BILL ANALYSIS
SB 476
Page 1
SENATE THIRD READING
SB 476 (Chesbro)
As Amended June 29, 1999
Majority vote
SENATE VOTE :27-9
HOUSING 10-0
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|Ayes:|Lowenthal, House, Battin, | | |
| |Corbett, Dutra, Margett, | | |
| |Mazzoni, Runner, | | |
| |Torlakson, Wildman | | |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Caps the price a mobilehome operator may charge a
resident for liquefied petroleum gas to 110% of the actual price
paid by the operator. Specifically, this bill :
1)Includes intent language, which states that liquefied
petroleum gas (LPG) is an important source of heat for
mobilehome owners, and that many park owners require
homeowners to purchase the gas from the park owner.
2)Specifies that the 110% cap shall only apply to mobilehome
parks that do not allow homeowners to purchase LPG from
sources other than park management.
3)Requires park management to post the price paid by management
for LPG that it will then sell to homeowners.
4)Applies only to mobilehome parks regulated under the
Mobilehome Residency Law.
EXISTING LAW allows park management to require a resident
wishing to purchase LPG to make the purchase solely from
management at an unregulated price.
FISCAL EFFECT : None
COMMENTS : This bill addresses the issue of LPG pricing by
mobilehome parks whose tenants have no alternative but to
purchase LPG from the park owner. This bill limits the amount a
SB 476
Page 2
park owner may charge for the sale of LPG to 110% of the price
paid by the park owner for the LPG. The author believes that
the 10% margin above the purchase price would allow the park
operator to cover the costs associated with storing and
delivering the gas to residents. The author concedes that the
10% figure was not derived scientifically. He has tried to
contact persons in the mobilehome industry in order to obtain
input but has had no success.
Analysis Prepared by : Patrick O'Donnell / H. & C.D. /
(916)319-2085
FN:
0001989