Amended in Assembly August 8, 2013

Amended in Assembly August 6, 2013

Amended in Senate May 24, 2013

Amended in Senate May 14, 2013

Amended in Senate April 29, 2013

Senate BillNo. 750


Introduced by Senator Wolk

(Coauthor: Assembly Member Fong)

February 22, 2013


An act to add Chapter 2.5 (commencing with Section 1954.201) to Title 5 of Part 4 of Division 3 ofbegin insert,end insert the Civil Code, and to addbegin delete Chapter 8.5end deletebegin insert Section 517 to, and Article 5 end insert(commencing with Section 537) tobegin insert Chapter 8 ofend insert Division 1 ofbegin insert,end insert the Water Code, relating to water.

LEGISLATIVE COUNSEL’S DIGEST

SB 750, as amended, Wolk. Building standards: water meters: multiunit structures.

(1) The Water Measurement Law requires every water purveyor to require, as a condition of new water service on and after January 1, 1992, the installation of a water meter to measure water service. That law also requires urban water suppliers to install water meters on specified service connections, and to charge water users based on the actual volume of deliveries as measured by those water meters in accordance with a certain timetable.

This bill would require a water purveyor that provides water service to a newly constructed multiunit residential structure or newly constructed mixed-use residential and commercial structure that submits an application for a water connection after January 1,begin delete 2014end deletebegin insert 2015end insert, to requirebegin delete the installation of either a water meter, as defined, or a submeter, as defined, to measure water suppliedend deletebegin insert measurement of the quantity of water suppliedend insert to each individual dwelling unitbegin insert and to permit the measurement to be by individual water meters or submeters, as definedend insert. The bill would require the owner of the structure to ensure that a water submeter installed for these purposes complies with laws and regulations governingbegin delete installation,end delete approval ofbegin delete meter typeend deletebegin insert submeter types or the installationend insert, maintenance, reading, billing, and testing ofbegin delete waterend delete submeters, including, but not limited to, the California Plumbing Code. The bill would exempt certainbegin delete buildingsend deletebegin insert structuresend insert from these requirements. The bill would prohibit a water purveyor from imposing an additional capacity or connection fee or charge for a submeter that is installed by the owner, or his or her agent.begin insert The bill would provide that these provisions shall become operative on January 1, 2015.end insert

(2) Existing law generally regulates the hiring of dwelling units and, among other things, imposes certain requirements on landlords and tenants. Among these requirements, existing law requires landlords to provide tenants with certain notices or disclosures pertaining to, among other things, pest control and gas meters.

This bill would, if a water purveyor requires the installation of a meter or submeter, as specified, or a submeter has been installed, impose further requirements on landlords, relating to submetered water service to individual dwelling units. The bill wouldbegin delete prohibit a landlord from charging tenants separately for water service in a property with submeters unless the submetering system is installed, operated, and maintainedend deletebegin insert require a landlord to install and operate submeters in prescribed dwelling units,end insert as specified. The bill would require a landlord to make certain disclosures to the tenant prior to the execution of the rental agreement,begin delete including, among other things, that the tenant will be billed for water separately from the rent and that the tenant will also be billed for a portion of any recurring fixed charge billed to the property by the water purveyor, as specifiedend deletebegin insert if the landlord intends to charge a tenant separately from rent for water service in a property with submetersend insert. The bill would specify thatbegin insert as part of the monthly bill for water serviceend insert a landlord may only bill a tenant for volumetric water usage, as specified,begin delete andend delete a portion of any recurring fixed charge billed to the property by the water purveyor, as specifiedbegin insert, a billing, administrative, or other fee, as prescribed, and a late chargeend insert. The bill would specify thatbegin delete the landlord’s billing cycle for water service must match that of the water purveyorend deletebegin insert payments are required to be due at the same point in each billing cycle, as prescribed,end insert and that each bill must includebegin insert and separately set forthend insert certain information. The bill would prohibit a landlord from chargingbegin insert certainend insert additional feesbegin delete related to water service, except as providedend delete. The bill would require a landlord to maintain and make availablebegin delete installation, maintenance, and testing recordsend deletebegin insert in writing the date the submeter was last inspected, tested, and verified and the data used to calculate the tenant’s billend insert to a tenant uponbegin insert the tenant’s written or electronicend insert request, as specified. The bill would require a landlord tobegin delete make certain repairs on the water system in a dwellingend deletebegin insert investigate, and if warranted, rectify, a condition that indicates that water is being distributed to the tenant not at his or her directionend insert, as specified.begin insert The bill would permit a landlord to enter a unit for specified purposes relating to a submeter or water fixture provided that certain requirements are met.end insert The bill would permit the assessment ofbegin delete administrative fees andend delete late fees, as specified.begin insert The bill would provide that these provisions shall become operative on January 1, 2015.end insert

In addition to actual damages, this bill would permit a tenant to recover from the landlord certain damages, costs, and fees for a violation of these provisions. The bill would authorize a city, county, city and county, or district to enforce these provisions.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

P3    1

SECTION 1.  

Chapter 2.5 (commencing with Section 1954.201)
2is added to Title 5 of Part 4 of Division 3 of the Civil Code, to
3read:

4 

5Chapter  2.5. Water Service
6

 

7

1954.201.  

It is the intent of the Legislature in enacting this
8chapter to do both of the following:

9(a) To encourage the conservation of water in multifamily
10residential rental buildings through means either within the
11landlord’s or the tenant’s control.

12(b) To ensure that the practices involving the submetering of
13dwelling units for water service are just and reasonable, and include
14appropriate safeguards for both tenants and landlords.

P4    1

1954.202.  

As used in this chapter:

2(a) “Billing agent” means a person or entity who contracts to
3provide submetering services to a landlord, including billing.

4(b) “Landlord” includes all agents of the landlord, billing agents,
5and successors in interest to the real property interests of the
6landlord. “Landlord” does not include a tenant who rents all or a
7portion of a dwelling unit to subtenants. “Landlord” does not
8include a common interest development, as defined in Section
94100 of the Civil Code.

10(c) “Property” means real property containing two or more
11dwelling units that is served by a single meter.

12(d) “Rental agreement” includes a fixed-term lease.

13(e) “Renting” includes leasing, whether on a periodic or
14fixed-term basis.

15(f) “Submeter” means a device that measures water consumption
16of an individual rental unit within a multiunit residential structure
17or mixed-use residential and commercial structure, and which is
18owned and operated by the landlord.begin delete “Submeter” includes
19submeters, if more than one submeter is being used to measure
20water usage in a particular dwelling unit.end delete

21(g) “Water service” includes any charges for other services,
22including sewage or storm water services, that are based in whole
23or in part on the volume of water usage recorded by a water meter
24begin insert or submeterend insert.

25(h) “Water purveyor” means a water purveyor as defined in
26Section 512 of the Water Code.

27

1954.203.  

(a) A landlordbegin delete shall not charge tenants separately
28for water service in a property with submeters unless the
29submetering system is installed, operated, and maintainedend delete
begin insert subject
30to this chapter shall install and operate submetersend insert
as follows:

31(1) The submeter isbegin delete certifiedend deletebegin insert inspected, tested, and verifiedend insert for
32commercial purposes pursuant to law, including, but not limited
33to, Section 12500.5 of the Business and Professions Code.

34(2) The installation conforms to all laws, including, but not
35limited to, regulations established pursuant to Section 12107 of
36the Business and Professions Code.begin insert However, the installation need
37not comply with a requirement that an outside faucet be under the
38exclusive use of the tenant, provided that the tenant is notified
39upon commencement of the tenancy that water dispensed from the
40faucet shall be charged to the tenant. The landlord shall establish
P5    1reasonable rules to prohibit the use of the faucet by any person
2other than the tenant.end insert

begin delete

3(3) The installation was performed by a registered service
4agency as defined in Section 12531 of the Business and Professions
5Code.

6(4) The submeter is operated in compliance with regulations
7established pursuant to Section 12107 of the Business and
8Professions Code.

9(5)

end delete

10begin insert(3)end insert The submeter for a dwelling unit measures only water that
11is supplied for the exclusive use of the particular dwelling unit and
12only to an area within the exclusive possession and control of the
13tenant of the dwelling unit.begin insert However, the installation need not
14comply with a requirement that an outside faucet be under the
15exclusive use of the tenant, provided that the tenant is notified
16upon commencement of the tenancy that water dispensed from the
17faucet shall be charged to the tenant. The landlord shall establish
18reasonable rules to prohibit the use of the faucet by any person
19other than the tenant.end insert

begin delete

20(6)

end delete

21begin insert(4)end insert The primary submeter indicator or remote reader may be
22easily accessed and read by the tenant of the dwelling unit, and
23read by the owner landlord without entering the dwelling unit.

begin delete

24(7)

end delete

25begin insert(5)end insert Each submeter is reinspected and recalibrated within the
26time limits specified in law or regulation.

begin delete

27(8)

end delete

28begin insert(6)end insert All plumbing fixtures and fittings within each dwelling unit
29conform to all laws regarding habitability of dwellings and water
30conservation.

31(b) This section does not require a water purveyor to assume
32responsibility for ensuring compliance with any law or regulation
33governing installation, certification, maintenance, and testing of
34submeters and associated onsite plumbing.

35

1954.204.  

Prior to executing a rental agreement, a landlord
36that intends to charge a tenant separatelybegin insert from rentend insert for water service
37begin insert in a property with submetersend insert shall clearly disclose the following
38information to the tenant, in writing, in at least 10-point type, which
39may be incorporated into the rental agreement:

P6    1(a) That the tenant will be billed for water service separately
2from the rent.

begin delete

3(b) The average bill for water service for units at the property
4over the most recent calendar year or, if the building is less than
5one year old, a portion of that calendar year.

end delete
begin insert

6(b) An estimate of the monthly bill for water service for units
7at the property, which may be expressed as a range with up to a
825 percent difference in average or median usage, determined by
9either of the following:

end insert
begin insert

10(1) The average bill for water service for comparative units at
11the property over three of the past six months.

end insert
begin insert

12(2) Using the national average of 3,600 gallons of water used
13per unit per month as a basis for the bill and including any charges
14pursuant to paragraphs (2) and (3) of subdivision (a) of Section
151954.205.

end insert
begin delete

16(c) The frequency of submeter readings.

17(d)

end delete

18begin insert(c)end insert The due dates and payment procedures for bills for water
19service.

begin delete

20(e)

end delete

21begin insert(d)end insert If a billing agent is used, thebegin insert agent’send insert name, address, email
22address, begin deletenormal hours of operation, and toll-free telephone number
23ofend delete
begin insert a toll-free telephone number or a local number for the tenant
24to callend insert
the agentbegin insert, and the days and hours the agent is available by
25phone at either number for the tenant to contact the agent
26regarding billing questionsend insert
.

begin insert

27(e) That the monthly bill for water service may only include four
28charges:

end insert
begin insert

29(1) Payment due for the amount of usage as measured by the
30submeter, charged at the exact same rate or rates as the water
31purveyor.

end insert
begin insert

32(2) Payment of a portion of the fixed fee charged by the water
33purveyor for water service divided equally among all the units in
34the property.

end insert
begin insert

35(3) A fee for the landlord’s or billing agent’s costs, up to four
36dollars ($4) per month or 40 percent of the amount billed for the
37actual amount of water used, whichever is less.

end insert
begin insert

38(4) A late fee, with the amounts and times assessed, in
39compliance with Section 1954.213.

end insert

P7    1(f) The date the submeter was lastbegin delete tested and calibratedend delete
2begin insert inspected, tested, and verifiedend insert, and the date by which it must be
3begin delete retested and recalibrated under lawend deletebegin insert reinspected, tested, and verified
4under law, if available. If this information is not available, the
5landlord shall disclose that the information is not availableend insert
.

begin delete

6(g) A statement in substantially the following form:


8The landlord (or name of landlord) shall charge you (or name
9of tenant, or term used in the rental agreement for the tenant) for
10water use at the same rate that the (water purveyor) bills its
11customers for residential use. To find out what the rate charged
12by (water purveyor) is, contact (water purveyor) at (address),
13(telephone number).
14


15(h) A statement that the tenant shall be charged for water service
16at the exact rate or rates charged by the water purveyor serving
17the property.

18(i) A statement that the tenant shall also be charged for a portion
19of any recurring fixed charge billed to the property by the water
20purveyor and that the tenant’s portion of the recurring fixed charge
21shall be proportional to the amount of water the tenant uses in
22relation to the usage for the entire property.

23(j) The current amount of the recurring fixed charge referred to
24in subdivision (i).

25(k) A statement that no other connection, disconnection, billing,
26or other periodic fee or charge, except for an administrative fee,
27a late fee, or a submeter testing fee, may be assessed. If the landlord
28reserves the right to charge an administrative fee or a late fee, the
29amount and terms of the administrative fee or the late fee shall
30also be disclosed.

31(l)

end delete

32begin insert(g)end insert The location of thebegin delete submeter, and directions on how to read
33theend delete
submeter.

begin insert

34(h) A statement that if the tenant believes that the submeter
35reading is inaccurate or the submeter is malfunctioning, the tenant
36may contact the local county sealer and request that the submeter
37be tested. Contact information for the county sealer shall be
38included in the disclosure to the tenant.

end insert
begin insert

39(i) A statement that this disclosure is only a summary of
40information that a landlord must provide to a tenant if the landlord
P8    1intends to charge a tenant separately from rent for water service
2in a property with submeters.

end insert
3

1954.205.  

(a) As part ofbegin delete a water service billend deletebegin insert the monthly bill
4for water serviceend insert
, a landlord shall only bill a tenant forbegin delete volumetricend delete
5begin insert the following:end insert

6begin insert(1)end insertbegin insertend insertbegin insertVolumetricend insert usage of water service pursuant to subdivision
7begin delete (b) and for a portion of anyend deletebegin insert (b).end insert

8begin insert(2)end insertbegin insertend insertbegin insertAnyend insert recurring fixed charge for water service billed to the
9property by the water purveyor begin deletepursuant to subdivision (f). The
10landlord shall not impose any periodic, connection, termination,
11or other fee, however denominated, except for administrative fees,
12late fees, or testing fees as provided in this chapter.end delete
begin insert that, at the
13landlord’s discretion, shall be calculated by either of the following:end insert

begin insert

14(A) The proportion of the tenant’s volumetric water use, as
15shown on the submeter, in relation to the water use of the entire
16property, as shown on the property’s water meter.

end insert
begin insert

17(B) Dividing the total fixed charge equally among the total
18number of residential units and non-residential units served by a
19single meter operated by a water purveyor.

end insert
begin insert

20(3) A billing, administrative, or other fee for the landlord’s and
21billing agent’s costs, not to exceed 40 percent of the amount billed
22under paragraph (1) or four dollars ($4), whichever is less.
23Beginning January 1, 2018, the fee imposed pursuant to this
24paragraph may be adjusted annually by the landlord commensurate
25with an increase in the Consumer Price Index.

end insert
begin insert

26(4) A late charge as assessed pursuant to Section 1954.213.

end insert

27(b) The amount of the volumetric portion of the bill shall be
28calculated by multiplying the volume of water used, as determined
29by the submeter for the billing period in question, by the rate or
30rates for volumetric usage established by thebegin insert waterend insert purveyorbegin delete ofend delete
31begin insert forend insert water service forbegin delete residential useend deletebegin insert the propertyend insert.

32(c) If thebegin insert rate orend insert rates established by the water purveyor change,
33the bill shall be prorated to reflect the time each rate was in effect.
34The landlord may assess charges for the entire billing period based
35on the lower rate.

36(d) If a submeter reading for the beginning or end of a billing
37period is, in good faith, not available, the landlordbegin delete mayend deletebegin insert shallend insert bill
38the tenantbegin delete 75 percent of the amount originally disclosed to the
39tenant pursuant to subdivision (b) of Section 1954.204end delete
begin insert according
40to Section 1954.210end insert
.

begin delete

P9    1(e) No charges shall be imposed under this chapter if readings
2have been unavailable for more than three months.

end delete
begin delete

3(f) The amount of the recurring fixed charge for water service
4billed to the property by the water purveyor to be charged to the
5tenant shall be based on the proportion of the tenant’s volumetric
6water use, as shown on the submeter, in relation to the water use
7of the entire property, as shown on the property’s water meter.

end delete
begin insert

8(e) This section shall apply to leases first entered into or
9renewed on or after January 1, 2014. For leases first entered into
10or renewed prior to January 1, 2014, this section shall apply but
11the landlord may additionally bill the tenant for other charges as
12provided in the lease, including, but not limited to, beginning and
13ending water service.

end insert
begin delete
14

1954.206.  

(a) The billing cycle for a water service bill pursuant
15to this chapter shall match that of the water purveyor.

16(b)

end delete
17begin insert

begin insert1954.206.end insert  

end insert

begin insert(a)end insert Submeters shall be read within three days of the
18same point in each billing cycle.

begin delete

19(c) Bills

end delete

20begin insert(b)end insertbegin insertend insertbegin insertPaymentsend insert shall be due at the same point in each billing cycle.
21However,begin delete billsend deletebegin insert paymentsend insert shall be due no earlier than 10 days after
22mailing, if mailed, orbegin delete 5end deletebegin insert fiveend insert days after personal delivery.begin insert A tenant
23may agree in writing to receive a bill electronically, in which case
24payments are due five days after electronic delivery. A tenant may
25rescind authorization for electronic delivery of bills at any time.
26A tenant shall not be required to pay bills electronically.end insert

begin delete

27(d)

end delete

28begin insert(c)end insert Bills shall includebegin insert and separately set forthend insert the following
29information:

30(1) The submeter readings for the beginningbegin delete and endend deletebegin insert date and
31ending dateend insert
of the billing cycle, the dates read, and the indicated
32consumptionbegin insert as determined by subtracting the amount of the
33beginning date submeter reading from the amount of the ending
34date submeter readingend insert
.

35(2) Thebegin delete unit of measure for the readings and usageend deletebegin insert amounts
36billed pursuant to paragraphs (1) to (4), inclusive, of subdivision
37(a) of Section 1954.205end insert
.

38(3) The rate or rates chargedbegin insert for the volumetric chargeend insert per unit
39of measure.

begin delete

40(4) The amount of the current charges for volumetric use.

end delete
begin delete

P10   1(5) The amount of any recurring fixed charge for water service
2billed to the property by the water purveyor.

end delete
begin delete

3(6) The total water consumption for the property, as indicated
4by the property’s water meter.

end delete
begin delete

5(7) The percentage of the total water consumption of the
6property that was consumed by the tenant.

end delete
begin delete

7(8) The amount of current charges assessed to the tenant for the
8tenant’s share of any recurring fixed charges for water service
9billed to the property by the water purveyor.

end delete
begin delete

10(9) A separate entry showing past due amounts, if any.

end delete
begin delete

11(10) A separate entry showing any previously imposed late
12charges.

end delete
begin insert

13(4) The amount, if any, still owing from the previous month’s
14bill.

end insert
begin insert

15(5) The amount, if any, still owing from bills prior to the
16previous month’s bill.

end insert
begin insert

17(6) The late fee, if any, imposed on amounts specified in
18paragraph (4) or (5).

end insert
begin delete

19(11)

end delete

20begin insert(7)end insert The total amount due.

begin delete

21(12)

end delete

22begin insert(8)end insert The due date for thebegin delete billend deletebegin insert paymentend insert.

begin delete

23(13)

end delete

24begin insert(9)end insert A statement of begin deletethe amount of any new late charges, if any,
25andend delete
when the latebegin delete chargesend deletebegin insert feesend insert would apply.begin delete Late charges shall be
26imposed pursuant to Section 1954.212.end delete

begin delete

27(14)

end delete

28begin insert(10)end insert Thebegin delete name,end delete mailing address, email address, telephone
29number, and the regularbegin delete business hours of the person or personsend delete
30begin insert telephone hours during which end insert the tenant maybegin delete call withend deletebegin insert contact
31the billing agent withend insert
questions or concerns regarding thebegin delete bill, and
32who is authorized toend delete
begin insert bill. The landlord or billing agent shall have
33in place procedures toend insert
make any necessary adjustments to the bill
34begin insert upon contact by the tenantend insert. If a billing agent is used, the name of
35the entity shall also be disclosed and the telephone number of the
36billing agent shall bebegin insert either a end insert toll freebegin insert or a local number for the
37tenant to contact the billing agentend insert
.

begin insert

38(11) A statement that the biller is not the water purveyor that
39includes the name of the local water purveyor providing the water
40service to the master meter.

end insert
begin delete
P11   1

1954.207.  

A submeter shall be read within three days of the
2beginning or end of a tenancy to determine the amount of the first
3or last bill for water service. Tenancies that begin or end within
4three days of a normal reading may be billed as usual.

end delete
begin insert
5

begin insert1954.207.end insert  

(a) At the beginning of a tenancy, a submeter shall
6be read after the tenant takes possession. If a regular monthly
7reading occurs less than five days prior to the tenant taking
8possession, that reading may be substituted to establish usage.

9(b) For a water-service bill at the end of a tenancy, the submeter
10shall be read within five days, if possible. If the submeter cannot
11be read within five days at the end of a tenancy, the bill amount
12for the final month shall be based on the bill amount for the
13previous month. Tenancies that end within five days of a regular
14monthly reading may be billed according to that reading. At the
15end of a tenancy, payment shall be due no earlier than 10 days
16after mailing of the bill, if mailed, or five days after personal
17delivery, or five days after electronic delivery.

end insert
18

1954.208.  

(a) A landlord shall not charge or recover, or allow
19to be charged or begin deleterecovered, any of the following:end delete

begin delete

20(1) Any additional servicing, establishment, maintenance, meter
21reading, meter testing, billing, or submetering fees, or any other
22fee, including those charged by a billing agent, except as provided
23in Section 1954.210.

end delete

begin delete24(2) Any end delete begin insertrecovered end insertfees billed to the landlord by the water
25purveyor, billing agent, or any other person for any deposit,
26disconnection, reconnection, late payment, or any otherbegin delete water
27service related purpose.end delete
begin insert penalty.end insert

28(b) This section does not prohibit a landlord from recovering
29any costs listed in subdivision (a) that are incorporated into the
30rent for a dwelling unit, if the rent is a fixed amount per rental
31period, the charges are not listed separately, and the rental charges
32are otherwise lawful.

33

1954.209.  

The landlord shall maintain and make available in
34writing, at the tenant’sbegin insert written or electronicend insert request, within seven
35days after the request, the following:

begin delete

36(a) All installation and maintenance records of the submeter in
37the tenant’s dwelling unit, including the name, license number,
38and contact information of the registered service agency that
39installed or serviced the submeter.

end delete
begin delete

P12   1(b) The most recent test results of the submeter in the tenant’s
2dwelling unit.

end delete
begin delete

3(c) The method and sources used to determine the rate at which
4the tenant is charged for water.

end delete
begin insert

5(a) The date the submeter was last inspected, tested, and verified
6for use, to the extent this information is available.

end insert
begin insert

7(b) The data used to calculate the tenant’s bill, as follows:

end insert
begin insert

8(1) The most recent water bill for the property’s master water
9meter showing the recurring fixed charge for water service billed
10to the property by the water purveyor, and the usage charges for
11the property, including any tiered amounts.

end insert
begin insert

12(2) Any other bills for water service, as defined in subdivision
13(g) of Section 1954.202, for the property.

end insert
begin insert

14(3) The number of units in the property.

end insert
begin insert

15(4) If not shown on the bill for the property, the per unit charges
16for volumetric water usage, including any tiered amounts.

end insert
begin insert

17(5) The formula used to calculate the charge for the tenant’s
18volumetric water usage.

end insert
begin delete
19

1954.210.  

(a) If the water system in a dwelling unit does not
20function properly, including leaks, fixtures allowing unnecessary
21water consumption, or a malfunctioning submeter, the tenant may
22request that the landlord repair the problem. The landlord shall
23make the repairs within seven days.

24(b) A tenant may request that a landlord have a submeter tested
25for accuracy. The landlord shall respond to the request within seven
26days, and the test shall be carried out as soon as reasonably
27practicable. The test shall be performed by a registered service
28agency or other person authorized by law to perform the test. If
29the test shows that the submeter is inaccurate beyond the tolerances
30established by law, the landlord shall repair or replace the submeter.
31If the test shows the submeter was indicating more usage than the
32actual amount used and beyond established tolerances, the landlord
33shall refund the estimated overcharge to the tenant within 30 days
34of receipt of the results.

35(c) The landlord shall pay for the cost of the test if either:

36(1) The tenant requests the test because the submeter has
37indicated that water usage has increased more than 25 percent for
38two consecutive billing periods over the previous three billing
39periods.

P13   1(2) The submeter is found to be inaccurate beyond the tolerances
2established by law.

3(d) The tenant shall pay for the test in all other cases, up to a
4maximum of seventy-five dollars ($75).

5(e) The landlord is not required to test a submeter under
6subdivision (b) if the submeter was tested and found accurate
7within two years prior to the tenant’s request and the landlord
8provides the written results of that test to the tenant. However, the
9landlord shall have the submeter tested if the tenant pays in advance
10for the entire cost of the test.

end delete
begin delete
11

1954.211.  

(a) A landlord may charge an administrative fee for
12the actual costs of reading submeters and providing billing services,
13up to a maximum of four dollars ($4) per submetered tenant per
14month for water service bills totaling ten dollars ($10) or more. If
15a water service bill totals nine dollars and ninety-nine cents ($9.99)
16or under, a landlord may charge an administrative fee for the actual
17costs of reading submeters and providing billing services up to 40
18percent of the water service bill per submetered tenant per month.

19(b) Beginning January 1, 2017, an administrative fee imposed
20pursuant to this section may be adjusted annually by the landlord
21commensurate with an increase in the Consumer Price Index.

22

1954.212.  

(a) A landlord may impose a late fee of up to 5
23percent for any water service bill not paid within 20 days of its
24due date. If the 20th day falls on a Saturday, Sunday, or holiday,
25the late fee shall not be imposed until the day after the first business
26day following the 20th day.

27(b) (1) Notwithstanding Section 1950.5, if a water service bill
28remains unpaid after the time described in subdivision (a) expires,
29the landlord may, in lieu of a late fee, deduct the amount due from
30the tenant’s security deposit. The landlord may require an
31 additional deposit of security following a deduction, if the deposit
32would be otherwise lawful under Sections 827 and 1950.5.

33(2) The landlord may also deduct an unpaid water service bill
34from the security deposit upon the ending of a tenancy, provided
35that the last water service bill showing the amount due is attached
36to the documentation required by Section 1950.5, and all the other
37requirements of that section are met.

38(c) If a water service bill remains unpaid for 30 days after its
39due date, the nonpayment shall constitute a curable breach of a
P14   1material lease obligation. The landlord may commence an action
2to remedy the breach, as provided by law.

3(d) Water service charges under this chapter shall not constitute
4rent.

5(e) A landlord shall not shut off the water or otherwise interfere
6with the provision of water service to a dwelling unit for any
7reason, including nonpayment of a bill assessed pursuant to this
8chapter.

end delete
begin insert
9

begin insert1954.210.end insert  

(a) If a tenant notifies the landlord, or the landlord
10otherwise becomes aware, of a condition that indicates that water
11is being distributed to the tenant not at his or her direction,
12including, but not limited to, a leak, a drip, a running toilet, or a
13submeter reading indicating constant or abnormal water usage,
14the landlord shall investigate, and if warranted, rectify the
15condition.

16(b) If the condition is rectified more than 10 days after the initial
17investigation, the tenant’s volumetric usage for any month or
18months that include the period between 10 days after the initial
19investigation and the repair shall be deemed to be fifteen dollars
20($15) or actual usage, whichever is less. At the landlord’s option,
21if submeter readings are available to determine the usage at a
22point prior to investigation and a point following repair, usage
23shall be deemed to be fifty cents ($0.50) per day for those days
24between the two submeter readings or actual usage, whichever is
25less.

26(c) If the condition remains unrectified for six months after
27investigation, no further volumetric usage charges may be imposed
28until the condition is repaired.

end insert
begin insert
29

begin insert1954.211.end insert  

(a) The landlord may enter the unit for the purpose
30of installing, repairing, testing, and maintaining a submeter or for
31the purpose of repairing or testing any water fixture suspected by
32the landlord or reported by the tenant to be in need of repair,
33provided the requirements of Section 1954 are met.

34(b) The landlord may also enter a unit to read a submeter,
35provided the requirements of this chapter and Section 1954 are
36met.

end insert
begin insert
37

begin insert1954.212.end insert  

(a) If a monthly submeter reading necessary to
38measure volumetric usage is unavailable, the landlord may bill
39the tenant 75 percent of the average amount billed for volumetric
40usage for the last three months for which complete billing
P15   1information is available. The landlord shall disclose the adjustment
2on the bill.

3(b) If no complete billing information is available for the prior
4three months, the volumetric usage charge shall be deemed to be
550 cents ($0.50) per day that the data is not available.

6(c) If monthly submeter readings remain unavailable for more
7than six months, the volumetric usage charge shall be deemed to
8be zero for any subsequent month that the data is not available.

end insert
begin insert
9

begin insert1954.213.end insert  

(a) A landlord may impose a late fee for any water
10service bill not paid within 20 days of its due date. If the 20th day
11falls on a Saturday, Sunday, or holiday, the late fee shall not be
12imposed until the day after the first business day following the
1320th day.

14(b) A late fee of up to seven dollars ($7) may be imposed if any
15amount of a bill remains unpaid after the time described in
16subdivision (a). A late fee of up to ten dollars ($10) may be imposed
17if any amount remains unpaid after 50 days, as calculated in the
18same manner as described in subdivision (a). If any partial
19payments are made, they shall be credited against the bill that has
20been outstanding the longest.

21(c) (1) Notwithstanding Section 1950.5, if a water service bill
22remains unpaid after the time described in subdivision (a) expires,
23the landlord may, in lieu of a late fee, deduct the amount due from
24the tenant’s security deposit. The landlord may require an
25additional deposit of security following a deduction, if the deposit
26would be otherwise lawful under Sections 827 and 1950.5.

27(2) The landlord may also deduct an unpaid water service bill
28from the security deposit upon the ending of a tenancy, provided
29that the last water service bill showing the amount due is attached
30to the documentation required by Section 1950.5, and all the other
31requirements of that section are met.

32(d) If a water service bill remains unpaid for 30 days after its
33due date, the nonpayment shall constitute a curable breach of a
34material lease obligation. The landlord may commence an action
35to remedy the breach, as provided by law.

36(e) Water service charges under this chapter shall not constitute
37rent.

38(f) A landlord shall not shut off the water or otherwise interfere
39with the provision of water service to a dwelling unit for any
P16   1reason, including nonpayment of a bill assessed pursuant to this
2chapter.

end insert
3

begin delete1954.213.end delete
4begin insert1954.214.end insert  

In addition to actual damages sustained by a tenant
5for a violation of this chapter, the tenant may recover from the
6landlord three times the amount of actual damages, reasonable
7attorney’s fees, and costs. The landlord may also be liable for a
8civil penalty of up to one month’s rent, unless the landlord shows
9that the violation was made in good faith and not part of a pattern
10and practice of violations of this chapter.

11

begin delete1954.214.end delete
12begin insert1954.215.end insert  

(a) A city, county, city and county, or district may
13enforce this chapter.

14(b) This chapter does not preclude or preempt an ordinance that
15regulates the approval of submeter types or the installation,
16maintenance, reading, billing, or testing of submeters and
17associated onsite plumbing if the begin deleteordinance meets either of the
18following requirements:end delete

19begin delete(1)end deletebegin deleteend deletebegin deleteIsend deletebegin insert ordinance wasend insert adopted prior to January 1, 2013.

begin delete

20(2) Meets or exceeds the minimum requirements provided by
21this chapter.

end delete
22

begin delete1954.215.end delete
23begin insert1954.216.end insert  

The rights or obligations established under this
24chapter shall not be waived. Any purported waiver is void.

begin delete
25

1954.216.  

This chapter applies only to property where
26submeters have been installed or where a meter and submeters are
27installed pursuant to Chapter 8.5 (commencing with Section 537)
28of Division 1 of the Water Code.

end delete
begin insert
29

begin insert1954.217.end insert  

(a) This chapter shall apply to both of the following:

30(1) All dwelling units offered for rent or rented in a building
31where submeters were installed pursuant to Article 5 (commencing
32with Section 537) of Chapter 8 of Division 1 of the Water Code.

33(2) All other dwelling units where a landlord has previously
34installed and uses or voluntarily installs and uses a submeter to
35charge a tenant separately for water service.

36(b) Nothing in this chapter shall do the following:

37(1) Apply to any building without submeters installed and in
38use.

39(2) Be construed to enlarge or diminish the rights or obligations
40with respect to charges or allocation methods to determine water
P17   1service costs to tenants in a building without submeters installed
2and in use.

end insert
begin insert
3

begin insert1954.218.end insert  

A submeter system that measures only a portion of
4a dwelling unit’s water usage, including, but not limited to, a
5system that measures only hot water usage, shall not be subject to
6this chapter, if the system is first put in service before January 1,
72014.

end insert
begin insert
8

begin insert1954.219.end insert  

This chapter shall become operative on January 1,
92015.

end insert
begin delete
10

SEC. 2.  

Chapter 8.5 (commencing with Section 537) is added
11to Division 1 of the Water Code, to read:

12 

13Chapter  8.5. Multiunit Structures
14

 

15

537.  

(a) The following definitions govern the construction of
16this chapter:

17(1) “Meter” has the same meaning as “water meter” in Section
18516.

19(2) “Submeter” means a device that measures water consumption
20of an individual unit within a multiunit residential structure or
21mixed-use residential and commercial structure, and is read by the
22owner of the structure or the owner’s agent.

23(b) Structures in all of the following categories shall be exempt
24from this chapter:

25(1) Low-income housing. For purposes of this paragraph,
26“low-income housing” means a residential building financed with
27low-income housing tax credits, tax-exempt mortgage revenue
28bonds, general obligation bonds, or local, state, or federal loans
29or grants, for which the rents of the occupants in lower income
30households, as defined in Section 50079.5 of the Health and Safety
31Code, do not exceed rents prescribed by deed restrictions or
32regulatory agreements pursuant to the terms of the financing or
33financial assistance, and for which not less than 25 percent of the
34dwelling units within the building are designated for occupancy
35by lower income households, as defined in Section 50079.5 of the
36Health and Safety Code.

37(2) Student dormitories.

38(3) Long-term health care facilities, as defined in Section 1418
39of the Health and Safety Code.

P18   1(4) Time-share property, as defined in subdivision (aa) of
2Section 11212 of the Business and Professions Code.

3(5) Residential care facilities, as defined in subdivision (k) of
4Section 1569.2 of the Health and Safety Code.

5(c) A submeter used to measure water supplied to an individual
6residential unit that is required to be installed by a water purveyor
7pursuant to this chapter, shall be of a type approved pursuant to
8Section 12500.5 of the Business and Professions Code, and shall
9be installed and operated in compliance with regulations established
10 pursuant to Section 12107 of the Business and Professions Code.

11

538.  

(a) Each water purveyor that sells, leases, rents, furnishes,
12or delivers water service to a newly constructed multiunit
13residential structure or newly constructed mixed-use residential
14and commercial structure for which an application for a water
15connection, or more than one connection, is submitted after January
161, 2014, shall require the installation of a water meter or submeter
17to measure the water supplied to each individual dwelling unit as
18a condition of new water service.

19(b) (1) If the water purveyor requires installation of submeters
20pursuant to subdivision (a), the owner of the structure shall ensure
21that each submeter installed complies with all laws and regulations
22governing the approval of submeter types or the installation,
23maintenance, reading, billing, and testing of submeters, including,
24but not limited to, the California Plumbing Code.

25(2) This subdivision does not require a water purveyor to fund
26or assume responsibility for ensuring compliance with any law or
27regulation governing the approval of submeter types or the
28installation, maintenance, reading, billing, and testing of submeters
29and associated onsite plumbing.

30(c) A water purveyor shall not impose an additional capacity or
31connection fee or charge for a submeter that is installed by the
32owner, or his or her agent.

33

538.5.  

(a) This chapter does not restrict the authority of a water
34purveyor, city, county, city and county, or other local agency to
35adopt and implement a program to promote water conservation
36that includes the installation of water meters and submeters, as
37required pursuant to subdivision (a) of Section 538, if the program
38is at least as stringent as the requirements of this chapter.

39(b) This chapter does not preclude or preempt an ordinance that
40regulates the approval of submeter types or the installation,
P19   1maintenance, reading, billing, or testing of submeters and
2associated onsite plumbing if the ordinance meets either of the
3following requirements:

4(1) Is adopted prior to January 1, 2013.

5(2) Meets or exceeds the minimum requirements provided by
6this chapter.

7

539.  

It is the intent of the Legislature that this chapter should
8not be construed to impose costs on any local government agency,
9except to the extent that the local government agency is a water
10purveyor.

end delete
11begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 517 is added to the end insertbegin insertWater Codeend insertbegin insert, to read:end insert

begin insert
12

begin insert517.end insert  

“Submeter” means a device that measures water
13consumption of an individual unit within a multiunit residential
14structure or mixed-use residential and commercial structure, and
15is read by the owner of the structure or the owner’s agent.

end insert
16begin insert

begin insertSEC. 3.end insert  

end insert

begin insertArticle 5 (commencing with Section 537) is added to
17Chapter 8 of Division 1 of the end insert
begin insertWater Codeend insertbegin insert, to read:end insert

begin insert

18 

19Article begin insert5.end insert  Multiunit Structures
20

 

21

begin insert537.end insert  

(a) Structures in all of the following categories shall be
22exempt from this chapter:

23(1) Low-income housing. For purposes of this paragraph,
24“low-income housing” means a residential building financed with
25low-income housing tax credits, tax-exempt mortgage revenue
26bonds, general obligation bonds, or local, state, or federal loans
27or grants, for which the rents of the occupants in lower income
28households, as defined in Section 50079.5 of the Health and Safety
29Code, do not exceed rents prescribed by deed restrictions or
30regulatory agreements pursuant to the terms of the financing or
31financial assistance, and for which not less than 25 percent of the
32dwelling units within the building are designated for occupancy
33by lower income households, as defined in Section 50079.5 of the
34Health and Safety Code.

35(2) Student dormitories.

36(3) Long-term health care facilities, as defined in Section 1418
37of the Health and Safety Code.

38(4) Time-share property, as defined in subdivision (aa) of
39Section 11212 of the Business and Professions Code.

P20   1(5) Residential care facilities, as defined in subdivision (k) of
2Section 1569.2 of the Health and Safety Code.

3(b) A submeter used to measure water supplied to an individual
4residential unit that is required to be installed by a water purveyor
5pursuant to this chapter shall be of a type approved pursuant to
6Section 12500.5 of the Business and Professions Code and shall
7be installed and operated in compliance with regulations
8established pursuant to Section 12107 of the Business and
9Professions Code.

10

begin insert538.end insert  

(a) Each water purveyor that sells, leases, rents,
11furnishes, or delivers water service to a newly constructed multiunit
12residential structure or newly constructed mixed-use residential
13and commercial structure for which an application for a water
14connection, or more than one connection, is submitted after
15January 1, 2015, shall require a measurement of the quantity of
16water supplied to each individual dwelling unit as a condition of
17new water service. The measurement may be by individual water
18meters or submeters. Applicants shall provide appropriate
19documentation to the water purveyor that identifies the location
20of the water meters or submeters.

21(b) (1) If the water purveyor requires installation of submeters
22pursuant to subdivision (a), the owner of the structure shall ensure
23that each submeter installed complies with all laws and regulations
24governing the approval of submeter types or the installation,
25maintenance, reading, billing, and testing of submeters, including,
26but not limited to, the California Plumbing Code.

27(2) This subdivision does not require a water purveyor to fund
28or assume responsibility for ensuring compliance with any law or
29regulation governing the approval of submeter types or the
30installation, maintenance, reading, billing, and testing of submeters
31and associated onsite plumbing.

32(c) A water purveyor shall not impose an additional capacity
33or connection fee or charge for a submeter that is installed by the
34owner, or his or her agent.

35

begin insert538.5.end insert  

(a) This article does not preclude or preempt an
36ordinance that regulates the approval of submeter types or the
37installation, maintenance, reading, billing, or testing of submeters
38and associated onsite plumbing if the ordinance was adopted prior
39to January 1, 2013.

P21   1(b) This article does not restrict the authority of a water
2purveyor, city, county, city and county, or other local agency to
3adopt and implement a program to promote water conservation
4that includes the installation of water meters and submeters, as
5required pursuant to subdivision (a) of Section 538 if the program
6is at least as stringent as the requirements of this article.

7

begin insert539.end insert  

It is the intent of the Legislature that this article should
8not be construed to impose costs on any local government agency,
9except to the extent that the local government agency is a water
10purveyor.

11

begin insert539.5.end insert  

This article shall become operative on January 1, 2015.

end insert


O

    94