BILL NUMBER: SB 407	AMENDED
	BILL TEXT
	AMENDED IN SENATE  APRIL 23, 2009
	AMENDED IN SENATE  APRIL 13, 2009
INTRODUCED BY   Senator Padilla
                        FEBRUARY 26, 2009
   An act to add 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. Property transfers: plumbing fixtures
replacement. 
   (1) Existing 
    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 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 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
 , with specified exceptions  . The bill would require that
compliance with this  section   requirement
 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   requirement has  been
satisfied.  By expanding the crime of perjury, this bill
would impose a state-mandated local program.   The bill
would provide that the certification is a material term of any sale
or transfer.  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:  yes
  no  . State-mandated local program:  yes
  no  .
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
  noncompliant  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) 
    (c)  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  is a
material term of any sale or transfer and  may be included in
other transactional documents.
   1101.3.  For the purposes of this article:
   (a)  "Existing   "Noncompliant  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.
  fixture" means any fixture that is in compliance with
current building standards applicable to a newly constructed
residential or commercial real property of the same type. 
   (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   provision
 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   a city, county, or city and
county from adopting or enforcing any retrofit requirements relating
to noncompliant plumbing fixtures that  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.