It's funny how so many people were confused by the issue. The way I understood it-the existing law, dating back to 1917, makes it neccessary to acquire a permit for rainbarrels and cisterns and the guy introducing the new bill wanted to make rainbarrels and cisterns legal without a permit.
Youu are right mudbug, the existing law requires permits for rain barrels and cisterns. The confusion came from reading the original text of the bill which was poorly worded and confusing. It actually sounded like it was going to require a permit for a rainbarrel. Something no one had heard of, probably because of it's rare enforcement.
The text has been chaged thanks to many people sending letters and questioning what was going on.