BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 196
                                                                  Page  1

          Date of Hearing:   June 17, 2013

                    ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
                               Steven Bradford, Chair
                   SB 196 (Cannella) - As Amended:  April 23, 2013

           SENATE VOTE  :   34-0
           
          SUBJECT  :   Utility rates: mobilehomes and apartment buildings 

           SUMMARY  :   Modifies various code sections to authorize  
          mobilehome park management to either post the Internet website  
          address where the utility's rate information is published or  
          post the prevailing rate schedule, as is currently required.  

           EXISTING LAW  :

          1)Requires a master-meter customer in a mobilehome park or  
            apartment building, among other duties, to post in a  
            conspicuous place, the prevailing residential utilities rate  
            schedule as published by the serving utility. (Public  
            Utilities Code �739.5)

          2)Specifies the management shall not acquire a lien or security  
            interest, other than an interest arising by reason of process  
            issued to enforce a judgment of any court, in a mobilehome  
            located in the park unless it is mutually agreed upon by both  
            the homeowner and management. Any billing and payment upon the  
            obligation shall be kept separate from current rent. (Civil  
            Code �798.40)

           FISCAL EFFECT  :   Unknown.

           COMMENTS  :   According to the author, "SB 196 updates mobile home  
          park law by giving management the option to post the Internet  
          address where park residents could obtain the serving utility  
          company's rate schedule, as an alternative to posting the  
          lengthy rate schedules."

           1)Background  :  Over 2,000 mobilehome park owners in the state  
            provide electricity to their
          tenants through a master meter. In such cases, the park owner  
          receives electricity from the utility at a master meter. The  
          electricity is then distributed to tenants through  
          infrastructure owned by the park owner and a sub-meter located  








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          at each tenant's mobilehome. The tenants are then billed by the  
          park owner for the electricity they use in the same way that a  
          utility would if the tenant was being directly served by a  
          utility.

           2)Utility rate posting requirements  : According to the author,  
            rate sheets from the serving
          utilities have become voluminous and cumbersome for park  
          management to post, but rarely sought out and viewed by park  
          residents. In addition, when changes are made to the prevailing  
          rates, park management often receives the new rate schedule, as  
          an alternative to posting the lengthy rate schedules.  

          SB 196 authorizes park management to either post the Internet  
          website address where the utility's rate information is  
          published or continue to post the prevailing rate schedule as  
          currently required by law.  For those park residents who do not  
          have access or subscribe to Internet services, the current rate  
          sheets will still be able to request a copy from park  
          management. 
          1)Clarifying amendment:  This committee may wish to consider an  
            amendment to clarify the
          author's intent to publish the specific current rate schedule  
          for residents to access as follows:

          Civil Code �798.40

          (a) Where the management provides both master-meter and submeter  
          service of utilities to a homeowner, for each billing period the  
          cost of the charges for the period shall be separately stated  
          along with the opening and closing readings for his or her  
          meter. The management shall post in a conspicuous place, the  
           prevailing   specific current utility  residential utilities rate  
          schedule as published by the serving utility or the Internet Web  
          site address where the information is posted  serving utility or  
          the Internet Web site address  where the homeowner may access the   
           of the specific current utility rate  schedule. If the management  
          elects to post the Internet Web site address where the schedule  
          may be accessed, the management shall also: (1) provide a copy  
          of the  prevailing   specific current  residential  utilities   utility   
          rate schedule, upon request, at no cost; and (2) state in the  
          posting that a homeowner may request a copy of the rate schedule  
          from management.

          Public Utilities Code �739.5 (e)








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          (e) Every master-meter customer shall 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, including, but not limited to, the opening and  
          closing readings for the meter, and the identification of all  
          rates and quantities attributable to each block in the  
          applicable rate structure. The master-meter customer shall also  
          post, in a conspicuous place, the applicable  prevailing   specific  
          current utility  residential gas or electrical rate schedule, as  
          published by the  corporation, or the Internet Web site address  
          where the corporation posts that information  corporation, or the  
          corporation's Internet Web site address  where the individual  
          user may access the schedule   of the specific current rate  
          schedule.  If the master-meter customer elects to post the  
          Internet Web site address where the schedule may be accessed,  
          the master-meter customer shall also: (1) provide a copy of the  
           prevailing  specific current  residential gas or electrical rate  
          schedule, upon request, at no cost; and (2) state in the posting  
          that an individual user may request a copy of the rate schedule  
          from the master-meter customer.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          California Apartment Association (CAA)
          Western Manufactured Housing Communities Association (WMA)
           
            Opposition 
           
          None on file.

           Analysis Prepared by  :    DaVina Flemings / U. & C. / (916)  
          319-2083