BILL ANALYSIS Ó AB 2161 Page 1 Date of Hearing: April 5, 2016 ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS Rudy Salas, Chair AB 2161 (Quirk) - As Introduced February 17, 2016 NOTE: This bill is double-referred, and if passed by this Committee, it will be referred to the Assembly Committee on Insurance. SUBJECT: Parking lots: design: insurance discount. SUMMARY: Authorizes the California Building Standards Commission (CBSC), in collaboration with the Division of the State Architect (DSA) and the Office of the State Fire Marshal (OSFM), to update building standards, as it deems necessary, for the installation of vehicle barriers any new commercial property parking lot. EXISTING LAW: 1)Establishes the CBSC within the Department of General Services, and requires any building standard adopted or proposed by state agencies to be submitted to, and approved by, the CBSC prior to codification into the California Building Standards Code (CBC). (Health and Safety Code (HSC) §§ 18920, 18930) AB 2161 Page 2 2)Requires the CBSC to adopt, approve, codify, and publish building standards providing the minimum standards for the design and construction of state buildings, including buildings constructed by the Trustees of the California State University and, to the extent permitted by law, to buildings designed and constructed by the Regents of the University of California. (HSC § 18934.5) 3)Requires the OSFM to develop building standards to implement the state's fire and life safety policy, and transfers any responsibilities of the OSFM to adopt building standards through a formal rulemaking process to the CBSC. (HSC § 18949.2) THIS BILL: 1)Requires the CBSC, in collaboration with the DSA and the OSFM, to consider standards, and update standards as it determines necessary, for the installation of vehicle barriers to protect persons located within, or in or on the property of, buildings, or to protect pedestrians, from collisions into those buildings by motor vehicles. 2)Defines a "vehicle barrier" as 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 into those buildings by motor vehicles. 3)Requires the standards considered to include existing standards adopted or developed by a standard-setting organization recognized by the commission, including, but not limited to, the American Society for Testing and Materials AB 2161 Page 3 (ASTM) or another similar organization. 4)Authorizes an insurer to consider the installation of vehicle barriers approved by the CBSC to protect persons located within, or in or on the property of, buildings, or to protect pedestrians, from collisions into those buildings by motor vehicles, on a commercial property parking lot as a safety measure and may provide or offer a discount on the property owner's insurance covering damage or loss to the covered commercial property, or liability arising out of the ownership, maintenance, or use of the commercial property relative to the reduced risk to the property as a result of installation of the barriers, as specified. 5)Provides that any discounts on insurance provided in accordance with this section shall be determined to be actuarially sound and approved by the commissioner prior to their use. FISCAL EFFECT: Unknown. This bill is keyed fiscal by the Legislative Counsel. COMMENTS: Purpose. This bill is sponsored by the author. According to the author, this bill "will prevent storefront crashes by encouraging the adoption of protective barrier standards, when considering building occupant safety options, for buildings and parking lots. Additionally, it will authorize an insurer to consider these barriers as a safety measure eligible for discounted building insurance rates." Background. The California Building Standards Law establishes AB 2161 Page 4 the CBSC and the process for adopting state building standards. Under this process, state agencies propose building standards for building types under their jurisdiction, beginning with a model code developed by a national code-writing entity which the agency proposes amendments to reflect California's needs. The CBSC must then adopt, modify, or reject those standards. The state agencies involved in the development and proposal of building standards include the following: 1) the Department of Housing and Community Development (for hotels, apartments, and dwellings); 2) the DSA (for public schools, community colleges, and accessibility in public accommodations and public housing); 3) the OSFM (for fire and life safety for hotels, apartments, dwellings, and assembly and high-rise buildings); 4) the Office of Statewide Health Planning and Development (for hospitals and clinics); 5) the Department of Consumer Affairs, and various boards therein (for certain places of business); and 6) the California Department of Public Health (for camps, public swimming pools). In addition, other state agencies, including the California Energy Commission, the State Lands Commission, and the Department of Water Resources, develop and adopt their own building standards, which are approved by the CBSC. However, not all buildings fall under the general jurisdiction of a relevant state agency. For example, many commercial occupancies may fall under the jurisdiction of the OSFM for fire and panic safety standards, and under the DSA for accessibility standards, but are not part of any state agency's general jurisdiction. The CBSC is responsible for developing building standards for state owned buildings, including University and State College buildings, and for developing green building standards for most buildings except for housing, public schools, and hospitals. The CBSC publishes the CBC in Title 24 of the California Code of Regulations (CCR) every three years, and its supplements, such as the California Green Building Standards Code, in intervening AB 2161 Page 5 years. The building codes apply to all building occupancies, and related features and equipment throughout the state, and set requirements for structural, mechanical, electrical, and plumbing systems, and require measures for energy conservation, green design, construction and maintenance, fire and life safety, and accessibility. Vehicle-Into-Building Crashes. 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 the 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. However, the TTI notes that simple, preventative measures can protect pedestrians, store employees, and patrons from being injured or killed when these 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 ASTM, an international standards development organization, in conjunction with the researchers at the 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. According to the Storefront Safety Council, more than 60 vehicle-into-building crashes occur each day, resulting in over 3,650 injuries per year. Most often, these storefront crashes AB 2161 Page 6 involve pedal or other driver error, with elderly drivers accounting for nearly half of all storefront crashes. According to the author, while building codes already exist that have design standards to protect gas meters, fire hydrants, and chemical tanks, few localities have established appropriate standards for protection of building occupants. While many major retailers in the United States already use impact protection devices, other commercial property owners have been slower to recognize the problem or have been awaiting government guidelines on which preventative measures to adopt. Prior Legislation. AB 764 (Quirk) of 2015 would have authorized the CBSC to adopt building standards to require that the installation of bollards be added to the list of considerations in the design of any new commercial property parking lot. NOTE: This bill was vetoed by Governor Brown because "it would be more prudent to leave the matter of vehicle barrier installation to the building owners and local authorities." AB 1092 (Levine), Chapter 410, Statutes of 2013, required the Department of Housing and Community Development to propose mandatory building standards for the installation of future electric vehicle charging infrastructure for parking spaces in multifamily dwellings, and required the CBSC to adopt those standards in addition to standards for nonresidential development. AB 2644 (Butler) of 2011 would have required the CBSC to adopt building standards for the construction, installation, and alteration of electric vehicle charging stations for parking spaces in single-family residential real property, in accordance with prescribed requirements. NOTE: This bill was held in the Assembly Housing and Community Development Committee. AB 2161 Page 7 IMPLEMENTATION ISSUES: According to the author, the goal of this bill is to incentivize private and government owners of buildings that are open to the public to install vehicle protection devices. The bill seeks to do so in two ways: 1) allowing insurance carriers to provide discounts for the installation of vehicle barriers and 2) creating a state-wide vehicle barrier safety standard for insurance carriers to rely on. However, per the Governor's veto message for AB 764 (Quirk) of 2015, the last iteration of this bill, the administration seems hesitant to develop any new state-wide standards. Therefore, the author may wish to amend the bill to incorporate existing standards. For instance, the OSFM has adopted standards for vehicle impact protection devices in the California Fire Code (CFC), which is published in the CBC. Section 312 of the CFC contains specifications for guard posts and other physical barriers designed to stop vehicles. AMENDMENT(S): As noted above, the author may wish to amend the bill to reference existing standards, rather than require the creation of new standards: 1)Page 2, strike lines 1-17, inclusive. 2)Page 2, line 25, strike "approved by the California Building Standards" and strike lines 26-28, inclusive. 3)Page 2, line 29, strike "parking lot". AB 2161 Page 8 4)Page 3, line 4, strike "includes" and strike lines 5-7, and insert: is a safety device that meets, at a minimum, vehicle impact protection standards adopted by the State Fire Marshal and published in the California Building Standards Code and installed to protect persons located within, or in or on the property of, buildings, or to protect pedestrians, from collisions into those buildings by motor vehicles. REGISTERED SUPPORT: California Restaurant Association Farrell's Ice Cream Parlour Restaurants Parking Design Group Storefront Safety Council 1 individual REGISTERED OPPOSITION: None on file. Analysis Prepared by:Vincent Chee / B. & P. / (916) 319-3301 AB 2161 Page 9