BILL ANALYSIS                                                                                                                                                                                                    



                                                          AB 1127
                                                          Page  1

Date of Hearing:   May 26, 1999

              ASSEMBLY COMMITTEE ON APPROPRIATIONS 
                    Carole Migden, Chairwoman

         AB 1127 (Steinberg) - As Amended: May 18, 1999 

Policy Committee:                              Labor and  
Employment   Vote:                             6-2
             Public Safety                          5-3

Urgency:     No                   State Mandated Local  
Program:YesReimbursable:          No

  SUMMARY  :

This bill increases civil and criminal penalties for violations  
of the California Occupational Safety and Health Act (Cal-OSHA).  
   Additionally, the bill enacts specific ergonomic standards  
for the prevention of repetitive motion injuries.  Specifically,  
this bill:
 
1)Increases the maximum misdemeanor sentence for knowingly or  
  negligently violating safety standards from six months in jail  
  to one year, and increases the maximum fine in such cases from  
  $5,000 to $200,000. If the defendant is a corporation or  
  limited liability company, by a fine of between $100,000 and  
  $1,000,000.

2)Provides that an employer who willfully violates any OSHA  
  standard, and that violation results in the death of any  
  employee, or causes permanent or prolonged impairment of the  
  body of any employee, is guilty of an offense punishable as a  
  misdemeanor or a felony (as opposed to a misdemeanor under  
  current law) punishable by up to one year in jail and/or a  
  fine of up to $250,000, 16 months, or two or three years in  
  state prison and/or a fine of not less than $250,000 but not  
  to exceed $1,000,000.  

If the defendant is a corporation or limited liability company,  
  a fine of not less than $500,000 and not more than $5,000,000.

3)Provides that if the conviction is for a violation committed  
  after a first conviction for any crime involving a violation  
  of OSHA provisions, such offenses are punishable by two,  








                                                          AB 1127
                                                          Page  2

  three, or four years in state prison and/or a fine of not less  
  than $500,000 and not exceeding $5,000,000.  

If the defendant is a corporation or limited liability company,  
  a fine of not less than $1,000,000 and not more than  
  $10,000,000.

4)Provides that a court may impose a fine for a violation of  
  OSHA provisions in an amount less than the minimum fine  
  specified if the court finds it is in the interest of justice  
  to do so. 

5)Raises the maximum civil penalty for a serious violation of a  
  safety standard from $7,000 to $25,000.

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

7)Provides that OSHA standards and orders may be admitted into  
  evidence in a personal injury or wrongful death action.

8)Provides that the Division of Occupational Safety and Health  
  may enforce, and issue citations for Labor Code violations in  
  addition to regulatory standards, orders, and special orders.

9)Enacts statutory requirements for the prevention of repetitive  
  motion injuries (RMI) in the workplace and requires the  
  Division and the Occupational Safety and Health Standards  
  Board to enforce these requirements.

  FISCAL EFFECT  :

No net state costs.  

Minor costs for increased state incarceration, offset by fines.

Minor nonreimbursable costs for local incarceration, offset by  
fines.

The bill increases the civil penalties that apply to violations  
of existing health and safety standards and regulations. The  
bill imposes new regulations in the area of ergonomics.  The  
increase in penalty revenues to the Division of Occupational  
Safety and Health within the Department of Industrial Relations  








                                                          AB 1127
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is likely to more than offset any increased enforcement costs  
arising from this bill.

  COMMENTS  :

  1)Background.  The bill substantially increases the civil  
  penalties that apply to violations of health and safety  
  standards.  The enhanced criminal penalty provisions of this  
  bill are drawn from AB 1015 (Knox) of 1997, which was  
  sponsored by the Los Angeles District Attorneys office.  It  
  passed the Legislature and was vetoed by Governor Wilson.  The  
  extension of the time for a worker subjected to retaliation  
  for complaining about unsafe working conditions to file an  
  administrative complaint with the Labor Commissioner was  
  contained in AB 2156 (Keeley) of 1998 which was passed by the  
  Legislature, and vetoed by Governor Wilson.  

  2)Purpose  . Supporters argue that California's occupational  
  safety and health program has been weakened significantly  
  during the past 16 years through a series of regulations,  
  policies, and Appeals Board decisions that limit the  
  Division's ability to enforce safety and health standards.  
  Supporters further argue that while the majority of employers  
  voluntarily comply with safety requirements, the existing  
  penalties are too low to effectively deter those employers who  
  do not comply.

  3)Opposition  .  Opponents argue that existing laws are adequate  
  and that this bill inappropriately increases civil and  
  criminal penalties and changes key provisions of current law.   
  They further argue that this bill will make it difficult to  
  hire managers and supervisors, and will have a chilling effect  
  on business in California. 



  Analysis Prepared by  :    Stephen Shea / APPR. / (916) 319-2081