SF 3417

as introduced - 86th Legislature (2009 - 2010) Posted on 05/13/2010 08:10am

A bill for an act
relating to municipal water services; establishing powers, requirements, and
procedures for residential water service by municipal utilities; amending
Minnesota Statutes 2008, sections 116A.22; 435.193; 444.075, subdivision 3e;
456.33; 504B.215, subdivision 3; proposing coding for new law as Minnesota
Statutes, chapter 444A.

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

Section 1.

Minnesota Statutes 2008, section 116A.22, is amended to read:

116A.22 SERVICE CHARGES; A SPECIAL ASSESSMENT AGAINST
BENEFITED PROPERTY.

Charges established for connections to and the use and availability of service from
any water or sewer or combined system, if not paid when due, shall, together with any
penalties established for nonpayment, become a lien upon the property connected or for
which service was made available. On or before July 1 in each year written notice shall be
mailed to the owner of any property as to which such charges are then due and unpaid,
stating the amount of the charges and any penalty thereon and that unless paid by October
1 thereafter, or unless a hearing is desired on the question whether such amount and
penalty is properly due and payable, the same will be certified, extended, and assessed as a
tax or special assessment upon the property for collection with and as a part of other taxes
in the following year. Any property owner requesting notice shall be notified of the time
and place of such hearing, and the county board, or the commission appointed pursuant
to section 116A.24 shall then hear all matters presented by the owner and determine the
amount and penalty, if any, which is properly due and payable, and shall cause the same
to be certified, extended, and assessed as stated in the notice. deleted text begin The county board or the
commission may also provide by resolution for discontinuance of water services to any
premises in the event of nonpayment of charges for any water or sewer service provided to
the premises, upon reasonable notice to the owner and opportunity for hearing upon any
claim that the charges are not properly due and payable.
deleted text end

Sec. 2.

Minnesota Statutes 2008, section 435.193, is amended to read:

435.193 HARDSHIP ASSESSMENT DEFERRAL FOR SENIORS,
DISABLED, OR MILITARY PERSONS.

(a) Notwithstanding the provisions of any law to the contrary, any county, statutory
or home rule charter city, or town, making a special assessment deleted text begin may, at its discretion, deleted text end new text begin must new text end
defer the payment of that assessment for any homestead property:

(1) owned by a person 65 years of age or older or retired by virtue of a permanent
and total disability for whom it would be a hardship to make the payments; or

(2) owned by a person who is a member of the Minnesota National Guard or other
military reserves who is ordered into active military service, as defined in section 190.05,
subdivision 5b or 5c, as stated in the person's military orders, for whom it would be a
hardship to make the payments.

(b) deleted text begin Any deleted text end new text begin Every new text end county, statutory or home rule charter city, or town deleted text begin electing to defer
special assessments deleted text end shall adopt an ordinance or resolution establishing standards and
guidelines for determining the existence of a hardship and for determining the existence of
a disability, but nothing herein shall be construed to prohibit the determination of hardship
on the basis of exceptional and unusual circumstances not covered by the standards and
guidelines where the determination is made in a nondiscriminatory manner and does not
give the applicant an unreasonable preference or advantage over other applicants.

Sec. 3.

Minnesota Statutes 2008, section 444.075, subdivision 3e, is amended to read:

Subd. 3e.

Who may be charged; unpaid charges.

The governing body may make
the charges a charge against the owner deleted text begin , lessee, occupant or all of them deleted text end new text begin or customer, as
that term is defined under section 444A.04, subdivision 5, or the guarantor, as that term
is defined under section 444A.04, subdivision 8, new text end and may provide and covenant for
certifying unpaid charges to the county auditor with taxes against the property served
for collection as other taxes are collected.

Sec. 4.

new text begin [444A.01] SHORT TITLE.
new text end

new text begin Sections 444A.02 to 444A.20 may be cited as the Municipal Water Consumer
Protection Act of 2010.
new text end

Sec. 5.

new text begin [444A.02] POLICY.
new text end

new text begin Because water is essential to life and critical to human health and well-being,
and because that water is provided exclusively by municipal utilities, it is the policy of
this state that the availability and continuous provision of residential water service is a
government benefit to which Minnesota citizens are entitled.
new text end

Sec. 6.

new text begin [444A.03] APPLICABILITY.
new text end

new text begin The provisions of this chapter apply to the provision of residential water service by
municipal utilities.
new text end

Sec. 7.

new text begin [444A.04] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of sections 444A.02 to 444A.20, the
following terms have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Applicant. new text end

new text begin "Applicant" means a natural person applying for new water
service.
new text end

new text begin Subd. 3. new text end

new text begin Business day. new text end

new text begin "Business day" means Monday through Friday, excluding
any holidays as defined under section 645.44.
new text end

new text begin Subd. 4. new text end

new text begin Completed application. new text end

new text begin "Completed application" means the provision
by an applicant of all information required by the municipality on an oral or written
application for water service.
new text end

new text begin Subd. 5. new text end

new text begin Customer. new text end

new text begin "Customer" means the person or persons contracting with a
municipality for water service.
new text end

new text begin Subd. 6. new text end

new text begin Disconnection. new text end

new text begin "Disconnection" means water service that has been
discontinued by the municipality for nonpayment of charges or violation of law, ordinance,
rule, or policy. Disconnection does not include voluntary disconnection.
new text end

new text begin Subd. 7. new text end

new text begin Existing service. new text end

new text begin "Existing service" means water service that is presently
being provided or has been provided within the previous six months.
new text end

new text begin Subd. 8. new text end

new text begin Guarantor. new text end

new text begin "Guarantor" means a person other than the customer who
guarantees payment of charges for water service incurred by the customer.
new text end

new text begin Subd. 9. new text end

new text begin Inside meter. new text end

new text begin "Inside meter" means a device for measuring water
consumption that is placed inside a dwelling.
new text end

new text begin Subd. 10. new text end

new text begin Municipality. new text end

new text begin "Municipality" means any city, including a city operating
under a home rule charter, a county, a town, or a water district that causes to be constructed
and maintained, or operates, a public waterworks or sewer system for residential use.
Municipality includes a public utilities commission established under section 412.331.
new text end

new text begin Subd. 11. new text end

new text begin Municipally owned equipment. new text end

new text begin "Municipally owned equipment" means
any equipment owned, leased, or controlled by a municipality for the purpose of providing
water service, including but not limited to meters, curb boxes, curb cocks, valves, valve
boxes, service pipes, outlets, treatment plants, pumps, lift stations, service connections,
mains, hydrants, wells, reservoirs, and tanks.
new text end

new text begin Subd. 12. new text end

new text begin New service. new text end

new text begin "New service" means water service that is not presently
being provided or has not been provided within the previous six months.
new text end

new text begin Subd. 13. new text end

new text begin Owner. new text end

new text begin "Owner" means the person holding legal title to a property that is
provided with water service by the municipality. Owner includes an agent of the person
holding legal title to a property that is provided with water service by the municipality.
new text end

new text begin Subd. 14. new text end

new text begin Person. new text end

new text begin "Person" includes an individual, firm, corporation, association,
limited liability company, partnership, limited liability partnership, and other business
organizations.
new text end

new text begin Subd. 15. new text end

new text begin Remote meter. new text end

new text begin "Remote meter" means a device for measuring water
consumption that is placed in a location external to the dwelling and that does not require
entry into a dwelling for meter reading, maintenance, repair, or replacement.
new text end

new text begin Subd. 16. new text end

new text begin Remote transponder. new text end

new text begin "Remote transponder" means an electronic device
located outside the property being provided with water service that enables meters to be
read remotely through a telecommunications device.
new text end

new text begin Subd. 17. new text end

new text begin Service connection. new text end

new text begin "Service connection" means the equipment,
including pipes, necessary to connect a dwelling to the municipal waterworks system.
new text end

new text begin Subd. 18. new text end

new text begin Single-metered residential building. new text end

new text begin "Single-metered residential
building" has the meaning given the term under section 504B.215, subdivision 1.
new text end

new text begin Subd. 19. new text end

new text begin Voluntary disconnection. new text end

new text begin "Voluntary disconnection" means
disconnection of service at the request of the customer.
new text end

new text begin Subd. 20. new text end

new text begin Water service. new text end

new text begin "Water service" means the connection, availability, and
use of residential water and sewer service, and all municipally owned equipment and
appurtenances necessary for the installation, delivery, metering, and billing of the service.
new text end

Sec. 8.

new text begin [444A.05] PROVISION OF NEW SERVICE.
new text end

new text begin Subdivision 1. new text end

new text begin Obligation to serve. new text end

new text begin A municipality must provide new service to
any applicant unless the municipality has a permissible reason under section 444A.06,
subdivision 2, to deny service.
new text end

new text begin Subd. 2. new text end

new text begin Permissible requirements. new text end

new text begin (a) A municipality may establish reasonable
requirements as a condition of obtaining new service, which may include, without
limitation:
new text end

new text begin (1) completion of a written application that complies with subdivision 3;
new text end

new text begin (2) provision of sufficient proof of the applicant's identity;
new text end

new text begin (3) provision of information sufficient to identify the owner, or agent of the owner,
of the property to be served;
new text end

new text begin (4) conspicuous display of the official house number on the property in accordance
with the records of the municipality, provided that temporary official numbers will be
accepted on new buildings; and
new text end

new text begin (5) prior obtainment by the customer of permits or approvals required by ordinance.
new text end

new text begin (b) A customer with existing service who is moving to a new residence within the
territory served by the municipality and requesting service at the new location may not be
asked or required to complete a new application, except the municipality may require that:
new text end

new text begin (1) the customer provide information sufficient to identify the owner, or agent of the
owner, of the new residence to be served; and
new text end

new text begin (2) the official house number is conspicuously displayed on the new residence in
accordance with the records of the municipality, provided that temporary official numbers
will be accepted on new buildings.
new text end

new text begin (c) A municipality must honor any payment or other agreement with respect to water
service that is in effect at the previous residence at the time the customer moves to the
new residence within the service territory.
new text end

new text begin Subd. 3. new text end

new text begin Form of written application. new text end

new text begin A municipality may determine the form
of a written application.
new text end

new text begin Subd. 4. new text end

new text begin Who may apply. new text end

new text begin (a) An owner or agent of the owner, a tenant, or an
occupant may apply for new service, provided that an application may be made only by
an owner where more than one tenant is supplied with water service in a single-metered
residential building. A municipality may require that the applicant indicate whether the
applicant is an owner, agent of the owner, tenant, or occupant.
new text end

new text begin (b) If application for new service is made by a tenant or an occupant, the municipality
may:
new text end

new text begin (1) verify the information supplied by the applicant, including the identity of the
owner or agent of the owner, of the property to be served, before extending water service;
and
new text end

new text begin (2) take reasonable steps to verify that the owner, or agent of the owner, is aware of
and consents to the application.
new text end

new text begin Subd. 5. new text end

new text begin Guarantor and third-party notice. new text end

new text begin (a) An applicant has the right to
designate a guarantor.
new text end

new text begin (b) An applicant has the right to designate a third party, which may or may not be the
guarantor, to receive copies of bills and disconnection notices.
new text end

new text begin (c) A municipality is not required to accept payments from a guarantor or provide
copies of bills and notices to a third party unless the guarantor or third party provides,
either directly or through the applicant, written consent to act in the designated capacity
or capacities.
new text end

new text begin (d) A municipality must inform an applicant at the time of application of the rights
available under this subdivision.
new text end

new text begin Subd. 6. new text end

new text begin Information to applicants. new text end

new text begin At the time application is made, a municipality
must provide applicants with information, in plain language, about customer rights and
responsibilities, including, at a minimum, information about deferred payments, cold
weather rule protections, deposit rules, when disconnection is permissible, the right to
designate a third party guarantor, and dispute resolution procedures.
new text end

new text begin Subd. 7. new text end

new text begin Service connections. new text end

new text begin (a) A municipality may require the applicant to
obtain a permit prior to installing a service connection.
new text end

new text begin (b) A municipality may:
new text end

new text begin (1) establish technical specifications for the installation of service connections; and
new text end

new text begin (2) require that installation be performed by a duly authorized person or a person with
a specific type of credential including, but not limited to, a plumber or master plumber.
new text end

new text begin Subd. 8. new text end

new text begin Initiation of service. new text end

new text begin A municipality must initiate service within a
reasonable time after receiving a completed application, unless prevented by weather
or other extenuating conditions.
new text end

new text begin Subd. 9. new text end

new text begin Implied contract; implied consent. new text end

new text begin An applicant whose application for
water service is approved shall be deemed, by virtue of acceptance of water service, to:
new text end

new text begin (1) enter into an implied contract with the municipality for the provision of water
service; and
new text end

new text begin (2) consent to abide by all rates, laws, rules, regulations, ordinances, resolutions,
and written policies, as they exist at the time of acceptance and as they may be amended
from time to time.
new text end

Sec. 9.

new text begin [444A.06] DENIAL OF NEW SERVICE.
new text end

new text begin Subdivision 1. new text end

new text begin Notification of applicant. new text end

new text begin A municipality denying new service must,
within seven days after receiving a completed application:
new text end

new text begin (1) notify the applicant of the denial;
new text end

new text begin (2) specify the reasons for the denial; and
new text end

new text begin (3) specify what steps the applicant may take, if any, to qualify for service.
new text end

new text begin Subd. 2. new text end

new text begin Permissible reasons to deny service. new text end

new text begin A municipality may deny new
service only if the applicant:
new text end

new text begin (1) fails to:
new text end

new text begin (i) submit a completed application;
new text end

new text begin (ii) provide sufficient proof of the applicant's identity;
new text end

new text begin (iii) provide information sufficient to identify the owner, or the owner's agent, of
the property to be served;
new text end

new text begin (iv) furnish a safe and suitable location for a meter;
new text end

new text begin (v) pay a lawfully required deposit;
new text end

new text begin (vi) comply with any written municipal policy or requirement not in conflict with
this chapter; or
new text end

new text begin (vii) conspicuously display the official house number on the property in accordance
with the records of the municipality, provided that temporary official numbers will be
accepted on new buildings.
new text end

new text begin (2) willfully provides false information on an application;
new text end

new text begin (3) owes money to the municipality for charges on a previous water account in
the applicant's name;
new text end

new text begin (4) owes money to any other provider of water service for charges on a previous
water account in the applicant's name; or
new text end

new text begin (5) violates any law, ordinance, or rule.
new text end

new text begin Subd. 3. new text end

new text begin Impermissible reasons to deny service. new text end

new text begin A municipality may not deny
new service:
new text end

new text begin (1) notwithstanding any other provision of law, for unpaid water bills incurred by
a previous customer or owner on an account that was not in the applicant's name or for
which the applicant was not a guarantor, provided that the previous customer no longer
resides in the property to be served;
new text end

new text begin (2) based on credit history unrelated to the payment of water bills; or
new text end

new text begin (3) solely on the basis of whether an applicant designates a guarantor or third party to
receive bills and disconnection notices in accordance with section 444A.05, subdivision 5.
new text end

Sec. 10.

new text begin [444A.07] DEPOSIT FOR NEW OR EXISTING SERVICE.
new text end

new text begin Subdivision 1. new text end

new text begin For new service. new text end

new text begin (a) A municipality may not require a deposit as a
condition of new service unless the applicant owes money to any municipality for water,
electric, or natural gas charges on an account in the applicant's name, provided that no
deposit may be required:
new text end

new text begin (1) if the outstanding charges were accrued more than six years prior to the date
of the application;
new text end

new text begin (2) if the applicant and the municipality have agreed on a repayment plan for the
outstanding charges; or
new text end

new text begin (3) unless and until any dispute as to the liability of the applicant for the outstanding
charges has been resolved.
new text end

new text begin (b) A municipality may require a deposit for new service if the applicant has been
found in an administrative or judicial forum, or has admitted in writing, to have committed
any acts listed under section 325E.026.
new text end

new text begin Subd. 2. new text end

new text begin For existing service. new text end

new text begin A municipality may require a deposit as a condition
of continuing existing service only if a customer:
new text end

new text begin (1) is two consecutive billing periods in arrears;
new text end

new text begin (2) has been disconnected within the previous 12 months for nonpayment of charges
for water service or for a willful violation of promulgated rules, published policies, or
published conditions of service;
new text end

new text begin (3) has failed to cure a nonwillful violation of law, rule, regulation, ordinance, or
written policy, after notice, provided a cure is possible;
new text end

new text begin (4) has been found to have falsified information on an application;
new text end

new text begin (5) has been found in an administrative or judicial forum, or has admitted in writing,
to have committed any acts listed under section 325E.026; or
new text end

new text begin (6) has been found to have damaged any municipal equipment used in the provision
of water service.
new text end

new text begin Subd. 3. new text end

new text begin Notice. new text end

new text begin A municipality must notify applicants or customers in writing:
new text end

new text begin (1) of the reason a deposit is being requested;
new text end

new text begin (2) what actions, if any, the customer may take to avoid the necessity to pay the
deposit; and
new text end

new text begin (3) the procedures to follow to dispute the request for the deposit.
new text end

new text begin Subd. 4. new text end

new text begin Amount of deposit. new text end

new text begin A municipality may establish the amount of a deposit.
new text end

new text begin Subd. 5. new text end

new text begin Payment of deposit for low-income or hardship customers. new text end

new text begin A
municipality:
new text end

new text begin (1) must allow an applicant or customer who receives public assistance or whose
household income is at or below 50 percent of state median income to pay the deposit in
installments based on the financial circumstances of the customer's household;
new text end

new text begin (2) may waive the requirement of a deposit for any customer with a demonstrated
hardship, which may include income insufficient to pay; and
new text end

new text begin (3) must waive the requirement for a customer who demonstrates that enforcing the
requirement will prevent the customer from obtaining water service.
new text end

new text begin Subd. 6. new text end

new text begin Return of deposit. new text end

new text begin (a) Within the time period provided under section
325E.02, a municipality must return a deposit to a customer:
new text end

new text begin (1) who makes timely payments for one year following the full payment of the
deposit; or
new text end

new text begin (2) following a voluntary or involuntary disconnection of service, provided that the
municipality may perform an inspection of its equipment prior to returning the deposit.
new text end

new text begin (b) A municipality may determine the instrument used to refund the deposit to
a customer terminating service, provided the municipality may retain any portion of the
deposit required to cover:
new text end

new text begin (1) unpaid balances; or
new text end

new text begin (2) the cost of repair or replacement of equipment damaged by the customer.
new text end

new text begin (c) A municipality must provide the option to an existing customer to have the
deposit returned in full directly or through the issuance of a credit against future bills.
new text end

new text begin Subd. 7. new text end

new text begin Interest. new text end

new text begin A municipality must pay interest on a deposit on the conditions
and at the rate specified under section 325E.02.
new text end

Sec. 11.

new text begin [444A.08] METERS AND METERING.
new text end

new text begin Subdivision 1. new text end

new text begin Meter required. new text end

new text begin All water to a residential property must be supplied
through an accurate metering device. A water meter is accurate if it registers water
consumption within a tolerance of plus or minus two percent.
new text end

new text begin Subd. 2. new text end

new text begin Installation. new text end

new text begin A municipality must, at its own cost, furnish and install,
in accordance with all applicable codes:
new text end

new text begin (1) all inside meters;
new text end

new text begin (2) one or more remote meters, to the extent deemed necessary by the municipality;
and
new text end

new text begin (3) any transponders.
new text end

new text begin Subd. 3. new text end

new text begin Ownership, maintenance, repair, and replacement. new text end

new text begin (a) All transponders
and meters, other than remote meters not deemed necessary by the municipality, must be
owned by and remain the property of the municipality.
new text end

new text begin (b) A municipality shall be responsible for the ordinary maintenance and repair
or replacement of all transponders and meters, other than remote meters not deemed
necessary by the municipality, except a customer is responsible for all costs where damage
requiring repair or replacement is caused by the customer.
new text end

new text begin (c) A municipality may remove a meter for testing, recalibration, replacement,
or to change the size or type of the meter.
new text end

new text begin Subd. 4. new text end

new text begin Deposit. new text end

new text begin A municipality:
new text end

new text begin (1) may request a reasonable deposit for a meter;
new text end

new text begin (2) must allow an applicant or customer who receives public assistance or whose
household income is at or below 50 percent of state median income to pay the deposit in
installments based on the financial circumstances of the customer's household;
new text end

new text begin (3) may waive the requirement of a deposit for any customer with a demonstrated
hardship, which may include income insufficient to pay; and
new text end

new text begin (4) must waive the requirement for a customer who demonstrates that enforcing the
requirement will prevent the customer from obtaining water service.
new text end

new text begin Subd. 5. new text end

new text begin Remote meters installed by customers. new text end

new text begin When a remote meter is not
deemed necessary by a municipality but is desired by a customer, the customer must
furnish, install, own, and pay for the installation, repair, and, if necessary, replacement
costs for the meter.
new text end

new text begin Subd. 6. new text end

new text begin Reading. new text end

new text begin (a) A municipality must make all reasonable efforts to obtain
actual readings. A municipality may allow readings provided by customers via postcard,
phone, e-mail, or other means deemed suitable.
new text end

new text begin (b) The inside meter reading takes precedence over a remote meter if there is a
discrepancy between the two meter readings.
new text end

new text begin Subd. 7. new text end

new text begin Testing. new text end

new text begin (a) A customer may request a meter test if dissatisfied with a
reread after having made a billing complaint to the municipality. The results of the meter
test must be reported to the customer. No charge may be demanded or collected for the
first test within any 12-month period.
new text end

new text begin (b) A customer must be informed of the right to be present at the meter test. If the
results show that the meter was operating outside the acceptable tolerance, the municipality
must make a billing adjustment as provided under section 444A.09, subdivision 6.
new text end

new text begin (c) A reasonable fee may be charged for a second test requested within any 12-month
period, provided that the fee must be refunded to the customer if the meter test shows the
meter is inaccurate and a billing adjustment is warranted.
new text end

new text begin (d) During the test period, a municipality must bill the customer based on
consumption during the corresponding service period of the previous year or, if no
substitute measuring device is used, by any other reasonable means of estimation.
new text end

Sec. 12.

new text begin [444A.09] BILLING.
new text end

new text begin Subdivision 1. new text end

new text begin Responsible party. new text end

new text begin No person other than the customer may be held
liable for charges for water service, except that a municipality may provide and covenant
for certifying unpaid charges to the county auditor with taxes against the property served
for collection as other taxes are collected pursuant to section 444.075, subdivision 3e.
new text end

new text begin Subd. 2. new text end

new text begin Due date. new text end

new text begin A bill for water service may be required to be due no earlier than
23 days after the billing date, provided that if the due date falls on a Saturday, Sunday,
holiday, or any day that the business office where payments may be made is closed, the
due date shall be the next business day.
new text end

new text begin Subd. 3. new text end

new text begin Nonreceipt of bills. new text end

new text begin The failure of a customer to receive a bill does not
relieve the customer of the obligation to pay for the water service provided, but a utility
may not impose a late charge for nonpayment of any bill not received.
new text end

new text begin Subd. 4. new text end

new text begin Estimated bills. new text end

new text begin A municipality must make diligent efforts to obtain
actual meter readings, but may render estimated bills if access to the customer's meter is
unobtainable, the meter fails to register or accurately measure actual consumption, or the
customer fails to supply the meter readings. Estimated bills must be based on consumption
history for the corresponding period, or, if insufficient history is available to make a
reasonable estimate, on any other reasonable means of estimation.
new text end

new text begin Subd. 5. new text end

new text begin Budget payment plans. new text end

new text begin A municipality that bills monthly may offer
customers the option to pay bills under a budget payment plan that divides annual
estimated consumption into approximately equal monthly payments and may offer a
budget payment plan encompassing past and future estimated charges for water service to
an existing customer in arrears.
new text end

new text begin Subd. 6. new text end

new text begin Overcharges and undercharges. new text end

new text begin (a) When a customer has been
overcharged or undercharged for water service as a result of a billing error or inaccurate
meter, the amount of the overcharge must be refunded to the customer or the amount of
the undercharge may be billed to the customer as provided in this subdivision.
new text end

new text begin (b) In the event of an overcharge, a municipality must refund the difference between
what the customer was charged and what the customer should have been charged, plus
interest at the rate specified under section 325E.02, dating back:
new text end

new text begin (1) three years from the date of discovery of the error, if the utility ascertains the
overcharge occurred for three or more years from the date of discovery; or
new text end

new text begin (2) to an earlier date if the date the error first occurred can be fixed with reasonable
certainty.
new text end

new text begin (c) Where an undercharge was not caused by tampering, fraud, or theft by the
customer or a resident of the customer's household, a municipality:
new text end

new text begin (1) may recover the difference between what the customer was charged and what the
customer should have been charged, dating back:
new text end

new text begin (i) one year from the date of discovery of the error, if the municipality determines
the undercharge occurred for at least one year from the date of discovery; or
new text end

new text begin (ii) to an earlier date if the date the error first occurred can be fixed with reasonable
certainty;
new text end

new text begin (2) may not bill or recover for any undercharge incurred after the date of a customer
inquiry or complaint concerning the billing if the municipality failed to investigate the
inquiry or complaint in a timely manner and the inquiry or complaint resulted in the
discovery of the undercharge;
new text end

new text begin (3) must offer an installment payment agreement for the amount of the undercharge
that covers a period equal to the time over which the undercharge occurred or a different
time period that is mutually agreeable to the municipality and the customer, except that the
duration of the installment payment agreement offered by a municipality to a customer
whose household income is at or below 50 percent of state median household income
may be extended and must be based on the financial circumstances of the customer's
household; and
new text end

new text begin (4) may not charge interest or any delinquency fee.
new text end

new text begin (d) If an undercharge occurred as a result of tampering, fraud, or theft by the
customer or a resident of the customer's household, a utility:
new text end

new text begin (1) may bill and recover the difference between what the customer was charged and
what the customer should have been charged, plus interest at the rate specified under
section 325E.02, dating back six years, or an earlier date if the date the undercharge first
occurred can be determined with reasonable certainty;
new text end

new text begin (2) is not obligated to offer a payment agreement for recovery of the undercharge;
and
new text end

new text begin (3) may charge interest at a rate provided under section 325E.02.
new text end

new text begin Subd. 7. new text end

new text begin Return of overpayments and refund of overcharges. new text end

new text begin A municipality
may provide any refund resulting from an overpayment or overcharge in the form of a
credit against future billings, unless service has been discontinued, in which case the
refund must be provided directly to the former customer.
new text end

new text begin Subd. 8. new text end

new text begin Partial payments. new text end

new text begin A municipality must accept partial payments on an
account and, if there are arrears on the account, may determine how to apply them,
provided that payments:
new text end

new text begin (1) may not be applied to arrears for which a payment agreement is in effect; and
new text end

new text begin (2) must be applied in the manner most likely to avert disconnection.
new text end

new text begin Subd. 9. new text end

new text begin Early payment discounts. new text end

new text begin A municipality may offer a discount for early
payment, but may not recover the difference between the actual rate and the discounted
rate from other ratepayers.
new text end

new text begin Subd. 10. new text end

new text begin Request for voluntary customer contributions; contributions from
other sources. new text end

new text begin (a) A municipality may include, along with or as part of its regular
customer billings, a request for voluntary contributions.
new text end

new text begin (b) A municipality may accept funds from private, nonprofit, philanthropic, or other
government sources.
new text end

new text begin (c) Voluntary contributions or funds from private, nonprofit, philanthropic, or
other government sources must be allocated to low-income rate discounts under section
444A.14, subdivision 1, paragraph (c), or to affordability programs under section 444A.15.
new text end

Sec. 13.

new text begin [444A.10] INQUIRIES; DISPUTES.
new text end

new text begin Subdivision 1. new text end

new text begin Inquiries, complaints, and dispute resolution. new text end

new text begin (a) A municipality
must promptly respond to customer inquiries and promptly investigate and resolve
disputes. For the purposes of this section, disputes include complaints.
new text end

new text begin (b) A customer disputing a bill must pay the undisputed portion of the bill.
new text end

new text begin (c) A customer filing a dispute has the right to present testimony and evidence
supporting the customer's position.
new text end

new text begin (d) A municipality must notify the customer of the disposition of the dispute in
a timely manner. Notification of a disposition not in favor of the customer must be in
writing and contain the rationale for the municipality's decision.
new text end

new text begin (e) A municipality may not impose any additional charge for the investigation and
resolution of a dispute, including charges for meter testing.
new text end

new text begin Subd. 2. new text end

new text begin Appeals. new text end

new text begin (a) A municipality must establish a procedure to enable a
customer who is dissatisfied with the resolution of a dispute to appeal the initial decision
to an impartial person or panel not involved in the initial determination. A municipality is
not required to permit a customer who files an appeal to present testimony and evidence
that has previously been submitted, but the municipality must permit the customer who
files an appeal to present any new testimony and evidence.
new text end

new text begin (b) Nothing in this section prohibits a municipality from establishing additional
levels of and procedures for an appeal.
new text end

new text begin (c) A customer must obtain a final adverse determination from the municipal dispute
and appeal process before seeking judicial relief.
new text end

new text begin Subd. 3. new text end

new text begin Representation. new text end

new text begin A customer has the right to be represented by an attorney
or other third party of the customer's choosing throughout, or for any part of, the complaint
and appeal process.
new text end

Sec. 14.

new text begin [444A.11] INSTALLMENT PAYMENT AGREEMENTS FOR
ARREARS.
new text end

new text begin Subdivision 1. new text end

new text begin Installment payment agreements required. new text end

new text begin A municipality must
offer customers in arrears the option to repay unpaid balances under an installment
payment agreement that is based on the financial circumstances of the customer's
household.
new text end

new text begin Subd. 2. new text end

new text begin Modification of existing agreements. new text end

new text begin A municipality may require an
upward modification of an existing installment payment upon information or knowledge
that the financial circumstances of the customer have changed to enable a larger
installment payment. A municipality, upon the request of a customer with an existing
payment agreement, must renegotiate a downward modification of the agreement if the
customer documents an adverse change in the customer's financial circumstances.
new text end

new text begin Subd. 3. new text end

new text begin Customer default. new text end

new text begin (a) After a customer first defaults on an installment
payment agreement, a municipality must offer the customer one opportunity to cure the
default by:
new text end

new text begin (1) reinstating; or
new text end

new text begin (2) modifying the agreement, if the customer meets the conditions set forth under
subdivision 2.
new text end

new text begin (b) A municipality may proceed with disconnection that complies with section
444A.13 if the customer fails to cure the default or defaults after reinstating or modifying
the agreement.
new text end

Sec. 15.

new text begin [444A.12] COLLECTION OF UNPAID BILLS; LIENS; ASSESSMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Legal action. new text end

new text begin (a) A municipality may bring a civil action to
collect unpaid charges for water service, provided the charges are not in dispute and the
municipality has complied with section 444A.11, for existing customers.
new text end

new text begin (b) A municipality taking a legal action under this subdivision is not precluded from
pursuing collection under section 116A.22.
new text end

new text begin Subd. 2. new text end

new text begin Effect of failure to request deposit on lien. new text end

new text begin The failure of a municipality
to request a deposit has no effect on the creation of a lien under section 116A.22.
new text end

new text begin Subd. 3. new text end

new text begin Effect of lien on application for new service. new text end

new text begin The existence of a lien does
not impair the rights of an applicant for new service, unless:
new text end

new text begin (1) the new applicant was a customer at another property where an enforceable
lien was created; or
new text end

new text begin (2) the customer whose unpaid charges for water service created the lien continues
to reside in the property for which the new applicant seeks new service.
new text end

Sec. 16.

new text begin [444A.13] DISCONNECTION OF WATER SERVICE.
new text end

new text begin Subdivision 1. new text end

new text begin Disconnection for cause. new text end

new text begin Except as provided in subdivision 4, a
municipality may disconnect service after complying with notice requirements under
subdivisions 2 and 3, as applicable, only for one or more of the following reasons:
new text end

new text begin (1) nonpayment of charges for water service;
new text end

new text begin (2) willful violation of law, rule, regulation, ordinance, or written policy;
new text end

new text begin (3) if a condemnation order is issued or no valid certificate of occupancy is in
effect; and
new text end

new text begin (4) failure to:
new text end

new text begin (i) comply with the terms of an installment payment agreement under section
444A.11;
new text end

new text begin (ii) repair a leak to a service pipe;
new text end

new text begin (iii) make or pay for other repairs as required by the municipality on customer
equipment necessary for the provision of water service after the municipality has
provided written notice to make or pay for the repair as provided under section 444A.16,
subdivision 1;
new text end

new text begin (iv) display the house number of the residence after written notice has been provided
to the owner of the property; or
new text end

new text begin (v) cure a nonwillful violation of law, rule, regulation, ordinance, or written policy,
after notice, provided a cure is possible.
new text end

new text begin Subd. 2. new text end

new text begin Notice and opportunity for hearing. new text end

new text begin (a) Before disconnecting water
service to a single family dwelling for nonpayment, a municipality must serve personally
or by first class, certified, or registered mail, a written notice to the customer and to the
owner of the property, if different from the customer, of the impending disconnection
and of the opportunity for a hearing upon any claim that the charges for water service
are not properly due and payable. The notice must be in a plain language, easy-to-read
format that uses clear and coherent words with common and everyday meanings and that
contains, at a minimum:
new text end

new text begin (1) the reason for the disconnection;
new text end

new text begin (2) the date of the scheduled disconnection;
new text end

new text begin (3) the amount due;
new text end

new text begin (4) a telephone number at the municipality to contact an employee with authority to
resolve disputes and enter into payment agreements;
new text end

new text begin (5) a summary of rights and responsibilities, including the procedure for disputing a
bill and the opportunity for a predisconnection hearing; and
new text end

new text begin (6) the steps the consumer may take to avoid disconnection.
new text end

new text begin (b) During the period from April 16 through October 14, disconnection may take
place no earlier than at least ten business days after a notice is personally served or at least
13 business days after a notice is served by first class, certified, or registered mail.
new text end

new text begin (c) During the period from October 15 through April 15, disconnection may take
place no earlier than at least 20 business days after a notice is personally served or at least
23 business days after a notice is served by first class, certified, or registered mail.
new text end

new text begin (d) The notice becomes void if the municipality has not disconnected water service
within 30 days of the disconnection date specified in the notice.
new text end

new text begin Subd. 3. new text end

new text begin Disconnection for maintenance or repairs. new text end

new text begin To the extent feasible, a
municipality must give sufficient advance notice of disconnection of water service for
planned maintenance or repairs that will cause an interruption in water service.
new text end

new text begin Subd. 4. new text end

new text begin Disconnection without notice. new text end

new text begin A municipality may disconnect water
service without notice only:
new text end

new text begin (1) if the municipality, after reasonable inquiry, determines that there has been
demonstrable (i) tampering with the meter or other equipment, or (ii) unauthorized use
of water;
new text end

new text begin (2) in the case of fraud or material misrepresentation on an application;
new text end

new text begin (3) if the municipality, on credible belief and information, believes the property
is abandoned;
new text end

new text begin (4) if a condition or emergency is determined to be hazardous to the customer, other
customers, public or private property, the municipality's equipment, or the public; or
new text end

new text begin (5) if the customer has been found to have resold water services to another person
without authorization from the municipality.
new text end

new text begin Subd. 5. new text end

new text begin Impermissible reasons to disconnect water service. new text end

new text begin A municipality
may not disconnect water service:
new text end

new text begin (1) during the pendency of a dispute or appeal, if the customer has paid the
undisputed part of the bill;
new text end

new text begin (2) prior to the offer of an installment payment agreement that complies with section
444A.11 and the failure of a customer to enter into the agreement;
new text end

new text begin (3) for nonpayment of charges incurred:
new text end

new text begin (i) for goods or services that are unrelated to the provision of water service;
new text end

new text begin (ii) for residential utility service other than water service;
new text end

new text begin (iii) for nonresidential water service; or
new text end

new text begin (iv) by a previous customer or owner of the property served, provided the customer
or owner no longer resides at the property;
new text end

new text begin (4) to a guarantor of service for nonpayment of the customer's bills; or
new text end

new text begin (5) if a customer provides payment of the amount necessary to avoid disconnection
at the time of actual disconnection.
new text end

new text begin Subd. 6. new text end

new text begin Health threat. new text end

new text begin (a) Notwithstanding any other provision, a municipality
must not disconnect or refuse to reconnect water service if disconnection of or failure to
reconnect water service would cause a threat to the health of the customer or any resident
of the customer's household, provided that:
new text end

new text begin (1) the customer's household income is at or below 50 percent of state median
income or the customer demonstrates an inability to make full payment for water service
provided within the time period allowed for payment;
new text end

new text begin (2) the municipality receives written certification from a medical doctor, or initial
certification from a medical doctor by telephone and written certification within five
business days, that failure to reconnect or continue service will impair or threaten the
health of the customer or a resident of the customer's household; and
new text end

new text begin (3) the customer enters into an installment payment agreement.
new text end

new text begin (b) A certification is effective for one billing cycle. Disconnection may proceed,
with notice, unless a medical doctor renews the certification.
new text end

new text begin (c) The issuance of a certification does not relieve the customer of the obligation to
make full payment for all charges for water service incurred.
new text end

new text begin (d) A municipality must not disconnect service to a customer if a medical doctor
certifies that the disconnection of water service constitutes a threat to the life of the
customer or any resident of the customer's household, regardless of any arrears owed. A
municipality may proceed with disconnection, with notice and consistent with the other
provisions of this subdivision, after receiving certification from the medical doctor who
issued the initial certification that there is no longer a threat to life.
new text end

new text begin Subd. 7. new text end

new text begin Dishonored check. new text end

new text begin (a) Before disconnecting water service for nonpayment
due to a dishonored check, a municipality must notify the customer that the check has been
dishonored and provide an opportunity to the customer to make payment. A municipality
may disconnect water service if payment is not made within five business days after
providing notice of the dishonored check, provided that the municipality has previously
complied with notice requirements under subdivision 3.
new text end

new text begin (b) A municipality is required to comply with the provision of this subdivision
only once in any 12-month period.
new text end

new text begin Subd. 8. new text end

new text begin Restrictions on disconnection. new text end

new text begin (a) A municipality may not disconnect
water service:
new text end

new text begin (1) on a Friday, unless the municipality, in person or via personal contact by
telephone that day, has offered, and the customer has declined to enter into, an installment
payment agreement;
new text end

new text begin (2) on a weekend, holiday, or the day before a holiday; or
new text end

new text begin (3) when utility offices are closed.
new text end

new text begin (b) A municipality may disconnect water service after the close of business on a day
when disconnection is permitted, provided either a field representative or office personnel
offers a payment agreement that complies with section 444A.11, and the customer declines
to enter into the agreement.
new text end

new text begin Subd. 9. new text end

new text begin Extreme weather rule. new text end

new text begin (a) Between April 15 and the following October
15, a municipality may not disconnect water service if:
new text end

new text begin (1) the customer's household income is at or below 50 percent of state median
income; and
new text end

new text begin (2) the customer enters into an installment payment agreement based on the financial
circumstances of the household, provided that the customer's installment payment toward
current and past due bills may not exceed ten percent of the customer's household monthly
income.
new text end

new text begin (b) A municipality may verify the customer's income:
new text end

new text begin (1) through its own investigation;
new text end

new text begin (2) by accepting the signed statement from the customer that the customer meets the
income eligibility requirements; or
new text end

new text begin (3) by obtaining verification of income from the local energy assistance provider.
new text end

new text begin (c) A municipality may not disconnect water service when an excessive heat watch,
heat advisory, or excessive heat warning issued by the National Weather Service is in
effect for the county in which the customer resides.
new text end

new text begin Subd. 10. new text end

new text begin Declaration of moratorium. new text end

new text begin A municipality may declare a moratorium
on disconnections for all or a portion of the service area for any period of time if it
determines a moratorium is necessary to protect the health, safety, or welfare of the
affected customers or residents.
new text end

new text begin Subd. 11. new text end

new text begin Reconnection of water service. new text end

new text begin (a) Unless prevented by circumstances
beyond the municipality's control, water service must be reconnected within 24 hours of
the removal of the cause for the disconnection.
new text end

new text begin (b) A municipality may not require a customer disconnected for nonpayment to repay
the entire unpaid balance as a condition for reconnection, unless the customer has refused
to enter into an installment payment agreement that complies with section 444A.11.
new text end

Sec. 17.

new text begin [444A.14] RATES AND OTHER CHARGES.
new text end

new text begin Subdivision 1. new text end

new text begin Rates. new text end

new text begin (a) All rates established or adjusted must be just, equitable,
and reasonable. Ability to pay must be considered a component of just, equitable, and
reasonable rates.
new text end

new text begin (b) Notwithstanding any other provision of law, a municipality or commission may
establish lower or discounted rates for low-income and elderly customers.
new text end

new text begin Subd. 2. new text end

new text begin Other charges generally. new text end

new text begin A municipality may establish fees, penalties,
and other charges the municipality deems necessary for services and activities, except
as limited by this section.
new text end

new text begin Subd. 3. new text end

new text begin Connection and availability fees; low-income and hardship customers.
new text end

new text begin (a) A municipality must offer a reasonable installment payment plan to customers with
incomes at or below 50 percent of state median income for payment of:
new text end

new text begin (1) connection, hook-up, set-up, administrative, and installation fees; and
new text end

new text begin (2) availability and standby charges.
new text end

new text begin (b) A municipality may waive any or all of the charges set forth in this subdivision for
any customer with a demonstrated hardship, which may include income insufficient to pay.
new text end

new text begin Subd. 4. new text end

new text begin Late payment fee. new text end

new text begin (a) A late payment fee may not exceed 1-1/2 percent
per month.
new text end

new text begin (b) If a late payment fee is assessed on a disputed bill and the dispute is resolved in
the customer's favor, the late payment fee must be canceled if uncollected, and refunded if
already collected. The refund may be applied as a credit against future bills. If service has
been discontinued, the refund must be provided directly to the former customer.
new text end

new text begin (c) A municipality:
new text end

new text begin (1) may waive the requirement of a deposit for any customer with a demonstrated
hardship, which may include income insufficient to pay; and
new text end

new text begin (2) must waive the requirement for a customer who demonstrates that enforcing the
requirement will prevent the customer from retaining water service.
new text end

new text begin Subd. 5. new text end

new text begin Reconnection fee. new text end

new text begin (a) Notwithstanding any other section, a municipality
may charge a reconnection fee, provided that the fee may not exceed the cost of
reconnection.
new text end

new text begin (b) A municipality may not charge a reconnection fee to reconnect service
disconnected by the municipality if a condition or emergency is determined to be
hazardous to the customer, other customers, public or private property, the municipality's
equipment, or the public.
new text end

new text begin (c) A municipality:
new text end

new text begin (1) may waive the payment of a reconnection fee for any customer with a
demonstrated hardship, which may include income insufficient to pay; and
new text end

new text begin (2) must waive the requirement for a customer who demonstrates that enforcing the
requirement will prevent the customer from having water service reconnected.
new text end

new text begin Subd. 6. new text end

new text begin Prohibited fees and charges. new text end

new text begin A municipality may not impose a fee or
charge for:
new text end

new text begin (1) a meter;
new text end

new text begin (2) the provision of a disconnection notice or a bill; or
new text end

new text begin (3) a voluntary disconnection.
new text end

Sec. 18.

new text begin [444A.15] AFFORDABILITY PROGRAMS.
new text end

new text begin (a) A municipality may establish affordability programs for customers at or below
50 percent of state median income that are designed to accomplish one or more of the
following objectives:
new text end

new text begin (1) enable the customer to maintain water service by paying an amount that is less
than the full amount owed but that is reasonable based on the financial circumstances
of the customer's household; and
new text end

new text begin (2) increase the frequency or regularity of participating customer payments by
making payments consistent with the customer's ability to pay.
new text end

new text begin (b) A municipality may take any steps necessary to recover the costs of the program
from other ratepayers on a timely basis.
new text end

new text begin (c) A municipality operating an affordability program should coordinate the program
with other available low-income bill payment assistance and water conservation resources.
new text end

Sec. 19.

new text begin [444A.16] DUTIES OF CUSTOMERS AND OWNERS.
new text end

new text begin Subdivision 1. new text end

new text begin Ownership, maintenance, and repair of equipment. new text end

new text begin (a) Except
for transponders, inside meters, and remote meters deemed necessary, as provided
under section 444A.08, a municipality may assign ownership, maintenance, and repair
obligations with respect to municipal equipment used in connection with the provision of
water service that is physically located within the legal boundaries of the owner's property.
new text end

new text begin (b) A municipality may require an owner who fails to adequately maintain
equipment that is the owner's responsibility to maintain to take necessary corrective
action. A municipality requiring a corrective action must notify the owner in writing
of the nature of the action required and the time period within which the action must
be taken. If the owner fails to make the required repair within the time specified in the
notice, a municipality may make the repair and add the cost to the water services bill. If
the owner fails to pay for the repair, the municipality may:
new text end

new text begin (1) disconnect water service as provided in section 444A.13; and
new text end

new text begin (2) certify the unpaid charges to the county auditor with taxes against the property
served for collection as other taxes are collected.
new text end

new text begin (c) An owner is liable for the cost of a repair made by a municipality without notice
when the repair is necessitated by an emergency declared by the municipality.
new text end

new text begin Subd. 2. new text end

new text begin Duty to notify municipality. new text end

new text begin (a) To the extent the customer or owner is
aware, a customer or owner must notify the municipality of:
new text end

new text begin (1) any damage to the municipality's equipment or appurtenances;
new text end

new text begin (2) the inoperability, malfunction, or inaccuracy of a meter;
new text end

new text begin (3) a broken seal; and
new text end

new text begin (4) a leak in the service line.
new text end

new text begin (b) A customer must provide notice to the municipality no less than five days in
advance of the date of a voluntary disconnection. The customer is liable for all charges
associated with consumption up to the date specified in the notice.
new text end

new text begin (c) A municipality may, by ordinance, impose other notification duties on customers
or property owners as deemed necessary.
new text end

new text begin Subd. 3. new text end

new text begin Duties with respect to meters. new text end

new text begin (a) Every customer and owner must
furnish a safe and suitable location for, and ensure easy access to, the inside meter that
measures water consumption.
new text end

new text begin (b) Customers must take all reasonable measures to protect meters from frost and
freezing.
new text end

new text begin Subd. 4. new text end

new text begin Duty to provide access. new text end

new text begin (a) For the purposes of this section:
new text end

new text begin (1) "authorized personnel" means a person employed by, or under contract with, the
municipality who wears a distinguishing uniform or insignia designating the person as
an employee or contractor of the municipality and who displays an identification card
with the photo of the person; and
new text end

new text begin (2) "reasonable times" means between the hours of:
new text end

new text begin (i) 8:00 a.m. and 8:00 p.m., Monday through Friday; and
new text end

new text begin (ii) 9:00 a.m. and 5:00 p.m. on Saturday.
new text end

new text begin (b) At all reasonable times, a municipality may request that a customer provide
authorized personnel access to any area owned by the customer, or of which the customer
has a possessory right, where equipment necessary for the provision of water service is
placed for the purpose of:
new text end

new text begin (1) meter reading;
new text end

new text begin (2) connection, disconnection, or reconnection; or
new text end

new text begin (3) installing, removing, maintaining, repairing, servicing, or inspecting the
municipality's equipment.
new text end

new text begin (c) To the extent possible, a municipality must provide at least 24 hours prior notice
of the intent to enter the property and the purpose for which entry is required.
new text end

new text begin (d) If the customer refuses to give consent to enter the property for the purposes
allowed under this subdivision, a municipality may obtain an administrative or judicial
warrant.
new text end

new text begin (e) A municipality is not required to obtain consent or a warrant to entry in cases
of emergency.
new text end

new text begin Subd. 5. new text end

new text begin Liability for damage. new text end

new text begin (a) A customer or owner is liable for the reasonable
cost of repair or replacement, whichever is least expensive, of any municipally owned
equipment or appurtenance that is damaged by the customer or a resident in the customer's
household as a result of the customer or resident's intentional act or reckless negligence.
new text end

new text begin (b) Amounts for repair or replacement of damaged equipment or appurtenances may
be added to and collected in the same manner as the bill for water services, including
through civil action or certification of the unpaid charges to the county auditor with taxes
against the property served for collection as other taxes are collected.
new text end

Sec. 20.

new text begin [444A.17] PROHIBITED ACTS.
new text end

new text begin (a) No person shall, under any circumstances:
new text end

new text begin (1) permit water from the municipal system to be used for a purpose not authorized
by ordinance; or
new text end

new text begin (2) willfully obstruct, break, injure, mar, deface, destroy, disturb, or cause damage to
any municipally owned equipment associated with the provision of water service.
new text end

new text begin (b) No person shall, without authorization from the municipality:
new text end

new text begin (1) resell water from the municipal waterworks system;
new text end

new text begin (2) turn on or shut off water at any curb cock, curb stop, or curb stop box;
new text end

new text begin (3) take water from a fire hydrant or use water from an unmetered source; or
new text end

new text begin (4) tap any water distribution main or pipe or insert stopcocks or ferrules on the
waterworks system.
new text end

new text begin (c) No person shall break or remove a meter or other seal, except for an authorized
municipal employee or, if authorized by a municipality, a licensed plumber.
new text end

new text begin (d) A municipality may, by ordinance, establish prohibitions or restrictions not
inconsistent with this chapter, in addition to those enumerated in this section.
new text end

Sec. 21.

new text begin [444A.18] WATER EMERGENCIES.
new text end

new text begin (a) In case of an imminent or existing water emergency, a municipality may declare
a water emergency and may impose and enforce a restriction or ban on the use of water,
including but not limited to lawn sprinkling, car washing, and irrigation. A water
emergency includes, but is not limited to, drought or shortage of water supply for other
reasons, inadequate supply to provide fire protection, malfunction of the water supply
system, or the endangerment of public health, safety, and welfare.
new text end

new text begin (b) A municipality imposing a ban or restriction on water use must take all
reasonable and necessary steps to inform all citizens affected of the existence of
the emergency, the reasons for the restriction or ban, the period during which use or
consumption is restricted or banned, and the specific uses that are restricted or banned.
new text end

Sec. 22.

new text begin [444A.19] TORT LIABILITY AND IMMUNITY.
new text end

new text begin Subdivision 1. new text end

new text begin Liability. new text end

new text begin A municipality providing water services is subject to tort
liability as provided in section 466.02, except as limited in subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin Immunity. new text end

new text begin A municipality is not subject to tort liability:
new text end

new text begin (1) if the water supply is interrupted, disturbed, deficient, or insufficient due to:
new text end

new text begin (i) establishing connections;
new text end

new text begin (ii) making repairs;
new text end

new text begin (iii) providing extensions;
new text end

new text begin (iv) disconnecting water service, provided that the municipality complies with the
requirements under section 444A.13;
new text end

new text begin (v) reconnecting water service;
new text end

new text begin (vi) pressure fluctuations; or
new text end

new text begin (vii) flushing; and
new text end

new text begin (2) for the water quality, if the quality is within the guidelines set forth by the
Department of Health and the laws of this state.
new text end

Sec. 23.

new text begin [444A.20] EFFECT ON OTHER LAW.
new text end

new text begin Sections 444A.01 to 444A.19 preempt and supersede conflicting local and municipal
rules or ordinances. Nothing in this chapter is intended to preempt any provision of a
local or municipal rule or ordinance that provides greater protection for residential water
customers than a provision in this chapter.
new text end

Sec. 24.

Minnesota Statutes 2008, section 456.33, is amended to read:

456.33 WATER AUTHORITY MAY MAKE RULES FOR PAYMENTS.

The governing body of a waterworks owned by a city of the first class may adopt
and enforce rules that it considers advisable on when payments for its water are due and
payable new text begin , consistent with section 444A.09 new text end .

Sec. 25.

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 deleted text begin has
issued deleted text end new text begin that issues new text end 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 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 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 new text begin section or
sections of the new text end building new text begin to which the utility has legal access new text end 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.