BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1386
                                                                  Page  1

          Date of Hearing:   June 18, 2008

               ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
                                 Lori Saldana, Chair
                   SB 1386 (Lowenthal) - As Amended:  May 27, 2008

           SENATE VOTE  :   27-9
           
          SUBJECT  :   Carbon monoxide 

           SUMMARY  :   Creates the Carbon Monoxide Poisoning Prevention Act  
          of 2008 (the Act).  Specifically,  this bill  :   

          1)Makes legislative findings regarding the number of deaths due  
            to carbon monoxide (CO) poisoning, the chronic health effects  
            of prolonged exposure to CO, and the benefit of equipping  
            homes with CO detectors.

          2)Defines a "carbon monoxide device" as a device that meets all  
            of the following requirements:

          a)detects CO  and produces a distinct audible alarm;

          b)is battery powered, a plug in device with a battery backup or  
            installed as recommended by Standard 720 of the National Fire  
            Protection Association that is either wired into the  
            alternating current power line of the dwelling unit with a  
            secondary battery backup or connected to a system via a panel;

          c)has been tested and certified pursuant to the requirements of  
            the American National Standards Institute (ANSI) and  
            Underwriters Laboratories Inc. (UL), by a nationally  
            recognized testing laboratory as specified. 

          d)if combined with a smoke detector the device must:

               i.          meet the standards that apply to CO alarms as  
                described in the Act;
               ii.         meet the standards that apply to smoke  
                detectors in Section 13113.7; and
               iii.        emit an alarm or voice warning in a manner that  
                clearly differentiates between a CO alarm and a smoke  
                detector warning.   
                
          3)Defines "dwelling unit intended for human occupancy" to  








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            include single family dwelling, factory built home, duplex,  
            lodging house, dormitory apartment complex, hotel, motel,  
            condominium, stock cooperate, time-share project or dwelling  
            unit of a multi-family complex.

          4)Defines "fossil fuel" to mean coal, kerosene, oil, wood, fuel  
            gases, and other petroleum or hydrocarbon product which emit  
            carbon monoxide as a byproduct of combustion. 

          5)Requires a CO device that has been approved by the State Fire  
            Marshal to be installed in any dwelling intended for human  
            occupancy that has a fossil fuel burning heater or appliance,  
            fireplace, or an attached garage within the earliest  
            applicable timeframe as follows:

             a)   For a dwelling that is issued a certificate of occupancy  
               or an owner's application for a permit for alterations,  
               repairs or additions exceeding $1,000 on or after July 1,  
               2009;

             b)   For a dwelling built on or after July 1, 2010;

             c)   For all dwellings sold on or after July 1, 2010.

          6)Provide a violation of this Act is punishable by a maximum  
            fine of $200 for each offense.

          7)Requires a resident of a single-family home to receive a  
            30-day notice to correct a violation of this Act prior to  
            being assessed a fine. 

          8)Allows a local jurisdiction to enact an ordinance requiring CO  
            devices that is consistent with and satisfies the minimum  
            requires of the Act. 

          9)Requires an owner of rental units to test and maintain the CO  
            device in that dwelling unit. 

          10)Allows an owner to enter into a unit to test and maintain a  
            CO device. 

          11)Requires an owner to give a tenant twenty-four hours notice,  
            except in an emergency, before entering the unit to install,  
            repair, test or maintain a CO device.









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          12)Requires a tenant to notify the manager or owner of a unit if  
            the CO device does not work.

          13)Provides that an owner or authorized agent is not in  
            violation of the Act if he or she does not receive notice that  
            the device is not working.

          14)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, with a written  
            statement indicating that the home is in compliance with the  
            CO alarm statute.  

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

          16)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. 

          17)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.  

          18)Requires the State Fire Marshall in consultation with the  
            State Board of Fire Services and the State Air Resources Board  
            to adopt any regulations or standards necessary to control the  
            quality and installation of CO devices. 

          19)Requires the State Fire Marshall to adopt a process to  
            approve and list CO devices. 

          20)Authorizes the State Fire Marshall to charge an appropriate  
            fee to the manufacturer of a CO device to cover the cots  
            associated with the approval and listing of CO devices. 

          21)Prohibits a person from marketing, distributing, offering for  
            sale or selling any CO device in the state that has not been  
            approved and listed by the State Fire Marshall. 








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          22)Provides if the State Fire Marshall adopts regulations or  
            standards for a CO device after July 1, 2010 and an owner has  
            already installed an alarm, the owner will not be required to  
            install a new device meeting the new regulations until the  
            owner applies for a permit to make repairs or alternations to  
            the dwelling that will exceed $1,000.

           EXISTING LAW  

          1)Required on and after January 1, 1986, all single-family  
            dwellings and factory-built housing to have operable smoke  
            detectors approved and listed by the State Fire Marshall  
            (Health & Safety Code Section 13113.8) 

          2)Required on or after January 1, 1986, a seller of a  
            single-family home 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 regulations established by  
            the State Fire Marshall regarding smoke detector installation  
            (Health & Safety Code Section 13113.8) 

          3)California Building Standards Law establishes the California  
            Building Standards Commission (BSC) and the process for  
            adopting state building standards. (Health & Safety Code  
            Section 18935 et al.) 

           FISCAL EFFECT  :   Unknown 

           COMMENTS  :  

          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  
          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  








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          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  
          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.  

           The Effects of Carbon Monoxide (CO) 

           CO is an odorless, colorless, deadly gas.  At lower levels of  
          exposure it can cause health problems such as headaches,  
          fatigue, nausea, dizzy spells, confusion and irritability.   
          Later stages of CO poisoning can cause vomiting, loss of  
          consciousness and eventually brain damage or death.  CO is  
          produced by furnaces, common household appliances, vehicles,  
          generators, fireplaces and other systems that are powered by the  
          burning of fuel such as natural gas propane, gasoline, oil and  
          wood. 









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          The Consumer Product Safety Commission has determined that older  
          adults more frequently have pre-existing health conditions that  
          affect the heart, lungs and circulatory system and the presence  
          of one or more of those conditions lowers a victim's tolerance  
          and increase the risk of a fatal CO exposure.

          In 2001 twenty-five percent of the CO poisoning deaths from  
          home-related products were adults 65 years and older. The Carbon  
          Monoxide Health and Safety Association has determined that the  
          combined cost of CO accidents, lost productivity and lost wages  
          amounts to $8.8 billion a year.  The California Air Resources  
          Board has determine that 30-40 "avoidable deaths" occur just in  
          California each year, on average, due to unintentional CO  
          poisoning.  Additionally, there are 175-700 "avoidable"  
          emergency room visits and hospitalizations in California alone.   
            

          In 1996, the city of Chicago became the first jurisdiction to  
          adopt a mandate for CO alarms. In 1996, the city required all  
          residential structures with fossil fuel-burning appliances to  
          install CO alarms within 40 feet of all sleeping areas.  Since  
          then 15 states, 11 major municipalities have adopted laws to  
          mandate the installation of CO alarms in homes or other types of  
          structures. 

           The purpose of this bill: 

           SB 1386 would require a CO detector to be installed in all new  
          construction beginning July 1, 2010 and all units at the time of  
          sale beginning July 1, 2010.  All dwelling units that are issued  
          a certificate of occupancy or an owner's application for a  
          permit for alterations, repairs, or additions, exceeding $1000  
          on our after July 1, 2009 would be required to install a CO  
          device.     



           Feedback from Informational Hearing  : 

          This committee held a joint informational hearing with the  
          Senate Committee on Transportation and Housing in November 2007,  
          "Preventing Carbon Monoxide Poisoning" to gather information on  
          the dangers and prevalence of CO poisoning, to explore  
          prevention strategies and to discuss whether or not California  
          should require the installation of CO monitors in dwellings.    








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          Witnesses discussed options to prevent CO poisoning including  
          education, inspection, marketing and state mandates.

          As a result of the hearing several themes emerged:

          1)CO poisoning significantly impacts the public health,  
            resulting in dozens of fatalities, hundreds of  
            hospitalizations, and thousands of illnesses in California  
            each year.
          2)CO 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. 
          3)CO poisoning is of equal if not greater concern in older homes  
            due to the existence of older appliances or the lack of  
            central heating.  
          4)CO poisoning is generally preventable through better education  
            of consumers and improved maintenance of combustion  
            appliances.
          5)When CO does enter a home, CO alarms can alert the residents  
            and prevent or significantly decrease the severity of a  
            poisoning.
          6)With respect to the technology used for carbon monoxide  
            alarms, there may be room for improvement.
          7)Any legislation to require the installation of CO alarms in  
            homes would need to provide guidance on the number of alarms  
            required and where they should be placed.

          Two issues that bear further discussion are the cost of CO  
          devices and their reliability.   CO devices are available  
          ranging in price from $20 to $90 and can be purchased in  
          hardware stores including Lowe's and Home Depot of on the  
          Internet.  If each of the 13 million household in the state  
          installed one device in their home at the lower range of price  
          scale the cost would be $260 million.  CO devices have an  
          average useful life of four to seven years. 

          Another issue raised at the informational hearing was the  
          reliability of CO devices on the market today.  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.  The study selected two CO  








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          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.  

          In response to concerns abut the reliability of CO devices on  
          the market supporters of this bill point out that the technology  
          is constantly improving and that a false alarm is better than no  
          alarm at all. 
           Opposition  :

          The California Association of Realtors (CAR) is opposed to  
          requiring that carbon monoxide device be installed at the point of  
          sale.  According to CAR, "even in a robust housing market, time of  
          sale mandates take too long.  CAR's Research and Economics  
          department modeled projected housing turnover for the entire state  
          and found that by 2050, less than 25% of California's homes will  
          transfer ownership. Assuming that CO is a serious threat to public  
          safety, then time of sale is the worst possible approach to  
          addressing this threat. While C.A.R. supports public safety, this  
          mandate unnecessarily burdens home sellers and real estate  
          professionals with the responsibility to police a legislatively  
          imposed public safety mandate. Additionally, because the only  
          compliance requirement is verification upon sale, this mandate  
          also creates additional costs and obligations for home sellers at  
          a point in the transaction where timing and cost are critical." 

           Staff comments  : 

          The committee may wish to consider from a public safety  
          perspective it would be better if all homes were required to have  
          CO devices installed; however, as an alternative requiring new  
          homes and those sold to have alarms will at least provide  
          protection to a portion of Californians.  Additionally as  
          consumers learn more about the risks of CO poisoning and the  
          availability of CO alarms through friends and family who purchase  
          homes or complete remodels it is possible that their use may  
          become common practice.   








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           Committee Amendments: 
           
          In order to insure that CO devices are installed in homes in an  
          appropriate manner using universal standards, the committee may  
          wish to amend the bill to require the Department Housing and  
          Community Development in consultation with the Office of the  
          State Fire Marshall propose building standards governing the  
          installation of carbon monoxide devices during the Building  
          Standards Commission 2010 Building Code adoption cycle.   The  
          date for requiring that CO devices are installed newly  
          constructed homes would be pushed back to 2011 to correspond  
          with the building code adoption cycle.   

          The amendments below address the above recommendation and make  
          some technical and clarifying corrections to the bill. 

          1)On page 4, line 37, strike "2009" and insert "2011"

          2)On page 4, line 39, strike "2010" and insert "2011"

          3)On page 4, line 40, after "all" insert "single family" 

          4)On page 4 after line 40, create "(4) For all multi dwelling  
            unit building or buildings on or after July 1, 2011."

          5)On page 4 after new section (4), create section "(5) The  
            effective date for units included in paragraph (1), (2) and  
            (4) of this section shall coincide with the effective date of  
            the 2010 California Building Code (Part 2, Title 24, CCR) or  
            July1, 2011 whichever comes first."

          6)On page 5, line 4, strike "a resident of a single-family  
            dwelling" and insert "property owners"

          7)On page 5, line 8, strike ", and" 

          8)On page 5, line 9, strike "satisfies the minimum requirements  
            of,"

          9)On page 5, line 11, strike "test and"

          10)  On page 5, line 12, insert after "unit" consistent with  
            this chapter."









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          11)  On page 5, line 35 strike "2012" and insert "2010" 

          12)  On page 7, strike lines 29-33

          13)  On page 7, line 29, insert "132663. (a) (1) The California  
            Department of Housing and Community Development shall, after  
            consultation with the Office of the State Fire Marshall  
            propose building standards meeting the intent of this section  
            for adoption consideration by the Building Standards  
            Commission during the 2010 Building Code adoption cycle."

          14)  On page 7, line 36, after "Marshall" insert "and HCD"

          15)  On page 8, line 5, strike "before" and insert "after"

          16)  On page 8, line 5, strike "2010" and insert "2011"

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          California Coalition for Children Safety and Health (sponsor)
          American Federation of State, County and Municipal Employees  
          (AFSCME)
          AARP 
          California Alarm Association
          California Fire Chiefs Association
          California Industrial Hygiene Council
          California Retailers Association
          California State Firefighters' Association, Inc.
          California Rural Legal Assistance Foundation
          Carbon Monoxide Safety and Health Association 
          Congressional Fire Services Institute 
          Friends of the Earth
          International Brotherhood of Electrical Workers, Local Union 6,  
          180, 302, 551, and 617
          Kidde Manufacture
          National Fire Protection Association
          The Home Depot 
          Safe Kinds California
            Sempra Energy 
          State Association of Electrical Workers
          Western Center on Law & Poverty 
          One individual (Hillsborough)









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           Opposition 
           
          California Association of Realtors (CAR) 

           Analysis Prepared by  :    Lisa Engel / H. & C.D. / (916) 319-2085