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HF 156

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 02/15/2023 11:34am

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 327C.015, subdivisions 17, 18, by adding subdivisions; 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. 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, an electric cooperative association, 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. 2.

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. 3.

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 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

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. 4.

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. 5.

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 utility provider
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 who provides utility service to residents
new text begin that is provided to the park owner by a public utility, a cooperative electric association, or
a municipal utility
new 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 park installer.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2023, for all 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 may not charge or collect
from a resident 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 Rent increases following the installation of water meters. new text end

new text begin A park owner may
not increase lot rents for 15 months following the commencement of utility billing for a
resident whose lease included water 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 services.
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: H0156-1

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.