BILL ANALYSIS Ó
AB 1830
Page 1
Date of Hearing: April 16, 2012
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Steven Bradford, Chair
AB 1830 (V.M. Perez) - As Amended: February 22, 2012
SUBJECT : Water service: mobilehome parks.
SUMMARY : Authorizes the California Public Utilities Commission
(PUC), if it finds that a mobilehome park has charged an unjust
or unreasonable rate for tenant water services, to order the
mobilehome park to reimburse the complainant. Specifically,
this bill :
1)Authorizes the PUC, if it finds, after investigation to order
a mobilehome park to reimburse a current or former tenant and
any other current and former tenants if a mobilehome park
charged an unjust and unreasonable rate.
2)Prevents assignments of claims on the reimbursement except in
the case it shall not recognize by operation of law as in
cases of death, insanity, bankruptcy, receivership, or order
of court.
EXISTING LAW
1)Authorizes the PUC to regulate public utilities, including
water corporations.
2)Places mobilehome parks that provides water service only to
its tenants from water supplies and facilities that it owns,
not otherwise dedicated to public service under the
jurisdiction of the commission with respect to complaints
about water rates charged or service provided by the
mobilehome park.
3)Authorizes the commission to determine whether the rates
charged are just and reasonable and whether the service
provided is adequate.
4)Authorizes the commission to afford rate relief or to order
the mobilehome park to improve its water supply, facilities,
and services on those terms that it finds just and reasonable,
or both.
AB 1830
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5)Requires mobilehome park owners to notice tenants of the right
to file complaints when new tenants move in and when water
rates or services change.
6)Requires the notice of rates to be made available to English,
Spanish, and in the language spoken by any non-English
speaking group that exceed 10 percent of the persons served by
the mobilehome park owner.
7)Establishes civil penalties of $1,000 per day for failure to
provide rate notices to tenants.
FISCAL EFFECT : Unknown
COMMENTS :
1)Author's Statement: The proposed legislation aims to ensure
that the same rights and protections enjoyed by customer of
investor owned utilities are provided to mobilehome park
residents receiving water from the mobilehome park where they
live.
2)Sunbird Complaint . The PUC received a complaint in 2009 by
tenants residing in a mobilehome park called Sunbird
Mobilehome Park, located in Thermal, California. The park used
an inclining block rate system, similar to that which is
required for residential electricity customers. The residents
were unable to pay the high rates for water, sometimes in
excess of $500 per month. The residents were faced with
eviction.
3)PUC Suspends Sunbird's rates. The PUC determined that the
facility's differential between Tier 3 and Tier 1 rates were
over 2,000%. The PUC issued a ruling that the rates were
unjust and unreasonable. The PUC determined rates that were
reasonable to be used by the park.
4)PUC could not order restitution. The PUC determined that it
lacked authority to order restitution to the residents.
5)The bill provides that former tenants may be reimbursed if the
PUC finds that the water rates were unjust and unreasonable.
The author may wish to establish a time limit on claims so
that claims may not be made if the tenant has not resided in
the mobilehome park for more than 5 years.
AB 1830
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6)The author may also wish to include a requirement that
mobilehome park notices provide information on water rates and
services, specifically:
a) Notify new tenants of water rates.
b) Notify existing tenants of water rate changes.
c) Notify all tenants of their right to file a complaint
with the PUC.
d) Specify that notices be provided in English, Spanish,
and in the language spoken by any non-English speaking
group if the population of that group exceeds 10% of the
persons residing in the mobilehome park.
e) Specify that mobilehome park owners failing to give
notice, as required, will be liable for up to $1,000 per
day in civil penalties.
REGISTERED SUPPORT / OPPOSITION :
Support
California Public Utilities Commission (CPUC) (if amended)
California Rural Legal Assistance Foundation (CRLAF)
Comite Civico
Consumer Federation of California
Division of Ratepayer Advocates (DRA)
Promotores Comunitarios del Desierto
The Utility Reform Network (TURN)
Opposition
Western Manufactured Housing Communities Association (WMA)
(unless amended)
Analysis Prepared by : Susan Kateley / U. & C. / (916)
319-2083