BILL ANALYSIS                                                                                                                                                                                                    



                                                          AB 1127
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ASSEMBLY THIRD READING
AB 1127 (Steinberg)
As Amended May 18, 1999
Majority vote 

  LABOR AND EMPLOYMENT            6-2                 PUBLIC SAFETY  
5-3                 
  
 ----------------------------------------------------------------- 
|Ayes:|Steinberg, Gallegos,      |Ayes:|Honda, Cedillo, Keeley,   |
|     |Knox, Migden, Lempert,    |     |Romero, Washington        |
|     |Shelley                   |     |                          |
|     |                          |     |                          |
|-----+--------------------------+-----+--------------------------|
|Nays:|Margett, Oller            |Nays:|Cunneen, Battin, Oller    |
|     |                          |     |                          |
 ----------------------------------------------------------------- 
  APPROPRIATIONS      12-7                                        
  
 ----------------------------------------------------------------- 
|Ayes:|Migden, Cedillo, Davis,   |     |                          |
|     |Hertzberg, Kuehl, Romero, |     |                          |
|     |Shelley, Steinberg,       |     |                          |
|     |Thomson, Wesson, Wiggins, |     |                          |
|     |Aroner                    |     |                          |
|     |                          |     |                          |
|-----+--------------------------+-----+--------------------------|
|Nays:|Brewer, Ashburn, Battin,  |     |                          |
|     |Pescetti, Maldonado,      |     |                          |
|     |Runner, Zettel            |     |                          |
|     |                          |     |                          |
 ----------------------------------------------------------------- 
  SUMMARY  :  Increases civil and criminal penalties for willful,  
serious, and repeat violations of occupational safety and health  
standards; revises enforcement procedures under the California  
Occupational Safety and Health Act (OSHA); and, enacts specific  
ergonomic standards for the prevention of repetitive motion  
injuries.  Specifically,  this bill :

1)Extends from 30 days to one year the period of time to file an  
  administrative complaint with the Labor Commissioner  
  (Commissioner) for an employee who complains of unsafe working  
  conditions or who refuses to engage in unsafe work, and who is  
  subjected to retaliation for such actions.

2)Revises the definitions of "serious exposure" and "serious  







                                                          AB 1127
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  physical harm."

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

4)Defines the term "employee's representative for purposes of  
  responding to a complaint of an unsafe workplace by an employee or  
  the employee's representative.

5)Repeals the provision of current regulations under which,  
  following a citation by the Division, an employer's duty to abate  
  an unsafe condition is automatically stayed if an employer appeals  
  the citation.  Instead, provides that the employer may petition  
  for such a stay. 

6)Provides that if the condition of any place of employment  
  constitutes a serious menace to the lives or safety of specified  
  persons, any state or local prosecutor, as well as the Division,  
  may apply to a court for an injunction. Revises the procedures for  
  the granting of such an injunction.

7)Enacts in statute the current regulation establishing  
  responsibility for violation of a safety standard in a  
  multi-employer worksite.  

8)Increases the maximum misdemeanor sentence for knowingly or  
  negligently violating safety standards, the violation of which is  
  deemed to be a serious violation. 

9)Provides that an employer who willfully violates any OSHA  
  standard, as defined, and that violation caused death to any  
  employee, or caused permanent or prolonged impairment of the body  
  of any employee is guilty of an offense punishable as a  
  misdemeanor or a felony.  Increases the sentences and fines upon  
  such a conviction. 

10)Provides that the maximum civil penalty for a serious violation  
  of an applicable safety standard shall be raised from $7,000 to  
  $25,000.

11)Provides that any past violation of a standard occurring anywhere  
  within the state within the previous five years shall be used to  
  establish whether a current violation is a repeat violation, and  
  shall constitute evidence of willfulness for purposes of applying  
  specified penalty enhancements.








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12)Increases the penalties for failing to abate a hazard within the  
  period permitted for its correction.

13)Provides that a "serious violation" includes conditions where  
  there is a substantial probability that death or serious physical  
  harm could result from a violation, and conditions where the  
  violation results in occupational injuries or illnesses that are  
  indicative of a condition that may result in serious physical  
  harm.  Provides further that a serious violation shall not be  
  deemed to exist if the employer can demonstrate that it did not,  
  and could not with the exercise of reasonable diligence, know of  
  the presence of the violation.  Provides further that for purposes  
  of these requirements, a substantial probability of serious injury  
  shall exist if any single serious injury has been caused by the  
  violation.

14)Repeals the provision that civil penalties for a violation of a  
  safety standard shall not be assessed against employers that are  
  governmental entities.

15)Enacts statutory requirements for the prevention of repetitive  
  motion injuries (RMI) in the workplace.

16)Requires the Division and the Occupational Safety and Health  
  Standards Board (Standards Board) to enforce these requirements if  
  specified conditions exist including:  a) an RMI has occurred to  
  one or more employees engaged in a job, process, or operation; b)  
  a pattern of symptoms or physical signs of work-related RMI among  
  one or more employees engaged in a job, process, or operations has  
  been identified or reported; c) one or more employees are exposed  
  to hazards causing or contributing to or likely to cause or  
  contribute to an RMI; or, d) one or more employees are in a work  
  activity substantially similar to a job, process, or operation  
  where an RMI or pattern of symptoms of an RMI has been identified  
  or reported at the employer's place of employment.

  Requires each employer subject to specified criteria to establish  
  and implement a program designed to prevent and minimize RMI.

  Specifies the elements of the program which employers are required  
  to implement including evaluation of specified processes, timely  
  correction of those processes, and specified training of employees  
  and supervisors.

  Authorizes the Standards Board to adopt regulations, which are not  
  subject to specified rulemaking procedural requirements under the  







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  Administrative Procedure Act.

  EXISTING LAW  :  

  1)Establishes an OSHA program for the adoption and enforcement of  
  workplace safety and health standards.  Establishes three branches  
  of the OSHA program:

   a)   A Standards Board to adopt standards.

   b)   A Division to enforce standards.

   c)   An Appeals Board to hear appeals of employers cited by the  
     Division for violation of the standards.

2)Establishes civil penalties for a violation of an occupational  
  safety or health standard, order or special order (safety  
  standard).

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

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

  Provides, by regulation, that a subsequent violation may not be  
  considered for the purpose of establishing a repeat violation  
  unless the violation occurs at the same fixed establishment as the  
  previous violation, or in the same region of the Division for  
  non-fixed site employers. 

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.

5)Establishes in the Labor Code, criminal penalties applicable to an  
  employer who willfully violates a standard causing the death or  
  permanent or prolonged impairment of the body of an employee.

  Provides that the employer convicted of such acts is guilty of a  
  misdemeanor, punishable by up to six months in jail and/or a fine  
  not to exceed $70,000.







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  FISCAL EFFECT  :  According to the Assembly Appropriations Committee  
analysis, no net state costs.

  COMMENTS  :  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.  AB 2156 and this bill do not affect the  
right of an employee to file suit for a period of one year after  
such retaliation.

Under current law, government regulatory standards are generally  
admissible into evidence in negligence and wrongful death actions.   
They are typically used in such cases to establish a standard of  
care.  In 1971, the Legislature barred the admission into evidence  
of occupational health and safety standards, and thereby created an  
exception to the general rule.  This bill repeals that exception.

Some employers have taken the position that the Division may not  
issue a civil penalty against an employer who violates a Labor Code  
statute, as contrasted with a regulation adopted by the Standards  
Board.  This bill provides clarification that "any violation of this  
division" is included within the acts enforceable by the Division  
and prosecutors.

In a multi-employer setting, the Division has been limited in the  
past by Appeals Board decisions narrowly interpreting the definition  
of employer to be limited to the employer of the exposed employee.   
Following a complaint to the U.S. Department of Labor that  
California failed to meet minimum OSHA requirements, the Director of  
the Department of Industrial Relations adopted a regulation  
establishing  multi-employer responsibility.  Some employers have  
taken the position that the regulation is unenforceable on the  
grounds that Director's regulations are not binding on the Appeals  
Board.  This bill incorporates into statute, the multi-employer  
responsibility regulations and makes them explicitly enforceable.

The current civil penalty enhancements for repeat violations are  
limited by a regulation requiring the past and current violation to  
be at the same fixed establishment, that is, location.  Under this  







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limitation, an employer who is cited for a safety violation  
repeatedly, but at a different address, is not subjected to repeat  
penalty enhancements.  This bill repeals the regulatory limitation.

After years of controversy, litigation, and a legislatively  
established deadline, the Standards Board adopted an ergonomics  
standard.  That standard is subject to ongoing litigation.  A  
superior court has declared parts of the standard, including a  
controversial small-employer exemption, invalid.  The court's order  
has been stayed pending review by an appellate court.   This bill  
would enact specific ergonomic standards and would cover employers  
of all sizes within such standards.

Supporter 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.  They 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.

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 being willing to locate or expand  
their workforce in California.  They also argue that the bill will  
increase unemployment in California.

  Analysis Prepared by  :   Ralph Lightstone / L. & E. / (916) 319-2091 

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