BILL ANALYSIS                                                                                                                                                                                                    �







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        |Hearing Date:April 25, 2011        |Bill No:SB                         |
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                      SENATE COMMITTEE ON BUSINESS, PROFESSIONS 
                               AND ECONOMIC DEVELOPMENT
                          Senator Curren D. Price, Jr., Chair
                                           
                         Bill No:        SB 886Author:Corbett
                    As Introduced:     February 18, 2011 Fiscal:Yes

        SUBJECT:  Sprinkler fitters:  licensing.
        
        SUMMARY:  Prohibits any person from installing or modifying a fire 
        sprinkler system, a wet standpipe system, or an automatic fire 
        extinguishing system without a certificate of registration issued by 
        the State Fire Marshal.

        Existing law, the Business and Professions Code (BPC):

        1) Licenses and regulates more than 300,000 contractors under the 
           Contractors State License Law (Contractors Law) by the Contractors 
           State License Board (CSLB) within the Department of Consumer 
           Affairs (DCA).

        2) Authorizes the CSLB to issue licenses to a contracting business in 
           three licensing branches:  (a) general engineering contracting, (b) 
           general building contracting, and, (c) specialty contracting. (BPC 
           � 7055)  

        3) Specifies that the specialty-contracting branch include a 
           contractor whose operations include the servicing or testing of 
           fire extinguishing systems. (BPC � 7058)

        4) Requires the installation of a fire protection system, as 
           specified, to be performed only by a contractor holding a fire 
           protection contractor classification. (BPC � 7026.12)

        5) Authorizes the CSLB to refuse to issue, reinstate, reactivate, 
           renew, or suspend a contractor's license due to unpaid financial 
           liabilities, including fees that may be assessed by the Department 
           of Industrial Relations, the Employment Development Department or 
           the Franchise Tax Board. (BPC � 7145.5)





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        6) Authorizes the CSLB to take disciplinary action against a licensed 
           contractor for violations of the law, including willful or 
           deliberate disregard and violation of the building laws of the 
           state, and specified other provisions of law. (BPC � 7110)

        Existing law, the Health and Safety Code (HSC):
        
        1) Requires the State Fire Marshal (SFM) to adopt and administer 
           regulations and building standards in order to establish and 
           control a program for servicing, testing, and maintaining all 
           automatic fire extinguishing systems, including, but not limited 
           to, fire sprinkler systems.  The regulations must consider the 
           requirements applicable standards of the National Fire 
        Protection Association and specified voluntary standards published by 
           the SFM. 
        (HSC � 13195)
        2) Prohibits any person from engaging in the business of servicing or 
           testing automatic fire extinguishing systems without a license 
           issued by the SFM, except as specified, and exempts from the 
           licensing requirement specialty contractors licensed by the CSLB to 
           engage in the business of servicing or testing fire extinguishing 
           systems.  (HSC � 13196.5)

        3) Requires the SFM to adopt regulations to establish and maintain 
           that license, including bases for denial or revocation, a schedule 
           of fees for administration and enforcement, and the period for and 
           renewal of licensure.  (HSC � 13197)

        4) Makes any violation of these provisions or any regulation or 
           building standard of the SFM a misdemeanor.  (HSC � 13199)

        5) Authorizes the SFM to permit a person licensed to service or test 
           automatic fire extinguishing systems, to pay a monetary penalty to 
           the SFM in lieu of an actual suspension of the license. (HSC � 
           13197.6)

        Existing law, the Penal Code (PC):  Makes it a felony to fraudulently 
        install or maintain a fire sprinkler or fire extinguishing system with 
        the intent to install a fire protection system which is known to be 
        inoperable or to impair the effective operation of a system. (PC � 
        386)


        This bill:






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        1)Additionally authorizes the CSLB to refuse to issue, reinstate, 
          reactivate, renew, or suspend a contractor's license due to unpaid 
          financial liabilities,  including  penalties and fees that may be 
          assessed by the Office of the State Fire Marshal.

        2)Establishes the Sprinkler Fitter Certification Act (Act) to provide 
          that a person shall not perform work on any fire suppression system 
          unless he or she possesses a valid sprinkler fitter, or a valid 
          sprinkler fitter apprentice permit and is directly or immediately 
          supervised by a holder of a valid certificate, as defined, issued by 
          the SFM.

        3)Defines certain terms, for purposes of the Act, including:

           a)   "Direct and immediate supervision" means to be physically on 
             the project site while supervising others.

           b)   "Fire suppression system" means an automatic or manual system 
             designed to protect occupants or structures from fire, and 
             includes:  a water sprinkler system, water spray system, foam 
             water system, foam-water spray system, carbon dioxide system, 
             foam extinguishing system, dry chemical system, wet chemical 
             system, halogenated system, and other chemical systems used for 
             fire protection.  The term also includes sprinkler piping, 
             risers, standpipes, above ground supply lines, tank heaters, hose 
             connections to sprinkler systems, air lines, thermal systems used 
             in connection with sprinklers, and pumps dedicated for fire 
             suppression.

           c)   "Sprinkler fitter" means a person, other than an apprentice, 
             who performs work on a fire suppression system subject to the 
             provisions of National Fire Protection Association (NFPA) 
             Standard for Installation of Sprinkler Systems, as specified.

           d)   "Sprinkler fitter apprenticeship program" means an 
             apprenticeship training program, registered and approved by the 
             US Department of Labor, Bureau of Apprenticeship and Training, as 
             specified, or any state apprenticeship agency, and consists of a 
             minimum 8,000 hours of practical work experience on fire 
             suppression systems, with at least 700 of the hours in related 
             instruction, including classroom or shop instruction.

           e)    "Work on a fire suppression system" means the onsite layout, 
             onsite fabrication, testing, inspection, certification, work, and 
             practice concerning the construction, installation, alteration, 
             or extension of fire suppression systems, and the servicing, 





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             testing, or maintaining of automatic fire extinguishing systems, 
             as specified, but does not include: 

             i)     Work on a fire alarm system, portable fire extinguisher, 
               or dry standpipe not connected to a fire suppression system.

             ii)    Work on yard hydrants and underground water supply lines 
               outside of the building.

             iii)   Demolition work.

             iv)    Work on one- and two-family dwellings, and manufactured 
               homes, as specified.

             v)     An inspection or other service performed by a state or 
               local fire official.

        4)Prohibits a person from employing a person or cause or direct a 
          person to perform work on a fire suppression system unless the 
          person performing that work possesses either of the following:  (a) 
          a valid sprinkler fitter certificate, (b) a valid sprinkler fitter 
          apprentice permit, if directly or immediately supervised by a holder 
          of a valid sprinkler fitter certificate, as specified.

        5)Prohibits a person or entity from contracting to perform work on a 
          fire suppression system without holding a valid sprinkler fitter or 
          employing certified sprinkler fitters.  Each employee who performs 
          work on a fire suppression system must hold the appropriate 
          certificate or permit.

        6)Prohibits a person from soliciting, by sign, listing, or any other 
          form of advertisement, work regulated by this chapter unless he has 
          been certified or employs certified sprinkler fitters.

        7)Provides a person may work on a fire suppression system if he or she 
          holds a valid sprinkler fitter apprentice permit issued, as defined, 
          if the work performed is within the scope of the permit, and if the 
          work is performed only under the direct and immediate supervision of 
          a holder of a valid sprinkler fitter certificate, as defined.

        8)Provides the SFM shall award a  sprinkler fitter certificate  to a 
          person who files an application and pays the application fee as 
          established by the SFM and does any of the following:

           a)   Completes an approved sprinkler fitter apprenticeship program, 
             and takes and passes an examination established by the SFM.





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           b)   Completes a plumbing or pipefitters apprenticeship program 
             approved by the Department of Industrial Relations, Division of 
             Apprenticeship Standards, on or before January 1, 2012, and takes 
             and passes an examination established by the SFM.

           c)   Holds a valid C-16 contractor license as a fire protection 
             contractor and takes and passes a written examination given by 
             the SFM.

        9)Provides that a person may obtain a  sprinkler fitter apprentice 
          permit  by filing the application with the application fee and, 
          provides acceptable evidence to the SFM, that he or she is enrolled 
          in and attending an approved fire sprinkler fitter apprenticeship 
          program, as defined.

        10)Establishes reciprocity provisions, by providing the SFM shall 
          issue a sprinkler fitter certificate, without examination, to a 
          person who files the application with the application fee and, 
          provides acceptable evidence to the SFM, that he or she is currently 
          practicing and competent and holds a similar sprinkler fitter 
          authorization from another state with qualification requirements 
          substantially similar to, or greater than, California, and that 
          state grants authorization to competent certificate holders.

        11)Provides SFM shall issue a sprinkler fitter certificate, without 
          examination, to any person who, on or before June 30, 2012, submits 
          the application and fees, and demonstrates they have done any of the 
          following:

           a)   Successfully completed a state or federally approved sprinkler 
             fitter apprenticeship program.

           b)   Performed at least 8,000 hours of documented practical 
             experience of work on fire suppression systems within the past 
             five years.

           c)   Successfully completed a plumbing or pipefitters 
             apprenticeship program approved by the Department of Industrial 
             Relations, Division of Apprenticeship Standards on or before 
             January 1, 2012.

        12)Provides the SFM shall maintain on a publicly accessible Internet 
          Website a central registry of those issued sprinkler fitter 
          certificates and sprinkler fitter apprentice permits, and update the 
          registry on a monthly basis.





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        13)Makes various provisions regarding sprinkler fitter certificates, 
          and permits:

           a)   Each certificate and permit must be annually renewed.

           b)   Each certificate holder must annually complete a minimum of 
             eight hours of skill training related specifically to the 
             installation of fire suppression systems, and training courses 
             must be preapproved by the SFM.

           c)   The SFM shall issue a photo identification card to each 
             certificate holder or permit holder.  Each certificate holder or 
             permit holder shall maintain the photo identification card in his 
             or her possession at all times when performing work on a fire 
             suppression system.

        14)Provides the certification and permit requirements shall be 
          enforced by the SFM, and specifically authorizes the SFM to do the 
          following:

           a)   Inspect project worksites where work on fire suppression 
             systems is being performed to ensure that persons performing that 
             work possess valid certificates or permits.

           b)   In any circumstance in which the SFM determines that work on 
             fire suppression systems is being performed in violation of the 
             Act, the SFM shall issue a stop work order requiring that work to 
             cease.  Work shall not be resumed until verification has been 
             made that all work on the fire suppression system is performed by 
             duly authorized persons.

           c)   Revoke or suspend a certificate or permit, or reprimand a 
             certificate holder or permit holder, for incompetence or for any 
             violation of the Act or of the SFM rules or regulations under the 
             Act.

        15) Specifies that any person who violates any provision of the Act or 
          any rule, regulation, or order of the SFM shall be subject to a 
          civil penalty of $500 to $1,000, for each act or violation.  Each 
          day a person performs work on a fire suppression system without a 
          valid certificate or permit shall constitute a separate violation.

        16)Provides that any licensed contractor who violates any provision of 
          the Act shall be subject to disciplinary action by the Contractors' 
          State License Board. 





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        17)Makes it a misdemeanor for a person to knowingly or willfully 
          violate the Act or any applicable rule or regulation adopted 
          pursuant to the Act.

        18)Provides the SFM shall adopt a schedule of fees to be paid by 
          holders of certificates and permits in amounts that are determined 
          by the SFM to be necessary to cover the cost of administering and 
          enforcing the Act.  Further provides that a city or county fire 
          department, or a district providing fire protection services, may 
          adopt a schedule of fees as required to cover the cost of 
          enforcement, as defined.

        19)Provides that all annual and renewal fees collected, shall be 
          deposited in the SFM Licensing and Certification Fund (SFM-LCF), and 
          shall be available upon appropriation by the Legislature only for 
          purposes, as specified.

        20)Makes legislative findings and declarations.


        FISCAL EFFECT:  Unknown.  This bill has been keyed "fiscal" by 
        Legislative Counsel.


        COMMENTS:
        
        1. Purpose.  This bill is sponsored by  Sprinkler Fitters Association 
           of California  (Sponsor) to ensure that those who install, repair, 
           maintain, test, and/or inspect fire sprinkler or suppression 
           systems have the proper training and expertise to do so, and that 
           important skill level is monitored and ensured through 
           certification by the State Fire Marshal.

        According to the Sponsor:  "Existing law ensures nothing nor does it 
           reduce the risk that a fire sprinkler or fire suppression system 
           will be installed, repaired, maintained, tested, or inspected 
           properly so that in its time of need, it will work properly and 
           protect the lives and property it is intended to protect.  
           Additionally, local fire agencies neither have the personnel nor 
           the finances to properly inspect these systems as they are 
           installed."

        "There is no law or regulation in California that requires anyone who 
           installs, repairs, maintains, tests, and/or inspects fire 
           sprinklers or fire suppression systems to demonstrate, show, or 





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           verify they have had any such training at all, or have any such 
           expertise, other than the company itself being licensed by the 
           Contractors State Licensing Board.  Anybody can install, maintain, 
           repair, test, and/or inspect fire sprinkler or fire suppression 
           systems in California, unlike many other states and local 
           communities."

        2. Background.  The Sponsor indicates that in California, fire 
           sprinklers and other automatic fire extinguishing systems must be 
           designed by licensed engineers, installed by licensed contractor 
           companies, and thereafter be maintained, tested, and serviced by 
           licensed servicing companies.  However, fire sprinkler fitter, who 
           actually installs, repairs, modifies, services, maintains, and 
           tests the fire sprinklers and other fire extinguishing systems in 
           high-rise buildings, hotels, apartments, hospitals, schools, day 
           care facilities, and even single-family residences are not required 
           to be licensed, registered, nor are they required to be trained or 
           have experience with installing these fire safety systems.  The 
           Sponsor points out that fire sprinkler fitters in California are 
           not required to complete an apprenticeship program, nor have any 
           training or experience for that matter.

        The Sponsor believes that the current system in which only the company 
           is licensed is inadequate for purposes of consumer protection.  
           Certification of the individual fitter is a mechanism to 
           demonstrate that the actual fitter has the requisite knowledge and 
           experience to work on these life safety systems.  It is a 
           requirement that the fitter be trained, a requirement that is 
           currently absent from California law, according to the Sponsor.

        The Sponsor states that the Department of Industrial Relations has 
           approved four statewide sprinkler fitter apprenticeship programs in 
           California that would be a viable training source to meet the 
           requirements of the Act.  SB 886 would also permit those who have 
           completed a federally-approved apprenticeship program, or any 
           approved sprinkler apprenticeship program of another state to sit 
           for the SFM written examination.  

        Certification of knowledge and experience is merely a preventative 
           measure that is designed to reduce the likelihood, or risk of a 
           fire sprinkler system is defectively installed or maintained, and 
           will fail to perform as required during a catastrophic fire 
           incident, according to the Sponsor, and is designed to prevent the 
           loss of life, whether it is a first responder or a member of the 
           public.  






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        3. Related Legislation.   AB 660  (Torrico) of 2010, was substantially 
           similar to this bill.  This measure was held on Suspense in the 
           Senate Appropriations Committee.

         SB 405  (Cogdill) of 2009, requires, on and after January 1, 2011, the 
           installation of a project performed by a Class C-16 fire protection 
           contractor to be under the direct and immediate supervision of a 
           commercial fire sprinkler supervisor or a residential fire 
           sprinkler supervisor.  Requires, on and after January 1, 2011, fire 
           protection contractors to implement a fire sprinkler 
           installation-training program for their sprinkler fitters, as 
           defined, and supervisors, with specified exemptions.  This measure 
           was referred to Senate Business, Professions and Economic 
           Development Committee but was not heard.

         AB 2288  (Torrico) of 2008, was also substantially similar to this 
           bill.  This measure was held on Suspense in Senate Appropriations 
           Committee.

        4. Arguments in Support.  The  Sprinkler Fitters Association of 
           California  , in sponsoring the bill, indicates, along with  Sprinkler 
           Fitters UA Local 709  and  Road Sprinkler Fitters Local Union 669,  
           that fire sprinklers and extinguishing systems are many times 
           installed, maintained and serviced by unqualified persons, who do 
           so incorrectly.  They further state:  "A defective installation may 
           go unnoticed during routine inspections, testing, maintenance and 
           servicing of the fire safety systems.  Yet for the life of the 
           building, the fire sprinkler or fire extinguishing system will 
           never operate properly when that catastrophic moment comes for it 
           to perform its life saving and fire protection purpose."  
           Proponents further argue that although several other states require 
           apprenticeship training programs and licensing or registration to 
           install, maintain and service fire extinguishing systems, 
           California does not.  This bill will protect California's citizens 
           and firefighters from those not having the skill or training to 
           install, maintain, and service fire sprinklers, according to the 
           Proponents. 

        The Sponsor argues that while 17 other states and several major cities 
           have laws that require training through apprenticeship programs, 
           and require fire sprinkler fitters to be licensed, registered, or 
           certified to work on a fire sprinkler system and other fire 
           extinguishing systems, California does not.  The Sponsor states 
           that fire departments across the state have shared many stories 
           describing faulty and inadequate work on fire suppression systems 
           in their respective jurisdictions.  The problem is that the 





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           defective work may go unnoticed during the routine inspection of 
           the fire safety system.  Placing the burden to inspect and check 
           each and every component of a sprinkler system upon state and local 
           fire officials is irresponsible because across the state neither 
           have the staff nor money to do so.  The answer is to establish a 
           minimum statewide training standard for those who install or work 
           on these life safety systems, according to the Sponsor. 

        5. Arguments in Opposition.  As introduced, this bill is opposed by 
            California Association of Life Safety and Fire Equipment  (CALSAFE), 
            Associated Builders and Contractors of California (ABC California), 
           the  American Institute of Architects California Council  (AIA), the 
            California Restaurant Association  (CRA),  Golden State Builders 
           Exchanges  (GSBE) and the  National Federation of Independent 
           Business  (NFIB), arguing that the bill would create a monopoly 
           where only licensed fire sprinkler fitters are allowed to install 
           and perform service on all fire suppression equipment, regardless 
           of training or specialty, including not just water-based 
           sprinklers, but also non-water based pre-engineered and engineered 
           fire protection systems.  The Opponents further argue that 
           currently there are numerous review and inspection points by local 
           building departments, fire departments, architects, fire protection 
           engineers, built into the current installation process that should 
           ensure the final product meets the design and functionality 
                      criteria intended.  The licensed C-16 contractor is also monitoring 
           work to protect their specialty license and business.

        Opponents believe that in difficult fiscal times, businesses simply 
           cannot afford increased costs.  Increased costs will not only 
           affect businesses, but also all commercial end-users such as 
           restaurants, hotels, schools, universities and all local and state 
           government entities, all of which purchase and maintain fire 
           suppression equipment covered by this bill.

         Fire Equipment Manufacturers' Association  (FEMA) believes the bill as 
           drafted is overly broad and appears to require that only sprinkler 
           fitters can install, service or maintain fire extinguishing 
           systems, including systems that are not connected to sprinklers, 
           are not water based, and that are currently installed, serviced and 
           maintained by licensed fire service companies.  FEMA argues that 
           the bill would raise costs for businesses, schools, local and state 
           government, and more importantly, would decrease fire safety in 
           California and have a negative impact on small businesses.

        According to FEMA, the bill protects and promotes the fire sprinkler 
           fitter industry at the expense of those fire service companies who 





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           currently work on pre-engineered and engineered fire suppression 
           systems.  FEMA suggests that California state fire codes require 
           most public occupancies (businesses, schools etc.) to be protected 
           by a mixture of water based sprinklers and fixed automatic fire 
           extinguishing systems, such as a fire extinguishing hood system 
           that is required over restaurant stoves.

        FEMA draws a distinction between the various types of fire suppression 
           systems and the types of businesses that work on those systems, and 
           argues that in California, a mix of fire sprinkler fitters work on 
           sprinkler systems and fire service companies work on fire 
           suppression systems.  The existing system allows for competition 
           within the industry, but more importantly allows those who are best 
           trained and qualified to work on certain systems to work on those 
           systems (i.e. fire sprinkler fitters on water based sprinklers, and 
           fire service companies on engineered and pre-engineered fire 
           protection systems).  

        This measure would dissolve the current system, which FEMA believes 
           functions well, and would eliminate all market competition.  Only 
           licensed fire sprinkler fitters would be allowed to work on any 
           fire suppression equipment, regardless of training or specialty, 
           including not just water based sprinklers, but pre-engineered and 
           engineered fire protection systems, according to FEMA.

        Finally, FEMA believes that fire sprinkler fitters, as defined in this 
           bill, will not have the necessary experience or training 
           (especially manufacturer's training) to properly install, service, 
           maintain or test the wide range of fire protection equipment in the 
           bill.  "While we would not argue fire sprinkler fitters are best 
           qualified to work on water based sprinkler systems, we cannot agree 
           that fire sprinkler fitters are the only people qualified to work 
           on any and all fire protection equipment."

         6. Policy Issue  :  Are disciplinary actions required by CSLB 
           appropriate?  This bill would authorize the CSLB to refuse to 
           issue, reinstate, reactivate, renew, or suspend a contractor's 
           license due to unpaid financial liabilities, including fees that 
           may be assessed by the Office of the State Fire Marshal.  The bill 
           does this by adding the SFM to the list of state agencies that 
           enforce the state's labor and employment laws, and collect tax 
           revenues, specifically:  the Department of Industrial Relations, 
           the Employment Development Department, and the Franchise Tax Board. 
            The Committee may wish to consider whether the proposed regulatory 
           operations under the State Fire Marshall are at the same level of 
           concern which would warrant the suspension of a contractor's 





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           license for unpaid financial liabilities to the agency.


           This bill also specifies under the Health and Safety Code that any 
           person licensed by the CSLB who violates any of the building laws 
           or standards enacted relating to automatic fire extinguishing 
           systems in the Health and Safety Code shall be deemed in willful or 
           deliberate disregard and violation of the building laws and subject 
           to disciplinary action by the CSLB.  The bill does this by 
           referencing Section 7110 of the Business and Professions Code.  
           Since this is establishing a cause for disciplinary action against 
           a licensee of the CSLB, it would seem appropriate that the 
           provision be mirrored in the Contractors State License Law in the 
           Business and Professions Code. 

         NOTE  :  Double-referral to Public Safety Committee second.  (Because of 
        legislative deadlines, any amendments that are made to the bill in 
        this Committee should be processed in the next committee.)
        

        SUPPORT AND OPPOSITION:
        
         Support:   

        Sprinkler Fitters Association of California (Sponsor)
        Sprinkler Fitters UA Local 709
        Road Sprinkler Fitters Local Union 669


         Opposition:   

        American Institute of Architects California Council
        Associated Builders and Contractors of California
        California Association of Life Safety and Fire Equipment 
        California Restaurant Association
        Fire Equipment Manufacturers' Association
        Golden State Builders Exchanges
        Marin Builders Association
        National Federation of Independent Business



        Consultant:G. V. Ayers








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