BILL NUMBER: SB 407	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JULY 1, 2009
	AMENDED IN SENATE  MAY 20, 2009
	AMENDED IN SENATE  APRIL 23, 2009
	AMENDED IN SENATE  APRIL 13, 2009

INTRODUCED BY   Senator Padilla

                        FEBRUARY 26, 2009

   An act  to amend Section 1102.6 of, and  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. 
    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 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 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 include within these exceptions, among
others, a sale or a transfer pursuant to nonjudicial foreclosure and
a sale or transfer in which the requirements of this article would
impose a significant, financial hardship on the seller or transferor.
The bill would require that compliance with this requirement be
included as a condition of escrow for 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, that the
requirement has been satisfied. 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   establish requirements for residential
and commercial real property built and available for use on or before
January 1, 1994, for replacing plumbing fixtures that are not water
conserving, as defined as noncompliant plumbing fixtures. On and
after January 1, 2014, the bill would require, for all building
alterations or improvements to single-family residential real
property, as defined, that water-conserving plumbing fixtures replace
other noncompliant plumbing fixtures as a condition for issuance of
a certificate of final completion and occupancy or final permit
approval by the local building department. By creating a new duty to
inspect for local officials, this bill would impose a state-mandated
local program. The bill would require, on or before January 1, 2017,
that all noncompliant plumbing fixtures in any single-family
residential real property shall be replaced by the property owner
with water-conserving plumbing fixtures  . 
   The bill would require, on or before January 1, 2019, that all
noncompliant plumbing fixtures in multifamily residential real
property and commercial real property, as defined, be replaced with
water-conserving plumbing fixtures. The bill would require, on and
after January 1, 2014, for specified building alterations or
improvements to multifamily residential real property and commercial
real property, that water-conserving plumbing fixtures replace other
noncompliant plumbing fixtures as a condition for issuance of a
certificate of final completion and occupancy or final permit
approval by the local building department. By creating a new duty to
inspect for local officials, this bill would impose a state-mandated
local program.  
   The bill would require, on and after January 1, 2011, that a
seller or transferor of single-family residential real property,
multifamily residential real property, or commercial real property
disclose to a purchaser or transferee, in writing, specified
requirements for replacing plumbing fixtures, and whether the real
property includes noncompliant plumbing. The bill would provide that
the application of its requirements may be postponed up to one year,
as specified, with respect to a building for which a demolition
permit has been issued. The bill would permit a city or county to
enact a local ordinance or policy that promotes compliance with the
bill's provisions or that will result in greater water savings than
otherwise provided by the bill. The bill would provide that it does
not preempt local ordinances requiring from retrofit of noncompliant
plumbing fixtures adopted prior to July 1, 2009, that are at least as
restrictive as its provisions.  
   (2) Existing law requires certain transferors of real property
improved with 1 to 4 dwelling units to make specified disclosures to
prospective transferees regarding the characteristics of the property
and prescribes forms for the purpose of making these disclosures.
 
   This bill would revise the disclosure form described above to
include references to water-conserving plumbing fixtures.  
   (3) 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, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions. 
   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.   Installation of  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.   to
require that residential and commercial real property built and
available for use or occupancy on or before January 1, 1994, be
equipped with water-conserving plumbing fixtures. 
   (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 noncompliant
plumbing fixtures in any residential or commercial real property
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 of real property shall certify to the
prospective purchaser or transferee, in writing, that the
requirements of this section have been satisfied. This certification
may be included in other transactional documents.  
   1101.2.  Except as provided in Section 1101.7, this article shall
apply to residential and commercial real property built and available
for use on or before January 1, 1994. 
   1101.3.  For the purposes of this article: 
   (a) "Commercial real property" means any real property that is
improved with, or consisting of, a building that is intended for
commercial use, including hotels and motels, that is not a
single-family residential real property or a multifamily residential
real property.  
   (b) "Multifamily residential real property" means any real
property that is improved with, or consisting of, a building
containing more than one unit that is intended for human habitation,
or any mixed residential-commercial buildings or portions thereof
that are intended for human habitation. Multifamily residential real
property includes residential hotels but does not include hotels and
motels that are not residential hotels.  
   (a) 
    (c)  "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. 
   (d) "Single-family residential real property" means any real
property that is improved with, or consisting of, a building
containing not more than one unit that is intended for human
habitation.  
   (b) 
    (e)  "Water-conserving plumbing 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) 
    (f)  "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.  (a) On and after January 1, 2014, for all building
alterations or improvements to single-family residential real
property, as a condition for issuance of a certificate of final
completion and occupancy or final permit approval by the local
building department, the permit applicant shall replace all
noncompliant plumbing fixtures with water-conserving plumbing
fixtures.
   (b) On or before January 1, 2017, noncompliant plumbing fixtures
in any single-family residential real property shall be replaced by
the property owner with water-conserving plumbing fixtures.
   (c) On and after January 1, 2011, a seller or transferor of
single-family residential real property shall disclose in writing to
the prospective purchaser or transferee, pursuant to Section 1102.6,
the requirements of subdivision (b) and whether the real property
includes any noncompliant plumbing fixtures.  
   1101.5.  (a) On or before January 1, 2019, all noncompliant
plumbing fixtures in any multifamily residential real property and in
any commercial real property shall be replaced with water-conserving
plumbing fixtures.
   (b) (1) On and after January 1, 2014, all noncompliant plumbing
fixtures in any multifamily residential real property and any
commercial residential real property shall be replaced with
water-conserving plumbing fixtures in the following circumstances:
   (A) For building additions in which the sum of concurrent building
permits by the same permit applicant would increase the floor area
of the space in a building by more than 10 percent, the building
permit applicant shall replace all noncompliant plumbing fixtures in
the building.
   (B) For building alterations or improvements in which the total
construction cost estimated in the building permit is greater than
one hundred fifty thousand dollars ($150,000), the building permit
applicant shall replace all noncompliant plumbing fixtures that
service the specific area of the improvement.
   (C) Notwithstanding subparagraph (A) or (B), for any alterations
or improvements to a room in a building that require a building
permit and that room contains any noncompliant plumbing fixtures, the
building permit applicant shall replace all noncompliant plumbing
fixtures in that room.
   (2) Replacement of all noncompliant plumbing fixtures with
water-conserving plumbing fixtures, as described in paragraph (1),
shall be a condition for issuance of a certificate of final
completion and occupancy or final permit approval by the local
building department.
   (c) On and after January 1, 2011, a seller or transferor of
multifamily residential real property or of commercial real property
shall disclose to the prospective purchaser or transferee, in
writing, the requirements of subdivision (a) and whether the property
includes any noncompliant plumbing fixtures. This disclosure may be
included in other transactional documents.  
   1101.6.  The duty of an owner or building permit applicant to
comply with the requirements of this article shall be postponed for
one year from the date of issuance of a demolition permit for the
building. If the building is demolished within the one-year
postponement, the requirements of this article shall not apply. If
the building is not demolished after the expiration of one year, the
provisions of this article shall apply, subject to appeal to the
local building department, even though the demolition permit is still
in effect or a new demolition permit has been issued. 
    1101.4.   1101.7.   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 
    (b)     Real property for  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. 
   (i) A sale or transfer in which the requirements of this article
would impose a significant, financial hardship on the seller or
transferor, and the seller or transferor has informed the prospective
purchaser or transferee that this article does not apply due to that
financial hardship.  
   (j) A sale or transfer of real property pursuant to a nonjudicial
foreclosure governed by Article 1 (commencing with Section 2920) of
Chapter 2 of Title 14 of Part 4.  
   (k) A sale or transfer in which the beneficiary agrees to release
its lien on a property in return for payment of an amount less than
the secured obligation.  
   () A sale or transfer of real property for which a notice of
default, filed pursuant to Section 2924, is pending. 
   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 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 provision of this article.  
   (c) Nothing in this section shall be construed to alter any
existing duty of the transferring property owner, real estate agent,
real estate broker, or real estate salesperson under any other
provision of law.  
   1101.6. This article does not preempt 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.  
   (c) A building for which water service is permanently
disconnected.  
   1101.8.  A city, county, or city and county may do either of the
following:
   (a) Enact local ordinances or establish policies that promote
compliance with this article.
   (b) Enact local ordinances that will result in a greater amount of
water savings than those provided for in this article.  
   1101.9.  This article does not preempt local ordinances requiring
retrofit of noncompliant plumbing fixtures adopted prior to July 1,
2009, by a city, county, or city and county that are at least as
restrictive as the requirements of this article. 
   SEC. 2.    Section 1102.6 of the   Civil
Code   is amended to read: 
   1102.6.  The disclosures required by this article pertaining to
the property proposed to be transferred are set forth in, and shall
be made on a copy of, the following disclosure form:
   SEC. 3.    If the Commission on State Mandates
determines that this act contains costs mandated by the state,
reimbursement to local agencies and school districts for those costs
shall be made pursuant to Part 7 (commencing with Section 17500) of
Division 4 of Title 2 of the Government Code.