BILL ANALYSIS Ó
SENATE COMMITTEE ON INSURANCE
Senator Richard Roth, Chair
2015 - 2016 Regular
Bill No: AB 764 Hearing Date: July 8,
2015
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|Author: |Quirk |
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|Version: |June 29, 2015 Amended |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant:|Erin Ryan |
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Subject: Parking lots: design: insurance discount.
SUMMARY Requires the California Building Standards Commission (CBSC),
in collaboration with the State Architect and the State Fire
Marshall, to consider standards, at each model code adoption
review, for installation of vehicle barriers in the design of
any new building; defines a vehicle barrier for this purpose;
and allows an insurer to consider the installation of a vehicle
barrier as a safety measure and provide or offer a discount on
the property insurance of a commercial property owner who
installs such a vehicle safety barrier, if actuarially sound and
approved by the Insurance Commissioner (IC), as specified.
DIGEST
Existing law
1) Establishes the CBSC within the Department of General Services,
and requires any building standards adopted or proposed by state
agencies to be submitted to, and approved by, the CBSC prior to
codification into the California Standards Code.
2) Requires the CBSC to adopt, approve, codify and publish
building standards providing the minimum standards for the
design and construction of state buildings, as specified.
3) Requires specified insurance rates to be approved by the IC
prior to their use under the Insurance Rate Reduction and Reform
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Act (Proposition 103, as approved by the voters in 1988) (Prop.
103).
This bill
1) Requires the CBSC, in collaboration with the State
Architect and the State Fire Marshall, to consider
standards, at each model code adoption review, for
installation of vehicle barriers in the design of any new
building.
2) Defines a vehicle barrier to include a horizontal or
vertical protective device placed to protect persons located
within, or in or on the property of, buildings, or to
protect pedestrians from collisions by motor vehicles.
3) Specifies an insurer may consider the installation of a
vehicle barrier as a safety measure, and may provide or
offer a discount on the property insurance of a commercial
property owner who installs such a vehicle safety barrier.
4) Requires any discount to be actuarially sound and approved
by the IC consistent with the requirements of Prop. 103.
COMMENTS
1. Purpose of the bill To reduce storefront crashes by
encouraging the adoption of protective barrier standards,
particularly in commercial buildings, which have been slower
to install vehicle barriers than other types of properties.
It would also allow an insurer to consider these barriers as
a safety measure and seek to offer discounts on insurance
for commercial properties that install such barriers.
2. Background According to the author, vehicle-into-building
crashes have been reported to occur as many as 60 times per
day, with more than 3,600 pedestrians, store patrons, and
employees seriously injured each year, nationwide.
Sometimes called "storefront crashes," these accidents are
often caused by driver error. Most of these accidents can
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be prevented with simple and inexpensive steps, including
the installation of vehicle barriers that can be taken in
either the design phase or as part of a retrofit.
According to the Texas A&M Transportation Institute (TTI),
"With 500 people reportedly killed each year by vehicles
crashing into retail stores, sidewalk cafes, hair salons and
other businesses, low speed barrier crashes have been called
'one of the largest unaddressed safety issues in the
country.'" According to TTI, these accidents occur most
frequently when a driver is entering or leaving a parking
space perpendicular to a building, and even at relatively
low speeds, can cause serious injury or death. TTI notes,
however, that simple, preventative measures can protect
pedestrians, store employees, and patrons from being injured
or killed when the accidents occur. In recognition of the
safety risks posed by errant vehicles and the increasingly
important use of protective barriers as a way to prevent or
minimize the damages from these types of accidents, the
American Society for Testing and Materials International, an
international standards development organization, in
conjunction with the researchers at TTI, recently approved a
test standard, known as the Test Method for Low Speed
Barriers for Errant Vehicles, to set parameters for
bollards, barriers, and other devices most often seen
protecting storefronts and high-traffic pedestrian areas to
help standardize the use of protective barriers. Prior to
the adoption of this standard, there was no objective way to
evaluate the effectiveness of vertical pipes, decorative
planters, and other devices that could serve to protect a
business from damages caused by a vehicle-into-building
collision.
Although this bill draws attention to the safety aspects of
vehicle barriers, insurers already consider the condition
and safety features of a commercial property when writing a
commercial insurance policy. Prop. 103, however, generally
requires historical loss-based actuarial data to justify a
discount in insurance premiums paid by an insured. The
development of standards and ability to evaluate barrier
effectiveness provided by this bill may make it easier for
insurers to assess the extent to which their risk and
exposure is reduced as a result of the installation of such
barriers, and provide an actuarial justification in a rate
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filing subject to IC prior approval before a discount
specific to vehicle barriers could be offered.
3. Support The Storefront Safety Council supports AB 764 and
the authorization of safety barriers as a design
consideration, and the added benefit of insurance premium
relief as a reward for this positive safety effort.
Farrell's Ice Cream Parlour Restaurants supports AB 764
because of its own experience with a vehicle crashing into
one of its restaurants, causing one death and several severe
injuries to young children. According to the CEO, "the
carnage is something I hope other business owners never have
to go through. But they will unless our State takes a step
to fix a problem that has just evolved due to the changing
age of our population who are still driving, and changes to
parking design to accommodate the ADA?store front crash
deaths are easily preventable."
4. Opposition None received
POSITIONS
Support
California Restaurant Association
Farrell's Ice Cream Parlour restaurants
Storefront Safety Council
Oppose
None received
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