BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 1163| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 445-6614 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: SB 1163 Author: Dunn (D) Amended: 3/26/04 Vote: 21 SENATE HOUSING & COMM. DEV. COMMITTEE : 6-2, 3/22/04 AYES: Ducheny, Alarcon, Cedillo, Dunn, Florez, Torlakson NOES: Hollingsworth, Ackerman NO VOTE RECORDED: Vacancy SENATE ENERGY, UTILITIES & COM. COMMITTEE : 5-1, 4/13/04 AYES: Bowen, Alarcon, Dunn, Murray, Sher NOES: McClintock NO VOTE RECORDED: Morrow, Battin, Vasconcellos SENATE APPROPRIATIONS COMMITTEE : 7-5, 4/26/04 AYES: Alpert, Bowen, Burton, Karnette, Machado, Murray, Speier NOES: Battin, Aanestad, Ashburn, Johnson, Poochigian NO VOTE RECORDED: Escutia SUBJECT : Utilities SOURCE : Author DIGEST : This bill requires the State Public Utilities Commission to accept and investigate, as necessary, complaints made by sub-metered mobilehome park or apartment complex customers alleging violations of master-meter responsibilities, and makes related changes. CONTINUED SB 1163 Page 2 ANALYSIS : Current law requires master-meter customers to separately state the opening and closing readings for sub-metered mobilehome park customers when rendering a bill, and to post the prevailing residential utilities rate schedule of the serving utility. This bill requires that when the master-meter customer renders such a bill, it shall be generally in the form and with the content of the bills the utility serving the master-meter customer renders to its residential customers. This bill requires mobilehome parks to disclose the name, address and telephone number of the billing agent or company on each resident's billing if a third-party billing agent or company prepares utility bills for the park. Current law establishes requirements about the rates charged by a master-meter customer to its sub-metered tenants, specifies the general form and content of the bills rendered by the master-meter customer, and makes it a duty of master-meter customers to maintain and repair the facilities between the master-meter and the sub-metered tenant. This bill requires the State Public Utilities Commission (PUC), through its consumer affairs branch, to accept and respond to complaints concerning these requirements. Comments Typically, a master-meter customer is a multi-unit dwelling, such as a mobilehome park or an apartment complex, where the park or complex is the customer of the utility and pays the utility bill. The park or complex is responsible for the electric, gas, or water system within the park or complex, and separately meters and bills the tenants for their individual utility usage. There are approximately 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 hook-ups. In most parks, utility service is provided by the park owner SB 1163 Page 3 to individual mobilehome spaces through a "master-meter" system. 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. In 2001, the committee held a hearing on this issue and heard complaints regarding metering inaccuracies, billing mistakes, an inability to contact the billing company, failure to pass through utility rebates, and the imposition of meter-reading fees. The first part of this bill requires the PUC to accept and respond to complaints concerning master-meter customers. While this appears unnecessary because the PUC is the enforcement authority for the Public Utilities Code, the author's office notes the PUC has been unwilling or unable to perform this function. This part of the bill eliminates any ambiguity by making it clear the PUC is responsible for handling complaints filed by sub-metered customers. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No PUC staff estimate increased costs of $300,000 annually. The Public Utilities Reimbursement Account revenues are derived from an annual fee imposed on public utilities. Therefore, any increased costs should be offset by increased fee revenues. SUPPORT : (Verified 4/28/04) California Mobilehome Resource and Action Association Golden State Manufactured-Home Owners League, Inc. OPPOSITION : (Verified 4/28/04) California Mobilehome Parkowners Alliance Western Manufactured Housing Communities Association NC:cm 4/28/04 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE SB 1163 Page 4 **** END ****