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