BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1612
                                                                  Page  1

          Date of Hearing:   June 28, 2000

              ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT 
                                Alan Lowenthal, Chair
                    SB 1612 (Chesbro) - As Amended:  May 15, 2000

           SENATE VOTE  :   35-1
           
          SUBJECT  :   Mobilehome parks:  liquefied petroleum gas

           SUMMARY  :   Expands the current statutory limitation on the price  
          that mobilehome park owners may charge tenants for liquefied  
          petroleum gas to cases where laws or regulations prohibit  
          tenants from installing their own propane tanks.  Specifically,  
           this bill  :   

          1)Applies provisions of existing law that limit the price that  
            mobilehome park owners may charge tenants for liquefied  
            petroleum gas to 110% of the purchase price paid in parks  
            where federal, state, or local laws prohibit tenants from  
            installing their own gas supply tanks.

          2)Requires park management to post a sign in the park that  
            indicates the price paid by management for the gas in parks  
            where federal, state, or local laws prohibit tenants from  
            installing their own gas supply tanks.

           EXISTING LAW  

          1)Prohibits the management of a mobilehome park from charging  
            park residents more than 110% of the actual price it paid for  
            liquefied petroleum gas, if the management of the park does  
            not permit residents to purchase gas from a source other than  
            the park management (Civil Code Section 798.44(a)).  

          2)Requires the management of a mobilehome park to post the  
            actual price paid by the management for liquefied petroleum  
            gas that it sells (Civil Code Section 798.44(b)).  

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

          Mobilehome owners use liquefied petroleum gas, also known as  
          propane, to heat their homes.  Although it serves the same  








                                                                  SB 1612
                                                                  Page  2

          purpose as natural gas used in traditional homes, the retail  
          price of natural gas is regulated but the retail price of  
          propane is not.

          In 1993, the California Public Utilities Commission estimated  
          that about 40 percent of the state's approximately 1,200  
          mobilehome parks operated multi-customer heating systems,  
          allowing residents to purchase propane only from the park owner.  
           

          Last year, the Legislature passed SB 476 (Chesbro), Chapter 326,  
          Statutes of 1999 which capped the price that mobilehome park  
          management may charge residents at 110% of the purchase price.   
          The goal of the legislation was to protect tenants from monopoly  
          prices because they could only purchase propane from the park  
          management.  The law exempts parks where tenants are allowed to  
          purchase propane from alternative sources because competition  
          would keep prices down.

           Arguments in support:
           The author says that there is a loophole in the existing law  
          that allows for the sale of liquefied petroleum gas at a price  
          higher than 110% in cases where federal, state, and local laws  
          prohibit tenants from installing their own propane tanks.  

          The author says that since SB 476 passed last year, some park  
          owners have posted notices stating that residents may purchase  
          liquefied petroleum gas from other sources, however, because of  
          state and local laws requiring setbacks, these residents are not  
          allowed to have their own petroleum gas tanks.

           REGISTERED SUPPORT / OPPOSITION  :

           Support  
           
           Golden State Mobilehome Owners League

           Opposition  

          None on file


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