BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    SB 1073  


                                                                    Page  1





          Date of Hearing:  August 3, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          SB 1073  
          (Monning) - As Amended June 21, 2016


           ----------------------------------------------------------------- 
          |Policy       |Environmental Safety and Toxic |Vote:|7 - 0        |
          |Committee:   |Materials                      |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
           ----------------------------------------------------------------- 


          Urgency:  No  State Mandated Local Program:  YesReimbursable:   
          No


          SUMMARY:


          This bill requires the Department of Public Health (DPH) 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 (RRP) by July 1,  
          2018.  Specifically, this bill: 


          1)Requires DPH to update its training and certification for  
            workers and accreditation for trainers in lead-safe practices  
            consistent with federal laws and policies by emergency  
            regulations.  








                                                                    SB 1073  


                                                                    Page  2







          2)Expands the group of workers required to receive certification  
            to include anyone receiving compensation for doing renovation,  
            repair, or painting work that will disturb lead-based paint.


          3)Requires DPH to adopt regulations establishing fees for the  
            certifications and accreditations at levels not exceeding an  
            amount sufficient to cover the costs of administering and  
            enforcing the standards and regulations adopted under the  
            provisions of the bill.  Fee revenue is required to be  
            deposited in the Lead-Related Construction Fund (LRCF).


          FISCAL EFFECT:


           1) Appropriates $500,000 from the Childhood Lead Poisoning  
             Protection Prevention Fund to DPH to be used for the purposes  
             of the bill until adequate fees can be collected for ongoing  
             administration.  


             Funds are required to be repaid, without interest, when the  
             Department of Finance (DOF) determines sufficient funds are  
             available in the LRCF.


           2) One-time increased costs of $231,000 (LRCF) to develop a  
             plan, and create RRP regulations, standardized training  
             courses, and RRP-program specific certification and  
             accreditation procedures over the first two years.


           3) Ongoing annual costs initially in the $1.1 million range and  
             reaching up to $3.9 million around year 2.  DPH expects  
             program growth based upon the number of persons required to  
             receive licenses and certifications increasing by 350%.








                                                                    SB 1073  


                                                                    Page  3







            It is anticipated that the fees will eventually cover the  
          costs of the activities required by this bill.


          


          COMMENTS: 


          1)Rationale. This bill is intended to address the confusion  
            between state requirements for lead-related construction work  
            and those required by the federal Lead-Based Paint Renovation  
            Repair and Painting (RRP) Rule.



            In 1991, the Legislature enacted AB 2038 (Chapter 799, Statues  
            of 1991), to establish a program within the Department of  
            Health Services (DHS, which is now DPH) to meet the  
            requirements of federal law. AB 2038 required DHS to adopt  
            regulations for the accreditation of training providers that  
            engage in or supervise lead-related construction work, and  
            required the establishment of fees for the accreditation and  
            the licensing of entities engaged in lead-related occupations.  
            The fees are deposited into the Lead-Related Construction Fund  
            (LRCF) 


            In 2002, the Legislature enacted SB 460 (Chapter 931, Statutes  
            of 2002) to require lead safe work practices in pre-1978  
            buildings. SB 460 added lead hazards to the conditions causing  
            structures to be uninhabitable and substandard.  SB 460 also  
            required DHS certification for any person being paid for lead  
            construction work, including inspection, risk assessment or  
            designing plans for the abatement of lead hazards and any  
            person performing lead inspections or abatement in a public  








                                                                    SB 1073  


                                                                    Page  4





            elementary, preschool or day care center. 

            On April 22, 2008, the US EPA issued the RRP requiring the use  
            of lead-safe practices and other actions aimed at preventing  
            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.  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. 


            This bill creates a California-specific program that ensures  
            compliance with the US EPA and eliminates any confusion over  
            the requirements needed for certification in California by  
            building off the existing SB 460 program - ensuring all  
            persons doing renovation, repair, or painting with lead-based  
            paint are appropriately certified or accredited. 

          2)Lead.  Lead has been listed under California's Proposition 65  
            since 1987 as a substance that can cause 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 (OEHHA), lead has  
            multiple toxic effects on the human body. In particular,  
            decreased intelligence in children and increased blood  








                                                                    SB 1073  


                                                                    Page  5





            pressure in adults are among the more serious non-carcinogenic  
            effects. There is no level that has been proven safe, either  
            for children or for adults.  Although the federal government  
            banned the use of lead paint in 1978, buildings built prior to  
            the ban are likely to contain lead paint, and the  
            lead-contaminated dust associated with exposure in children.  
          Analysis Prepared by:Jennifer Galehouse / APPR. / (916)  
          319-2081