BILL ANALYSIS                                                                                                                                                                                                    






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: SB 1386
          SENATOR ALAN LOWENTHAL, CHAIRMAN               AUTHOR:  lowenthal
                                                         VERSION: 3/26/08
          Analysis by: Mark Stivers                      FISCAL:  yes
          Hearing date: April 1, 2008



          SUBJECT:

          Carbon monoxide alarms

          DESCRIPTION:

          This bill requires that a carbon monoxide alarm be installed in  
          every dwelling intended for human occupancy that has a fossil  
          fuel burning appliance, fireplace, or attached garage. 

          ANALYSIS:

          The California Building Standards Law establishes the California  
          Building Standards Commission (BSC) and the process for adopting  
          state building standards.  Under this process, relevant state  
          agencies propose amendments to model building codes, which the  
          BSC must then adopt, modify, or reject.  The Department of  
          Housing and Community Development is the relevant state agency  
          for residential building standards. 

          Building standards are generally prospective in that they only  
          to apply to new construction or to existing buildings that  
          undergo alteration or rehabilitation.  There are a few  
          exceptions to this rule, however.  Current law requires that all  
          water heaters in existing residential structures be braced,  
          anchored, or strapped to resist falling or horizontal  
          displacement due to earthquake motion.  Current law also  
          requires that smoke detectors be installed in all existing  
          multifamily residential dwellings and in single family dwellings  
          which are sold.  To comply with the smoke detector statute, an  
          affected residential property owner must install a smoke  
          detector approved and listed by the State Fire Marshal.  

          With respect to multifamily rental housing, the smoke detector  
          must be operable at the time that a tenant takes possession.   
          The tenant is then responsible for notifying the owner if the  
          smoke detector becomes inoperable.  The owner must correct any  
          reported deficiencies in the smoke detector but is not in  




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          violation of the law if he or she has not received notice of any  
          deficiency.  An owner may enter the unit for the purpose of  
          installing, repairing, testing, and maintaining the detector  
          provided that standard notice is provided.  Failure to comply is  
          an infraction punishable by a maximum fine of $200 for each  
          offense.  

          With respect to single-family housing, a seller must provide a  
          buyer as soon as practicable prior to the sale with a written  
          statement indicating that the home is in compliance with the  
          smoke detector statute.  Real estate agents and other agents to  
          the transaction, however, are not required to monitor or ensure  
          compliance with the law.  Moreover, third-party agents to the  
          transaction are not held liable for any error, inaccuracy, or  
          omission relating to the disclosure, except that a real estate  
          agent may be held liable where he or she participates in the  
          making of the disclosure with actual knowledge of the falsity of  
          the disclosure.  The exclusive remedy for failure to comply is  
          an award of actual damages up to $100.  A transfer of title may  
          not be invalidated on the basis of a failure to comply.  

           This bill  requires that a carbon monoxide alarm be installed in  
          every dwelling intended for human occupancy that has a fossil  
          fuel burning appliance, fireplace, or attached garage.   
          Specifically, the bill:

           Defines a carbon monoxide alarm as an alarm designed to detect  
            carbon monoxide and produce a distinct, audible alarm.  The  
            alarm must conform to specified national consensus standards  
            and come in one of the following forms:  

             ?    Battery-powered.
             ?    Plug-in with a battery backup.
             ?    Hard wired in to the dwelling's electrical system if  
               equipped with a battery backup.  
             ?    Connected to a more comprehensive monitoring system via  
               a panel.
             ?    Combined with a smoke detector into a single unit if the  
               alarms clearly differentiate between smoke and carbon  
               monoxide.  

           Requires the State Fire Marshall, in consultation with the  
            Board of Fire Services and the Air Resources Board, to adopt  
            any regulations or standards necessary to control the quality  
            and installation of carbon monoxide alarms and provides that  
            if standards are updated in the future, a building owner shall  




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            not have to install a new alarm unless a building permit for  
            work in excess of $1000 is requested. 
           Requires the State Fire Marshall to develop a process for the  
            approval and listing of carbon monoxide alarms and allows him  
            or her to charge a fee to manufacturers to cover associated  
            costs.
           Prohibits the marketing, distribution, and sale of carbon  
            monoxide alarms that are not listed and approved by the State  
            Fire Marshall.
           Requires that an approved carbon monoxide alarm be installed  
            in every single-family dwelling, factory-built home,  
            apartment, condominium, duplex, lodging house, dormitory,  
            apartment complex, hotel, motel, condominium, stock  
            cooperative, or time-share unit that has a fossil fuel burning  
            appliance, fireplace, or attached garage according to the  
            following schedule:

             ?    In new units issued a certificate of occupancy after  
               June 1, 2009.
             ?    Upon application for a building permit requested after  
               June 1, 2009, if the value of the work covered by the  
               permit is in excess of $1000. 
             ?    By July 1, 2010 for all other dwelling units.

           Allows local governments to adopt ordinances requiring carbon  
            monoxide alarms in dwellings intended for human occupancy if  
            the ordinance satisfies the minimum requirements of the bill  
            and is consistent with this bill.  
           Provides that failure to install an approved alarm by the  
            required deadline is an infraction.  An owner shall first be  
            given a 30-day notice to correct the violation and thereafter  
            is subject to a fine of $200 for each offense.  Such fines are  
            levied by local fire marshals or fire departments or, in cases  
            where the local government has adopted an ordinance to that  
            effect, by the local building or code enforcement departments.  

           Requires the owner of a rental dwelling to test and maintain  
            carbon monoxide alarms within the unit.  The alarm must be  
            operable at the time that the tenant takes possession. The  
            tenant is then responsible for periodically testing the alarm  
            and notifying the owner if the alarm becomes inoperable. The  
            owner must correct any reported deficiencies in the alarm but  
            is not in violation of the law if he or she has not received  
            notice of any deficiency.
           On and after July 1, 2009, requires a seller of a  
            single-family home, factory-built home, condominium, duplex,  




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            stock cooperative, or time-share unit to provide a buyer as  
            soon as practicable prior to the sale with a written statement  
            indicating that the home is in compliance with the carbon  
            monoxide alarm statute.  
           Provides that real estate agents and other agents to a sales  
            transaction are not required to monitor or ensure compliance  
            with the law.  
           Provides that third-party agents to a sales transaction are  
            not held liable for any error, inaccuracy, or omission  
            relating to the disclosure, except that a real estate agent  
            may be held liable where he or she participates in the making  
            of the disclosure with actual knowledge of the falsity of the  
            disclosure.  
           Provides that the exclusive remedy for failure to disclose is  
            an award of actual damages up to $100 and that a transfer of  
            title may not be invalidated on the basis of a failure to  
            disclose.  
          
          COMMENTS:

           1.Purpose of the bill  .  The Air Resources Board estimates that  
            every year in California carbon monoxide poisoning accounts  
            for between 30 and 40 deaths, between 175 and 700 emergency  
            room and hospital visits, and possibly thousands of illnesses.  
             According to the author, these deaths and illnesses are  
            preventable through the use of carbon monoxide alarms.  The  
            author further states that carbon monoxide alarms provide a  
            vital, highly effective, and low-cost protection against  
            carbon monoxide poisoning, and equipping every home with two  
            carbon monoxide alarms would cut accident-related costs by 93  
            percent.  Sixteen states and a number of large cities have  
            already passed laws mandating the use of carbon monoxide  
            alarms.  The author believes that adopting such a mandate in  
            California will significantly improve public health.

           2.Hearing results  .  On November 27, 2007, the Senate  
            Transportation and Housing Committee conducted an  
            informational hearing on the topic of preventing carbon  
            monoxide hearing.  Upon conclusion of the hearing, committee  
            staff made the following findings:

                 Carbon monoxide poisoning significantly impacts the  
               public health, resulting in dozens of fatalities, hundreds  
               of hospitalizations, and thousands of illnesses in  
               California each year.
                 Carbon monoxide poisoning occurs most frequently as a  




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               result of the improper installation or maintenance of  
               furnaces and stoves in the home, but also is commonly the  
               result of the improper use of grills, generators, and  
               camping equipment indoors or of idling engines in attached  
               garages. 
                 Carbon monoxide poisoning is of equal if not greater  
               concern in older homes due to the existence of older  
               appliances or the lack of central heating.  
                 Carbon monoxide poisoning is generally preventable  
               through better education of consumers and improved  
               maintenance of combustion appliances.
                 When carbon monoxide does enter a home, carbon monoxide  
               alarms can and do alert the residents and prevent or  
               significantly decrease the severity of a poisoning.
                 With respect to the technology used for carbon monoxide  
               alarms, there may be room for improvement.
                 Any legislation to require the installation of carbon  
               monoxide alarms in homes would need to provide guidance on  
               the number of alarms required and where they should be  
               placed.
                 Any legislative mandate must be coupled with a public  
               campaign that educates consumers on the hazards of carbon  
               monoxide poisoning, the requirements of the law, and the  
               need to replace alarms at the end of their useful life.   
               Emergency service providers must also receive training in  
               response protocols for possible carbon monoxide poisoning.

            This bill addresses many of the findings from the hearing in  
            that is seeks to prevent carbon monoxide poisoning through the  
            required use of carbon monoxide alarms, covers older homes,  
            and allows the State Fire Marshall to adopt standards for the  
            quality of alarms and regulations regarding the installation  
            and placement of alarms.  The bill does not include an  
            education component for either consumers or emergency service  
            providers.  

           1.Costs and benefits  .  A quick search on the internet found  
            carbon monoxide alarms ranging in price from $19.50 to $90,  
            with many models offered in the $20-$40 range.  Using this  
            latter range, the total cost of purchasing one alarm for each  
            of the roughly 13 million households in California would range  
            from $260 to $520 million.  It is possible that the  
            regulations adopted pursuant to the bill will require more  
            than one alarm in many residences, which would increase the  
            total cost accordingly.  Carbon monoxide alarms are considered  
            to have a useful life of four to seven years, meaning that  




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            dwelling owners would be required to replace their alarms at  
            some interval.

            On the other hand, a carbon monoxide alarm mandate has the  
            potential to significantly reduce the 30 to 40 deaths that  
            occur each year in California due to unintentional carbon  
            monoxide poisoning.  Additional societal savings would result  
            from reduced hospital visits and disabilities that result from  
            carbon monoxide poisoning and the lost productivity and wages  
            that accompany them. 

           2.Reliability  .  One of the main issues raised by opponents to a  
            mandate is that the current alarm technology is not adequately  
            reliable, resulting in false alarms or no alarm at all.  The  
            most recent study available was conducted in 2006 by Wilson  
            Environmental Associates for Southern California Gas Company,  
            a subsidiary of one of the opponents of this bill.  The study  
            selected two carbon monoxide alarm models based on  
            availability and a high ranking by Consumer Reports magazine,  
            purchased 50 alarms of each model at retail stores, and tested  
            their performance in a lab.  All the alarms from one model  
            performed according to national standards.  With respect to  
            the second model, most of the alarms were triggered well below  
            nationally-established limits, and two became inoperable  
            within the first few days.  The study also retested 134 alarms  
            purchased in 2002 from three manufacturers.  Four years later,  
            38% of these alarms were no longer operable.  The remainder  
            continued to perform according to national standards.

            The reliability question has also affected attempts to require  
            carbon monoxide alarms though national building codes.  The  
            International Code Council, which writes a national model  
            building code, recently rejected two proposals to require the  
            installation of carbon monoxide alarms in new dwellings,  
            citing the lack of clear direction for placement of the alarms  
            and the propensity for false alarm indications.

            Manufacturers respond by stating that alarm technology is  
            constantly improving and that the models on the market today  
            are superior in performance even to those that were available  
            in 2006.  In addition, staff points out while false alarms are  
            an annoyance and generate costs, when it comes to poisoning  
            prevention, any alarm is better than no alarm.

           3.Arguments in opposition  .  Opponents believe that by failing to  
            assign comprehensive compliance monitoring to an appropriate  




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            state or local agency, this bill effectively puts the onus on  
            real estate agents to ensure compliance when a dwelling is  
            sold.  They believe it is unfair to place this burden on  
            private parties to achieve a societal public safety goal.  In  
            addition, because compliance will only be verified at time of  
            sale, opponents believe that this bill will add time and cost  
            to sale transactions when timing and cost are most critical.   
            As an alternative to prevent carbon monoxide poisonings,  
            opponents suggest educating consumers about the dangers of  
            carbon monoxide in the Homebuyers Guide to Environmental  
            Hazards, by including consumer information with the sale of  
            fuels, and by requiring the State Fire Marshall to strengthen  
            standards for heaters and other combustion appliances. 

           4.Technical amendments  . 

           In Section 13263(a)(1) strike "June" and insert "July"
           In Section 13264(d) strike "alarm" and insert "alarm"
           In Section 13266(c)(2) clarify that the requirement to update  
            a carbon monoxide alarm to new standards when a building  
            permit is requested applies only to the individual unit or  
            units covered by the building permit.
           
          1.Double referral  .  The Senate Rules Committee has referred this  
            bill to both the Transportation and Housing Committee and the  
            Committee on Governmental Organization.
          
          POSITIONS: (Communicated to the Committee before noon on  
          Wednesday,                                          March 26,  
          2008)

          SUPPORT:       American Federation of State, County, and  
          Municipal Employees
                         California Coalition for Children's Safety and  
          Health
                         California Fire Chiefs Association
                         California Industrial Hygiene Council
                         California State Firefighters Association
                         Fire Districts Association of California
                         Friends of the Earth
                         International Brotherhood of Electrical Workers,  
          Local 6 (San Francisco)
                         International Brotherhood of Electrical Workers,  
          Local 180 (Napa/Solano)
                         International Brotherhood of Electrical Workers,  
          Local 302 (Contra Costa)




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                         International Brotherhood of Electrical Workers,  
                           Local 340 (Sacramento/Redding)
                         International Brotherhood of Electrical Workers,  
          Local 441 (Orange)
                         International Brotherhood of Electrical Workers,  
          Local 551 (North Coast)
                         International Brotherhood of Electrical Workers,  
          Local 595 (
                         International Brotherhood of Electrical Workers,  
          Local 617 (San Mateo)
                         National Fire Protection Association
                         Residential Fire Safety Institute
                         Safe Kids California
                         State Association of Electrical Workers

               OPPOSED:  California Association of Realtors