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