BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           1975 (Fong)
          
          Hearing Date:  08/09/2010           Amended: 08/02/2010
          Consultant:  Brendan McCarthy   Policy Vote: NR&W 6-3














































          AB 1975 (Fong), Page 2


          _________________________________________________________________ 
          ____
          BILL SUMMARY: AB 1975 requires the Department of Housing and  
          Community Development to adopt building standards requiring the  
          installation of individual water meters or submeters in newly  
          constructed multi-unit residential buildings. The bill requires  
          the Department to convene a stakeholder group to make  
          recommendations regarding procedures for billing occupants of  
          rental housing units for water use by building owners. The bill  
          requires water suppliers to determine whether the installation  
          of individual water meters or submeters is required for new  
          connections to multi-unit residential buildings.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2010-11      2011-12       2012-13     Fund
           
          Development of standards          $300        $320      General
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: This bill meets the criteria for referral to the  
          Suspense File.

          Current law requires all new water service connections to be  
          metered. In addition, by 2025, all existing water connections  
          must be metered. Individual units in multi-unit residential  
          buildings do not have to be individually metered or submetered.

          AB 1975 requires the Department of Housing and Community  
          Development to update the California building standards code to  
          require the installation of water meters or submeters for each  
          unit in new multi-unit residential buildings. This required  
          update would be included in the next regular update of the  
          building standards code. The bill authorizes the Department to  
          allow for exemptions from this requirement and directs the  
          Department to consider authorizing exemptions for specific types  
          of residential buildings (such as low-income housing or student  
          dormitories).

          The bill requires the Department to convene a stakeholder group  
          to develop recommendations for future legislation to establish  
          procedures and standards under which landlords could bill rental  
          tenants for water and sewage use.








          AB 1975 (Fong), Page 2


          The bill requires local water suppliers to either develop a  
          general policy about when individual meters or submeters will be  
          required for new water connections to multi-unit residential  
          buildings or make case-by-case determinations.

          The bill prohibits water suppliers from charging additional fees  
          to owners of residential buildings due to the installation of  
          submeters. 

          The bill prohibits building owners from charging tenants any  
          fees or other charges based on water use measured with a  
          submeter.

          The Department indicates that the costs to develop and adopt the  
          regulations and support the stakeholder process to be about  
          $300,000 per year for two years.