BILL ANALYSIS SENATE HOUSING & COMMUNITY DEVELOPMENT COMMITTEE Senator Denise Moreno Ducheny, Chair Bill No: SB 1163Hearing: March 22, 2004 Author: DunnFiscal: Yes Version: February 2, 2004Consultant: Mark Stivers MASTER-METER UTILITIES Background and Existing Law : There are about 4,850 mobilehome parks and manufactured housing communities in California with over 375,000 spaces housing more than 600,000 people. Each mobilehome space consists of a utility pedestal for electric and gas as well as sewer and water hookups. In most parks utility service is provided by the park owner to individual mobilehome spaces through a "master-meter" system, with a public utility providing gas, electricity and sometimes water to the park master-meter but not to individual park spaces. The park operates and controls the utility system within the park, distributing electricity and gas to individual spaces in the park that is submetered. The park operator maintains the park utility system, reads the submeters where applicable, and bills the residents. Many parks hire billing companies or agents to perform these functions. Under the Public Utilities Code, mobilehome park owners and apartment owners who operate master-meters must provide each submetered resident with an itemized bill generally in accordance with the form and content of bills provided directly by the utility to its customers. In addition, the master-meter customer must bill submetered residents at the same rate that the residents would pay if they purchased directly from the utility. If the master-meter customer receives rebates from the utility, they must also be passed on to each resident proportional to use. While the Public Utilities Commission (PUC) generally enforces provisions of this code, there seems to be disagreement as to whether or not the Commission has the authority or has been willing to accept and investigate complaints alleging violations of master meter responsibilities. SB 1163 Page 2 The Mobilehome Residency Law (MRL) in the Civil Code also contains some provisions relating to master-meter operators in mobilehome parks. A park owner who operates a master-meter must provide the opening and closing meter readings and separately stated the utility charges. In addition, the management must post in a conspicuous place the prevailing residential utilities rate schedule as published by the serving utility. The MRL is enforced through private legal action in the courts. Proposed Law : Senate Bill 1163 requires the California Public Utilities Commission to accept and respond to complaints from tenants of a mobilehome park or apartment building regarding violations of state master-meter requirements. With respect to the Mobilehome Residency Law, the bill adds language from the Public Utilities Code that requires master-meter utility billing statements to comply generally with the form and content of the bills that the utility provides to its residential customers directly. The bill also requires mobilehome park owners who use third-party agents to bill master-meter residents to disclose on each bill the name, address, and phone number of the billing agent. Comments : 1. Purpose of the bill . Over the years the Senate Select Committee on Mobile and Manufactured Homes has received a number of complaints from mobilehome park residents about master-meter relationships with park owners, and in 2001 the committee held a hearing exclusively on this issue. The complaints allege inaccuracies in metering, incorrect billing charges, inability to contact the billing company, failure to pass through rebates, and the imposition of meter-reading fees. At the heart of the issue is the difficulty residents have experienced in enforcing existing laws. The author's office has had difficulty getting the PUC to accept and investigate and respond to master-meter complaints from submeter residents, and civil lawsuits by residents against park owners are often not cost-effective or practical. In order to ensure enforcement of the law, SB 1163 Page 3 this bill requires the PUC to accept and respond to complaints about master-meter operators alleging violations of the Public Utilities Code. 2. Clarifying potential confusion . There seems to be confusion over the authority and willingness of the PUC to accept complaints from submeter residents about master-meter violations. The commission staff says that the PUC has accepted complaints for submeter residents for ten years through the informal and formal complaint process administered by their Consumer Affairs Branch. According to the author, however, PUC representatives contacted about specific cases have responded that the commission does not have the authority to oversee master-meter complaints, and complaints that have been filed have been rejected based on lack of jurisdiction rather than the merits of the complaint. This bill seeks to resolve any potential confusion by explicitly stating that the PUC is required to accept and respond to complaints from tenants of a mobilehome park or apartment building regarding violations of state master-meter requirements. 3. Getting to the right folks . The bill requires the PUC to respond to master-meter complaints through its office of the public advisor. According to PUC staff, the existing complaint process is handled by the commission's Consumer Affairs Branch. The committee may wish to consider an amendment to direct complaints to the Consumer Affairs Branch of the PUC. Support and Opposition : (3/17/04) Support : Golden State Mobilehome Owners League, Inc. Opposition : None received