By Cook                                               H.B. No. 2931
         76R5388 CBH-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to submetered and nonsubmetered water utility service
 1-3     provided to residents of manufactured home rental communities.
 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 MANUFACTURED HOME RENTAL COMMUNITIES
 1-9            [MOBILE HOME PARKS] AND OTHER MULTIPLE USE FACILITIES
1-10           Sec. 13.501.  DEFINITIONS.   In this subchapter:
1-11                 (1)  "Apartment house" means one or more buildings
1-12     containing five or more dwelling units which are occupied primarily
1-13     for nontransient use, including a residential condominium whether
1-14     rented or owner occupied, and having rental paid, if a dwelling
1-15     unit is rented, at intervals of one month or longer.
1-16                 (2)  "Dwelling unit" means:
1-17                       (A)  one or more rooms in an apartment house or
1-18     condominium, suitable for occupancy as a residence, and containing
1-19     kitchen and bathroom facilities; or
1-20                       (B)  a manufactured home [mobile home] in a
1-21     manufactured home rental community [mobile home park].
1-22                 (3)  "Customer" means the individual, firm, or
1-23     corporation in whose name a master meter has been connected by the
1-24     utility service provider.
 2-1                 (4)  "Nonsubmetered master metered utility service"
 2-2     means water utility service that is master metered for the
 2-3     apartment house but not submetered, and wastewater utility service
 2-4     based on master metered water utility service.
 2-5                 (5)  "Owner" means the legal titleholder of an
 2-6     apartment house, manufactured home rental community [mobile home
 2-7     park], or multiple use facility and any individual, firm, or
 2-8     corporation that purports to be the landlord of tenants in the
 2-9     apartment house, manufactured home rental community [mobile home
2-10     park], or multiple use facility.
2-11                 (6)  "Tenant" means a person who is entitled to occupy
2-12     a dwelling unit or multiple use facility unit to the exclusion of
2-13     others and who is obligated to pay for the occupancy under a
2-14     written or oral rental agreement.
2-15                 (7)  "Multiple use facility" means commercial or
2-16     industrial parks, office complexes, marinas, and others
2-17     specifically identified in commission rules with five or more
2-18     units.
2-19                 (8)  "Manufactured home rental community" ["Mobile home
2-20     park"] means a property on which parking spaces are rented to
2-21     manufactured homes [mobile dwelling units] primarily for
2-22     nontransient use and for which rental is paid at intervals of one
2-23     month or longer.
2-24           Sec. 13.502.  SUBMETERING.  An apartment house owner,
2-25     manufactured home rental community [mobile home park] owner,
2-26     multiple use facility owner, or condominium manager may provide for
2-27     submetering of each dwelling unit or rental unit for the
 3-1     measurement of the quantity of water, if any, consumed by the
 3-2     occupants of that unit.
 3-3           Sec. 13.503.  SUBMETERING RULES.  (a)  The commission shall
 3-4     encourage submetering of individual rental or dwelling units by
 3-5     master meter operators to enhance the conservation of water
 3-6     resources.
 3-7           (b)  Notwithstanding any other law, the commission shall
 3-8     adopt rules and standards under which an owner, operator, or
 3-9     manager of an apartment house, manufactured home rental community
3-10     [mobile home park], or multiple use facility that is not
3-11     individually metered for water for each rental or dwelling unit may
3-12     install submetering equipment for each individual rental or
3-13     dwelling unit for the purpose of fairly allocating the cost of each
3-14     individual rental or dwelling unit's water consumption, including
3-15     wastewater charges based on water consumption.  In addition to
3-16     other appropriate safeguards for the tenant, the rules shall
3-17     require that an apartment house owner, manufactured home rental
3-18     community [mobile home park] owner, multiple use facility owner, or
3-19     condominium manager may not impose on the tenant any extra charges,
3-20     over and above the cost per gallon and any applicable taxes and
3-21     surcharges that are [is] charged by the retail public utility to
3-22     the owner or manager, and a service charge imposed by the owner or
3-23     manager of not more than nine percent of the costs related to
3-24     submetering allocated to each submetered rental or dwelling unit.
3-25     The rules shall also require [and] that the rental unit or
3-26     apartment house owner or manager shall maintain adequate records
3-27     regarding submetering and make the records available for inspection
 4-1     by the tenant during reasonable business hours.  All submetering
 4-2     equipment is subject to the rules and standards established by the
 4-3     commission for accuracy, testing, and record keeping of meters
 4-4     installed by utilities and to the meter-testing requirements of
 4-5     Section 13.140 of this code.
 4-6           Sec. 13.5031.  NONSUBMETERING RULES.  Notwithstanding any
 4-7     other law, the commission shall adopt rules and standards governing
 4-8     billing systems or methods used by manufactured home rental
 4-9     community owners, apartment house owners, condominium managers, or
4-10     owners of other multiple use facilities for prorating or allocating
4-11     among tenants nonsubmetered master metered utility service costs.
4-12     In addition to other appropriate safeguards for the tenant, those
4-13     rules shall require that:
4-14                 (1)  the rental agreement contain a clear written
4-15     description of the method of calculation of the allocation of
4-16     nonsubmetered master metered utilities for the manufactured home
4-17     rental community, apartment house, or multiple use facility;
4-18                 (2)  the rental agreement contain a statement of the
4-19     average manufactured home, apartment, or multiple use facility unit
4-20     monthly bill for all units for any allocation of those utilities
4-21     for the previous calendar year;
4-22                 (3)  an owner or condominium manager may not impose
4-23     additional charges on a tenant in excess of the actual charges
4-24     imposed on the owner or condominium manager for utility consumption
4-25     by the manufactured home rental community, apartment house, or
4-26     multiple use facility;
4-27                 (4)  the owner or condominium manager shall maintain
 5-1     adequate records regarding the utility consumption of the
 5-2     manufactured home rental community,  apartment house, or multiple
 5-3     use facility, the charges assessed by the retail public utility,
 5-4     and the allocation of the utility costs to the tenants; and
 5-5                 (5)  the owner or condominium manager shall maintain
 5-6     all necessary records concerning utility allocations, including the
 5-7     retail public utility's bills, and shall make the records available
 5-8     for inspection by the tenants during normal business hours.
 5-9           Sec. 13.504.  IMPROPER RENTAL RATE INCREASE.     If, during
5-10     the 90-day period preceding the installation of individual meters
5-11     or submeters, an owner, operator, or manager of an apartment house,
5-12     manufactured home rental community, [mobile home park] or other
5-13     multiple use facility has increased rental rates and the increase
5-14     is attributable to increased costs of utilities, the owner,
5-15     operator, or manager shall immediately reduce the rental rate by
5-16     the amount of the increase and refund all of the increase that has
5-17     previously been collected within the 90-day period.
5-18           Sec. 13.505.  ENFORCEMENT.  In addition to the enforcement
5-19     provisions contained in Subchapter K of this chapter, if an
5-20     apartment house owner, condominium manager, manufactured home
5-21     rental community [mobile home park] owner, or other multiple use
5-22     facility owner violates a rule of the commission regarding
5-23     submetering of utility service consumed exclusively within the
5-24     tenant's dwelling unit or multiple use facility unit or
5-25     nonsubmetered master metered utility costs, the tenant may recover
5-26     three times the amount of any overcharge, a civil penalty equal to
5-27     one month's rent, reasonable attorney's fees, and court costs from
 6-1     the owner or condominium manager.  However, an owner of an
 6-2     apartment house, manufactured home rental community [mobile home
 6-3     park], or other multiple use facility or condominium manager is not
 6-4     liable for a civil penalty if the owner or condominium manager
 6-5     proves the violation was a good faith, unintentional mistake.
 6-6           SECTION 2.  The Texas Natural Resource Conservation
 6-7     Commission shall adopt rules to implement the changes made to
 6-8     Subchapter M, Chapter 13, Water Code, by this Act as soon after the
 6-9     effective date of this Act as possible.
6-10           SECTION 3.  The importance of this legislation and the
6-11     crowded condition of the calendars in both houses create an
6-12     emergency and an imperative public necessity that the
6-13     constitutional rule requiring bills to be read on three several
6-14     days in each house be suspended, and this rule is hereby suspended,
6-15     and that this Act take effect and be in force from and after its
6-16     passage, and it is so enacted.
6-17                          COMMITTEE AMENDMENT NO. 1
6-18           Amend H.B. 2931 in two respects as follows:
6-19           1.  Amend lines 19 through 23 on page 2 to read as follows:
6-20                 (8)  "Manufactured home rental community" ["Mobile home
6-21     park"] means a property on which [parking] spaces are rented [to]
6-22     for the occupancy of manufactured homes [mobile dwelling units
6-23     primarily] for nontransient residential use and for which rental is
6-24     paid at intervals of one month or longer.
6-25           2.  Add a new subsection to Sec. 13.503 to be inserted after
6-26     line 5 on page 4 to read as follows:
6-27           (c)  The initial cost of submeters and their installation
 7-1     must be borne by the owner and may not be allocated to the tenant.
 7-2                                                         Lewis of Orange