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