SB 740 Applies Skilled & Trained Workforce Requirements to Hazardous Material Manufacturers
In 2013, the legislature adopted Senate Bill 54 (“SB 54”), which required oil refineries to hire construction contractors that would commit to employing a “skilled and trained workforce,” as defined by the statute, and to hiring subcontractors that would also commit to employing a skilled and trained workforce.
This year, the legislature extended SB 54’s requirements to hazardous material manufacturers by adopting Senate Bill 740 (“SB 740”). SB 740 becomes effective on January 1, 2024. It will apply to contracts awarded, extended or renewed on or after the effective date.
SB 740 applies to the owner or operator of a stationary source that is engaged in manufacturing hydrogen, biofuels or certain specified chemicals, or in capturing, sequestering, or using carbon dioxide in specified conditions. Such owners or operators must require all contractors and subcontractors for construction, alteration, demolition, installation, repair, or maintenance to employ a “skilled and trained workforce,” meaning a workforce that meets both of the following criteria:
(A) All workers are either registered apprentices or skilled journeypersons; and
(B) At least 60% of the skilled journeypersons are graduates of an apprenticeship program for the applicable occupation.
A “registered apprentice” means a person who is currently registered in a state-approved apprenticeship program.
A “skilled journeyperson” means a person who has either graduated from an apprenticeship program or has as many hours of on-the-job experience as would be required to graduate from an apprenticeship program. This definition is not limited to state-approved apprenticeship programs. A “skilled journeyperson” can also be a graduate of a federally approved apprenticeship program. In addition, a “skilled journeyperson” must also be paid at least the prevailing wage rate and have completed at least 20 hours of advanced safety training for workers at high hazard facilities.
Just like with SB 54, SB 740 is intended to improve safety and incentivize the employment of skilled, well-trained union members in a potentially hazardous work environment. Please direct any questions regarding this new law to your legal counsel.