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HF 562

2nd Engrossment - 87th Legislature (2011 - 2012) Posted on 05/21/2011 08:16pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 02/17/2011
1st Engrossment Posted on 03/14/2011
2nd Engrossment Posted on 05/21/2011

Current Version - 2nd Engrossment

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A bill for an act
relating to water and sewer; regulating water and sewer charges for manufactured
home parks; repealing air admittance valve prohibition; amending Minnesota
Statutes 2010, sections 103G.291, subdivision 4; 327C.01, by adding
subdivisions; 327C.02, subdivision 2; 327C.04, subdivision 2, by adding
subdivisions; repealing Minnesota Statutes 2010, section 326B.43, subdivision 6.

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

Section 1.

Minnesota Statutes 2010, section 103G.291, subdivision 4, is amended to
read:


Subd. 4.

Conservation rate structure required.

(a) For the purposes of this
section, "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. The rate structure must consider each residential unit as an
individual user in multiple-family dwellingsnew text begin and manufactured home parks, as that term is
defined in section 327C.01, subdivision 5
new text end .

(b) To encourage conservation, a public water supplier serving more than 1,000
people in the metropolitan area, as defined in section 473.121, subdivision 2, shall use
a conservation rate structure by January 1, 2010. All remaining public water suppliers
serving more than 1,000 people shall use a conservation rate structure by January 1, 2013.

(c) A public water supplier without the proper measuring equipment to track the
amount of water used by its users, as of July 1, 2008, is exempt from this subdivision and
the conservation rate structure requirement under subdivision 3, paragraph (c).

Sec. 2.

Minnesota Statutes 2010, section 327C.01, is amended by adding a subdivision
to read:


new text begin Subd. 7b. new text end

new text begin Municipality. new text end

new text begin "Municipality" means the governing body of a county,
statutory, or home rule charter city, or town or regional authority that operates facilities, as
that term is defined in section 444.075, subdivision 1, paragraph (f).
new text end

Sec. 3.

Minnesota Statutes 2010, section 327C.01, is amended by adding a subdivision
to read:


new text begin Subd. 13. new text end

new text begin Water measuring device. new text end

new text begin "Water measuring device" means a water
meter or submeter used to measure the water usage of a resident and to provide billing to a
resident for actual water usage.
new text end

Sec. 4.

Minnesota Statutes 2010, section 327C.02, subdivision 2, is amended to read:


Subd. 2.

Modification of rules.

new text begin (a) new text end The park owner must give the resident at least
60 days' notice in writing of any rule change.

new text begin (b)new text end A rule adopted or amended after the resident initially enters into a rental
agreement may be enforced against that resident only if the new or amended rule is
reasonable and is not a substantial modification of the original agreement.

new text begin (c)new text end Any security deposit increase is a substantial modification of the rental
agreement. deleted text begin A reasonable rent increase made in compliance with section 327C.06 isdeleted text end new text begin The
following actions are
new text end not a substantial modification of the rental agreement and deleted text begin isdeleted text end new text begin arenew text end not
considered to be a rule for purposes of section 327C.01, subdivision 8new text begin : (1) a reasonable
rent increase made in compliance with section 327C.06; and (2) the imposition and
collection of water, sewer, and other charges for utility service under section 327C.04
new text end .
A rule change necessitated by government action is not a substantial modification of the
rental agreement. A rule change requiring all residents to maintain their homes, sheds and
other appurtenances in good repair and safe condition shall not be deemed a substantial
modification of a rental agreement.

new text begin (d)new text end If a part of a resident's home, shed or other appurtenance becomes so dilapidated
that repair is impractical and total replacement is necessary, the park owner may require
the resident to make the replacement in conformity with a generally applicable rule
adopted after the resident initially entered into a rental agreement with the park owner.

new text begin (e)new text end In any action in which a rule change is alleged to be a substantial modification
of the rental agreement, a court may consider the following factors in limitation of the
criteria set forth in section 327C.01, subdivision 11:

deleted text begin (a)deleted text end new text begin (1)new text end any significant changes in circumstances which have occurred since the
original rule was adopted and which necessitate the rule change; and

deleted text begin (b)deleted text end new text begin (2)new text end any compensating benefits which the rule change will produce for the
residents.

Sec. 5.

Minnesota Statutes 2010, 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 deleted text begin householddeleted text end new text begin residentnew text end the same amount, unless the park owner
has installed measuring devices which accurately meter each deleted text begin household'sdeleted text end new text begin resident'snew text end use
of the utility.

Sec. 6.

Minnesota Statutes 2010, section 327C.04, is amended by adding a subdivision
to read:


new text begin Subd. 5. new text end

new text begin Water and sewer; separate billing. new text end

new text begin (a) For purposes of this subdivision,
"third party" means an individual, corporation, firm, company, partnership, limited liability
corporation, cooperative, or association that provides water or sewer services under an
agreement with a park owner, which may include but is not limited to:
new text end

new text begin (1) installation and maintenance of waterworks systems or sanitary sewer systems
owned by the park owner but only if the systems are allowed by the municipality pursuant
to sections 412.221, subdivision 11, and 462.357, subdivision 7;
new text end

new text begin (2) installation and maintenance of water measuring devices;
new text end

new text begin (3) measurement of water usage by each resident; and
new text end

new text begin (4) billing service.
new text end

new text begin Third party does not include a public water supplier.
new text end

new text begin (b) As provided in this subdivision, a park owner who installs a water measuring
device to measure water service use, and provide for calculations of sewer use, may
separately bill each resident in the park for water service, sewer service, or both. This
authority applies to billing performed in conjunction with a bill received by the park
owner by or on behalf of a public water supplier, and to billing for water or sewer service
provided by means of a private well or private sewer or septic system.
new text end

new text begin (c) A park owner who performs separate billing of each resident for the utility
service shall:
new text end

new text begin (1) bill a resident at least quarterly;
new text end

new text begin (2) maintain exclusive responsibility for the installation, maintenance, and reading
of water measuring devices;
new text end

new text begin (3) comply with all applicable federal, state, and municipal requirements for private
wells; and
new text end

new text begin (4) bill a resident (A) based on that resident's actual use of water, and resulting sewer
usage, as identified by the water measuring device, and (B) at the rates or calculations
used by the appropriate public water supplier for each utility service:
new text end

new text begin (i) if the park owner uses billing services provided by a third party, bill a resident for
the actual billing amount identified by the third party for that resident; or
new text end

new text begin (ii) if the park owner provides the utility service by means of a private well or
private sewer or septic system, bill a resident (A) based on that resident's actual use of
water as identified by the water measuring device, and (B) at the rates permitted for utility
charges under subdivision 3.
new text end

new text begin (d) A park owner may not include in a bill to a resident for utility service under this
subdivision, charges for:
new text end

new text begin (1) the cost of a water measuring device;
new text end

new text begin (2) the cost of installation or maintenance of a water measuring device;
new text end

new text begin (3) the cost of billing; or
new text end

new text begin (4) any administrative, capital, or other related expenses, including but not limited to
disconnection and reconnection.
new text end

new text begin (e) Notwithstanding paragraph (d), a park owner may charge for repair or
replacement of a water measuring device due to a resident's negligence, intentional
damage, or theft by a resident.
new text end

new text begin (f) Notwithstanding paragraph (d), if a park owner who performs separate billing
of each resident for the utility service receives a bill from a public water supplier that
includes one or more fixed charges, including a connection fee, as defined in section
444.075, subdivision 3, the park owner shall apportion the fixed charges equally among
each resident based on the number of lots in the park that are consuming the utility service.
new text end

new text begin (g) Each resident is responsible only for the metered water and resulting sewer
usage and the share of any fixed charges as provided under paragraph (f). Any difference
between the aggregate metered use plus fixed charges and the total amount billed to the
park owner is the exclusive responsibility of the park owner.
new text end

new text begin (h) A billing statement provided to each resident for utility service under this
subdivision must identify (1) the amount of the resident's actual use of water for the billing
period, (2) the rate charged to the resident, including any calculations performed, for each
utility service billed, and (3) any fixed charges apportioned under paragraph (f).
new text end

new text begin (i) Nothing in this section shall be construed to limit any existing right or obligation
of a municipality, including, but not limited to, the authority to:
new text end

new text begin (1) impose rates, fees, and charges on customers, as determined by the municipality
or the local public utilities commission, or as authorized by ordinance or statute, including
the rate structure required under section 103G.291, subdivision 4, and fees required to
obtain and comply with permits;
new text end

new text begin (2) regulate the use of private wells, waterworks, and water supply, as provided
under sections 412.221, subdivision 11, and 462.357, subdivision 1; or
new text end

new text begin (3) manage and operate a waterworks, sanitary sewer, or storm sewer, as those terms
are defined in section 444.075, subdivision 1.
new text end

new text begin (j) Nothing in this section permits a municipality to impose any fees or charges for
privately owned infrastructure, including meter charges or line charges, in manufactured
home parks as defined in section 327.14, subdivision 3, and not owned by a municipality.
new text end

Sec. 7.

Minnesota Statutes 2010, section 327C.04, is amended by adding a subdivision
to read:


new text begin Subd. 6. new text end

new text begin Water and sewer; initial installation. new text end

new text begin (a) A park owner shall provide
notice to each resident two months prior to the installation of a water measuring device for
use under subdivision 5.
new text end

new text begin (b) Prior to or with the initial separate bill to a resident for utility service under
subdivision 5, the park owner shall:
new text end

new text begin (1) reduce the resident's monthly rent in an amount equal to the monthly average of
the resident's proportional share of the total amount billed over the previous 12 months to
the park owner by the appropriate public water supplier for the utility service; or
new text end

new text begin (2) waive the resident's next regularly scheduled rent increase as otherwise permitted
in section 327C.06, subdivision 3, over the subsequent 12-month period.
new text end

Sec. 8.

Minnesota Statutes 2010, section 327C.04, is amended by adding a subdivision
to read:


new text begin Subd. 7. new text end

new text begin Water and sewer; water measuring device. new text end

new text begin A water measuring device
used under subdivision 5 must be:
new text end

new text begin (1) certified, at the time of installation, as being in compliance with appropriate
national standards produced by (i) the American Water Works Association (AWWA), (ii)
the American Society of Mechanical Engineers (ASME), or (iii) the American National
Standards Institute (ANSI);
new text end

new text begin (2) equipped with a manual or digital display that is readily accessible to the park
owner and a resident; and
new text end

new text begin (3) installed in accordance with the plumbing code, as defined in section 326B.42,
subdivision 7.
new text end

Sec. 9.

Minnesota Statutes 2010, section 327C.04, is amended by adding a subdivision
to read:


new text begin Subd. 8. new text end

new text begin Disputes. new text end

new text begin A park owner who separately bills residents for utility service
shall:
new text end

new text begin (1) promptly investigate a complaint from a resident claiming a billing error or
metering defect;
new text end

new text begin (2) make any adjustment required in a timely manner;
new text end

new text begin (3) if no adjustment is made, provide supporting documents or other information
justifying a determination that the billing was correct;
new text end

new text begin (4) if the resident timely pays the average of the last three billing periods, refrain
from taking any collection or any other adverse action against the resident for the amount
of the alleged error until the park owner has complied with clauses (1), (2), and (3); and
new text end

new text begin (5) in a dispute over damage to a water metering device, investigate the cause of the
damage and, if requested by the resident in writing, provide the resident with a written
explanation as to the cause of the damage prior to imposing a charge for the damage to
the meter.
new text end

Sec. 10. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2010, section 326B.43, subdivision 6, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end