BILL ANALYSIS                                                                                                                                                                                                    



                                                                       AB 682


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          ASSEMBLY THIRD READING


          AB  
          682 (Williams)


          As Amended  May 13, 2015


          Majority vote


           ------------------------------------------------------------------ 
          |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         |                     |
          |                |      |                    |                     |
          |                |      |                    |                     |
           ------------------------------------------------------------------ 


          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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