BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1975
                                                                  Page  1


          ASSEMBLY THIRD READING
          AB 1975 (Fong)
          As Amended  April 7, 2010
          Majority vote 

           WATER, PARKS & WILDLIFE           13-0                          
           
           -------------------------------- 
          |Ayes:|Huffman, Fuller, Bill     |
          |     |Berryhill, Arambula, Tom  |
          |     |Berryhill, Blumenfield,   |
          |     |Caballero, Ruskin,        |
          |     |Fletcher, Bonnie          |
          |     |Lowenthal, Salas, Yamada, |
          |     |Fong                      |
          |     |                          |
           -------------------------------- 
           SUMMARY  :   Requires water submetering on multiunit structures.   
          Specifically,  this bill  :  

          1)Requires multiunit residential structures or mixed use  
            residential and commercial structures that are permitted after  
            January 1, 2011, to add, as a condition of new service, water  
            meters or submeters that measure the water supplied to each  
            individual unit.

          2)Requires the owner or operator of a multiunit residential  
            structure to charge tenants for water and sewer based on  
            actual water usage.

          3)Limits the amount of administrative fees and late payment fees  
            the landowner may charge for reading meters or submeters and  
            collecting water and sewer service payments.

          4)Creates an exception to the metering requirement where  
            individual unit metering is infeasible.

           EXISTING LAW  :

          1)Requires urban water suppliers that do not get water from the  
            federal Central Valley Project to install water meters on all  
            municipal and industrial service connections and to charge  
            each customer based on actual volume of water delivered.









                                                                  AB 1975
                                                                  Page  2


          2)Each water corporation with 500 or more service connections  
            that is not already subject to water metering requirements  
            under the existing Water Measurement Law must currently  
            install a water meter on each new service connection and must  
            retrofit each unmetered service connection by January 1, 2025.

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   As California attempts to manage its scarce water  
          supplies, the installation of water meters on multiunit  
          residential and mixed use commercial buildings will encourage  
          increased conservation by making homeowners, business owners, or  
          renters aware of the amount of water they are utilizing.   
          Charging based on actual usage will reward those who conserve.

          This legislation is modeled on a draft ordinance which was  
          subsequently adopted by the City of San Diego on April 5, 2010.   
          A report by the City of San Diego's Office of the Independent  
          Budget Analyst found that multifamily units currently comprise  
          44% of the total housing in San Diego and that the trend was  
          increasing.  The report also cited studies showing a 15% to 39%  
          water savings in submetered multifamily properties.

          One environmental justice group who supports this bill's goals  
          opposes its language empowering landlords to submeter and bill  
          tenants fearing this would lead to abuses.  They state that  
          over-charging, failing to maintain systems, and denying access  
          to records are just a few of the problems currently being  
          experienced as a result of landlords taking on the role of  
          utilities in mobilehome parks, many of which are submetered.   
          They suggest amending the bill to require submetered tenants to  
          be the direct customers of the water utilities just as  
          single-family homeowners are.   

          One county advises this bill would likely encourage water  
          conservation and efficiency but opposes the provision requiring  
          submetering to be a condition of new water service to the  
          property.  This county wants to eliminate water purveyor  
          responsibility for ensuring submetering and shift the  
          requirement to a construction permit condition of approval.  


           Analysis Prepared by:     Tina Cannon Leahy / W., P. & W. / (916)  
          319-2096








                                                                  AB 1975
                                                                  Page  3




                                                               FN:  0003902