BILL ANALYSIS Ó
AB 1830
Page 1
ASSEMBLY THIRD READING
AB 1830 (V. Manuel Pérez)
As Amended May 25, 2012
Majority vote
UTILITIES & COMMERCE 12-0
APPROPRIATIONS 16-0
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|Ayes:|Bradford, Buchanan, Fong, |Ayes:|Fuentes, Harkey, |
| |Fuentes, Gorell, Roger | |Blumenfield, Bradford, |
| |Hernández, Huffman, | |Charles Calderon, Campos, |
| |Knight, Nestande, | |Davis, Gatto, Ammiano, |
| |Skinner, Swanson, Valadao | |Hill, Lara, Mitchell, |
| | | |Nielsen, Norby, Solorio, |
| | | |Wagner |
|-----+--------------------------+-----+--------------------------|
| | | | |
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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 investigation only if at least 10% of the
current population of a mobilehome park complains.
2)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.
3)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.
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.
5)Requires mobilehome park owners to notice tenants of the right
AB 1830
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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% 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.
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 PUC to determine whether the rates charged are
just and reasonable and whether the service provided is
adequate.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, annual special fund costs to the PUC of $115,000 for
a utilities engineer to investigate additional complaints.
ÝPublic Utilities Reimbursement Account]
COMMENTS :
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.
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,
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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.
PUC Suspends Sunbird's rates . The PUC determined that the
facility's differential between Tier 3 and Tier 1 rates were
over 2,000%. PUC issued a ruling that the rates were unjust and
unreasonable. The PUC determined rates that were reasonable to
be used by the park.
PUC could not order restitution . The PUC determined that it
lacked authority to order restitution
to the residents. The bill provides that former tenants may be
reimbursed if the PUC finds that the water rates were unjust and
unreasonable.
Analysis Prepared by : Susan Kateley / U. & C. / (916)
319-2083
FN: 0003936