BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          SB 7 (Wolk) - Housing:  water meters:  multiunit structures
          
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          |Version: December 1, 2014       |Policy Vote: T. & H. 11 - 0     |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: April 27, 2015    |Consultant: Mark McKenzie       |
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          This bill does not meet the criteria for referral to the  
          Suspense File.







          Bill  
          Summary:  SB 7 would authorize the Department of Housing and  
          Community Development (HCD) to develop a building standard  
          requiring the installation of water submeters in multiunit  
          residential buildings for adoption by the Building Standards  
          Commission (BSC), as specified.


          Fiscal  
          Impact:  
           HCD administrative costs of $244,000 over two years ($127,000  
            in the first year, $114,000 in the second year) for 1 limited  
            term PY of staff to develop the proposed building standards  
            (Building Standards Administration Special Revolving Fund).







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           Minor and absorbable costs for the BSC to adopt the proposed  
            building standard in the next or subsequent triennial code  
            adoption cycle.


          Background:  Existing law, the California Building Standards Law,  
          authorizes the BSC to approve and adopt building standards  
          through a triennial rulemaking process to revise and update the  
          California Building Standards Code.  There are approximately  
          twenty state agencies that develop building standards for  
          submittal to the BSC for review, approval, and adoption.  HCD is  
          responsible for proposing building standards for residential  
          buildings including, hotels, motels, lodging houses, apartment  
          houses, dwellings, buildings and structures.  Building standards  
          take effect 180 days after they are published, unless a  
          different date is specified.  The most recent update to the  
          Building Standards Code has been in effect since January 1,  
          2014.  The 2015 triennial code adoption cycle for the  
          development of the 2016 California Building Standards Code is  
          currently underway.  The subsequent triennial cycle will  
          commence in 2018.
          Existing law requires all new water service connections to be  
          metered, and requires water purveyors to charge water users  
          based on the actual volume of deliveries as measured by those  
          meters.  In addition, all existing unmetered water connections  
          must be retrofitted with a meter by 2025.  Generally, individual  
          units in multiunit residential buildings are not metered or  
          submetered, and residents typically pay for water and sewage  
          based on the average water use of all units, rather than actual  
          usage attributable to individual units.




          Proposed Law:  
            SB 7 would authorize HCD to develop building standards  
          requiring the installation of water submeters in multiunit  
          residential buildings.  Specifically, this bill would:
           Authorize HCD to develop those building standards during the  
            next triennial code cycle that commences after January 1,  
            2016, or during a subsequent code adoption cycle, and to  
            propose those standards for adoption by the BSC.  









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           Require HCD to determine whether there are circumstances in  
            which the installation of water submeters are infeasible and  
            to provide for any appropriate exemptions in the proposed  
            building standards.  


           Authorize HCD to consider whether there are issues specific to  
            high-rise multifamily buildings that warrant an exemption to  
            the standards.


           Authorize HCD's administrative costs to develop the building  
            standards to be paid from the Building Standards  
            Administration Special Revolving Fund, upon appropriation by  
            the Legislature.  




          Related  
          Legislation:  There have been numerous bills in past legislative  
          sessions addressing issues related to metering and submetering  
          water service in multiunit structures, none of which has been  
          approved by the Legislature.  The following are among the most  
          recent bills pertaining to this topic:
          SB 750 (Wolk), which failed passage in the Assembly Water,  
          Parks, and Wildlife Committee in 2014, would have required the  
          installation of water submeters in multiunit structures, with  
          specified exceptions.  The bill also imposed certain  
          requirements on landlords pertaining to billing for water usage  
          and contained tenant protections.  


          SB 411 (Wolk) was amended on the Assembly Floor on August 22,  
          2014 to delete the previous contents and insert the provisions  
          of SB 750; the bill was subsequently referred to the Assembly  
          Rules Committee.  In addition to the previous contents of SB  
          750, SB 411 included all of the provisions contained in this  
          bill that authorize HCD to adopt a building standard requiring  
          the installation of water submeters in multiunit structures.


          AB 19 (Fong), which failed passage in the Assembly Housing and  








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          Community Development Committee in 2011, would have required the  
          installation of water submeters in multiunit structures, with  
          specified exceptions.  The bill also prescribed various duties  
          and responsibilities on landlords and tenants regarding billing,  
          among other things.




          Staff  
          Comments:  This bill is intended to encourage increased water  
          conservation.  To the extent water submeters are installed on  
          multiunit residential buildings, and billing is based upon  
          actual water usage, residents would be more aware of consumption  
          and there would be an incentive to use less.
          SB 7 provides permissive authority for HCD to develop building  
          standards that would require the installation of water submeters  
          in multiunit residential buildings during a future triennial  
          code adoption cycle.  HCD would incur administrative costs of  
          approximately $244,000 over two years, to the extent the  
          department develops the building standards.


          The author has convened a stakeholder group in an attempt to  
          reach consensus on a number of issues related to the  
          installation of water submeters in multiunit residential  
          buildings.  Ultimately, this bill could serve as the vehicle to  
          address billing matters, consumer protections for both tenants  
          and landlords, installation and calibration issues, feasibility  
          concerns, potential exemptions from submetering requirements,  
          and other matters. 


          Staff notes that the bill adds identical definitions of the term  
          "submeter" in both the Civil Code and the Water Code, and the  
          current provisions pertaining to the adoption of building  
          standards only refer to the new definition in the Water Code.   
          Similar to SB 411 (Wolk, 2014), the author intends for any  
          future amendments to the bill related to billing and consumer  
          protections for water usage measured by a submeter to be placed  
          in the Civil Code. 











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