1-1                                   AN ACT
 1-2     relating to the submetering and allocation of water service in
 1-3     apartment houses, manufactured home rental communities,
 1-4     condominiums, and other multiple use facilities.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1. Section 13.502, Water Code, is amended to read as
 1-7     follows:
 1-8           Sec. 13.502.  SUBMETERING. (a) An apartment house owner,
 1-9     manufactured home rental community owner, multiple use facility
1-10     owner, or condominium manager may provide for submetering of each
1-11     dwelling unit or rental unit for the measurement of the quantity of
1-12     water, if any, consumed by the occupants of that unit.
1-13           (b)  Except as provided by Subsections (c) and (d), a manager
1-14     of a condominium or the owner of an apartment house, manufactured
1-15     home rental community, or multiple use facility, on which
1-16     construction begins after January 1, 2003, shall provide for the
1-17     measurement of the quantity of water, if any, consumed by the
1-18     occupants of each unit through the installation of:
1-19                 (1)  submeters, owned by the property owner or manager,
1-20     for each dwelling unit or rental unit; or
1-21                 (2)  individual meters, owned by the retail public
1-22     utility, for each dwelling unit or rental unit.
1-23           (c)  An owner of an apartment house on which construction
1-24     begins after January 1, 2003, and which provides government
 2-1     assisted or subsidized rental housing to low or very low income
 2-2     residents shall install a plumbing system in the apartment house
 2-3     that is compatible with the installation of submeters for the
 2-4     measurement of the quantity of water, if any, consumed by the
 2-5     occupants of each unit.
 2-6           (d)  On request by the property owner or manager, a retail
 2-7     public utility shall install individual meters owned by the utility
 2-8     in an apartment house, manufactured home rental community, multiple
 2-9     use facility, or condominium on which construction begins after
2-10     January 1, 2003, unless the retail public utility determines that
2-11     installation of meters is not feasible. If the retail public
2-12     utility determines that installation of meters is not feasible, the
2-13     property owner or manager shall install a plumbing system that is
2-14     compatible with the installation of submeters or individual meters.
2-15     A retail public utility may charge reasonable costs to install
2-16     individual meters.
2-17           (e)  An owner of an apartment house, manufactured home rental
2-18     community, or multiple use facility or a manager of a condominium
2-19     may not change from submetered billing to allocated billing unless:
2-20                 (1)  the executive director approves of the change in
2-21     writing after a demonstration of good cause, including meter
2-22     reading or billing problems that could not feasibly be corrected or
2-23     equipment failures; and
2-24                 (2)  the property owner meets rental agreement
2-25     requirements established by the commission.
2-26           SECTION 2. Subchapter M, Chapter 13, Water Code, is amended
2-27     by adding Section 13.506 to read as follows:
 3-1           Sec. 13.506.  PLUMBING FIXTURES. (a)  After January 1, 2003,
 3-2     before an owner of an apartment house, manufactured home rental
 3-3     community, or multiple use facility or a manager of a condominium
 3-4     may implement a program to bill tenants for submetered or allocated
 3-5     water service, the owner or manager must:
 3-6                 (1)  meet the standards prescribed by Section 372.002,
 3-7     Health and Safety Code, for sink or lavatory faucets, faucet
 3-8     aerators, and showerheads; and
 3-9                 (2)  perform a water leak audit of each dwelling unit
3-10     or rental unit and each common area and repair any leaks found.
3-11           (b)  Not later than the first anniversary of the date an
3-12     owner of an apartment house, manufactured home rental community, or
3-13     multiple use facility or a manager of a condominium begins to bill
3-14     for submetered or allocated water service under Subsection (a), the
3-15     owner or manager shall:
3-16                 (1)  remove any toilets that exceed a maximum flow of
3-17     3.5 gallons of water per flushing; and
3-18                 (2)  install 1.6-gallon toilets that meet the standards
3-19     prescribed by Section 372.002, Health and Safety Code.
3-20           (c)  Subsections (a) and (b) do not apply to a manufactured
3-21     home rental community owner who does not own the manufactured homes
3-22     located on the property of the manufactured home rental community.
3-23           SECTION 3. (a)  This Act takes effect September 1, 2001.
3-24           (b)  The Texas Natural Resource Conservation Commission shall
3-25     enact rules to implement Section 13.506, Water Code, as added by
3-26     this Act, and the changes in law made by this Act to Section
3-27     13.502, Water Code, not later than September 1, 2002.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 2404 was passed by the House on May
         5, 2001, by a non-record vote; that the House refused to concur in
         Senate amendments to H.B. No. 2404 on May 24, 2001, and requested
         the appointment of a conference committee to consider the
         differences between the two houses; and that the House adopted the
         conference committee report on H.B. No. 2404 on May 27, 2001, by a
         non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 2404 was passed by the Senate, with
         amendments, on May 22, 2001, by the following vote:  Yeas 30, Nays
         0, 1 present, not voting; at the request of the House, the Senate
         appointed a conference committee to consider the differences
         between the two houses; and that the Senate adopted the conference
         committee report on H.B. No. 2404 on May 27, 2001, by a viva-voce
         vote.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor