BILL ANALYSIS                                                                                                                                                                                                    Ó

          |SENATE RULES COMMITTEE            |                        AB 682|
          |Office of Senate Floor Analyses   |                              |
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                                   THIRD READING 

          Bill No:  AB 682
          Author:   Williams (D)
          Amended:  6/25/15 in Senate
          Vote:     27 - Urgency

           SENATE TRANS. & HOUSING COMMITTEE:  10-0, 6/23/15
           AYES:  Beall, Cannella, Allen, Bates, Gaines, Galgiani, Leyva,  
            Mendoza, Roth, Wieckowski
           NO VOTE RECORDED:  McGuire

           AYES:  Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen

           ASSEMBLY FLOOR:  75-0, 5/22/15 - See last page for vote

           SUBJECT:   Mobilehome park:  electric and gas service:   
                     master-meter customers

          SOURCE:    Author

          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  


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            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. 

          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  
          those can only be issued if the owner can demonstrate that  
          he/she 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  


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                                                                    Page  3

          -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  
          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.  This 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.

          FISCAL EFFECT:   Appropriation:    Yes         Fiscal  
          Com.:YesLocal:   No

          According to the Senate Appropriations Committee, HCD staffing  
          costs of $952,000 in 2015-16, $928,000 in 2016-17, and $464,000  
          in 2017-18 for eight PY to perform construction inspections of  
          mobilehome utility meter installations in conjunction with the  
          Mobilehome Park Utility Upgrade Pilot Program.   
          (Mobilehome-Manufactured Home Revolving Fund)

          All costs are expected to be fully offset by inspection fee  
          revenues.  Position and fee authority for 2015-16 and 2016-17  
          was approved as part of the 2015 Budget Act. 

          SUPPORT:   (Verified7/14/15)

          Golden State Manufactured Home Owners League


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          Western Manufactured Housing Communities Association

          OPPOSITION:   (Verified7/14/15)

          None received

          ASSEMBLY FLOOR:  75-0, 5/22/15
          AYES:  Achadjian, Travis Allen, Baker, Bigelow, Bloom, Bonilla,  
            Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau,  
            Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly,  
            Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina  
            Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez,  
            Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden,  
            Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder,  
            Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina,  
            Melendez, Mullin, Nazarian, Obernolte, Patterson, Perea,  
            Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago,  
            Steinorth, Mark Stone, Thurmond, Ting, Wagner, Wilk, Williams,  
            Wood, Atkins
          NO VOTE RECORDED:  Alejo, O'Donnell, Olsen, Waldron, Weber

          Prepared by:Randy Chinn / T. & H. / (916) 651-4121
          7/15/15 17:39:22

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