Amended in Assembly August 19, 2016

Amended in Assembly September 4, 2015

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 tobegin insert amend Section 1954 of, and toend insert add Chapter 2.5 (commencing with Section 1954.201) to Title 5 of Part 4 of Division 3begin delete ofend deletebegin insert of,end insert 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 tobegin delete ensureend deletebegin insert establishend insert 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 abegin insert dwellingend insert 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,begin delete 2017.end deletebegin insert 2018.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 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,begin delete 2017,end deletebegin insert 2018,end insert 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 tobegin delete ensure that a submeter installed for these purposes compliesend deletebegin insert install submeters that complyend insert 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 installation of submeters to bebegin delete providedend deletebegin insert performed eitherend insert by contractors licensed by thebegin delete California Contractorsend deletebegin insert Contractors’end insert State License Boardbegin delete using workersend deletebegin insert that employs at least one journey personend insert whobegin delete meetend deletebegin insert meetsend insert specified trainingbegin delete requirements.end deletebegin insert requirements or by a registered service agency registered with the Department of Food and Agriculture.end insert 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.begin insert The bill would additionally provide that these provisions are intended to preclude the adoption, or preempt the operation, of an ordinance or regulation adopted after January 1, 2013, that regulates submeters, as specified.end insert The bill would provide that these provisions shall become operative on January 1,begin delete 2017.end deletebegin insert 2018.end insert

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

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

P4    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 1954 of the end insertbegin insertCivil Codeend insertbegin insert is amended to
2read:end insert

3

1954.  

(a) A landlord may enter the dwelling unit only in the
4following cases:

5(1) In case of emergency.

6(2) To make necessary or agreed repairs, decorations, alterations
7or improvements, supply necessary or agreed services, or exhibit
8the dwelling unit to prospective or actual purchasers, mortgagees,
9tenants, workers, or contractors or to make an inspection pursuant
10to subdivision (f) of Section 1950.5.

11(3) When the tenant has abandoned or surrendered the premises.

12(4) Pursuant to court order.

begin insert

13
(5) For the purposes set forth in Chapter 2.5 (commencing with
14Section 1954.201).

end insert

15(b) Except in cases of emergency or when the tenant has
16abandoned or surrendered the premises, entry may not be made
17during other than normal business hours unless the tenant consents
18to an entry during other than normal business hours at the time of
19entry.

20(c) The landlord may not abuse the right of access or use it to
21harass the tenant.

22(d) (1) Except as provided in subdivision (e), or as provided in
23paragraph (2) or (3), the landlord shall give the tenant reasonable
24notice in writing of his or her intent to enter and enter only during
25normal business hours. The notice shall include the date,
26approximate time, and purpose of the entry. The notice may be
27personally delivered to the tenant, left with someone of a suitable
28age and discretion at the premises, or, left on, near, or under the
29usual entry door of the premises in a manner in which a reasonable
30person would discover the notice. Twenty-four hours shall be
31presumed to be reasonable notice in absence of evidence to the
32contrary. The notice may be mailed to the tenant. Mailing of the
P5    1notice at least six days prior to an intended entry is presumed
2reasonable notice in the absence of evidence to the contrary.

3(2) If the purpose of the entry is to exhibit the dwelling unit to
4prospective or actual purchasers, the notice may be given orally,
5in person or by telephone, if the landlord or his or her agent has
6notified the tenant in writing within 120 days of the oral notice
7that the property is for sale and that the landlord or agent may
8contact the tenant orally for the purpose described above.
9Twenty-four hours is presumed reasonable notice in the absence
10of evidence to the contrary. The notice shall include the date,
11approximate time, and purpose of the entry. At the time of entry,
12the landlord or agent shall leave written evidence of the entry inside
13the unit.

14(3) The tenant and the landlord may agree orally to an entry to
15make agreed repairs or supply agreed services. The agreement
16shall include the date and approximate time of the entry, which
17shall be within one week of the agreement. In this case, the landlord
18is not required to provide the tenant a written notice.

19(e) No notice of entry is required under this section:

20(1) To respond to an emergency.

21(2) If the tenant is present and consents to the entry at the time
22of entry.

23(3) After the tenant has abandoned or surrendered the unit.

24

begin deleteSECTION 1.end delete
25
begin insertSEC. 2.end insert  

Chapter 2.5 (commencing with Section 1954.201) is
26added to Title 5 of Part 4 of Division 3 of the Civil Code, to read:

27 

28Chapter  2.5. Water Service
29

 

30

1954.201.  

It is the intent of the Legislature in enacting this
31chapter to do both of the following:

32(a) To encourage the conservation of water in multifamily
33residential rental buildings through means either within the
34landlord’s or the tenant’s control.

35(b) Tobegin delete ensureend deletebegin insert establishend insert that the practices involving the
36submetering of dwelling units for water service are just and
37reasonable, and include appropriate safeguards for both tenants
38and landlords.

39

1954.202.  

For the purposes of this chapter:

P6    1(a) “Billing agent” means a person or entity who contracts to
2provide submetering services to a landlord, including billing.

3(b) “Landlord” means an owner of residential rental property.
4“Landlord” does not include a tenant who rents all or a portion of
5a dwelling unit to subtenants. “Landlord” does not include a
6common interest development, as defined in Section 4100 of the
7Civil Code.

8(c) “Property” means real property containing two or more
9dwelling units that is served by a single master meter.

begin delete

10(d) “Purveyor” means any local purveyor who bills the landlord
11for charges related to water treatment, distribution, or usage,
12including, but not limited to, water, sewer, stormwater, flood
13control, and water treatment charges.

end delete
begin delete

29 14(e)

end delete

15begin insert(d)end insert “Ratio utility billing system” means the allocation of water
16and sewer costs to tenants based on the square footage, occupancy,
17or other physical factors of a dwelling unit.

begin delete

33 18(f)

end delete

19begin insert(e)end insert “Rental agreement” includes a fixed-term lease.

begin delete

35 20(g)

end delete

21begin insert(f)end insert “Renting” includes leasing, whether on a periodic or
22fixed-term basis.

begin delete

P5   1 23(h)

end delete

24begin insert(g)end insert “Submeter” means a device that measures water consumption
25of an individual rental unit within a multiunit residential structure
26or mixed-use residential and commercial structure, and that is
27owned and operated by thebegin delete ownerend deletebegin insert landlordend insert of the structure or the
28begin delete owner’send deletebegin insert landlord’send insert agent. As used in this section, “multiunit
29residential structure” and “mixed-use residential and commercial
30structure” mean real property containing two or more dwelling
31units.

begin delete

9 32(i)

end delete

33begin insert(h)end insert “Water service” includes any charges, whether presented
34for payment on localbegin insert waterend insert purveyor bills, tax bills, or bills from
35other entities, related to water treatment, distribution, or usage,
36including, but not limited to, water, sewer, stormwater,begin delete flood
37control, and water treatment charges.end delete
begin insert and flood control.end insert

begin delete

15 38(j)

end delete

39begin insert(i)end insert “Water purveyor” means a water purveyor as defined in
40Section 512 of the Water Code.

P7    1

1954.203.  

(a) begin deleteAll properties that use submeters end deletebegin insertSubmeters
2used end insert
to separately bill tenants for water service shallbegin delete ensure:end deletebegin insert satisfy
3each of the following requirements:end insert

4(1) The submeterbegin delete isend deletebegin insert shall beend insert inspected, tested, and verified for
5commercial purposes pursuant to law, including, but not limited
6to, Section 12500.5 of the Business and Professions Code.

7(2) Thebegin delete installation conformsend deletebegin insert submeter shall end insertbegin insertconformend insert to all
8begin delete laws,end deletebegin insert laws regarding installation, maintenance, repair, and use,end insert
9 including, but not limited to, regulations established pursuant to
10Section 12107 of the Business and Professions Code.

11(3) The submeterbegin delete for a dwelling unit measuresend deletebegin insert shall measureend insert
12 only water that is supplied for the exclusive use of the particular
13dwelling unit, and only to an area within the exclusive possession
14and control of the tenant of the dwelling unit.

15(4) The submeterbegin delete isend deletebegin insert shall beend insert capable of being accessed and read
16by the tenant of the dwelling unit and read by the landlord without
17entering the dwelling unit. A submeter installed before January 1,
18begin delete 2017,end deletebegin insert 2018,end insert may be read by the landlord after entry into the unit,
19in accordance with this chapter and Section 1954.

20(5) begin deleteEach end deletebegin insertThe end insertsubmeterbegin delete isend deletebegin insert shall beend insert reinspected and recalibrated
21within the time limits specified in law or regulation.

begin delete

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

end delete

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
27submeters 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 forbegin insert dwellingend insert
36 units at the property based on either of the following:

37(1) The average or median bill for water service for comparative
38begin insert dwellingend insert units 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
P8    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) begin deleteAn email address end deletebegin insertA mailing address, an email address, end insertand
8a toll-free telephone number or a local telephone number for the
9tenant to contactbegin insert the landlord or billing agentend insert with questions
10regarding the water service billing and the days and hours for
11regular telephone service at either number.

12(e) That the monthly bill for water service may only include the
13following charges:

14(1) Payment due for the amount of usage as measured by the
15
begin delete submeter, charged at the same rate for commodity usage by the
16purveyors.end delete
begin insert submeter and charged at allowable rates in accordance
17with subdivision (a) of Section 1954.205.end insert

18(2) Payment of a portion of the fixed fee charged by thebegin insert waterend insert
19 purveyors for water service.

20(3) A fee for the landlord’s or billing agent’s costs in accordance
21with paragraph (3) of subdivision (a) of Section 1954.205.

22(4) Any late fee, with the amounts and times assessed, in
23compliance with Section 1954.213.

24(f) A statement that the tenant shall notify the landlordbegin delete in writingend delete
25 of any leaks, drips,begin insert water fixtures that do not shut off properly,
26including, but not limited to, a toilet,end insert
or other problems with the
27water system,begin delete includingend deletebegin insert including, but not limited to,end insert problems
28with water-saving devices, and that the landlord is required to
29investigate, and, if necessary, repair thesebegin delete problems.end deletebegin insert problems
30within 21 days, otherwise, the water bill will be adjusted pursuant
31to law.end insert

begin insert

32
(g) A mailing address, an email address, and a toll-free
33telephone number or a local telephone number for the tenant to
34use to contact the landlord, or an agent of the landlord, to report
35any leaks, drips, water fixtures that do not shut off properly,
36including, but not limited to, a toilet, or other problems with the
37water system, including, but not limited to, problems with
38water-saving devices.

end insert
begin delete

P7   1 39(g)

end delete

P9    1begin insert(h)end insert A statement that the landlord shall provide any of the
2following information if asked by the tenant:

3(1) The location of the submeter.

4(2) The calculations used to determine a monthly bill.

5(3) The date the submeter was last certified for use, and the date
6it is next scheduled forbegin delete certification.end deletebegin insert certification, if known.end insert

begin delete

7 7(h)

end delete

8begin insert(i)end insert A statement that if the tenant believes that the submeter
9reading is inaccurate or the submeter is malfunctioning, the tenant
10shall first notify the landlord in writing and request an
11investigation. A tenant shall be provided with notice that if an
12alleged submeter malfunction is not resolved by the landlord, a
13tenant may contact the local county sealer and request that the
14submeter be tested. Contact information for the county sealer shall
15be included in the disclosure to the tenant.

begin delete

15 16(i)

end delete

17begin insert(j)end insert A statement that this disclosure is only a general overview
18of the laws regarding submeters and that the laws can be found at
19Chapter 2.5 (commencing with Section 1954.201) of Title 5 of
20Part 4 of Division 3 of the Civil Code, available online or at most
21libraries.

22

1954.205.  

(a) As part of the regular bill for water service, a
23landlord shall only bill a tenant for the following water service:

24(1) A charge for volumetric usage, which may be calculated in
25any the following ways:

26(A) The amount shall be calculated by first determining the
27proportion of the tenant’s usage, as shown by the submeter, to the
28total usage as shown by thebegin insert waterend insert purveyor’s billing. The dollar
29amount billed to the tenant for usage shall be in that same
30proportion to the dollar amount for usage shown by thebegin insert waterend insert
31 purveyor’s billing.

32(B) If thebegin insert waterend insert purveyor charges for volumetric usage based
33on a tiered rate schedule, the landlord may calculate the charge
34for a tenant’s volumetric usage as described in subparagraph (A)
35or the landlord may instead divide each tier’s volume evenly among
36the number of dwelling units, and the rate applicable to each block
37shall be applied to the consumption recorded for each dwelling
38unit.

P10   1(C) If thebegin insert waterend insert purveyor charges the property rates on a
2per-dwelling unit basis, the tenants may be charged at those exact
3per unit rates.

4(2) Any recurring fixed charge for water service billed to the
5property by thebegin insert waterend insert purveyors that, at the landlord’s discretion,
6shall be calculated by either of the following:

7(A) The tenant’s proportion of the total fixed charges charged
8to the property. The tenant’s proportion shall be based on the
9percentage of the tenant’s volumetric water use in relation to the
10total volumetric water use of the entire property, as shown on the
11property’s water bill during that period.

12(B) Dividing the total fixed charges charged to the property
13equally among the total number of residential units and
14nonresidential units at the property.

15(3) A billing, administrative, or other fee for the landlord’s and
16billing agent’s costs, which shall be the lesser of an amount not to
17exceed four dollars and seventy-five cents ($4.75), as adjusted
18pursuant to this paragraph or 25 percent of the amount billed
19pursuant to paragraph (1). Beginning January 1, 2018, the
20maximum fee authorized by this paragraph may be adjusted each
21calendar year by the landlord, no higher than a commensurate
22increase in the Consumer Price Index based on a California fiscal
23year average for the previous fiscal year, for all urban consumers,
24as determined by the Department of Finance.

25(4) A late charge as assessed pursuant to Section 1954.213.

26(b) If a submeter reading for the beginning or end of a billing
27period is, in good faith, not available, the landlord shall bill the
28tenant according to Section 1954.212.

29(c) This section does not prohibit a landlord or the landlord’s
30 billing agent from including any other lawful charges,begin delete includingend delete
31begin insert including, but not limited to,end insert rent, on the same bill.

32

1954.206.  

(a) Submeters shall be read within three days of the
33same point in each billing cycle.

34(b) Payments shall be due at the same point in each billing cycle.
35A tenant may agree in writing to receive a bill electronically. A
36tenant may rescind authorization for electronic delivery of bills at
37any time.begin insert The landlord shall have 30 days to comply with any
38change in how a tenant requests to receive a bill.end insert
A tenant shall
39not be required to pay a bill electronically.

P11   1(c) A bill shall include and separately set forth the following
2information:

3(1) The submeter reading for the beginning date and ending
4date of the billing cycle, the dates read, and the indicated
5consumption as determined by subtracting the amount of the
6beginning date submeter reading from the amount of the ending
7date submeter reading. If the unit of measure is in something other
8than gallons, the indicated consumption shall be expressed in
9gallons.

10(2) The amounts charged pursuant to subdivision (a) of Section
111954.205.

12(3) The rate or rates charged for the volumetric charge per unit
13of measure.

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

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

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

19(7) The total amount due for the billing period.

20(8) The due date for the payment.

21(9) If a late fee is charged by the landlord, a statement of when
22the late fees would apply.

23(10) The procedure to contact the landlord or billing agent with
24questions or concerns regarding the bill. Upon request of the tenant,
25the landlord or billing agent shall respond in writing to any
26questions or disputes from the tenant. If a billing agent is used, the
27name of the billing agent shall be disclosed. The tenant shall be
28provided a mailing address, email address,begin insert andend insert telephone number,
29which shall be either a toll-free or a local number, and the time of
30regular telephone hours for contact regarding billing inquiries.

31(11) A statement that the landlord or billing agent is not the
32water purveyor that includes the name of the local water purveyor
33providing the water service to the master meter.

begin insert

34
(12) A mailing address, an email address, and a toll-free
35telephone number or a local telephone number for the tenant to
36use to contact the landlord, or an agent of the landlord, to report
37any leaks, drips, water fixtures that do not shut off properly,
38including, but not limited to, a toilet, or other problems with the
39water system, including, but not limited to, problems with
40water-saving devices.

end insert

P12   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 landlordbegin delete mayend deletebegin insert may, at his or her discretion,end insert deduct an
16unpaid water service bill from the security depositbegin insert during orend insert upon
17begin delete the endingend deletebegin insert terminationend insert of a tenancy, if the last water service bill
18showing the amount due is attached to the documentation required
19by Section 1950.5.

20

1954.208.  

Unless it can be documented that a penalty isbegin delete solelyend delete
21begin insert primarilyend insert the result of a tenant’sbegin insert or tenantsend insertbegin insertend insert failure to comply with
22state or local water use regulations or restrictions, or both,
23regarding wasting of water, a landlord shall not charge, recover,
24or allow to be charged or recovered, fees incurred by the landlord
25from thebegin insert waterend insert purveyors, billing agent, or any other person for
26any deposit, disconnection, reconnection, late payment by the
27landlord, or any other penalty assessed against the landlord. This
28section shall not prevent a landlord from charging a tenant for the
29tenant’s late payment of any bill.

30

1954.209.  

The landlord shall maintain and make available in
31writing, at the tenant’s written or electronic request, within seven
32days after the request, the following:

33(a) The date the submeter was last inspected, tested, and verified,
34and the date by which it shall be reinspected, tested, and verified
35under law, if available. If this information is not available, the
36landlord shall disclose that the information is not available.

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

38(1) The most recent water bill for the property’s master water
39meter showing the recurring fixed charge for water service billed
P13   1to the property by the water purveyor, and the usage charges for
2the property, including any tiered amounts.

3(2) Any other bills for water service, as defined in subdivision
4begin delete (i)end deletebegin insert (h)end insert of Section 1954.202, for the property.

5(3) The number ofbegin insert dwellingend insert units in thebegin delete property.end deletebegin insert property used
6in the last billing period to calculate the tenant’s water service
7charges.end insert

8(4) If not shown on the bill for the property, the per unit charges
9for volumetric water usage, including any tiered amounts.

10(5) The formula used to calculate the charge for the tenant’s
11volumetric water usage.

12(c) The location of the submeter.

13

1954.210.  

(a) If a tenant notifies the landlordbegin delete in writingend delete of, or
14the landlord otherwise becomes aware of, a leak, a drip, abegin delete running
15toilet,end delete
begin insert water fixture that does not shut off property, including, but
16not limited to, a toilet, a problem with a water-saving deviceend insert
begin insert,end insert or
17otherbegin delete submeter problem,end deletebegin insert problem with the water system that causes
18constant or abnormally high water usage,end insert
or a submeter reading
19indicates constant or abnormal high water usage, the landlord shall
20have the condition investigated, and, if warranted, rectify the
21condition.

22(b) A tenant shall not remove any water fixtures orbegin delete water
23conservationend delete
begin insert water-savingend insert devices that have been installed by the
24landlord.

25(c) If the condition is rectified more thanbegin delete 14end deletebegin insert 21end insert days after the
26tenantbegin delete notifies the landlord in writingend deletebegin insert provides notice to the
27landlord or the landlord otherwise becomes aware of a leak, a
28drip, a water fixture that does not shut off properly, including, but
29not limited to, a toilet, a problem with a water-saving device, or
30other problem with the water system that causes constant or
31abnormally high water usage, or a submeter reading indicates
32constant or abnormally high water usage,end insert
pursuant to subdivision
33(a), the tenant’s volumetric usage for any month or months that
34include the period betweenbegin delete 14end deletebegin insert 21end insert days after the initial investigation
35and the repair shall be deemed to be fifteen dollars ($15) or actual
36usage, whichever is less. At the landlord’s option, if submeter
37readings are available to determine the usage at a point prior to
38investigation and a point following repair, usage shall be deemed
39to be fifty cents ($0.50) per day for those days between the two
40submeter readings or actual usage, whichever is less.

P14   1(d) If the condition remains unrectified forbegin delete six monthsend deletebegin insert 180 daysend insert
2 after investigation, no further volumetric usage charges may be
3imposed until the condition is repaired.

begin insert

4
(e) If, in order to comply with subdivision (a), the landlord has
5provided notice pursuant to Section 1954, and the tenant has failed
6to provide access to the dwelling unit, then the charges shall not
7be determined pursuant to subdivisions (c) and (d).

end insert
begin insert

8
(f) If the local water purveyor notifies the landlord of constant
9or abnormally high water usage at the property, the landlord shall
10investigate and, if possible, rectify the cause of the high water
11usage.

end insert
12

1954.211.  

begin deleteIn addition to the grounds for entry specified in
13subdivision (a) of Section 1954, the end delete
begin insertThe end insertlandlord may enter a
14begin insert dwellingend insert unit as follows:

15(a) For the purpose of installing, repairing,begin delete testing, and
16maintainingend delete
begin insert or replacingend insert a submeter, or for the purpose ofbegin delete repairing
17or testing any water fixture suspected by the landlord or reported
18by the tenant to be in need of repair,end delete
begin insert investigating or rectifying a
19condition causing constant or abnormally high water usage, as
20required by subdivision (a) of Section 1954.210,end insert
if the requirements
21of Section 1954 are met.

22(b) To read a submeter, if the requirements of this chapter and
23Section 1954 are met. Notwithstanding paragraph (3) of subdivision
24(d) of Section 1954, notice shall be given only in writing.

25

1954.212.  

(a) If a monthly submeter reading necessary to
26measure volumetric usage is unavailable,begin insert and the tenant has
27provided access to the submeter,end insert
the tenant may be charged 75
28percent of the average amount billed for volumetric usage for the
29last three months for which complete billing information is
30available. The adjustment shall be disclosed on the bill.

31(b) If no complete billing information is available for the prior
32three months, the volumetric usage charge shall be deemed to be
33fifty cents ($0.50) per day that the data is not available.

34(c) If monthly submeter readings remain unavailable for more
35than six months, the volumetric usage charge shall be deemed to
36be zero for any subsequent month that the data is not available.

37

1954.213.  

(a) A tenant may be charged a late fee for any water
38service bill not paid 25 days after mailing or other transmittal of
39the bill. If the 25th day falls on a Saturday, Sunday, or holiday,
P15   1the late fee shall not be imposed until the day after the first business
2day following the 25th day.

3(b) begin insert(1)end insertbegin insertend insert A late fee of up to seven dollars ($7) may be imposed
4if any amount of abegin insert water serviceend insert bill remains unpaid after the time
5described in subdivision (a). A late fee of up to ten dollars ($10)
6may be imposed in each subsequent bill if any amount remains
7unpaid.begin delete Ifend delete

begin insert

8
(2) The total late fee imposed in any 12-month period upon the
9amount of a bill that remains unpaid shall not exceed 10 percent
10of the unpaid amount, exclusive of the administrative fee imposed
11pursuant to paragraph (3) of subdivision (a) of Section 1954.205
12and the late fee imposed pursuant to paragraph (1).

end insert

13begin insert(3)end insertbegin insertend insertbegin insertIfend insert any partial payments are made, they shall be credited
14against the bill that has been outstanding the longest.

begin delete

15(c) In addition to the purposes specified in subdivision (b) of
16Section 1950.5, if a water service bill remains unpaid after the
17time described in subdivision (a) expires, the landlord may also
18claim the amount of the unpaid bill from the security deposit.

end delete
begin delete

19(d) If a water service bill remains unpaid for 30 days after the
20time described in subdivision (a) expires, the nonpayment shall
21constitute a curable material breach of the lease. The landlord shall
22have the right to terminate the tenancy in accordance with
23paragraph (3) of Section 1161 of the Code of Civil Procedure with
24the service of a three-day notice to cure covenant or quit upon the
25tenant.

end delete
begin delete

23 26(e) If

end delete

27begin insert(c)end insertbegin insertend insertbegin insertNotwithstanding subdivision (c) of Section 1954.207, ifend insert the
28water bill remains unpaid forbegin delete six monthsend deletebegin insert 180 daysend insert after the begin delete time
29period provided in subdivision (a) expiresend delete
begin insert date upon which it is
30dueend insert
or the amount of the unpaid water bill equals or exceeds two
31hundredbegin delete fiftyend delete dollarsbegin delete ($250),end deletebegin insert ($200),end insert the landlord may terminate
32the tenancy in accordance with Section 1161 of the Code of Civil
33Procedure with the service of a three-day notice tobegin delete payend deletebegin insert perform
34the conditions or covenantsend insert
or quit upon the tenant.

begin delete

30 35(f)

end delete

36begin insert(d)end insert Water service charges under this chapter shall not constitute
37rent.

begin delete

33 38(g)

end delete

39begin insert(e)end insert The water service to a dwelling unit shall not be shut off or
40otherwise interfered with by the landlord for any reason, including
P16   1nonpayment of a bill. Notwithstanding the foregoing, a landlord
2or its agent may shut off water service to a dwelling unit or the
3property, in order to make repairs, replacements of equipment, or
4perform other maintenance at the property.

5

1954.214.  

This chapter does not preclude or preempt an
6ordinance or regulation adopted prior to January 1, 2013, that
7regulates the approval of submeter types or the installation,
8maintenance, reading, billing, or testing of submeters and
9associated onsite plumbing.

10

1954.215.  

The rights or obligations established under this
11chapter shall not be waived. Any purported waiver is void.

12

1954.216.  

(a) This chapter applies to the following:

13(1) All dwelling units offered for rent or rented in a building
14where submeters were required to be installed pursuant to a
15building standard adopted in accordance with Section 17922.14
16of the Health and Safety Code.

17(2) All dwelling units where submeters are used to charge a
18tenant separately for water service.

19(b) Nothing in this chapter shall be construed to apply to any
20dwelling units other than those described in subdivision (a).

21(c) Nothing in this chapter shall be construed tobegin delete state a
22legislative policy favoring or disfavoringend delete
begin insert apply or create a public
23policy or requirement that favors or disfavorsend insert
the use of a ratio
24utility billing system.

25

1954.217.  

A submetering system that measures only a portion
26of a dwelling unit’s water usage, including, but not limited to, a
27system that measures only hot water usage, shall not be subject to
28this chapter if the system was first put in service before January
291,begin delete 2017.end deletebegin insert 2018.end insert

30

1954.218.  

This chapter shall become operative on January 1,
31
begin delete 2017.end deletebegin insert 2018.end insert

32

1954.219.  

Any property that is required to install individual
33submeters pursuant to Article 5 (commencing with Section 537)
34of Chapter 8 of Division 1 of the Water Code shall at all times be
35required to bill residents for water service pursuant to this chapter.

36

begin deleteSEC. 2.end delete
37
begin insertSEC. 3.end insert  

Section 17922.14 is added to the Health and Safety
38Code
, to read:

39

17922.14.  

(a) begin insert(1)end insertbegin insertend insert During the next regularly scheduled
40begin delete interveningend deletebegin insert triennialend insert code cycle that commences on or after January
P17   11,begin delete 2016,end deletebegin insert 2018,end insert or during a subsequent code adoption cycle, the
2departmentbegin delete mayend deletebegin insert shallend insert develop and propose for adoption by the
3California Building Standards Commission, pursuant to Chapter
44 (commencing with Section 18935) of Part 2.5, building standards
5requiring the installation of water meters or submeters inbegin insert newly
6constructedend insert
multiunit residentialbegin insert structures or mixed-use residential
7and commercialend insert
structures, as those terms are defined in Section
8517 of the Water Code. These standards shall conform to Article
95 (commencing with Section 537) of Chapter 8 of Division 1 of
10the Water Code.

begin insert

11
(b) The proposed standards shall require the installation of
12water meters or submeters in newly constructed multiunit
13residential structures and mixed-use residential and commercial
14structures only for residential dwelling units within those
15structures, but shall not require installation in units within those
16structures that are used only for commercial purposes.

end insert
begin delete

17(b)

end delete

18begin insert(c)end insert (1) The department shall determine whether and under what
19circumstances the installation of water meters or submeters is
20infeasible and include in the building standards proposed in
21subdivision (a) the appropriate provision for exemption from this
22requirement. The department may consider whether there are any
23issues specific to high-risebegin delete multifamily buildingsend deletebegin insert structuresend insert that
24would require an exemption from the requirement for the
25installation of water meters or submeters.

26(2) The following categories of structures shall be exempt from
27the building standards established pursuant to subdivision (a):

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

29(B) Low-income housing. For the purposes of this subparagraph,
30“low-income housing” means a residential building that is financed
31with low-income housing tax credits, tax-exempt mortgage revenue
32bonds, general obligation bonds, or federal, state, or local loans
33or grants, for which rents charged to lower income households do
34not exceed rents prescribed by deed restrictions or regulatory
35agreements pursuant to the terms of the financing or financial
36assistance, and for which not less than 90 percent of the dwelling
37units within the building are designated for occupancy by lower
38income households. As used in this subparagraph, “lower income
39households” has the same meaning as defined in Section 50079.5.

P18   1(C) Residential care facilities for the elderly, as defined in
2subdivision (k) of Section 1569.2.

3(D) Housing at a place of education, as defined in Section 202
4of the California Building Standards Code (Title 24 of the
5California Code of Regulations).

6(E) Time-share property, as defined in subdivision (aa) of
7Section 11212 of the Business and Professions Code.

begin delete

8(c)

end delete

9begin insert(d)end insert Moneys in the Building Standards Administration Special
10Revolving Fund established pursuant to Section 18931.7 shall be
11available, upon appropriation by the Legislature, for the
12department’s administrative costs associated with the development
13of building standards in accordance with this section.

14

begin deleteSEC. 3.end delete
15
begin insertSEC. 4.end insert  

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

16

517.  

“Submeter” means a device that measures water
17consumption of an individual rental unit within a multiunit
18residential structure or mixed-use residential and commercial
19structure, and that is owned and operated by the owner of the
20structure or the owner’s agent. As used in this section, “multiunit
21residential structure” and “mixed-use residential and commercial
22structure” mean real property containing two or more dwelling
23units.

24

begin deleteSEC. 4.end delete
25
begin insertSEC. 5.end insert  

Article 5 (commencing with Section 537) is added to
26Chapter 8 of Division 1 of the Water Code, to read:

27 

28Article 5.  Multiunit Structures
29

 

30

537.  

(a) The structures in all of the following categories shall
31be exempt from this article:

32(1) Low-income housing. For purposes of this paragraph,
33“low-income housing” means a residential building financed with
34low-income housing tax credits, tax-exempt mortgage revenue
35bonds, general obligation bonds, or local, state, or federal loans
36or grants, for which the rents of the occupants in lower income
37households, as defined in Section 50079.5 of the Health and Safety
38Code, do not exceed rents prescribed by deed restrictions or
39regulatory agreements pursuant to the terms of the financing or
40financial assistance, and for which not less than 90 percent of the
P19   1dwelling units within the building are designated for occupancy
2by lower income households, as defined in Section 50079.5 of the
3Health and Safety Code.

4(2) Housing at a place of education, as defined in Section 202
5of the California Building Standards Code (Title 24 of the
6California Code of Regulations).

7(3) Long-term health care facilities, as defined in Section 1418
8of the Health and Safety Code.

9(4) Time-share property, as defined in subdivision (aa) of
10Section 11212 of the Business and Professions Code.

11(5) Residential care facilities for the elderly, as defined in
12Section 1569.2 of the Health and Safety Code.

13(b) A submeter used to measure water supplied to an individual
14residential unit that is required pursuant to this chapter shall be of
15a type approved pursuant to Section 12500.5 of the Business and
16Professions Code, and shall be installed and operated in compliance
17with regulations established pursuant to Section 12107 of the
18Business and Professions Code.

19

537.1.  

(a) Each water purveyor that sells, leases, rents,
20furnishes, or delivers water service to a newly constructed multiunit
21residential structure or newly constructed mixed-use residential
22and commercial structure for which an application for a water
23connection, or more than one connection, is submitted after January
241,begin delete 2017,end deletebegin insert 2018,end insert shall require a measurement of the quantity of water
25supplied to each individualbegin insert residentialend insert dwelling unit as a condition
26of new water service. The measurement may be by individual
27water meters or submeters.

28(b) Unless the water purveyor or local government is operating
29under an ordinance or regulation requiring individual metering,
30the owner shall be required to install and read submeters, unless
31the water purveyor agrees to install and read individual meters.

32(c) (1) The owner of the structure shallbegin delete ensure that each submeter
33installed compliesend delete
begin insert install submeters that complyend insert with all laws and
34regulations governing the approval of submeter types or the
35installation, maintenance, reading, billing, and testing of submeters,
36including, but not limited to, the California Plumbing Code.

37(2) This subdivision does not require a water purveyor to fund
38or assume responsibility for ensuring compliance with any law or
39regulation governing the approval of submeter types or the
P20   1installation, maintenance, reading, billing, and testing of submeters
2and associated onsite plumbing.

3(3) Installation of submeters shall bebegin delete provided by contractorsend delete
4
begin insert performed by one of the following:end insert

5begin insert(A)end insertbegin insertend insertbegin insertA contractorend insert licensed by thebegin delete California Contractorsend delete
6begin insert Contractors’end insert State License Boardbegin delete using workers who haveend deletebegin insert who
7employs at least one journey person who hasend insert
graduated from a
8state-approved apprenticeship program.

begin insert

9
(B) A registered service agency that has registered with the
10Department of Food and Agriculture.

end insert

11(d) A water purveyor shall not impose an additional capacity
12or connection fee or charge for a submeter that is installed by the
13owner, or his or her agent.

14(e) This section shall remain operative until the date on which
15the California Building Standards Commission includes standards
16in the California Building Standards Code that conform to this
17article.

18

537.2.  

(a) A final occupancy permit for a building shall not
19be denied by a local building official if water submeters or meters
20have not been installed for each residential unit as required by this
21chapter if the building owner can demonstrate either of the
22following:

23(1) Water submeters have been ordered and were delayed by
24the manufacturer.

25(2) Water submeters for the building were submitted to a county
26sealer and are awaiting approval for use.

27(b) After issuance of the occupancy permit, the owner shall
28begin delete ensureend deletebegin insert demonstrateend insert that the submeters are installed in the building
29within 120 days of approval by the county sealer.

30

537.3.  

(a) This article does not preclude or preempt an
31ordinance or regulation that regulates the approval of submeter
32types or the installation, maintenance, reading, billing, or testing
33of submeters and associated onsite plumbing if the ordinance or
34regulation was adopted prior to January 1, 2013.

begin insert

35
(b) It is the intent of the Legislature to preclude the adoption,
36and preempt the operation, of an ordinance or regulation adopted
37after January 1, 2013, that regulates the types of approved
38submeters, their installation, maintenance, reading, billing, and
39testing, and associated onsite plumbing.

end insert
begin delete

40(b)

end delete

P21   1begin insert(c)end insert This article does not restrict thebegin insert existingend insert 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 537.1, if the
6program is at least as stringent as the requirements of this article.

7

537.4.  

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

537.5.  

This article shall become operative on January 1,begin delete 2017.end delete
12
begin insert 2018.end insert



O

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