BILL NUMBER: AB 697 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 26, 2015
INTRODUCED BY Assembly Member Chu
FEBRUARY 25, 2015
An act to amend Section 1101.5 of the Civil Code,
relating to water conservation. An act to add and
repeal Section 17053 of the Revenue and Taxation Code, relating to
taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 697, as amended, Chu. Water-conserving plumbing
fixtures. Personal income tax: credits: senior citizen
renters.
The Personal Income Tax Law allows various credits against the tax
imposed by that law, including for a qualified renter, defined as an
individual who rented and occupied premises in this state which
constituted his or her principal place of residence during at least
50% of the taxable year, in a specified amount based on adjusted
gross income, as provided.
This bill would allow, for each taxable year beginning on or after
January 1, 2016, and before January 1, 2019, a credit in an amount
equal to the increase in rent of a qualified residence in specified
counties for the taxable year compared to the previous taxable year
that is paid or incurred by a qualified taxpayer, which is defined as
a senior citizen meeting a certain low-income requirements.
This bill would take effect immediately as a tax levy.
Existing law requires the replacement of plumbing fixtures that
are not water conserving, as defined as noncompliant plumbing
fixtures, in residential and commercial real property built and
available for use on or before January 1, 1994, as specified.
This bill would make technical, nonsubstantive changes to these
provisions.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. (a) The Legislature finds and declares
all of the following:
(1) According to a Kaiser Family Foundation study, California's
seniors have the nation's highest poverty rate.
(2) Twenty percent of California adults over 65 years of age live
below the poverty threshold of about $16,000, when the higher cost of
housing and health care are taken into account.
(3) Nationally, homelessness among seniors is projected to rise by
33 percent between 2010 and 2020, and by 100 percent between 2010
and 2050, according to a 2010 report from the Homelessness Research
Institute.
(4) The Los Angeles Homeless Services Authority reports that from
2011 to 2013, inclusive, Los Angeles County had a 29.1 percent
increase in the number of homeless people 62 years of age and older.
(5) According to a March 2013 report of the National Low Income
Housing Coalition, California is the second least affordable state
behind Hawaii.
(6) According to the federal Department of Housing and Urban
Development, fair market rent in California for a two-bedroom
apartment is $1,341 a month. In order to afford this level of rent
and utilities, without paying more than 30 percent of income on
housing, a household needs to earn $4,470 monthly or $53,640
annually.
(7) Three out of the 10 most expensive metropolitan areas and six
out of the 10 most expensive counties nationally are in California.
(8) In order to slow the growing numbers of homeless senior
citizens being priced out of their homes, California must begin to
explore practical means to slow this disaster.
(b) The Legislature hereby enacts this act to test if the personal
income tax credit described in Section 17053 of the Revenue and
Taxation Code is a viable method to help low-income California senior
renters remain in their homes.
SEC. 2. Section 17053 is added to the
Revenue and Taxation Code , to read:
17053. (a) For each taxable year beginning on or after January 1,
2016, and before January 1, 2019, there shall be allowed as a credit
against the "net tax," as defined in Section 17039, an amount equal
to the increase in rent of a qualified residence for the taxable year
compared to the previous taxable year that is paid or incurred by a
qualified taxpayer.
(b) For the purposes of this section, the following definitions
shall apply:
(1) "Qualified taxpayer" means a person with all of the following
characteristics:
(A) He or she is 62 years of age or older.
(B) He or she rents a qualified residence as his or her primary
residence, he or she is named on the lease for that residence, and he
or she has rented that residence for a period of 12 months or more.
(C) His or her combined annual household income is fifty thousand
dollars ($50,000) or less, more than one-third of which is spent on
rent.
(2) "Qualifying residence" means a property that is located in the
County of Alameda, the City and County of San Francisco, the County
of Ventura, and the County of Santa Clara.
(c) In the case where the credit allowed by this section exceeds
the "net tax," the excess may be carried over to reduce the "net tax"
in the following year, and succeeding seven years, if necessary,
until the total credit is exhausted.
(d) A credit shall not be allowed under this section if a renter's
credit has been claimed by a taxpayer pursuant to Section 17053.5.
(e) This section shall remain in effect only until December 1,
2019, and as of that date is repealed.
SEC. 3. This act provides for a tax levy within
the meaning of Article IV of the Constitution and shall go into
immediate effect.
SECTION 1. Section 1101.5 of the Civil Code is
amended to read:
1101.5. (a) On or before January 1, 2019, all noncompliant
plumbing fixtures in a multifamily residential real property and in a
commercial real property shall be replaced with water-conserving
plumbing fixtures.
(b) An owner or the owner's agent may enter the owner's property
for the purpose of installing, repairing, testing, and maintaining
water-conserving plumbing fixtures required by this section,
consistent with the notice requirements of Section 1954.
(c) On and after January 1, 2019, the water-conserving plumbing
fixtures required by this section shall be operating at the
manufacturer's rated water consumption at the time that the tenant
takes possession. A tenant shall be responsible for notifying the
owner or owner's agent if the tenant becomes aware that a
water-conserving plumbing fixture within his or her unit is not
operating at the manufacturer's rated water consumption. The owner or
owner's agent shall correct an inoperability in a water-conserving
plumbing fixture upon notice by the tenant or if detected by the
owner or the owner's agent.
(d) (1) On and after January 1, 2014, all noncompliant plumbing
fixtures in a multifamily residential real property and in a
commercial real property shall be replaced with water-conserving
plumbing fixtures in the following circumstances:
(A) For building additions in which the sum of concurrent building
permits by the same permit applicant would increase the floor area
of the space in a building by more than 10 percent, the building
permit applicant shall replace all noncompliant plumbing fixtures in
the building.
(B) For building alterations or improvements in which the total
construction cost estimated in the building permit is greater than
one hundred fifty thousand dollars ($150,000), the building permit
applicant shall replace all noncompliant plumbing fixtures that
service the specific area of the improvement.
(C) Notwithstanding subparagraph (A) or (B), for any alterations
or improvements to a room in a building that require a building
permit and that room contains any noncompliant plumbing fixtures, the
building permit applicant shall replace all noncompliant plumbing
fixtures in that room.
(2) Replacement of all noncompliant plumbing fixtures with
water-conserving plumbing fixtures, as described in paragraph (1),
shall be a condition for issuance of a certificate of final
completion and occupancy or final permit approval by the local
building department.
(e) On and after January 1, 2019, a seller or transferor of
multifamily residential real property or of commercial real property
shall disclose to the prospective purchaser or transferee, in
writing, the requirements of subdivision (a) and whether the property
includes any noncompliant plumbing fixtures. This disclosure may be
included in other transactional documents.