BILL ANALYSIS Ó AB 682 Page 1 Date of Hearing: May 20, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 682 (Williams) - As Amended May 13, 2015 ----------------------------------------------------------------- |Policy |Housing and Community |Vote:|5 - 1 | |Committee: |Development | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- 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 AB 682 Page 2 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 AB 682 Page 3 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 AB 682 Page 4 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 Page 5