BILL ANALYSIS Ó
SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
Senator Jim Beall, Chair
2015 - 2016 Regular
Bill No: AB 682 Hearing Date: 6/23/2015
-----------------------------------------------------------------
|Author: |Williams |
|----------+------------------------------------------------------|
|Version: |5/13/2015 |
-----------------------------------------------------------------
-----------------------------------------------------------------
|Urgency: |No |Fiscal: |Yes |
-----------------------------------------------------------------
-----------------------------------------------------------------
|Consultant|Randy Chinn |
|: | |
-----------------------------------------------------------------
SUBJECT: Mobilehome park: electric and gas service:
master-meter customers
DIGEST: This bill facilitates upgrades to mobilehome utility
service by eliminating a required Department of Housing and
Community Development (HCD) permit in specified situations.
ANALYSIS:
Existing law requires that any alteration of heating or
electrical systems of mobilehomes be permitted in advance by the
HCD.
This bill:
1)Allows for alterations to electric or gas service in
mobilehome parks from the utility-owned line to the electrical
subpanel or gas inlet of the mobilehome for mobilehomes that
are subject to a specified California Public Utilities
Commission (CPUC) decision without HCD permits.
2)Requires the HCD to inspect all the above alterations and
assess an hourly technical service fee.
COMMENTS:
Purpose of bill. According to the author, it is not uncommon
for mobilehome owners to lack clear title to their homes. This
makes it difficult to obtain construction permits from HCD as
AB 682 (Williams) Page 2 of ?
those can only be issued if the owner can demonstrate that s/he
has the title. By creating a narrow exemption to the permitting
requirement, this bill allows mobilehomes to participate in a
program to upgrade their substandard gas and electric service.
Solving a problem. Mobilehome park residents often receive
substandard utility service. This is because gas and/or
electric service is often provided by the mobilehome park,
rather than the utility which serves the surrounding area.
Known as master metered service, the mobilehome park acts as a
mini utility, receiving service from the traditional utility
(e.g., Southern California Edison, PG&E) and then distributing
the service through its own distribution system to the
individual mobilehomes in the parks. The mobilehome park
receives a discount on the utility service and then resells the
service to the individual mobilehomes at a regulated rate. The
discount is intended to provide the mobilehome park owner with
sufficient margin to pay for the cost of operating and
maintaining the gas and/or electric distribution system on the
park property, though there is much debate over the adequacy of
the discount. However, there is little debate that mobilehome
park residents are receiving service which is neither as
reliable nor as safe as traditional utility-provided service.
To remedy this long-standing problem, the CPUC, which has
regulatory authority over most utilities, has established a
three-year pilot program to upgrade the utility service in
mobilehome parks. Under the program, the utility would provide
the utility service in place of the mobilehome park, replacing
the existing lines and equipment with facilities that meet
current regulations. The result will be utility-provided and
-maintained service similar to that of most residential
neighborhoods. Ten percent of the mobilehome park residents
would receive this upgrade, which is approximately 25,000
mobilehomes. The cost of these upgrades can be expensive,
upwards of $28,000 per mobilehome according to one utility
estimate; though when spread over all the utility customers it
will be reasonable, according to the CPUC.
This bill is concerned with the permitting for the replacement
of the relatively short run of electric and gas lines from the
customer meter located at or near the individual mobilehome
space to the mobilehome itself. This bill eliminates the need
for an upfront HCD permit, as the time to acquire such a permit
can be lengthy, especially when the mobilehome owner does not
AB 682 (Williams) Page 3 of ?
have clear title. That would likely hold up the utility
replacement for the entire park, as it is most economical for
the crews to complete an entire park at once, rather than
piecemeal the retrofit.
Safety inspection required. The bill requires HCD to inspect
all the work accomplished under this bill. This seems to be
necessary for public safety, given California's recent history
with natural gas service and the wide variation in the
serviceability of mobilehomes.
Double-referral. The Rules Committee has referred this bill to
both this committee and the Senate Energy, Utilities and
Communications Committee.
Related Legislation:
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. This bill is pending in the Senate Transportation and
Housing Committee.
AB 999 (Daly) - establishes due-process requirements for
mobilehome park owners seeking to dispose of an abandoned
mobilehome without first being required to pay any unpaid
property taxes on the mobilehome. This bill is also being heard
in this committee today.
Assembly Votes:
Floor: 75-0
Appr: 15-0
H&CD: 5-1
FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes
Local: No
POSITIONS: (Communicated to the committee before noon on
Wednesday,
June 17, 2015.)
SUPPORT:
AB 682 (Williams) Page 4 of ?
Western Manufactured Housing Communities Association (sponsor)
Golden State Manufactured Home Owners League
OPPOSITION:
None received
-- END --