AB 1983, as introduced, Gray. Water meters: multiunit structures.
The Water Measurement Law requires every water purveyor to require, as a condition of new water service on and after January 1, 1992, the installation of a water meter to measure water service. That law also requires urban water suppliers to install water meters on specified service connections, and to charge water users based on the actual volume of deliveries as measured by those water meters in accordance with a certain timetable.
Existing law generally regulates the hiring of dwelling units, and among other things, imposes certain requirements on landlords and tenants. Among these requirements, existing law requires landlords to provide tenants with certain notices or disclosures pertaining to, among other things, pest control and gas meters. On or before January 1, 2019, existing law requires all noncompliant plumbing fixtures in any multifamily residential real property, as defined, to be replaced with water-conserving plumbing fixtures.
This bill would authorize the owner or operator of a building containing residential units to install equipment to determine or use an economic allocation methodology to approximate the quantity of water that is provided to the tenants and used in the common areas of that building. The bill would also authorize the owner or operator of a building to charge tenants separately for water and wastewater service based on usage as determined through the use of that equipment or allocation methodology if certain requirements are met, including that the owner or operator disclose certain information to the tenants as part of any contractual leasing agreement.
The bill would require all new multiunit residential buildings permitted on or after January 1, 2015, to be constructed in a manner to permit measurement by a county, municipal, or other public water system or the owner or operator of water use by each unit and to have installed separate submeters for each unit. The bill would require an owner or operator of a building subject to that construction requirement to seek reimbursement for water usage by the units based on a specified economic allocation methodology.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Chapter 2.4 (commencing with Section 1954.12)
2is added to Title 5 of Part 4 of Division 3 of the Civil Code, to
3read:
4
(a) Except as otherwise provided in subdivision (c),
8the owner or operator of a building containing residential units
9may install equipment to determine or use an economic allocation
10methodology to approximate the quantity of water that is provided
11to the tenants and used in the common areas of that building, and
12the owner of that building may charge tenants separately for water
13and wastewater service based on usage as determined through the
14use of such equipment or allocation methodology.
15(b) (1) Except as otherwise provided in subdivision (c), the
16owner or operator of a building containing residential units may
17charge tenants separately for water and wastewater service,
18provided that the total amount of the charges to
the tenants for
19water and wastewater service shall not exceed the total charges
20and fees paid by the owner or operator to the utility company or
21municipality providing the water and wastewater service plus
P3 1actual fees paid to a third-party billing service provider for
2establishing, servicing, processing payments, and billing such
3tenants.
4(2) The third-party service provider fees and the submetering
5methodology or economic allocation methodology shall be
6disclosed to the tenants as part of any contractual leasing
7agreement.
8(c) All new multiunit residential buildings permitted on or after
9January 1, 2015, shall be constructed in a manner that will permit
10the measurement by a county, municipal, or other public water
11system or by the owner or operator of water use by each unit and
12separate submeters shall be installed for each individual leased,
13rented, or other tenant space within
each multifamily residential
14building.
15(1) This subdivision shall not apply to any building constructed
16or permitted prior to January 1, 2015, which is thereafter: (A)
17renovated or (B) following a casualty or condemnation, renovated
18or rebuilt.
19(2) Subdivision (c) shall not apply to any construction of a
20building, the permit for which was granted prior to January 1,
212015.
22(d) (1) The owner or operator of a building subject to
23subdivision (c) shall seek reimbursement for water and wastewater
24usage by the units through an economic allocation methodology
25which is based on the measured quantity of water used by each
26unit.
27(2) The owner or operator of that building which includes
28common areas for the benefit of the units may also seek
29
reimbursement for common area water and wastewater use through
30an economic allocation which approximates the portion of the
31common area water and wastewater services allocable to each unit.
32(3) (A) The total amount of charges to the units under
33paragraphs (1) and (2) for water and wastewater shall not exceed
34the total charges and fees paid by the owner or operator to the
35utility company or municipality providing the water and wastewater
36service for the multiunit residential building, plus actual fees paid
37to a third-party billing service provider for establishing, servicing,
38processing payments, and billing tenants.
P4 1(B) The third-party service provider fees and the economic
2allocation methodology shall be disclosed to the tenants as part of
3any contractual leasing agreement.
4(4) If a tenant
notifies the owner or operator of a building subject
5to this subdivision, or the owner or operator otherwise becomes
6aware, of a condition that indicates a submeter reading indicating
7abnormally high water usage of more than 150 percent of that
8unit’s volumetric usage of the last three months, the owner or
9operator of the building shall investigate, and if warranted, rectify
10the condition within 60 days and shall not charge the tenant more
11than 80 percent billed for volumetric usage of the last three months
12for which complete billing information is available. The owner or
13operator shall disclose the adjustment on the bill.
14(5) If a monthly submeter reading necessary to measure
15volumetric usage is unavailable for any reason, the owner or
16operator of a building subject to this subdivision may bill the tenant
1780 percent of the average amount billed for volumetric usage for
18the last three months for which complete billing information is
19available,
and may estimate for a period of up to three months
20while the submeter is being repaired. The landlord shall disclose
21the adjustment on the bill. If, after the three-month repair period,
22the submeter has not been repaired, the owner or operator of the
23building shall not bill the tenant until such repair is completed.
24(e) Notwithstanding anything to the contrary in subdivision (b)
25or (d), the water and wastewater charges for the last billing period
26of a tenant’s occupancy in a unit may be estimated by calculating
27the average of at least three months of charges for the water and
28wastewater allocated to the unit, and then prorating the average
29by dividing that average by the number of days in the billing
30period, and then multiplying that per diem charge by the number
31of days the tenant had possession of that unit since the last billing
32period ended, provided, that where available the owner or operator
33of the building shall use the actual submeter
reading for the last
34month’s billing period.
35(f) A county, municipal, or other public water system shall be
36prohibited from charging any fee or levy for the installation or use
37of privately owned meters or other devices which measure or assist
38in the measurement of water use under subdivision (c).
P5 1(g) Nothing in this section shall affect any local ordinances with
2stricter provisions than those set forth in this section if that
3ordinance was adopted prior to January 1, 2014.
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