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
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          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
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          California Association of Realtors (sponsor)
           
            Opposition 
           
          None on file


           Analysis Prepared by  :    Thomas Clark / JUD. / (916) 319-2334