Minnesota Legislature
HF 156
as introduced - 93rd Legislature (2023 - 2024) Posted on 01/12/2023 07:56am
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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
327C.015, subdivision 18, by adding subdivisions; 327C.02, subdivision 2;
327C.04, subdivisions 1, 2, by adding subdivisions; repealing Minnesota Statutes
2022, section 327C.04, subdivisions 3, 4.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2022, section 327C.015, is amended by adding a subdivision
to read:
new text begin Subd. 1a. new text end
new text begin Accurately meter. new text end
new text begin
"Accurately meter" means the metering of consumption
of electricity, natural gas, water, and sewage and septic services by measuring devices that
meet the standards, including tolerance levels, established by the American National Standard
for Electricity Meters, the American Gas Association, or the American Water Works
Association, as applicable.
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. 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 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
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 18, is amended to read:
Subd. 18.
Utility service.
"Utility service" means any electric, fuel oil, natural or propane
gas, sewer, waste disposal and water service deleted text begin by whatever means furnisheddeleted text end new text begin that is provided
by a public utility or a municipal utilitynew 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. 5.
Minnesota Statutes 2022, section 327C.02, subdivision 2, is amended to read:
Subd. 2.
Modification of rules.
The park owner must give the resident at least 60 days'
notice in writing of any rule change. 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.
Any security deposit increase is a substantial modification of the rental agreement. A
reasonable rent increase made in compliance with section 327C.06 is not a substantial
modification of the rental agreement and is not considered to be a rule for purposes of section
327C.015, subdivision 12. new text begin The installation of water meters and the subsequent metering
and billing for water service is not a substantial modification of the lease, provided the park
owner complies with section 327C.04, subdivision 6. 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. 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.
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.015, subdivision 17:
(1) any significant changes in circumstances which have occurred since the original rule
was adopted and which necessitate the rule change; and
(2) any compensating benefits which the rule change will produce for the residents.
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. 6.
Minnesota Statutes 2022, section 327C.04, subdivision 1, is amended to read:
Subdivision 1.
Billing permitted.
A park owner who deleted text begin providesdeleted text end new text begin redistributesnew text end utility service
new text begin provided to the park owner by a public utility, a cooperative electric association, or a
municipal utility new text end to residents may charge the residents for that service, only if the charges
comply with this section.
Sec. 7.
Minnesota Statutes 2022, section 327C.04, subdivision 2, is amended to read:
Subd. 2.
Metering required.
new text begin (a) new text end 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
(b) Utility measuring devices installed by the park owner must be installed or repaired
only by a licensed plumber or licensed electrician.
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 utility service must promptly repair or replace a damaged or
inaccurate utility measuring device. A park owner may not charge the resident for repair or
replacement of a damaged utility measuring device unless the park owner can demonstrate
and document that the damage was caused by the resident's willful conduct. The park owner
must adjust or credit the resident's bill to fully account for the inaccurate measurements.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective August 1, 2023.
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 charges for metered service. new text end
new text begin
(a) A park owner may not charge to or
collect from a resident the amount of utility service consumed at a commodity rate that is
greater than the commodity rate at which the park owner purchases service from a utility
provider. The park owner must deduct the amount that reflects consumption that exclusively
or primarily is for the park owner's purposes.
new text end
new text begin
(b) If a bill a park owner receives from a utility provider separates a fixed service or
meter charge or fee from variable consumption charges, the park owner must deduct the
park owner's pro rata share and apportion the remaining fixed portion of the bill equally
among residents based on the number of units in the park.
new text end
new text begin
(c) If a bill a park owner receives from a utility provider separately itemizes taxes,
surcharges, and other miscellaneous charges other than a fixed service charge and variable
consumption charges, the park owner must deduct the park owner's pro rata share and
apportion the remaining portion of the bill reflecting the taxes, surcharges, and other
miscellaneous charges equally among residents based on the number of units in the park.
new text end
new text begin
(d) 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
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 Conditions for the subsequent installation of water meters. new text end
new text begin
Where a park
owner installs measuring devices for water service for a resident whose original lease
included water service, the park owner must, in the first month in which the park owner
bills the resident separately for water and for every month thereafter for the next 11 months,
reduce the rent by the amount of the water bill and, notwithstanding section 327C.06,
subdivision 3, may not increase the rent during that period. Thereafter, the park owner may
increase the rent in compliance with section 327C.06, provided the increase is based on the
rent in the month during the preceding 12 months in which the water bill was the highest.
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. 10. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2022, section 327C.04, subdivisions 3 and 4,
new text end
new text begin
are 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: 23-00713
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.