BILL ANALYSIS Ó ----------------------------------------------------------------------- |Hearing Date:July 1, 2013 |Bill No:AB | | |433 | ----------------------------------------------------------------------- SENATE COMMITTEE ON BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT Senator Ted W. Lieu, Chair Bill No: AB 433Author:Gordon As Amended:June 10, 2013 Fiscal: Yes SUBJECT: Contractors: fire protection systems: fire safety: State Fire Marshal. SUMMARY: Authorizes, until January 1, 2017, licensed plumbing contractors to install residential fire protection systems for single and two-family homes; authorizes the State Fire Marshal to propose, adopt and administer regulations and building standards in order to ensure fire safety in buildings and structures and makes those building standards subject to certain requirements; makes technical and clarifying amendments. Existing law: 1)Licenses and regulates more than 300,000 contractors under the Contractors State License Law (Contractors Law) by the Contractors State License Board (CSLB) within the Department of Consumer Affairs (DCA). (Business and Professions Code (BPC) § 7000 et seq.) 2)Authorizes the CSLB to issue licenses to contracting businesses in three different branches, generally categorized by letter: A - general engineering contracting, B - general building contracting and C - specialty contracting. (BPC § 7055) 3)Provides that a specialty contractor is a contractor whose operations involve the performance of construction work requiring special skill and whose principal contracting business involves the use of specialized building trades or crafts. (BPC § 7058) 4)Authorizes CSLB to adopt reasonably necessary rules and regulations for the classification of specialty contractors in a manner AB 433 Page 2 consistent with established usage and procedure as found in the construction business, and to limit their field and scope of operations to those to which they are classified and qualified to engage, as defined. (BPC § 7059) 5)CSLB regulations establish a fire protection contractor (C-16) classification as a contractor which lays out, fabricates and installs all types of fire protection systems including all the equipment associated with these systems, and excluding electrical alarm systems. (California Code of Regulations (CCR), Title 16, § 832.16) 6)Prohibits a general building contractor from contracting for any project that includes the C-16 classification unless the general building contractor holds that license classification or subcontracts with the appropriately licensed contractor. (BPC § 7057 (c)) 7)Provides that the installation of a fire protection system may be performed only by a contractor holding a C-16 classification or by an owner-builder of an owner-occupied, single-family dwelling, as specified. (BPC § 7026.12) 8)CSLB regulations establish a plumbing contractor (C-36) classification as a contractor which provides a means for a supply of safe water for the purpose intended and the proper disposal of fluid waste from the premises in all structures and fixed works. The C-36 classification includes: (CCR § 832.36) a) Waste removal or the construction and connection of on-site waste disposal systems; b) Piping, storage tanks and venting for a safe and adequate supply of gases and liquids for any purpose, including vacuum, compressed air and gases for medical, dental, commercial and industrial uses; c) Gas appliances, flues and gas connections for all systems; d) Water and gas piping from the property owner's side of the utility meter to the structure or fixed works; e) Installation of any type of equipment to heat water, or fluids, including the installation of solar equipment for this purpose; AB 433 Page 3 f) Maintenance and replacement of all items described above and all health and safety devices such as, but not limited to, gas earthquake valves, gas control valves, back flow preventers, water conditioning equipment and regulating valves. 9)Authorizes the State Fire Marshal (SFM) to develop building standards relating to fire and panic safety and submit those standards to the California Building Standards Commission (BSC) for approval. (Health and Safety Code (HSC) § 13100 et seq.) 10)Establishes under the California Building Standards Code the processes related to the adoption, approval, publication, and implementation of proposed building standards under the California Building Standards Law, and administered by the BSC. These building codes serve as the basis for the design and construction of buildings in California. (HSC § 18935 et seq.) This bill: 1)Authorizes, until January 1, 2017, the installation of a residential fire protection system for a one or 2-family dwelling by a contractor holding a fire protection contractor (C-16) classification, an owner-builder of an owner-occupied dwelling, or by a contractor holding a plumbing contractor (C-36) classification, as defined in the CSLB regulations. 2)Authorizes the SFM to propose, adopt and administer the regulations and building standards that he or she deems necessary in order to ensure fire safety in buildings and structures and requires those building standards to be submitted to the BSC for approval, as specified. 3)Makes conforming changes. FISCAL EFFECT: Unknown. This bill has been keyed "fiscal" by Legislative Counsel. COMMENTS: 1.Purpose. This bill is sponsored by California Building Industry Association (CBIA, Sponsor). According to the Author, in addition to licensed fire protection contactors (C-16 license), this bill would authorize licensed plumbers (C-36 license) to install residential fire sprinkler systems in one and two- family dwellings. This change would ensure that there is adequate access to the skilled professionals needed to meet the new 2010 California AB 433 Page 4 Residential Code requirements. The Author states the need for the bill as follows: In 2010, the California State Building Standards Commission voted unanimously to approve the 2010 California Residential Code, which specifies that all new one or two-family dwellings built after January 1, 2011 must be equipped with fire sprinkler systems. This requirement increased the need for residential fire sprinkler design and installation, but did not increase access to professionals that can legally provide the service. The Contractors State License Board (CSLB) is the body that provides for the certification and regulation of contractors, within the Department of Consumer Affairs. According to the CSLB, in February of 2013 there were only 2,148 active C-16 fire protection contractors. Fire protection contractors are licensed to install all types of fire protection systems in all types of structures. Of these, approximately 25% install sprinklers in residential homes. There were also 15,090 active C-36 plumbing contractors in California. Plumbing contractors have a broader license parameter, which includes supplying 'safe water, in ample volume.' With the new requirements for fire sprinkler installation in all homes, and the growth witnessed in the building industry in recent years, plumbers can provide assistance to meet the need for fire sprinklers, without hampering development. Fire sprinkler systems for one 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 one 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 line, as opposed to stand-alone fire sprinkler systems that are independent from the domestic water distribution system. According to the Sponsor, this bill would also clarify the SFM's authority to propose, adopt and administer fire safety regulation in buildings and structures within the state. 2.Background. The CSLB licenses California contractors in three separate branches: A - general engineering contracting, B - general building contracting, and C - specialty contracting. The law AB 433 Page 5 authorizes the CSLB to adopt regulations for the classification of specialty contractors consistent with established usage and procedure of the construction business, and to limit specialty contractors to the field and scope in which they are classified and are qualified to work. Accordingly, there are 41 separate Class C license classifications for specialty contractors whose construction work requires special skill and whose principal contracting business involves the use of specialized building trades or crafts. 3.Residential fire sprinkler systems. A fire sprinkler system is an active fire protection measure, consisting of a water supply, providing adequate pressure and flow rate to a water distribution piping system, onto which fire sprinklers are connected. Although historically only used in factories and large commercial buildings, home and small building systems are now available at a cost-effective price. A residential fire sprinkler system refers to a system that falls under a residential classification separate from the commercial classifications (NFPA 13). A commercial sprinkler system is designed to protect the structure and the occupants from a fire. Most residential sprinkler systems are primarily designed to suppress a fire in such a way to allow for the safe escape of the building occupants. While these systems will often also protect the structure from major fire damage, this is a secondary consideration. In residential structures, sprinklers are often omitted from closets, bathrooms, balconies, and attics because a fire in these areas would not usually impact the occupant's escape route. Beginning January 1, 2011, California made automatic fire sprinkler systems mandatory in all new one and two-family dwellings throughout the state. In line with the 2009 International Building, Fire and Residential Code, this change came from modifications to the California Building Code through the BSC. For many years, installation of fire sprinkler systems has only been required in office buildings and multi-family dwellings (i.e. apartments). According to the SFM, these sprinkler systems are proven to save lives and extinguish fires. A December 2010 CSLB Industry Bulleting advised: "A General Engineering, B General Building, C-36 Plumbing contractors need to be aware that only the C-16 Fire Protection classification is legally permitted to lay out, fabricate or install fire protection AB 433 Page 6 systems. Other trades can provide work up to the fire protection system only, regardless of whether the fire protection system is combined or stand-alone." The new residential requirement does not affect home remodels, only new construction; however, according to SFM there are more than 150 local ordinances related to residential fire sprinklers, and the CSLB advises and it would be a good idea to check with your local jurisdiction before beginning any projects. 4.State Fire Marshal Regulations. This bill clarifies the SFM's authority to propose, adopt and administer the regulations and building standards that he or she deems necessary in order to ensure fire safety in buildings and structures and requires those building standards to be submitted to the BSC for approval, as specified. According to the Sponsor, over the years there have been several challenges to the SFM's authority to adopt and administer fire safety standards for buildings and structures in California. One such challenge had to do with the SFM establishing building standards for laboratories located within a section or floor of a building. A second challenge was concerning the SFM's standards for exiting requirements for large commercial storage facilities. In both of these cases, during the process of the SFM establishing building fire safety standards before the BSC, the SFM's authority to adopt the particular building standards was disputed. In both of these cases, the BSC ultimately upheld the SFM's authority to establish building standards in these areas. Although the BSC ultimately confirmed the SFM's authority, still such challenges tend to delay the regulation process and could at times actually bring the regulatory process to a stop. The Sponsor points out that the Health and Safety Code Section 18930 clearly establishes 9 separate criteria which must be met by a state agency adopting or proposing any building standard before the BSC. The second of those criteria require the proposed building standard to be within the parameters of the enabling legislation and to not be within the jurisdiction of another agency. The ninth, requires that if the proposed building standard promotes fire and panic safety, the SFM must sign off on the building standard. The Sponsor reasons that these criteria reflect an inherent authority of the SFM in establishing building standards, and the bill simply clarifies that authority. The Sponsor contends that this bill's clarification of the SFM's authority to adopt fire safety building standards will provide two AB 433 Page 7 basic benefits: First, it will help prevent 11th-hour challenges to the SFM's authority to establish building standards, which ultimately delays or perhaps even tables, the regulatory process. Second, it clarifies the SFM's authority to address emerging issues in the construction industry such as the installation of solar photo voltaic panels on the top, side or adjacent to structures. In such cases, the SFM must have clear authority to establish fire-safety standards for building entrance, exit and access. 5.Three Year Sunset. This bill would authorize, until January 1, 2017, a plumbing contractor to install residential fire protection systems in one- or 2-family dwellings. According to the Sponsor, this three year window is a deliberate timeframe in which it can best be determined whether it is appropriate to continue allowing plumbing contractors to install residential fire sprinkler systems, or to require plumbing contractors to obtain additional education and experience before being allowed to continue to install residential systems. According to the Sponsor, it is critical to authorize plumbing contractors to install residential sprinkler systems at this time, because the state residential construction industry is now beginning to rebound from the worst housing slump in 60 years, and there simply are not enough fire sprinkler contractors to install all the residential systems that will be needed in the next two years. The Sponsor states that only about 20% of the state's 2,100 C-16 contractors are involved in residential construction, and without an infusion of additional licensees authorized to install residential fire sprinkler systems, there will be severe bottlenecks in residential construction. Establishing a three year sunset will relieve the bottleneck, and at the same time require that the issue will be revisited in the near future. 6.Prior Legislation. SB 912 (Lieu, 2012) as gutted and amended on the Assembly Floor at the end of the Session was very similar to this measure. The bill would have authorized C-36 plumbers and general contractors, in addition to fire protection specialty contractors, to install fire protection systems in one- and two- family homes. It would have also authorized the SFM to adopt and administer regulations and building standards for all occupancy buildings, and require the standards to be submitted to the BSC for approval. ( Status : This bill died on the Assembly Floor.) SB 405 (Cogdill, 2009) would have required any commercial or residential fire sprinkler installation to be performed by a fire protection contractor under the direct supervision of a fire AB 433 Page 8 sprinkler supervisor. ( Status : This bill died without being heard in Senate BP&ED Committee.) 7.Arguments in Support. A number of supporters of this bill, including the Sponsor the California Building Industry Association , as well as the California Business Properties Association , the Rural County Representatives of California , the California Building Officials , the Plumbing-Heating-Cooling Contractors Association of California , and the California State Pipe Trades Council write that for over 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 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 BSC 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. Proponents further argue that fire sprinkler systems for one- and two-family dwellings are relatively easy to design and install in comparison to those installed in high-rise residential and commercial buildings. A licensed plumber (C-36) has the knowledge and experience necessary to install fire sprinkler systems in one-and two-family dwellings, according to the proponents. The California Fire Chiefs Association believes the addition of licensed and skilled professionals such as plumbing contractors is necessary to meet the provisions of the new 2010 California Residential Code requirements, ensuring there are sufficient professionals to install sprinkler systems in one-and-two family homes, resulting in fire and life safety for more Californians. 8.Arguments in Opposition. The California Fire Training Alliance (CFTA) opposes the bill, quoting the Acting State Fire Marshal who states: "Training and education is critical to the implementation of our building standards and the recommendations are essential to the successful understanding of the statewide residential fire sprinkler adoption within the California Building Standards." CFTA further makes the following arguments: The bill does not require plumbers to have any knowledge or training specific to fire sprinkler systems, exposing the public AB 433 Page 9 to a significant life safety danger. In 1988, AB 3841 (Eastin, Chapter 1035, Statutes of 1988) removed the authorization for a plumbing contractor to install fire sprinklers and specified that only a licensed fire sprinkler contractor could install fire sprinklers in the state of California. This bill reverses that provision without requiring any knowledge or training by the plumbing contractor. The contractor licensing law requires at least four full years of experience "in the classification for which he or she is applying." This bill does not require plumbers to have any experience with fire sprinkler systems. The bill does not address qualifications necessary to design a fire sprinkler system. Presumably, the bill would allow plumbing contractors to design the systems that they install, without any requisite training, experience, and expertise. The Sponsor is justifying the need for the bill based on an alleged shortage of licensed fire sprinkler contractors to meet the potential demand which may occur when housing starts increase. That shortage simply does not exist. CFTA argues that it would require only 100 average-sized fire sprinkler companies, of the 2,000 licensed in the state, to meet the Sponsor's stated demand. The Sponsor has suggested that there are too few fire sprinkler contractors in remote areas of the state. The fact of the matter, according to CFTA, is that a very small percentage of the state's residential construction takes place in remote areas. Furthermore, the additional cost necessary for an out of town contractor to transport and house employees for the duration of a fire sprinkler installation project represents a very small increase to the overall cost of the job. Finally, CFTA, argues that there are alternatives to the current proposal, and suggests possible amendments to the bill: Currently, a plumbing contractor has the authority to complete the steps necessary to obtain a C-16 fire sprinkler license, and many have done so (approximately 40% of the C-16 licensees also hold a C-36 license); One compromise would be to create a "C-16(Residential)" license class that would allow a plumbing contractor to complete the training and examinations necessary to install AB 433 Page 10 residential fire sprinkler systems; Another compromise would allow plumbing contractors to install residential multi-purpose systems that supply both domestic water and fire suppression. SUPPORT AND OPPOSITION: Support: California Building Industry Association (Sponsor) California Building Officials California Business Properties Association California Fire Chiefs Association California State Pipe Trades Council Plumbing-Heating-Cooling Contractors Association of California Rural County Representatives of California AB 433 Page 11 Opposition: California Fire Training Alliance California Professional Association of Specialty Contractors (CALPASC) Fire Chief, City of Merced SimplexGrinnel Numerous individuals Consultant:G. V. Ayers