Amended in Assembly August 31, 2015

Amended in Assembly July 16, 2015

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 517 to, and to add Article 5 (commencing with Section 537) to Chapter 8 of Division 1 of, 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.

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.

(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 water meters or 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 water meters or 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.

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 further require installationbegin delete and maintenanceend delete of submeters to be provided bybegin insert contractorsend insert licensedbegin delete plumbing contractorsend deletebegin insert by the California Contractors State License Boardend insert using workers who meet specified training requirements. 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.

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:

 

P4    1Chapter  2.5. Water Service
2

 

3

1954.201.  

It is the intent of the Legislature in enacting this
4chapter to do both of the following:

5(a) To encourage the conservation of water in multifamily
6residential rental buildings through means either within the
7landlord’s or the tenant’s control.

8(b) To ensure that the practices involving the submetering of
9dwelling units for water service are just and reasonable, and include
10appropriate safeguards for both tenants and landlords.

11

1954.202.  

For the purposes of this chapter:

12(a) “Billing agent” means a person or entity who contracts to
13provide submetering services to a landlord, including billing.

14(b) “Landlord” means an owner of residential rental property.
15“Landlord” does not include a tenant who rents all or a portion of
16a dwelling unit to subtenants. “Landlord” does not include a
17common interest development, as defined in Section 4100 of the
18Civil Code.

19(c) “Property” means real property containing two or more
20dwelling units that is served by a single master meter.

21(d) “Purveyor” means any local purveyor who bills the landlord
22for charges related to water treatment, distribution, or usage,
23including, but not limited to,begin delete waterend deletebegin insert water,end insert sewer, stormwater, flood
24begin delete controlend deletebegin insert control,end insert and water treatment charges.

25 25(e) “Rental agreement” includes a fixed-term lease.

26 26(f) “Renting” includes leasing, whether on a periodic or
27fixed-term basis.

28 28(g) “Submeter” means a device that measures water consumption
29of an individual rental unit within a multiunit residential structure
30or mixed-use residential and commercial structure, and that is
31owned and operated by the owner of the structure or the owner’s
32agent. As used in this section, “multiunit residential structure” and
33“mixed-use residential and commercial structure” mean real
34property containing two or more dwelling units.

35 35(h) “Water service” includes any charges, whether presented
36for payment on local purveyor bills, tax bills, or bills from other
37entities, related to water treatment, distribution, or usage, including,
38but not limited to, water, sewer, stormwater, flood control, and
39water treatment charges.

P5   1 P5    1(i) “Water purveyor” means a water purveyor as defined in
2Section 512 of the Water Code.

3

1954.203.  

(a) All properties that use submeters to separately
4bill tenants for water service shall ensure:

5(1) The submeter is inspected, tested, and verified for
6commercial purposes pursuant to law, including, but not limited
7to, Section 12500.5 of the Business and Professions Code.

8(2) The installation conforms to all laws, including, but not
9limited to, regulations established pursuant to Section 12107 of
10the Business and Professions Code.

11(3) The submeter for a dwelling unit measures only water that
12is supplied for the exclusive use of the particular dwelling unit,
13and only to an area within the exclusive possession and control of
14the tenant of the dwelling unit.

15(4) The submeter is capable of being accessed and read by the
16tenant of the dwelling unit and read by the landlord without
17entering the dwelling unit. A submeter installed before January 1,
182017, may be read by the landlord after entry into the unit, in
19accordance with this chapter and Section 1954.

20(5) Each submeter is reinspected and recalibrated within the
21time limits specified in law or regulation.

22(6) All plumbing fixtures and fittings within each dwelling unit
23conform to all laws regarding water conservation.

24(b) This section does not require a water purveyor to assume
25responsibility for ensuring compliance with any law or regulation
26governing installation, certification, maintenance, and testing of
27 submeters and associated onsite plumbing.

28

1954.204.  

Before executing a rental agreement, a landlord who
29intends to charge a tenant separately from rent for water service
30in a property with submeters shall clearly disclose the following
31information to the tenant, in writing, in at least l0-point type, which
32may be incorporated into the rental agreement:

33(a) That the tenant will be billed for water service separately
34from the rent.

35(b) An estimate of the monthly bill for water service for units
36at the property based on either of the following:

37(1) The average or median bill for water service for comparative
38units at the property over any three of the past six months.

39(2) The amount of the bill based upon average indoor water use
40of a family of four of approximately 200 gallons per day, and
P6    1including all other monthly charges that will be assessed. Estimates
2for other gallons per day may also be included. The estimate shall
3include a statement that the average family of four uses about 200
4gallons of water each day.

5(c) The due dates and payment procedures for bills for water
6service.

7(d) An email address and a toll-free telephone number or a local
8telephone number for the tenant to contact with questions regarding
9the water service billing and the days and hours for regular
10telephone service at either number.

11(e) That the monthly bill for water service may only include the
12following charges:

13(1) Payment due for the amount of usage as measured by the
14submeter, charged at the same rate for commodity usage by the
15purveyors.

16(2) Payment of a portion of the fixed fee charged by the
17purveyors for water service.

18(3) A fee for the landlord’s or billing agent’s costs in accordance
19with paragraph (3) of subdivision (a) of Section 1954.205.

20(4) Any late fee, with the amounts and times assessed, in
21compliance with Section 1954.213.

22(f) A statement that the tenant shall notify the landlord in writing
23of any leaks, drips, or other problems with the water system,
24including problems withbegin delete water savingend deletebegin insert water-savingend insert devices, and
25that the landlord is required to investigate, and, if necessary, repair
26these problems.

27(g) A statement that the landlord shall provide any of the
28following information if asked by the tenant:

29(1) The location of the submeter.

30(2) The calculations used to determine a monthly bill.

31(3) The date the submeter was last certified for use, and the date
32it is next scheduled for certification.

33(h) A statement that if the tenant believes that the submeter
34reading is inaccurate or the submeter is malfunctioning, the tenant
35 shall first notify the landlord in writing and request an
36investigation. A tenant shall be provided with notice that if an
37alleged submeter malfunction is not resolved by the landlord, a
38tenant may contact the local county sealer and request that the
39submeter be tested. Contact information for the county sealer shall
40be included in the disclosure to the tenant.

P7    1(i) A statement that this disclosure is only a general overview
2of the laws regarding submeters and that the laws can be found at
3Chapter 2.5 (commencing with Section 1954.201) of Title 5 of
4Part 4 of Division 3 of the Civil Code, available online or at most
5libraries.

6

1954.205.  

(a) As part of the regular bill for water service, a
7landlord shall only bill a tenant for the following water service:

8(1) Volumetric charge for water at a rate calculated by dividing
9the total charges for volumetric water use at the entire property by
10the total volume of volumetric water used at the property multiplied
11by the tenants measured usage at the property.

12(2) Any recurring fixed charge for water service billed to the
13property by the purveyors that, at the landlord’s discretion, shall
14be calculated by either of the following:

15(A) The tenant’s proportion of the total fixed charges charged
16to the property. The tenant’s proportion shall be based on the
17percentage of the tenant’s volumetric water use in relation to the
18total volumetric water use of the entire property, as shown on the
19property’s water bill during that period.

20(B) Dividing the total fixed charges charged to the property
21equally among the total number of residential units and
22nonresidential units at the property.

23(3) A billing, administrative, or other fee for the landlord’s and
24billing agent’s costs, which shall be the lesser of an amount not to
25exceed four dollars and seventy-five cents ($4.75), as adjusted
26pursuant to this paragraph or 25 percent of the amount billed
27pursuant to paragraph (1). Beginning January 1, 2018, the
28maximum fee authorized by this paragraph may be adjusted each
29calendar year by the landlord, no higher than a commensurate
30increase in the Consumer Price Index based on a California fiscal
31year average for the previous fiscal year, for all urban consumers,
32as determined by the Department of Finance.

33(4) A late charge as assessed pursuant to Section 1954.213.

34(b) If a submeter reading for the beginning or end of a billing
35period is, in good faith, not available, the landlord shall bill the
36tenant according to Section 1954.212.

37(c) This section does not prohibit a landlord or the landlord’s
38billing agent from including any other lawful charges on the same
39bill.

P8    1

1954.206.  

(a) Submeters shall be read within three days of the
2same point in each billing cycle.

3(b) Payments shall be due at the same point in each billing cycle.
4A tenant may agree in writing to receive a bill electronically. A
5tenant may rescind authorization for electronic delivery of bills at
6any time. A tenant shall not be required to pay a bill electronically.

7(c) A bill shall include and separately set forth the following
8information:

9(1) The submeter reading for the beginning date and ending
10date of the billing cycle, the dates read, and the indicated
11consumption as determined by subtracting the amount of the
12 beginning date submeter reading from the amount of the ending
13date submeter reading. If the unit of measure is in something other
14than gallons, the indicated consumption shall be expressed in
15gallons.

16(2) The amounts charged pursuant to subdivision (a) of Section
171954.205.

18(3) The rate or rates charged for the volumetric charge per unit
19of measure.

20(4) The amount, if any, due from the previous month’s bill.

21(5) The amount, if any, due from bills prior to the previous
22month’s bill.

23(6) The late fee, if any, imposed on amounts specified in
24paragraph (4) or (5).

25(7) The total amount due for the billing period.

26(8) The due date for the payment.

27(9) If a late fee is charged by the landlord, a statement of when
28the late fees would apply.

29(10) The procedure to contact the landlord or billing agent with
30questions or concerns regarding the bill. Upon request of the tenant,
31the landlord or billing agent shall respond in writing to any
32questions or disputes from the tenant. If a billing agent is used, the
33name of the billing agent shall be disclosed. The tenant shall be
34provided a mailing address, email address, telephone number,
35which shall be either a toll-free or a local number, and the time of
36regular telephone hours for contact regarding billing inquiries.

37(11) A statement that the landlord or billing agent is not the
38water purveyor that includes the name of the local water purveyor
39providing the water service to the master meter.

P9    1(d) Notwithstanding paragraphs (4) and (5) of subdivision (c),
2a separate bill may be provided for past due amounts if past due
3amounts are not included on the current month’s bill.

4

1954.207.  

(a) At the beginning of a tenancy, a submeter shall
5be read after the tenant takes possession. If the regular reading
6occurs less than five days prior to the tenant taking possession,
7that reading may be substituted to establish usage. If the submeter
8is manually read, the first bill may be estimated based on the rate
9established in subdivision (b) of Section 1954.212.

10(b) For a water-service bill at the end of a tenancy, the submeter
11shall be read within five days, if possible. If the submeter cannot
12be read within five days at the end of a tenancy, the bill amount
13for the final month shall be based on the bill amount for the
14previous month.

15(c) The landlord may deduct an unpaid water service bill from
16the security deposit upon the ending of a tenancy, if the last water
17service bill showing the amount due is attached to the
18documentation required by Section 1950.5.

19

1954.208.  

Unless it can be documented that a penalty is solely
20the result of a tenant’s failure to comply with state or local water
21use regulations or restrictions, or both, regarding wasting of water,
22a landlord shall not charge, recover, or allow to be charged or
23recovered, fees incurred by the landlord from the purveyors, billing
24agent, or any other person for any deposit, disconnection,
25reconnection, late payment by the landlord, or any other penalty
26assessed against the landlord. This section shall not prevent a
27landlord from charging a tenant for the tenant’s late payment of
28any bill.

29

1954.209.  

The landlord shall maintain and make available in
30writing, at the tenant’s written or electronic request, within seven
31days after the request, the following:

32(a) The date the submeter was last inspected, tested, and verified,
33and the date by which it shall be reinspected, tested, and verified
34under law, if available. If this information is not available, the
35landlord shall disclose that the information is not available.

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

37(1) The most recent water bill for the property’s master water
38meter showing the recurring fixed charge for water service billed
39to the property by the water purveyor, and the usage charges for
40the property, including any tiered amounts.

P10   1(2) Any other bills for water service, as defined in subdivision
2(h) of Section 1954.202, for the property.

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

4(4) If not shown on the bill for the property, the per unit charges
5for volumetric water usage, including any tiered amounts.

6(5) The formula used to calculate the charge for the tenant’s
7volumetric water usage.

8(c) The location of the submeter.

9

1954.210.  

(a) If a tenant notifies the landlord in writing of, or
10the landlord otherwise becomes aware of, a leak, a drip, a running
11toilet, or other submeter problem, or a submeter reading indicates
12constant or abnormal high water usage, the landlord shall have the
13condition investigated, and, if warranted, rectify the condition.

14(b) A tenant shall not remove any water fixtures or water
15conservation devices that have been installed by the landlord.

16(c) If the condition is rectified more than 14 days after the tenant
17notifies the landlord in writing pursuant to subdivision (a), the
18tenant’s volumetric usage for any month or months that include
19the period between 14 days after the initial investigation and the
20repair shall be deemed to be fifteen dollars ($15) or actual usage,
21whichever is less. At the landlord’s option, if submeter readings
22are available to determine the usage at a point prior to investigation
23and a point following repair, usage shall be deemed to be fifty
24cents ($0.50) per day for those days between the two submeter
25readings or actual usage, whichever is less.

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

29

1954.211.  

In addition to the grounds for entry specified in
30subdivision (a) of Section 1954, the landlord may enter a unit as
31follows:

32(a) For the purpose of installing, repairing, testing, and
33maintaining a submeter, or for the purpose of repairing or testing
34any water fixture suspected by the landlord or reported by the
35tenant to be in need of repair, if the requirements of Section 1954
36are met.

37(b) To read a submeter, if the requirements of this chapter and
38Section 1954 are met. Notwithstanding paragraph (3) of subdivision
39(d) of Section 1954, notice shall be given only in writing.

P11   1

1954.212.  

(a) If a monthly submeter reading necessary to
2measure volumetricbegin insert usageend insert is unavailable, the tenant may be charged
375 percent of the average amount billed for volumetric usage for
4the last three months for which complete billing information is
5available. The adjustment shall be disclosed on the bill.

6(b) If no complete billing information is available for the prior
7three months, the volumetric usage charge shall be deemed to be
8fifty cents ($0.50) per day that the data is not available.

9(c) If monthly submeter readings remain unavailable for more
10than six months, the volumetric usage charge shall be deemed to
11be zero for any subsequent month that the data is not available.

12

1954.213.  

(a) A tenant may be charged a late fee for any water
13service bill not paid 25 days after mailing or other transmittal of
14the bill. If the 25th day falls on a Saturday, Sunday, or holiday,
15the late fee shall not be imposed until the day after the first business
16day following the 25th day.

17(b) A late fee of up to seven dollars ($7) may be imposed if any
18amount of a bill remains unpaid after the time described in
19subdivision (a). A late fee of up to ten dollars ($10) may be
20imposed in each subsequent bill if any amount remains unpaid. If
21any partial payments are made, they shall be credited against the
22bill that has been outstanding the longest.

23(c) In addition to the purposes specified in subdivision (b) of
24Section 1950.5, if a water service bill remains unpaid after the
25time described in subdivision (a) expires, the landlord may also
26claim the amount of the unpaid bill from the security deposit.

27(d) If a water service bill remains unpaid for 30 days after the
28time described in subdivision (a) expires, the nonpayment shall
29constitute a curable material breach of the lease. The landlord shall
30have the right to terminate the tenancy in accordance with
31paragraph (3) of Section 1161 of the Code of Civil Procedure with
32the service of a three-day notice to cure covenant or quit upon the
33tenant.

34 34(e) Water service charges under this chapter shall not constitute
35rent.

36 36(f) The water service to a dwelling unit shall not be shut off or
37otherwise interfered with by the landlord for any reason, including
38nonpayment of a bill. Notwithstanding the foregoing, a landlord
39or its agent may shut off water service to a dwelling unit or the
P12   1property, in order to make repairs, replacements of equipment, or
2perform other maintenance at the property.

3

1954.214.  

This chapter does not preclude or preempt an
4ordinance or regulation adopted prior to January 1, 2013, that
5regulates the approval of submeter types or the installation,
6maintenance, reading, billing, or testing of submeters and
7associated onsite plumbing.

8

1954.215.  

The rights or obligations established under this
9chapter shall not be waived. Any purported waiver is void.

10

1954.216.  

(a) This chapter applies to the following:

11(1) All dwelling units offered for rent or rented in a building
12where submeters were required to be installed pursuant to a
13building standard adopted in accordance with Section 17922.14
14of the Health and Safety Code.

15(2) All dwelling units where submeters are used to charge a
16tenant separately for water service.

17(b) Nothing in this chapter shall be construed to apply to any
18dwelling units other than those described in subdivision (a).

19

1954.217.  

This chapter shall become operative on January 1,
202017.

21

1954.218.  

Any property that is required to install individual
22submeters pursuant to Article 5 (commencing with Section 537)
23of Chapter 8 of Division 1 of the Water Code shall at all times be
24required to bill residents for water service pursuant to this chapter.

25

SEC. 2.  

Section 17922.14 is added to the Health and Safety
26Code
, to read:

27

17922.14.  

(a) During the next regularly scheduled intervening
28code cycle that commences on or after January 1, 2016, or during
29a subsequent code adoption cycle, the department may develop
30and propose for adoption by the California Building Standards
31Commission, pursuant to Chapter 4 (commencing with Section
3218935) of Part 2.5, building standards requiring the installation of
33water meters or submeters in multiunit residential structures, as
34those terms are defined in Section 517 of the Water Code. These
35standards shall conform to Article 5 (commencing with Section
36537) of Chapter 8 of Division 1 of the Water Code.

37(b) (1) The department shall determine whether and under what
38circumstances the installation of water meters or submeters is
39infeasible and include in the building standards proposed in
40subdivision (a) the appropriate provision for exemption from this
P13   1requirement. The department may consider whether there are any
2issues specific to high-rise multifamily buildings that would require
3an exemption from the requirement for the installation of water
4meters or submeters.

5(2) The following categories of structures shall be exempt from
6the building standards established pursuant to subdivision (a):

7(A) Long-term health care facilities, as defined in Section 1418.

8(B) Low-income housing. For the purposes of this subparagraph,
9“low-income housing” means a residential building that is financed
10with low-income housing tax credits, tax-exempt mortgage revenue
11bonds, general obligation bonds, or federal, state, or local loans
12or grants, for which rents charged to lower incomebegin delete households,end delete
13begin insert householdsend insert do not exceed rents prescribed by deed restrictions or
14regulatory agreements pursuant to the terms of the financing or
15financial assistance, and for which not less than 90 percent of the
16dwelling units within the building are designated for occupancy
17by lower income households. As used in this subparagraph, “lower
18income households” has the same meaning as defined in Section
1950079.5.

20(C) Residential care facilities for the elderly, as defined in
21subdivision (k) of Section 1569.2.

22(D) Student dormitories.

23(E) Time-share property, as defined in subdivision (aa) of
24Section 11212 of the Business and Professions Code.

25(c) Moneys in the Building Standards Administration Special
26Revolving Fund established pursuant to Section 18931.7 shall be
27available, upon appropriation by the Legislature, for the
28department’s administrative costs associated with the development
29of building standards in accordance with this section.

30

SEC. 3.  

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

31

517.  

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

39

SEC. 4.  

Article 5 (commencing with Section 537) is added to
40Chapter 8 of Division 1 of the Water Code, to read:

 

P14   1Article 5.  Multiunit Structures
2

 

3

537.  

(a) The structures in all of the following categories shall
4be exempt from this article:

5(1) Low-income housing. For purposes of this paragraph,
6“low-income housing” means a residential building financed with
7low-income housing tax credits, tax-exempt mortgage revenue
8bonds, general obligation bonds, or local, state, or federal loans
9or grants, for which the rents of the occupants in lower income
10households, as defined in Section 50079.5 of the Health and Safety
11Code, do not exceed rents prescribed by deed restrictions or
12regulatory agreements pursuant to the terms of the financing or
13financial assistance, and for which not less than 90 percent of the
14dwelling units within the building are designated for occupancy
15by lower income households, as defined in Section 50079.5 of the
16Health and Safety Code.

17(2) Student dormitories.

18(3) Long-term health care facilities, as defined in Section 1418
19of the Health and Safety Code.

20(4) Time-share property, as defined in subdivision (aa) of
21Section 11212 of the Business and Professions Code.

22(5) Residential care facilities for the elderly, as defined in
23Section 1569.2 of the Health and Safety Code.

24(b) A submeter used to measure water supplied to an individual
25residential unit that is required pursuant to this chapter shall be of
26a type approved pursuant to Section 12500.5 of the Business and
27Professions Code, and shall be installed and operated in compliance
28with regulations established pursuant to Section 12107 of the
29Business and Professions Code.

30

537.1.  

(a) Each water purveyor that sells, leases, rents,
31furnishes, or delivers water service to a newly constructed multiunit
32residential structure or newly constructed mixed-use residential
33and commercial structure for which an application for a water
34connection, or more than one connection, is submitted after January
351, 2017, shall require a measurement of the quantity of water
36supplied to each individual dwelling unit as a condition of new
37water service. The measurement may be by individual water meters
38or submeters.

39(b) (1) The owner of the structure shall ensure that each
40submeter installed complies with all laws and regulations governing
P15   1the approval of submeter types or the installation, maintenance,
2reading, billing, and testing of submeters, including, but not limited
3to, the California Plumbing Code.

4(2) This subdivision does not require a water purveyor to fund
5or assume responsibility for ensuring compliance with any law or
6regulation governing the approval of submeter types or the
7installation, maintenance, reading, billing, and testing of submeters
8and associated onsite plumbing.

9(3) Installationbegin delete and maintenanceend delete of submeters shall be provided
10bybegin insert contractorsend insert licensedbegin delete plumbing contractorsend deletebegin insert by the California
11Contractors State License Boardend insert
using workers who have
12graduated from abegin delete state approvedend deletebegin insert state-approvedend insert apprenticeship
13program.

14(c) A water purveyor shall not impose an additional capacity or
15connection fee or charge for a submeter that is installed by the
16owner, or his or her agent.

17(d) This section shall remain operative until the date on which
18the California Building Standards Commission includes standards
19in the California Building Standards Code that conform to this
20article.

21

537.2.  

(a) This article does not preclude or preempt an
22ordinance or regulation that regulates the approval of submeter
23types or the installation, maintenance, reading, billing, or testing
24of submeters and associated onsite plumbing if the ordinance or
25regulation was adopted prior to January 1, 2013.

26(b) This article does not restrict the authority of a water
27purveyor, city, county, city and county, or other local agency to
28adopt and implement a program to promote water conservation
29that includes the installation of water meters and submeters, as
30required pursuant to subdivision (a) of Section 537.1, if the
31program is at least as stringent as the requirements of this article.

32

537.3.  

It is the intent of the Legislature that this article should
33not be construed to impose costs on any local government agency,
34except to the extent that the local government agency is a water
35purveyor.

36

537.4.  

This article shall become operative on January 1, 2017.



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