BILL ANALYSIS                                                                                                                                                                                                    

                                                                  AB 433
                                                                  Page  1

          AB 433 (Gordon)
          As Introduced  February 15, 2013
          Majority vote 

           BUSINESS & PROFESSIONS     12-1                                 
          |Ayes:|Gordon, Jones, Bocanegra, |     |                          |
          |     |Campos,                   |     |                          |
          |     |Dickinson, Eggman,        |     |                          |
          |     |Hagman,                   |     |                          |
          |     |Holden, Maienschein,      |     |                          |
          |     |Mullin,                   |     |                          |
          |     |Skinner, Ting             |     |                          |
          |     |                          |     |                          |
          |Nays:|Wilk                      |     |                          |
          |     |                          |     |                          |
           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)Requires the installation of a fire protection system,  
            excluding an electrical alarm system, to be performed only by  
            a contractor holding a fire protection contractor  
            classification as defined in the Contractor's State License  
            Board (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.  
            (Business and Professions Code Section 7026.12)

          2)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)   

           FISCAL EFFECT  :  None.  This bill is keyed non-fiscal by the  


                                                                  AB 433
                                                                  Page  2

          Legislative Counsel.

           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.
            2)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  
            State Fire Marshal's Building, Fire and Residential Code and  
            mandated the installation of residential fire sprinklers in  
            all new single- 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,  
            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.  

           3)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 help ensure there are  


                                                                  AB 433
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            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.   
            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.
           4)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  

           Analysis Prepared by  :    Joanna Gin / B.,P. & C.P. / (916)  

                                                                FN: 0000056