BILL ANALYSIS Ó
AB 682
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ASSEMBLY THIRD READING
AB
682 (Williams)
As Amended May 13, 2015
Majority vote
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|Committee |Votes |Ayes |Noes |
| | | | |
| | | | |
|----------------+------+--------------------+---------------------|
|Housing |5-1 |Chau, Steinorth, |Lopez |
| | |Burke, Chiu, Beth | |
| | |Gaines | |
| | | | |
|----------------+------+--------------------+---------------------|
|Appropriations |15-0 |Gomez, Bigelow, | |
| | |Bloom, Bonta, | |
| | |Calderon, Chang, | |
| | |Eggman, Gallagher, | |
| | | | |
| | | | |
| | |Eduardo Garcia, | |
| | |Holden, Quirk, | |
| | |Rendon, Wagner, | |
| | |Weber, Wood | |
| | | | |
| | | | |
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SUMMARY: Authorizes a person to have specified alterations,
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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
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.
3)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. The fees collected shall be
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deposited in the Mobilehome-Manufactured Home Revolving Fund.
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
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 and
18092.7).
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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 to 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: According to the Assembly Appropriations
Committee, 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.
COMMENTS:
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.
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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.
"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
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1, 2015, and continuing through December 31, 2017. There was a
90-day open enrollment period, between January 1 to 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.
Purpose of 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 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.
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"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) of the current legislative session: 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 pending on the Assembly Floor.
AB 587 (Chau) of the current legislative session: 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 pending in the Assembly
Appropriations Committee.
Analysis Prepared by:
Rebecca Rabovsky / H. & C.D. / (916) 319-2085 FN:
0000491
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