BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 744
                                                                  Page  1

          SENATE THIRD READING
          SB 744 (Wyland)
          As Amended  August 21, 2012
          Majority vote

           SENATE VOTE  :28-8  
           
           BUSINESS & PROFESSIONS     6-0  APPROPRIATIONS      16-0        
           
           ----------------------------------------------------------------- 
          |Ayes:|Hayashi, Bill Berryhill,  |Ayes:|Fuentes, Harkey,          |
          |     |Eng,                      |     |Blumenfield, Bradford,    |
          |     |Hagman, Hill, Smyth       |     |Charles Calderon, Campos, |
          |     |                          |     |Davis, Donnelly, Gatto,   |
          |     |                          |     |Hall, Hill, Mitchell,     |
          |     |                          |     |Nielsen, Norby, Solorio,  |
          |     |                          |     |Wagner                    |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Exempts water submeters from testing and approval by 
          the county sealer prior to installation if tested, as specified. 
           Specifically,  this bill  :   

          1)Deems any water submeter tested by equipment that is regularly 
            calibrated by tests that are directly traceable to standards 
            promulgated by the National Institute of Standards and 
            Technology (NIST) to be tested, sealed, and approved for 
            commercial use, if all of the following conditions are met: 

             a)   The submeter complies with the accuracy tolerance for 
               submeters as published in the NIST Handbook 44 (NIST 
               Handbook); 

             b)   The submeter is a type approved by the Division of 
               Measurement Standards (DMS); and, 

             c)   The identity of the entity that performed the test and 
               the test results are attached to the submeter.

          2)Deems that no water submeter shall be considered to have been 
            put unlawfully into service prior to its installation if the 
            water submeter is to be used in a multiunit residential 
            structure. 









                                                                  SB 744
                                                                  Page  2

          3)Requires water submeter manufacturers, or the licensed service 
            agent responsible for the installation of water submeters, to 
            notify the county sealer of when water submeters are installed 
            or placed into service, or otherwise be subject to a civil 
            penalty up to $1,000.

          4)States that an individual installing or possessing a water 
            submeter and compliant with this bill shall not be guilty of a 
            misdemeanor unless there is a knowing and willful intent to 
            use an inaccurate or incorrect water submeter. 

          5)States that an owner complying with this bill shall not be 
            liable for any penalty or fine pursuant to this bill. 

          6)Clarifies that a public entity may adopt and enforce an 
            ordinance, rule, regulation, or policy that is consistent with 
            this bill. 

          
          7)Authorizes a county sealer to test a water submeter at an 
            owner's request, a resident's written request, or periodically 
            at its discretion.  If the county sealer determines the water 
            submeter is incorrect, the owner shall do both of the 
            following: 

             a)   Replace the water submeter with a compliant one within a 
               reasonable time if one is available; and, 

             b)   Notify the tenant in writing, within 21 days, of the 
               date that the water submeter was removed and replaced. 

          8)Sunsets these provisions on January 1, 2016. 

           EXISTING LAW  : 

          1)Establishes DMS within the California Department of Food and 
            Agriculture (DFA) to establish tolerances, specifications, and 
            other technical requirements for commercial weighing and 
            measuring. 

          2)Provides for the licensure and regulation of county sealers by 
            DFA. 

          3)Requires DFA to adopt the latest standards recommended by the 
            National Conference on Weights and Measures published in the 








                                                                  SB 744
                                                                  Page  3

            NIST Handbook, unless otherwise amended or rejected by 
            regulation by DFA. 

          4)Authorizes DFA to issue rules and regulations that provide for 
            the submission of types or designs of weights and measures, or 
            weighing, measuring, or counting instruments or devices used 
            for commercial purposes.  Requires DFA to issue certificates 
            of approval for types or designs meeting those tolerances and 
            specifications. 

          5)Requires every person who uses, or intends to use, any weight 
            or measure, or weighing or measuring instrument for commercial 
            purposes, to have those instruments sealed by a sealer, unless 
            they are sealed prior to sale and used as specified.

          6)Requires that any weighing or measuring instrument that 
            requires assembly or setup after sale and before use, may be 
            sold without first being tested and sealed, but shall be 
            tested and sealed before use. 

          7)Makes it unlawful for any person to violate DFA's regulations, 
            tolerances, specifications, and standards.

          8)Makes it unlawful to commercially sell or use any weight, 
            measure, or weighing, measuring, or counting instrument or 
            device not first approved by DFA, unless otherwise exempted. 

           FISCAL EFFECT  :  According to the Senate Appropriations 
          Committee, there are no significant costs associated with this 
          legislation and the DMS under the DFA does not anticipate a loss 
          in revenue.

           COMMENTS  :  According to the author, "This bill is designed to 
          ensure an adequate supply of submeters in California for 
          installation and use in rental housing, particularly newly 
          constructed rental housing.  Submeters have been found to be the 
          most effective means of measuring water use in rental housing 
          and thereby promoting increased water conservation.  
          Specifically, the bill attempts to address obstacles and 
          impediments faced by submeter manufacturers attempting to get 
          their products approved for use in California."

          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 








                                                                  SB 744
                                                                  Page  4

          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 DMS under DFA in collaboration with the local 
          sealer of weights and measures.  There are approximately 200,000 
          to 400,000 water submeters in the state.  

          In order for a manufacturer to sell and install a water submeter 
          in California, current law requires DMS to test a type or design 
          of a water submeter for approval, then subsequently requires a 
          local sealer to test a sample of DMS-approved water submeters 
          prior to installation in counties. 


           Analysis Prepared by  :    Joanna Gin / B.,P. & C.P. / (916) 
          319-3301 


                                                                FN: 0005216