BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 744|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
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                                 THIRD READING


          Bill No:  SB 744
          Author:   Wyland (R)
          Amended:  5/3/11
          Vote:     21

           
           SENATE BUS., PROF. & ECON. DEVEL. COMMITTEE  :  9-0, 4/25/11
          AYES:  Price, Emmerson, Corbett, Correa, Hernandez, Negrete 
            McLeod, Vargas, Walters, Wyland

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8


           SUBJECT  :    Water submeters:  testing

           SOURCE  :     Utility Conservation Coalition


           DIGEST :    This bill provides, until January 1, 2015, that 
          a water submeter is not considered "placed in service," 
          prior to its installation, if the water submeter is to be 
          used in a multiunit residential structure, and provides 
          that any water submeter tested by a regularly-calibrated 
          test bench shall be deemed to be sealed and approved for 
          commercial use, as specified.

           ANALYSIS  :    

           Existing law  :

          1. Provides that the Division of Measurement Standards 
             (DMS) within the Department of Food and Agriculture 
             (DFA) has general enforcement supervision of the laws 
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             relating to weights and measures and measuring devices, 
             and provides for the enforcement of those laws and the 
             inspection and testing of measuring devices in each 
             county by the county sealer.

          2. Requires that a person who uses, or intends to use, any 
             weight or measure, or weighing or measuring device for 
             commercial purposes, shall cause that device to be 
             sealed by a sealer before use, unless it has been sealed 
             before sale, in which case the purchaser may use it for 
             the period authorized for its use. 

          3. Defines, for purposes of weighing and measuring devices, 
             the term "placed in service" to mean to permit the use 
             of a device that has been tested and found to be 
             correct, as specified, or to submit a device to a sealer 
             for verification prior to installation. 

          4. Provides that a device may only be placed in service by 
             a sealer or a service agency that repairs a commercial 
             device.

          5. Makes it a misdemeanor for any person to do certain acts 
             in violation of the weights and measures law, including 
             use, for commercial purposes, or retain in his or her 
             possession an incorrect weight or measure or weighing or 
             measuring instrument. 

          This bill:

          1. Provides that a water submeter is not considered "placed 
             in service," prior to its installation, if the water 
             submeter is to be used in a multiunit residential 
             structure. 

          2. Provides that any water submeter tested by a test bench 
             that is regularly calibrated by a cross-check measure 
             shall be deemed to be sealed and approved for commercial 
             use, as specified, provided that the submeter satisfies 
             certain criteria, including that the submeter is 
             otherwise a type approved by the DMS.

          3. Makes related conforming changes.


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          4.  Sunsets the provisions of the bill on January 1, 2015.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No

           SUPPORT  :   (Verified  5/16/11)

          Utility Conservation Coalition (source) 
          Apartment Association of Greater Los Angeles
          Badger Meter
          Association of California Water Agencies
          California Apartment Association
          California Building Industry Association 
          California Business Properties Association
          Inovonics Corp.
          Master Meter
          San Diego County Apartment Association
          Santa Barbara Rental Property Association

           OPPOSITION  :    (Verified  5/16/11)

          California Agricultural Commissioners and Sealers 
          Association
          California State Association of Counties
          County of Sonoma

           ARGUMENTS IN SUPPORT  :    The sponsor of this bill, Utility 
          Conservation Coalition states that outdated regulations and 
          policies are discouraging producers and suppliers of water 
          submeters from marketing their products to California and 
          property owners are discouraged from submetering their 
          properties.  Meanwhile, in states like Texas and Georgia, 
          which boast simpler, more streamlined testing and 
          certification procedures submeters are plentiful and 
          affordable, and efforts there to broaden their use and 
          installation are succeeding with industry support.

          The Association of California Water Agencies (ACWA) 
          supports a uniform testing process for water submeters in 
          hopes that such standards increase the number of submeters 
          available in the California market to implement the 
          requirement to conserve water.  ACWA also believes that the 
          increased availability of submeters could reduce the price 
          that is being paid for the devices.  

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           ARGUMENTS IN OPPOSITION  :    The California Agricultural 
          Commissioners and Sealers Association (CACASA) opposes the 
          bill, arguing that the "carve-out for a singular type of 
          device and category of manufacturer presents an 
          unacceptable risk to the longstanding assurances of 
          integrity, quality, and accuracy that weights and measures 
          laws and regulations provide to the marketplace, protecting 
          consumers and manufacturers, alike."  CACASA states the 
          bill does not define "water submeter," does not establish 
          standards for a "test bench," and does not give quality or 
          accurate standards for a "cross-check measure."

          According to CACASA, the bill removes the requirement that 
          only a licensed sealer can test and place into commercial 
          service a weighing, measuring or counting device.  This 
          would remove the impartiality of the sealer, according to 
          CACASA, in testing and sealing the device, since sealers 
          are prohibited by law from having any direct or indirect 
          interest in the sale, adjusting or repairing of any 
          weighing, measuring or counting device.  CACASA is also 
          concerned that the bill does not require any notification 
          to the county sealer that a water submeter is placed into 
          service; an existing requirement to monitor the quality and 
          accuracy work to ensure that consumers are protected from 
          faulty installations.


          JJA:do  5/17/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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