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HF 156

3rd Engrossment - 93rd Legislature (2023 - 2024) Posted on 03/21/2023 08:26am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
 relating to housing; 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 dwellingsnew text begin or a manufactured home park, as defined in section 327C.015,
subdivision 8new text end , 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.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

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


new text begin Subd. 3a. new text end

new text begin Commodity rate. new text end

new text begin "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.
 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

Sec. 3.

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


new text begin Subd. 11a. new text end

new text begin Public utility. new text end

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

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.new text begin 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.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

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


new text begin Subd. 17a. new text end

new text begin Utility provider. new text end

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

Sec. 6.

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


Subdivision 1.

Billing permitted.

A park owner whonew text begin eithernew text end provides utility servicenew text begin
directlynew text end to residentsnew text begin or who redistributes to residents utility service provided to the park
owner by a utility providernew text end may charge the residents for that service, only if the charges
comply with this section.

new text begin EFFECTIVE DATE. new text end

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

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.new text begin 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.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

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


new text begin Subd. 5. new text end

new text begin Utility charge for metered service. new text end

new text begin (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.
 new text end

new text begin (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.
 new text end

new text begin (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.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023.
 new text end

Sec. 9.

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


new text begin Subd. 6. new text end

new text begin Rent increases following the installation of water meters. new text end

new text begin A park owner may
not increase lot rents for 13 months following the commencement of utility bills for a resident
whose lease included water and sewer 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 and sewer service.
 new text end

new text begin EFFECTIVE DATE. new text end

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

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

new text begin Minnesota Statutes 2022, section 327C.04, subdivision 4, 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 July 1, 2023.
 new text end

APPENDIX

Repealed Minnesota Statutes: H0156-3

327C.04 UTILITY CHARGES.

Subd. 4.

Electricity.

If a park owner provides electricity to residents by reselling electricity purchased from a public or municipal utility or electrical cooperative, and compliance with subdivision 3 would cause the park owner to lose money on the sale of electricity, the park owner may bill residents at a rate calculated to allow the park owner to avoid losing money on the sale of electricity. In calculating the cost of providing electricity, the park owner may consider only the actual amount billed by the public utility or electrical cooperative to the park owner for electricity furnished to residents. The park owner may not consider administrative, capital or other expenses.