BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1773
                                                                  Page  1

          Date of Hearing:   April 12, 2010

                   ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
                                   Joe Coto, Chair
                 AB 1773 (Mendoza) - As Introduced:  February 9, 2010
          
          SUBJECT  :   State Fire Marshal: inspections and licensing

           SUMMARY  :   Reinstates provisions in the Health and Safety Code  
          which will authorize the Office of the State Fire Marshal (OSFM)  
          to impose a specified monetary civil penalty in lieu of  
          suspending a private business operating license or  
          certification.  Specifically,  this bill  :  

          1)Authorizes the State Fire Marshall or his or her designee to  
            stay the suspension of a license or certificate of  
            registration in specified instances on condition that its  
            holder pay a specified monetary penalty and incur no other  
            cause for disciplinary action, as specified.

          2)Deposits those penalties in the State Fire Marshal Licensing  
            and Certification Fund.


          3)Requires the State Fire Marshall to make specified data  
            relating to this bill available to the public.

           EXISTING LAW  provides for the licensing by the State Fire  
          Marshall of persons to engage in various activities relating to  
          the sale or use of fireworks, and the servicing of portable fire  
          extinguishers and automatic extinguisher systems. 

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   This bill proposes to reinstate provisions of the  
          Health and Safety Code that authorized the OSFM to levy a  
          monetary penalty in lieu of suspension.  Specifically, this bill  
          would reinstate Heath and Safety Code sections 12606.1  
          (fireworks license suspensions), 13188.4 (fire extinguisher  
          license and/or certification suspensions), and 13197.6  
          (automatic fire extinguishing system license suspensions).  The  
          author states that the three programs affected by this bill are  
          (1) the Fireworks Program which is mandated under Part 2  
          "Fireworks and Pyrotechnic Devices" commencing with Section  
          12500 of the Health and Safety Code; (2) the Portable and Fire  








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          Extinguisher Program which is mandated under Chapter 1.5  
          commencing Section 13160 of the Health and Safety Code; and (3)  
          the Automatic Extinguishing System Program which is mandated  
          under Chapter 1.8 commencing with Section 13195 of the Health  
          and Safety Code.  

          According to information provided by this bill's sponsor, during  
          the time these sections were in statute they were effective and  
          served both the industry and the OSFM in a positive manner. 

           Background  .  The OSFM Fire Engineering Division is responsible  
          for administering a wide range of fire safety licensing ,  
          certification programs, and performing engineering functions  
          affecting consumer services, product evaluation, approval and  
          listings.  The OSFM Fire Engineering Division is also  
          responsible for conducting investigations related to those  
          programs.

          According to the author, prior to January 1, 2008, the OSFM was  
          authorized to levy a monetary penalty in lieu of administrative  
          license suspensions (AB 2401, Harman, Chapter 424, Statutes of  
          2004).  During the period prior to this policy's sunset date of  
          January 1, 2008, there were 51 cases of violation.  The author  
          states that all cases except one were settled under the existing  
          provision, without significant fiscal impact to the state.  The  
          author also says that due to the sunset provisions in the law,  
          the OSFM may no longer use monetary fines as an enforcement  
          mechanism.

          When the OSFM suspends a license or certification, the licensee  
          or certificate holder is required to stop working.  In order to  
          ensure compliance, the OSFM has to redirect staff from other  
          critical functions to periodically monitor the individual and/or  
          business.  The author states that this has proven to be time  
          consuming, costly, and hinders the Deputy's ability to perform  
          other critical programs.

           Sunset clause  .  According to information from the bill's  
          sponsor, a sunset clause was included  in AB 2401 based on the  
          initial concerns of the affected industry, the California  
          Association of Life Safety and Fire Equipment (CAL SAFE).  CAL  
          SAFE contacted then-Assembly Member Harman to ensure that the  
          OSFM would use this provision as an enforcement tool and not as  
          a means of revenue generation, and the sunset date was seen as a  
          means to ensure this.  








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          The bill's sponsor says, "Though this provision had proven to be  
          effective, industry was not successful in their attempts to have  
          the sunset extended."  The policy contained in AB 2401 sunset on  
          January 1, 2008.

          Due to the sunset contained in AB 2401, OSFM is faced with the  
          dilemma of either suspending a license/certification, at a  
          significant cost to both the business and the state, or opting  
          to take no action and potentially allowing infractions to  
          continue.  The author states that this bill will give the OSFM  
          the authority to levy monetary penalties without unnecessarily  
          suspending a license or certificate.

           Prior legislation  .   AB 2401 (Harman), Chapter 424, Statutes of  
          2004  , authorizes the OSFM to impose a specified monetary penalty  
          in lieu of suspending the license or certificate of individuals  
          or businesses that violated laws.  

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Association of Life Safety and Fire Equipment
          Department of Forestry and Fire Protection (CAL FIRE) (sponsor)
          FireMaster
          Jorgensen Company
          Orange County Fire Protection
          Solon Fire Control

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Rod Brewer / G. O. / (916) 319-2531