Amended in Assembly July 7, 2015

Amended in Assembly June 18, 2015

Senate BillNo. 7


Introduced by Senator Wolk

(Coauthor: Assembly Member Williams)

December 1, 2014


An act to add Chapter 2.5 (commencing with Section 1954.201) to Title 5 of Part 4 of Division 3 of the Civil Code, to add Section 17922.14 to the Health and Safety Code, and to add Section 517begin delete toend deletebegin insert to, and to add Article 5 (commencing with Section 537) to Chapter 8 of Division 1 of,end insert the Water Code, relating to housing.

LEGISLATIVE COUNSEL’S DIGEST

SB 7, as amended, Wolk. Housing: water meters: multiunit structures.

(1) 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 express the intent of the Legislature to encourage the conservation of water in multifamily residential rental buildings through means either within the landlord’s or the tenant’s control, and to ensure that the practices involving the submetering of dwelling units for water service are just and reasonable, and include appropriate safeguards for both tenants and landlords.

begin delete

This bill would define the term “submeter” for these purposes.

end delete
begin insert

This bill would, if a submeter is used to charge a tenant separately for water service, impose requirements on landlords relating to submetered water service to individual dwelling units. The bill would require a landlord to make certain disclosures to the tenant prior to the execution of the rental agreement, if the landlord intends to charge a tenant separately from rent for water service in a property with submeters. The bill would specify that as part of the monthly bill for water service, a landlord may only bill a tenant for volumetric water usage, as specified, a portion of any recurring fixed charge billed to the property by the water purveyor, as specified, a billing, administrative, or other fee, as prescribed, and a late charge. The bill would specify that payments are required to be due at the same point in each billing cycle, as prescribed, and that each bill must include and separately set forth certain information. The bill would prohibit a landlord from charging certain additional fees. The bill would require a landlord to maintain and make available in writing to a tenant, as specified, the date the submeter was last inspected, tested, and verified, the data used to calculate the tenant’s bill, and the location of the submeter. The bill would require a landlord to investigate and, if warranted, rectify certain problems or a submeter reading that indicates constant or abnormal water usage. The bill would permit a landlord to enter a unit for specified purposes relating to a submeter or water fixture if certain requirements are met. The bill would permit a tenant to be charged late fees, as specified. The bill would provide that these provisions shall become operative on January 1, 2017.

end insert

(2) The California Building Standards Law provides for the adoption of building standards by state agencies by requiring all state agencies that adopt or propose adoption of any building standard to submit the building standard to the California Building Standards Commission for approval and adoption. Existing law creates the Building Standards Administration Special Revolving Fund and requires that funds deposited into the fund be expended, upon appropriation by the Legislature, to carry out specified provisions of law that relate to building standards, with emphasis placed on certain activities relating to green building standards.

This bill would authorize the Department of Housing and Community Development to develop and propose for adoption by the commission building standards that require the installation of waterbegin insert meters orend insert submeters in multiunit residential buildings, as specified. The bill would exempt specified categories of structures from these building standards. This bill would provide that moneys in the fund are available to the department, upon appropriation, for administrative costs associated with the development of building standards that require the installation of waterbegin insert meters orend insert submeters in multiunit residential buildings.

(3) 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.

begin insert

This bill would add to the Water Measurement Law the requirement that 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, 2017, measure the quantity of water supplied to each individual dwelling unit as a condition of new water service and permit the measurement to be by individual water meters or submeters, as defined. The bill would require the owner of the structure to ensure that a submeter installed for these purposes complies with laws and regulations governing the approval of submeter types or the installation, maintenance, reading, billing, and testing of submeters, including, but not limited to, the California Plumbing Code. The bill would exempt certain structures 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. The bill would provide that these provisions shall become operative on January 1, 2017.

end insert
begin delete

This bill would define the term “submeter” for purposes of that law.

end delete

Vote: majority. Appropriation: no. Fiscal committee: yes. 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:

P4    1(a) To encourage the conservation of water in multifamily
2residential rental buildings through means either within the
3landlord’s or the tenant’s control.

4(b) To ensure that the practices involving the submetering of
5dwelling units for water service are just and reasonable, and include
6appropriate safeguards for both tenants and landlords.

begin delete
7

1954.202.  

“Submeter” means a device that measures water
8consumption of an individual rental unit within a multiunit
9residential structure or mixed-use residential and commercial
10structure, and that is owned and operated by the owner of the
11structure or the owner’s agent. As used in this section, “multiunit
12residential structure” and “mixed-use residential and commercial
13structure” mean real property containing two or more dwelling
14units.

end delete
begin insert
15

begin insert1954.202.end insert  

For the purposes of this chapter:

16(a) “Billing agent” means a person or entity who contracts to
17provide submetering services to a landlord, including billing.

18(b) “Landlord” means an owner of residential rental property.
19“Landlord” does not include a tenant who rents all or a portion
20of a dwelling unit to subtenants. “Landlord” does not include a
21common interest development, as defined in Section 4100 of the
22Civil Code.

23(c) “Property” means real property containing two or more
24dwelling units that is served by a single master meter.

25(d) “Purveyor” means any local purveyor who bills the landlord
26for charges related to water treatment, distribution, or usage,
27including, but not limited to, water sewer, stormwater, flood control
28and water treatment charges.

29(e) “Rental agreement” includes a fixed-term lease.

30(f) “Renting” includes leasing, whether on a periodic or
31fixed-term basis.

32(g) “Submeter” means a device that measures water
33consumption of an individual rental unit within a multiunit
34residential structure or mixed-use residential and commercial
35structure, and that is owned and operated by the owner of the
36structure or the owner’s agent. As used in this section, “multiunit
37residential structure” and “mixed-use residential and commercial
38structure” mean real property containing two or more dwelling
39units.

P5    1(h) “Water service” includes any charges, whether presented
2for payment on local purveyor bills, tax bills, or bills from other
3entities, related to water treatment, distribution, or usage,
4including, but not limited to, water, sewer, stormwater, flood
5control, and water treatment charges.

6(i) “Water purveyor” means a water purveyor as defined in
7Section 512 of the Water Code.

end insert
begin insert
8

begin insert1954.203.end insert  

(a) All properties that use submeters to separately
9bill tenants for water service shall ensure:

10(1) The submeter is inspected, tested, and verified for
11commercial purposes pursuant to law, including, but not limited
12to, Section 12500.5 of the Business and Professions Code.

13(2) The installation conforms to all laws, including, but not
14limited to, regulations established pursuant to Section 12107 of
15the Business and Professions Code.

16(3) The submeter for a dwelling unit measures only water that
17is supplied for the exclusive use of the particular dwelling unit,
18and only to an area within the exclusive possession and control
19of the tenant of the dwelling unit.

20(4) The submeter is capable of being accessed and read by the
21tenant of the dwelling unit and read by the landlord without
22entering the dwelling unit. A submeter installed before January 1,
232017, may be read by the landlord after entry into the unit, in
24accordance with this chapter and Section 1954.

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

27(6) All plumbing fixtures and fittings within each dwelling unit
28conform to all laws regarding water conservation.

29(b) This section does not require a water purveyor to assume
30responsibility for ensuring compliance with any law or regulation
31governing installation, certification, maintenance, and testing of
32 submeters and associated onsite plumbing.

end insert
begin insert
33

begin insert1954.204.end insert  

Before executing a rental agreement, a landlord
34who intends to charge a tenant separately from rent for water
35service in a property with submeters shall clearly disclose the
36following information to the tenant, in writing, in at least l0-point
37type, which may be incorporated into the rental agreement:

38(a) That the tenant will be billed for water service separately
39from the rent.

P6    1(b) An estimate of the monthly bill for water service for units
2at the property based on either of the following:

3(1) The average or median bill for water service for comparative
4units at the property over any three of the past six months.

5(2) The amount of the bill based upon average indoor water use
6of a family of four of approximately 200 gallons per day, and
7including all other monthly charges that will be assessed. Estimates
8for other gallons per day may also be included. The estimate shall
9include a statement that the average family of four uses about 200
10gallons of water each day.

11(c) The due dates and payment procedures for bills for water
12service.

13(d) An email address and a toll-free telephone number or a local
14telephone number for the tenant to contact with questions
15regarding the water service billing and the days and hours for
16regular telephone service at either number.

17(e) That the monthly bill for water service may only include the
18following charges:

19(1) Payment due for the amount of usage as measured by the
20submeter, charged at the same rate for commodity usage by the
21purveyors.

22(2) Payment of a portion of the fixed fee charged by the
23purveyors for water service divided equally among all the units at
24the property.

25(3) A fee for the landlord’s or billing agent’s costs in accordance
26with paragraph (3) of subdivision (a) of Section 1954.205.

27(4) Any late fee, with the amounts and times assessed, in
28compliance with Section 1954.213.

29(f) A statement that the tenant shall notify the landlord in writing
30of any leaks, drips, or other problems with the water system,
31including problems with water saving devices, and that the landlord
32is required to investigate, and, if necessary, repair these problems.

33(g) A statement that the landlord shall provide any of the
34following information if asked by the tenant:

35(1) The location of the submeter.

36(2) The calculations used to determine a monthly bill.

37(3) The date the submeter was last certified for use, and the
38date it is next scheduled for certification.

39(h) A statement that if the tenant believes that the submeter
40reading is inaccurate or the submeter is malfunctioning, the tenant
P7    1shall first notify the landlord in writing and request an
2investigation. A tenant shall be provided with notice that if an
3alleged submeter malfunction is not resolved by the landlord, a
4tenant may contact the local county sealer and request that the
5submeter be tested. Contact information for the county sealer shall
6be included in the disclosure to the tenant.

7(i) A statement that this disclosure is only a general overview
8of the laws regarding submeters and that the laws can be found
9at Chapter 2.5 (commencing with Section 1954.201) of Title 5 of
10Part 4 of Division 3 of the Civil Code, available online or at most
11libraries.

end insert
begin insert
12

begin insert1954.205.end insert  

(a) As part of the regular bill for water service, a
13landlord shall only bill a tenant for the following water service:

14(1) Volumetric charge for water at a rate calculated by dividing
15the total charges for volumetric water use at the entire property
16by the total volume of volumetric water used at the property
17multiplied by the tenants measured usage at the property.

18(2) Any recurring fixed charge for water service billed to the
19property by the purveyors that, at the landlord’s discretion, shall
20be calculated by either of the following:

21(A) The tenant’s proportion of the total fixed charges charged
22to the property. The tenant’s proportion shall be based on the
23percentage of the tenant’s volumetric water use in relation to the
24total volumetric water use of the entire property, as shown on the
25property’s water bill during that period.

26(B) Dividing the total fixed charges charged to the property
27equally among the total number of residential units and
28nonresidential units at the property.

29(3) A billing, administrative, or other fee for the landlord’s and
30billing agent’s costs, which shall be the lesser of an amount not
31to exceed four dollars and seventy-five cents ($4.75), as adjusted
32pursuant to this paragraph or 25 percent of the amount billed
33pursuant to paragraph (1). Beginning January 1, 2018, the
34maximum fee authorized by this paragraph may be adjusted each
35calendar year by the landlord, no higher than a commensurate
36increase in the California fiscal year average for the previous
37 fiscal year, for all urban consumers, as determined by the
38Department of Finance.

39(4) A late charge as assessed pursuant to Section 1954.213.

P8    1(b) If a submeter reading for the beginning or end of a billing
2period is, in good faith, not available, the landlord shall bill the
3tenant according to Section 1954.212.

4(c) This section does not prohibit a landlord or the landlord's
5billing agent from including any other lawful charges on the same
6bill.

end insert
begin insert
7

begin insert1954.206.end insert  

(a) Submeters shall be read within three days of
8the same point in each billing cycle.

9(b) Payments shall be due at the same point in each billing
10cycle. A tenant may agree in writing to receive a bill electronically.
11A tenant may rescind authorization for electronic delivery of bills
12at any time. A tenant shall not be required to pay a bill
13electronically.

14(c) A bill shall include and separately set forth the following
15information:

16(1) The submeter reading for the beginning date and ending
17date of the billing cycle, the dates read, and the indicated
18consumption as determined by subtracting the amount of the
19 beginning date submeter reading from the amount of the ending
20date submeter reading. If the unit of measure is in something other
21than gallons, the indicated consumption shall be expressed in
22gallons.

23(2) The amounts charged pursuant to subdivision (a) of Section
241954.205.

25(3) The rate or rates charged for the volumetric charge per unit
26of measure.

27(4) The amount, if any, due from the previous month's bill.

28(5) The amount, if any, due from bills prior to the previous
29month's bill.

30(6) The late fee, if any, imposed on amounts specified in
31paragraph (4) or (5).

32(7) The total amount due for the billing period.

33(8) The due date for the payment.

34(9) If a late fee is charged by the landlord, a statement of when
35the late fees would apply.

36(10) The procedure to contact the landlord or billing agent with
37questions or concerns regarding the bill. Upon request of the
38tenant, the landlord or billing agent shall respond in writing to
39any questions or disputes from the tenant. If a billing agent is used,
40the name of the billing agent shall be disclosed. The tenant shall
P9    1be provided a mailing address, email address, telephone number,
2which shall be either a toll-free or a local number, and the time
3of regular telephone hours for contact regarding billing inquiries.

4(11) A statement that the landlord or billing agent is not the
5water purveyor that includes the name of the local water purveyor
6providing the water service to the master meter.

7(d) Notwithstanding paragraphs (4) and (5) of subdivision (c),
8a separate bill may be provided for past due amounts if past due
9amounts are not included on the current month’s bill.

end insert
begin insert
10

begin insert1954.207.end insert  

(a) At the beginning of a tenancy, a submeter shall
11be read after the tenant takes possession. If the regular reading
12occurs less than five days prior to the tenant taking possession,
13that reading may be substituted to establish usage. If the submeter
14is manually read, the first bill may be estimated based on the rate
15established in subdivision (b) of Section 1954.212.

16(b) For a water-service bill at the end of a tenancy, the submeter
17shall be read within five days, if possible. If the submeter cannot
18be read within five days at the end of a tenancy, the bill amount
19for the final month shall be based on the bill amount for the
20previous month.

21(c) The landlord may deduct an unpaid water service bill from
22the security deposit upon the ending of a tenancy, if the last water
23service bill showing the amount due is attached to the
24documentation required by Section 1950.5.

end insert
begin insert
25

begin insert1954.208.end insert  

Unless it can be documented that a penalty is solely
26the result of a tenant’s failure to comply with state or local water
27use regulations or restrictions, or both, regarding wasting of water,
28a landlord shall not charge, recover, or allow to be charged or
29recovered, fees incurred by the landlord from the purveyors, billing
30agent, or any other person for any deposit, disconnection,
31reconnection, late payment by the landlord, or any other penalty
32assessed against the landlord. This section shall not prevent a
33landlord from charging a tenant for the tenant’s late payment of
34any bill.

end insert
begin insert
35

begin insert1954.209.end insert  

The landlord shall maintain and make available in
36writing, at the tenant’s written or electronic request, within seven
37days after the request, the following:

38(a) The date the submeter was last inspected, tested, and
39verified, and the date by which it shall be reinspected, tested, and
P10   1verified under law, if available. If this information is not available,
2the landlord shall disclose that the information is not available.

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

4(1) The most recent water bill for the property’s master water
5meter showing the recurring fixed charge for water service billed
6to the property by the water purveyor, and the usage charges for
7the property, including any tiered amounts.

8(2) Any other bills for water service, as defined in subdivision
9(h) of Section 1954.202, for the property.

10(3) The number of units in the property.

11(4) If not shown on the bill for the property, the per unit charges
12for volumetric water usage, including any tiered amounts.

13(5) The formula used to calculate the charge for the tenant’s
14volumetric water usage.

15(c) The location of the submeter.

end insert
begin insert
16

begin insert1954.210.end insert  

(a) If a tenant notifies the landlord in writing of, or
17the landlord otherwise becomes aware of, a leak, a drip, a running
18toilet, or other submeter problem, or a submeter reading indicates
19constant or abnormal high water usage, the landlord shall have
20the condition investigated, and, if warranted, rectify the condition.

21(b) A tenant shall not remove any water fixtures or water
22conservation devices that have been installed by the landlord.

23(c) If the condition is rectified more than 14 days after the tenant
24notifies the landlord in writing pursuant to subdivision (a), the
25tenant's volumetric usage for any month or months that include
26the period between 14 days after the initial investigation and the
27repair shall be deemed to be fifteen dollars ($15) or actual usage,
28whichever is less. At the landlord’s option, if submeter readings
29are available to determine the usage at a point prior to
30investigation and a point following repair, usage shall be deemed
31to be fifty cents ($0.50) per day for those days between the two
32submeter readings or actual usage, whichever is less.

33(d) If the condition remains unrectified for six months after
34investigation, no further volumetric usage charges may be imposed
35until the condition is repaired.

end insert
begin insert
36

begin insert1954.211.end insert  

In addition to the grounds for entry specified in
37subdivision (a) of Section 1954, the landlord may enter a unit as
38follows:

39(a) For the purpose of installing, repairing, testing, and
40maintaining a submeter, or for the purpose of repairing or testing
P11   1any water fixture suspected by the landlord or reported by the
2tenant to be in need of repair, if the requirements of Section 1954
3are met.

4(b) To read a submeter, if the requirements of this chapter and
5Section 1954 are met. Notwithstanding paragraph (3) of
6subdivision (d) of Section 1954, notice shall be given only in
7writing.

end insert
begin insert
8

begin insert1954.212.end insert  

(a) If a monthly submeter reading necessary to
9measure volumetric is unavailable, the tenant may be charged 75
10percent of the average amount billed for volumetric usage for the
11last three months for which complete billing information is
12available. The adjustment shall be disclosed on the bill.

13(b) If no complete billing information is available for the prior
14three months, the volumetric usage charge shall be deemed to be
15fifty cents ($0.50) per day that the data is not available.

16(c) If monthly submeter readings remain unavailable for more
17than six months, the volumetric usage charge shall be deemed to
18be zero for any subsequent month that the data is not available.

end insert
begin insert
19

begin insert1954.213.end insert  

(a) A tenant may be charged a late fee for any water
20service bill not paid 25 days after mailing or other transmittal of
21the bill. If the 25th day falls on a Saturday, Sunday, or holiday,
22the late fee shall not be imposed until the day after the first business
23day following the 25th day.

24(b) A late fee of up to seven dollars ($7) may be imposed if any
25amount of a bill remains unpaid after the time described in
26subdivision (a). A late fee of up to ten dollars ($10) may be imposed
27in each subsequent bill if any amount remains unpaid. If any partial
28payments are made, they shall be credited against the bill that has
29been outstanding the longest.

30(c) In addition to the purposes specified in subdivision (b) of
31Section 1950.5, if a water service bill remains unpaid after the
32time described in subdivision (a) expires, the landlord may also
33claim the amount of the unpaid bill from the security deposit.

34(d) If a water service bill remains unpaid for 30 days after the
35time described in subdivision (a) expires, the nonpayment shall
36constitute a curable material breach of the lease. The landlord
37shall have the right to terminate the tenancy in accordance with
38paragraph (3) of Section 1161 of the Code of Civil Procedure with
39the service of a three-day notice to cure covenant or quit upon the
40tenant.

P12   1(e) Water service charges under this chapter shall not constitute
2rent.

3(f) The water service to a dwelling unit shall not be shut off or
4otherwise interfered with by the landlord for any reason, including
5nonpayment of a bill. Notwithstanding the foregoing, a landlord
6or its agent may shut off water service to a dwelling unit or the
7property, in order to make repairs, replacements of equipment, or
8perform other maintenance at the property.

end insert
begin insert
9

begin insert1954.214.end insert  

This chapter does not preclude or preempt an
10ordinance or regulation adopted prior to January 1, 2013, that
11regulates the approval of submeter types or the installation,
12maintenance, reading, billing, or testing of submeters and
13associated onsite plumbing.

end insert
begin insert
14

begin insert1954.215.end insert  

The rights or obligations established under this
15chapter shall not be waived. Any purported waiver is void.

end insert
begin insert
16

begin insert1954.216.end insert  

(a) This chapter applies to the following:

17(1) All dwelling units offered for rent or rented in a building
18where submeters were required to be installed pursuant to a
19building standard adopted in accordance with Section 17922.14
20of the Health and Safety Code.

21(2) All dwelling units where submeters are used to charge a
22tenant separately for water service.

23(b) Nothing in this chapter shall be construed to apply to any
24dwelling units other than those described in subdivision (a).

end insert
begin insert
25

begin insert1954.217.end insert  

This chapter shall become operative on January 1,
262017.

end insert
begin insert
27

begin insert1954.218.end insert  

Any property that is required to install individual
28submeters pursuant to Article 5 (commencing with Section 537)
29of Chapter 8 of Division 1 of the Water Code shall at all times be
30required to bill residents for water service pursuant to this chapter.

end insert
31

SEC. 2.  

Section 17922.14 is added to the Health and Safety
32Code
, to read:

33

17922.14.  

(a) During the next regularly scheduledbegin delete triennialend delete
34begin insert interveningend insert code cycle that commences on or after January 1, 2016,
35or during a subsequent code adoption cycle, the department may
36develop and propose for adoption by the California Building
37Standards Commission, pursuant to Chapter 4 (commencing with
38Section 18935) of Part 2.5, building standards requiring the
39installation of waterbegin insert meters or end insert submeters in multiunit residential
40structures, as those terms are defined in Section 517 of the Water
P13   1Code.begin insert These standards shall conform to Article 5 (commencing
2with Section 537) of Chapter 8 of Division 1 of the Water Code.end insert

3(b) (1) The department shall determine whether and under what
4circumstances the installation of waterbegin insert meters orend insert submeters is
5infeasible and include in the building standards proposed in
6subdivision (a) the appropriate provision for exemption from this
7requirement. The department may consider whether there are any
8issues specific to high-rise multifamily buildings that would require
9an exemption from the requirement for the installation of water
10begin insert meters orend insert submeters.

11(2) The following categories of structures shall be exempt from
12the building standards established pursuant to subdivision (a):

13(A) Long-term health care facilities, as defined in Sectionbegin delete 1418
14of the Health and Safety Code.end delete
begin insert 1418.end insert

15(B) Low-income housing. For the purposes of this subparagraph,
16“low-income housing” means a residential building that is financed
17with low-income housing tax credits, tax-exempt mortgage revenue
18bonds, general obligation bonds, or federal, state, or local loans
19 or grants, for which rents charged to lower income households, do
20not exceed rents prescribed by deed restrictions or regulatory
21agreements pursuant to the terms of the financing or financial
22assistance, and for which not less than 90 percent of the dwelling
23units within the building are designated for occupancy by lower
24income households. As used in this subparagraph, “lower income
25households” has the same meaning as defined in Sectionbegin delete 50079.5
26of the Health and Safety Code.end delete
begin insert 50079.5.end insert

27(C) Residential care facilities for the elderly, as defined in
28subdivision (k) of Sectionbegin delete 1569.2 of the Health and Safety Code.end delete
29begin insert 1569.2.end insert

30(D) Student dormitories.

31(E) Time-share property, as defined in subdivision (aa) of
32Section 11212 of the Business and Professions Code.

33(c) Moneys in the Building Standards Administration Special
34Revolving Fund established pursuant to Section 18931.7 shall be
35available, upon appropriation by the Legislature, for the
36department’s administrative costs associated with the development
37of building standards in accordance with this section.

38

SEC. 3.  

Section 517 is added to the Water Code, to read:

39

517.  

“Submeter” means a device that measures water
40consumption of an individual rental unit within a multiunit
P14   1residential structure or mixed-use residential and commercial
2structure, and that is owned and operated by the owner of the
3structure or the owner’s agent. As used in this section, “multiunit
4residential structure” and “mixed-use residential and commercial
5structure” mean real property containing two or more dwelling
6units.

7begin insert

begin insertSEC. 4.end insert  

end insert

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

begin insert

9 

10Article begin insert5.end insert  Multiunit Structures
11

 

12

begin insert537.end insert  

(a) The structures in all of the following categories shall
13be exempt from this article:

14(1) Low-income housing. For purposes of this paragraph,
15“low-income housing” means a residential building financed with
16low-income housing tax credits, tax-exempt mortgage revenue
17bonds, general obligation bonds, or local, state, or federal loans
18or grants, for which the rents of the occupants in lower income
19households, as defined in Section 50079.5 of the Health and Safety
20Code, do not exceed rents prescribed by deed restrictions or
21regulatory agreements pursuant to the terms of the financing or
22financial assistance, and for which not less than 90 percent of the
23dwelling units within the building are designated for occupancy
24by lower income households, as defined in Section 50079.5 of the
25Health and Safety Code.

26(2) Student dormitories.

27(3) Long-term health care facilities, as defined in Section 1418
28of the Health and Safety Code.

29(4) Time-share property, as defined in subdivision (aa) of
30Section 11212 of the Business and Professions Code.

31(5) Residential care facilities for the elderly, as defined in
32Section 1569.2 of the Health and Safety Code.

33(b) A submeter used to measure water supplied to an individual
34residential unit that is required pursuant to this chapter shall be
35of a type approved pursuant to Section 12500.5 of the Business
36and Professions Code, and shall be installed and operated in
37compliance with regulations established pursuant to Section 12107
38of the Business and Professions Code.

39

begin insert537.1.end insert  

(a) Each water purveyor that sells, leases, rents,
40furnishes, or delivers water service to a newly constructed multiunit
P15   1residential structure or newly constructed mixed-use residential
2and commercial structure for which an application for a water
3connection, or more than one connection, is submitted after
4January 1, 2017, shall require a measurement of the quantity of
5water supplied to each individual dwelling unit as a condition of
6new water service. The measurement may be by individual water
7meters or submeters.

8(b) (1) The owner of the structure shall ensure that each
9submeter installed complies with all laws and regulations
10governing the approval of submeter types or the installation,
11maintenance, reading, billing, and testing of submeters, including,
12but not limited to, the California Plumbing Code.

13(2) This subdivision does not require a water purveyor to fund
14or assume responsibility for ensuring compliance with any law or
15regulation governing the approval of submeter types or the
16installation, maintenance, reading, billing, and testing of submeters
17and associated onsite plumbing.

18(c) A water purveyor shall not impose an additional capacity
19or connection fee or charge for a submeter that is installed by the
20owner, or his or her agent.

21(d) This section shall remain operative until the date on which
22the California Building Standards Commission includes standards
23in the California Building Standards Code that conform to this
24article.

25

begin insert537.2.end insert  

(a) This article does not preclude or preempt an
26ordinance or regulation that regulates the approval of submeter
27types or the installation, maintenance, reading, billing, or testing
28of submeters and associated onsite plumbing if the ordinance was
29adopted prior to January 1, 2013.

30(b) This article does not restrict the authority of a water
31purveyor, city, county, city and county, or other local agency to
32adopt and implement a program to promote water conservation
33that includes the installation of water meters and submeters, as
34required pursuant to subdivision (a) of Section 537.1, if the
35program is at least as stringent as the requirements of this article.

36

begin insert537.3.end insert  

It is the intent of the Legislature that this article should
37not be construed to impose costs on any local government agency,
38except to the extent that the local government agency is a water
39purveyor.

P16   1

begin insert537.4.end insert  

This article shall become operative on January 1, 2017.

end insert


O

    97