HF 680

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to landlord and tenant; clarifying provisions
relating to utility metering and billing; amending
Minnesota Statutes 2004, section 504B.215,
subdivisions 1, 2, 2a.

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

Section 1.

Minnesota Statutes 2004, section 504B.215,
subdivision 1, is amended to read:

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. new text begin However, utility service measured
through a single meter that provides service to an individual
unit and to all or parts of common areas does not cause a
building to be a "single-metered residential building" if the
service to the common areas is disclosed in writing to the
tenant of the individual unit.
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 2004, section 504B.215,
subdivision 2, is amended to read:

Subd. 2.

Single-meter utility service payments.

In a
residential leasehold contract entered into or renewed on or
after August 1, 1995, 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. new text begin However, a refund to a tenant or an
additional charge to a landlord due to utility service in a
common area that was measured through a single meter that
provides service to an individual unit, and which common area
usage was not disclosed in writing to the tenant of that unit,
is limited to the individual tenant's prorated charge for the
utility service in the common area notwithstanding any other
law, regulation, or tariff or any utility billing policy or
regulation to the contrary. new text end 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.

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 2004, section 504B.215,
subdivision 2a, is amended to read:

Subd. 2a.

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

If the landlord of a
single-metered residential building bills for utility charges
separate from the rent, the following conditions apply:

(1) prospective tenants must be provided notice of the
total utility cost for the deleted text begin building deleted text end new text begin rental community new text end for each
month of the most recent calendar year; deleted text begin and
deleted text end

(2) an equitable method of apportionment new text begin , the billing
service and account activation fees, if any, new text end and the frequency
of billing by the landlord must be predetermined and put in
writing for all leases new text begin ; and
new text end

new text begin (3) a landlord may not collect in the aggregate more than
the amount billed by the utility for the total utility service
provided to the rental community. In addition to the charge for
utility service, a landlord may charge and collect from tenants
a billing service fee, an account activation fee, and reasonable
charges for late payment or nonpayment of the utility charges
and for dishonored checks. A billing service fee charged to a
tenant is limited to the fee charged to the landlord by a
third-party provider of billing and collection services or, if a
third-party provider is not used, to the amount that would be
charged by the utility serving the rental community for billing
and collecting from individual residential customers. The
amount of a billing service fee may be changed by the landlord
upon two months' written notice to a tenant 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.

The landlord of a single-metered residential building who
bills separately for utilities 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.

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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end