HF 2816

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 11:32pm

A bill for an act
relating to landlord and tenant; modifying certain provisions related to utilities;
permitting termination of a lease for medical reasons; modifying provisions
related to eviction; amending Minnesota Statutes 2008, sections 504B.215,
subdivisions 2, 2a, 3, 4; 504B.241, subdivision 4; 504B.265; 504B.291,
by adding a subdivision; 504B.321, subdivision 1; 504B.385, subdivision
1; 504B.395, subdivision 4; Minnesota Statutes 2009 Supplement, section
504B.285, subdivision 1.

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

Section 1.

Minnesota Statutes 2008, section 504B.215, subdivision 2, is amended to
read:

Subd. 2.

Single-meter utility service payments.

Except as provided in subdivision
3, the landlord of a single-metered residential building shall be the bill payer responsible,
and shall be the customer of record contracting with the utility for utility services. The
landlord must advise the utility provider that the utility services apply to a single-metered
residential building. A failure by the landlord to comply with this subdivision is a
violation of sections 504B.161, subdivision 1, clause (1), and 504B.221. This subdivision
may not be waived by contract or otherwise. This subdivision does not require a landlord
to contract and pay for utility service provided to each residential unit through a separate new text begin
utility-provided new text end meter which accurately measures that unit's use only. This subdivision
does not prohibit a landlord from apportioning utility service payments among residential
units and either including utility costs in a unit's rent or billing for utility charges separate
from rent.

Sec. 2.

Minnesota Statutes 2008, section 504B.215, subdivision 2a, is amended to read:

Subd. 2a.

Conditions of separate utility billing to tenant in single-meter
buildings.

deleted text begin If the deleted text end new text begin (a) A new text end landlord of a single-metered residential building deleted text begin bills deleted text end new text begin may not
bill new text end for utility charges separate from the rent deleted text begin , the following conditions apply deleted text end new text begin unless the
landlord either new text end :

(1) deleted text begin prospective tenants must be provided notice of the total utility cost for the
building for each month of the most recent calendar year; and deleted text end new text begin installs in each unit a
submeter that:
new text end

new text begin (i) is of a quality and grade consistent with minimum industry standards established
by the American Water Works Association, the American Gas Association, or the
American National Standard for Electricity Meters, as applicable;
new text end

new text begin (ii) has been certified to be accurate according to the industry standards by a licensed
plumber or electrician having the requisite qualifications to determine accuracy;
new text end

new text begin (iii) is periodically inspected for accuracy; and
new text end

new text begin (iv) is replaced if it does not measure consumption 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; or
new text end

(2) new text begin establishes new text end an equitable method of apportionment and the frequency of billing by
the landlord new text begin , which new text end must be predetermined and put in writing for all leases.

new text begin For the purposes of this subdivision, "an equitable method of apportionment"
means a method that, with reasonable accuracy, estimates the consumption of each unit
of the utility service subject to apportionment by taking account of the totality of the
circumstances of each household in the building, including, but not limited to, the number
of persons living in the unit, the cubic footage of each unit, the location of each unit
within the building, the times of the day tenants are in the unit and using the utilities, the
number and nature of appliances, equipment, and other consumer goods that require
utilities to be operable, the usage habits and patterns of each household, and the degree to
which each household engages in sound conservation practices. An equitable method of
apportionment may not be determined based solely on any one factor.
new text end

new text begin (b) A landlord who bills tenants for utilities separately from rent may not impose
on or collect from tenants a fee or charge for billing and may bill and collect only that
amount representing the actual usage for the dwelling unit as recorded by the submeter or
the estimated amount for the dwelling unit established by the apportionment formula.
new text end

new text begin (c) If a landlord, who bills tenants separately from rent, receives a bill from a utility
that separates fixed monthly costs from variable consumption costs, the landlord may
apportion the fixed-cost portion of the bill, but may only do so if it is apportioned equally
among tenants based on the number of units in the building.
new text end

new text begin (d) A landlord must provide prospective tenants who may or will be subject to
apportionment or submetering with written notice of the actual costs for the dwelling unit
the prospective tenant will occupy for each utility that will be subject to apportionment or
submetering for each of the 12 months before the month in which the lease is contemplated
to begin.
new text end

new text begin (e) new text end The lease must contain a provision that, upon a tenant's request, a landlord must
provide a copy of the actual utility bill for the building along with each apportioned utility
bill. Upon a tenant's request, a landlord must also provide past copies of actual utility bills
for any period of the tenancy for which the tenant received an apportioned utility bill. Past
copies of utility bills must be provided for the preceding two years or from the time the
current landlord acquired the building, whichever is most recent.

new text begin (f) new text end The landlord of a single-metered residential building who bills separately
for utilities deleted text begin may, if the landlord and tenant agree, deleted text end new text begin must new text end provide tenants with a lease
term of one year or more the option to pay those bills under an annualized budget plan
providing for level monthly payments based on a good faith estimate of the annual bill. new text begin
No additional charge may be imposed upon a tenant choosing the option to pay bills
under an annualized budget plan.
new text end

new text begin (g) new text end By September 30 of each year, a landlord of a single-metered residential building
who bills for gas and electric utility charges separate from rent shall inform tenants in
writing of the possible availability of energy assistance from the low income home energy
assistance program. The information must contain the toll-free telephone number of
the administering agency.

Sec. 3.

Minnesota Statutes 2008, section 504B.215, subdivision 3, is amended to read:

Subd. 3.

Procedure.

(a) deleted text begin When deleted text end A municipality, utility company, or other company
supplying home heating oil, propane, natural gas, electricity, or water to a building new text begin that new text end
has issued a final notice deleted text begin or has posted the building deleted text end proposing to disconnect or discontinue
the service to the building because a landlord who has contracted for the service has failed
to pay for it new text begin , new text end or because a landlord is required by law or contract to pay for the service
and fails to do so, deleted text begin a tenant or group of tenants may pay to have the service continued or
reconnected as provided under this section deleted text end new text begin must also provide notice to the residents of
the impending disconnection by posting the building new text end . deleted text begin If a building is posted, deleted text end The posting
must be placed in at least one conspicuous location in the building and provide tenants
with, at a minimum, the following information:

(1) the date the service will be discontinued;

(2) the telephone number to call at the utility to obtain further information;

(3) a brief description of the rights of tenants under this section to continue or
restore service; and

(4) advice to consider seeking assistance from legal aid, a private attorney, or a
housing organization in exercising the rights of tenants under Minnesota law to maintain
their utility service.

new text begin A tenant or group of tenants may pay to have the service continued or reconnected as
provided under this section. new text end Before paying for the service, the tenant or group of tenants
shall give oral or written notice to the landlord of the tenant's intention to pay after 48
hours, or a shorter period that is reasonable under the circumstances, if the landlord has
not already paid for the service. In the case of oral notification, written notice shall be
mailed or delivered to the landlord within 24 hours after oral notice is given.

(b) In the case of natural gas or electricity, if the landlord has not paid the bill
by the time of the tenant's intended payment or if the service remains discontinued,
the tenant or tenants may pay the current charges for the most recent billing period
and the utility company or municipality must restore the service for at least one billing
period. In a residential building with less than five units, one of the tenants may notify
the utility company or municipality that the tenant agrees to become the bill payer
responsible and customer of record and the utility company or municipality must place
the account disconnected or subject to disconnection in the tenant's name and provide
service prospectively, provided the tenant satisfies all requirements for establishing
service. A tenant becoming the customer of record of a cooperative electric association
does not acquire membership rights. Exercise of the right to pay the current charges for
the most recent billing period does not preclude exercising the right to become the bill
payer responsible and customer of record, provided that if there are multiple tenants in an
affected multifamily building, the utility company or municipality is not required to offer
the right to become the bill payer responsible and the customer of record to more than
one tenant in a 12-month period.

(c) In the case of water, if the landlord has not paid the bill by the time of the tenant's
intended payment or if the service remains discontinued, upon request from a tenant, a
municipality must provide a copy of each bill the landlord fails to pay. The tenant:

(1) has a continuing right to pay the current charges for the most recent billing
period and retain service;

(2) has the period of time provided by the governing ordinance, policy, or practice
within which to pay the charges;

(3) is not subject to any deposit requirements; and

(4) is entitled to reasonable notice of any disconnection.

This paragraph does not require a municipality to alter its accounting system or
billing records if the tenant exercises the right to pay current charges and retain water
service. If there are multiple tenants in an affected property, the municipality is not
required to offer the right to pay current charges and retain service to more than one
tenant in a 12-month period.

(d) For purposes of this subdivision, "current charges" does not include arrears or
late payment fees incurred by the landlord.

(e) In a single-metered residential building, other residential tenants in the building
may contribute payments to the utility company or municipality on the account of the
tenant who is the customer of record under paragraph (b) or on the landlord's account
under paragraph (c).

(f) A landlord who satisfies all requirements for reestablishing service, including
paying, or entering into an agreement acceptable to the utility company or municipality to
pay, all arrears and other lawful charges incurred by the landlord on the account that was
placed in the tenant's name, may reestablish service in the landlord's name.

(g) This section does not restrict or prohibit a municipal utility provider from
exercising its authority pursuant to section 444.075, subdivisions 3 and 3e, to make
contracts with and impose utility charges against property owners and to certify unpaid
charges to the county auditor with taxes against the property served for collection as a tax.

(h) In the case of home heating oil or propane, if the landlord has not yet paid the
bill by the time of the tenant's intended payment, or if the service remains discontinued,
the tenant or tenants may order and pay for one month's supply of the proper grade and
quality of oil or propane.

(i) After submitting documentation to the landlord of the tenant's payment to the
utility company or municipality, a tenant may deduct the amount of the tenant's payment to
the utility company or municipality from the rental payment next paid to the landlord. Any
amount paid to the municipality, utility company, or other company by a tenant under this
subdivision is considered payment of rent to the landlord for purposes of section 504B.291.

Sec. 4.

Minnesota Statutes 2008, section 504B.215, subdivision 4, is amended to read:

Subd. 4.

Limitations; waiver prohibited; rights as additional.

new text begin (a) new text end The tenant
rights under this section:

(1) do not extend to conditions caused by the willful, malicious, or negligent conduct
of the tenant or of a person under the tenant's direction or control;

(2) may not be waived or modified; and

(3) are in addition to and do not limit other rights which may be available to the
tenant in law or equity, including the right to damages and the right to restoration of
possession of the premises under section 504B.291.

new text begin (b) A landlord who violates any provision of this section is liable to the tenant for
treble damages or $500, whichever is greater, plus reasonable attorney fees.
new text end

Sec. 5.

Minnesota Statutes 2008, section 504B.241, subdivision 4, is amended to read:

Subd. 4.

Court file information.

If a residential tenant screening service includes
information from a court file on an individual in a residential tenant report, the report must
provide the full name and date of birth of the individual in any case where the court
file includes the individual's full name and date of birth, and the outcome of the court
proceeding must be accurately recorded in the residential tenant report including the
specific basis of the court's decision, when available. new text begin A tenant screening service may not
make any reference to a court file for which there is no final decision. new text end If deleted text begin a tenant screening
service knows that deleted text end a court file has been expunged, the tenant screening service shall
delete any reference to that file in any data maintained or disseminated by the screening
service. Whenever the court supplies information from a court file on an individual, in
whatever form, the court shall include the full name and date of birth of the individual,
if that is indicated on the court file or summary, and information on the outcome of the
court proceeding, including the specific basis of the court's decision, coded as provided in
subdivision 5 for the type of action, when it becomes available. The residential tenant
screening service is not liable under section 504B.245 if the residential tenant screening
service reports complete and accurate information as provided by the court.

Sec. 6.

Minnesota Statutes 2008, section 504B.265, is amended to read:

504B.265 TERMINATION OF LEASE UPON DEATH OF TENANT.

Subdivision 1.

Termination of lease new text begin upon death new text end .

Any party to a lease of residential
premises other than a lease at will may terminate the lease prior to its expiration date in
the manner provided in subdivision 2 upon the death of the tenant or, if there is more than
one tenant, upon the death of all tenants.

new text begin Subd. 1a. new text end

new text begin Termination of lease upon infirmity. new text end

new text begin A tenant, or the authorized
representative of the tenant, may terminate the lease prior to its expiration date in the
manner provided in subdivision 2 if the tenant has, or if there is more than one tenant, all
the tenants have, been certified by a physician as:
new text end

new text begin (1) being no longer able, for medical reasons, to live without assistance with
instrumental activities of daily living or personal activities of daily living; and
new text end

new text begin (2) needing:
new text end

new text begin (i) to move into a nursing home, as defined in section 144A.01, subdivision 5;
new text end

new text begin (ii) hospice care, as defined in section 144A.75, subdivision 8, or to move into a
residential hospice facility, as defined in section 144A.75, subdivision 13;
new text end

new text begin (iii) to move into a boarding care or supervised living facility licensed under chapter
144;
new text end

new text begin (iv) to move into a housing with services establishment, as defined in section
144D.01, subdivision 4;
new text end

new text begin (v) assisted living, as defined in section 144G.01, subdivision 2;
new text end

new text begin (vi) an accessible unit, as defined in section 363A.40, subdivision 1, paragraph (a);
new text end

new text begin (vii) to enter a foster care for adults program as defined in section 245A.02,
subdivision 6c; or
new text end

new text begin (viii) to move to any other residence with services that is licensed or certified by the
Department of Health or the Department of Human Services.
new text end

Subd. 2.

Notice.

new text begin (a) new text end Either the landlord or the personal representative of the tenant's
estate may terminate the lease deleted text begin upon deleted text end new text begin as provided in subdivision 1 by providing new text end at least two
months' written notice, to be effective on the last day of a calendar month, and hand
delivered or mailed by postage prepaid, first class United States mail, to the address of
the other party. The landlord may comply with the notice requirement of this subdivision
by delivering or mailing the notice to the premises formerly occupied by the tenant. The
termination of a lease under this section shall not relieve the tenant's estate from liability
either for the payment of rent or other sums owed prior to or during the notice period,
or for the payment of amounts necessary to restore the premises to their condition at the
commencement of the tenancy, ordinary wear and tear excepted.

new text begin (b) Either the tenant or the tenant's authorized representative may terminate the lease
if the conditions in subdivision 1a have been met by providing at least two months' written
notice, to be effective on the last day of a calendar month, and hand-delivered or mailed by
postage prepaid, first class United States mail, to the landlord and paying the equivalent of
one month's rent. The termination of a lease under this section shall not relieve the eligible
tenant from liability either for the payment of rent or other sums owed prior to or during
the notice period, or for the payment of amounts necessary to restore the premises to their
condition at the commencement of the tenancy, ordinary wear and tear excepted.
new text end

Subd. 3.

Waiver prohibited.

Any attempted waiver by a landlord and tenant or
tenant's personal representative, by contract or otherwise, of the deleted text begin right deleted text end new text begin rights new text end of termination
provided by this section, and any lease provision or agreement requiring a longer notice
period than that provided by this section, shall be void and unenforceable; provided,
however, that the landlord and tenant or tenant's personal representative may agree to
otherwise modify the specific provisions of this section.

Subd. 4.

Applicability.

The provisions of this section new text begin , except subdivision 1a, new text end apply
to leases entered into or renewed after May 12, 1981. new text begin The provisions of subdivision 1a
apply to leases entered into or renewed after January 1, 2011.
new text end

Sec. 7.

Minnesota Statutes 2009 Supplement, section 504B.285, subdivision 1, is
amended to read:

Subdivision 1.

Grounds.

The person entitled to the premises may recover
possession by eviction when:

(1) any person holds over real property:

(i) after a sale of the property on an execution or judgment; or

(ii) after the expiration of the time for redemption on foreclosure of a mortgage, or
after termination of contract to convey the property, provided that if the person holding
the real property after the expiration of the time for redemption or termination was a
tenant during the redemption or termination period under a lease of any duration and the
lease began after the date the mortgage or contract for deed was executed but prior to the
expiration of the time for redemption or termination, and the person has received deleted text begin :
deleted text end

deleted text begin (A) deleted text end at least deleted text begin two deleted text end new text begin three new text end months' written notice to vacate new text begin given new text end no sooner than deleted text begin one
month after the expiration of the time for redemption or termination deleted text end new text begin the later of the date
on which the redemption period expires or the date on which the lease expires new text end , provided
that the tenant pays the rent and abides by all terms of the lease; deleted text begin or
deleted text end

deleted text begin (B) at least two months' written notice to vacate no later than the date of the
expiration of the time for redemption or termination, which notice shall also state that the
sender will hold the tenant harmless for breaching the lease by vacating the premises if the
mortgage is redeemed or the contract is reinstated;
deleted text end

(2) any person holds over real property after termination of the time for which
it is demised or leased to that person or to the persons under whom that person holds
possession, contrary to the conditions or covenants of the lease or agreement under which
that person holds, or after any rent becomes due according to the terms of such lease or
agreement new text begin , provided the person first complies with the provisions in section 504B.291,
subdivision 1a, or 504B.321, subdivision 2, as applicable new text end ; or

(3) any tenant at will holds over after the termination of the tenancy by notice to quit.

Sec. 8.

Minnesota Statutes 2008, section 504B.291, is amended by adding a
subdivision to read:

new text begin Subd. 1a. new text end

new text begin Tenant's right to cure or vacate prior to eviction. new text end

new text begin (a) A landlord must
provide the tenant with a notice and opportunity to cure or vacate seven days prior to
bringing an action under subdivision 1.
new text end

new text begin (b) The notice must inform the tenant of the amount necessary to cure the breach for
nonpayment, the amount of any rent that will become due in the following month, and
that the landlord may proceed with an eviction following the expiration of the seven-day
period if the tenant neither pays the full amount necessary to cure nor vacates.
new text end

new text begin (c) The opportunity to cure is available to a tenant twice in any 12-month period;
provided that a resident may exercise the right of redemption more than twice in any
12-month period by paying the landlord's actual reasonable attorney fees as part of each
additional exercise of the right during the 12-month period.
new text end

Sec. 9.

Minnesota Statutes 2008, section 504B.321, subdivision 1, is amended to read:

Subdivision 1.

Procedure.

(a) To bring an eviction action, deleted text begin the deleted text end new text begin a new text end person deleted text begin complaining deleted text end
shall file a complaint with the court, stating the full name and date of birth of the person
against whom the complaint is made, unless it is not known, describing the premises of
which possession is claimed, stating the facts which authorize the recovery of possession,
and asking for recovery thereof. new text begin Seven days prior to bringing an action under this
subdivision, the complainant must provide notice and an opportunity to cure.
new text end

(b) The lack of the full name and date of birth of the person against whom the
complaint is made does not deprive the court of jurisdiction or make the complaint invalid.

(c) The court shall issue a summons, commanding the person against whom the
complaint is made to appear before the court on a day and at a place stated in the summons.

(d) The appearance shall be not less than seven nor more than 14 days from the day
of issuing the summons, except as provided by subdivision 2.

(e) A copy of the complaint shall be attached to the summons, which shall state that
the copy is attached and that the original has been filed.

Sec. 10.

Minnesota Statutes 2008, section 504B.385, subdivision 1, is amended to read:

Subdivision 1.

Escrow of rent.

(a) If a violation exists in a residential building,
a residential tenant may deposit the amount of rent due to the landlord with the court
administrator using the procedures described in paragraphs (b) to (d).

(b) For a violation as defined in section 504B.001, subdivision 14, clause (1), the
residential tenant may deposit with the court administrator the rent due to the landlord
along with a copy of the written notice of the code violation as provided in section
504B.185, subdivision 2. The residential tenant may not deposit the rent or file the written
notice of the code violation until the time granted to make repairs has expired without
satisfactory repairs being made, unless the residential tenant alleges that the time granted
is excessive.

(c) For a violation as defined in section 504B.001, subdivision 14, clause (2) or (3),
the residential tenant must give written notice to the landlord specifying the violation. The
notice must be delivered personally or sent to the person or place where rent is normally
paid. If the violation is not corrected within deleted text begin 14 deleted text end new text begin seven new text end days, the residential tenant may
deposit the amount of rent due to the landlord with the court administrator along with an
affidavit specifying the violation. The court must provide a simplified form affidavit for
use under this paragraph.

(d) The residential tenant need not deposit rent if none is due to the landlord at the
time the residential tenant files the notice required by paragraph (b) or (c). All rent which
becomes due to the landlord after that time but before the hearing under subdivision 6
must be deposited with the court administrator. As long as proceedings are pending under
this section, the residential tenant must pay rent to the landlord or as directed by the court
and may not withhold rent to remedy a violation.

Sec. 11.

Minnesota Statutes 2008, section 504B.395, subdivision 4, is amended to read:

Subd. 4.

Landlord must be informed.

A landlord must be informed in writing of
an alleged violation at least deleted text begin 14 deleted text end new text begin seven new text end days before an action is brought by:

(1) a residential tenant of a residential building in which a violation as defined in
section 504B.001, subdivision 14, clause (2) or (3), is alleged to exist; or

(2) a housing-related neighborhood organization, with the written permission of a
residential tenant of a residential building in which a violation, as defined in section
504B.001, subdivision 14, clause (2), is alleged to exist. The notice requirement may be
waived if the court finds that the landlord cannot be located despite diligent efforts.