By Patterson S.B. No. 893 74R5060 PAM-F A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to construction and water and wastewater utility service 1-3 billing requirements for certain apartment complexes and 1-4 condominiums. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Chapter 92, Property Code, is amended by adding 1-7 Subchapter H to read as follows: 1-8 SUBCHAPTER H. SUBMETERING AND MASTERMETERING FOR CERTAIN 1-9 APARTMENT COMPLEXES 1-10 Sec. 92.331. APPLICABILITY. (a) This subchapter applies 1-11 only to an apartment complex that is owned by a single owner and 1-12 that has at least one building that contains more than four 1-13 dwelling units that are: 1-14 (1) occupied primarily for nontransient use; and 1-15 (2) rented for terms of one month or longer. 1-16 (b) This section does not apply to: 1-17 (1) a rooming house, dormitory, hotel, motel, or 1-18 manufactured housing rental community; 1-19 (2) an apartment complex constructed by a nonprofit 1-20 organization for occupancy by low-income, elderly tenants only if 1-21 the nonprofit organization submits engineering and cost data and a 1-22 sworn statement that establishes that all cost savings are passed 1-23 on to the low-income, elderly tenants; or 1-24 (3) an apartment complex or dwelling unit for which 2-1 prorated billing is prohibited by federal law relating to federally 2-2 assisted or subsidized housing. 2-3 Sec. 92.332. PLUMBING REQUIREMENTS FOR NEW APARTMENT 2-4 COMPLEXES. A person may not construct a new apartment complex 2-5 unless the complex is constructed with plumbing designed to allow 2-6 the owner to install water submeters to measure the quantity of 2-7 water consumed by the occupants of each dwelling unit. 2-8 Sec. 92.333. WATER ALLOCATION FOR CERTAIN APARTMENT 2-9 COMPLEXES. An owner of an apartment complex containing 50 units or 2-10 more shall charge a tenant who does not directly pay for water or 2-11 wastewater service to the utility for water and wastewater services 2-12 by measuring the tenant's consumption of services by: 2-13 (1) a water meter that: 2-14 (A) serves an individual dwelling unit or other 2-15 portion of an apartment complex; and 2-16 (B) is owned by the owner of the apartment 2-17 complex; or 2-18 (2) one or more mastermeters for measuring water 2-19 consumption for an entire apartment complex that is not submetered 2-20 under Paragraph (A) and apportioning the consumption. 2-21 Sec. 92.334. ENFORCEMENT. (a) If an owner of an apartment 2-22 complex violates this subchapter: 2-23 (1) a local government may enforce this subchapter; 2-24 and 2-25 (2) a tenant in the apartment complex may file suit 2-26 and recover exemplary damages equal to one monthly rental payment 2-27 and three times the amount of any overcharge to the tenant under 3-1 this subchapter. It is an affirmative defense to liability under 3-2 this subchapter that the owner's violation was the result of a good 3-3 faith, unintentional mistake. 3-4 (b) A party who prevails in a suit brought under this 3-5 section may recover reasonable and necessary attorney's fees from 3-6 the nonprevailing party. 3-7 (c) Chapter 41, Civil Practice and Remedies Code, does not 3-8 apply to an award of exemplary damages under this section. 3-9 SECTION 2. Title 7, Property Code, is amended by adding 3-10 Chapter 83 to read as follows: 3-11 CHAPTER 83. PROVISIONS APPLICABLE TO RESIDENTIAL CONDOMINIUMS 3-12 Sec. 83.001. PLUMBING REQUIREMENTS FOR NEW CONDOMINIUM 3-13 PROJECTS. A person may not construct a new residential condominium 3-14 project unless the project is constructed with plumbing designed 3-15 to allow the condominium manager to install water submeters to 3-16 measure the quantity of water consumed by the occupants of each 3-17 condominium unit. 3-18 Sec. 83.002. ENFORCEMENT. (a) A local government may 3-19 enforce Section 83.001. 3-20 (b) A party who prevails in a suit brought under this 3-21 section may recover reasonable and necessary attorney's fees from 3-22 the nonprevailing party. 3-23 SECTION 3. This Act takes effect January 1, 1997. 3-24 SECTION 4. The importance of this legislation and the 3-25 crowded condition of the calendars in both houses create an 3-26 emergency and an imperative public necessity that the 3-27 constitutional rule requiring bills to be read on three several 4-1 days in each house be suspended, and this rule is hereby suspended.