BILL ANALYSIS Ó
AB 682
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Date of Hearing: April 29, 2015
ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
Ed Chau, Chair
AB 682
(Williams) - As Amended March 26, 2015
SUBJECT: Mobilehome park: electric and gas service:
master-meter customers
SUMMARY: Authorizes a person to have specified alterations,
conversions, and repairs made to a mobilehome without filing an
application with the Department of Housing and Community
Development (HCD). Specifically, this bill:
1)Authorizes a person to, without filing an application for an
alteration or conversion with HCD, alter or convert, or cause
to be altered or converted, the structural, fire safety,
plumbing, heat-producing, or electrical systems and
installations or equipment of a mobilehome in order to extend
a gas line and/or electrical feeder line from a utility-owned
service line to the electrical subpanel or gas inlet of a
mobilehome only for the purpose of a natural gas and/or
electric service utility upgrade within a mobilehome park that
is subject to or consistent with the requirements of a
specified Public Utilities Commission (CPUC) Decision.
2)Authorizes a defect in the mobilehome relating to the
heat-producing or electrical systems or installations or
equipment to be repaired or replaced without filing an
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application for an alteration or conversion with HCD if the
following conditions are met:
a) The repair or replacement is necessary to correct
the defect;
b) The repair or replacement is made promptly; and
c) HCD approves the repair or replacement.
EXISTING LAW:
1)Requires HCD to enforce various laws pertaining to
manufactured housing, mobilehomes, park trailers, commercial
coaches (Health and Safety Code Section 18000 et seq.).
2)Requires construction permits, issued by HCD, for alterations
or conversions to the structural, fire safety, plumbing,
heat-producing, or electrical systems and installations or
equipment of a mobilehome (Health and Safety Code Section
18029).
3)Requires a mobilehome owner to have documentation certifying
they own their unit in order to apply for a construction or
alteration permit with HCD (Health and Safety Code Section
18029).
4)Provides that HCD may establish a schedule of fees to pay the
costs of work related to administration and enforcement of
mobilehome and manufactured home standards, including
applications for alterations or conversions, and the fees
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collected must be deposited in the Mobilehome-Manufactured
Home Revolving Fund (Health and Safety Code Section 18031).
5)Prohibits HCD from issuing a duplicate or new certificate of
title or registration card or amending the permanent title
record of the mobilehome when specified fees and penalties
have not been paid (Health and Safety Code Sections 18116.1,
18092.7).
6)Provides that residents of mobilehome parks constructed after
January 1, 1997, must be individually metered and served by
gas and electric distribution facilities owned, operated, and
maintained by the gas or electric corporation providing the
service in the area where the park is located (Public
Utilities Code Sections 2791).
7)Provides a statutory framework for transferring master-metered
mobilehome parks to utilities that provide direct service in
the area where the park is located (Public Utilities Code
Sections 2791-2799).
8)Establishes a three-year Mobilehome Park Utility Upgrade
Program (MHP Pilot Program) authorizing each California
investor-owned utility to convert 10%, approximately 40,000,
of master-metered gas and/or electric mobilehome park spaces
within its operating territory to direct utility service (CPUC
Decision 14-03-021).
FISCAL EFFECT: Unknown.
COMMENTS:
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MHP Pilot Program: Existing law establishes the procedure for
transferring master-metered mobilehome parks to utilities that
provide direct service. However, due to a variety of reasons,
few transfers have actually occurred since the law took effect
in 1997. In 2014, the CPUC initiated a voluntary three-year
pilot program to encourage park owners to transfer master-meter
and submeter service to direct utility service.
The MHP Pilot Program is a voluntary three year program which
authorizes each California investor-owned utility to convert
10%, approximately 40,000, of master-metered gas and/or electric
mobilehome park spaces within its operating territory to direct
utility service. Each participating utility is authorized to
fully recover in distribution rates the costs of the pilot
program, subject to reasonableness review. There are numerous
benefits to converting to direct utility service, including
safety inspections by the utilities and local agencies, as well
as infrastructure upgrades. The pilot program involves the
replacement of utility lines and installation of new meters for
new locations, and existing service inlets. It also requires new
service lines from the new meters to the existing service inlets
for the mobilehomes which will be accompanied by installing new
gas and/or electric lines to the underside of mobilehomes in the
park. It requires extensive plan reviews and inspections of
contractor work.
According to the CPUC, "in February 2011, following a petition
filed by the Western Manufactured Housing Communities
Association (WMA), the CPUC opened a rulemaking proceeding
(R.11-02-018) to examine what could be done to encourage owners
of mobilehome parks and manufactured housing communities (both
referred herein as MHPs) to upgrade aging gas and electric
distribution systems in an effort to enhance both public safety
and service reliability for MHP residents.
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"On March 13, 2014, the CPUC issued Decision 14-03-021,
establishing a three-year pilot program authorizing each
California investor-owned utility to convert 10% of
master-metered gas and/or electric MHP spaces within its
operating territory to direct utility service."
The MHP Pilot Program will run for three years, beginning
January 1, 2015 and continuing through December 31, 2017. There
was a 90-day open enrollment period, between January 1 - March
31, 2015, in which the CPUC's Safety and Enforcement Division
(SED) accepted initial applications from park owners interested
in participating in the program. The SED is responsible for
prioritizing and selecting parks for the upgrade program.
Selected parks will be notified by May 2015, and would then need
to meet additional requirements to go through with the pilot
program.
Once the park is converted to direct utility services, current
residents will become new customers of the local serving CPUC
regulated utility, and will be "grandfathered" into the program
so as to avoid the normal credit check and service deposit
requirements. Generally, residents should not see a
significant change in their rates.
Need for this bill: According to the author, "the law requires
construction permits for alterations made to a mobilehome, and a
permit can only be issued if a homeowner has the title or proper
paperwork certifying they own their unit. However, it's not
uncommon for a mobilehome owner to lack the title or appropriate
paperwork for their mobilehome, due to multiple title transfers.
"AB 682 provides a narrow exemption to the permit requirements
for alterations to mobilehomes thereby ensuring the smooth
implementation of the Mobilehome Park Utility Upgrade Program.
The narrow exemption would allow a utility to upgrade the
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electric and gas system to mobilehome park tenants who may or
may not have up-to-date paperwork. Mobilehome tenants would be
able to participate in the pilot program without a current title
or appropriate paperwork. The pilot program's successful
implementation means upgrading aging gas and electric
distribution systems in an effort to enhance both public safety
and service reliability for the state's mobilehome residents.
"AB 682 will address the issue of the utility transfer pilot
program not being implemented due to lack of current and proper
documentation, while expediting the utility upgrades."
Related legislation:
AB 999 (Daly): Establishes due process requirements for
mobilehome park owners (park management) seeking to dispose of
an abandoned mobilehome without first being required to pay any
unpaid property taxes on the mobilehome. AB 999 is currently
pending hearing in the Assembly Committee on Housing and
Community Development.
AB 587 (Chau): Creates a tax abatement program for mobilehome
owners who cannot transfer title into their names due to
delinquent taxes and fees that may have been incurred by prior
owners. AB 587 is currently pending hearing in the Assembly
Judiciary Committee.
REGISTERED SUPPORT / OPPOSITION:
AB 682
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Support
Western Manufactured Housing Communities Association (sponsor)
Opposition
None on file
Analysis Prepared by:Rebecca Rabovsky / H. & C.D. / (916)
319-2085