BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 744|
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                              UNFINISHED BUSINESS


          Bill No:  SB 744
          Author:   Wyland (R)
          Amended:  8/21/12
          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

           SENATE FLOOR  :  28-8, 5/31/11
          AYES:  Alquist, Anderson, Blakeslee, Calderon, Correa, De 
            Le�n, Dutton, Emmerson, Fuller, Gaines, Harman, 
            Hernandez, Huff, Kehoe, Lieu, Lowenthal, Negrete McLeod, 
            Padilla, Price, Runner, Simitian, Steinberg, Strickland, 
            Vargas, Walters, Wright, Wyland, Yee
          NOES:  Corbett, DeSaulnier, Evans, Hancock, Leno, Liu, 
            Pavley, Wolk
          NO VOTE RECORDED:  Berryhill, Cannella, La Malfa, Rubio

           ASSEMBLY FLOOR  :  43-27, 8/23/12 - See last page for vote


           SUBJECT  :    Water submeters:  testing

           SOURCE  :     Utility Conservation Coalition


           DIGEST  :    This bill, until January 1, 2016, deems any 
          water submeter tested by equipment that is regularly 
          calibrated by tests that are directly traceable to 
                                                           CONTINUED





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          standards promulgated by the National Institute of 
          Standards and Technology (NIST) to be tested, sealed, and 
          approved for commercial use, if specified conditions are 
          met.

           Assembly Amendments  (1) require manufacturers of submeters 
          and licensed service agents to notify the county sealer of 
          water submeters at the time a meter is installed or 
          otherwise placed in service and provide that a failure to 
          do so shall only be punishable by a civil penalty of not 
          more than $1,000, as provided; (2) revise the submeter 
          testing requirement to provide a submeter which is tested 
          by equipment which is regularly calibrated by tests that 
          are directly traceable to standards promulgated by the NIST 
          shall be deemed to be tested and sealed and approved for 
          use; (3) provide that any person installing or possessing a 
          water submeter that complies with the provisions of this 
          bill will not be guilty of a misdemeanor unless there is a 
          knowing and willful intent to use an incorrect or 
          inaccurate water submeter; (4)  authorize a county sealer 
          to test a water submeter, as provided, require an incorrect 
          water submeter to be replaced with a compliant one within a 
          reasonable period of time if one is available; and (5) 
          extend the sunset from January 1, 2015 to January 1, 2016.

           ANALYSIS  :    

          Existing law:

          1. Provides that the Division of Measurement Standards 
             (DMS) within the Department of Food and Agriculture has 
             general enforcement supervision of the laws 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. 








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          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. Deems any water submeter tested by equipment that is 
             regularly calibrated by tests that are directly 
             traceable to standards promulgated by the 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 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. 

          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 







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             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.

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

           SUPPORT :   (Verified  8/23/12)

          Utility Conservation Coalition (source) 
          American Utility Management 
          Apartment Association of Greater Los Angeles
          Apartment Investment and Management Company 
          Association of California Water Agencies
          Badger Meter, Inc. 
          California Apartment Association







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          California Building Industry Association
          California Business Properties Association
          Castaic Lake Water Agency
          Essex Property Trust
          Green Plumbers
          Home Builders Association of Tulare and Kern County
          Inovonics Corp. 
          Master Meter 
          Ocius LLC
          Pinnacle Family of Companies
          R&V Management Corporation 
          San Diego County Apartment Association 
          San Diego East County Chamber of Commerce
          Santa Barbara Rental Property Association
          Santa Clarita Valley Chamber of Commerce
          United Chamber of Commerce San Fernando Valley and Region
          Wasatch Property Management

           OPPOSITION  :    (Verified  8/23/12)

          California Agricultural Commissioners and Sealers 
          Association 
          California State Association of Counties
          Contra Costa County Board of Supervisors
          Counties of Del Norte, Fresno, Kern, Los Angeles, Placer, 
            Sacramento, San Diego, San Mateo, Santa Clara, Santa 
            Cruz, Stanislaus, and Ventura
          Kings County Board of Supervisors
          Los Angeles County District Attorney's
          Mendocino County Board of Supervisors
          Mendocino County Sealer of Weights and Measures
          Merced County Board of Supervisors
          Regional Council of Rural Counties
          San Luis Obispo County Board of Supervisors
          San Mateo County Board of Supervisors
          Service Employees International Union  
          Shasta County Board of Supervisors 
          Sierra Club
          Solano County Board of Supervisors
          Sonoma County Board of Supervisors 
          Sutter County Board of Supervisors
          Tulare County Board of Supervisors 
          Western Center on Law & Poverty








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           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.  

           ARGUMENTS IN OPPOSITION  :    The Sierra Club states in 
          opposition, "SB 744 will  NOT  result in greater water 
          conservation in California.  There is no requirement in SB 
          744 that the residents that receive water delivered through 
          and measured by these submeters will be charged on a 
          volumetric basis.  Water metering and volumetric pricing 
          are paramount to giving Californians an accurate price 
          signal regarding their water use. Water savings will not 
          result from the use of these submeters if the water 
          measured and delivered is not priced according to the 
          volume each residence uses.

          "Furthermore, if SB 744 passes, meters will be installed 
          without guarantee that they're accurate.  There will be no 
          assurance that the reading on the meter will accurately 
          reflect the amount of water that is passing through it, and 
          the bills being paid by residents may or may not reflect 
          how much water was actually used."


           ASSEMBLY FLOOR  :  43-27, 8/23/12
          AYES:  Atkins, Bill Berryhill, Block, Blumenfield, 
            Bradford, Buchanan, Charles Calderon, Campos, Cedillo, 
            Donnelly, Eng, Fletcher, Fuentes, Beth Gaines, Galgiani, 
            Garrick, Gatto, Gorell, Hagman, Hall, Harkey, Hayashi, 







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            Hill, Huber, Jeffries, Jones, Knight, Lara, Ma, Mansoor, 
            Mendoza, Miller, Morrell, Nestande, Norby, Olsen, Perea, 
            Silva, Smyth, Solorio, Torres, Wagner, John A. P�rez
          NOES:  Achadjian, Alejo, Allen, Ammiano, Bonilla, Brownley, 
            Butler, Carter, Conway, Feuer, Fong, Gordon, Grove, 
            Hueso, Huffman, Logue, Bonnie Lowenthal, Monning, 
            Nielsen, Pan, V. Manuel P�rez, Portantino, Swanson, 
            Valadao, Wieckowski, Williams, Yamada
          NO VOTE RECORDED:  Beall, Chesbro, Cook, Davis, Dickinson, 
            Furutani, Halderman, Roger Hern�ndez, Mitchell, Skinner


          JJA:d  8/25/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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