BILL ANALYSIS Ó AB 1830 Page 1 Date of Hearing: May 2, 2012 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair AB 1830 (V. Manuel Perez) - As Amended: April 23, 2012 Policy Committee: UtilitiesVote:12-0 Urgency: No State Mandated Local Program: Yes Reimbursable: No SUMMARY This bill increases consumer protections for tenants of a mobilehome park that provides its own water service. Specifically, this bill: 1)Requires the Public Utilities Commission (PUC), if it determines that a mobilehome park providing its own water service has charged an unreasonable rate, to order reimbursement to the complainant and any other affected current and former tenants. 2)Allows a former tenant of a mobilehome park that provides its own water service to file a complaint regarding an unjust rate or the quality of service, if the tenant resided in the park within the previous five years. 3)Requires a mobilehome park that provides its own water service to provide written notice, as specified, to each tenant informing them of their right to file a complaint with the PUC about their water charges or water service. 4)Makes a mobilehome park that fails to comply with (3) civilly liable for up to $1,000 for each day it fails to provide the notice. FISCAL EFFECT The PUC assumes the bill will likely encourage the filing of more complaints against mobilehome parks. Related workload includes reviewing and analyzing just and reasonable expenses and capital costs of the mobilehome park's water system and the AB 1830 Page 2 rates being charged, in addition to processing the filing, conducting hearings, drafting a proposed decision, if necessary, and implementing that decision. Annual special fund costs are estimated at around $440,000 for two utility engineers and an administrative law judge. (The PUC indicates that one just recent complaint required 0.3 personnel years of staff time.) COMMENTS 1)Background . Current law places under PUC jurisdiction any mobilehome park that provides water service to its tenants from water supplies and facilities that it owns, and authorizes the commission to determine whether those rates are just and reasonable and whether the service is adequate. In 2009, the PUC received a complaint by tenants of a mobilehome park in Thermal, California. The park used an inclining block rate system, similar to that required for residential electricity customers. The residents were unable to pay the high rates for water-sometimes in excess of $500 per month-and were faced with eviction. The PUC determined that the facility's differential between Tier 3 and Tier 1 rates were over 2,000%, issued a ruling that the rates were unjust and unreasonable, and PUC determined rates that were reasonable to be used by the park. The commission determined, however, that it lacked authority to order restitution to the residents. 2)Purpose . AB 1830 is intended to ensure that the same rights and protections enjoyed by customer of investor owned utilities are provided to those mobilehome park residents receiving water directly from their park. Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081