BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 196|
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THIRD READING
Bill No: SB 196
Author: Cannella (R)
Amended: 4/23/13
Vote: 21
SENATE JUDICIARY COMMITTEE : 7-0, 4/16/13
AYES: Evans, Walters, Anderson, Corbett, Jackson, Leno, Monning
SENATE ENERGY, UTIL. & COMMUNIC. COMMITTEE : 11-0, 4/30/13
AYES: Padilla, Fuller, Cannella, Corbett, De Le�n, DeSaulnier,
Hill, Knight, Pavley, Wolk, Wright
SUBJECT : Utility rates: mobilehomes and apartment buildings
SOURCE : Western Manufactured Housing Communities Association
DIGEST : This bill allows the management of a mobilehome park,
apartment building, or similar residential complex to post the
Internet Web site address where the master-meter and submeter
rate schedule is posted.
ANALYSIS :
Existing law:
1. Governs, under the Mobilehome Residency Law, the
relationship between park owners or managers and the
residents in mobilehome parks and manufactured housing
communities. (Civil Code (CIV) Section 798 et seq.)
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2. States that when management provides both master-meter and
submeter service of utilities to a homeowner, the cost of the
charges for each billing period must be separately stated
along with the opening and closing readings for his/her
meter. Management must also post, in a conspicuous place,
the prevailing residential utilities rate schedule as
published by the serving utility. (CIV Section 798.40)
3. States that the Public Utilities Commission (PUC) shall
require that, whenever gas or electric service, or both, is
provided by a master-meter customer to users who are tenants
of a mobilehome park, apartment building, or similar
residential complex, the master-meter customer shall charge
each user of the service at the same rate that would be
applicable if the user were receiving gas or electricity, or
both, directly from the gas or electrical corporation.
(Public Utilities Code Section (PUC) 739.5(a))
4. Requires every master-meter customer to provide an itemized
billing of charges for electricity or gas, or both, to each
individual user generally in accordance with the form and
content of bills of the corporation to its residential
customers, as specified. The master-meter customer must also
post, in a conspicuous place, the applicable prevailing
residential gas or electrical rate schedule, as published by
the corporation. (PUC Section 739.5(e))
This bill:
1. Alternatively, allows the master-meter customer to post the
Internet Web site address where the corporation posts the
prevailing residential gas or electrical rate schedule.
2. Provides that if electing to post the Internet Web site
address, management shall also state that a tenant may
request a copy of the rate schedule from management, and
management shall provide a copy of the schedule upon request
at no cost to the tenant.
Background
In California, many mobilehome park (and some apartment
buildings) owners provide utility service to their tenants
through a master-meter. The utility service is then distributed
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to the residents of the individual mobilehomes on the property -
those residents either have a submeter or are unmetered and
split the cost with other residents. When a submeter is used,
the cost of the charges for each billing period are separately
stated along with the opening and closing readings for the
resident's submeter. Furthermore, existing law mandates the PUC
to require a master-meter customer who provides gas or electric
service to charge each user of the service the same rate that
would be applicable if the user were receiving gas or
electricity directly from the gas or electrical corporation.
That corporation must, in turn, provide the master-meter
customer with rates that provide a sufficient deferential to
cover the costs of providing submeter service.
To ensure that residents are aware of the prevailing rates for
their utility service, the master-meter customer (park owner or
management) is required to conspicuously post the prevailing
residential utilities rate schedule as published by the serving
utility. This bill, sponsored by the Western Manufactured
Housing Communities Association, alternatively allows the
master-meter customer to post the Internet Web site address
where the information is posted.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local:
No
SUPPORT : (Verified 5/2/13)
Western Manufactured Housing Communities Association (source)
California Apartment Association
ARGUMENTS IN SUPPORT : According to the author's office, since
CIV Section 798.40 was adopted in 1978, the rate sheets from the
serving utilities have become voluminous and cumbersome to post.
In its origin, gas and electric companies had single rate
tiers, which meant the sheets were user-friendly and easy to
understand. Now, with multiple tiers and rate schedules, they
are much more difficult for both the [mobilehome] park
management and residents to decipher and comprehend.
In reality, these rate sheets are rarely sought out and viewed
by park residents. Furthermore, when changes are made to the
prevailing rates, park management often receives the new rate
sheets in the mail after the fact.
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Posting of these rates has become burdensome on park management
over the years. The time has come to update the law to allow
posting of the Web site where the information may be obtained.
AL:k 5/2/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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