BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1830
                                                                  Page  1

          Date of Hearing:   May 2, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

               AB 1830 (V. Manuel Perez) - As Amended:  April 23, 2012 

          Policy Committee:                              
          UtilitiesVote:12-0

          Urgency:     No                   State Mandated Local Program: 
          Yes    Reimbursable:              No

           SUMMARY  

          This bill increases consumer protections for tenants of a 
          mobilehome park that provides its own water service. 
          Specifically, this bill:

          1)Requires the Public Utilities Commission (PUC), if it 
            determines that a mobilehome park providing its own water 
            service has charged an unreasonable rate, to order 
            reimbursement to the complainant and any other affected 
            current and former tenants.

          2)Allows a former tenant of a mobilehome park that provides its 
            own water service to file a complaint regarding an unjust rate 
            or the quality of service, if the tenant resided in the park 
            within the previous five years.

          3)Requires a mobilehome park that provides its own water service 
            to provide written notice, as specified, to each tenant 
            informing them of their right to file a complaint with the PUC 
            about their water charges or water service.

          4)Makes a mobilehome park that fails to comply with (3) civilly 
            liable for up to $1,000 for each day it fails to provide the 
            notice.

           FISCAL EFFECT  

          The PUC assumes the bill will likely encourage the filing of 
          more complaints against mobilehome parks. Related workload 
          includes reviewing and analyzing just and reasonable expenses 
          and capital costs of the mobilehome park's water system and the 








                                                                  AB 1830
                                                                  Page  2

          rates being charged, in addition to processing the filing, 
          conducting hearings, drafting a proposed decision, if necessary, 
          and implementing that decision. Annual special fund costs are 
          estimated at around $440,000 for two utility engineers and an 
          administrative law judge. (The PUC indicates that one just 
          recent complaint required 0.3 personnel years of staff time.)

           COMMENTS  

           1)Background  . Current law places under PUC jurisdiction any 
            mobilehome park that provides water service to its tenants 
            from water supplies and facilities that it owns, and 
            authorizes the commission to determine whether those rates are 
            just and reasonable and whether the service is adequate.


            In 2009, the PUC received a complaint by tenants of a 
            mobilehome park in Thermal, California. The park used an 
            inclining block rate system, similar to that required for 
            residential electricity customers. The residents were unable 
            to pay the high rates for water-sometimes in excess of $500 
            per month-and were faced with eviction. The PUC determined 
            that the facility's differential between Tier 3 and Tier 1 
            rates were over 2,000%, issued a ruling that the rates were 
            unjust and unreasonable, and PUC determined rates that were 
            reasonable to be used by the park. The commission determined, 
            however, that it lacked authority to order restitution to the 
            residents.


           2)Purpose  . AB 1830 is intended to ensure that the same rights 
            and protections enjoyed by customer of investor owned 
            utilities are provided to those mobilehome park residents 
            receiving water directly from their park. 

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081