BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1386
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          SENATE THIRD READING
          SB 1386 (Lowenthal)
          As Amended August 12, 2008
          Majority vote 

           SENATE VOTE  :27-9  
           
           HOUSING             5-1         APPROPRIATIONS      12-4        
           
           ----------------------------------------------------------------- 
          |Ayes:|Saldana, Garcia, Hancock, |Ayes:|Leno, Caballero, Davis,   |
          |     |Mullin, Swanson           |     |DeSaulnier, Furutani,     |
          |     |                          |     |Huffman, Karnette,        |
          |     |                          |     |Krekorian, Lieu, Ma,      |
          |     |                          |     |Nava, Solorio             |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Sharon Runner             |Nays:|Walters, Emmerson, La     |
          |     |                          |     |Malfa, Nakanishi          |
           ----------------------------------------------------------------- 

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

          1)Makes legislative findings regarding the number of deaths due  
            to 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; and, 








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          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  
            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.  Exempts a property owned or  
            leased by the state or a local government agency. 

          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 all existing single-family dwelling units intended  
               for human occupancy on or before July 1, 2010;

             b)   For all new single-family and multi-family residential  
               construction one year after the effective date of the 2010  
               edition of the California Building Standards (CBS) Code of  
               Regulations which include regulations on carbon monoxide  
               devices; and, 

             c)   For all other dwellings intended for human occupancy on  
               the first January 1 or July 1 that occurs more than two  
               years after the publication date of the 2010 edition of the  
               CBS Code of Regulations. 









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          6)Provides 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 or amend an ordinance  
            requiring CO devices that is consistent with 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.

          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)Requires effective two years after the California Building  
            Standards Commission (CBSC) adopts standards for the  
            installation of carbon monoxide devices any seller of a  
            single-family home, factory-built home, condominium, duplex,  
            stock cooperative, or time-share unit must disclose to the  
            prospective buyer in writing whether or not the home is in  
            compliance with the CO alarm statute. 

          15)Provides the disclosure statement may be included in existing  
            transactional documents including but not limited to a real  
            estate sales contract or recipe for deposit or a transfer  
            disclosure statement. 
          
          16)Provides that real estate agents and other agents to a sales  
            transaction are not required to monitor or ensure compliance  
            with the law.  









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          17)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. 

          18)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.  

          19)Requires the Department of Housing and Community Development  
            (HCD) to in consultation with the State Fire Marshal (SFM) to  
            develop and propose building standards for CO devices to the  
            CBSC during the 2010 CBS Code adoption cycle or later if HCD  
            determines there are not a sufficient quantity of tested and  
            approved CO devices available to meet the requirements of the  
            Act.

          20)Requires the SFM to develop a process to approve and list  
            carbon monoxide devices and authorizes the State Fire Marshal  
            to charge a fee to cover the cost of approval. 

          21)Prohibits a person from marketing or selling a CO device that  
            has not been approved by the SFM. 

          22)Requires the SFM to develop a process to certify and  
            decertify CO devices which shall consider the effectiveness  
            and reliability of the devices including their propensity to  
            record false alarms. 

          23)Requires the SFM to charge an appropriate fee to  
            manufacturers of CO device to cover the cots associated with  
            the approval and listing of CO devices and the costs of HCD  
            for developing and proposing building standards for CO  
            devices. 

          24)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 SFM. 

          25)Provides if the HCD or the CSBC adopts regulations or  
            standards for a CO device after July 1, 2010 and an owner has  








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            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.

          26)Combines the seller disclosure requirements for a smoke  
            detector, carbon monoxide device, and water heater strapping  
            and bracing in a real estate transaction on to the same forms.  
              

           FISCAL EFFECT  :  One time costs of $116,000 to HCD and $39,000 to  
          the SFM for the development of regulations pertaining to  
          installation of carbon monoxide devices.  Costs would be partly  
          offset by newly authorized fees levied on manufacturers of  
          carbon monoxide devices.

           COMMENTS  :  The California Building Standards Law establishes the  
          CBSC and the process for adopting state building standards.   
          Under this process, relevant state agencies propose amendments  
          to model building codes, which the CBSC must then adopt, modify,  
          or reject.  HCD 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 SFM.  

          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/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  








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          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/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.  

          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. 

          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, 25% 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.    









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          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. 

          SB 1386 would require HCD to develop building standards in  
          consultation with the State Fire Marshall for the installation  
          of CO devices and submit those standards to the CBSC for the  
          2010 code adoption cycle.  All existing single family homes  
          would be required to have a CO device by July 1, 2010.   All new  
          single family homes and multiple-family homes would be required  
          to have a CO device installed one year after the effective date  
          of the 2010 CBSC regulations governing CO devices.  The SFM  
          would be responsible for developing a process for approving CO  
          devices and would be authorized to charge a fee to manufactures  
          of CO devices to cover the cots of approving and listing CO  
          devices. 

          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.  


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



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