HF 4558

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/18/2024 04:39pm

A bill for an act
relating to energy; providing for and regulating single-metered utility service in
residential buildings; amending Minnesota Statutes 2022, sections 216B.022;
504B.285, subdivision 4; Minnesota Statutes 2023 Supplement, section 216B.172,
subdivisions 1, 2; proposing coding for new law in Minnesota Statutes, chapters
216B; 504B; repealing Minnesota Statutes 2022, section 504B.215.

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

Section 1.

new text begin [216B.021] ELECTION BY LANDLORDS OF SINGLE-METERED
RESIDENTIAL BUILDINGS TO BE SUBJECT TO COMMISSION AUTHORITY.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section to section 216B.024, the
following terms have the meanings given.
new text end

new text begin (b) "Directly meter" means a device, installed by a utility in one or more units in a
multifamily residential building, that:
new text end

new text begin (1) is owned, read, and maintained by a utility;
new text end

new text begin (2) measures electricity or natural gas consumption in a tenant's dwelling unit; and
new text end

new text begin (3) constitutes the basis for a utility to directly bill a tenant.
new text end

new text begin (c) "Landlord" has the meaning given in section 504B.216, subdivision 1.
new text end

new text begin (d) "Single-metered residential building" has the meaning given in section 504B.216,
subdivision 1.
new text end

new text begin (e) "Submeter" means a meter in a single-metered residential building that is owned by
a landlord and installed by the landlord or by a third party at the landlord's request, and that
measures electricity or natural gas consumption solely within an individual dwelling unit
in the building.
new text end

new text begin (f) "Submetering" means installing or using a submeter and charging or billing the tenant
for utility service separately from rent.
new text end

new text begin (g) "Tenant" means a person who is occupying a dwelling unit in a residential building
under a lease or contract, whether oral or written, and all other regular occupants of the
tenant's dwelling unit.
new text end

new text begin (h) "Third-party billing agent" means a person or entity other than the property owner
that handles utility billing and collections, submeter readings, and any other utility
management services at a single-metered residential building.
new text end

new text begin (i) "Utility" means a public utility, a municipal utility, or a cooperative electric
association.
new text end

new text begin (j) "Utility service" means electricity or natural gas.
new text end

new text begin Subd. 2. new text end

new text begin Election. new text end

new text begin (a) Notwithstanding section 216B.02, subdivision 4, a landlord of a
single-metered residential building may elect to become subject to the commission's authority,
as provided in this section to section 216B.024.
new text end

new text begin (b) A landlord who does not elect to become subject to the commission's authority is
prohibited from submetering.
new text end

new text begin Subd. 3. new text end

new text begin Registration; fee. new text end

new text begin (a) A landlord who elects to be subject to the commission's
authority must register with the commission by submitting registration on a form developed
by the commission. The registration form must contain:
new text end

new text begin (1) the name of the landlord and, if any, the property manager and third-party billing
agent;
new text end

new text begin (2) the physical address of the landlord, which must not be a post office box, and the
landlord's telephone number and email address;
new text end

new text begin (3) the residential building or buildings owned or operated by the landlord that are
submetered or that the landlord intends to submeter, including the number of units in each
building; and
new text end

new text begin (4) any other information the commission deems necessary.
new text end

new text begin (b) A landlord who elects to be regulated by the commission must pay an initial
registration fee and an annual registration fee thereafter. The initial and annual fees must
be established by the commission and must be sufficient to cover the commission's costs
to implement this section to section 216B.024. Failure to pay the fee results in temporary
suspension or permanent termination, as determined by the commission, of the landlord's
right to bill tenants for utility service measured through a submeter.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025.
new text end

Sec. 2.

Minnesota Statutes 2022, section 216B.022, is amended to read:

216B.022 SUBMETERING new text begin IN SINGLE-METERED RESIDENTIAL BUILDINGS new text end .

new text begin Subdivision 1. new text end

new text begin Conditions of submetering. new text end

deleted text begin Nothing in this chapter grants the commission
or a public utility the authority to limit the availability of deleted text end new text begin (a) new text end Submetering deleted text begin to a building
occupant when the building is served by a public utility's master meter which measures the
total electric energy delivered to the building deleted text end new text begin a single-metered residential building is
prohibited except as provided in this section new text end .

new text begin (b) A landlord of a single-metered residential building who elects to be subject to the
commission's authority must request that a utility directly meter each unit in the building if
the utility offers the option. Once the individual meters are installed by the utility, the
landlord is prohibited from submetering or from including any utility charges in rent.
new text end

new text begin (c) A landlord is prohibited from removing a directly metered tenant from the tenant's
existing utility account or requesting that a utility remove the tenant from the tenant's existing
utility account.
new text end

new text begin (d) Submeters must be read at the end of each month and cover the period from the first
to the last day of the month.
new text end

new text begin (e) Submeters must be installed, replaced, or repaired only by a licensed and qualified
professional.
new text end

new text begin (f) A landlord that installs submeters must comply with all state and national standards
for electric and gas meters, including, as applicable:
new text end

new text begin (1) section 216B.09;
new text end

new text begin (2) Minnesota Rules, part 7826.1000;
new text end

new text begin (3) American National Standards Institute, Code for Electricity Metering; and
new text end

new text begin (4) any metering standards established by the commission.
new text end

new text begin (g) A landlord who installs submeters must file with the commission a document that
identifies the number of submeters installed and certifies that the submeters comply with
paragraph (f).
new text end

new text begin (h) Upon a finding by the commission that a landlord has materially violated this section,
the commission may order a landlord to cease submetering and billing tenants for utility
service separate from rent.
new text end

new text begin Subd. 2. new text end

new text begin Inaccurate submeters. new text end

new text begin (a) If a tenant notifies the landlord in writing that the
tenant suspects the submeter is incorrectly registering the tenant's electricity or gas
consumption, the landlord must promptly engage a licensed and qualified professional to
test the submeter and report the results to the tenant. If the tenant disagrees with the report's
findings, the tenant, at the tenant's own expense, may have a licensed and qualified
professional test the submeter.
new text end

new text begin (b) If testing indicates a submeter has an average error of more than two percent fast,
the landlord must promptly refund to the customer the overcharge. If testing indicates a
submeter has an average error of more than two percent slow, the landlord may charge for
electricity or natural gas consumed but not included in the bills previously rendered. The
refund or charge for both fast and slow submeters must be based on corrected meter readings.
If the date the submeter first malfunctioned can be ascertained with certainty, the amount
of the refund or billing for the undercharge must not exceed a malfunction period covering
one year. If the date the submeter first malfunctioned cannot be ascertained with certainty,
the amount of the refund or undercharge must not exceed a malfunction period covering
six months. Any undercharge the landlord collects must be recovered under section 216B.024,
subdivision 3.
new text end

new text begin (c) If a tenant provides notice to the landlord under paragraph (a) and the landlord fails
to check the submeter within a reasonable time, the landlord is prohibited from back billing
for the period between the date the tenant provided notice and the date the submeter was
checked.
new text end

new text begin (d) Upon a finding by a licensed and qualified professional that the submeter is more
than two percent fast, the landlord must repair or replace the malfunctioning meter within
a reasonable time and provide certification to the tenant that the submeter has been repaired
or replaced.
new text end

new text begin Subd. 3. new text end

new text begin Fees. new text end

new text begin A landlord is prohibited from charging to or collecting from tenants any
administrative, capital, or any other expenses associated with installing, maintaining,
repairing, replacing, or reading submeters.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025.
new text end

Sec. 3.

new text begin [216B.023] BILLING; DISPUTE RESOLUTION.
new text end

new text begin Subdivision 1. new text end

new text begin Billing basis. new text end

new text begin A bill for utility service provided by a landlord to a tenant
must be based on actual submeter readings.
new text end

new text begin Subd. 2. new text end

new text begin Billing interval. new text end

new text begin A bill for utility service must be provided to a tenant monthly.
A landlord that submeters and bills for utility service must include in the lease or, if there
is no lease, provide a written statement at the outset of the tenant's occupancy or rental
period, a notice that indicates when monthly utility bills are issued.
new text end

new text begin Subd. 3. new text end

new text begin Billing content. new text end

new text begin A monthly bill for utility service rendered by a landlord to a
tenant for utility service must include but is not limited to:
new text end

new text begin (1) the present and last preceding submeter readings;
new text end

new text begin (2) the date of the present reading;
new text end

new text begin (3) the rate at which the utility service is being billed and the rate at which the landlord
is being billed by the utility provider for the utility service; and
new text end

new text begin (4) the total amount of the monthly bill and an itemized list containing:
new text end

new text begin (i) the volumetric usage charge, calculated by multiplying the amount of consumption
by the allowable rate;
new text end

new text begin (ii) the tenant's portion for any fixed meter or service charge and taxes and miscellaneous
charges billed to the landlord by the utility provider, calculated as provided under subdivision
4, paragraph (b); and
new text end

new text begin (iii) the date by which payment is due; the date after which, if the bill is not paid, a late
payment charge is imposed; and the amount of the charge, if any.
new text end

new text begin Subd. 4. new text end

new text begin Rates and other charges. new text end

new text begin (a) A landlord that submeters is prohibited from
charging a tenant a rate that exceeds the rate at which the landlord purchases utility service
from a utility provider. Before billing tenants for utility service, a landlord must deduct
utility service used exclusively or primarily for the landlord's purposes.
new text end

new text begin (b) If a utility bill that a landlord receives from a utility provider separates variable
consumption charges from a fixed service or meter charge or fee, taxes, surcharges, or other
miscellaneous charges, the landlord must deduct the landlord's pro rata share of the 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 residential building.
new text end

new text begin (c) A landlord is prohibited from charging to or collecting from tenants any administrative
or any other fees or charges associated with billing, collecting for, or any other aspect of
providing utility services.
new text end

new text begin Subd. 5. new text end

new text begin Billing errors. new text end

new text begin When a tenant is overcharged or undercharged for utility service
due to an error other than an inaccurate meter, the overcharge must be refunded to the tenant
or the amount of the undercharge may be billed to the tenant. If the date the error first
occurred can be ascertained with certainty, the amount of the refund or billing for the
undercharge must not exceed an error period covering one year. If the date the error first
occurred cannot be ascertained with certainty, the amount of the refund or undercharge must
not exceed an error period covering six months. Any undercharge the landlord collects must
be recovered under section 216B.024, subdivision 3.
new text end

new text begin Subd. 6. new text end

new text begin Late payment charges. new text end

new text begin A landlord may impose a late payment fee if the
landlord does not receive a tenant's utility bill payment by the next scheduled billing date.
The amount of the late charge must not exceed one and one-half percent per monthly billing
period on the delinquent amount. A late payment charge must not be imposed if the
delinquent amount is $10 or less.
new text end

new text begin Subd. 7. new text end

new text begin Other fees. new text end

new text begin A landlord is prohibited from charging to or collecting from tenants
any administrative, capital, or any other expenses associated with installing, maintaining,
repairing, replacing, or reading submeters.
new text end

new text begin Subd. 8. new text end

new text begin Dispute resolution procedure. new text end

new text begin A tenant that disputes a bill under this section
or claims a violation of section 216B.022 or 216B.024 must first attempt to resolve the
dispute or claim with the landlord. If the tenant disagrees with the proposed resolution, the
landlord must notify the tenant of the tenant's right to file a complaint with the commission
and provide the tenant with the telephone number, physical address, and email address of
the consumer affairs office. The consumer affairs office must follow the procedures under
section 216B.172, subdivision 2. Minnesota Rules, part 7829.3200, and the procedures
under section 216B.172, subdivisions 3 and 4, apply to disputes under this subdivision.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025.
new text end

Sec. 4.

new text begin [216B.024] CONSUMER PROTECTIONS FOR TENANTS IN
SINGLE-METERED RESIDENTIAL BUILDINGS.
new text end

new text begin Subdivision 1. new text end

new text begin Budget billing plans. new text end

new text begin (a) A landlord that submeters must offer each
tenant a budget billing plan. Within 30 days of the date a 12-month period ends, the landlord
must compare a tenant's aggregate utility service payments with what the tenant would have
actually paid for the tenant's consumption and other allowable charges. If the tenant has
paid more for the utility service under the plan than the actual annual bill, the landlord must
either refund the overpayment or reduce the budget billing amount accordingly for the
subsequent 12-month period. If the tenant has paid less for the utility service under the plan
than the actual annual bill, the landlord must permit the tenant to pay the difference in equal
installments over the next 12 months.
new text end

new text begin (b) For the purposes of this subdivision, "budget billing plan" means a payment plan
that divides annual utility service charges into 12 equal monthly payments.
new text end

new text begin Subd. 2. new text end

new text begin Payment agreements. new text end

new text begin A landlord must offer a payment agreement for a tenant
to pay utility service arrears. If the tenant receives or is eligible for public assistance or legal
aid services, payment agreements must be consistent with the tenant's financial circumstances
and any extenuating circumstances of the household.
new text end

new text begin Subd. 3. new text end

new text begin Undercharges. new text end

new text begin (a) A landlord must offer a payment agreement to a tenant who
has been undercharged if the tenant or member of the tenant's household has not engaged
in culpable conduct that caused the undercharge. The agreement must cover a period equal
to the time over which the undercharge occurred or a different time period that is mutually
agreeable to the tenant and the landlord, except that the duration of a payment agreement
offered by a landlord to a tenant who is receiving or eligible for public assistance, or is
eligible for legal aid services, must be consistent with the financial circumstances and any
extenuating circumstances of the customer's household.
new text end

new text begin (b) An interest or delinquency fee must not be charged as part of an undercharge
agreement under this subdivision.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025.
new text end

Sec. 5.

Minnesota Statutes 2023 Supplement, section 216B.172, subdivision 1, is amended
to read:

Subdivision 1.

Definitions.

(a) For the purposes of this section, the following terms have
the meanings given.

(b) "Appeal" means a request a complainant files with the commission to review and
make a final decision regarding the resolution of the complainant's complaint by the consumer
affairs office.

(c) "Complainant" means an individual residential customer new text begin or tenant new text end who files with the
consumer affairs office a complaint against a public utility.

(d) "Complaint" means an allegation submitted to the consumer affairs office by a
complainant that a public utility's action or practice regarding billing or terms and conditions
of service:

(1) violates a statute, rule, tariff, service contract, or other provision of law;

(2) is unreasonable; or

(3) has harmed or, if not addressed, harms a complainant.

Complaint does not include an objection to or a request to modify any natural gas or
electricity rate contained in a tariff that has been approved by the commission. A complaint
under this section is an informal complaint under Minnesota Rules, chapter 7829.

(e) "Consumer affairs office" means the staff unit of the commission that is organized
to receive and respond to complaints.

(f) "Informal proceeding" has the meaning given in Minnesota Rules, part 7829.0100,
subpart 8.

(g) new text begin "Landlord" has the meaning given in section 216B.021, subdivision 1.
new text end

new text begin (h) new text end "Public assistance" has the meaning given in section 550.37, subdivision 14.

deleted text begin (h) deleted text end new text begin (i) new text end "Public utility" has the meaning given in section 216B.02, subdivision 4.

new text begin (j) "Tenant" has the meaning given in section 216B.021, subdivision 1.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025.
new text end

Sec. 6.

Minnesota Statutes 2023 Supplement, section 216B.172, subdivision 2, is amended
to read:

Subd. 2.

Complaint resolution procedure.

A complainant must first attempt to resolve
a dispute with a public utility new text begin . If a complainant is dissatisfied with the proposed resolution
by the public utility, the complainant may seek assistance of the commission to resolve the
matter new text end by filing a complaint with the consumer affairs office. The consumer affairs office
must: (1) notify the complainant of the resolution of the complaint; and (2) provide written
notice of (i) the complainant's right to appeal the resolution to the commission, and (ii) the
steps the complainant may take to appeal the resolution. Upon request, the consumer affairs
office must provide to the complainant a written notice containing the substance of and
basis for the resolution. Nothing in this section affects any other rights existing under this
chapter or other law.

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.

new text begin [504B.216] UTILITY SERVICE IN SINGLE-METERED RESIDENTIAL
BUILDINGS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Commission" means the public utilities commission.
new text end

new text begin (c) "Directly meter" has the meaning given in section 216B.021, subdivision 1.
new text end

new text begin (d) "Landlord" has the meaning given in section 504B.001, subdivision 7. For the
purposes of this section, landlord includes a third-party billing agent.
new text end

new text begin (e) "Single-metered residential building" means a multiunit rental building with one or
more separate residential living units where all of the applicable utility service consumed
in the building, including service consumed by tenants in each individual unit, is measured
through a single meter.
new text end

new text begin (f) "Submeter" has the meaning given in section 216B.021, subdivision 1.
new text end

new text begin (g) "Third-party billing agent" has the meaning given in section 216B.021, subdivision
1.
new text end

new text begin Subd. 2. new text end

new text begin Landlord is bill payer and customer of record. new text end

new text begin (a) The landlord of a
single-metered residential building is the bill payer responsible and must be the customer
of record contracting with a utility provider for utility service. Except as provided in
paragraph (b), a tenant is not responsible to a utility provider or landlord for utility service.
The landlord must advise the utility provider that the utility services apply to a single-metered
residential building.
new text end

new text begin (b) Notwithstanding paragraph (a):
new text end

new text begin (1) a tenant may be liable to the utility provider for utility service if the tenant exercises
the right granted under subdivision 6 because the landlord has failed to pay for utility service
and the utility provider issues a final notice proposing to disconnect or discontinue the
service to the building; and
new text end

new text begin (2) a tenant may be liable to the landlord for utility service if the landlord lawfully
submeters under section 216B.022.
new text end

new text begin (c) A landlord that fails to comply with this subdivision violates sections 504B.161,
subdivision 1, paragraph (a), clause (1), and 504B.221.
new text end

new text begin (d) This subdivision does not require a landlord to contract and pay for directly metered
utility services furnished to each residential unit by a utility provider.
new text end

new text begin (e) A landlord of a single-metered residential building is prohibited from: (1) apportioning
charges for utility services among residential units; and (2) except as otherwise provided
by this section, submetering.
new text end

new text begin (f) This subdivision may not be waived by contract or otherwise.
new text end

new text begin Subd. 3. new text end

new text begin Limitation on charging for utility services separately from rent. new text end

new text begin A landlord
is prohibited from charging or billing for utility service separately from rent unless the
landlord elects to be subject to the authority of the public utility commission under section
216B.021 and installs a submeter that complies with section 216B.022.
new text end

new text begin Subd. 4. new text end

new text begin Disconnection of utility service prohibited. new text end

new text begin (a) A landlord is prohibited from
disconnecting a tenant's utility service for the failure to pay utility service charges. Nothing
in this subdivision prohibits a public utility, a municipal utility, or a cooperative electric
association from disconnecting service to a landlord's single meter as otherwise allowed by
law.
new text end

new text begin (b) A landlord may bring a claim for breach of lease under section 504B.285, subdivision
4, against a tenant that fails to pay for utilities billed separately from rent as allowed under
this section, provided that:
new text end

new text begin (1) the landlord has offered and the tenant has defaulted on a payment agreement to pay
amounts owed for utility charges, as required under section 216B.024, subdivision 2;
new text end

new text begin (2) an eviction action must not be filed for the failure to pay utility service charges:
new text end

new text begin (i) during the cold weather period;
new text end

new text begin (ii) during a heat emergency; or
new text end

new text begin (iii) if the tenant or a member of the tenant's household is experiencing a medical
emergency or if medical equipment requiring electricity necessary to sustain life is in use;
and
new text end

new text begin (3) the tenant may, at any time before possession has been delivered, cure the breach by
bringing to court the amount of the utility charges that are in arrears, with an additional
charge as provided under section 216B.023, subdivision 6.
new text end

new text begin (c) If the tenant's failure to pay utility charges occurs during the cold weather period, if
a medical emergency occurs, or if medical equipment requiring electricity necessary to
sustain life is in use, a landlord must follow the procedures under section 216B.024,
subdivision 2.
new text end

new text begin (d) A violation of this section is a violation of section 504B.221.
new text end

new text begin (e) For the purposes of this subdivision:
new text end

new text begin (1) "cold weather rule" has the meaning given in section 216B.098, subdivision 1;
new text end

new text begin (2) "disconnection" includes installation of a service, load limiter, or any device that
limits or interrupts utility service in any way; and
new text end

new text begin (3) "heat emergency" means any period when an excessive heat watch, heat advisory,
or excessive heat warning issued by the National Weather Service is in effect.
new text end

new text begin Subd. 5. new text end

new text begin Procedure where landlord defaults on payments to the utility. new text end

new text begin (a) A utility
provider that supplies natural gas, electricity, or water to a building, or another company
that supplies home heating oil or propane to a building, who issues a final notice proposing
to disconnect or discontinue the service to the building because a landlord who has contracted
for the service has failed to pay for the service, or because a landlord is required by law or
contract to pay for the service and fails to do so, must provide notice to the residents of the
impending disconnection by posting the building. The posting must be placed in at least
one conspicuous location in or on the building and provide tenants with, at a minimum, the
following information:
new text end

new text begin (1) the date the service will be discontinued;
new text end

new text begin (2) the telephone number at the utility to call to obtain further information;
new text end

new text begin (3) a brief description of a tenant's rights under this section to continue or restore service;
and
new text end

new text begin (4) advice to consider seeking assistance from legal aid, a private attorney, or a housing
organization to exercise the tenant's right to maintain utility service under Minnesota law.
new text end

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

new text begin (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. A tenant
that exercises the right to pay the current charges for the most recent billing period does not
preclude the tenant from 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.
new text end

new text begin (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:
new text end

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

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

new text begin (3) is not subject to any deposit requirements; and
new text end

new text begin (4) is entitled to reasonable notice of any disconnection.
new text end

new text begin This paragraph does not require a municipality to alter the municipality's 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.
new text end

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

new text begin (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).
new text end

new text begin (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.
new text end

new text begin (g) This section does not restrict or prohibit a municipal utility provider from exercising
the municipal utility provider's authority under section 444.075, subdivisions 3 and 3e, to
(1) make contracts with and impose utility charges against property owners, and (2) certify
unpaid charges to the county auditor with taxes against the property served for collection
as a tax.
new text end

new text begin (h) In the case of home heating oil or propane, if the landlord does not pay 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.
new text end

new text begin (i) After submitting documentation to the landlord documenting 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 next rental payment paid to the landlord.
Any amount paid to the municipality, utility company, or other company by a tenant under
this subdivision is considered rent payment to the landlord for purposes of section 504B.291.
new text end

new text begin Subd. 6. new text end

new text begin Limitations; waiver prohibited; rights as additional. new text end

new text begin The tenant rights under
this section:
new text end

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

new text begin (2) may not be waived or modified; and
new text end

new text begin (3) are in addition to and do not limit other rights that 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 end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025.
new text end

Sec. 8.

Minnesota Statutes 2022, section 504B.285, subdivision 4, is amended to read:

Subd. 4.

Nonlimitation of landlord's rights.

new text begin (a) new text end Nothing contained in subdivisions 2
and 3 limits the right of the landlord pursuant to the provisions of subdivision 1 to terminate
a tenancy for a violation by the tenant of a lawful, material provision of a lease or contract,
whether written or oral, or to hold the tenant liable for damage to the premises caused by
the tenant or a person acting under the tenant's direction or control.

new text begin (b) If a landlord takes an action to terminate a tenancy for failure to pay for utility services
in a single-metered building, the court:
new text end

new text begin (1) if the tenant has filed a complaint involving utility service with the public utilities
commission under section 216B.023, subdivision 8, must stay the action until the commission
has made a final determination and must not require the defendant to pay any amount of
money into court, post a bond, make a payment directly to a landlord, or by any other means
post security for any purpose before final disposition of the complaint under section
216B.172, subdivisions 3 and 4. The procedures described in clauses (2) and (3) apply to
any subsequent action taken under this subdivision;
new text end

new text begin (2) if the tenant has not filed a complaint involving utility service with the public utilities
commission under section 216B.023, subdivision 8, and the tenant meets the requirements
to proceed in forma pauperis, must not require the tenant to post any amount of money into
court, post a bond, make a payment directly to a landlord, or by any other means post security
for utility charges; and
new text end

new text begin (3) if the tenant has not filed a complaint involving utility service with the public utilities
commission under section 216B.023, subdivision 8, and the tenant does not meet the
requirements to proceed in forma pauperis, must, in the court's discretion, require the tenant
to pay an amount of money or post security as the court deems appropriate for prospective
utility charges only.
new text end

new text begin (c) A court is prohibited from requiring a tenant to post rent as a condition of a tenant
asserting an affirmative claim or defense, or a counterclaim related to landlord utility billing
or practices.
new text end

Sec. 9. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2022, section 504B.215, 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 January 1, 2025.
new text end

APPENDIX

Repealed Minnesota Statutes: 24-06756

504B.215 BILLING; LOSS OF SERVICES.

Subdivision 1.

Definitions.

For the purposes of this section, "single-metered residential building" means a multiunit rental building with one or more separate residential living units where the utility service measured through a single meter provides service to an individual unit and to all or parts of common areas or other units.

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 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.

Subd. 2a.

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

(a) A landlord of a single-metered residential building who bills for utility charges separate from the rent:

(1) must provide prospective tenants notice of the total utility cost for the building for each month of the most recent calendar year;

(2) must predetermine and put in writing for all leases an equitable method of apportionment and the frequency of billing by the landlord;

(3) must include in the lease a provision that, upon a tenant's request, the 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; and

(4) may, if the landlord and tenant agree, 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.

(b) 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 must 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.

(c) A failure by the landlord to comply with this subdivision is a violation of sections 504B.161, subdivision 1, clause (1), and 504B.221.

Subd. 2b.

De minimis exception.

Any tariff approved by the Public Utilities Commission regarding a violation of subdivision 2 shall include a de minimis exception. The de minimis exception shall provide that electrical service in a common area that does not exceed an aggregate 1,752 kilowatt hours per year, which service is measured through a meter serving an individual residential unit, shall not cause a building to be a "single-metered residential building" as used in this section. The amount of common area usage may be determined by actual measurement or, when such measurement is not possible, it may be determined not likely to exceed 1,752 kilowatt hours per year by a licensed tradesperson or a housing inspector. The landlord shall bear the burden and cost associated with proving an exception.

If a tariff is not adopted, this subdivision shall have no effect.

Subd. 3.

Procedure.

(a) A municipality, utility company, or other company supplying home heating oil, propane, natural gas, electricity, or water to a building who issues a final notice 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 or because a landlord is required by law or contract to pay for the service and fails to do so must provide notice to the residents of the impending disconnection by posting the building. The posting must be placed in at least one conspicuous location in or on 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.

A tenant or group of tenants may pay to have the service continued or reconnected as provided under this section. 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.

Subd. 4.

Limitations; waiver prohibited; rights as additional.

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.