BILL NUMBER: SB 2098 CHAPTERED 09/06/02 CHAPTER 386 FILED WITH SECRETARY OF STATE SEPTEMBER 6, 2002 APPROVED BY GOVERNOR SEPTEMBER 5, 2002 PASSED THE ASSEMBLY AUGUST 24, 2002 PASSED THE SENATE MAY 29, 2002 AMENDED IN SENATE MAY 23, 2002 INTRODUCED BY Committee on Health and Human Services (Senators Ortiz (Chair), Chesbro, Escutia, Figueroa, Kuehl, Polanco, and Vasconcellos) APRIL 1, 2002 An act to amend Sections 20, 26140, 26142, 26143, 26145, and 38081.1 of the Health and Safety Code, relating to health services. LEGISLATIVE COUNSEL'S DIGEST SB 2098, Committee on Health and Human Services. Health. (1) Existing law, the Toxic Mold Protection Act of 2001, imposes various disclosure requirements on landlords, sellers, renters, transferors, and tenants of commercial or industrial real property with respect to the existence of mold conditions. Existing law requires the State Department of Health Services to adopt standards and develop guidelines regarding exposure limits and remediation of toxic mold. This bill would provide that these disclosure requirements shall not apply until the January 1 or July 1 that occurs at least 6 months after the department adopts the standards and develops the guidelines. (2) Existing law, the State Department of Health Services Cooperative Agreement Act, provides for the establishment of cooperative agreements between the department and other public and private entities for the purposes of, among other things, simplifying the administration of public health programs by the department. The act requires cooperative agreements to be subject to review and approval by the Department of General Services with certain exceptions. These exceptions include, for allowable cost agreements, changes in line item budgets of up to 10% of the annual total, not to exceed $50,000, so long as the contract does not increase or decrease. This bill would increase the amount of changes permissible with respect to these line item budgets to 15% of the annual total, not to exceed $100,000. It would also require that this maximum amount be assessed annually and automatically adjusted in accordance with cost-of-living indexes. (3) This bill, in addition, would also make various technical, nonsubstantive changes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 20 of the Health and Safety Code is amended to read: 20. "State department" or "department" means State Department of Health Services. SEC. 2. Section 26140 of the Health and Safety Code is amended to read: 26140. (a) Subject to subdivisions (b), (c), and (d), a seller or transferor of commercial or industrial real property shall provide written disclosure to prospective buyers as soon as practicable before the transfer of title when the seller or transferor knows of the presence of mold, both visible and invisible or hidden, that affects the unit or building and the mold either exceeds permissible exposure limits to molds established by subdivisions (a), (b), and (c) of Section 26103 or poses a health threat, according to the department's guidelines as developed pursuant to Section 26105. (b) A seller or transferor of commercial or industrial real property shall be exempt from providing written disclosure pursuant to this subdivision if the presence of mold was remediated according to the mold remediation guidelines developed by the department pursuant to Section 26130. (c) A commercial or industrial real property seller shall not be required to conduct air or surface tests of units or buildings to determine whether the presence of molds exceeds the permissible exposure limits to molds established by subdivisions (a) and (b) of Section 26103. (d) The requirements of this section shall not apply until the first January 1 or July 1 that occurs at least six months after the department adopts standards pursuant to Sections 26103 and 26105 and develops guidelines pursuant to Section 26130. SEC. 3. Section 26142 of the Health and Safety Code is amended to read: 26142. (a) Any tenant of a commercial or industrial real property who knows that mold is present in the building, heating system, ventilating or air-conditioning system, or appurtenant structures, or that there is a condition of chronic water intrusion or flood, shall inform the landlord of this knowledge in writing within a reasonable period of time. The tenant shall make the property available to the landlord or his or her agents for appropriate assessment or remedial action as soon as is reasonably practicable if the landlord is responsible for maintenance of the property. Nothing in this section is intended to any way affect existing duties and obligations of residential tenants and landlords. (b) The requirements of this section shall not apply until the first January 1 or July 1 that occurs at least six months after the department adopts standards pursuant to Sections 26103 and 26105 and develops guidelines pursuant to Section 26130. SEC. 4. Section 26143 of the Health and Safety Code is amended to read: 26143. (a) Commercial and industrial landlords, who know or have notice that mold is present in the building, heating system, ventilating or air-conditioning system, or appurtenant structures, or that there is a condition of chronic water intrusion or flood, have an affirmative duty, within a reasonable period of time, to assess the presence of mold or condition likely to result in the presence of mold and conduct any necessary remedial action. (b) The requirements of this section shall not apply until the first January 1 or July 1 that occurs at least six months after the department adopts standards pursuant to Sections 26103 and 26105 and develops guidelines pursuant to Section 26130. SEC. 5. Section 26145 of the Health and Safety Code is amended to read: 26145. (a) Any tenant of a commercial or industrial real property who knows or is informed that mold is present in the building, heating system, ventilating or air-conditioning system, or appurtenant structures, or that there is a condition of chronic water intrusion or flood, and is responsible for maintenance of the property shall inform the landlord in writing of that knowledge as soon as is reasonably practicable and shall correct the condition in compliance with the terms of the contract with the landlord. (b) The requirements of this section shall not apply until the first January 1 or July 1 that occurs at least six months after the department adopts standards pursuant to Sections 26103 and 26105 and develops guidelines pursuant to Section 26130. SEC. 6. Section 38081.1 of the Health and Safety Code is amended to read: 38081.1. (a) Cooperative agreements shall be subject to review and approval by the Department of General Services pursuant to Chapter 2 (commencing with Section 10290) of Part 2 of Division 2 of the Public Contract Code, except as follows: (1) Changes in the scope of work approved under paragraph (2) of subdivision (b) of Section 38077. (2) For allowable cost agreements, changes in line item budgets of up to 15 percent of the annual total, not to exceed one hundred thousand dollars ($100,000), so long as the contract total does not increase or decrease. This maximum amount shall be assessed annually and automatically adjusted in accordance with cost-of-living indexes. (3) Agreements, and amendments to those agreements, under programs expressly exempted from the review and approval of the Department of General Services pursuant to statute, including, but not limited to, those exemptions granted prior to January 1, 1994. (b) (1) A nonprofit organization or governmental agency that is awarded a cooperative agreement shall not be subject to the minority and women business and disabled veterans participation goals set forth in Article 1.5 (commencing with Section 10115 of Chapter 1 of Part 2 of Division 2 of the Public Contract Code with respect to that portion of the cooperative agreement budget that is for personnel related costs of the cooperative agreement, as determined by the department. (2) A nonprofit organization or governmental agency that is awarded a cooperative agreement shall also be exempt from the participation goals described in paragraph (1) when the cooperative agreement meets any of the following criteria: (A) The amount of the cooperative agreement is one hundred thousand dollars ($100,000) or less annually. (B) In the case of a nonprofit organization, the nonprofit organization to be awarded the cooperative agreement has a board of directors of which at least 51 percent of the members are any combination of women, minorities, and disabled veterans. (C) Cooperative agreements that result from requests for application. (c) The Director of General Services may exempt from his or her approval or from approval of the department any cooperative agreements for which, in his or her judgment, the exemption is appropriate and in the best interests of the state. Written notice of an exemption shall be given to the Controller. (d) Subdivision (b) shall become inoperative on June 30, 1997.