BILL NUMBER: SB 7	CHAPTERED
	BILL TEXT

	CHAPTER  623
	FILED WITH SECRETARY OF STATE  SEPTEMBER 25, 2016
	APPROVED BY GOVERNOR  SEPTEMBER 25, 2016
	PASSED THE SENATE  AUGUST 31, 2016
	PASSED THE ASSEMBLY  AUGUST 25, 2016
	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

INTRODUCED BY   Senator Wolk
   (Coauthor: Assembly Member Williams)

                        DECEMBER 1, 2014

   An act to amend Section 1954 of, and 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, 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 establish 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 dwelling 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,
2018.
   (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, 2018, 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 install submeters that comply
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 be
performed either by contractors licensed by the Contractors' State
License Board that employs at least one journey person who meets
specified training requirements or by a registered service agency
registered with the Department of Food and Agriculture. 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 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. The bill would provide
that these provisions shall become operative on January 1, 2018.



THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 1954 of the Civil Code is amended to read:
   1954.  (a) A landlord may enter the dwelling unit only in the
following cases:
   (1) In case of emergency.
   (2) To make necessary or agreed repairs, decorations, alterations
or improvements, supply necessary or agreed services, or exhibit the
dwelling unit to prospective or actual purchasers, mortgagees,
tenants, workers, or contractors or to make an inspection pursuant to
subdivision (f) of Section 1950.5.
   (3) When the tenant has abandoned or surrendered the premises.
   (4) Pursuant to court order.
   (5) For the purposes set forth in Chapter 2.5 (commencing with
Section 1954.201).
   (b) Except in cases of emergency or when the tenant has abandoned
or surrendered the premises, entry may not be made during other than
normal business hours unless the tenant consents to an entry during
other than normal business hours at the time of entry.
   (c) The landlord may not abuse the right of access or use it to
harass the tenant.
   (d) (1) Except as provided in subdivision (e), or as provided in
paragraph (2) or (3), the landlord shall give the tenant reasonable
notice in writing of his or her intent to enter and enter only during
normal business hours. The notice shall include the date,
approximate time, and purpose of the entry. The notice may be
personally delivered to the tenant, left with someone of a suitable
age and discretion at the premises, or, left on, near, or under the
usual entry door of the premises in a manner in which a reasonable
person would discover the notice. Twenty-four hours shall be presumed
to be reasonable notice in absence of evidence to the contrary. The
notice may be mailed to the tenant. Mailing of the notice at least
six days prior to an intended entry is presumed reasonable notice in
the absence of evidence to the contrary.
   (2) If the purpose of the entry is to exhibit the dwelling unit to
prospective or actual purchasers, the notice may be given orally, in
person or by telephone, if the landlord or his or her agent has
notified the tenant in writing within 120 days of the oral notice
that the property is for sale and that the landlord or agent may
contact the tenant orally for the purpose described above.
Twenty-four hours is presumed reasonable notice in the absence of
evidence to the contrary. The notice shall include the date,
approximate time, and purpose of the entry. At the time of entry, the
landlord or agent shall leave written evidence of the entry inside
the unit.
   (3) The tenant and the landlord may agree orally to an entry to
make agreed repairs or supply agreed services. The agreement shall
include the date and approximate time of the entry, which shall be
within one week of the agreement. In this case, the landlord is not
required to provide the tenant a written notice.
   (e) No notice of entry is required under this section:
   (1) To respond to an emergency.
   (2) If the tenant is present and consents to the entry at the time
of entry.
   (3) After the tenant has abandoned or surrendered the unit.
  SEC. 2.  Chapter 2.5 (commencing with Section 1954.201) is added to
Title 5 of Part 4 of Division 3 of the Civil Code, to read:
      CHAPTER 2.5.  WATER SERVICE


   1954.201.  It is the intent of the Legislature in enacting this
chapter to do both of the following:
   (a) To encourage the conservation of water in multifamily
residential rental buildings through means either within the landlord'
s or the tenant's control.
   (b) To establish 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.
   1954.202.  For the purposes of this chapter:
   (a) "Billing agent" means a person or entity who contracts to
provide submetering services to a landlord, including billing.
   (b) "Landlord" means an owner of residential rental property.
"Landlord" does not include a tenant who rents all or a portion of a
dwelling unit to subtenants. "Landlord" does not include a common
interest development, as defined in Section 4100 of the Civil Code.
   (c) "Property" means real property containing two or more dwelling
units that is served by a single master meter.
   (d) "Ratio utility billing system" means the allocation of water
and sewer costs to tenants based on the square footage, occupancy, or
other physical factors of a dwelling unit.
   (e) "Rental agreement" includes a fixed-term lease.
   (f) "Renting" includes leasing, whether on a periodic or
fixed-term basis.
   (g) "Submeter" means a device that measures water consumption of
an individual rental unit within a multiunit residential structure or
mixed-use residential and commercial structure, and that is owned
and operated by the landlord of the structure or the landlord's
agent. As used in this section, "multiunit residential structure" and
"mixed-use residential and commercial structure" mean real property
containing two or more dwelling units.
   (h) "Water service" includes any charges, whether presented for
payment on local water purveyor bills, tax bills, or bills from other
entities, related to water treatment, distribution, or usage,
including, but not limited to, water, sewer, stormwater, and flood
control.
   (i) "Water purveyor" means a water purveyor as defined in Section
512 of the Water Code.
   1954.203.  (a) Submeters used to separately bill tenants for water
service shall satisfy each of the following requirements:
   (1) The submeter shall be inspected, tested, and verified for
commercial purposes pursuant to law, including, but not limited to,
Section 12500.5 of the Business and Professions Code.
   (2) The submeter shall conform to all laws regarding installation,
maintenance, repair, and use, including, but not limited to,
regulations established pursuant to Section 12107 of the Business and
Professions Code.
   (3) The submeter shall measure only water that is supplied for the
exclusive use of the particular dwelling unit, and only to an area
within the exclusive possession and control of the tenant of the
dwelling unit.
   (4) The submeter shall be capable of being accessed and read by
the tenant of the dwelling unit and read by the landlord without
entering the dwelling unit. A submeter installed before January 1,
2018, may be read by the landlord after entry into the unit, in
accordance with this chapter and Section 1954.
   (5) The submeter shall be reinspected and recalibrated within the
time limits specified in law or regulation.
   (b) This section does not require a water purveyor to assume
responsibility for ensuring compliance with any law or regulation
governing installation, certification, maintenance, and testing of
submeters and associated onsite plumbing.
   1954.204.  Before executing a rental agreement, a landlord who
intends to charge a tenant separately from rent for water service in
a property with submeters shall clearly disclose the following
information to the tenant, in writing, in at least l0-point type,
which may be incorporated into the rental agreement:
   (a) That the tenant will be billed for water service separately
from the rent.
   (b) An estimate of the monthly bill for water service for dwelling
units at the property based on either of the following:
   (1) The average or median bill for water service for comparative
dwelling units at the property over any three of the past six months.

   (2) The amount of the bill based upon average indoor water use of
a family of four of approximately 200 gallons per day, and including
all other monthly charges that will be assessed. Estimates for other
gallons per day may also be included. The estimate shall include a
statement that the average family of four uses about 200 gallons of
water each day.
   (c) The due dates and payment procedures for bills for water
service.
   (d) A mailing address, an email address, and a toll-free telephone
number or a local telephone number for the tenant to contact the
landlord or billing agent with questions regarding the water service
billing and the days and hours for regular telephone service at
either number.
   (e) That the monthly bill for water service may only include the
following charges:
   (1) Payment due for the amount of usage as measured by the
submeter and charged at allowable rates in accordance with
subdivision (a) of Section 1954.205.
   (2) Payment of a portion of the fixed fee charged by the water
purveyors for water service.
   (3) A fee for the landlord's or billing agent's costs in
accordance with paragraph (3) of subdivision (a) of Section 1954.205.

   (4) Any late fee, with the amounts and times assessed, in
compliance with Section 1954.213.
   (f) A statement that the tenant shall notify the landlord of any
leaks, drips, water fixtures that do not shut off properly,
including, but not limited to, a toilet, or other problems with the
water system, including, but not limited to, problems with
water-saving devices, and that the landlord is required to
investigate, and, if necessary, repair these problems within 21 days,
otherwise, the water bill will be adjusted pursuant to law.
   (g) A mailing address, an email address, and a toll-free telephone
number or a local telephone number for the tenant to use to contact
the landlord, or an agent of the landlord, to report any leaks,
drips, water fixtures that do not shut off properly, including, but
not limited to, a toilet, or other problems with the water system,
including, but not limited to, problems with water-saving devices.
   (h) A statement that the landlord shall provide any of the
following information if asked by the tenant:
   (1) The location of the submeter.
   (2) The calculations used to determine a monthly bill.
   (3) The date the submeter was last certified for use, and the date
it is next scheduled for certification, if known.
   (i) A statement that if the tenant believes that the submeter
reading is inaccurate or the submeter is malfunctioning, the tenant
shall first notify the landlord in writing and request an
investigation. A tenant shall be provided with notice that if an
alleged submeter malfunction is not resolved by the landlord, a
tenant may contact the local county sealer and request that the
submeter be tested. Contact information for the county sealer shall
be included in the disclosure to the tenant.
   (j) A statement that this disclosure is only a general overview of
the laws regarding submeters and that the laws can be found at
Chapter 2.5 (commencing with Section 1954.201) of Title 5 of Part 4
of Division 3 of the Civil Code, available online or at most
libraries.
   1954.205.  (a) As part of the regular bill for water service, a
landlord shall only bill a tenant for the following water service:
   (1) A charge for volumetric usage, which may be calculated in any
the following ways:
   (A) The amount shall be calculated by first determining the
proportion of the tenant's usage, as shown by the submeter, to the
total usage as shown by the water purveyor's billing. The dollar
amount billed to the tenant for usage shall be in that same
proportion to the dollar amount for usage shown by the water purveyor'
s billing.
   (B) If the water purveyor charges for volumetric usage based on a
tiered rate schedule, the landlord may calculate the charge for a
tenant's volumetric usage as described in subparagraph (A) or the
landlord may instead divide each tier's volume evenly among the
number of dwelling units, and the rate applicable to each block shall
be applied to the consumption recorded for each dwelling unit.
   (C) If the water purveyor charges the property rates on a
per-dwelling unit basis, the tenants may be charged at those exact
per unit rates.
   (2) Any recurring fixed charge for water service billed to the
property by the water purveyors that, at the landlord's discretion,
shall be calculated by either of the following:
   (A) The tenant's proportion of the total fixed charges charged to
the property. The tenant's proportion shall be based on the
percentage of the tenant's volumetric water use in relation to the
total volumetric water use of the entire property, as shown on the
property's water bill during that period.
   (B) Dividing the total fixed charges charged to the property
equally among the total number of residential units and
nonresidential units at the property.
   (3) A billing, administrative, or other fee for the landlord's and
billing agent's costs, which shall be the lesser of an amount not to
exceed four dollars and seventy-five cents ($4.75), as adjusted
pursuant to this paragraph or 25 percent of the amount billed
pursuant to paragraph (1). Beginning January 1, 2018, the maximum fee
authorized by this paragraph may be adjusted each calendar year by
the landlord, no higher than a commensurate increase in the Consumer
Price Index based on a California fiscal year average for the
previous fiscal year, for all urban consumers, as determined by the
Department of Finance.
   (4) A late charge as assessed pursuant to Section 1954.213.
   (b) If a submeter reading for the beginning or end of a billing
period is, in good faith, not available, the landlord shall bill the
tenant according to Section 1954.212.
   (c) This section does not prohibit a landlord or the landlord's
billing agent from including any other lawful charges, including, but
not limited to, rent, on the same bill.
   1954.206.  (a) Submeters shall be read within three days of the
same point in each billing cycle.
   (b) Payments shall be due at the same point in each billing cycle.
A tenant may agree in writing to receive a bill electronically. A
tenant may rescind authorization for electronic delivery of bills at
any time. The landlord shall have 30 days to comply with any change
in how a tenant requests to receive a bill. A tenant shall not be
required to pay a bill electronically.
   (c) A bill shall include and separately set forth the following
information:
   (1) The submeter reading for the beginning date and ending date of
the billing cycle, the dates read, and the indicated consumption as
determined by subtracting the amount of the beginning date submeter
reading from the amount of the ending date submeter reading. If the
unit of measure is in something other than gallons, the indicated
consumption shall be expressed in gallons.
   (2) The amounts charged pursuant to subdivision (a) of Section
1954.205.
   (3) The rate or rates charged for the volumetric charge per unit
of measure.
   (4) The amount, if any, due from the previous month's bill.
   (5) The amount, if any, due from bills prior to the previous month'
s bill.
   (6) The late fee, if any, imposed on amounts specified in
paragraph (4) or (5).
   (7) The total amount due for the billing period.
   (8) The due date for the payment.
   (9) If a late fee is charged by the landlord, a statement of when
the late fees would apply.
   (10) The procedure to contact the landlord or billing agent with
questions or concerns regarding the bill. Upon request of the tenant,
the landlord or billing agent shall respond in writing to any
questions or disputes from the tenant. If a billing agent is used,
the name of the billing agent shall be disclosed. The tenant shall be
provided a mailing address, email address, and telephone number,
which shall be either a toll-free or a local number, and the time of
regular telephone hours for contact regarding billing inquiries.
   (11) A statement that the landlord or billing agent is not the
water purveyor that includes the name of the local water purveyor
providing the water service to the master meter.
   (12) A mailing address, an email address, and a toll-free
telephone number or a local telephone number for the tenant to use to
contact the landlord, or an agent of the landlord, to report any
leaks, drips, water fixtures that do not shut off properly,
including, but not limited to, a toilet, or other problems with the
water system, including, but not limited to, problems with
water-saving devices.
   (d) Notwithstanding paragraphs (4) and (5) of subdivision (c), a
separate bill may be provided for past due amounts if past due
amounts are not included on the current month's bill.
   1954.207.  (a) At the beginning of a tenancy, a submeter shall be
read after the tenant takes possession. If the regular reading occurs
less than five days prior to the tenant taking possession, that
reading may be substituted to establish usage. If the submeter is
manually read, the first bill may be estimated based on the rate
established in subdivision (b) of Section 1954.212.
   (b) For a water-service bill at the end of a tenancy, the submeter
shall be read within five days, if possible. If the submeter cannot
be read within five days at the end of a tenancy, the bill amount for
the final month shall be based on the bill amount for the previous
month.
   (c) The landlord may, at his or her discretion, deduct an unpaid
water service bill from the security deposit during or upon
termination of a tenancy, if the last water service bill showing the
amount due is attached to the documentation required by Section
1950.5.
   1954.208.  Unless it can be documented that a penalty is primarily
the result of a tenant's or tenants' failure to comply with state or
local water use regulations or restrictions, or both, regarding
wasting of water, a landlord shall not charge, recover, or allow to
be charged or recovered, fees incurred by the landlord from the water
purveyors, billing agent, or any other person for any deposit,
disconnection, reconnection, late payment by the landlord, or any
other penalty assessed against the landlord. This section shall not
prevent a landlord from charging a tenant for the tenant's late
payment of any bill.
   1954.209.  The landlord shall maintain and make available in
writing, at the tenant's written or electronic request, within seven
days after the request, the following:
   (a) The date the submeter was last inspected, tested, and
verified, and the date by which it shall be reinspected, tested, and
verified under law, if available. If this information is not
available, the landlord shall disclose that the information is not
available.
   (b) The data used to calculate the tenant's bill, as follows:
   (1) The most recent water bill for the property's master water
meter showing the recurring fixed charge for water service billed to
the property by the water purveyor, and the usage charges for the
property, including any tiered amounts.
   (2) Any other bills for water service, as defined in subdivision
(h) of Section 1954.202, for the property.
   (3) The number of dwelling units in the property used in the last
billing period to calculate the tenant's water service charges.
   (4) If not shown on the bill for the property, the per unit
charges for volumetric water usage, including any tiered amounts.
   (5) The formula used to calculate the charge for the tenant's
volumetric water usage.
   (c) The location of the submeter.
   1954.210.  (a) If a tenant notifies the landlord of, or the
landlord otherwise becomes aware of, a leak, a drip, a water fixture
that does not shut off property, including, but not limited to, a
toilet, a problem with a water-saving device, or other problem with
the water system that causes constant or abnormally high water usage,
or a submeter reading indicates constant or abnormal high water
usage, the landlord shall have the condition investigated, and, if
warranted, rectify the condition.
   (b) A tenant shall not remove any water fixtures or water-saving
devices that have been installed by the landlord.
   (c) If the condition is rectified more than 21 days after the
tenant provides notice to the landlord or the landlord otherwise
becomes aware of a leak, a drip, a water fixture that does not shut
off properly, including, but not limited to, a toilet, a problem with
a water-saving device, or other problem with the water system that
causes constant or abnormally high water usage, or a submeter reading
indicates constant or abnormally high water usage, pursuant to
subdivision (a), the tenant's volumetric usage for any month or
months that include the period between 21 days after the initial
investigation and the repair shall be deemed to be fifteen dollars
($15) or actual usage, whichever is less. At the landlord's option,
if submeter readings are available to determine the usage at a point
prior to investigation and a point following repair, usage shall be
deemed to be fifty cents ($0.50) per day for those days between the
two submeter readings or actual usage, whichever is less.
   (d) If the condition remains unrectified for 180 days after
investigation, no further volumetric usage charges may be imposed
until the condition is repaired.
   (e) If, in order to comply with subdivision (a), the landlord has
provided notice pursuant to Section 1954, and the tenant has failed
to provide access to the dwelling unit, then the charges shall not be
determined pursuant to subdivisions (c) and (d).
   (f) If the local water purveyor notifies the landlord of constant
or abnormally high water usage at the property, the landlord shall
investigate and, if possible, rectify the cause of the high water
usage.
   1954.211.  The landlord may enter a dwelling unit as follows:
   (a) For the purpose of installing, repairing, or replacing a
submeter, or for the purpose of investigating or rectifying a
condition causing constant or abnormally high water usage, as
required by subdivision (a) of Section 1954.210, if the requirements
of Section 1954 are met.
   (b) To read a submeter, if the requirements of this chapter and
Section 1954 are met. Notwithstanding paragraph (3) of subdivision
(d) of Section 1954, notice shall be given only in writing.
   1954.212.  (a) If a monthly submeter reading necessary to measure
volumetric usage is unavailable, and the tenant has provided access
to the submeter, the tenant may be charged 75 percent of the average
amount billed for volumetric usage for the last three months for
which complete billing information is available. The adjustment shall
be disclosed on the bill.
   (b) If no complete billing information is available for the prior
three months, the volumetric usage charge shall be deemed to be fifty
cents ($0.50) per day that the data is not available.
   (c) If monthly submeter readings remain unavailable for more than
six months, the volumetric usage charge shall be deemed to be zero
for any subsequent month that the data is not available.
   1954.213.  (a) A tenant may be charged a late fee for any water
service bill not paid 25 days after mailing or other transmittal of
the bill. If the 25th day falls on a Saturday, Sunday, or holiday,
the late fee shall not be imposed until the day after the first
business day following the 25th day.
   (b) (1) A late fee of up to seven dollars ($7) may be imposed if
any amount of a water service bill remains unpaid after the time
described in subdivision (a). A late fee of up to ten dollars ($10)
may be imposed in each subsequent bill if any amount remains unpaid.
   (2) The total late fee imposed in any 12-month period upon the
amount of a bill that remains unpaid shall not exceed 10 percent of
the unpaid amount, exclusive of the administrative fee imposed
pursuant to paragraph (3) of subdivision (a) of Section 1954.205 and
the late fee imposed pursuant to paragraph (1).
   (3) If any partial payments are made, they shall be credited
against the bill that has been outstanding the longest.
   (c) Notwithstanding subdivision (c) of Section 1954.207, if the
water bill remains unpaid for 180 days after the date upon which it
is due or the amount of the unpaid water bill equals or exceeds two
hundred dollars ($200), the landlord may terminate the tenancy in
accordance with Section 1161 of the Code of Civil Procedure with the
service of a three-day notice to perform the conditions or covenants
or quit upon the tenant.
   (d) Water service charges under this chapter shall not constitute
rent.
   (e) The water service to a dwelling unit shall not be shut off or
otherwise interfered with by the landlord for any reason, including
nonpayment of a bill. Notwithstanding the foregoing, a landlord or
its agent may shut off water service to a dwelling unit or the
property, in order to make repairs, replacements of equipment, or
perform other maintenance at the property.
   1954.214.  This chapter does not preclude or preempt an ordinance
or regulation adopted prior to January 1, 2013, that regulates the
approval of submeter types or the installation, maintenance, reading,
billing, or testing of submeters and associated onsite plumbing.
   1954.215.  The rights or obligations established under this
chapter shall not be waived. Any purported waiver is void.
   1954.216.  (a) This chapter applies to the following:
   (1) All dwelling units offered for rent or rented in a building
where submeters were required to be installed pursuant to a building
standard adopted in accordance with Section 17922.14 of the Health
and Safety Code.
   (2) All dwelling units where submeters are used to charge a tenant
separately for water service.
   (b) Nothing in this chapter shall be construed to apply to any
dwelling units other than those described in subdivision (a).
   (c) Nothing in this chapter shall be construed to apply or create
a public policy or requirement that favors or disfavors the use of a
ratio utility billing system.
   1954.217.  A submetering system that measures only a portion of a
dwelling unit's water usage, including, but not limited to, a system
that measures only hot water usage, shall not be subject to this
chapter if the system was first put in service before January 1,
2018.
   1954.218.  This chapter shall become operative on January 1, 2018.

   1954.219.  Any property that is required to install individual
submeters pursuant to Article 5 (commencing with Section 537) of
Chapter 8 of Division 1 of the Water Code shall at all times be
required to bill residents for water service pursuant to this
chapter.
  SEC. 3.  Section 17922.14 is added to the Health and Safety Code,
to read:
   17922.14.  (a) (1) During the next regularly scheduled triennial
code cycle that commences on or after January 1, 2018, or during a
subsequent code adoption cycle, the department shall develop and
propose for adoption by the California Building Standards Commission,
pursuant to Chapter 4 (commencing with Section 18935) of Part 2.5,
building standards requiring the installation of water meters or
submeters in newly constructed multiunit residential structures or
mixed-use residential and commercial structures, as those terms are
defined in Section 517 of the Water Code. These standards shall
                                       conform to Article 5
(commencing with Section 537) of Chapter 8 of Division 1 of the Water
Code.
   (b) The proposed standards shall require the installation of water
meters or submeters in newly constructed multiunit residential
structures and mixed-use residential and commercial structures only
for residential dwelling units within those structures, but shall not
require installation in units within those structures that are used
only for commercial purposes.
   (c) (1) The department shall determine whether and under what
circumstances the installation of water meters or submeters is
infeasible and include in the building standards proposed in
subdivision (a) the appropriate provision for exemption from this
requirement. The department may consider whether there are any issues
specific to high-rise structures that would require an exemption
from the requirement for the installation of water meters or
submeters.
   (2) The following categories of structures shall be exempt from
the building standards established pursuant to subdivision (a):
   (A) Long-term health care facilities, as defined in Section 1418.
   (B) Low-income housing. For the purposes of this subparagraph,
"low-income housing" means a residential building that is financed
with low-income housing tax credits, tax-exempt mortgage revenue
bonds, general obligation bonds, or federal, state, or local loans or
grants, for which rents charged to lower income households do not
exceed rents prescribed by deed restrictions or regulatory agreements
pursuant to the terms of the financing or financial assistance, and
for which not less than 90 percent of the dwelling units within the
building are designated for occupancy by lower income households. As
used in this subparagraph, "lower income households" has the same
meaning as defined in Section 50079.5.
   (C) Residential care facilities for the elderly, as defined in
subdivision (k) of Section 1569.2.
   (D) Housing at a place of education, as defined in Section 202 of
the California Building Standards Code (Title 24 of the California
Code of Regulations).
   (E) Time-share property, as defined in subdivision (aa) of Section
11212 of the Business and Professions Code.
   (d) Moneys in the Building Standards Administration Special
Revolving Fund established pursuant to Section 18931.7 shall be
available, upon appropriation by the Legislature, for the department'
s administrative costs associated with the development of building
standards in accordance with this section.
  SEC. 4.  Section 517 is added to the Water Code, to read:
   517.  "Submeter" means a device that measures water consumption of
an individual rental unit within a multiunit residential structure
or mixed-use residential and commercial structure, and that is owned
and operated by the owner of the structure or the owner's agent. As
used in this section, "multiunit residential structure" and
"mixed-use residential and commercial structure" mean real property
containing two or more dwelling units.
  SEC. 5.  Article 5 (commencing with Section 537) is added to
Chapter 8 of Division 1 of the Water Code, to read:

      Article 5.  Multiunit Structures


   537.  (a) The structures in all of the following categories shall
be exempt from this article:
   (1) Low-income housing. For purposes of this paragraph,
"low-income housing" means a residential building financed with
low-income housing tax credits, tax-exempt mortgage revenue bonds,
general obligation bonds, or local, state, or federal loans or
grants, for which the rents of the occupants in lower income
households, as defined in Section 50079.5 of the Health and Safety
Code, do not exceed rents prescribed by deed restrictions or
regulatory agreements pursuant to the terms of the financing or
financial assistance, and for which not less than 90 percent of the
dwelling units within the building are designated for occupancy by
lower income households, as defined in Section 50079.5 of the Health
and Safety Code.
   (2) Housing at a place of education, as defined in Section 202 of
the California Building Standards Code (Title 24 of the California
Code of Regulations).
   (3) Long-term health care facilities, as defined in Section 1418
of the Health and Safety Code.
   (4) Time-share property, as defined in subdivision (aa) of Section
11212 of the Business and Professions Code.
   (5) Residential care facilities for the elderly, as defined in
Section 1569.2 of the Health and Safety Code.
   (b) A submeter used to measure water supplied to an individual
residential unit that is required pursuant to this chapter shall be
of a type approved pursuant to Section 12500.5 of the Business and
Professions Code, and shall be installed and operated in compliance
with regulations established pursuant to Section 12107 of the
Business and Professions Code.
   537.1.  (a) Each water purveyor that sells, leases, rents,
furnishes, or delivers water service to a newly constructed multiunit
residential structure or newly constructed mixed-use residential and
commercial structure for which an application for a water
connection, or more than one connection, is submitted after January
1, 2018, shall require a measurement of the quantity of water
supplied to each individual residential dwelling unit as a condition
of new water service. The measurement may be by individual water
meters or submeters.
   (b) Unless the water purveyor or local government is operating
under an ordinance or regulation requiring individual metering, the
owner shall be required to install and read submeters, unless the
water purveyor agrees to install and read individual meters.
   (c) (1) The owner of the structure shall install submeters that
comply with all 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.
   (2) This subdivision does not require a water purveyor to fund or
assume responsibility for ensuring compliance with any law or
regulation governing the approval of submeter types or the
installation, maintenance, reading, billing, and testing of submeters
and associated onsite plumbing.
   (3) Installation of submeters shall be performed by one of the
following:
   (A) A contractor licensed by the Contractors' State License Board
who employs at least one journey person who has graduated from a
state-approved apprenticeship program.
   (B) A registered service agency that has registered with the
Department of Food and Agriculture.
   (d) A water purveyor shall not impose an additional capacity or
connection fee or charge for a submeter that is installed by the
owner, or his or her agent.
   (e) This section shall remain operative until the date on which
the California Building Standards Commission includes standards in
the California Building Standards Code that conform to this article.
   537.2.  (a) A final occupancy permit for a building shall not be
denied by a local building official if water submeters or meters have
not been installed for each residential unit as required by this
chapter if the building owner can demonstrate either of the
following:
   (1) Water submeters have been ordered and were delayed by the
manufacturer.
   (2) Water submeters for the building were submitted to a county
sealer and are awaiting approval for use.
   (b) After issuance of the occupancy permit, the owner shall
demonstrate that the submeters are installed in the building within
120 days of approval by the county sealer.
   537.3.  (a) This article does not preclude or preempt an ordinance
or regulation that regulates the approval of submeter types or the
installation, maintenance, reading, billing, or testing of submeters
and associated onsite plumbing if the ordinance or regulation was
adopted prior to January 1, 2013.
   (b) It is the intent of the Legislature to preclude the adoption,
and preempt the operation, of an ordinance or regulation adopted
after January 1, 2013, that regulates the types of approved
submeters, their installation, maintenance, reading, billing, and
testing, and associated onsite plumbing.
   (c) This article does not restrict the existing authority of a
water purveyor, city, county, city and county, or other local agency
to adopt and implement a program to promote water conservation that
includes the installation of water meters and submeters, as required
pursuant to subdivision (a) of Section 537.1, if the program is at
least as stringent as the requirements of this article.
   537.4.  It is the intent of the Legislature that this article
should not be construed to impose costs on any local government
agency, except to the extent that the local government agency is a
water purveyor.
   537.5.  This article shall become operative on January 1, 2018.