1.1                          A bill for an act 
  1.2             relating to manufactured home parks; clarifying 
  1.3             certain requirements relating to collection of utility 
  1.4             charges as rent; amending Minnesota Statutes 2002, 
  1.5             sections 327C.02, subdivision 2; 327C.04, by adding a 
  1.6             subdivision. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2002, section 327C.02, 
  1.9   subdivision 2, is amended to read: 
  1.10     Subd. 2.  [MODIFICATION OF RULES.] The park owner must give 
  1.11  the resident at least 60 days' notice in writing of any rule 
  1.12  change.  A rule adopted or amended after the resident initially 
  1.13  enters into a rental agreement may be enforced against that 
  1.14  resident only if the new or amended rule is reasonable and is 
  1.15  not a substantial modification of the original agreement.  Any 
  1.16  security deposit increase is a substantial modification of the 
  1.17  rental agreement.  A reasonable rent increase made in compliance 
  1.18  with section 327C.06, or the implementation and collection of 
  1.19  utility charges under section 327C.04 as a rent increase or 
  1.20  reduction under section 327C.06, is not a substantial 
  1.21  modification of the rental agreement and is not considered to be 
  1.22  a rule for purposes of section 327C.01, subdivision 8.  A rule 
  1.23  change necessitated by government action is not a substantial 
  1.24  modification of the rental agreement.  A rule change requiring 
  1.25  all residents to maintain their homes, sheds and other 
  1.26  appurtenances in good repair and safe condition shall not be 
  2.1   deemed a substantial modification of a rental agreement.  If a 
  2.2   part of a resident's home, shed or other appurtenance becomes so 
  2.3   dilapidated that repair is impractical and total replacement is 
  2.4   necessary, the park owner may require the resident to make the 
  2.5   replacement in conformity with a generally applicable rule 
  2.6   adopted after the resident initially entered into a rental 
  2.7   agreement with the park owner.  
  2.8      In any action in which a rule change is alleged to be a 
  2.9   substantial modification of the rental agreement, a court may 
  2.10  consider the following factors in limitation of the criteria set 
  2.11  forth in section 327C.01, subdivision 11:  
  2.12     (a) any significant changes in circumstances which have 
  2.13  occurred since the original rule was adopted and which 
  2.14  necessitate the rule change; and 
  2.15     (b) any compensating benefits which the rule change will 
  2.16  produce for the residents. 
  2.17     Sec. 2.  Minnesota Statutes 2002, section 327C.04, is 
  2.18  amended by adding a subdivision to read: 
  2.19     Subd. 5.  [WATER AND SEWER CHARGES.] If a park owner 
  2.20  installs measuring devices which accurately meter each 
  2.21  household's use of water, the park owner may bill the residents 
  2.22  based on each household's metered use of water and sewer usage 
  2.23  at a rate calculated to prevent the park owner from losing money 
  2.24  on the provision of water and sewer services to the residents.  
  2.25  If the water and sewer services are provided by a third party, 
  2.26  the park owner shall consider only the actual amount billed by 
  2.27  the third party and shall not consider administrative, capital, 
  2.28  or other expenses.  If the water or sewer service is provided by 
  2.29  means of a private well or private sewer or septic system, the 
  2.30  park owner may bill the residents at the rates permitted for 
  2.31  utility charges under subdivision 3.  Either before or with the 
  2.32  initial bill for metered usage, the park owner must either: 
  2.33     (1) reduce the resident's monthly rent in an amount equal 
  2.34  to the average monthly amount billed over the previous 12 months 
  2.35  by the current provider of the services; or 
  2.36     (2) waive the resident's next regularly scheduled rent 
  3.1   increase.