BILL ANALYSIS                                                                                                                                                                                                    






                                                       Bill No:  SB  
          1386
          
                 SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
                           Senator Dean Florez, Chair
                           2007-2008 Regular Session
                                 Staff Analysis



          SB 1386  Author:  Lowenthal
          As Proposed to be Amended:  April 15, 2008
          Hearing Date:  April 15, 2008
          Consultant:  Art Terzakis


                                     SUBJECT  
                                Carbon monoxide

                                   DESCRIPTION
           
          SB 1386 enacts the "Carbon Monoxide Poisoning Prevention  
          Act of 2008" which requires that carbon monoxide detection  
          devices be installed in every residential dwelling by July  
          1, 2010 to protect Californians against carbon monoxide  
          poisoning.  Specifically, this measure:

          1.  Makes legislative findings and declarations relative to  
            the fact that carbon monoxide is the leading cause of  
            accidental poisoning deaths in the United States and that  
            carbon monoxide alarm devices provide a vital, highly  
            effective, and low-cost protection against such danger  
            that should be made available to every home in  
            California.     

          2.  Requires that an approved carbon monoxide device 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 in  
            accordance with the following schedule:  (a) On or after  
            July 1, 2009, for dwelling units issued a certificate of  
            occupancy, or an owner's application for a permit for  
            alterations, repairs, or additions, exceeding $1,000 and  
            (b) On or before July 1, 2010 for all other dwelling  
            units.



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          3.  Provides that violation of these provisions is an  
            infraction punishable by a maximum fine of $200 for each  
            offense.  Also, provides that a resident of a  
            single-family dwelling shall receive a 30-day notice to  
            correct prior to being assessed the fine. 

          4.  Defines a "carbon monoxide device" for purposes of the  
            bill and requires the State Fire Marshall (SFM), 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 devices and provides that if standards  
            are updated in the future, a building owner shall not  
            have to install a new alarm unless a building permit for  
            work in excess of $1,000 is requested.
          5.  Requires the SFM to develop a process for the approval  
            and listing of carbon monoxide devices and allows the SFM  
            to assess a fee on manufacturers to cover associated  
            costs.

          6.  Prohibits the marketing, distribution, and sale of  
            carbon monoxide devices that are not listed and approved  
            by the SFM.

          7.  Allows local governments to adopt ordinances requiring  
            carbon monoxide devices in dwellings intended for human  
            occupancy if the ordinance is consistent with and  
            satisfies the minimum requirements of this bill.

          8.  Requires the owner of a rental dwelling to test and  
            maintain carbon monoxide devices within the unit.  Also,  
            provides that the device must be operable at the time  
            that the tenant takes possession and the tenant shall be  
            responsible for periodically testing the device and  
            notifying the owner if the device becomes inoperable.  In  
            addition, the owner must correct any reported  
            deficiencies in the device but is not in violation of the  
            law if he or she has not received notice of any  
            deficiency.

          9.  On and after July 1, 2009, requires a seller of a  
            single-family home, factory-built home, condominium,  
            duplex, stock cooperative, or time-share unit to provide  
            a buyer as soon as practicable prior to the sale a  
            disclosure statement indicating that the home is in  




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            compliance with the carbon monoxide device statute.

          10. Provides that real estate agents and other agents to a  
            sales transaction are not required to monitor or ensure  
            compliance with the law.  Also, 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.

          11. 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.
                      
                                   EXISTING LAW

           The California Building Standards Law establishes the  
          California Building Standards Commission (BSC) and a  
          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 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  




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          owner must correct any reported deficiencies in the smoke  
          detector but is not in 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.

                                    BACKGROUND
           
           Purpose of SB 1386:   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 alarm devices.  The author further states that  
          carbon monoxide devices provide a vital, highly effective,  
          and low-cost protection against carbon monoxide poisoning,  
          and equipping every home with two carbon monoxide devices  
          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 devices.  The  
          author believes that adopting such a mandate in California  
          will significantly improve public health.

          The author notes that this bill addresses a number of  
          findings resulting from an informational hearing conducted  
          by the Senate Transportation and Housing Committee in  
          November 2007 on the topic of preventing carbon monoxide  




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          poisoning.  Specifically, this bill seeks to prevent carbon  
          monoxide poisoning through the required use of carbon  
          monoxide devices in various dwellings.  It covers new and  
          older homes and allows the State Fire Marshall to adopt  
          standards for the quality of such devices, as well as  
          regulations regarding the installation and placement of  
          carbon monoxide devices.  The author notes that this bill  
          does not include an education component for either  
          consumers or emergency service providers.

           Informational Hearing:   As noted above, the Senate  
          Transportation and Housing Committee conducted an  
          informational hearing on this topic in November 2007.  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 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 devices 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 devices, there may be room for improvement.

                 Any legislation to require the installation of  
               carbon monoxide devices in homes would need to provide  
               guidance on the number of devices required and where  




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               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 such devices at the end  
               of their useful life.  Emergency service providers  
               must also receive training in response protocols for  
               possible carbon monoxide poisoning.
           
           Device Costs:   Research conducted by the Senate  
          Transportation and Housing Committee staff found that  
          carbon monoxide devices range 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 device for  
          each of the roughly 13 million households in California  
          would range from $260 to $520 million.  It is possible that  
          regulations adopted pursuant to this bill will require more  
          than one device in many residences, which would increase  
          the total cost accordingly.  Carbon monoxide devices are  
          considered to have a useful life of four to seven years,  
          meaning that dwelling owners would be required to replace  
          devices at some interval.
           
           Benefits/Savings:   Proponents emphasize that a carbon  
          monoxide device 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.
           
           Product Reliability:   According to information provided by  
          Senate Transportation and Housing Committee staff, the most  
          recent study available regarding product reliability was  
          conducted in 2006 by Wilson Environmental Associates for  
          Southern California Gas Company.  The study selected two  
          carbon monoxide device models based on availability and a  
          high ranking by Consumer Reports magazine. Fifty devices of  
          each model were purchased at retail stores and tested in a  
          lab.  All the devices from one model performed according to  
          national standards.  With respect to the second model, most  
          of the devices were triggered well below  
          nationally-established limits, and two became inoperable  
          within the first few days.  The study also retested 134  




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          devices purchased in 2002 from three manufacturers.  Four  
          years later, 38% of these devices were no longer operable.   
          The remainder continued to perform according to national  
          standards.
           
          Product reliability is an issue raised by opponents - it  
          has also affected attempts to require carbon monoxide  
          devices through 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 devices in new dwellings, citing the  
          lack of clear direction for placement of the devices and  
          the propensity for false alarm indications.
           
          Manufacturers have responded to these concerns by stating  
          that the technology is constantly improving and that the  
          models on the market today are superior in performance even  
          to those that were available in 2006.  The author of this  
          bill points out that while false alarms are an annoyance  
          and generate costs, when it comes to poisoning prevention,  
          any such device that is installed is better than no device.
           
           Arguments in Opposition:   Writing in opposition, the  
          California Association of Realtors believes that by failing  
          to assign comprehensive compliance monitoring to an  
          appropriate state or local agency, this bill effectively  
          puts the onus on real estate agents to ensure compliance  
          when a dwelling is sold.  Opponents argue that 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  
          contend that this bill will create additional costs and  
          obligations for home sellers at a point 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.
           
           Technical Amendments:   The following technical amendments  
          are reflected in the analysis and will be offered by the  
          author in committee on April 15th:
           
          Amendment #1 - Page 5, line 5, strike "June 1, 2009" and  




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          insert "July 1, 2009"

          Amendment #2 - Page 6, line 5, strike "alarm" and insert  
          "device"

          Amendment #3 - Page 8, line 24, after "standards" insert  
          "within an individual dwelling unit"

          Amendment #4 - Page 8, line 26, strike "the owner's  
          dwelling units" and insert "that dwelling unit"
           SUPPORT:   

          AARP
          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 Retailers Association
          California State Firefighters Association
          Carbon Monoxide Safety and Health Association
          Fire Districts Association of California
          Friends of the Earth
          Home Depot
          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)
          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  
          (Alameda/San Joaquin/Calaveras)  
           International Brotherhood of Electrical Workers Local 617  
          (San Mateo)
          KIDDE
          National Electrical Manufacturers Association
          National Fire Protection Association
          Residential Fire Safety Institute
          Safe Kids California
          Sempra Energy




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          State Association of Electrical Workers
          Western Center on Law & Poverty
           
          OPPOSE:   

          California Association of Realtors

           FISCAL COMMITTEE:   Senate Appropriations Committee

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