BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 744
                                                                  Page  1

          Date of Hearing:   August 17, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                    SB 744 (Wyland) - As Amended:  July 13, 2011 

          Policy Committee:                              Business and 
          Professions  Vote:                            6 - 0 

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              

           SUMMARY  

          This bill exempts water submeters from testing and approval by 
          the county sealer prior to installation if the equipment is 
          tested and meets standards established by the National Institute 
          of Standards and Technology.  The provisions of this bill sunset 
          on January 1, 2015. 

           FISCAL EFFECT  

          There are no significant costs associated with this legislation 
          and the Division of Measurement Standards (DMS) under the 
          California Department of Food and Agriculture (CDFA) does not 
          anticipate a loss in revenue.

           COMMENTS  

           1)Purpose of this bill  .  The intent of this bill is to ensure an 
            adequate supply of submeters in California for installation 
            and use in rental housing, particularly newly constructed 
            rental housing.  The author argues that submeters have been 
            found to be the most effective means of measuring water use in 
            rental housing and thereby promoting increased water 
            conservation.  

            The author contends that it is difficult for submeter 
            manufacturers to get their products approved for use in 
            California because all meters must be tested by county 
            officials before installation.  The author argues that 
            inconsistencies in the state's testing and approval process, 
            coupled with possible attendant criminal liability have caused 
            manufacturers to cease shipping their products to the state.  








                                                                  SB 744
                                                                  Page  2

            This bill removes the requirement that submeters be tested by 
            county sealers and the criminal liability associated with 
            installing submeters that have not been tested by county 
            sealers.

           2)Background  .  Water submeters are commercially utilized by 
            landlords in rental units, including apartment complexes, 
            mobile home parks, and marinas to allow each tenant to receive 
            a separate utility reading and be billed separately for water 
            consumption.  While residential and commercial water, 
            electric, and gas meters are regulated by the Public Utilities 
            Commission, water submeters are regulated by the Division of 
            Measurement Standards (DMS) under the California Department of 
            Food and Agriculture (CDFA) in collaboration with the local 
            sealer of weights and measures.  There are approximately 
            200,000 to 400,000 water submeters in the state.  

           3)Opposition  . In opposition to the bill, the County of Ventura 
            notes that this bill would bypass DMS protections and permit 
            manufacturers to self-test their meters and allow the meters 
            to be placed directly into service.  These meters would then 
            be used to calculate monthly water bills for any resident of a 
            multi-family residence. Alameda County and CDFA have expressed 
            similar concerns and also oppose this bill. 

           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916) 
          319-2081