BILL NUMBER: SB 7	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JULY 7, 2015
	AMENDED IN ASSEMBLY  JUNE 18, 2015

INTRODUCED BY   Senator Wolk
   (Coauthor: Assembly Member Williams)

                        DECEMBER 1, 2014

   An act to add Chapter 2.5 (commencing with Section 1954.201) to
Title 5 of Part 4 of Division 3 of the Civil Code, to add Section
17922.14 to the Health and Safety Code, and to add Section 517
 to   to, and to add Article 5 (commencing with
Section 537) to Chapter 8 of Division 1 of,  the Water Code,
relating to housing.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 7, as amended, Wolk. Housing: water meters: multiunit
structures.
   (1) 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.
   This bill would express the intent of the Legislature to encourage
the conservation of water in multifamily residential rental
buildings through means either within the landlord's or the tenant's
control, and to ensure that the practices involving the submetering
of dwelling units for water service are just and reasonable, and
include appropriate safeguards for both tenants and landlords.

   This bill would define the term "submeter" for these purposes.
 
   This bill would, if a submeter is used to charge a tenant
separately for water service, impose requirements on landlords
relating to submetered water service to individual dwelling units.
The bill would require a landlord to make certain disclosures to the
tenant prior to the execution of the rental agreement, if the
landlord intends to charge a tenant separately from rent for water
service in a property with submeters. The bill would specify that as
part of the monthly bill for water service, a landlord may only bill
a tenant for volumetric water usage, as specified, a portion of any
recurring fixed charge billed to the property by the water purveyor,
as specified, a billing, administrative, or other fee, as prescribed,
and a late charge. The bill would specify that payments are required
to be due at the same point in each billing cycle, as prescribed,
and that each bill must include and separately set forth certain
information. The bill would prohibit a landlord from charging certain
additional fees. The bill would require a landlord to maintain and
make available in writing to a tenant, as specified, the date the
submeter was last inspected, tested, and verified, the data used to
calculate the tenant's bill, and the location of the submeter. The
bill would require a landlord to investigate and, if warranted,
rectify certain problems or a submeter reading that indicates
constant or abnormal water usage. The bill would permit a landlord to
enter a unit for specified purposes relating to a submeter or water
fixture if certain requirements are met. The bill would permit a
tenant to be charged late fees, as specified. The bill would provide
that these provisions shall become operative on January 1, 2017.

   (2) The California Building Standards Law provides for the
adoption of building standards by state agencies by requiring all
state agencies that adopt or propose adoption of any building
standard to submit the building standard to the California Building
Standards Commission for approval and adoption. Existing law creates
the Building Standards Administration Special Revolving Fund and
requires that funds deposited into the fund be expended, upon
appropriation by the Legislature, to carry out specified provisions
of law that relate to building standards, with emphasis placed on
certain activities relating to green building standards.
   This bill would authorize the Department of Housing and Community
Development to develop and propose for adoption by the commission
building standards that require the installation of water  meters
or  submeters in multiunit residential buildings, as specified.
The bill would exempt specified categories of structures from these
building standards. This bill would provide that moneys in the fund
are available to the department, upon appropriation, for
administrative costs associated with the development of building
standards that require the installation of water  meters or 
submeters in multiunit residential buildings.
   (3) 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. 
   This bill would add to the Water Measurement Law the requirement
that a water purveyor that provides water service to a newly
constructed multiunit residential structure or newly constructed
mixed-use residential and commercial structure that submits an
application for a water connection after January 1, 2017, measure the
quantity of water supplied to each individual dwelling unit as a
condition of new water service and permit the measurement to be by
individual water meters or submeters, as defined. The bill would
require the owner of the structure to ensure that a submeter
installed for these purposes complies with laws and regulations
governing the approval of submeter types or the installation,
maintenance, reading, billing, and testing of submeters, including,
but not limited to, the California Plumbing Code. The bill would
exempt certain structures from these requirements. The bill would
prohibit a water purveyor from imposing an additional capacity or
connection fee or charge for a submeter that is installed by the
owner, or his or her agent. The bill would provide that these
provisions shall become operative on January 1, 2017.  
   This bill would define the term "submeter" for purposes of that
law. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Chapter 2.5 (commencing with Section 1954.201) is added
to Title 5 of Part 4 of Division 3 of the Civil Code, to read:
      CHAPTER 2.5.  WATER SERVICE


   1954.201.  It is the intent of the Legislature in enacting this
chapter to do both of the following:
   (a) To encourage the conservation of water in multifamily
residential rental buildings through means either within the landlord'
s or the tenant's control.
   (b) To ensure that the practices involving the submetering of
dwelling units for water service are just and reasonable, and include
appropriate safeguards for both tenants and landlords. 
   1954.202.  "Submeter" means a device that measures water
consumption of an individual rental unit within a multiunit
residential structure or mixed-use residential and commercial
structure, and that is owned and operated by the owner of the
structure or the owner's agent. As used in this section, "multiunit
residential structure" and "mixed-use residential and commercial
structure" mean real property containing two or more dwelling units.
 
   1954.202.  For the purposes of this chapter:
   (a) "Billing agent" means a person or entity who contracts to
provide submetering services to a landlord, including billing.
   (b) "Landlord" means an owner of residential rental property.
"Landlord" does not include a tenant who rents all or a portion of a
dwelling unit to subtenants. "Landlord" does not include a common
interest development, as defined in Section 4100 of the Civil Code.
   (c) "Property" means real property containing two or more dwelling
units that is served by a single master meter.
   (d) "Purveyor" means any local purveyor who bills the landlord for
charges related to water treatment, distribution, or usage,
including, but not limited to, water sewer, stormwater, flood control
and water treatment charges.
   (e) "Rental agreement" includes a fixed-term lease.
   (f) "Renting" includes leasing, whether on a periodic or
fixed-term basis.
   (g) "Submeter" means a device that measures water consumption of
an individual rental unit within a multiunit residential structure or
mixed-use residential and commercial structure, and that is owned
and operated by the owner of the structure or the owner's agent. As
used in this section, "multiunit residential structure" and
"mixed-use residential and commercial structure" mean real property
containing two or more dwelling units.
   (h) "Water service" includes any charges, whether presented for
payment on local purveyor bills, tax bills, or bills from other
entities, related to water treatment, distribution, or usage,
including, but not limited to, water, sewer, stormwater, flood
control, and water treatment charges.
   (i) "Water purveyor" means a water purveyor as defined in Section
512 of the Water Code.  
   1954.203.  (a) All properties that use submeters to separately
bill tenants for water service shall ensure:
   (1) The submeter is inspected, tested, and verified for commercial
purposes pursuant to law, including, but not limited to, Section
12500.5 of the Business and Professions Code.
   (2) The installation conforms to all laws, including, but not
limited to, regulations established pursuant to Section 12107 of the
Business and Professions Code.
   (3) The submeter for a dwelling unit measures only water that is
supplied for the exclusive use of the particular dwelling unit, and
only to an area within the exclusive possession and control of the
tenant of the dwelling unit.
   (4) The submeter is capable of being accessed and read by the
tenant of the dwelling unit and read by the landlord without entering
the dwelling unit. A submeter installed before January 1, 2017, may
be read by the landlord after entry into the unit, in accordance with
this chapter and Section 1954.
   (5) Each submeter is reinspected and recalibrated within the time
limits specified in law or regulation.
   (6) All plumbing fixtures and fittings within each dwelling unit
conform to all laws regarding water conservation.
   (b) This section does not require a water purveyor to assume
responsibility for ensuring compliance with any law or regulation
governing installation, certification, maintenance, and testing of
submeters and associated onsite plumbing.  
   1954.204.  Before executing a rental agreement, a landlord who
intends to charge a tenant separately from rent for water service in
a property with submeters shall clearly disclose the following
information to the tenant, in writing, in at least l0-point type,
which may be incorporated into the rental agreement:
   (a) That the tenant will be billed for water service separately
from the rent.
   (b) An estimate of the monthly bill for water service for units at
the property based on either of the following:
   (1) The average or median bill for water service for comparative
units at the property over any three of the past six months.
   (2) The amount of the bill based upon average indoor water use of
a family of four of approximately 200 gallons per day, and including
all other monthly charges that will be assessed. Estimates for other
gallons per day may also be included. The estimate shall include a
statement that the average family of four uses about 200 gallons of
water each day.
   (c) The due dates and payment procedures for bills for water
service.
   (d) An email address and a toll-free telephone number or a local
telephone number for the tenant to contact with questions regarding
the water service billing and the days and hours for regular
telephone service at either number.
   (e) That the monthly bill for water service may only include the
following charges:
   (1) Payment due for the amount of usage as measured by the
submeter, charged at the same rate for commodity usage by the
purveyors.
   (2) Payment of a portion of the fixed fee charged by the purveyors
for water service divided equally among all the units at the
property.
   (3) A fee for the landlord's or billing agent's costs in
accordance with paragraph (3) of subdivision (a) of Section 1954.205.

   (4) Any late fee, with the amounts and times assessed, in
compliance with Section 1954.213.
   (f) A statement that the tenant shall notify the landlord in
writing of any leaks, drips, or other problems with the water system,
including problems with water saving devices, and that the landlord
is required to investigate, and, if necessary, repair these problems.

   (g) A statement that the landlord shall provide any of the
following information if asked by the tenant:
   (1) The location of the submeter.
   (2) The calculations used to determine a monthly bill.
   (3) The date the submeter was last certified for use, and the date
it is next scheduled for certification.
   (h) A statement that if the tenant believes that the submeter
reading is inaccurate or the submeter is malfunctioning, the tenant
shall first notify the landlord in writing and request an
investigation. A tenant shall be provided with notice that if an
alleged submeter malfunction is not resolved by the landlord, a
tenant may contact the local county sealer and request that the
submeter be tested. Contact information for the county sealer shall
be included in the disclosure to the tenant.
   (i) A statement that this disclosure is only a general overview of
the laws regarding submeters and that the laws can be found at
Chapter 2.5 (commencing with Section 1954.201) of Title 5 of Part 4
of Division 3 of the Civil Code, available online or at most
libraries.  
   1954.205.  (a) As part of the regular bill for water service, a
landlord shall only bill a tenant for the following water service:
   (1) Volumetric charge for water at a rate calculated by dividing
the total charges for volumetric water use at the entire property by
the total volume of volumetric water used at the property multiplied
by the tenants measured usage at the property.
   (2) Any recurring fixed charge for water service billed to the
property by the purveyors that, at the landlord's discretion, shall
be calculated by either of the following:
   (A) The tenant's proportion of the total fixed charges charged to
the property. The tenant's proportion shall be based on the
percentage of the tenant's volumetric water use in relation to the
total volumetric water use of the entire property, as shown on the
property's water bill during that period.
   (B) Dividing the total fixed charges charged to the property
equally among the total number of residential units and
nonresidential units at the property.
   (3) A billing, administrative, or other fee for the landlord's and
billing agent's costs, which shall be the lesser of an amount not to
exceed four dollars and seventy-five cents ($4.75), as adjusted
pursuant to this paragraph or 25 percent of the amount billed
pursuant to paragraph (1). Beginning January 1, 2018, the maximum fee
authorized by this paragraph may be adjusted each calendar year by
the landlord, no higher than a commensurate increase in the
California fiscal year average for the previous fiscal year, for all
urban consumers, as determined by the Department of Finance.
   (4) A late charge as assessed pursuant to Section 1954.213.
   (b) If a submeter reading for the beginning or end of a billing
period is, in good faith, not available, the landlord shall bill the
tenant according to Section 1954.212.
   (c) This section does not prohibit a landlord or the landlord's
billing agent from including any other lawful charges on the same
bill.  
   1954.206.  (a) Submeters shall be read within three days of the
same point in each billing cycle.
   (b) Payments shall be due at the same point in each billing cycle.
A tenant may agree in writing to receive a bill electronically. A
tenant may rescind authorization for electronic delivery of bills at
any time. A tenant shall not be required to pay a bill
electronically.
   (c) A bill shall include and separately set forth the following
information:
   (1) The submeter reading for the beginning date and ending date of
the billing cycle, the dates read, and the indicated consumption as
determined by subtracting the amount of the beginning date submeter
reading from the amount of the ending date submeter reading. If the
unit of measure is in something other than gallons, the indicated
consumption shall be expressed in gallons.
   (2) The amounts charged pursuant to subdivision (a) of Section
1954.205.
   (3) The rate or rates charged for the volumetric charge per unit
of measure.
   (4) The amount, if any, due from the previous month's bill.
   (5) The amount, if any, due from bills prior to the previous month'
s bill.
   (6) The late fee, if any, imposed on amounts specified in
paragraph (4) or (5).
   (7) The total amount due for the billing period.
   (8) The due date for the payment.
   (9) If a late fee is charged by the landlord, a statement of when
the late fees would apply.
   (10) The procedure to contact the landlord or billing agent with
questions or concerns regarding the bill. Upon request of the tenant,
the landlord or billing agent shall respond in writing to any
questions or disputes from the tenant. If a billing agent is used,
the name of the billing agent shall be disclosed. The tenant shall be
provided a mailing address, email address, telephone number, which
shall be either a toll-free or a local number, and the time of
regular telephone hours for contact regarding billing inquiries.
   (11) A statement that the landlord or billing agent is not the
water purveyor that includes the name of the local water purveyor
providing the water service to the master meter.
   (d) Notwithstanding paragraphs (4) and (5) of subdivision (c), a
separate bill may be provided for past due amounts if past due
amounts are not included on the current month's bill.  
   1954.207.  (a) At the beginning of a tenancy, a submeter shall be
read after the tenant takes possession. If the regular reading occurs
less than five days prior to the tenant taking possession, that
reading may be substituted to establish usage. If the submeter is
manually read, the first bill may be estimated based on the rate
established in subdivision (b) of Section 1954.212.
   (b) For a water-service bill at the end of a tenancy, the submeter
shall be read within five days, if possible. If the submeter cannot
be read within five days at the end of a tenancy, the bill amount for
the final month shall be based on the bill amount for the previous
month.
   (c) The landlord may deduct an unpaid water service bill from the
security deposit upon the ending of a tenancy, if the last water
service bill showing the amount due is attached to the documentation
required by Section 1950.5.  
   1954.208.  Unless it can be documented that a penalty is solely
the result of a tenant's failure to comply with state or local water
use regulations or restrictions, or both, regarding wasting of water,
a landlord shall not charge, recover, or allow to be charged or
recovered, fees incurred by the landlord from the purveyors, billing
agent, or any other person for any deposit, disconnection,
reconnection, late payment by the landlord, or any other penalty
assessed against the landlord. This section shall not prevent a
landlord from charging a tenant for the tenant's late payment of any
bill.  
   1954.209.  The landlord shall maintain and make available in
writing, at the tenant's written or electronic request, within seven
days after the request, the following:
   (a) The date the submeter was last inspected, tested, and
verified, and the date by which it shall be reinspected, tested, and
verified under law, if available. If this information is not
available, the landlord shall disclose that the information is not
available.
   (b) The data used to calculate the tenant's bill, as follows:
   (1) The most recent water bill for the property's master water
meter showing the recurring fixed charge for water service billed to
the property by the water purveyor, and the usage charges for the
property, including any tiered amounts.
   (2) Any other bills for water service, as defined in subdivision
(h) of Section 1954.202, for the property.
   (3) The number of units in the property.
   (4) If not shown on the bill for the property, the per unit
charges for volumetric water usage, including any tiered amounts.
   (5) The formula used to calculate the charge for the tenant's
volumetric water usage.
   (c) The location of the submeter.  
   1954.210.  (a) If a tenant notifies the landlord in writing of, or
the landlord otherwise becomes aware of, a leak, a drip, a running
toilet, or other submeter problem, or a submeter reading indicates
constant or abnormal high water usage, the landlord shall have the
condition investigated, and, if warranted, rectify the condition.
   (b) A tenant shall not remove any water fixtures or water
conservation devices that have been installed by the landlord.
   (c) If the condition is rectified more than 14 days after the
tenant notifies the landlord in writing pursuant to subdivision (a),
the tenant's volumetric usage for any month or months that include
the period between 14 days after the initial investigation and the
repair shall be deemed to be fifteen dollars ($15) or actual usage,
whichever is less. At the landlord's option, if submeter readings are
available to determine the usage at a point prior to investigation
and a point following repair, usage shall be deemed to be fifty cents
($0.50) per day for those days between the two submeter readings or
actual usage, whichever is less.
   (d) If the condition remains unrectified for six months after
investigation, no further volumetric usage charges may be imposed
until the condition is repaired.  
   1954.211.  In addition to the grounds for entry specified in
subdivision (a) of Section 1954, the landlord may enter a unit as
follows:
   (a) For the purpose of installing, repairing, testing, and
maintaining a submeter, or for the purpose of repairing or testing
any water fixture suspected by the landlord or reported by the tenant
to be in need of repair, if the requirements of Section 1954 are
met.
   (b) To read a submeter, if the requirements of this chapter and
Section 1954 are met. Notwithstanding paragraph (3) of subdivision
(d) of Section 1954, notice shall be given only in writing. 

   1954.212.  (a) If a monthly submeter reading necessary to measure
volumetric is unavailable, the tenant may be charged 75 percent of
the average amount billed for volumetric usage for the last three
months for which complete billing information is available. The
adjustment shall be disclosed on the bill.
   (b) If no complete billing information is available for the prior
three months, the volumetric usage charge shall be deemed to be fifty
cents ($0.50) per day that the data is not available.
   (c) If monthly submeter readings remain unavailable for more than
six months, the volumetric usage charge shall be deemed to be zero
for any subsequent month that the data is not available.  
   1954.213.  (a) A tenant may be charged a late fee for any water
service bill not paid 25 days after mailing or other transmittal of
the bill. If the 25th day falls on a Saturday, Sunday, or holiday,
the late fee shall not be imposed until the day after the first
business day following the 25th day.
   (b) A late fee of up to seven dollars ($7) may be imposed if any
amount of a bill remains unpaid after the time described in
subdivision (a). A late fee of up to ten dollars ($10) may be imposed
in each subsequent bill if any amount remains unpaid. If any partial
payments are made, they shall be credited against the bill that has
been outstanding the longest.
   (c) In addition to the purposes specified in subdivision (b) of
Section 1950.5, if a water service bill remains unpaid after the time
described in subdivision (a) expires, the landlord may also claim
the amount of the unpaid bill from the security deposit.
   (d) If a water service bill remains unpaid for 30 days after the
time described in subdivision (a) expires, the nonpayment shall
constitute a curable material breach of the lease. The landlord shall
have the right to terminate the tenancy in accordance with paragraph
(3) of Section 1161 of the Code of Civil Procedure with the service
of a three-day notice to cure covenant or quit upon the tenant.
   (e) Water service charges under this chapter shall not constitute
rent.
   (f) The water service to a dwelling unit shall not be shut off or
otherwise interfered with by the landlord for any reason, including
nonpayment of a bill. Notwithstanding the foregoing, a landlord or
its agent may shut off water service to a dwelling unit or the
property, in order to make repairs, replacements of equipment, or
perform other maintenance at the property.  
   1954.214.  This chapter does not preclude or preempt an ordinance
or regulation adopted prior to January 1, 2013, that regulates the
approval of submeter types or the installation, maintenance, reading,
billing, or testing of submeters and associated onsite plumbing.
 
   1954.215.  The rights or obligations established under this
chapter shall not be waived. Any purported waiver is void.  

   1954.216.  (a) This chapter applies to the following:
   (1) All dwelling units offered for rent or rented in a building
where submeters were required to be installed pursuant to a building
standard adopted in accordance with Section 17922.14 of the Health
and Safety Code.
   (2) All dwelling units where submeters are used to charge a tenant
separately for water service.
   (b) Nothing in this chapter shall be construed to apply to any
dwelling units other than those described in subdivision (a). 

   1954.217.  This chapter shall become operative on January 1, 2017.
 
   1954.218.  Any property that is required to install individual
submeters pursuant to Article 5 (commencing with Section 537) of
Chapter 8 of Division 1 of the Water Code shall at all times be
required to bill residents for water service pursuant to this
chapter. 
  SEC. 2.  Section 17922.14 is added to the Health and Safety Code,
to read:
   17922.14.  (a) During the next regularly scheduled 
triennial   intervening  code cycle that commences
on or after January 1, 2016, or during a subsequent code adoption
cycle, the department may develop and propose for adoption by the
California Building Standards Commission, pursuant to Chapter 4
(commencing with Section 18935) of Part 2.5, building standards
requiring the installation of water  meters or  submeters in
multiunit residential structures, as those terms are defined in
Section 517 of the Water Code.  These standards shall conform to
Article 5 (commencing with Section 537) of Chapter 8 of Division 1 of
the Water Code. 
   (b) (1) The department shall determine whether and under what
circumstances the installation of water  meters or 
submeters is infeasible and include in the building standards
proposed in subdivision (a) the appropriate provision for exemption
from this requirement. The department may consider whether there are
any issues specific to high-rise multifamily buildings that would
require an exemption from the requirement for the installation of
water  meters or  submeters.
   (2) The following categories of structures shall be exempt from
the building standards established pursuant to subdivision (a):
   (A) Long-term health care facilities, as defined in Section
 1418 of the Health and Safety Code.   1418.

   (B) Low-income housing. For the purposes of this subparagraph,
"low-income housing" means a residential building that is financed
with low-income housing tax credits, tax-exempt mortgage revenue
bonds, general obligation bonds, or federal, state, or local loans or
grants, for which rents charged to lower income households, do not
exceed rents prescribed by deed restrictions or regulatory agreements
pursuant to the terms of the financing or financial assistance, and
for which not less than 90 percent of the dwelling units within the
building are designated for occupancy by lower income households. As
used in this subparagraph, "lower income households" has the same
meaning as defined in Section  50079.5 of the Health and
Safety Code.   50079.5. 
   (C) Residential care facilities for the elderly, as defined in
subdivision (k) of Section  1569.2 of the Health and Safety
Code.   1569.2. 
   (D) Student dormitories.
   (E) Time-share property, as defined in subdivision (aa) of Section
11212 of the Business and Professions Code.
   (c) Moneys in the Building Standards Administration Special
Revolving Fund established pursuant to Section 18931.7 shall be
available, upon appropriation by the Legislature, for the department'
s administrative costs associated with the development of building
standards in accordance with this section.
  SEC. 3.  Section 517 is added to the Water Code, to read:
   517.  "Submeter" means a device that measures water consumption of
an individual rental unit within a multiunit residential structure
or mixed-use residential and commercial structure, and that is owned
and operated by the owner of the structure or the owner's agent. As
used in this section, "multiunit residential structure" and
"mixed-use residential and commercial structure" mean real property
containing two or more dwelling units.
   SEC. 4.    Article 5 (commencing with Section 537) is
added to Chapter 8 of Division 1 of the   Water Code 
 , to read:  


      Article 5.  Multiunit Structures


   537.  (a) The structures in all of the following categories shall
be exempt from this article:
   (1) Low-income housing. For purposes of this paragraph,
"low-income housing" means a residential building financed with
low-income housing tax credits, tax-exempt mortgage revenue bonds,
general obligation bonds, or local, state, or federal loans or
grants, for which the rents of the occupants in lower income
households, as defined in Section 50079.5 of the Health and Safety
Code, do not exceed rents prescribed by deed restrictions or
regulatory agreements pursuant to the terms of the financing or
financial assistance, and for which not less than 90 percent of the
dwelling units within the building are designated for occupancy by
lower income households, as defined in Section 50079.5 of the Health
and Safety Code.
   (2) Student dormitories.
   (3) Long-term health care facilities, as defined in Section 1418
of the Health and Safety Code.
   (4) Time-share property, as defined in subdivision (aa) of Section
11212 of the Business and Professions Code.
   (5) Residential care facilities for the elderly, as defined in
Section 1569.2 of the Health and Safety Code.
   (b) A submeter used to measure water supplied to an individual
residential unit that is required pursuant to this chapter shall be
of a type approved pursuant to Section 12500.5 of the Business and
Professions Code, and shall be installed and operated in compliance
with regulations established pursuant to Section 12107 of the
Business and Professions Code.
   537.1.  (a) Each water purveyor that sells, leases, rents,
furnishes, or delivers water service to a newly constructed multiunit
residential structure or newly constructed mixed-use residential and
commercial structure for which an application for a water
connection, or more than one connection, is submitted after January
1, 2017, shall require a measurement of the quantity of water
supplied to each individual dwelling unit as a condition of new water
service. The measurement may be by individual water meters or
submeters.
   (b) (1) The owner of the structure shall ensure that each submeter
installed complies with all laws and regulations governing the
approval of submeter types or the installation, maintenance, reading,
billing, and testing of submeters, including, but not limited to,
the California Plumbing Code.
   (2) This subdivision does not require a water purveyor to fund or
assume responsibility for ensuring compliance with any law or
regulation governing the approval of submeter types or the
installation, maintenance, reading, billing, and testing of submeters
and associated onsite plumbing.
   (c) A water purveyor shall not impose an additional capacity or
connection fee or charge for a submeter that is installed by the
owner, or his or her agent.
   (d) This section shall remain operative until the date on which
the California Building Standards Commission includes standards in
the California Building Standards Code that conform to this article.
   537.2.  (a) This article does not preclude or preempt an ordinance
or regulation that regulates the approval of submeter types or the
installation, maintenance, reading, billing, or testing of submeters
and associated onsite plumbing if the ordinance was adopted prior to
January 1, 2013.
   (b) This article does not restrict the authority of a water
purveyor, city, county, city and county, or other local agency to
adopt and implement a program to promote water conservation that
includes the installation of water meters and submeters, as required
pursuant to subdivision (a) of Section 537.1, if the program is at
least as stringent as the requirements of this article.
   537.3.  It is the intent of the Legislature that this article
should not be construed to impose costs on any local government
agency, except to the extent that the local government agency is a
water purveyor.
   537.4.  This article shall become operative on January 1, 2017.