BILL ANALYSIS Ó
AB 682
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Date of Hearing: May 20, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
682 (Williams) - As Amended May 13, 2015
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill authorizes a person to have specified alterations,
conversions, and repairs made to a mobilehome, for purposes of
participating in the Mobilehome Park Utility Upgrade Program
(pilot program), without filing an application with the
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Department of Housing and Community Development (HCD). Requires
HCD to inspect any alterations and conversions made to ensure
that health and safety standards are met, and authorizes HCD to
establish an hourly technical service fee to cover the
reasonable costs of inspections.
FISCAL EFFECT:
Unknown costs to HCD (Mobilehome-Manufactured Home Revolving
Fund) to fund the necessary health and safety inspections
associated with the mobilehome upgrades. This cost is expected
to be fully offset by a technical service fee authorized in the
bill.
Staff notes that HCD inspection costs are generally recovered as
part of its owner permit application fee. This bill exempts
participating mobilehome owners from acquiring a permit for the
needed work, and thus from paying the permit fee; but instead
authorizes HCD to establish an hourly technical service fee to
cover the reasonable inspection costs.
COMMENTS:
1)Purpose. 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
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implementation of the Mobilehome Park Utility Upgrade Program.
The narrow exemption would allow a utility to upgrade the
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."
2)Background. 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 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. 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.
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
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program so as to avoid the normal credit check and service
deposit requirements.
The lack of current and proper documentation, by mobilehome
owners, has been an impediment to implementing the utility
transfer pilot program. This bill seeks to address this by
allowing the necessary safety upgrades to occur even without
proper title or paperwork.
3)Related Legislation.
a) AB 587 (Chau), pending in the Committee, 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.
b) AB 999 (Daly), pending in this Committee, would
establish due process requirements for mobilehome park
owners to dispose of an abandoned mobilehome without first
being required to pay any unpaid property taxes on the
mobilehome.
Analysis Prepared by:Jennifer Swenson / APPR. / (916)
319-2081
AB 682
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