.  

"This bill is the product of years of work and review by the  
  labor and law enforcement communities.  Yet, it is not a  
  finished product.  There will continue to be changes as it  
  moves along.  However, this bill is a solid, moderate reform  








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  measure to enable the agency to do its job of protecting  
  workers.  It will target those employers who endanger workers,  
  and benefit those employers who follow the rules.

"We have all heard about the tragic explosion at the Tosco oil  
  refinery.  Last Friday, we held a hearing in Richmond to  
  discuss many of the issues covered in this bill.  We heard  
  eloquent testimony from Kathy Alatorre who lost a brother in  
  an earlier explosion at that facility. 

"?I agree with Ms. Alatorre.  The lives and health of workers  
  should not be sacrificed to promote benefits.  The issue is  
  not jobs v. safety.  We must have both."  
  
2)Extended Filing Period.   Under current law, an employee has  
  only 30 days from the date of the alleged discrimination to  
  file a complaint with the Labor Commissioner.  This is an  
  unusually strict temporal restriction.  During this short  
  period, an employee is expected to compile factual  
  information, consult with a legal adviser, and decide whether  
  or not he or she is willing to file a complaint against his or  
  her employer.  Often times, an employee is hesitant to take  
  action against his or her employer for fear of overt or subtle  
  retaliation.  Consequently, a worker may need more than 30  
  days to secure alternate employment possibilities before  
  filing a complaint with the Labor Commission.  By comparison,  
  a person has six months to file a discrimination complaint  
  against a peace officer with the local municipality.  In  
  addition, the Fair Housing and Employment Act authorizes a  
  one-year filing period for discrimination suits.  

  3)Should a Felony be Available for A Willful OSHA Violation That  
  Causes Death or Serious Injury?   Currently, it is only a  
  misdemeanor under the Labor Code for an employer to willfully  
  violate an OSHA standard or order that results in the death or  
  serious injury of an employee.  The maximum penalty for such  
  conduct is a fine not greater than $70,000 and/or imprisonment  
  in a county jail for term for not more than six months. This  
  bill gives a prosecutor the discretion to file a felony  
  complaint in situations where it is warranted.  The maximum  
  penalty is a fine of at least $250,000 and/or a prison term of  
  16 months, 2 or 3 years.  

The issue is whether it is justified to make a felony available  
  for this offense. The first requirement for this offense to  








                                                          AB 1127
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  lie is that the employer must be made aware of an OSHA  
  violation, for example, by receiving a citation from a  
  regulatory agency of the State of California.  In addition,  
  the employer must knowingly fail to remedy the violation.   
  Lastly, the violation must be the actual and proximate cause  
  of the death or serious injury of an employee.  For example,  
  in a recent case, a 25-year-old employee of a large salt  
  company was crushed and suffocated to death as a result of a  
  cave-in of almost 60 tons of salt.  The employee had been  
  ordered to enter and clean a salt silo in a procedure that  
  violated several safety standards.  If the employer was aware  
  that its cleaning practices did not comport with OSHA  
  standards, but nonetheless mandated the employee conduct such  
  procedures, should the prosecutor have the discretion to file  
  felony charges against the company?   For knowing, egregious  
  violations the option should be available to the prosecutor.

Under the current Labor Code, a prosecutor could not file felony  
  charges.  However, a prosecutor may be able to use the Penal  
  Code to file a felony charge.  If the employee dies, the most  
  reasonable charge available would be involuntary manslaughter.  
   For this crime to lie, the prosecutor must prove criminal  
  negligence which is "the commission of an unlawful act, not  
  amounting to [a] felony; or the commission of a lawful act  
  which might produce death, in an unlawful manner, or without  
  due caution and circumspection."  [Penal Code Section 192(b)]   
  The punishment for involuntary manslaughter is at the  
  discretion of the court but may be as much as two, three, or  
  four years in prison.  [Penal Code Section 193(b).]

By comparison, it is a felony for any person to knowingly, or  
  with reckless disregard for the risk, handle hazardous waste  
  in a way to cause an unreasonable risk of fire.  (Health and  
  Safety Code Section 25189.6)  In addition, it is a felony to  
  put a person at risk of serious injury or death as a result of  
  the reckless handling of hazardous material.  (Health and  
  Safety Code Section 25189.6)  Neither one of these offenses  
  requires that a person suffer injury or death. 

  4)Evidence.   The Los Angeles District Attorneys' (LADA) Office,  
  in a letter of support of this bill, state that OSHA standards  
  should be admissible in lawsuits for wrongful death and  
  personal injury.  According to LADA, "Government standards are  
  generally admissible in court to show the standard of care  
  which a defendant should have followed.  Current law, however,  








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  (Labor Code Section 6304.5) prohibits the admission in court  
  of OSHA standards in personal injury and wrongful death  
  lawsuits.  AB 1127 repeals this provision."

  5)Related Legislation.

    a)   AB 633 (Steinberg) extends the filing period from 30  
     days to 1 year for a complaint of discrimination against an  
     employer.

   b)   AB 1652 (Committee on Labor and Employment), as  
     introduced, extends the filing period from 30 days to 1  
     year for a complaint of discrimination against an employer.  
      This provision of AB 1652 has since been amended out.

  REGISTERED SUPPORT / OPPOSITION  :   

  Support  

American Federation of State, County, and Municipal Employees  
(AFSCME)
California Applicants' Attorneys Association
California Conference Board of the Amalgamated Transit Union
California Conference of Machinists
California Labor Federation
Los Angeles County District Attorney's Office
California Professional Firefighters
California School Employees Association
California Teamsters Public Affairs Council
Consumer Attorneys of California
Engineers & Scientists of California, Local 20 IFPTE, AFL-CIO
Hotel Employees, Restaurant Employees International, AFL-CIO
Office of Attorney General Bill Lockyer
Region 8 States Council of the United Food and Commercial  
Workers
WORKSAFE!

  Opposition  

Agricultural Council of California
Associated General Contractors of California
Associated General Contractors of San Diego
California Business Properties Association
California Chamber of Commerce 
California Mining Association








                                                          AB 1127
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California Restaurant Association
Harvest Container Company
Kaweah Construction Co.
Philip V. Vermeulen, Governmental Relations
Roofing Contractors Association of California
Simi Valley Chamber of Commerce
Valley Intermodal Systems, Inc.
W.M. Lyles Co.
Western Growers Association
Western States Petroleum Association
One Private Citizen
  
Analysis Prepared by  :  Ignacio Hernandez/ PUB. S. / (916)  
319-3744