BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 407|
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THIRD READING
Bill No: SB 407
Author: Padilla (D)
Amended: 5/20/09
Vote: 21
SENATE TRANSPORTATION & HOUSING COMMITTEE : 7-3, 4/21/09
AYES: Lowenthal, DeSaulnier, Harman, Kehoe, Pavley,
Simitian, Wolk
NOES: Huff, Ashburn, Hollingsworth
NO VOTE RECORDED: Oropeza
SENATE JUDICIARY COMMITTEE : 3-1, 5/12/09
AYES: Corbett, Florez, Leno
NOES: Walters
NO VOTE RECORDED: Harman
SUBJECT : Property transfers: plumbing fixtures
replacement
SOURCE : Association of California Water Agencies
Metropolitan Water District of Southern
California
San Francisco Public Utilities Commission
DIGEST : This bill requires the owner of a property to
replace high-water-using plumbing fixtures prior to any
sale or transfer of the property that occurs on or after
January 1, 2014. This bill additionally (1) provides that
compliance is a condition of escrow for any sale or
transfer, (2) requires the seller or transferor to certify
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to the prospective purchaser that these requirements have
been satisfied, (3) requires a real estate agent, broker,
or salesperson to give written notice of the requirements
of this bill, and (4)
provides that the bill does not preempt retrofit
requirements of a city, county, or city and county, as
specified.
ANALYSIS : 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.
Existing law generally regulates the transfer of real
property, escrow agents, and real estate brokers. Existing
law requires certain disclosures to be made upon the
transfer of real estate.
This bill:
1. Provides that on and after January 1, 2014, all
non-compliant (high water use) 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.
2. Provides that compliance is a condition of escrow for
any sale or transfer.
3. Provides that a seller or transferor of real property
must certify to the prospective purchaser or transferee,
in writing, that the above requirements have been
satisfied. That certification may be included in other
transactional documents.
4. Requires any real estate agent, broker, or salesperson
involved in the transfer of title to property to provide
written notice to the transferee and transferor of the
requirements of this bill prior to transfer of title.
This bill specifies that the duty to provide that notice
is the only responsibility of the agent, broker, or
salesperson, and that the agent, broker, or salesperson
shall have no liability for any transferor's failure to
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comply with any other provisions of this bill.
5. Specifies nothing in the bill 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.
6. Defines non-compliant plumbing fixture, water-conserving
plumbing fixture, and sale or transfer. This bill
exempts registered historical sites and specified
transfers from its requirements.
7. Provides that the bill does not preempt a city, county,
or city and county from adopting or enforcing any
retrofit requirements relating to non-compliance
plumbing fixtures that result in an equivalent or
greater amount of water savings than those provided for
in this article.
Background
California is currently in its third year of drought, with
rain and snowfall (the primary sources of water) well below
normal levels. The resulting water shortage, as well as
California's growing population, pressure on the state's
water storage and delivery system, and climate change, have
contributed to California's current water crisis.
On February 27, 2009, Governor Schwarzenegger proclaimed a
statewide emergency due to drought and asked Californians
to reduce their water use by 20 percent. Although there
are many ways to reduce water usage, one of the most
effective is to replace older high-water use plumbing
fixtures with newer, more efficient models. That
replacement, combined with regularly checking for leaks,
can reduce per capita water use by 35 percent (according to
the American Water Works Association).
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 5/20/09)
Association of California Water Agencies (co-source)
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Metropolitan Water District of Southern California
(co-source)
San Francisco Public Utilities Commission (co-source)
California Municipal Utilities Association
City of Burbank
City of Glendale Water and Power
East Bay Municipal Utility District
Green Plumbers
Inland Empire Utilities Agency
International Association of Plumbers and Mechanical
Officials
Los Angeles Business Council
Natural Resources Defense Council
San Diego County Water Authority
Simi Valley Chamber of Commerce
Three Valleys Municipal Water District
Tree People
OPPOSITION : (Verified 5/20/09)
California Association of Realtors
California Business Properties Association
Central Basin Municipal Water District (Division V
residents)
ARGUMENTS IN SUPPORT : According to the author: "There
is a significant cross-section of California's population
that resides and/or owns older properties that are not
equipped with water-efficient plumbing fixtures as are
found in more recently-built structures. Water
conservation is a statewide goal, meaning that every
resident has the burden of ensuring that he or she observes
water efficiency practices to the best of their ability.
It is fair to say that upgrading plumbing fixtures in older
structures is rarely done."
The Association of California Water Agencies, a sponsor of
the bill, states: "Currently many water agencies have been
implementing voluntary incentive based programs which
provide consumers with rebates, vouchers, or in some cases
the fixtures themselves to promote water conservation and
water use efficiency. SB 407 would be the next step in the
process to take such local efforts to a larger scale and
implement the program statewide."
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ARGUMENTS IN OPPOSITION : The California Association of
Realtors believes that the retrofit-upon-resale approach is
doomed to fail in achieving the state's goal of reducing
water consumption by 20 percent by the year 2020 (based on
the fact that 70 percent of housing stock was constructed
prior to implementation of water efficiency standards in
1992, and less than 25 percent of homes are expected to
change hands before 2020). The Association further notes
that the obligations imposed on homeowners would be
unreasonable and overly burdensome. Specifically,
homeowners must evaluate their fixtures, and, if they must
replace the fixtures, locate a plumber, complete the work,
and deal with any code requirements. As compliance with
the bill is a condition of escrow for any sale or transfer,
those homeowners would be unable to transfer their property
until making those improvements (unless an exception
applies).
JJA:mw 5/20/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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