BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 407
                                                                  Page  1

          Date of Hearing:   August 19, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                    SB 407 (Padilla) - As Amended:  July 1, 2009 

          Policy Committee:                             Housing and  
          Community Development                         Vote: 4-2
                       Judiciary                              7-3

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              Yes

           SUMMARY  

          This bill requires the replacement of all noncompliant plumbing  
          fixtures in commercial and residential properties built prior to  
          1994 with water-conserving fixtures by 2017 for single family  
          residential properties and by 2019 for multi-family residential  
          and commercial properties. Specifically, this bill:

            1)Requires owners of single family residences to   replace all  
            noncompliant plumbing fixtures in the property with  
            water-conserving plumbing fixtures on or before January 1,  
            2017, and requires owners seeking building permits on or after  
            January 1, 2014 replace noncompliant plumbing fixtures as a  
            condition for receiving the permit.

          2)Requires owners of multifamily residential or commercial  
            property to replace noncompliant plumbing fixtures with  
            water-conserving plumbing fixtures on or before January 1,  
            2019, and requires those seeking permits on or after January  
            1, 2014 to replace some or all noncompliant fixtures as a  
            condition of receiving the permits. 

          3)Requires sellers of both residential and non-residential  
            properties to disclose in writing to the prospective purchaser  
            or transferee the new requirement and whether the property has  
            noncompliant plumbing fixtures. 

          4)Does not preempt local ordinances requiring retrofit of  
            noncompliant plumbing fixtures adopted prior to July 1, 2009  
            by a city or county.









                                                                  SB 407
                                                                  Page  2

           FISCAL EFFECT  

          The requirement that applicants for building permits replace  
          non-compliant fixtures as a condition for receiving permits  
          creates a new duty to inspect for local officials. The bill  
          states that should the Commission on State Mandate determine the  
          bill contains a cost mandate, the state will provide  
          reimbursement to local agencies. The annual costs for such a  
          mandate could exceed several millions of dollars annually.

           COMMENTS  

           1)Background  . In 1992, the Legislature passed SB 1224, Chapter  
            1347, that required all water closets (toilets) sold or  
            installed on or after January 1, 1994 to use no more than an  
            average of 1.6 gallons per flush, and urinals installed after  
            that date to use no more than an average of one gallon per  
            flush.   In 2007, AB 715 (Laird) Chapter 499 prohibited the  
            sale, after January 1, 2014, of toilets that exceed 1.28  
            gallons per flush and urinals that exceed 0.5 gallon per  
            flush.  The California Building Standards Commission adopted  
            this standard for new construction after 2011.

           2)Rationale  . The purpose of this bill is to more fully capture  
            potential water savings available from the conversion to  
            efficient fixtures. The author notes that reforms through  
            legislation and plumbing codes have already resulted in major  
            conservation savings, but many pre-1994 structures continue to  
            have older, inefficient fixtures. This bill is intended to  
            ensure that conversion to efficient fixtures takes place in  
            all homes and businesses.

           3)Fee disclaimer?  The bill includes a provision stating that if  
            the Commission on State Mandates determines that the bill  
            contains costs mandated by the state, reimbursement for the  
            costs will be made.  However, given that local inspection  
            agencies have authority to charge fees to cover the cost of  
            issuing building permits, it may be appropriate to include a  
            fee disclaimer in the bill. 

            Analysis Prepared by  :    Brad Williams / APPR. / (916) 319-2081