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.