BILL NUMBER: SB 407	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 13, 2009

INTRODUCED BY   Senator Padilla

                        FEBRUARY 26, 2009

   An act to add  Section 379 to the Water Code, 
  Article 1.4 (commencing with Section 1101.1) to Chapter 2 of
Title 4 of Part 4 of Division 2 of the Civil Code,   relating to
water conservation.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 407, as amended, Padilla.  Plumbing fixtures: high
water use.   Property transfers: plumbing fixtures
replacement.  
   Existing 
    (1)    Existing  law authorizes public
entities that supply water, by the adoption of an ordinance or
resolution pursuant to specified procedures, to adopt and enforce a
water conservation program. Existing law  authorizes these
public entities to undertake water conservation and public education
programs using an information booklet or materials for use in
connection with the use or transfer of real estate  
requires certain disclosures to be made upon the transfer of real
estate. Existing law requires that all   water closets or
urinals sold or installed in the state use no more than an average of
1.6 gallons or one gallon per flush, respectively  . 
   This bill would declare that it is the intent of the Legislature
that these public entities exercise authority pursuant to those
provisions to enact ordinances that require the retrofitting of
outdated, high water use plumbing fixtures, and the disclosure
thereof, in connection with the transfer of real estate. 

   This bill would require that, on and after January 1, 2014, all
existing plumbing fixtures in any residential or commercial real
property that are not water-conserving plumbing fixtures be replaced
prior to the time of sale or transfer by the property owner with
water-conserving plumbing fixtures, as defined. The bill would
require that compliance with this section be included as a condition
of escrow for any sale or transfer. The bill would require that a
seller or transferor disclose this requirement in advance of any sale
or transfer of real property, and would provide that this disclosure
of the requirements of this section is a material term of any sale
or transfer. The bill would require a seller or transferor of real
property to certify to the prospective purchaser or transferee, in
writing, under penalty of perjury, that the requirements of this
section have been satisfied. By expanding the crime of perjury, this
bill would impose a state-mandated local program. The bill would
except from its provisions registered historical sites, certain
transfers, including those between specified family members, and
transfers in which a licensed plumber certifies that, due to the age
or configuration of the property or its plumbing, installation of
water-conserving plumbing fixtures is not technically feasible. The
bill would require a real estate agent to disclose the requirements
described above and would provide that an agent has no other
liability in this connection. The bill would also make a statement of
findings and declarations.  
   (2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.  
   This bill would provide that no reimbursement is required by this
act for a specified reason. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program:  no
  yes  .


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Article 1.4 (commencing with Section
1101.1) is added to Chapter 2 of Title 4 of Part 4 of Division 2 of
the   Civil Code   , to read:  

      Article 1.4.  Water Use Efficiency Improvements Upon Transfer


   1101.1.  The Legislature finds and declares all of the following:
   (a) Adequate water supply reliability for all uses is essential to
the future economic and environmental health of California.
   (b) Environmentally sound strategies to meet future water supply
and wastewater treatment needs are key to protecting and restoring
aquatic resources in California.
   (c) There is a pressing need to address water supply reliability
issues raised by growing urban areas.
   (d) Economic analysis by urban water agencies has identified urban
water conservation as a cost-effective approach to addressing water
supply needs.
   (e) There are many water conservation practices that produce
significant energy and other resource savings that should be
encouraged as a matter of state policy.
   (f) Since the 1991 signing of the "Memorandum of Understanding
Regarding Urban Water Conservation in California," many urban water
and wastewater treatment agencies have gained valuable experience
that can be applied to produce significant statewide savings of
water, energy, and associated infrastructure costs. This experience
indicates a need to regularly revise and update water conservation
methodologies and practices.
   (g) To address these concerns, it is the intent of the Legislature
to require property owners to retrofit outdated, high water use
plumbing fixtures upon resale, and that sellers or transferors be
required to disclose these upgrades upon resale.
   (h) It is further the intent of the Legislature that retail water
suppliers are encouraged to provide incentives, financing mechanisms,
and funding to assist property owners with these retrofit
obligations.
   1101.2.  (a) On and after January 1, 2014, all existing plumbing
fixtures in any residential or commercial real property that are not
water-conserving plumbing fixtures shall be replaced prior to the
time of sale or transfer by the property owner with water-conserving
plumbing fixtures.
   (b) Compliance with this section shall be included as a condition
of escrow for any sale or transfer.
   (c) A seller or transferor shall disclose the requirements of this
section in advance of any sale or transfer of real property. The
disclosure of the requirements of this section is a material term of
any sale or transfer.
   (d) A seller or transferor of real property shall certify to the
prospective purchaser or transferee, in writing, under penalty of
perjury, that the requirements of this section have been satisfied.
This certification may be included in other transactional documents.
   1101.3.  For the purposes of this article:
   (a) "Existing plumbing fixture" means any of the following:
   (1) Any toilet manufactured to use more than 1.6 gallons of water
per flush.
   (2) Any urinal manufactured to use more than one gallon of water
per flush.
   (3) Any showerhead manufactured to have a flow capacity of more
than 2.5 gallons of water per minute.
   (4) Any interior faucet that emits more than 2.2 gallons of water
per minute.
   (b) "Water-conserving plumbing fixtures" means any fixtures that
use less water than existing plumbing fixtures.
   (c) "Sale or transfer" means the sale or transfer of an entire
real property estate or the fee interest in that real property estate
and does not include the sale or transfer of a partial interest,
including a leasehold.
   1101.4.  This article shall not apply to any of the following:
   (a) Registered historical sites.
   (b) Transfers that are required to be preceded by the furnishing
to a prospective transferee of a copy of a public report pursuant to
Section 11018.1 of the Business and Professions Code and transfers
which can be made without a public report pursuant to Section 11010.4
of the Business and Professions Code.
   (c) Transfers by a fiduciary in the course of the administration
of a decedent's estate, guardianship, conservatorship, or trust.
   (d) Transfers from one coowner to one or more other coowners, or
from one or more coowners into or from a revocable trust, if the
trust is for the benefit of the grantor or grantors.
   (e) Transfers made by a trustor to fund an inter vivos trust.
   (f) Transfers made to a spouse, to a registered domestic partner
as defined in Section 297 of the Family Code, or to a person or
persons in the lineal line of consanguinity of one or more of the
transferors.
   (g) Transfers between spouses or registered domestic partners
resulting from a decree of dissolution of marriage or domestic
partnership, or a decree of legal separation or from a property
settlement agreement incidental to a decree.
   (h) Transfers in which a licensed plumber certifies that, due to
the age or configuration of the property or its plumbing,
installation of water-conserving plumbing fixtures is not technically
feasible.
   1101.5.  (a) Any real estate agent, real estate broker, or real
estate salesperson, whether representing a transferor or transferee,
or both, involved in the transfer of title to property subject to
this chapter, shall give written notice to the transferee and
transferor of the requirements of this article prior to the transfer
of title to the property.
   (b) The duty described in subdivision (a) is the only
responsibility of the real estate agent, real estate broker, or real
estate salesperson has with regard to this article and the real
estate agent, real estate broker, or real estate salesperson shall
have no liability for any transferor's failure to comply with any
other provisions of this article.
   (c) Once a transferring property owner has received notice of the
requirements of this article, he or she shall be solely responsible
for compliance with them.
   1101.6.  This article does not preempt any retrofit requirements
that will result in an equivalent or greater amount of water savings
than those provided for in this article. 
   SEC. 2.    No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.  
  SECTION 1.    The Legislature finds and declares
all of the following:
   (a) Adequate water supply reliability for all uses is essential to
the future economic and environmental health of California.
   (b) Developing environmentally sound strategies to meet future
water supply and wastewater treatment needs is key to protecting and
restoring aquatic resources in California.
   (c) There is a pressing need to address water supply reliability
challenges raised by expanding urban areas.
   (d) Urban water agencies, using economic analyses, have identified
urban water conservation as a cost-effective approach to addressing
water supply needs.
   (e) There are many water conservation practices that produce
significant energy and other resource savings that should be
encouraged as a matter of state policy.
   (f) Since the signing of the "Memorandum of Understanding
Regarding Urban Water Conservation in California" in 1991, many urban
water agencies and wastewater treatment agencies have gained
valuable experience that can be applied to produce significant
statewide savings of water, energy, and associated infrastructure
costs. This experience indicates a need to regularly revise and
update water conservation methodologies and practices. 

  SEC. 2.    Section 379 is added to the Water Code,
to read:
   379.  It is the intent of the Legislature that public entities
exercise authority pursuant to this chapter to enact ordinances that
require the retrofitting of outdated, high water use plumbing
fixtures, and the disclosure thereof, in connection with the transfer
of real estate.