BILL ANALYSIS Ó SB 1073 Page 1 Date of Hearing: June 28, 2014 ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS Luis Alejo, Chair SB 1073 (Monning) - As Amended June 21, 2016 SENATE VOTE: 33-2 SUBJECT: Residential housing: lead-based paint SUMMARY: Requires the Department of Public Health (CDPH) to update regulations governing lead-related construction work to conform to the federal Environmental Protection Agency's (US EPA) Lead Renovation, Repair, and Painting Rule. Specifically, this bill: 1)Requires, by July 1, 2018, CDPH to review and amend its regulations governing lead-related construction work, including training and certification for workers and accreditation for trainers in lead-safe work practices to comply with the state's regulations on Accreditation, Certification and Work Practices for Lead-Based Paint and Lead Hazards and the US EPA's Lead Renovation, Repair, and Painting Rule (40 C.F.R. 745). 2)Requires the amended regulations to include, but not be limited to, the following: a) A regulation requiring employers to maintain and provide access to written files for each separate job or phase of SB 1073 Page 2 work, where the work process used is different or the work is performed at noncontiguous locations, noting specified information related to the location of the work and scope of the work; and, b) A regulation requiring a copy of the worker and firm certification to be provided before the start of the job to the prime contractor or other employers on the site and to be posted on the jobsite beside the California Occupational Safety and Health poster. 3)Requires CDPH to adopt regulations establishing fees for the certifications or accreditations. 4)Requires the fees imposed to be established at levels not exceeding an amount sufficient to cover the costs of administering and enforcing the standards and regulations adopted under the provisions of this bill. 5)Requires the fees to be deposited into the Lead-Related Construction Fund. 6)Appropriates $500,000 from the Childhood Lead Poisoning Prevention Fund to CDPH to develop, initiate, and administer the provisions of this bill until adequate fees can be collected for the ongoing administration of the provisions of this bill. Requires the appropriation to be repaid to the Childhood Lead Poisoning Prevention Fund upon determination by the Department of Finance that sufficient moneys are available in the Lead-Related Construction Fund to repay that amount. Prohibits any interest from being paid by the Lead-Related Construction Fund at the time of repayment. 7)Authorizes CDPH to implement and administer the provisions of this bill through all-county letters or similar instructions from CDPH until regulations are adopted. 8)Requires CDPH to adopt emergency regulations to implement the provisions of this bill by July 1, 2017. Authorizes CDPH to SB 1073 Page 3 readopt any emergency regulation that is the same as or substantially equivalent to an emergency regulation previously adopted. 9)Requires the initial adoption of emergency regulations and one re-adoption of emergency regulations to be deemed an emergency and necessary for the immediate preservation of the public peace, health, safety, or general welfare and exempts those regulations from the purview of the Office of Administrative Law, but requires those regulations to be submitted to the Office of Administrative Law for filing with the Secretary of State, and requires that each shall remain in effect for no more than 180 days, by which time final regulations may be adopted. 10)Requires persons engaged in doing renovation, repair, or painting work in a residential or public building that will disturb lead-based paint for compensation to have a CDPH-issued certificate to conduct lead-related construction work, abatement, or lead hazard evaluation. 11)Requires that no reimbursement is required because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction. EXISTING LAW: UNDER FEDERAL LAW: 1)Establishes the federal Lead-Based Paint Poisoning Prevention Act to create a prohibition against the future use of lead-based paint. (42 United States Code 4851) SB 1073 Page 4 2)Establishes the federal Residential Lead-Based Paint Hazard Reduction Act of 1992 (also known as Title X) to require anyone selling or leasing single- and multi-family housing units built before 1978 to disclose information about lead-based paint hazards to prospective buyers or tenants. (Public Law 102-550) 3)Establishes the US EPA's Lead-Based Paint Renovation, Repair and Painting (RRP) Rule to require workers to be certified and trained in the use of lead-safe work practices, and requires renovation, repair, and painting firms to be US EPA-certified. (40 Code of Federal Regulations (CFR) 745). 4)Prohibits the use of lead for residential use in the United States. (16 CFR 1303) UNDER STATE LAW: 1)Establishes the Residential Lead-Based Paint Hazard Reduction Program to require any person offering lead-related construction courses to meet DPH certificate requirements. (Health & Safety Code (H&S) § 105250, et seq.) 2)Establishes the Childhood Lead Poisoning Prevention Act of 1991, which requires CDPH to adopt regulations establishing a standard of care at least as stringent as the most recent United States Centers for Disease Control screening guidelines, requiring all children to be evaluated for risk of lead poisoning by health care providers during each child's periodic health assessment. (H&S) § 124125, et seq.) FISCAL EFFECT: According to the Senate Appropriations Committee, enactment of this bill could result in one-time costs SB 1073 Page 5 of $231,000 to CDPH to develop regulations regarding the standardized training courses, certification procedures, and other requirements, and ongoing costs of up to $1.135 million annually, beginning Fiscal Year (FY) 2017-18, to implement and manage the program and required information technology systems. Some or all of these costs may be offset with application fee revenue. Amendments to the bill included an appropriation of $500,000 from the Childhood Lead Poisoning Prevention Fund to CDPH to develop the program, and require that funds are repaid once fee revenue is sufficient to administer the program. COMMENTS: Need for the bill: According to the author, "SB 1073 follows the lead of fourteen other states that have aligned their state's lead laws and the federal RRP regulations. The bill would require the California Department of Public Health to develop training and certification for lead safe work practices that [are] specific to California. This California RRP certification would take the place of the U.S. EPA's RRP certification for work done in California. This bill would also improve enforcement by giving state and local enforcement agencies the ability to ensure those doing renovation and repair work on pre-1978 homes are certified on lead safe work practices ? "The California Department of Public Health already administers other lead certifications (abatement workers and inspectors, for example). Adding certification for lead safe work practices will fit well into this existing structure." The problem with lead: Lead has been listed under California's Proposition 65 since 1987 as a substance that can cause SB 1073 Page 6 reproductive damage and birth defects and has been listed as a chemical known to cause cancer since 1992. According to the Office of Environmental Health Hazard Assessment, lead has multiple toxic effects on the human body. Decreased intelligence in children and increased blood pressure in adults are among the more serious non-carcinogenic effects. There is no level of lead that has been proven safe, either for children or for adults. The U.S. Centers for Disease Control and Prevention (CDC) considers any blood lead level more than 10 g/dl (micrograms of lead per deciliter of blood) to be unsafe for children and for pregnant or nursing women. The CDC found that approximately 900,000 U.S. children between 1 and 5 years old have abnormally high levels of lead in their blood. Lead is a state priority: The Governor's May Revise for the FY 2016/2017 Budget noted, "Public health experts increasingly recognize that lead poisoning can occur at lower levels of exposure than previously understood. Children under age six are at the greatest risk - even low levels of exposure can cause irreparable damage to a child's central nervous system and result in other developmental and behavioral problems. Children of low-income families are disproportionately exposed to lead poisoning." The Governor's FY 2016/2017 Budget includes $8.2 million for CDPH to extend services to children who have been exposed to lead, consistent with the guidance for treatment from the CDC for monitoring, education, and basic services to children. Establishing lead levels: Only in the late 1970s did comprehensive epidemiological studies of children's blood lead levels begin, raising modern concerns about low asymptomatic blood lead levels. SB 1073 Page 7 When the federal Lead Poisoning Prevention Act was passed in 1971, a blood lead level of 60 g/dl was considered safe. In 1991, the CDC lowered the blood lead level of concern to 10 g/dl or more, where it remained until 2012, when the CDC established a new measure of blood lead levels the reference level that was set to include the highest 2.5 percent of tested children. That reference value, which is not health-based and will change over time, is currently 5 g/dl. Lead-based paint history: When lead-based paint was marketed before 1978, it was a legal product in great demand because it was washable and durable. It was repeatedly endorsed by the federal, state, and local governments, and specified for use on government buildings until the mid-1970s. For example, the 1950 California Department of Education vocational book on painting endorsed the use of white lead paint. As uses of lead pigments in paints evolved, so did the primary pathways through which children were thought to be exposed to lead and the level of exposure thought to be safe. It was not until 1974 that household dust emerged as a possible pathway for lead exposure. The theory was that children were licking their hands or putting objects in their mouths that had become dirty with lead-contaminated dust. In 1978, the federal government banned consumer uses of lead paint. Although the U.S. Consumer Product Safety Commission banned the use of lead-based paint in 1978, buildings built prior to the ban still likely have lead paint. Due to the significant health issues caused by lead exposure, California requires anyone who performs lead-based paint risk assessment or removal to be certified or accredited by CDPH. State action on lead paint: In 1991, the California Legislature enacted AB 2038 (Connelly, Chapter 799, Statues of 1991), the SB 1073 Page 8 Childhood Lead Poisoning Prevention Act of 1991, which established a program within the State Department of Health Services (DHS, which is now CDPH) to meet the requirements of the federal Residential Lead-Based Paint Hazard Reduction Act of 1992 and Title X of the Housing and Community Development Act of 1992. It required DHS to adopt regulations regarding the accreditation of training providers that engage in or supervise lead-related construction work, and required the establishment of fees for the accreditation of training providers, the certification of individuals, and the licensing of entities engaged in lead-related occupations. The fees are deposited into the Lead-Related Construction Fund. In 2003, the Legislature enacted SB 460 (Chapter 931, Statutes of 2002) to establish the requirement that lead safe work practices be used in pre-1978 buildings. SB 460 added lead hazards to the conditions that make premises uninhabitable and substandard. It also prohibited an individual from disturbing more than a "de minimis" amount of lead-based paint without "containment" (a system, process or barrier used to contain lead hazards inside a work area). SB 460 also required any person being paid for lead construction including inspection, risk assessment or designing plans for the abatement of lead hazards and any person performing lead inspections or abatement in a public elementary, preschool or day care center to have a certificate from DHS. Lead-Based Paint Renovation, Repair and Painting (RRP) Rule: Common renovation activities like sanding, cutting, and demolition can create hazardous lead dust and chips by disturbing lead-based paint, which can be harmful to adults and children. On April 22, 2008, the US EPA issued the RRP requiring the use of lead-safe practices and other actions aimed at preventing SB 1073 Page 9 lead poisoning. Under the RRP, beginning in April 2010, contractors performing renovation, repair and painting projects that disturb lead-based paint in homes, child care facilities, and schools built before 1978 must be certified and must follow specific work practices to prevent lead contamination. This includes in-house maintenance staff and many types of outside contractors. Until that time, the U.S. Department of Housing Urban Development and US EPA recommended that anyone performing renovation, repair, and painting projects that disturb lead-based paint in pre-1978 homes, child care facilities and schools follow lead-safe work practices. Under the RRP, child-occupied facilities are defined as residential, public or commercial buildings where children under age six are present on a regular basis. The requirements apply to renovation, repair or painting activities. The RRP does not apply to minor maintenance or repair activities where less than six square feet of lead-based paint is disturbed in a room or where less than 20 square feet of lead-based paint is disturbed on the exterior. Window replacement is not minor maintenance or repair. The challenge with the RRP is that many of the specific training requirements either undermine California's requirements, or create confusion with California's requirements. The intent of SB 1073 is to create a California-specific program that ensures compliance with the US EPA and eliminates any confusion over the requirements needed for certification in California. SB 1073 does that by building off the existing program established under SB 460 and by ensuring that all persons doing renovation, repair, or painting work in a residential or public building are appropriately certified or SB 1073 Page 10 accredited to perform work on lead-based paint. Arguments in support: According to the California Association of Code Enforcement Officers: "Code enforcement officers routinely respond to complaints about unpermitted work and lack of maintenance on homes, many of which contain lead-based paint. The US EPA's RRP has elements that are not as protective as California law. As a result, trainees are often confused, as what they need to know to pass the federal exam is sometimes in conflict with what is allowed in California. In addition to creating regulatory confusion, the US EPA's enforcement capacity is extremely limited. Because of the lack of enforcement, RRP has not been as effective as it could be, leaving children, workers and their families at risk with little recourse. There are more than 280,000 licensed General Contractors in California, but fewer than 35,000 of those have become RRP certified. SB 1073 Page 11 SB 1073 would create a California-specific RRP program on Lead Safe Work Practices, and grant enforcement authority to local agencies already enforcing the state's lead laws." REGISTERED SUPPORT / OPPOSITION: Support Healthy Homes Collaborative (Sponsor) AAA Lead Consultants Alameda County Board of Supervisors American Congress of Obstetricians and Gynecologists District IX Arc and United Cerebral Policy California Collaboration SB 1073 Page 12 Barr & Clark California Association of Code Enforcement Officers California Pan-Ethnic Health Network California Rural Legal Assistance Foundation Coalition for Economic Survival HomeSafe Environmental, Inc. Inner City Law Center Inquilinos Unidos/United Tenants Physicians for Social Responsibility Public Health Institute Society for Allergy-Friendly Environment Western Center on Law and Poverty Opposition SB 1073 Page 13 None on file. Analysis Prepared by:Paige Brokaw / E.S. & T.M. / (916) 319-3965