By:  Corte                                            H.B. No. 1349
       73R4599 JJT-F
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to billing for master metered and submetered water utility
    1-3  service for certain dwelling units.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Subchapter M, Chapter 13, Water Code, is amended
    1-6  to read as follows:
    1-7     SUBCHAPTER M.  SUBMETERING AND NONSUBMETERING FOR APARTMENTS
    1-8        AND MOBILE HOME PARKS AND OTHER MULTIPLE USE FACILITIES
    1-9        Sec. 13.501.  DEFINITIONS.  In this subchapter:
   1-10              (1)  "Apartment complex <house>" means one or more
   1-11  buildings containing five or more dwelling units at a single
   1-12  location and owned by the same owner which are occupied primarily
   1-13  for nontransient use and have rent<, including a residential
   1-14  condominium whether rented or owner occupied, and having rental>
   1-15  paid, if a dwelling unit is rented, at intervals of one month or
   1-16  longer.  The term includes a residential condominium, whether
   1-17  rented or owner occupied, and does not include a rooming house or
   1-18  dormitory.
   1-19              (2)  "Dwelling unit" means:
   1-20                    (A)  one or more rooms in an apartment complex
   1-21  intended <in an apartment house or condominium, suitable> for
   1-22  occupancy as a permanent residence under a single lease<, and
   1-23  containing kitchen and bathroom facilities>; or
   1-24                    (B)  a mobile home or a mobile home site in a
    2-1  mobile home park.
    2-2              (3)  "Customer" means the individual, firm, or
    2-3  corporation in whose name a master meter has been connected by the
    2-4  utility service provider.
    2-5              (4)  "Nonsubmetered water <master metered utility>
    2-6  service" means water <utility> service that is master metered for
    2-7  the apartment complex <house> but not submetered for individual
    2-8  dwelling units<, and wastewater utility service based on master
    2-9  metered water utility service>.
   2-10              (5)  "Owner" means the legal titleholder of an
   2-11  apartment complex <house>, mobile home park, or multiple use
   2-12  facility and any individual, firm, or corporation that purports to
   2-13  be the landlord of tenants in the apartment complex <house>, mobile
   2-14  home park, or multiple use facility.
   2-15              (6)  "Tenant" means a person who is entitled to occupy
   2-16  a dwelling unit or multiple use facility unit to the exclusion of
   2-17  others and who is obligated to pay for the occupancy under a
   2-18  written or oral rental agreement.
   2-19              (7)  "Multiple use facility" means commercial or
   2-20  industrial parks, office complexes, marinas, and others
   2-21  specifically identified in commission rules with five or more
   2-22  units.
   2-23              (8)  "Mobile home park" means a property on which
   2-24  parking spaces are rented to mobile dwelling units primarily for
   2-25  nontransient use and for which rental is paid at intervals of one
   2-26  month or longer.
   2-27              (9)  "Master metered" means measured by one or more
    3-1  meters that serve a common area or more than one dwelling unit.
    3-2              (10)  "Submetered" means measured by a meter for an
    3-3  individual dwelling unit in addition to a master meter for a common
    3-4  area or an apartment complex, condominium complex, or mobile home
    3-5  park.  The term does not include the measurement of a service to an
    3-6  individual dwelling unit by a meter that serves the unit and is
    3-7  owned by a company providing the service.
    3-8              (11)  "Water service" means water or wastewater utility
    3-9  service.
   3-10              (12)  "Common area" means all areas of an apartment
   3-11  complex other than a dwelling unit.
   3-12        Sec. 13.502.  SUBMETERED WATER SERVICE <SUBMETERING>.  An
   3-13  apartment complex <house> owner, mobile home park owner, multiple
   3-14  use facility owner, or condominium manager may provide for
   3-15  submetering of each dwelling unit or rental unit for the
   3-16  measurement of the quantity of water, if any, consumed by the
   3-17  occupants of that unit.
   3-18        Sec. 13.503.  <SUBMETERING> RULES FOR SUBMETERED WATER
   3-19  SERVICE.  (a)  Notwithstanding any other law, the commission shall
   3-20  adopt rules and standards under which an owner, operator, or
   3-21  manager of an apartment complex <house>, mobile home park, or
   3-22  multiple use facility that is not individually metered for water
   3-23  for each rental or dwelling unit may install submetering equipment
   3-24  for each individual rental or dwelling unit for the purpose of
   3-25  fairly allocating the cost of each individual rental or dwelling
   3-26  unit's water consumption, including wastewater charges based on
   3-27  water consumption.
    4-1        (b)  In addition to other appropriate safeguards for the
    4-2  tenant, the rules shall require that an apartment complex <house>
    4-3  owner, mobile home park owner, multiple use facility owner, or
    4-4  condominium manager may not impose on the tenant any extra charges,
    4-5  over and above the cost per gallon that is charged by the retail
    4-6  public utility to the owner or manager, and that the rental unit or
    4-7  apartment complex <house> owner or manager shall maintain adequate
    4-8  records regarding submetering and make the records available for
    4-9  inspection by the tenant during reasonable business hours.
   4-10        (c)  All submetering equipment is subject to the rules and
   4-11  standards established by the commission for accuracy, testing, and
   4-12  record keeping of meters installed by utilities and to the
   4-13  meter-testing requirements of Section 13.140 of this code.
   4-14        Sec. 13.5031.  <NONSUBMETERING> RULES FOR NONSUBMETERED WATER
   4-15  SERVICE.  Notwithstanding any other law, the commission shall adopt
   4-16  rules and standards governing billing systems or methods used by
   4-17  apartment complex <house> owners, condominium managers, or owners
   4-18  of other multiple use facilities for prorating or allocating among
   4-19  tenants nonsubmetered water <master metered utility> service costs.
   4-20  In addition to other appropriate safeguards for the tenant, those
   4-21  rules shall require that:
   4-22              (1)  the rental agreement contain a clear written
   4-23  description of the method of calculation of the allocation of
   4-24  nonsubmetered water service <master metered utilities> for the
   4-25  apartment complex <house> or multiple use facility;
   4-26              (2)  the rental agreement contain a statement of the
   4-27  average apartment or multiple use facility unit monthly bill for
    5-1  all units for any allocation of water service costs <those
    5-2  utilities> for the previous calendar year;
    5-3              (3)  an owner or condominium manager may not impose
    5-4  additional charges on a tenant in excess of the actual charges
    5-5  imposed on the owner or condominium manager for utility consumption
    5-6  by the apartment complex <house> or multiple use facility;
    5-7              (4)  an owner or condominium manager may not impose
    5-8  charges on a tenant for water service to common areas;
    5-9              (5) <(4)>  the owner or condominium manager shall
   5-10  maintain adequate records regarding the water service <utility>
   5-11  consumption of the apartment complex <house> or multiple use
   5-12  facility, the charges assessed by the retail public utility, and
   5-13  the allocation of the water service <utility> costs to the tenants;
   5-14  and
   5-15              (6) <(5)>  the owner or condominium manager shall
   5-16  maintain all necessary records concerning water service cost
   5-17  <utility> allocations, including the retail public utility's bills,
   5-18  and shall make the records available for inspection by the tenants
   5-19  during normal business hours.
   5-20        Sec. 13.5032.  BILLING FOR SUBMETERED WATER SERVICE IN
   5-21  CERTAIN APARTMENT COMPLEXES.  (a)  An owner of an apartment complex
   5-22  that has submetered water service for dwelling units shall charge a
   5-23  tenant for water service according to the actual consumption of the
   5-24  tenant, as measured by the submeter serving the tenant's dwelling
   5-25  unit.
   5-26        (b)  An owner of an apartment complex that has submetered
   5-27  water service may not rent a dwelling unit in the complex at a
    6-1  rental rate that includes water service.
    6-2        (c)  This section does not apply to an owner, operator, or
    6-3  manager of a residential condominium.
    6-4        Sec. 13.5033.  BILLING FOR NONSUBMETERED WATER SERVICE IN
    6-5  CERTAIN APARTMENT COMPLEXES.  (a)  An owner of an apartment complex
    6-6  that has more than 30 dwelling units and that does not have
    6-7  submetered water service may not rent a dwelling unit in the
    6-8  complex at a rental rate that includes water service.
    6-9        (b)  An owner of an apartment complex that has more than 30
   6-10  dwelling units and that does not have submetered water service
   6-11  shall charge tenants of the complex for water service according to
   6-12  a billing system approved by the commission that prorates water
   6-13  service costs according to the number of bedrooms or bathrooms in a
   6-14  dwelling unit, the number of occupants, the floor space of a
   6-15  dwelling unit, or a similar method or combination of methods.
   6-16        (c)  The billing system must be designed to allow tenants to
   6-17  benefit collectively by conserving water.
   6-18        (d)  The billing system may not provide a maximum or minimum
   6-19  amount for water service and may not bill tenants for more or less
   6-20  than the water service costs measured according to the apartment
   6-21  complex's master meter.
   6-22        (e)  The billing system may not charge a tenant for water
   6-23  service to a common area.
   6-24        (f)  This section does not apply to an owner, operator, or
   6-25  manager of a residential condominium.
   6-26        Sec. 13.504.  Improper Rental Rate Increase.  If, during the
   6-27  90-day period preceding the installation of individual meters or
    7-1  submeters, an owner, operator, or manager of an apartment complex
    7-2  <house>, mobile home park or other multiple use facility has
    7-3  increased rental rates and the increase is attributable to
    7-4  increased costs of utilities, the owner, operator, or manager shall
    7-5  immediately reduce the rental rate by the amount of the increase
    7-6  and refund all of the increase that has previously been collected
    7-7  within the 90-day period.
    7-8        Sec. 13.505.  Enforcement.  In addition to the enforcement
    7-9  provisions contained in Subchapter K of this chapter, if an
   7-10  apartment complex <house> owner, condominium manager, mobile home
   7-11  park owner, or other multiple use facility owner violates a rule of
   7-12  the commission regarding submetering of utility service consumed
   7-13  exclusively within the tenant's dwelling unit or multiple use
   7-14  facility unit or nonsubmetered master metered utility costs, the
   7-15  tenant may recover three times the amount of any overcharge, a
   7-16  civil penalty equal to one month's rent, reasonable attorney's
   7-17  fees, and court costs from the owner or condominium manager.
   7-18  However, an owner of an apartment complex <house>, mobile home
   7-19  park, or other multiple use facility or condominium manager is not
   7-20  liable for a civil penalty if the owner or condominium manager
   7-21  proves the violation was a good faith, unintentional mistake.
   7-22        SECTION 2.  This Act takes effect January 1, 1995.
   7-23        SECTION 3.  The importance of this legislation and the
   7-24  crowded condition of the calendars in both houses create an
   7-25  emergency   and   an   imperative   public   necessity   that   the
   7-26  constitutional rule requiring bills to be read on three several
   7-27  days in each house be suspended, and this rule is hereby suspended.