BILL ANALYSIS
SB 1612
Page 1
SENATE THIRD READING
SB 1612 (Chesbro)
As Amended May 15, 2000
Majority vote
SENATE VOTE :35-1
HOUSING 9-0
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|Ayes:|Lowenthal, House, Aroner, | | |
| |Dutra, Knox, Mazzoni, | | |
| |Runner, Torlakson, | | |
| |Wildman | | |
|-----+--------------------------+-----+--------------------------|
| | | | |
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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)).
SB 1612
Page 2
FISCAL EFFECT : Unknown
COMMENTS : Mobilehome owners use liquefied petroleum gas, also
known as propane, to heat their homes. Although it serves the
same 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% 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.
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 Chapter 326 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.
Analysis Prepared by : Chereesse Thymes / H. & C.D. / (916)
319-2085
FN: 0005500