BILL ANALYSIS Ó SB 837 Page 1 Date of Hearing: June 14, 2011 ASSEMBLY COMMITTEE ON JUDICIARY Mike Feuer, Chair SB 837 (Blakeslee) - As Amended: April 12, 2011 PROPOSED CONSENT SENATE VOTE : 36-0 SUBJECT : Residential Real Property: Disclosures KEY ISSUE : Should a statutorily required disclosure form relating to transfers of resideNtial real property be updated to include a recently enacted requirement that certain homes be equipped with water-conserving plumbing fixtures by a specified date? FISCAL EFFECT : As currently in print this bill is keyed non-fiscal. SYNOPSIS Legislation enacted in 2009 required that residential real property built on or before January 1, 1994, be equipped with water-conserving plumbing fixtures by January 1, 2017, or by January 1, 2014, in cases of alterations or improvements. This non-controversial technical bill merely modifies a statutorily prescribed real property transfer disclosure form to account for this change in the law. The bill passed off the Senate Floor on a 36-0 vote. There is no known opposition. SUMMARY : Revises a statutorily prescribed disclosure form relating to real property transfers to note legal requirements and to include a space for disclosing whether or not the property is equipped with water-conserving plumbing fixtures, as required by law. EXISTING LAW : 1)Requires a seller or transferor of residential real property, as specified, to provide the transferee with certain disclosures about the property by use of a statutorily prescribed disclosure form. (Civil Code Sections 1102 to 1102.6.) SB 837 Page 2 2)Requires the owner of a single-family residential property, built and available for use on or before January 1, 1994, to equip the property with water-conserving plumbing fixtures on or before January 1, 2017, or by January 1, 2014, for all building alterations or improvements. Specifies that on or after January 1, 2017, a seller or transferor of single-family residential property shall disclose these requirements in writing to the buyer or transferee and disclose whether the property includes any noncompliant plumbing fixtures. (Civil Code Sections 1101.1 to 1101.9.) COMMENTS : Legislation enacted in 2009 (SB 407, Chapter 587) required that residential real property built on or before January 1, 1994, to be equipped with water-conserving plumbing fixtures by January 1, 2017, or by January 1, 2014, in cases of alterations or improvements. This non-controversial bill, which is sponsored by the California Association of Realtors (CAR), merely adds the necessary disclosure language to an already-existing, statutorily prescribed real property transfer disclosure form to account for this recent change in the law. Although the legislation creating this new requirement had initially included a provision for changing the form, this provision was omitted near the end of session because of confusion over how to reconcile the form modification with another piece of legislation that required installation of carbon monoxide detection devices and similar sought to modify the required form. That technical drafting issue has been addressed. ARGUMENTS IN SUPPORT : According to the author and sponsor, this bill merely updates an existing disclosure reform, the content of which is prescribed by statute. CAR notes that SB 407 (Chapter 587, Stats. of 2009) required all single-family homes built prior to January 1, 1994, to be equipped with water-conserving plumbing fixtures on or before January 1, 2017, or on or before January 1, 2014, in cases of alterations or improvements. Amending the form now, according to CAR, will be "of great importance to home buyers, especially those who may alter or improve their property and thus be subject to the law for remodeling by January 1, 2014." REGISTERED SUPPORT / OPPOSITION : Support SB 837 Page 3 California Association of Realtors (sponsor) Opposition None on file Analysis Prepared by : Thomas Clark / JUD. / (916) 319-2334