BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 837| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ CONSENT Bill No: SB 837 Author: Blakeslee (R) Amended: 4/12/11 Vote: 21 SENATE JUDICIARY COMMITTEE : 5-0, 4/5/11 AYES: Evans, Harman, Blakeslee, Corbett, Leno SUBJECT : Residential real property: disclosures SOURCE : California Association of Realtors DIGEST : This bill informs prospective purchasers of residential property of existing requirements by requiring disclosure of "water-conserving plumbing fixtures" in the statutorily required transfer disclosure statement. ANALYSIS : Existing law requires that a transferor of real property improved with one to four dwellings provide disclosures regarding certain characteristics of the property by means of a prescribed form. Existing law requires that, on or before January 1, 2017, a single-family residential property be equipped with water-conserving plumbing fixtures, as defined. This bill revises the form described above to require that a transferor of real property, as described above, disclose whether or not the property is equipped with water-conserving plumbing fixtures. CONTINUED SB 837 Page 2 Background SB 407 (Padilla), Chapter 587, Statutes of 2009, which passed the Senate (25-15) on September 11, 2009, established requirements for the replacement of non-water conserving plumbing fixtures in specified properties built on or before January 1, 1994. For single-family residential properties, SB 407 imposed a requirement that noncompliant fixtures be replaced with water conserving fixtures on or before January 1, 2017. On or after that date, sellers of those properties must disclose both the requirement to replace noncompliant fixtures and whether the property includes any noncompliant fixtures. In order to provide buyers of residential real property with pertinent information about a subject property, existing law requires sellers to disclosure various details about the property on a transfer disclosure statement (TDS). This bill facilitates notification of the above requirements by amending the TDS to also include disclosure about whether the residence has any "water-conserving plumbing fixtures." A similar provision was included in SB 407, but was removed in the final set of Assembly Floor amendments. FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local: No SUPPORT : (Verified 4/12/11) California Association of Realtors (source) ARGUMENTS IN SUPPORT : According to the author's office, this bill adds language that is necessary to implement SB 407 to the transfer disclosure statement. The author states: "SB 407 (Padilla) originally contained this bill language but when there was difficulty reconciling this language with other pending amendments to the Transfer Disclosure Statement, this language was dropped to accommodate the addition of a disclosure for carbon monoxide detectors." SB 837 Page 3 RJG:mw 4/12/11 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****