SF 4579

4th Engrossment - 93rd Legislature (2023 - 2024) Posted on 05/16/2024 01:31pm

A bill for an act
relating to energy; providing for and regulating shared-metered utility service in
residential buildings; amending Minnesota Statutes 2022, sections 216B.022;
216B.098, subdivision 6; 504B.285, subdivision 4; Minnesota Statutes 2023
Supplement, section 216B.172, subdivisions 1, 2; proposing coding for new law
in Minnesota Statutes, chapters 216B; 504B; repealing Minnesota Statutes 2022,
section 504B.215.

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

Section 1.

Minnesota Statutes 2022, section 216B.022, is amended to read:

216B.022 SUBMETERING new text begin IN SHARED-METERED RESIDENTIAL BUILDINGS new text end .

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section and sections 216B.023
and 216B.024, the following terms have the meanings given.
new text end

new text begin (b) "Landlord" has the meaning given in section 504B.001, subdivision 7. Landlord
includes a third-party billing agent.
new text end

new text begin (c) "Nonresidential building" means a building that is not a residential building.
new text end

new text begin (d) "Nonusage charges" means the total of the charges on the utility bill from a utility
provider that represent all nonconsumption-based charges and fees, including but not limited
to fixed-meter or service charges, taxes, surcharges, and other fees.
new text end

new text begin (e) "Shared-metered residential building" means a residential building with multiple
separate residential dwelling units where the building's utility service is measured by fewer
meters than the number of separate dwelling units in the building. Shared-metered residential
building does not include a manufactured home park.
new text end

new text begin (f) "Submeter" means a meter that (1) is owned or installed by the landlord or by a
third-party billing agent or other agent of the landlord, and (2) measures utility service
consumed solely within an individual dwelling unit in the shared-metered residential building.
new text end

new text begin (g) "Tenant" means a person who is occupying a dwelling unit in a shared-metered
residential building under a lease or contract, whether oral or written, that requires the
payment of money or exchange of services. Tenant includes all other regular occupants of
the subject dwelling unit.
new text end

new text begin (h) "Third-party billing agent" means a person or entity, other than the property owner,
that performs one or more utility management services at a shared-metered residential
building on behalf of a landlord, including but not limited to installing submeters, reading
submeters, or handling utility billing or collections, or both.
new text end

new text begin (i) "Utility provider" means a public utility, a municipal utility, or a cooperative electric
association providing utility service.
new text end

new text begin (j) "Utility service" means natural gas and electricity.
new text end

new text begin Subd. 2. new text end

new text begin Submetering in shared-metered residential buildings. new text end

new text begin (a) A landlord of a
shared-metered residential building with installed submeters is subject to the commission's
authority under this chapter.
new text end

new text begin (b) On or after January 1, 2025, all submeters installed by a landlord to measure utility
service must meet standards established by the American National Standards Institute.
new text end

new text begin (c) All submeters, regardless of when the submeter was installed, must accurately measure
utility service.
new text end

new text begin Subd. 3. new text end

new text begin Submetering in nonresidential buildings. new text end

Nothing in this chapter grants the
commission or a public utility the authority to limit the availability of submetering to a new text begin
nonresidential new text end building occupant when the building is served by a public utility's master
meter which measures the total electric energy delivered to the building.

new text begin Subd. 4. new text end

new text begin Inaccurate submeters. new text end

new text begin (a) If a tenant notifies the landlord in writing that the
tenant suspects the submeter is incorrectly registering the tenant's utility service and includes
an explanation for the suspicion, the landlord must promptly investigate to determine whether
the submeter is inaccurate. If the submeter is inaccurate, the landlord must either repair or
replace the submeter or inform the tenant in writing why no corrective action is believed
necessary.
new text end

new text begin (b) If the inaccurate submeter has resulted in an overcharge, the landlord must promptly
refund the difference between what the tenant paid and what the tenant would have paid if
the submeter had correctly registered the tenant's utility service.
new text end

new text begin (c) If the inaccurate submeter has resulted in an undercharge, the landlord may bill the
tenant the difference between what the tenant paid and what the tenant would have paid if
the submeter had correctly registered the tenant's utility service for a period not exceeding
the previous six months. Any undercharge the landlord seeks to collect must be recovered
in accordance with section 216B.023, subdivision 8.
new text end

new text begin (d) If a tenant has notified the landlord that the tenant suspects the tenant's submeter is
incorrectly registering the tenant's utility service as provided in paragraph (a) and the landlord
has failed within a reasonable time to check the submeter and provide the tenant with the
results of a meter test demonstrating the submeter is accurate, the landlord is prohibited
from recovering from the tenant any undercharge for the period between the date of the
tenant's notification and the date the submeter was checked.
new text end

new text begin Subd. 5. new text end

new text begin Submeter fees. new text end

new text begin A landlord is prohibited from charging to or collecting from
tenants any administrative, capital, or any other expenses associated with the installation,
maintenance, repair, replacement, or reading of submeters, unless the expense is due to the
tenant's willful, malicious, or negligent conduct. Nothing in this subdivision prevents the
landlord from imposing a late payment charge, as provided under section 216B.023,
subdivision 6, or an administrative billing charge, as provided under section 216B.023,
subdivision 4.
new text end

Sec. 2.

new text begin [216B.023] SHARED-METERED RESIDENTIAL BUILDINGS; BILLING;
CONSUMER PROTECTIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Billing requirements for submetered service. new text end

new text begin (a) If utility service is
submetered, utility bills provided by landlords to tenants must be based on actual submeter
readings. If natural gas service is apportioned, landlords must comply with section 504B.216,
subdivisions 5 and 6.
new text end

new text begin (b) Landlords are prohibited from billing submetered tenants or tenants whose natural
gas service is apportioned less frequently than the landlord is billed by the utility. Landlords
must include in the lease, or provide a written statement at the outset of the lease term,
notice of when utility bills will be issued.
new text end

new text begin (c) Landlords must include the following information on each submetered utility service
bill:
new text end

new text begin (1) the present and last preceding submeter readings;
new text end

new text begin (2) the date of the present reading;
new text end

new text begin (3) the rate at which the utility service is being billed, the amount of the service billed
at the rate, and the rate at which the landlord is being billed by the utility provider for the
utility service;
new text end

new text begin (4) the tenant's portion of taxes and surcharges;
new text end

new text begin (5) if any, the portion of any bill credit the landlord received from the utility provider
that is credited to the tenant;
new text end

new text begin (6) any administrative billing charge, as provided in subdivision 4;
new text end

new text begin (7) the total amount of the bill; and
new text end

new text begin (8) the date by which payment is due; the date after which, if the bill is not paid, a late
payment charge may be imposed; and the amount of the charge, if any, as provided in
subdivision 6.
new text end

new text begin Subd. 2. new text end

new text begin Separate billing for electricity. new text end

new text begin (a) A landlord who bills a tenant separately
from rent for electricity service (1) must not apportion the service; (2) must comply with
this section, section 216B.022, and applicable provisions of section 504B.216; and (3) is
subject to section 216B.024.
new text end

new text begin (b) A landlord who submeters electricity must:
new text end

new text begin (1) charge only for the electricity used in the tenant's unit, calculated by multiplying the
kilowatt-hours used during the billing period, as measured by the submeter, by the rate
charged to the landlord by the utility provider. A landlord must not charge a tenant for
electricity consumed in common areas or in spaces used exclusively or primarily by the
landlord;
new text end

new text begin (2) charge a tenant only for the tenant's pro rata share of nonusage charges, calculated
by dividing the charges the landlord is billed by the utility provider equally among the
number of units in the building; and
new text end

new text begin (3) deduct from a tenant's total bill the tenant's pro rata share of any bill credits or
adjustments received by the landlord on the bill from the utility provider by dividing the
credit or adjustment equally among the number of units in the building.
new text end

new text begin Subd. 3. new text end

new text begin Separate billing for natural gas. new text end

new text begin (a) A landlord who submeters natural gas
service must bill tenants according to the methodology described in subdivision 2, paragraph
(b), and comply with:
new text end

new text begin (1) subdivision 1, paragraph (c);
new text end

new text begin (2) section 216B.022; and
new text end

new text begin (3) applicable provisions of section 504.216.
new text end

new text begin (b) A landlord who submeters or apportions natural gas service (1) must comply with
subdivisions 4 to 8, and (2) is subject to section 216B.024.
new text end

new text begin Subd. 4. new text end

new text begin Administrative billing charge. new text end

new text begin A landlord who bills separately from rent for
utility service may impose an administrative billing charge, as provided in section 504B.216,
subdivision 8. No other fees or charges may be imposed on or collected from tenants for
utility service, except as otherwise provided in subdivision 6 and section 216B.022,
subdivision 5.
new text end

new text begin Subd. 5. new text end

new text begin Billing errors. new text end

new text begin (a) If a billing error occurs that has resulted in an overcharge,
the landlord must promptly refund the difference between what the tenant paid and what
the tenant would have paid but for the error.
new text end

new text begin (b) If a billing error has occurred that has resulted in an undercharge, the landlord may
bill the tenant for the difference between what the tenant paid and what the tenant would
have paid but for the billing error, for a period not exceeding six months. Any undercharge
must be recovered in accordance with subdivision 8.
new text end

new text begin Subd. 6. new text end

new text begin Late payment charge. new text end

new text begin A late payment charge may be imposed as provided
under section 504B.216, subdivision 9. No other fees or charges may be imposed on or
collected from tenants for utility service, except as otherwise provided in subdivision 4 and
section 216B.022, subdivision 5.
new text end

new text begin Subd. 7. new text end

new text begin Payment plans. new text end

new text begin A landlord must offer a payment plan for overdue utility service
bills. The plan must be reasonable and take into account the tenant's financial circumstances
and any extenuating circumstances that are voluntarily disclosed by the tenant. If the landlord
and tenant cannot agree on a mutually acceptable payment plan, the landlord must inform
the tenant of the right to seek assistance from the commission's consumer affairs office in
resolving the dispute and provide the tenant the office's current telephone number and email
address.
new text end

new text begin Subd. 8. new text end

new text begin Undercharges. new text end

new text begin A landlord must offer a payment plan to tenants who have been
undercharged if no culpable conduct by the tenant or member of the tenant's household
caused the undercharge. The agreement must cover a period equal to the time over which
the undercharge occurred or a different time period that is mutually agreeable to the tenant
and the landlord. No interest or delinquency fee may be charged as part of a payment plan
under this subdivision.
new text end

Sec. 3.

new text begin [216B.024] SHARED-METERED RESIDENTIAL BUILDINGS; DISPUTE
RESOLUTION.
new text end

new text begin A tenant disputing a bill or claiming a violation of section 216B.022 or 216B.023 must
first attempt to resolve the dispute or claim with the landlord. If the tenant disagrees with
the landlord's proposed resolution, the landlord must notify the tenant of the tenant's right
to file a complaint with the commission's consumer affairs office and provide the tenant the
office's current telephone number and email address. The consumer affairs office must
follow the procedures set forth in section 216B.172, subdivision 2, and Minnesota Rules,
part 7829.1600, and the procedures under section 216B.172, subdivisions 3 and 4, apply.
new text end

Sec. 4.

Minnesota Statutes 2022, section 216B.098, subdivision 6, is amended to read:

Subd. 6.

Commission authority.

new text begin (a) new text end In addition to any other authority, the commission
has the authority to resolve customer complaints against a public utility deleted text begin , as defined in section
216B.02, subdivision 4 deleted text end new text begin or a landlord of a shared-metered residential building new text end , whether or
not the complaint involves a violation of this chapter. The commission may delegate this
authority to commission staff as it deems appropriate.

new text begin (b) The commission has the authority to levy a penalty of not less than $100 and not
more than $1,000 for each violation of section 216B.022, 216B.023, or 216B.024 with
respect to complaints filed by tenants. Nothing in this chapter limits the right of a tenant to
seek or obtain judicial remedies.
new text end

new text begin (c) For the purposes of this subdivision:
new text end

new text begin (1) "landlord" has the meaning given in section 216B.022, subdivision 1, paragraph (b);
new text end

new text begin (2) "public utility" has the meaning given in section 216B.02, subdivision 4; and
new text end

new text begin (3) "shared-metered residential building" has the meaning given in section 216B.022,
subdivision 1, paragraph (e).
new text end

Sec. 5.

Minnesota Statutes 2023 Supplement, section 216B.172, subdivision 1, is amended
to read:

Subdivision 1.

Definitions.

(a) For the purposes of this section, the following terms have
the meanings given.

(b) "Appeal" means a request a complainant files with the commission to review and
make a final decision regarding the resolution of the complainant's complaint by the consumer
affairs office.

(c) "Complainant" means an individual residential customer new text begin or a tenant new text end who files with
the consumer affairs office a complaint against a public utility new text begin or a landlord of a
shared-metered residential building new text end .

(d) "Complaint" means an allegation submitted to the consumer affairs office by a
complainant that a public utility's new text begin or a landlord's new text end action or practice regarding billing or terms
and conditions of service:

(1) violates a statute, rule, tariff, service contract, or other provision of law;

(2) is unreasonable; or

(3) has harmed or, if not addressed, harms a complainant.

Complaint does not include an objection to or a request to modify any natural gas or
electricity rate contained in a tariff that has been approved by the commission. A complaint
under this section is an informal complaint under Minnesota Rules, chapter 7829.

(e) "Consumer affairs office" means the staff unit of the commission that is organized
to receive and respond to complaints.

(f) "Informal proceeding" has the meaning given in Minnesota Rules, part 7829.0100,
subpart 8.

(g) new text begin "Landlord" means an owner of a shared-metered residential building, a contract for
deed vendee, receiver, executor, trustee, lessee, agent, or other person directly or indirectly
in control of the shared-metered residential building that bills separately for natural gas or
electricity, or both.
new text end

new text begin (h) new text end "Public assistance" has the meaning given in section 550.37, subdivision 14.

deleted text begin (h) deleted text end new text begin (i) new text end "Public utility" has the meaning given in section 216B.02, subdivision 4.

new text begin (j) "Shared-metered residential building" has the meaning given in section 216B.022,
subdivision 1, paragraph (e).
new text end

new text begin (k) "Tenant" has the meaning given in section 216B.022, subdivision 1, paragraph (g).
new text end

new text begin (l) "Third-party billing agent" has the meaning given in section 216B.022, subdivision
1, paragraph (h).
new text end

Sec. 6.

Minnesota Statutes 2023 Supplement, section 216B.172, subdivision 2, is amended
to read:

Subd. 2.

Complaint resolution procedure.

A complainant must first attempt to resolve
a dispute with a public utility new text begin or a landlord. If a complainant is dissatisfied with the proposed
resolution by the public utility or the landlord, the complainant may seek assistance of the
commission to resolve the dispute new text end by filing a complaint with the consumer affairs office.
The consumer affairs office must: (1) notify the complainant of the resolution of the
complaint; and (2) provide written notice of (i) the complainant's right to appeal the resolution
to the commission, and (ii) the steps the complainant may take to appeal the resolution.
Upon request, the consumer affairs office must provide to the complainant a written notice
containing the substance of and basis for the resolution. Nothing in this section affects any
other rights existing under this chapter or other law.

Sec. 7.

new text begin [504B.216] UTILITY SERVICE IN SHARED-METERED RESIDENTIAL
BUILDINGS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Directly metered tenant" means a tenant who receives utility service directly from,
is billed directly by, and is a customer of the utility provider.
new text end

new text begin (c) "Landlord" has the meaning given in section 504B.001, subdivision 7. For the purposes
of this section, landlord includes a third-party billing agent.
new text end

new text begin (d) "Nonusage charges" means the total of the charges on a utility bill from a utility
provider that represent all nonconsumption-based charges and fees, including but not limited
to fixed-meter or service charges, taxes, surcharges, and other fees.
new text end

new text begin (e) "Shared-metered residential building" means a building with multiple separate
residential dwelling units where the building's utility service is measured by fewer meters
than the number of separate dwelling units in the building. Shared-metered residential
building does not include a manufactured home park.
new text end

new text begin (f) "Submeter" means a meter that (1) is owned by a landlord and installed by the landlord
or by a third-party billing agent or other agent, and (2) measures utility service consumed
solely within an individual dwelling unit in the shared-metered residential building.
new text end

new text begin (g) "Third-party billing agent" means a person or entity, other than the property owner,
that performs one or more utility management services at a shared-metered residential
building on behalf of a landlord, including but not limited to installing submeters, reading
submeters, or handling utility billing or collections, or both.
new text end

new text begin (h) "Utility provider" means a public utility, a municipal utility, a cooperative electric
association, or a local municipal water company providing utility service.
new text end

new text begin (i) "Utility service" means natural gas, electricity, or water and sewer.
new text end

new text begin Subd. 2. new text end

new text begin Landlord is bill payer and customer of record. new text end

new text begin (a) The landlord of a
shared-metered residential building must be the bill payer responsible and must be the
customer of record contracting with a utility provider for utility service. The landlord must
advise the utility provider that the utility services apply to a shared-metered residential
building.
new text end

new text begin (b) A landlord is prohibited from removing a directly metered tenant from the tenant's
existing utility account or requesting that a utility remove the tenant from the tenant's existing
utility account.
new text end

new text begin (c) This subdivision may not be waived by contract or otherwise.
new text end

new text begin Subd. 3. new text end

new text begin Submetering of electricity and natural gas. new text end

new text begin A landlord who submeters natural
gas or electricity (1) must comply with this section and sections 216B.022 and 216B.023,
and (2) is subject to section 216B.024.
new text end

new text begin Subd. 4. new text end

new text begin Submetering of water. new text end

new text begin (a) On or after January 1, 2025, any submeters installed
by a landlord to measure water and sewer usage must comply with standards established
by the local municipal water company for meters the company uses to measure water and
sewer service provided to the company's customers.
new text end

new text begin (b) All submeters, regardless of when the submeter was installed, must accurately measure
utility service. Landlords are prohibited from billing submetered tenants less frequently
than the landlord is billed by the utility.
new text end

new text begin (c) A landlord who submeters water must:
new text end

new text begin (1) bill tenants according to section 216B.023, subdivision 1;
new text end

new text begin (2) charge tenants according to section 216B.023, subdivision 2, paragraph (b); and
new text end

new text begin (3) comply with sections 216B.022, subdivision 4, and 216B.023, subdivisions 5, 7, and
8.
new text end

new text begin (d) A landlord must not charge to or collect from tenants any administrative, capital, or
any other expenses associated with the installation, maintenance, repair, replacement, or
reading of submeters, unless the expense is due to the tenant's willful, malicious, or negligent
conduct. Nothing in this subdivision prevents the landlord from imposing a late payment
charge, as provided under subdivision 9, or an administrative billing charge, as provided
under subdivision 8.
new text end

new text begin Subd. 5. new text end

new text begin Apportionment generally. new text end

new text begin (a) Apportionment of electricity is prohibited.
new text end

new text begin (b) Landlords must not bill tenants for apportioned utility service under this section less
frequently than the landlord is billed by the utility.
new text end

new text begin (c) A landlord who apportions utility service must, upon a tenant's request, provide:
new text end

new text begin (1) a copy of the current actual natural gas or water and sewer utility bill from the utility
provider that is being apportioned; and
new text end

new text begin (2) a copy of past natural gas or water and sewer utility bills for which the tenant received
an apportioned utility bill for the preceding two years or from the time the current landlord
acquired the building, whichever is the most recent.
new text end

new text begin (d) A landlord must include in the lease or in a separate written notice a list of the tenant's
rights under paragraph (c).
new text end

new text begin (e) A landlord who apportions utility service must comply with section 216B.023,
subdivisions 5, 7, and 8. A landlord who apportions natural gas is also subject to section
216B.024.
new text end

new text begin Subd. 6. new text end

new text begin Apportionment of natural gas. new text end

new text begin (a) A landlord may apportion and bill for
natural gas usage and nonusage charges only as provided in this subdivision.
new text end

new text begin (b) A tenant's apportioned natural gas bill must be based on the previous billing period's
actual natural gas bills from the utility provider, allocated to each unit based on the square
footage in the tenant's unit as a proportion of square footage of all the units in the building.
new text end

new text begin (c) A landlord must not charge any tenant for natural gas consumed in common areas,
spaces used exclusively or primarily by the landlord, or any vacant unit.
new text end

new text begin (d) A landlord must deduct from a tenant's total bill the tenant's pro rata share of any
bill credits or adjustments received by the landlord on the bill from the utility.
new text end

new text begin Subd. 7. new text end

new text begin Apportionment of water and sewer. new text end

new text begin (a) A landlord may apportion water and
sewer utility service and nonusage charges only as provided in this subdivision.
new text end

new text begin (b) A tenant's apportioned water and sewer bill must be based on the previous period's
water and sewer bills from the utility provider, allocated to each unit based on the number
of tenants listed on the lease as a proportion of the occupancy of all the units as listed on
the leases in the building.
new text end

new text begin (c) A landlord must not charge any tenant for water and sewer usage in common areas;
in spaces used exclusively or primarily by the landlord; in vacant units; for maintenance of
the property; or for shared amenities, including but not limited to laundry facilities and
pools.
new text end

new text begin (d) A landlord must deduct from a tenant's total bill the tenant's pro rata share of any
bill credits or adjustments received by the landlord on the bill from the utility.
new text end

new text begin Subd. 8. new text end

new text begin Administrative billing charge. new text end

new text begin A landlord who bills separately from rent for
any utility service may charge a tenant a single administrative billing charge per billing
period for all the utilities that are separately billed. The administrative billing charge must
not exceed $8. Except as provided in subdivision 9, no other fees or charges may be imposed
on or collected from tenants for utility service, including but not limited to any administrative,
capital, or any other expenses associated with the installation, maintenance, repair,
replacement, or reading of submeters, unless the expense involving a submeter is due to the
tenant's willful, malicious, or negligent conduct.
new text end

new text begin Subd. 9. new text end

new text begin Late payment charge; compounding late fees prohibited. new text end

new text begin A landlord may
impose one late payment charge per billing period if a tenant's utility bill payment is not
received by the landlord by the next scheduled billing date. The late payment charge for all
utilities billed must not exceed $5 per month. Late fees must not be compounded.
new text end

new text begin Subd. 10. new text end

new text begin Disclosure in lease of apportionment billing formula. new text end

new text begin If natural gas or water
and sewer is apportioned, leases entered into or renewed on or after January 1, 2025, must
include an attachment with the following notice:
new text end

new text begin "UTILITY BILLS
new text end

new text begin How Will My Bill be Calculated?
new text end

new text begin 1. Your utility bill is for your portion of the building's natural gas or water and sewer
usage, plus your portion of nonusage fees we get charged by the utility (for example, taxes
and surcharges).
new text end

new text begin For natural gas, your portion is based on the square footage of your unit as a percentage
of the square footage of all the units.
new text end

new text begin For water and sewer, your portion is based on the number of people in your unit (as
listed on your lease) as a percentage of all the occupants of all units.
new text end

new text begin 2. You are not charged for utilities used in the common areas or used in our spaces. In
the case of water, your bill does not include usage for shared amenities such as laundry
rooms or pools.
new text end

new text begin 3. Your bill may include a late payment charge, which is capped at $5, and an
administrative billing charge, which is capped at $8.
new text end

new text begin What If I Fall Behind on Utility Payments or Have a Question About My Bill?
new text end

new text begin 1. If you fall behind on your payments, you have the right to a reasonable payment plan
that you and we mutually agree on to pay off the amount you owe. The plan must take into
account any financial and extenuating circumstances of your household that you tell us
about.
new text end

new text begin 2. You may request, and we will timely provide, the utility bill we received from the
utility company and your percentage of the amount of the bill apportioned to tenants.
new text end

new text begin 3. We must first try to resolve any disputes about your natural gas or electricity utility
charges, including those about payment agreements. If we cannot agree on a payment plan
or resolve any other dispute, you have the right to seek assistance from the Public Utilities
Commission's Consumer Affairs Office at 651-296-0406 or [e-mail]."
new text end

new text begin Subd. 11. new text end

new text begin Verification of apportioned bills. new text end

new text begin No later than July 1, 2025, an organization
representing landlords shall work with organizations representing tenants and other relevant
groups and agencies to determine the steps necessary to, on each apportioned utility bill
rendered under leases entered into or renewed on or after July 1, 2026, enable a tenant to
understand how the tenant's utility bill was calculated and to verify that the calculation is
accurate.
new text end

new text begin Subd. 12. new text end

new text begin Disconnection of utility service prohibited. new text end

new text begin (a) Disconnection of a tenant's
utility service by a landlord for the failure to pay utility service charges is prohibited. Nothing
in this subdivision prohibits a public utility, a municipal utility, or a cooperative electric
association from disconnecting service to a landlord's building as otherwise provided by
law.
new text end

new text begin (b) If a landlord asserts a tenant owes rent and utilities, sums paid by the tenant to the
landlord must first be applied to unpaid rent.
new text end

new text begin (c) Except as provided in paragraph (d), a landlord may bring a claim for breach of lease
under section 504B.285, subdivision 4, for the failure of a tenant to pay for utilities billed
separately from rent as provided under this section.
new text end

new text begin (d) Notwithstanding paragraph (c):
new text end

new text begin (1) a landlord may not bring a claim for breach unless the landlord has offered the tenant
a payment plan under section 216B.023, subdivision 7, and the tenant has failed to make
two consecutive payments on the plan; and
new text end

new text begin (2) an eviction action may not be filed and any eviction already filed must be stayed:
new text end

new text begin (i) for the failure to pay natural gas or electric utility service charges during the cold
weather period;
new text end

new text begin (ii) for the failure to pay electric utility charges during a heat emergency; and
new text end

new text begin (iii) if the tenant notifies the landlord or the court that the tenant or a member of the
tenant's household is experiencing a medical emergency, or where medical equipment
requiring electricity necessary to sustain life is in use and certification of the emergency is
provided to the landlord or the court by a licensed medical health care professional within
five days of notification to the landlord or the court.
new text end

new text begin (e) If the failure to pay natural gas or electric utility charges occurs during the cold
weather period, or in the event of a medical emergency or where medical equipment requiring
electricity necessary to sustain life is in use, a landlord must follow the procedures set forth
in section 216B.023, subdivision 7.
new text end

new text begin (f) A violation of this subdivision is a violation of section 504B.221.
new text end

new text begin (g) For the purposes of this subdivision:
new text end

new text begin (1) "cold weather period" has the meaning given in section 216B.096, subdivision 2;
new text end

new text begin (2) "disconnection" includes installation of a service or load limiter or any device that
limits or interrupts utility service in any way; and
new text end

new text begin (3) "heat emergency" means any period when an excessive heat watch, heat advisory,
or excessive heat warning issued by the National Weather Service is in effect.
new text end

new text begin Subd. 13. new text end

new text begin Procedure where landlord defaults on payments to the utility. new text end

new text begin (a) A utility
provider supplying natural gas, electricity, or water and sewer, or another company supplying
home heating oil or propane, to a building who issues a final notice proposing to disconnect
or discontinue the service to the building because a landlord who has contracted for the
service has failed to pay for the service, or because a landlord is required by law or contract
to pay for the service and fails to do so, must provide notice to the residents of the impending
disconnection by posting in the building. The posting must be placed in at least one
conspicuous location in or on the building and provide tenants with, at a minimum, the
following information:
new text end

new text begin (1) the date the service will be discontinued;
new text end

new text begin (2) the telephone number to call the utility to obtain further information;
new text end

new text begin (3) a brief description of the rights of tenants under this section to continue or restore
service; and
new text end

new text begin (4) advice to consider seeking assistance from legal aid, a private attorney, or a housing
organization in exercising the tenant rights under Minnesota law to maintain utility service.
new text end

new text begin A tenant or group of tenants may pay to have the service continued or reconnected as
provided under this section. Before paying for the service, the tenant or group of tenants
shall give oral or written notice to the landlord of the tenant's intention to pay after 48 hours,
or a shorter period that is reasonable under the circumstances, if the landlord has not already
paid for the service. In the case of oral notification, written notice shall be mailed or delivered
to the landlord within 24 hours after the time oral notice is given.
new text end

new text begin (b) In the case of natural gas or electricity, if the landlord has not paid the bill by the
time of the tenant's intended payment or if the service remains discontinued, the tenant or
tenants may pay the current charges for the most recent billing period and the utility company
or municipality must restore the service for at least one billing period. In a residential
building with less than five units, one of the tenants may notify the utility company or
municipality that the tenant agrees to become the bill payer responsible and customer of
record and the utility company or municipality must place the account disconnected or
subject to disconnection in the tenant's name and provide service prospectively, provided
the tenant satisfies all requirements for establishing service. A tenant that becomes the
customer of record of a cooperative electric association does not acquire membership rights.
Exercise of the right to pay the current charges for the most recent billing period does not
preclude exercising the right to become the bill payer responsible and customer of record,
provided that if there are multiple tenants in an affected multifamily building, the utility
company or municipality is not required to offer the right to become the bill payer responsible
and the customer of record to more than one tenant in a 12-month period.
new text end

new text begin (c) In the case of water and sewer, if the landlord has not paid the bill by the time of the
tenant's intended payment or if the service remains discontinued, upon request from a tenant
a municipality must provide a copy of each bill the landlord fails to pay. The tenant:
new text end

new text begin (1) has a continuing right to pay the current charges for the most recent billing period
and retain service;
new text end

new text begin (2) has the period of time provided by the governing ordinance, policy, or practice within
which to pay the charges;
new text end

new text begin (3) is not subject to any deposit requirements; and
new text end

new text begin (4) is entitled to reasonable notice of any disconnection.
new text end

new text begin This paragraph does not require a municipality to alter the municipality's accounting system
or billing records if the tenant exercises the right to pay current charges and retain water
service. If there are multiple tenants in an affected property, the municipality is not required
to offer the right to pay current charges and retain service to more than one tenant in a
12-month period.
new text end

new text begin (d) For purposes of this subdivision, "current charges" does not include arrears or late
payment fees incurred by the landlord.
new text end

new text begin (e) In a shared-metered residential building, other residential tenants in the building may
contribute payments to the utility company or municipality on the account of the tenant who
is the customer of record under paragraph (b), or on the landlord's account under paragraph
(c).
new text end

new text begin (f) A landlord who satisfies all requirements for reestablishing service, including paying
or entering into an agreement acceptable to the utility company or municipality to pay all
arrears and other lawful charges incurred by the landlord on the account that was placed in
the tenant's name, may reestablish service in the landlord's name.
new text end

new text begin (g) This section does not restrict or prohibit a municipal utility provider from exercising
the municipal utility provider's authority pursuant to section 444.075, subdivisions 3 and
3e, to make contracts with and impose utility charges against property owners and to certify
unpaid charges to the county auditor with taxes against the property served for collection
as a tax.
new text end

new text begin (h) In the case of home heating oil or propane, if the landlord has not paid the bill by
the time of the tenant's intended payment, or if the service remains discontinued, the tenant
or tenants may order and pay for one month's supply of the proper grade and quality of oil
or propane.
new text end

new text begin (i) After submitting documentation to the landlord of the tenant's payment to the utility
company or municipality, a tenant may deduct the amount of the tenant's payment to the
utility company or municipality from the rental payment next paid to the landlord. Any
amount paid to the municipality, utility company, or other company by a tenant under this
subdivision is considered payment of rent to the landlord for purposes of section 504B.291.
new text end

new text begin Subd. 14. new text end

new text begin Limitations; waiver prohibited; rights as additional. new text end

new text begin The tenant rights
under this section:
new text end

new text begin (1) do not extend to conditions caused by the willful, malicious, or negligent conduct
of the tenant or of a person under the tenant's direction or control;
new text end

new text begin (2) may not be waived or modified; and
new text end

new text begin (3) are in addition to and do not limit other rights that may be available to the tenant in
law or equity, including the right to damages and the right to restoration of possession of
the premises under section 504B.291.
new text end

new text begin Subd. 15. new text end

new text begin Additional requirement. new text end

new text begin By September 30 of each year, a landlord of a
shared-metered residential building who bills for gas, electric utility charges, or both separate
from rent must inform tenants in writing of the possible availability of energy assistance
from the low-income home energy assistance program. The information must contain the
toll-free telephone number of the administering agency.
new text end

new text begin Subd. 16. new text end

new text begin Violations. new text end

new text begin A violation of subdivisions 2 to 12 is a violation of section
504B.161 and a violation of subdivisions 2, 3, 4, 5, 6, 7, 10, and 12 is a violation of section
504B.221.
new text end

new text begin Subd. 17. new text end

new text begin Attorney general authority. new text end

new text begin The attorney general has authority under section
8.31 to investigate and prosecute violations of this section.
new text end

Sec. 8.

Minnesota Statutes 2022, section 504B.285, subdivision 4, is amended to read:

Subd. 4.

Nonlimitation of landlord's rights.

new text begin (a) new text end Nothing contained in subdivisions 2
and 3 limits the right of the landlord pursuant to the provisions of subdivision 1 to terminate
a tenancy for a violation by the tenant of a lawful, material provision of a lease or contract,
whether written or oral, or to hold the tenant liable for damage to the premises caused by
the tenant or a person acting under the tenant's direction or control.

new text begin (b) If a landlord files an eviction action for failure to pay for utility service in a
shared-metered building, the court:
new text end

new text begin (1) if the tenant has filed a complaint involving natural gas or electricity utility service
with the Public Utilities Commission under section 216B.024, must stay the action until the
commission has made a final determination and must not require the defendant to pay any
amount of money into court, post a bond, make a payment directly to a landlord, or by any
other means post security for any purpose prior to final disposition of the complaint pursuant
to section 216B.172, subdivisions 3 and 4. If the action proceeds following the final
disposition of complaint, the court must not require the tenant to post any amount of money
into court, post a bond, make a payment directly to a landlord, or by any other means post
security for utility charges;
new text end

new text begin (2) if the tenant has not filed a complaint involving natural gas or electric utility service
with the Public Utilities Commission under section 216B.024 or the eviction action is for
nonpayment of water and sewer utility charges, and the tenant meets the requirements for
a court fee waiver under section 563.01, must not require the tenant to post any amount of
money into court, post a bond, make a payment directly to a landlord, or by any other means
post security for utility charges; and
new text end

new text begin (3) if the tenant has not filed a complaint involving natural gas or electric utility service
with the Public Utilities Commission under section 216B.024, and the tenant does not meet
the requirements for a court fee waiver under section 563.01, may, in the court's discretion,
require the tenant to pay an amount of money or post security as the court deems appropriate
for prospective utility charges only.
new text end

new text begin (c) A court must not require a tenant to post rent as a condition of a tenant asserting an
affirmative claim or defense, or a counterclaim related to landlord utility billings or practices.
new text end

new text begin (d) For the purposes of this section:
new text end

new text begin (1) "shared-metered residential building" has the meaning given in section 504B.216,
subdivision 1, paragraph (e); and
new text end

new text begin (2) "utility service" has the meaning given in section 504B.216, subdivision 1, paragraph
(i).
new text end

Sec. 9. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2022, section 504B.215, new text end new text begin is repealed.
new text end

Sec. 10. new text begin EFFECTIVE DATE.
new text end

new text begin (a) Sections 1 to 6, 8, and 9 are effective January 1, 2025.
new text end

new text begin (b) Section 7 is effective January 1, 2025, for leases entered into or renewed on or after
that date.
new text end

APPENDIX

Repealed Minnesota Statutes: S4579-4

504B.215 BILLING; LOSS OF SERVICES.

Subdivision 1.

Definitions.

For the purposes of this section, "single-metered residential building" means a multiunit rental building with one or more separate residential living units where the utility service measured through a single meter provides service to an individual unit and to all or parts of common areas or other units.

Subd. 2.

Single-meter utility service payments.

Except as provided in subdivision 3, the landlord of a single-metered residential building shall be the bill payer responsible, and shall be the customer of record contracting with the utility for utility services. The landlord must advise the utility provider that the utility services apply to a single-metered residential building. A failure by the landlord to comply with this subdivision is a violation of sections 504B.161, subdivision 1, clause (1), and 504B.221. This subdivision may not be waived by contract or otherwise. This subdivision does not require a landlord to contract and pay for utility service provided to each residential unit through a separate meter which accurately measures that unit's use only. This subdivision does not prohibit a landlord from apportioning utility service payments among residential units and either including utility costs in a unit's rent or billing for utility charges separate from rent.

Subd. 2a.

Conditions of separate utility billing to tenant in single-meter buildings.

(a) A landlord of a single-metered residential building who bills for utility charges separate from the rent:

(1) must provide prospective tenants notice of the total utility cost for the building for each month of the most recent calendar year;

(2) must predetermine and put in writing for all leases an equitable method of apportionment and the frequency of billing by the landlord;

(3) must include in the lease a provision that, upon a tenant's request, the landlord must provide a copy of the actual utility bill for the building along with each apportioned utility bill. Upon a tenant's request, a landlord must also provide past copies of actual utility bills for any period of the tenancy for which the tenant received an apportioned utility bill. Past copies of utility bills must be provided for the preceding two years or from the time the current landlord acquired the building, whichever is most recent; and

(4) may, if the landlord and tenant agree, provide tenants with a lease term of one year or more the option to pay those bills under an annualized budget plan providing for level monthly payments based on a good faith estimate of the annual bill.

(b) By September 30 of each year, a landlord of a single-metered residential building who bills for gas and electric utility charges separate from rent must inform tenants in writing of the possible availability of energy assistance from the Low Income Home Energy Assistance Program. The information must contain the toll-free telephone number of the administering agency.

(c) A failure by the landlord to comply with this subdivision is a violation of sections 504B.161, subdivision 1, clause (1), and 504B.221.

Subd. 2b.

De minimis exception.

Any tariff approved by the Public Utilities Commission regarding a violation of subdivision 2 shall include a de minimis exception. The de minimis exception shall provide that electrical service in a common area that does not exceed an aggregate 1,752 kilowatt hours per year, which service is measured through a meter serving an individual residential unit, shall not cause a building to be a "single-metered residential building" as used in this section. The amount of common area usage may be determined by actual measurement or, when such measurement is not possible, it may be determined not likely to exceed 1,752 kilowatt hours per year by a licensed tradesperson or a housing inspector. The landlord shall bear the burden and cost associated with proving an exception.

If a tariff is not adopted, this subdivision shall have no effect.

Subd. 3.

Procedure.

(a) A municipality, utility company, or other company supplying home heating oil, propane, natural gas, electricity, or water to a building who issues a final notice proposing to disconnect or discontinue the service to the building because a landlord who has contracted for the service has failed to pay for it or because a landlord is required by law or contract to pay for the service and fails to do so must provide notice to the residents of the impending disconnection by posting the building. The posting must be placed in at least one conspicuous location in or on the building and provide tenants with, at a minimum, the following information:

(1) the date the service will be discontinued;

(2) the telephone number to call at the utility to obtain further information;

(3) a brief description of the rights of tenants under this section to continue or restore service; and

(4) advice to consider seeking assistance from legal aid, a private attorney, or a housing organization in exercising the rights of tenants under Minnesota law to maintain their utility service.

A tenant or group of tenants may pay to have the service continued or reconnected as provided under this section. Before paying for the service, the tenant or group of tenants shall give oral or written notice to the landlord of the tenant's intention to pay after 48 hours, or a shorter period that is reasonable under the circumstances, if the landlord has not already paid for the service. In the case of oral notification, written notice shall be mailed or delivered to the landlord within 24 hours after oral notice is given.

(b) In the case of natural gas or electricity, if the landlord has not paid the bill by the time of the tenant's intended payment or if the service remains discontinued, the tenant or tenants may pay the current charges for the most recent billing period and the utility company or municipality must restore the service for at least one billing period. In a residential building with less than five units, one of the tenants may notify the utility company or municipality that the tenant agrees to become the bill payer responsible and customer of record and the utility company or municipality must place the account disconnected or subject to disconnection in the tenant's name and provide service prospectively, provided the tenant satisfies all requirements for establishing service. A tenant becoming the customer of record of a cooperative electric association does not acquire membership rights. Exercise of the right to pay the current charges for the most recent billing period does not preclude exercising the right to become the bill payer responsible and customer of record, provided that if there are multiple tenants in an affected multifamily building, the utility company or municipality is not required to offer the right to become the bill payer responsible and the customer of record to more than one tenant in a 12-month period.

(c) In the case of water, if the landlord has not paid the bill by the time of the tenant's intended payment or if the service remains discontinued, upon request from a tenant, a municipality must provide a copy of each bill the landlord fails to pay. The tenant:

(1) has a continuing right to pay the current charges for the most recent billing period and retain service;

(2) has the period of time provided by the governing ordinance, policy, or practice within which to pay the charges;

(3) is not subject to any deposit requirements; and

(4) is entitled to reasonable notice of any disconnection.

This paragraph does not require a municipality to alter its accounting system or billing records if the tenant exercises the right to pay current charges and retain water service. If there are multiple tenants in an affected property, the municipality is not required to offer the right to pay current charges and retain service to more than one tenant in a 12-month period.

(d) For purposes of this subdivision, "current charges" does not include arrears or late payment fees incurred by the landlord.

(e) In a single-metered residential building, other residential tenants in the building may contribute payments to the utility company or municipality on the account of the tenant who is the customer of record under paragraph (b) or on the landlord's account under paragraph (c).

(f) A landlord who satisfies all requirements for reestablishing service, including paying, or entering into an agreement acceptable to the utility company or municipality to pay, all arrears and other lawful charges incurred by the landlord on the account that was placed in the tenant's name, may reestablish service in the landlord's name.

(g) This section does not restrict or prohibit a municipal utility provider from exercising its authority pursuant to section 444.075, subdivisions 3 and 3e, to make contracts with and impose utility charges against property owners and to certify unpaid charges to the county auditor with taxes against the property served for collection as a tax.

(h) In the case of home heating oil or propane, if the landlord has not yet paid the bill by the time of the tenant's intended payment, or if the service remains discontinued, the tenant or tenants may order and pay for one month's supply of the proper grade and quality of oil or propane.

(i) After submitting documentation to the landlord of the tenant's payment to the utility company or municipality, a tenant may deduct the amount of the tenant's payment to the utility company or municipality from the rental payment next paid to the landlord. Any amount paid to the municipality, utility company, or other company by a tenant under this subdivision is considered payment of rent to the landlord for purposes of section 504B.291.

Subd. 4.

Limitations; waiver prohibited; rights as additional.

The tenant rights under this section:

(1) do not extend to conditions caused by the willful, malicious, or negligent conduct of the tenant or of a person under the tenant's direction or control;

(2) may not be waived or modified; and

(3) are in addition to and do not limit other rights which may be available to the tenant in law or equity, including the right to damages and the right to restoration of possession of the premises under section 504B.291.