HF 2707

as introduced - 92nd Legislature (2021 - 2022) Posted on 01/31/2022 10:36am

A bill for an act
relating to manufactured homes; amending provisions related to utility billing
practices in manufactured home parks; amending Minnesota Statutes 2020, sections
327C.01, by adding subdivisions; 327C.04, subdivision 2, by adding a subdivision;
repealing Minnesota Statutes 2020, section 327C.04, subdivisions 3, 4.

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

Section 1.

Minnesota Statutes 2020, section 327C.01, is amended by adding a subdivision
to read:

new text begin Subd. 14. new text end

new text begin Accurately measure. new text end

new text begin "Accurately measure" means the metering of
consumption of electricity, water, and sewage and septic services that are within the tolerance
levels established by the American Water Works Association, the American Gas Association,
or the American National Standard for Electricity Meters, as applicable.
new text end

Sec. 2.

Minnesota Statutes 2020, section 327C.01, is amended by adding a subdivision to
read:

new text begin Subd. 15. new text end

new text begin Commodity rate. new text end

new text begin "Commodity rate" means the price per gallon of water,
hundred cubic feet of natural gas, kilowatt-hour of electricity, therm of natural gas, or any
other unit of utility service that is based on the quantity of usage and approved by the state
or a municipal public utilities commission or a municipality.
new text end

Sec. 3.

Minnesota Statutes 2020, section 327C.01, is amended by adding a subdivision to
read:

new text begin Subd. 16. 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

Sec. 4.

Minnesota Statutes 2020, section 327C.04, subdivision 2, is amended to read:

Subd. 2.

Metering required.

new text begin (a) new text end A park owner deleted text begin 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. deleted text end new text begin may charge residents
for a utility service separately from rent only if:
new text end

new text begin (1) the park owner purchases the service from a municipal utility or a public utility; and
new text end

new text begin (2) the arrangement to separately charge for utilities is provided for in the original rental
agreement.
new text end

new text begin (b) A park owner who charges residents separately for a utility service must charge each
household the same amount, unless the park owner has installed measuring devices that
accurately measure each household's use of the utility service.
new text end

new text begin (c) A park owner must promptly investigate a report by a resident of a problem with the
resident's utility measuring device. A park owner who knows the utility measuring device
is not accurately measuring must promptly repair or replace a damaged or inaccurate
measuring device. The park owner may not charge the resident for repair or replacement
of a damaged measuring device unless the owner can demonstrate and document that the
damage was caused by the resident's willful conduct.
new text end

Sec. 5.

Minnesota Statutes 2020, section 327C.04, is amended by adding a subdivision to
read:

new text begin Subd. 3a. new text end

new text begin Utility service charges; resident billing. new text end

new text begin (a) A park owner who charges
residents for utility service separately from rent may only bill a resident for utility charges
for which the owner is billed by a municipal or public utility. An owner may not collect
from residents in the aggregate more than the owner is billed.
new text end

new text begin (b) A park owner must not require a resident to purchase, directly or indirectly, utility
service from the park owner or any other person.
new text end

new text begin (c) A park owner may not charge or otherwise receive payment from a resident for the
amount of utility service consumed based on the reading of the measuring device at a
commodity rate that is greater than the commodity rate at which the park owner purchases
service from a utility.
new text end

new text begin (d) If a park owner receives a bill from a utility that separates a fixed service charge or
fee from variable consumption charges, the owner must apportion the fixed portion of the
bill equally among residents based on the number of units in the park. In no case may the
owner collect more in the aggregate from residents for the service charge than what the
owner is billed for that charge.
new text end

new text begin (e) A park owner may not charge to or collect from residents any administrative, capital,
or other expenses including but not limited to disconnection, reconnection, and late payment
fees.
new text end

Sec. 6. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2020, section 327C.04, subdivisions 3 and 4, new text end new text begin are repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: 22-05046

327C.04 UTILITY CHARGES.

Subd. 3.

Permissible rates.

Except as provided in subdivision 4, no park owner shall, directly or indirectly, charge or otherwise receive payment from a resident for a utility service, or require a resident to purchase a utility service from the park owner or any other person, at a rate which is greater than either of the following:

(1) a rate which the resident could pay directly for the same utility service from some other comparable source in the same market area; or

(2) a rate which is charged to single family dwellings with comparable service within the same market area.

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.