SF 1472

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 04/01/2024 01:46pm

A bill for an act
relating to manufactured homes; amending provisions related to utility billing
practices in manufactured home parks; amending Minnesota Statutes 2022, sections
103G.291, subdivision 4; 327C.015, subdivision 17, by adding subdivisions;
327C.04, subdivisions 1, 2, by adding subdivisions; repealing Minnesota Statutes
2022, section 327C.04, subdivision 4.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2022, section 103G.291, subdivision 4, is amended to read:

Subd. 4.

Demand reduction measures.

(a) For the purposes of this section, "demand
reduction measures" means measures that reduce water demand, water losses, peak water
demands, and nonessential water uses. Demand reduction measures must include a
conservation rate structure, or a uniform rate structure with a conservation program that
achieves demand reduction. A "conservation rate structure" means a rate structure that
encourages conservation and may include increasing block rates, seasonal rates, time of use
rates, individualized goal rates, or excess use rates. If a conservation rate is applied to
multifamily dwellings or a manufactured home park, as defined in section 327C.015,
subdivision 8, the rate structure must consider each residential unit as an individual user.

(b) To encourage conservation, a public water supplier serving more than 1,000 people
must implement demand reduction measures by January 1, 2015.

EFFECTIVE DATE.

This section is effective August 1, 2024, and applies to a billing
period that begins on or after that date.

Sec. 2.

Minnesota Statutes 2022, section 327C.015, is amended by adding a subdivision
to read:

Subd. 3a.

Commodity rate.

"Commodity rate" means the per unit price for utility service
that varies directly with the volume of a resident's consumption of utility service and that
is established or approved by the Minnesota Public Utilities Commission or a municipal
public utilities commission, an electric cooperative association, or a municipality and charged
to a user of the service.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 3.

Minnesota Statutes 2022, section 327C.015, is amended by adding a subdivision
to read:

Subd. 11a.

Public utility.

"Public utility" has the meaning given in section 216B.02,
subdivision 4.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 4.

Minnesota Statutes 2022, section 327C.015, subdivision 17, is amended to read:

Subd. 17.

Substantial modification.

"Substantial modification" means any change in
a rule which: (a) significantly diminishes or eliminates any material obligation of the park
owner; (b) significantly diminishes or eliminates any material right, privilege or freedom
of action of a resident; or (c) involves a significant new expense for a resident. The
installation of water and sewer meters and the subsequent metering of and billing for water
and sewer service is not a substantial modification of the lease, provided the park owner
complies with section 327C.04, subdivision 6.

EFFECTIVE DATE.

This section is effective for meter installations initiated on or
after August 1, 2023.

Sec. 5.

Minnesota Statutes 2022, section 327C.015, is amended by adding a subdivision
to read:

Subd. 17a.

Utility provider.

"Utility provider" means a public utility, an electric
cooperative association, or a municipal utility.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 6.

Minnesota Statutes 2022, section 327C.04, subdivision 1, is amended to read:

Subdivision 1.

Billing permitted.

A park owner who either provides utility service
directly to residents or who redistributes to residents utility service provided to the park
owner by a utility provider may charge the residents for that service, only if the charges
comply with this section.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 7.

Minnesota Statutes 2022, section 327C.04, subdivision 2, is amended to read:

Subd. 2.

Metering required.

A park owner who charges residents for a utility service
must charge each household the same amount, unless the park owner has installed measuring
devices which accurately meter each household's use of the utility. Utility measuring devices
installed by the park owner must be installed or repaired only by a licensed plumber, licensed
electrician, or licensed manufactured home installer.

EFFECTIVE DATE.

This section is effective August 1, 2023, and applies to meters
installed or repaired on or after that date.

Sec. 8.

Minnesota Statutes 2022, section 327C.04, is amended by adding a subdivision to
read:

Subd. 5.

Utility charge for metered service.

(a) A park owner who redistributes utility
service may not charge a resident a commodity rate that exceeds the commodity rate at
which the park owner purchases utility service from a utility provider. Before billing residents
for redistributed utility service, a park owner must deduct utility service used exclusively
or primarily for the park owner's purposes.

(b) If a utility bill that a park owner receives from a utility provider separates from
variable consumption charges a fixed service or meter charge or fee, taxes, surcharges, or
other miscellaneous charges, the park owner must deduct the park owner's pro rata share
of these separately itemized charges and apportion the remaining fixed portion of the bill
equally among residents based on the total number of occupied units in the park.

(c) A park owner may not charge to or collect from residents any administrative, capital,
or other expenses associated with the distribution of utility services, including but not limited
to disconnection, reconnection, and late payment fees.

EFFECTIVE DATE.

This section is effective July 1, 2023.

Sec. 9.

Minnesota Statutes 2022, section 327C.04, is amended by adding a subdivision to
read:

Subd. 6.

Rent increases following the installation of water meters.

A park owner may
not increase lot rents for 13 months following the commencement of utility bills for a resident
whose lease included water service. In each of the three months prior to commencement of
utility billing, a park owner must provide the resident with a sample bill for water service.

EFFECTIVE DATE.

This section is effective August 1, 2023, and applies to meter
installations initiated on or after that date.

Sec. 10. REPEALER.

Minnesota Statutes 2022, section 327C.04, subdivision 4, is repealed.

EFFECTIVE DATE.

This section is effective July 1, 2023.

APPENDIX

Repealed Minnesota Statutes: S1472-1

327C.04 UTILITY CHARGES.

No active language found for: 327C.04.4