1-1     By:  Duncan                                            S.B. No. 950
 1-2           (In the Senate - Filed March 5, 1999; March 8, 1999, read
 1-3     first time and referred to Committee on Natural Resources;
 1-4     April 9, 1999, reported favorably, as amended, by the following
 1-5     vote:  Yeas 4, Nays 0; April 9, 1999, sent to printer.)
 1-6     COMMITTEE AMENDMENT NO. 1                           By:  Armbrister
 1-7     Amend SECTION 1 of S.B. No. 950 by striking lines 32 through 36,
 1-8     page 2, and replacing them with the following:
 1-9                 (8)  "Manufactured home rental community" ["Mobile home
1-10     park"] means a property on which [parking] spaces are rented for
1-11     the occupancy of manufactured homes [to mobile dwelling units
1-12     primarily] for nontransient residential use and for which rental is
1-13     paid at intervals of one month or longer.
1-14     COMMITTEE AMENDMENT NO. 2                           By:  Armbrister
1-15     Amend SECTION 1 of S.B. No. 950 by striking on page 2 line 43
1-16     through page 3 line 2, Section 13.503, and replacing it with the
1-17     following:
1-18           Sec. 13.503.  SUBMETERING RULES.  (a)  The commission shall
1-19     encourage submetering of individual rental or dwelling units by
1-20     master meter operators to enhance the conservation of water
1-21     resources.
1-22           (b)  Notwithstanding any other law, the commission shall
1-23     adopt rules and standards under which an owner, operator, or
1-24     manager of an apartment house, manufactured home rental community
1-25     [mobile home park], or multiple use facility that is not
1-26     individually metered for water for each rental or dwelling unit may
1-27     install submetering equipment for each individual rental or
1-28     dwelling unit for the purpose of fairly allocating the cost of each
1-29     individual rental or dwelling unit's water consumption, including
1-30     wastewater charges based on water consumption.  In addition to
1-31     other appropriate safeguards for the tenant, the rules shall
1-32     require that an apartment house owner, manufactured home rental
1-33     community [mobile home park] owner, multiple use facility owner, or
1-34     condominium manager may not impose on the tenant any extra charges,
1-35     over and above the cost per gallon and any other applicable taxes
1-36     and surcharges that are [is] charged by the retail public utility
1-37     to the owner or manager, and that the rental unit or apartment
1-38     house owner or manager shall maintain adequate records regarding
1-39     submetering and make the records available for inspection by the
1-40     tenant during reasonable business hours.  All submetering equipment
1-41     is subject to the rules and standards established by the commission
1-42     for accuracy, testing, and record keeping of meters installed by
1-43     utilities and to the meter-testing requirements of Section 13.140
1-44     of this code.
1-45           (c)  In addition to the charges permitted under Subsection
1-46     (b), the rules shall authorize a manufactured home rental community
1-47     owner or manager to impose a service charge of not more than nine
1-48     percent of the costs related to submetering allocated to each
1-49     submetered rental or dwelling unit.
1-50                            A BILL TO BE ENTITLED
1-51                                   AN ACT
1-52     relating to submetered and nonsubmetered water utility service
1-53     provided to residents of apartment houses and manufactured home
1-54     rental communities.
1-55           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-56           SECTION 1.  Subchapter M, Chapter 13, Water Code, is amended
1-57     to read as follows:
1-58        SUBCHAPTER M.  SUBMETERING AND NONSUBMETERING FOR APARTMENTS
1-59                  AND MANUFACTURED HOME RENTAL COMMUNITIES
1-60            [MOBILE HOME PARKS] AND OTHER MULTIPLE USE FACILITIES
1-61           Sec. 13.501.  DEFINITIONS.  In this subchapter:
 2-1                 (1)  "Apartment house" means one or more buildings
 2-2     containing five or more dwelling units which are occupied primarily
 2-3     for nontransient use, including a residential condominium whether
 2-4     rented or owner occupied, and having rental paid, if a dwelling
 2-5     unit is rented, at intervals of one month or longer.
 2-6                 (2)  "Dwelling unit" means:
 2-7                       (A)  one or more rooms in an apartment house or
 2-8     condominium, suitable for occupancy as a residence, and containing
 2-9     kitchen and bathroom facilities; or
2-10                       (B)  a manufactured [mobile] home in a
2-11     manufactured home rental community [mobile home park].
2-12                 (3)  "Customer" means the individual, firm, or
2-13     corporation in whose name a master meter has been connected by the
2-14     utility service provider.
2-15                 (4)  "Nonsubmetered master metered utility service"
2-16     means water utility service that is master metered for the
2-17     apartment house but not submetered, and wastewater utility service
2-18     based on master metered water utility service.
2-19                 (5)  "Owner" means the legal titleholder of an
2-20     apartment house, manufactured home rental community [mobile home
2-21     park], or multiple use facility and any individual, firm, or
2-22     corporation that purports to be the landlord of tenants in the
2-23     apartment house, manufactured home rental community [mobile home
2-24     park], or multiple use facility.
2-25                 (6)  "Tenant" means a person who is entitled to occupy
2-26     a dwelling unit or multiple use facility unit to the exclusion of
2-27     others and who is obligated to pay for the occupancy under a
2-28     written or oral rental agreement.
2-29                 (7)  "Multiple use facility" means commercial or
2-30     industrial parks, office complexes, marinas, and others
2-31     specifically identified in commission rules with five or more
2-32     units.
2-33                 (8)  "Manufactured home rental community" ["Mobile home
2-34     park"] means a property on which parking spaces are rented to
2-35     manufactured homes [mobile dwelling units] primarily for
2-36     nontransient use and for which rental is paid at intervals of one
2-37     month or longer.
2-38           Sec. 13.502.  SUBMETERING.  An apartment house owner,
2-39     manufactured home rental community [mobile home park] owner,
2-40     multiple use facility owner, or condominium manager may provide for
2-41     submetering of each dwelling unit or rental unit for the
2-42     measurement of the quantity of water, if any, consumed by the
2-43     occupants of that unit.
2-44           Sec. 13.503.  SUBMETERING RULES.  (a)  The commission shall
2-45     encourage submetering of individual rental or dwelling units by
2-46     master meter operators to enhance the conservation of water
2-47     resources.
2-48           (b)  Notwithstanding any other law, the commission shall
2-49     adopt rules and standards under which an owner, operator, or
2-50     manager of an apartment house, manufactured home rental community
2-51     [mobile home park], or multiple use facility that is not
2-52     individually metered for water for each rental or dwelling unit may
2-53     install submetering equipment for each individual rental or
2-54     dwelling unit for the purpose of fairly allocating the cost of each
2-55     individual rental or dwelling unit's water consumption, including
2-56     wastewater charges based on water consumption.  In addition to
2-57     other appropriate safeguards for the tenant, the rules shall
2-58     require that an apartment house owner, manufactured home rental
2-59     community [mobile home park] owner, multiple use facility owner, or
2-60     condominium manager may not impose on the tenant any extra charges,
2-61     over and above the cost per gallon and any applicable taxes and
2-62     surcharges that are [is] charged by the retail public utility to
2-63     the owner or manager and a service charge imposed by the owner or
2-64     manager of not more than nine percent of the costs related to
2-65     submetering allocated to each submetered rental or dwelling unit.
2-66     The rules shall also require[, and] that the rental unit or
2-67     apartment house owner or manager shall maintain adequate records
2-68     regarding submetering and make the records available for inspection
2-69     by the tenant during reasonable business hours.  All submetering
 3-1     equipment is subject to the rules and standards established by the
 3-2     commission for accuracy, testing, and record keeping of meters
 3-3     installed by utilities and to the meter-testing requirements of
 3-4     Section 13.140 of this code.
 3-5           Sec. 13.5031.  NONSUBMETERING RULES.  Notwithstanding any
 3-6     other law, the commission shall adopt rules and standards governing
 3-7     billing systems or methods used by manufactured home rental
 3-8     community owners, apartment house owners, condominium managers, or
 3-9     owners of other multiple use facilities for prorating or allocating
3-10     among tenants nonsubmetered master metered utility service costs.
3-11     In addition to other appropriate safeguards for the tenant, those
3-12     rules shall require that:
3-13                 (1)  the rental agreement contain a clear written
3-14     description of the method of calculation of the allocation of
3-15     nonsubmetered master metered utilities for the manufactured home
3-16     rental community, apartment house, or multiple use facility;
3-17                 (2)  the rental agreement contain a statement of the
3-18     average manufactured home, apartment, or multiple use facility unit
3-19     monthly bill for all units for any allocation of those utilities
3-20     for the previous calendar year;
3-21                 (3)  an owner or condominium manager may not impose
3-22     additional charges on a tenant in excess of the actual charges
3-23     imposed on the owner or condominium manager for utility consumption
3-24     by the manufactured home rental community, apartment house, or
3-25     multiple use facility;
3-26                 (4)  the owner or condominium manager shall maintain
3-27     adequate records regarding the utility consumption of the
3-28     manufactured home rental community,  apartment house, or multiple
3-29     use facility, the charges assessed by the retail public utility,
3-30     and the allocation of the utility costs to the tenants; and
3-31                 (5)  the owner or condominium manager shall maintain
3-32     all necessary records concerning utility allocations, including the
3-33     retail public utility's bills, and shall make the records available
3-34     for inspection by the tenants during normal business hours.
3-35           Sec. 13.504.  IMPROPER RENTAL RATE INCREASE.  If, during the
3-36     90-day period preceding the installation of individual meters or
3-37     submeters, an owner, operator, or manager of an apartment house,
3-38     manufactured home rental community, [mobile home park] or other
3-39     multiple use facility has increased rental rates and the increase
3-40     is attributable to increased costs of utilities, the owner,
3-41     operator, or manager shall immediately reduce the rental rate by
3-42     the amount of the increase and refund all of the increase that has
3-43     previously been collected within the 90-day period.
3-44           Sec. 13.505.  ENFORCEMENT.  In addition to the enforcement
3-45     provisions contained in Subchapter K of this chapter, if an
3-46     apartment house owner, condominium manager, manufactured home
3-47     rental community [mobile home park] owner, or other multiple use
3-48     facility owner violates a rule of the commission regarding
3-49     submetering of utility service consumed exclusively within the
3-50     tenant's dwelling unit or multiple use facility unit or
3-51     nonsubmetered master metered utility costs, the tenant may recover
3-52     three times the amount of any overcharge, a civil penalty equal to
3-53     one month's rent, reasonable attorney's fees, and court costs from
3-54     the owner or condominium manager.  However, an owner of an
3-55     apartment house, manufactured home rental community [mobile home
3-56     park], or other multiple use facility or condominium manager is not
3-57     liable for a civil penalty if the owner or condominium manager
3-58     proves the violation was a good faith, unintentional mistake.
3-59           SECTION 2.  The Texas Natural Resource Conservation
3-60     Commission shall adopt rules to implement the changes made to
3-61     Subchapter M, Chapter 13, Water Code, by this Act as soon after the
3-62     effective date of this Act as possible.
3-63           SECTION 3.  The importance of this legislation and the
3-64     crowded condition of the calendars in both houses create an
3-65     emergency and an imperative public necessity that the
3-66     constitutional rule requiring bills to be read on three several
3-67     days in each house be suspended, and this rule is hereby suspended,
3-68     and that this Act take effect and be in force from and after its
3-69     passage, and it is so enacted.
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