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.