BILL NUMBER: SB 814	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 6, 2016
	AMENDED IN SENATE  MARCH 30, 2016
	AMENDED IN SENATE  MARCH 17, 2016

INTRODUCED BY   Senator Hill

                        JANUARY 4, 2016

   An act to add Chapter 3.3 (commencing with Section 365) to
Division 1 of the Water Code, relating to water.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 814, as amended, Hill. Drought: excessive water use: urban
retail water suppliers.
   The California Constitution declares the policy that the water
resources of the state be put to beneficial use to the fullest extent
of which they are capable, that the waste or unreasonable use or
unreasonable method of use of water be prevented, and that the
conservation of such waters is to be exercised with a view to the
reasonable and beneficial use of the waters in the interest of the
people and for the public welfare. Existing law requires the
Department of Water Resources and the State Water Resources Control
Board to take all appropriate proceedings or actions to prevent
waste, unreasonable use, unreasonable method of use, or unreasonable
method of diversion of water in this state. Existing law authorizes
any public entity, as defined, that supplies water at retail or
wholesale for the benefit of persons within the service area or area
of jurisdiction of the public entity to, by ordinance or resolution,
adopt and enforce a water conservation program to reduce the quantity
of water used for the purpose of conserving the water supplies of
the public entity. Existing law provides that a violation of a
requirement of a water conservation program is a misdemeanor
punishable by imprisonment in a county jail for not more than 30
days, or by a fine not exceeding $1,000, or both.
   This bill would declare that excessive water use  during a
state of emergency based on drought conditions  by a
residential customer, as specified, is  prohibited. 
 prohibited, if during a period when certain conditions exist,
as prescribed.  This bill would require each urban retail water
supplier to establish a method to identify and  restrict
  discourage  excessive water use. This bill would
authorize as a method to identify and  restrict 
 discourage  excessive water use the establishment of a rate
structure that includes block tiers, water budgets, 
penalties for prohibited uses,  or rate surcharges over and
above base rates for excessive water use by residential customers.
This bill would authorize as a method to identify and 
restrict   discourage  excessive water use the
establishment of an excessive water use ordinance, rule, or tariff
condition that includes a definition of  or procedure to identify
and address  excessive water use, as prescribed, and would make
a violation of this excessive water use ordinance, rule, or tariff
condition an  infraction punishable by a fine of at least
$500 per 100 cubic feet of water or per 748 gallons used above the
excessive water use threshold established by the urban retail water
supplier in a billing cycle.   infraction or
administrative civil penalty and would authorize the penalty for a
violation to be based on conditions identified by the urban retail
water supplier.  By creating a new infraction, this bill would
impose a state-mandated local program. 
   This bill would provide that these provisions apply only during a
period for which the Governor has issued a proclamation of a state of
emergency based on drought conditions. 
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


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

  SECTION 1.  Chapter 3.3 (commencing with Section 365) is added to
Division 1 of the Water Code, to read:
      CHAPTER 3.3.  EXCESSIVE RESIDENTIAL WATER USE DURING DROUGHT


   365.  (a) The Legislature finds and declares that this chapter
furthers important state policies of encouraging water conservation
and protecting water resources in the interest of the people and for
the public welfare.
   (b) For the purposes of this chapter, "urban retail water supplier"
has the same meaning as provided in Section 10608.12.
   366.  (a) Excessive water use during  a state of emergency
based on drought conditions   periods described in
Section 367  by a residential customer in a single-family
residence or by a customer in a multiunit housing complex in which
each unit is individually metered or submetered by the  urban
retail  water supplier is prohibited.
   (b) Each urban retail water supplier shall establish a method to
identify and  restrict   discourage 
excessive water use, through one of the following options:
   (1) Establishing a rate  structure  
structure, subject to applicable constitutional and statutory
limitations,  that includes block tiers, water budgets, 
penalties for prohibited uses,  or rate surcharges over and
above base rates for excessive water use by a residential water
customer.
   (2) (A) Establishing an excessive water use ordinance, rule, or
tariff condition, or amending an existing ordinance, rule, or tariff
condition, that includes a definition of  or a procedure to
identify and address  excessive water use by  metered 
single-family residential customers and customers in multiunit
housing complexes in which each unit is individually metered or
submetered and may include a process to issue written warnings to a
customer and perform a site audit of customer water usage prior to
deeming the customer in violation. Excessive water use shall be
measured in terms of either gallons or hundreds of cubic feet of
water used during the urban retail water supplier's regular billing
cycle. In establishing the definition of excessive use, the 
urban retail  water supplier may consider factors that include,
but are not limited to, all of the following:
   (i) Average daily use.
   (ii) Full-time occupancy of households.
   (iii) Amount of landscaped land on a property.
   (iv) Rate of evapotranspiration.
   (v) Seasonal weather changes.
   (B) A violation of an excessive use ordinance, rule, or tariff
condition established pursuant to subparagraph (A)  is
  shall result in  an infraction 
punishable by   or administrative civil penalty. The
penalty for a violation may be based on conditions identified by the
urban retail water supplier and may   include, but is not
limited to,  a fine of up to five hundred dollars ($500)
 per   for each  hundred cubic feet of
water, or  per  748 gallons, used above the
excessive water use threshold established by the urban retail water
supplier in a billing cycle. Any fine imposed pursuant to this
subparagraph shall be added to the customer's water bill and is due
and payable with that water bill. Each urban retail water supplier
shall have a process for nonpayment of the fine, which shall be
consistent with  due process and reasonably similar to  the
water supplier's existing process for nonpayment of a water bill.

   (C) A violation of an excessive water use ordinance, rule, or
tariff condition where a demonstrable water leak at the residence
occurred and a repair to eliminate that leak is underway shall be
considered as a basis for granting an appeal and shall be considered
for waiver of the charges consistent with the urban retail water
supplier's excessive water use ordinance and existing policies for
leak adjustments. Other reasonable justifications for excessive water
use shall be considered by the urban retail water supplier
consistent with clause (i) of subparagraph (D).  
   (D) 
    (   C)  (i)  An  
Consistent with due process, an  urban retail water supplier
shall establish a process  and conditions  for the appeal of
a fine imposed pursuant to subparagraph (B) whereby the customer may
contest the imposition of the fine for excessive water use.
   (ii) As part of the appeal process, the customer shall be provided
with an opportunity to provide evidence of a bona fide reason for
the excessive water use, including evidence of a water  leak
in accordance with subparagraph (C),   leak,  a
medical reason, or any other reasonable justification for the water
use, as determined by the urban retail water supplier. 
   (c) (1) The provisions of subdivision (b) do not apply to an urban
retail water supplier that is not fully metered in accordance with
Section 527. An urban retail water supply shall comply with the
provisions of subdivision (b) when all of the water supplier's
residential water service connections are being billed based on
metered water usage.  
   (2) An urban retail water supplier that is not fully metered shall
prohibit water use practices by an ordinance, resolution, rule, or
tariff condition that imposes penalties for prohibited uses of water
supplied by the water supplier. The urban retail water supplier may
include a process to issue written warnings prior to imposing
penalties as well as increased penalty amounts for successive
violations. 
   367.   (a)    This chapter applies only 
during   as follows: 
    (1)     During  a period for which the
Governor has issued a proclamation of a state of emergency under the
California Emergency Services Act (Chapter 7 (commencing with
Section 8550) of Division 1 of Title 2 of the Government Code) based
on  drought conditions.   statewide drought
conditions   to an urban retail water supplier that has
moved to a stage of action in response to a local water supply
shortage condition under the water supplier's contingency plan
pursuant to paragraph (1) of subdivision (a) of Section 10632 that
requires mandatory water use reductions.  
   (2) To an urban retail water supplier during a period in which the
water supplier has moved to a stage of action in response to a local
water supply shortage condition under the water supplier's
contingency plan pursuant to paragraph (1) of subdivision (a) of
Section 10632 that requires mandatory water use reductions. 

   (3) To an urban retail water supplier affected during a period for
which the Governor has issued a proclamation of a state of emergency
under the California Emergency Services Act (Chapter 7 (commencing
with Section 8550) of Division 1 of Title 2 of the Government Code)
based on local drought conditions.  
   (b) The provisions of this chapter are in addition to, and do not
supersede or limit, any other measures or remedies implemented by an
urban retail water supplier. 
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.