BILL ANALYSIS Ó AB 433 Page 1 Date of Hearing: April 2, 2013 ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER PROTECTION Richard S. Gordon, Chair AB 433 (Gordon) - As Introduced: February 15, 2013 SUBJECT : Contractors: fire protection systems. SUMMARY : Authorizes licensed plumbing contractors to install residential fire protection systems for single- and two-family homes, and makes other technical and clarifying amendments. EXISTING LAW : 1)Provides for the licensing and regulation of construction contractors by the Contractors' State License Board (CSLB) within the Department of Consumer Affairs. (Business and Professions Code [BPC] Section 7000, et seq.) 2)Requires the installation of a fire protection system, excluding an electrical alarm system, to be performed only by contractor holding a fire protection contractor classification as defined in CSLB regulations or by an owner-builder of an owner-occupied, single-family dwelling, as specified, if the local authority approves and inspects the installation. (BPC 7026.12) 3)Authorizes a plumbing contractor to perform work, as specified, to provide for a supply of safe water, ample in volume and of suitable temperature for the purpose intended and the proper disposal of fluid waste from the premises in all structures and fixed works. (California Code of Regulations, Title 16, Division 8, Article 3, Section 832.36) 4)Requires the State Fire Marshal (SFM) to adopt and administer regulations and building standards in order to establish and control a program for servicing, testing, and maintaining all automatic fire extinguishing systems, including, but not limited to, fire sprinkler systems. (Health and Safety Code Section 13195) FISCAL EFFECT : None. This bill is keyed non-fiscal by the Legislative Counsel. AB 433 Page 2 COMMENTS : 1)Purpose of this bill . The California Building Standards Code (Code) requires fire protection systems to be installed in all new single- and two-family homes, beginning January 1, 2011. This bill aims to expand the pool of licensed contractors who can install residential fire sprinklers under the new Code requirements by authorizing licensed plumbing contractors to perform residential installations in addition to the licensed fire protection contractors currently authorized to do the work. This bill is sponsored by the California Building Industry Association (CBIA). 2)Author's statement . According to the author, "The [Code] requirement increased the need for residential fire sprinkler design and installation, but did not increase access to professionals that can legally provide the service. Existing law provides that the installation of a fire protection system may only be performed by a contractor holding a C-16 fire protection contractor license, or by an owner-builder of an owner-occupied single-family dwelling. "Fire sprinkler systems for single- and two- family homes are relatively easy to design and install in comparison to larger, more complex structures, and commercial buildings. In addition, many of the sprinkler systems that will be installed in new single- and two-family dwellings are multipurpose fire sprinkler systems that supply water to both fire sprinklers and the residential plumbing fixtures from the same domestic water supply, as opposed to stand-alone fire sprinkler systems that are independent from the water distribution system. Plumbing contractors can often easily install multipurpose systems using the same tubing, fittings, and tools that they already use to plumb a house." 3)Specialty contractor classifications . The CSLB issues licenses to contractors in particular trades or fields of the construction profession. In order to be eligible for a contractor's license, an applicant must have four years of experience at a journey level or as a foreman, supervising employee, contractor, or owner-builder to qualify to take the examination. The CSLB issues one Class "A" General Engineering Contractor License, one Class "B" General Building Contractor License, and 41 separate Class "C" Specialty Contractor Licenses. AB 433 Page 3 Class "C" specialty contractor classifications are issued to contractors whose construction work requires special skill and whose principal contracting business involves the use of specialized building trades or crafts. A specialty contractor may use subcontractors, or his or her own employees, to complete the incidental and supplemental work. CSLB promulgates regulations relating to the scope of practice of specialty contractors. While there are multiple specialty plumbing contractors who deal with the conveyance of water, liquids, sewage, chemicals, and gas through pipes, tubes, or evaporation, there are only two specialty plumbing contractors whose scope of work directly relates to the installation of residential fire sprinklers: a) A C-16 fire protection contractor lays out, fabricates and installs all types of fire protection systems, including all the equipment associated with these systems, excluding electrical alarm systems. C-16 fire protection contractors are currently authorized to install residential sprinkler systems. b) A C-36 plumbing contractor provides a means for a supply of safe water, ample in volume and of suitable temperature, for the purpose intended and the proper disposal of fluid waste from the premises in all structures and fixed works. C-36 plumbing contractors would be authorized by this bill to install residential sprinkler systems. 4)New Code requirement and demand for residential fire sprinkler installations . In 2010, the California Building Standards Commission adopted a new Code requirement that approved the SFM's Building, Fire and Residential Code and mandated the installation of residential fire sprinklers in all new one-and two-family dwellings and townhouses statewide, beginning January 1, 2011. Rural counties report having a difficult time complying with the new Code requirement because of the relatively small number of C-16 fire protection contractors scattered throughout the state, with no known C-16 fire protection contractors residing in some rural counties. According to the Construction Industry Research Board, in 2004, there were approximately 212,960 new residential single- and multi-family homes built in California. In 2009, the number of new homes built dropped to a record low of 36,421, AB 433 Page 4 but has since been gradually climbing. In 2013, the projected number of new homes that will be built is 62,000 homes and is anticipated to rise in the future, which will create increased demand for residential fire sprinkler installation. 5)Current licensed contracting authority to install residential fire sprinklers . Currently, there are approximately 230,000 licensed contractors in the state of California. According to the CSLB, as of February 2013, there were 2,148 active C-16 fire protection contractors. This bill would authorize the 15,090 active C-36 plumbing contractors in California to install residential fire sprinklers and ensure that is more than enough licensed contractors who can legally perform the installations to meet new Code requirements. Under existing law, only a licensed Class C-16 fire protection contractor or owner-builder may install a residential sprinkler system. At the same time, only a licensed C-36 plumbing contractor can perform work on residential plumbing systems to distribute potable and non-potable water, at varying temperatures and volumes, to and from a residence. One could read BPC Section 7026.12 literally as prohibiting a plumbing contractor from installing a multipurpose fire sprinkler system, even though such a system incorporates plumbing fixtures. This bill would explicitly authorize a C-36 plumbing contractor to install a multipurpose fire sprinkler system in residential homes in addition to a C-16 contractor. 6)History of residential fire sprinklers in California . Automatic fire sprinklers are designed to minimize the loss of life and property arising from a fire by releasing water at a certain temperature to contain fire growth, limit fire damage, provide enough time for evacuation, and generally protect residents, firefighters, and the structure. For many years, the installation of fire sprinkler systems was only required in office buildings and multi-family dwellings (i.e., apartments). Efforts to legislate the installation of residential fire sprinklers date back to 1979, when SCR 23 (Campbell) requested the SFM to develop voluntary standards for the design, installation, and maintenance of automatic fire sprinkler systems for single- and two-family dwellings. In 1980, the City of San Clemente became the first AB 433 Page 5 municipality to adopt an ordinance mandating the installation of residential fire sprinklers in new residences. San Clemente's Fire Chief Ronny Coleman said the ordinance's goal was "to apply water so as to confine the blaze to the room of origin during the first ten minutes of the fire's growth and development, and to keep temperatures low enough to prevent flashover." From 1980 to 2010, over 150 local residential fire sprinkler ordinances were adopted. During that period, the California Legislature discussed, but did not enact legislation to mandate the installation of residential fire sprinklers. 7)Effects of this bill . This bill adds 15,090 C-36 plumbing contractors to the pool of 2,148 C-16 fire protection contractors who can be hired to install residential fire sprinklers. The CSLB will continue to be the appropriate licensing entity that receives and investigates consumer and professional complaints, and provides enforcement action against unlicensed contracting activity arising from the installation of residential fire protection systems. Because it oversees both C-36 and C-16 contractors, the CSLB will be able to monitor the effects of this bill on both classifications. 8)Arguments in support . According to the sponsor, CBIA, "For two decades, California law has required the installation of a fire sprinkler system to be performed by a 'fire protection contractor' holding a specialty C-16 contractor's license. Considering the level of technical expertise needed to design and install these systems in high-rise residential and commercial buildings, the requirement for a specialty license was appropriate. "However, in 2010, the California Building Standards Commission adopted building standards requiring fire sprinkler systems in all new homes starting January 1, 2011. Given that there are only 2,100 licensed C-16 fire protection contractors throughout the state, builders will not have access to an adequate supply of licensed individuals to perform this work as the housing sector begins to emerge from the worst economic downturn in over 60 years. "Fire sprinkler systems for single- and two-family dwellings are relatively easy to design and install in comparison to those installed in high-rise residential and commercial AB 433 Page 6 buildings. A C-36 licensed plumbing contractor has the knowledge and experience necessary to install fire sprinkler systems in single- and two- family dwellings. "AB 433 would authorize licensed plumbers to install these simple fire protection systems and would ensure that there is adequate access to the skilled professionals needed to meet the requirements of the Code, making homes safer for California families." 9)Previous legislation . SB 912 (Lieu) of 2012 would have authorized specified contractors to install residential fire protection systems for new single- and two-family homes, and would have also authorized the SFM to adopt regulations for all occupancy buildings, as specified. SB 912 was substantially amended at the end of the 2011-12 Session, re-referred to the Assembly Rules Committee, and never heard in a policy committee. REGISTERED SUPPORT / OPPOSITION : Support California Building Industry Association (sponsor) California Building Officials California Business Properties Association Plumbing-Heating-Cooling Contractors Association Regional Council of Rural Counties Opposition None on file. Analysis Prepared by : Joanna Gin / B.,P. & C.P. / (916) 319-3301