BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session SB 1106 (Leyva) - Mobilehome parks ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: February 17, 2016 |Policy Vote: T. & H. 11 - 0, | | | JUD. 7 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: May 2, 2016 |Consultant: Mark McKenzie | | | | ----------------------------------------------------------------- This bill does not meet the criteria for referral to the Suspense File. Bill Summary: SB 1106 would authorize the Department of Housing and Community Development (HCD) and specified local enforcement agencies to issue a citation to mobilehome park owners or operators and mobilehome owners when the responsible party has failed to correct specified health and safety violations, as specified. Civil penalties would range from $100 to $500, as noted below. Fiscal Impact: HCD staffing costs of approximately $240,000 for two additional staff for an anticipated increase in administrative workload associated with informal conferences, hearings, and appeals proceedings related to the new citation authority. (Mobilehome-Manufactured Home Revolving Fund) SB 1106 (Leyva) Page 1 of ? Estimated HCD staff cost savings of approximately $20,000 to $40,000 annually associated with a reduction in second reinspections associated with health and safety violations, to the extent the new fines act as an incentive for owners and operators to correct violations. (Mobilehome-Manufactured Home Revolving Fund) Estimated HCD fine and fee revenue gains, potentially in excess of $300,000 initially, due to new citation authority. These revenue gains would likely decrease in future years as compliance increases. (Mobilehome-Manufactured Home Revolving Fund) Background: Existing law, The Mobilehome Parks Act (MPA), authorizes HCD to regulate mobilehome parks to assure the protection of the health, safety, and general welfare of all mobilehome park residents. HCD has adopted statewide regulations to this end, covering both park owners and park residents. Local agencies have the option of assuming enforcement authority within their jurisdictions through an agreement with HCD. Currently, HCD exercises enforcement authority over approximately 4,200 mobilehome parks, and local agencies - about 70 in total - enforce the act and its regulations in just over 1,000 parks. One of the duties of enforcement agencies is performing health and safety inspections of mobilehome parks. If an enforcement agency, upon inspection, determines that a mobilehome park is in violation of any provision of the MPA or applicable regulations, the enforcement agency issues a notice to correct the violation to the owner or operator of the mobilehome park and to the responsible person, as specified. The owner or operator of the mobilehome park is responsible for the correction of these violations. If an enforcement agency determines that a mobilehome, an accessory building or structure, or lot is in violation of specified provisions of the MPA or applicable regulations, the enforcement agency must issue a notice to correct the violation to the mobilehome owner and occupant. The mobilehome owner is responsible for the correction of these violations. If the owner or operator of the mobilehome park or the mobilhome owner disputes a determination by the enforcement agency regarding a violation, the failure to correct the violation in SB 1106 (Leyva) Page 2 of ? the required timeframe, or the reasonableness of the deadline for correction specified by the notice of violation, the park owner/operator or mobilehome owner may request an informal conference with the enforcement agency. The informal conference, and any subsequent hearings or appeals of the decision of the enforcement agency, shall be conducted in accordance with procedures prescribed by HCD. Existing law establishes that a willful violation of the portions of the Health and Safety Code or HCD regulations related to mobilehome parks is a misdemeanor, punishable by a $400 fine or 30 days in prison. Any person who willfully violates these provisions and regulations is also liable for a civil penalty of $500 for each day of a continuing violation. Proposed Law: SB 1106 would authorize HCD or a local enforcement agency to issue a citation that assesses a civil penalty to a park owner or operator, or mobilehome owner or other responsible party, who violates the MPA or applicable regulations, if that person has permitted the continuation of a violation at least 30 days after the expiration of a notice to correct the violation. This bill specifies the amount of the civil penalty at $100 for violations determined to be a hazard constituting an unreasonable risk to life, health, or safety, and increases the penalty to $250 for each subsequent violation within one year of the first violation. For violations determined to be an imminent hazard representing an immediate risk to life, health, or safety requiring immediate correction, the civil penalty would be $250, and $500 for each subsequent violation within one year of the first violation. Payment must be remitted to the enforcement agency within 45 days. SB 1106 would also authorize a park owner/operator or resident to petition the enforcement agency to dismiss or modify the citation within 30 days of issuance, and require the enforcement agency to hold an informal hearing when it receives a petition showing good cause, as specified. A park owner/operator or mobilehome owner who receives a final determination from an enforcement agency may subsequently petition HCD to review and investigate the enforcement activities. HCD must consider the petition and initiate corrective actions, as specified. SB 1106 (Leyva) Page 3 of ? Staff Comments: Current enforcement authority for violations of the MPA do not appear to serve as a sufficient incentive for park owners/operators or mobilehome owners to take corrective action. Enforcement data from HCD's Mobilehome Park Maintenance and Inspection Task Force indicates that in 2015, 5,040 notices of violation were issued to park owners, of which 2,723 had been uncorrected by January 2016, and 10,860 notices were issued to mobilehome owners, of which 5,317 went uncorrected. In addition, 168 of the 216 mobilhome parks inspected in 2014 required 599 reinspections by enforcement agencies to correct violations found during initial inspections. The average HCD inspection costs are $196 per inspection, and the costs for reinspection are not recoverable. HCD estimates that the citation authority provided by SB 1106 could result in the collection of approximately $319,000 initially, based upon a $100 citation level using the amount of violations that remained uncorrected after a second park reinspection. The revenues from citations would be lower in subsequent years, to the extent the citation authority serves as an incentive to correct violations and compliance increases. HCD also indicates that it is likely to conduct 100-200 fewer reinspections annually with increased compliance, resulting in inspection staff savings of approximately $20,000 to $40,000 per year. HCD would also incur additional administrative costs to conduct informal hearings from park owners and mobilehome operators petition the department to review a citation, and subsequent investigations and formal appeals. These new activities would require the addition of two new staff to handle the administrative workload at a cost of approximately $240,000 annually. -- END -- SB 1106 (Leyva) Page 4 of ?