BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1163
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          Date of Hearing:   June 9, 2004

               ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
                                Alan Lowenthal, Chair
                      SB 1163 (Dunn) - As Amended:  May 27, 2004

           SENATE VOTE  :   23-13
           
          SUBJECT  :   Mobilehome park:  utilities.

           SUMMARY  :  This bill makes changes to the utility statements  
          provided by the management of a mobilehome park to residents and  
          requires the consumer affairs branch of the California Public  
          Utilities Commission to accept and respond to complaints made by  
          submetered customers in mobilehome parks or apartment complexes.  
            Specifically,  this bill  :   

          1)Requires management to provide residents who receive master  
            meter and submeter utility services a bill for electricity and  
            gas services which identifies all rates and quantities  
            attributable to each block in the attributable rate structure  
            as if the resident were receiving services directly from the  
            utility company. 

          2)Requires management to disclose the name, address, and the  
            telephone number of a third-party billing agent or company  
            that prepares the utility billing for the park on each billing  
            statement.

           EXISTING LAW  

          1)Requires master meter customers to provide the opening and  
            closing readings for submetered mobilehome park customers each  
            billing period. (Civil Code Section 798.38)

          2)Requires management to post the residential utilities rate  
            schedule as published by the utility company. (Civil Code  
            Section 798. 38)

          3)Establishes requirements regarding the rates charged by master  
            meter customers to submetered tenants, specifies the general  
            form and content of the bills rendered by the master meter  
            customer, and makes it a duty of mater-meter customers to  
            maintain and repair the facilities between the master meter  
            and the submetered tenant. 








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            (Public Utilities Code Section 739.5)

           FISCAL EFFECT  :   Unknown.

           COMMENTS  :   

           Background:  There are approximately 4,850 mobilehome parks and  
          manufactured communities in California, which house 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  
          spaces.   The park operator maintains the park utility system,  
          reads the submeters where applicable, and bills the residents.  
          Many parks hire third party billing companies or agents to  
          perform these functions.  Master meter parks receive a  
          "differential" or discount on residential rates from the utility  
          in recognition of their costs of operating and maintaining the  
          submeter system but charge residents at the same rate the  
          serving public utility would charge if it served the residents  
          directly. The differential is negotiated between the parks and  
          the serving utility and approved by the California Public  
          Utilities Commission (CPUC). The majority of statutory  
          requirements governing master meter utility systems in  
          mobilehome parks are located in the Public Utilities Codes;  
          although, there are some duplicate provisions in the Civil Code,  
          the Mobilehome Residency Law (MRL).  

          The Senate Select Committee on Mobile and Manufactured Housing  
          has received a number of complaints from residents of mobilehome  
          parks regarding their master meter service over the last few  
          years regarding the utility billing practices of the management.  
           The committee held a hearing in 2001 during which residents  
          offered numerous complaints including questions as to the  
          accuracy of park's utility billings and meter readings, the  
          inability to speak to third party billing companies regarding a  
          resident's statement, and CPUC's lack of response to individual  
          complaints from residents. 

           Clarifying the role of CPUC:
           According to the author, there is some disagreement as to CPUC's  
          authority to address resident complaints regarding their master  
          meter utility service. CPUC representatives who have been  








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          contacted by the author regarding complaints contend CPUC does  
          not have authority to oversee master meter billing practices or  
          take complaints from residents or to require parks to adhere to,  
          billing practices required by the code. CPUC representatives say  
          they can only require the serving utility to request the parks  
          to comply with the code.   In an effort to clarify and  
          strengthen the role of CPUC in dealing with complaints from  
          residents of master meter residential communities, this bill  
          specifically states the consumer affairs branch of the agency  
          will accept and respond to these complaints from residents  
          regarding violations of master meter requirements.

           Billing Statements  : 
          MRL governs interactions between mobilehome park management and  
          residents and also includes a provision relating to master meter  
          requirements that closely parallels Public Utilities Code (PUC).  
          In order to clarify the MRL this bill adds language from the PUC  
          that requires the form and content of bills provided to  
          residents by the park match that provided by the utility to the  
          master meter mobilehome park.  This language already exists in  
          the PUC but the author has received complaints from residents  
          that it is not being followed by some mobilehome parks. By  
          moving the language to the MRL the author seeks to ensure  
          enforcement. 

           Third-Party Billing  : 
          Many mobilehome parks hire third party billing companies to read  
          meters and bill residents. But, when residents have questions  
          about their bills, they do not have access to the billing  
          company. According to the author, the management cannot address  
          the questions because they do not issue the bill and management  
          generally will not provide the billing companies contact  
          information so the resident can speak with them directly. This  
          bill requires that if park management uses a third party billing  
          company they must provide the contact information of that  
          company on each bill the resident receives. 
           



          Opposition:
           The opposition argues moving the provision of the PUC code  
          regarding billing statements to the MRL will place the  
          mobilehome park owners and managers at greater civil liability  
          and will result in more lawsuits. Mobilehome park owners are  








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          subject to a $2,000 fine for violating the provisions of the  
          MRL. The opposition argues if owners do not comply with the  
          billing requirements added to the MRL they will be subject to  
          civil liability. However, the provisions added to the MRL do not  
          specify requirements as to the accuracy of the bill-this  
          provision remains in the PUC.   

          If residents believed the park management did not follow the new  
          provisions added to the MRL, they would have to prove the park  
          intentionally misread the meter. To do so the resident would  
          have to have collateral proof such as photographs with a  
          time-date-stamp indicating the meter reading. According to the  
          author, park residents who are often low income or seniors, have  
          difficulty suing a park unless they are involved in a class  
          action suit.  Court cases are costly and it is difficult to get  
          an attorney to take an individual resident's case, which has the  
          potential for limited returns.

          The opposition also contends including the section of PUC, which  
          defines the billing requirements in the MRL, is unnecessary,  
          because CPUC already enforces the requirement. The author's  
          office contends duplicating the language in the MRL will remove  
          confusion and provide uniformity in applying existing  
          requirements.  

           Double Referred  : The Assembly Committee on Rules referred SB  
          1163 to Housing and Community Development Committee and  
          Utilities and Commerce Committee.  If SB 1163 passes this  
          committee, the bill must be referred to the Assembly Committee  
          on Utilities and Commerce.  
          
           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          California Mobilehome Resource and Action Association
          Golden State Manufactured-Home Owners League

           
            Opposition 
           
          California Mobilehome Parkowners Alliance
          Western Manufactured Housing Communities Association

           Analysis Prepared by  :    Lisa Engel / H. & C.D. / (916) 319-2085  








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