Bill Text: CA AB2321 | 2025-2026 | Regular Session | Amended
Bill Title: Occupational safety and health: investigations.
Sponsorship: Partisan Bill (Democrat 3)
Status: (Enrolled) 2026-08-31 - Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 58. Noes 17.). [AB2321 Detail]
Download: California-2025-AB2321-Amended.html
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Amended
IN
Senate
August 21, 2026 |
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Amended
IN
Senate
August 13, 2026 |
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Amended
IN
Senate
June 29, 2026 |
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Amended
IN
Senate
June 16, 2026 |
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Amended
IN
Assembly
May 18, 2026 |
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Amended
IN
Assembly
March 16, 2026 |
| Introduced by Assembly Member Ortega (Coauthors: Assembly Members Kalra and Lee) |
February 19, 2026 |
LEGISLATIVE COUNSEL'S DIGEST
Existing
For an incident in the County of Alameda or the County of Santa Clara resulting in a death, the bill would require the Alameda County District Attorney or the Santa Clara County District Attorney, based on the county in which the incident occurred, until January 1, 2032, to investigate and prepare cases for prosecution and submit a specified report to the Legislature, subject to an
appropriation by the Legislature of sufficient funding for this purpose. The bill would also require the division to immediately notify the Alameda County District Attorney or the Santa Clara County District Attorney and provide it with certain relevant information about the incident. The bill would also authorize moneys in the Occupational Safety and Health Fund or the Labor and Workforce Development Fund to be expended by the Alameda County District Attorney or the Santa Clara County District Attorney, upon appropriation, for the support of these investigatory activities. By imposing new responsibilities on local officials, this bill would impose a state-mandated local program.
Existing
This bill would
make legislative findings and declarations as to the necessity of a special statute for the County of Alameda and the County of Santa Clara.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if
the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
(a)(1)The Workers’ Compensation Administration Revolving Fund is hereby created as a special account in the State Treasury. Money in the fund may be expended by the department, upon appropriation by the Legislature, for all of the following purposes, and may not be used or borrowed for any other purpose:
(A)For the administration of the workers’ compensation program set forth in this division and Division 4 (commencing with Section 3200), other than the activities financed pursuant to paragraph (2) of subdivision (a) of Section 3702.5.
(B)For the Return-to-Work Program set forth in Section 139.48.
(C)For the
enforcement of the insurance coverage program established and maintained by the Labor Commissioner pursuant to Section 90.3.
(2)The fund shall consist of surcharges made pursuant to subparagraph (A) of paragraph (1) of subdivision (f).
(b)(1)The Uninsured Employers Benefits Trust Fund is hereby created as a special trust fund account in the State Treasury, of which the director is trustee, and its sources of funds are as provided in subparagraph (A) of paragraph (1) of subdivision (f). Notwithstanding Section 13340 of the Government Code, the fund is continuously appropriated for the payment of nonadministrative expenses of the workers’ compensation program for workers injured while employed by uninsured employers in accordance with Article 2 (commencing with Section 3710) of Chapter 4 of Part 1 of Division 4, and shall not be used for any other purpose.
All moneys collected shall be retained in the trust fund until paid as benefits to workers injured while employed by uninsured employers. Nonadministrative expenses include audits and reports of services prepared pursuant to subdivision (b) of Section 3716.1. The surcharge amount for this fund shall be stated separately.
(2)Notwithstanding any other provision of law, all references to the Uninsured Employers Fund shall mean the Uninsured Employers Benefits Trust Fund.
(3)Notwithstanding paragraph (1), in the event that budgetary restrictions or impasse prevent the timely payment of administrative expenses from the Workers’ Compensation Administration Revolving Fund, those expenses shall be advanced from the Uninsured Employers Benefits Trust Fund. Expense advances made pursuant to this paragraph shall be reimbursed in full to the Uninsured Employers Benefits Trust Fund upon
enactment of the annual Budget Act.
(4)Any moneys from penalties collected pursuant to Section 3722 as a result of the insurance coverage program established under Section 90.3 shall be deposited in the State Treasury to the credit of the Workers’ Compensation Administration Revolving Fund created under this section, to cover expenses incurred by the director under the insurance coverage program. The amount of any penalties in excess of payment of administrative expenses incurred by the director for the insurance coverage program established under Section 90.3 shall be deposited in the State Treasury to the credit of the Uninsured Employers Benefits Trust Fund for nonadministrative expenses, as prescribed in paragraph (1), and notwithstanding paragraph (1), shall only be available upon appropriation by the Legislature.
(c)(1)The Subsequent Injuries
Benefits Trust Fund is hereby created as a special trust fund account in the State Treasury, of which the director is trustee, and its sources of funds are as provided in subparagraph (A) of paragraph (1) of subdivision (f). Notwithstanding Section 13340 of the Government Code, the fund is continuously appropriated for the nonadministrative expenses of the workers’ compensation program for workers who have suffered serious injury and who are suffering from previous and serious permanent disabilities or physical impairments, in accordance with Article 5 (commencing with Section 4750) of Chapter 2 of Part 2 of Division 4, and Section 4 of Article XIV of the California Constitution, and shall not be used for any other purpose. All moneys collected shall be retained in the trust fund until paid as benefits to workers who have suffered serious injury and who are suffering from previous and serious permanent disabilities or physical impairments. Nonadministrative expenses include audits and reports of services
pursuant to subdivision (c) of Section 4755. The surcharge amount for this fund shall be stated separately.
(2)Notwithstanding any other law, all references to the Subsequent Injuries Fund shall mean the Subsequent Injuries Benefits Trust Fund.
(3)Notwithstanding paragraph (1), in the event that budgetary restrictions or impasse prevent the timely payment of administrative expenses from the Workers’ Compensation Administration Revolving Fund, those expenses shall be advanced from the Subsequent Injuries Benefits Trust Fund. Expense advances made pursuant to this paragraph shall be reimbursed in full to the Subsequent Injuries Benefits Trust Fund upon enactment of the annual Budget Act.
(d)(1)The Occupational Safety and Health Fund is hereby created as a special account in the State Treasury.
Moneys in the account may be expended by the department, upon appropriation by the Legislature, for support of the Division of Occupational Safety and Health, the Occupational Safety and Health Standards Board, and the Occupational Safety and Health Appeals Board, and the activities these entities perform as set forth in this division, and Division 5 (commencing with Section 6300). Moneys in the account or in the Labor and Workforce Development Fund may also be expended by the Alameda County District Attorney and the Santa Clara County District Attorney, upon appropriation by the Legislature, for support of the activities the Alameda County District Attorney and the Santa Clara County District Attorney perform as set forth in Section 6315.
(2)On and after the effective date of the act amending this section to add this paragraph in the
2013–14 Regular Session of the Legislature, any moneys in the Cal-OSHA Targeted Inspection and Consultation Fund and any assets, liabilities, revenues, expenditures, and encumbrances of that fund, less five million dollars ($5,000,000), shall be transferred to the Occupational Safety and Health Fund. On June 30, 2014, the remaining five million dollars ($5,000,000) in the Cal-OSHA Targeted Inspection and Consultation Fund, or any remaining balance in that fund, shall be transferred to, and become part of, the Occupational Safety and Health Fund.
(e)The Labor Enforcement and Compliance Fund is hereby created as a special account in the State Treasury. Moneys in the fund may be expended by the department, upon appropriation by the Legislature, for the support of the activities that the Division of Labor Standards Enforcement performs pursuant to this division and Division 2 (commencing with Section 200), Division 3 (commencing with Section
2700), and Division 4 (commencing with Section 3200).
(f)(1)(A) Separate surcharges shall be levied by the director upon all employers, as defined in Section 3300, for purposes of deposit in the Workers’ Compensation Administration Revolving Fund, the Uninsured Employers Benefits Trust Fund, the Subsequent Injuries Benefits Trust Fund, the Labor Enforcement and Compliance Fund, and the Occupational Safety and Health Fund. The total amount of the surcharges shall be allocated between self-insured employers and insured employers in proportion to payroll respectively paid in the most recent year for which payroll information is available. The director shall adopt reasonable regulations governing the manner of collection of the surcharges. The regulations shall require the surcharges to be paid by self-insurers to be expressed as a percentage of indemnity paid during the most recent year for which
information is available, and the surcharges to be paid by insured employers to be expressed as a percentage of premium. In no event shall the surcharges paid by insured employers be considered a premium for computation of a gross premium tax or agents’ commission. In no event shall the total amount of the surcharges paid by insured and self-insured employers exceed the amounts reasonably necessary to carry out the purposes of this section.
(B)Assessments shall be levied by the director upon all employers, as defined in Section 3300, as necessary, to collect the aggregate amount determined by the Fraud Assessment Commission pursuant to Section 1872.83 of the Insurance Code. Revenues derived from the assessments shall be deposited in the Workers’ Compensation Fraud Account in the Insurance Fund and shall only be expended, upon appropriation by the Legislature, for the investigation and prosecution of workers’ compensation fraud and the willful
failure to secure payment of workers’ compensation, as prescribed by Section 1872.83 of the Insurance Code. The total amount of the assessment shall be allocated between self-insured employers and insured employers in proportion to payroll respectively paid in the most recent year for which payroll information is available. The director shall promulgate reasonable rules and regulations governing the manner of collection of the assessment. The rules and regulations shall require the assessment to be paid by self-insurers to be expressed as a percentage of indemnity paid during the most recent year for which information is available, and the assessment to be paid by insured employers to be expressed as a percentage of premium. In no event shall the assessment paid by insured employers be considered a premium for computation of a gross premium tax or agents’ commission.
(C)Any employer or insurer on behalf of its insured employers who fails to
timely or completely make payment as required by this section shall pay a penalty of 10 percent of the unpaid amount, unless it is shown that the failure to timely or completely make payment was for reasonable cause and was not the result of willful neglect, in which case the director may waive or reduce the penalty. The director may also waive or reduce the penalty if imposition of the penalty would otherwise be unjust. If the director waives or reduces the penalty, the director has the sole discretion to determine the terms and conditions under which the penalty is waived or reduced. The director shall return any penalty the director determines has been paid by mistake.
(D)(i)Any surcharges or assessments due by an employer or insurer on behalf of its insured employers under this section shall be paid by electronic funds transfer.
(ii)Any employer or
insurer on behalf of its insured employers required to remit payment by electronic funds transfer pursuant to this section who makes payment by other means shall pay a penalty of 10 percent of the payment amount, unless it is shown that the failure to make payment by electronic funds transfer was for reasonable cause and was not the result of willful neglect, in which case the director may waive or reduce the penalty. The director may also waive or reduce the penalty if imposition of the penalty would otherwise be unjust. If the director waives or reduces the penalty, the director has the sole discretion to determine the terms and conditions under which the penalty is waived or reduced. The director shall return any penalty the director determines has been paid by mistake.
(iii)Any employer or insurer on behalf of its insured employers required to remit payment by electronic funds transfer pursuant to this section may request a waiver of the
requirement from the director to allow for an alternate manner of payment. The director has the sole discretion to decide whether to grant a waiver and the sole discretion to determine the terms, conditions, and duration of a waiver.
(iv)For purposes of this section, “electronic funds transfer” has the same meaning as defined in Section 20027.5 of the Government Code, except any reference in that section to the board shall mean the director. “Electronic funds transfer” also includes transfers authorized under Section 11255 of the Government Code.
(E)Penalties collected under this section shall be deposited into the Workers’ Compensation Administration Revolving Fund, except for penalties collected from private self-insured employers, which shall be deposited into the Self-Insurance Plans Fund as provided in subdivision (b) of Section 3702.5.
(2)The surcharge levied by the director for the Occupational Safety and Health Fund, pursuant to subparagraph (A) of paragraph (1), shall not generate revenues in excess of fifty-seven million dollars ($57,000,000) on and after the 2013–14 fiscal year, adjusted for each fiscal year as appropriate to fund any increases in the appropriation as approved by the Legislature, and to reconcile any over/under assessments from previous fiscal years pursuant to Sections 15606 and 15609 of Title 8 of the California Code of Regulations. For the 2013–14 fiscal year only, the revenue cap established in this paragraph shall be reduced by an amount equivalent to the balance transferred from the Cal-OSHA Targeted Inspection and Consultation Fund established in Section 62.7, less any amount of that balance loaned to the State Public Works Enforcement Fund, to the Occupational Safety and Health Fund pursuant to subdivision (d).
(3)The surcharge levied by the director for the Labor Enforcement and Compliance Fund, pursuant to subparagraph (A) of paragraph (1), shall not exceed forty-six million dollars ($46,000,000) in the 2013–14 fiscal year, adjusted as appropriate to fund any increases in the appropriation as approved by the Legislature, and to reconcile any over/under assessments from previous fiscal years pursuant to Sections 15606 and 15609 of Title 8 of the California Code of Regulations.
(4)The regulations adopted pursuant to paragraph (1) to (3), inclusive, shall be exempt from the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).
SECTION 1.
Section 6314 of the Labor Code is amended to read:6314.
(a) To make an investigation or inspection, the chief of the division and all qualified divisional inspectors and investigators authorized by A
Any
SEC. 2.
Section 6315 of the Labor Code is amended to read:6315.
(a) There is within the division a Bureau of Investigations.(j)(1)For any incident in the County of Alameda or the County of Santa Clara involving a violation of standards, orders, special orders, or Section 25910 of the Health and Safety Code that results in a death, the Alameda County District Attorney or the Santa Clara County District Attorney, based on the county in which the incident occurred, shall investigate and prepare cases for the purpose of prosecution. The division shall immediately notify the Alameda County District Attorney or the Santa Clara County District Attorney of that incident
and shall immediately provide the Alameda County District Attorney or the Santa Clara County District Attorney with all of the following:
(A)All initial incident reports.
(B)Any inspection report for an inspection involving a serious violation where there is a death.
(C)Any other division report necessary for the Alameda County District Attorney’s or the Santa Clara County District Attorney’s investigation.
(D)Any other document in the possession of the division that is requested by the Alameda County District Attorney or the Santa Clara County District Attorney for its review or investigation or that the division determines will be helpful to the Alameda County District Attorney or the Santa Clara County District Attorney in its investigation of the case.
(2)The Alameda County District Attorney or the Santa Clara County District Attorney, based on the county in which the incident occurred, shall report to the incident scene within a reasonable time. The bureau is authorized to report to the incident scene but, in any case fitting the criteria of paragraph (1), the Alameda County District Attorney or the Santa Clara County District Attorney shall be responsible for directing the incident investigation.
(3)The Alameda County District Attorney and the Santa Clara County District Attorney shall, by January 1, 2031, separately submit to the Legislature a report that includes, at a minimum, a summary of each of the investigations conducted pursuant to their authority in this subdivision, as well as information about case outcomes, including whether those cases were ultimately prosecuted. The Alameda County District Attorney and the Santa Clara County District Attorney shall file their separate reports in compliance with Section 9795 of the Government Code.
(4)This subdivision shall become operative upon appropriation by the Legislature of sufficient funding for this purpose.
(5)This subdivision shall remain in effect only until January 1, 2032, and, as of that date, is inoperative.
(k)
(l)
SEC. 3.
Section 6315.3 of the Labor Code is amended to read:6315.3.
The bureau shall, not later than February 15, annually submit to the division for submission to the director, and to the Legislature pursuant to Section 9795 of the Government Code, a report on the activities of the bureau, including, but not limited to, the following:(d)
(e)
(f)The total number of vacancies
for bureau positions, each job classification in the prior fiscal year, and any additional positions needed to carry out the bureau’s duties.
SEC. 4.
Section 6322 of the Labor Code is amended to read:6322.
All information reported to or otherwise obtained by the chief or representatives of the chief in connection with any inspection or proceeding of the division that contains or that might reveal a trade secret referred to in Section 1905 of Title 18 of the United States Code, or other information that is confidential pursuant to Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code, shall be considered confidential, except that this information may be disclosed to other officers or employees of the division concerned with carrying out the purposes of the division or when relevant in any proceeding of the division, or to law enforcement officers or prosecutors in any law enforcement investigation or prosecution. The appeals board, standards board, the courts, or the director shall in that type of proceeding issue orders as may be appropriate to protect the confidentiality of trade secrets. Violation of this section is a misdemeanor.SEC. 5.
Section 6409.2 of the Labor Code is amended to read:6409.2.
(a) Whenever a state, county, or local fire or police agency is called to anSEC. 6.
Section 6425 of the Labor Code is amended to read:6425.
(a) Any employer and any employee having direction, management, control, or custody of any employment, place of employment, or of any other employee, who willfully violates any occupational safety or health standard, order, or special order, or Section 25910 of the Health and Safety Code, and that violation caused death to any employee,The Legislature finds and declares, with respect to Sections 1 and 2 of this act, that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique circumstances facing the County of Alameda and the County of Santa Clara.
If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
