Minnesota 2023-2024 Regular Session

Minnesota Senate Bill SF1472 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		1.1 A bill for an act
2	2		1.2 relating to manufactured homes; amending provisions related to utility billing
3	3		1.3 practices in manufactured home parks; amending Minnesota Statutes 2022, sections
4		-	1.4 ~~103G.291, subdivision 4;~~ 327C.015, subdivision 17, by adding subdivisions;
	4	+	1.4 327C.015, subdivision 18, by adding subdivisions; 327C.02, subdivision 2;
5	5		1.5 327C.04, subdivisions 1, 2, by adding subdivisions; repealing Minnesota Statutes
6		-	1.6 2022, section 327C.04, ~~subdivision~~ 4.
	6	+	1.6 2022, section 327C.04, subdivisions 3, 4.
7	7		1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
8		-	1.8 Section 1. Minnesota Statutes 2022, section 103G.291, subdivision 4, is amended to read:
9		-	1.9 Subd. 4.Demand reduction measures.(a) For the purposes of this section, "demand
10		-	1.10reduction measures" means measures that reduce water demand, water losses, peak water
11		-	1.11demands, and nonessential water uses. Demand reduction measures must include a
12		-	1.12conservation rate structure, or a uniform rate structure with a conservation program that
13		-	1.13achieves demand reduction. A "conservation rate structure" means a rate structure that
14		-	1.14encourages conservation and may include increasing block rates, seasonal rates, time of use
15		-	1.15rates, individualized goal rates, or excess use rates. If a conservation rate is applied to
16		-	1.16multifamily dwellings or a manufactured home park, as defined in section 327C.015,
17		-	1.17subdivision 8, the rate structure must consider each residential unit as an individual user.
18		-	1.18 (b) To encourage conservation, a public water supplier serving more than 1,000 people
19		-	1.19must implement demand reduction measures by January 1, 2015.
20		-	1.20 EFFECTIVE DATE.This section is effective August 1, 2024, and applies to a billing
21		-	1.21period that begins on or after that date.
22		-	1Section 1.
23		-	S1472-1 1st EngrossmentSF1472 REVISOR MS
	8	+	1.8 Section 1. Minnesota Statutes 2022, section 327C.015, is amended by adding a subdivision
	9	+	1.9to read:
	10	+	1.10 Subd. 1a.Accurately meter."Accurately meter" means the metering of consumption
	11	+	1.11of electricity, natural gas, water, and sewage and septic services by measuring devices that
	12	+	1.12meet the standards, including tolerance levels, established by the American National Standard
	13	+	1.13for Electricity Meters, the American Gas Association, or the American Water Works
	14	+	1.14Association, as applicable.
	15	+	1.15 EFFECTIVE DATE.This section is effective the day following final enactment.
	16	+	1.16 Sec. 2. Minnesota Statutes 2022, section 327C.015, is amended by adding a subdivision
	17	+	1.17to read:
	18	+	1.18 Subd. 3a.Commodity rate."Commodity rate" means the price per gallon of water,
	19	+	1.19hundred cubic feet of natural gas, kilowatt-hour of electricity, therm of natural gas, or any
	20	+	1.20other unit of utility service that is based on the quantity of usage and approved by the state
	21	+	1.21or a municipal public utilities commission or a municipality.
	22	+	1.22 EFFECTIVE DATE.This section is effective the day following final enactment.
	23	+	1Sec. 2.
	24	+	23-00713 as introduced12/05/22 REVISOR MS/HL
24	25		SENATE
25	26		STATE OF MINNESOTA
26	27		S.F. No. 1472NINETY-THIRD SESSION
27	28		(SENATE AUTHORS: KUNESH and Lucero)
28	29		OFFICIAL STATUSD-PGDATE
29		-	Introduction and first reading75502/09/2023
30		-	Referred to Commerce and Consumer Protection
31		-	Comm report: To pass as amended03/08/2023
32		-	Second reading 2.1 Sec. 2. Minnesota Statutes 2022, section 327C.015, is amended by adding a subdivision
	30	+	Introduction and first reading02/09/2023
	31	+	Referred to Commerce and Consumer Protection 2.1 Sec. 3. Minnesota Statutes 2022, section 327C.015, is amended by adding a subdivision
33	32		2.2to read:
34		-	2.3 Subd. 3a.Commodity rate."Commodity rate" means the per unit price for utility service
35		-	2.4that varies directly with the volume of a resident's consumption of utility service and that
36		-	2.5is established or approved by the Minnesota Public Utilities Commission or a municipal
37		-	2.6public utilities commission, an electric cooperative association, or a municipality and charged
38		-	2.7to a user of the service.
39		-	2.8 EFFECTIVE DATE.This section is effective the day following final enactment.
40		-	2.9 Sec. 3. Minnesota Statutes 2022, section 327C.015, is amended by adding a subdivision
41		-	2.10to read:
42		-	2.11 Subd. 11a.Public utility."Public utility" has the meaning given in section 216B.02,
43		-	2.12subdivision 4.
44		-	2.13 EFFECTIVE DATE.This section is effective the day following final enactment.
45		-	2.14 Sec. 4. Minnesota Statutes 2022, section 327C.015, subdivision 17, is amended to read:
46		-	2.15 Subd. 17.Substantial modification."Substantial modification" means any change in
47		-	2.16a rule which: (a) significantly diminishes or eliminates any material obligation of the park
48		-	2.17owner; (b) significantly diminishes or eliminates any material right, privilege or freedom
49		-	2.18of action of a resident; or (c) involves a significant new expense for a resident. The
50		-	2.19installation of water and sewer meters and the subsequent metering of and billing for water
51		-	2.20and sewer service is not a substantial modification of the lease, provided the park owner
52		-	2.21complies with section 327C.04, subdivision 6.
53		-	2.22 EFFECTIVE DATE.This section is effective for meter installations initiated on or
54		-	2.23after August 1, 2023.
55		-	2.24 Sec. 5. Minnesota Statutes 2022, section 327C.015, is amended by adding a subdivision
56		-	2.25to read:
57		-	2.26 Subd. 17a.Utility provider."Utility provider" means a public utility, an electric
58		-	2.27cooperative association, or a municipal utility.
59		-	2.28 EFFECTIVE DATE.This section is effective the day following final enactment.
	33	+	2.3 Subd. 11a.Public utility."Public utility" has the meaning given in section 216B.02,
	34	+	2.4subdivision 4.
	35	+	2.5 EFFECTIVE DATE.This section is effective the day following final enactment.
	36	+	2.6 Sec. 4. Minnesota Statutes 2022, section 327C.015, subdivision 18, is amended to read:
	37	+	2.7 Subd. 18.Utility service."Utility service" means any electric, fuel oil, natural or propane
	38	+	2.8gas, sewer, waste disposal and water service by whatever means furnished that is provided
	39	+	2.9by a public utility or a municipal utility.
	40	+	2.10 EFFECTIVE DATE.This section is effective the day following final enactment.
	41	+	2.11 Sec. 5. Minnesota Statutes 2022, section 327C.02, subdivision 2, is amended to read:
	42	+	2.12 Subd. 2.Modification of rules.The park owner must give the resident at least 60 days'
	43	+	2.13notice in writing of any rule change. A rule adopted or amended after the resident initially
	44	+	2.14enters into a rental agreement may be enforced against that resident only if the new or
	45	+	2.15amended rule is reasonable and is not a substantial modification of the original agreement.
	46	+	2.16Any security deposit increase is a substantial modification of the rental agreement. A
	47	+	2.17reasonable rent increase made in compliance with section 327C.06 is not a substantial
	48	+	2.18modification of the rental agreement and is not considered to be a rule for purposes of section
	49	+	2.19327C.015, subdivision 12. The installation of water meters and the subsequent metering
	50	+	2.20and billing for water service is not a substantial modification of the lease, provided the park
	51	+	2.21owner complies with section 327C.04, subdivision 6. A rule change necessitated by
	52	+	2.22government action is not a substantial modification of the rental agreement. A rule change
	53	+	2.23requiring all residents to maintain their homes, sheds and other appurtenances in good repair
	54	+	2.24and safe condition shall not be deemed a substantial modification of a rental agreement. If
	55	+	2.25a part of a resident's home, shed or other appurtenance becomes so dilapidated that repair
	56	+	2.26is impractical and total replacement is necessary, the park owner may require the resident
	57	+	2.27to make the replacement in conformity with a generally applicable rule adopted after the
	58	+	2.28resident initially entered into a rental agreement with the park owner.
	59	+	2.29 In any action in which a rule change is alleged to be a substantial modification of the
	60	+	2.30rental agreement, a court may consider the following factors in limitation of the criteria set
	61	+	2.31forth in section 327C.015, subdivision 17:
60	62		2Sec. 5.
61		-	S1472-1 1st EngrossmentSF1472 REVISOR MS 3.1 Sec. 6. Minnesota Statutes 2022, section 327C.04, subdivision 1, is amended to read:
62		-	3.2 Subdivision 1.Billing permitted.A park owner who either provides utility service
63		-	3.3directly to residents or who redistributes to residents utility service provided to the park
64		-	3.4owner by a utility provider may charge the residents for that service, only if the charges
65		-	3.5comply with this section.
66		-	3.6 EFFECTIVE DATE.This section is effective the day following final enactment.
67		-	3.7 Sec. 7. Minnesota Statutes 2022, section 327C.04, subdivision 2, is amended to read:
68		-	3.8 Subd. 2.Metering required.A park owner who charges residents for a utility service
69		-	3.9must charge each household the same amount, unless the park owner has installed measuring
70		-	3.10devices which accurately meter each household's use of the utility. Utility measuring devices
71		-	3.11installed by the park owner must be installed or repaired only by a licensed plumber, licensed
72		-	3.12electrician, or licensed manufactured home installer.
73		-	3.13 EFFECTIVE DATE.This section is effective August 1, 2023, and applies to meters
74		-	3.14installed or repaired on or after that date.
75		-	3.15 Sec. 8. Minnesota Statutes 2022, section 327C.04, is amended by adding a subdivision to
76		-	3.16read:
77		-	3.17 Subd. 5.Utility charge for metered service.(a) A park owner who redistributes utility
78		-	3.18service may not charge a resident a commodity rate that exceeds the commodity rate at
79		-	3.19which the park owner purchases utility service from a utility provider. Before billing residents
80		-	3.20for redistributed utility service, a park owner must deduct utility service used exclusively
81		-	3.21or primarily for the park owner's purposes.
82		-	3.22 (b) If a utility bill that a park owner receives from a utility provider separates from
83		-	3.23variable consumption charges a fixed service or meter charge or fee, taxes, surcharges, or
84		-	3.24other miscellaneous charges, the park owner must deduct the park owner's pro rata share
85		-	3.25of these separately itemized charges and apportion the remaining fixed portion of the bill
86		-	3.26equally among residents based on the total number of occupied units in the park.
87		-	3.27 (c) A park owner may not charge to or collect from residents any administrative, capital,
88		-	3.28or other expenses associated with the distribution of utility services, including but not limited
89		-	3.29to disconnection, reconnection, and late payment fees.
90		-	3.30 EFFECTIVE DATE.This section is effective July 1, 2023.
	63	+	23-00713 as introduced12/05/22 REVISOR MS/HL 3.1 (1) any significant changes in circumstances which have occurred since the original rule
	64	+	3.2was adopted and which necessitate the rule change; and
	65	+	3.3 (2) any compensating benefits which the rule change will produce for the residents.
	66	+	3.4 EFFECTIVE DATE.This section is effective for meter installations initiated on or
	67	+	3.5after August 1, 2023.
	68	+	3.6 Sec. 6. Minnesota Statutes 2022, section 327C.04, subdivision 1, is amended to read:
	69	+	3.7 Subdivision 1.Billing permitted.A park owner who provides redistributes utility service
	70	+	3.8provided to the park owner by a public utility, a cooperative electric association, or a
	71	+	3.9municipal utility to residents may charge the residents for that service, only if the charges
	72	+	3.10comply with this section.
	73	+	3.11 Sec. 7. Minnesota Statutes 2022, section 327C.04, subdivision 2, is amended to read:
	74	+	3.12 Subd. 2.Metering required.(a) A park owner who charges residents for a utility service
	75	+	3.13must charge each household the same amount, unless the park owner has installed measuring
	76	+	3.14devices which accurately meter each household's use of the utility.
	77	+	3.15 (b) Utility measuring devices installed by the park owner must be installed or repaired
	78	+	3.16only by a licensed plumber or licensed electrician.
	79	+	3.17 (c) A park owner must promptly investigate a report by a resident of a problem with the
	80	+	3.18resident's utility measuring device. A park owner who knows the utility measuring device
	81	+	3.19is not accurately measuring utility service must promptly repair or replace a damaged or
	82	+	3.20inaccurate utility measuring device. A park owner may not charge the resident for repair or
	83	+	3.21replacement of a damaged utility measuring device unless the park owner can demonstrate
	84	+	3.22and document that the damage was caused by the resident's willful conduct. The park owner
	85	+	3.23must adjust or credit the resident's bill to fully account for the inaccurate measurements.
	86	+	3.24 EFFECTIVE DATE.This section is effective August 1, 2023.
	87	+	3.25 Sec. 8. Minnesota Statutes 2022, section 327C.04, is amended by adding a subdivision to
	88	+	3.26read:
	89	+	3.27 Subd. 5.Utility charges for metered service.(a) A park owner may not charge to or
	90	+	3.28collect from a resident the amount of utility service consumed at a commodity rate that is
	91	+	3.29greater than the commodity rate at which the park owner purchases service from a utility
	92	+	3.30provider. The park owner must deduct the amount that reflects consumption that exclusively
	93	+	3.31or primarily is for the park owner's purposes.
91	94		3Sec. 8.
92		-	S1472-1 1st EngrossmentSF1472 REVISOR MS 4.1 Sec. 9. Minnesota Statutes 2022, section 327C.04, is amended by adding a subdivision to
93		-	4.2read:
94		-	4.3 Subd. 6.Rent increases following the installation of water meters.A park owner may
95		-	4.4not increase lot rents for 13 months following the commencement of utility bills for a resident
96		-	4.5whose lease included water service. In each of the three months prior to commencement of
97		-	4.6utility billing, a park owner must provide the resident with a sample bill for water service.
98		-	4.7 EFFECTIVE DATE.This section is effective August 1, 2023, and applies to meter
99		-	4.8installations initiated on or after that date.
100		-	4.9 Sec. 10. REPEALER.
101		-	4.10 Minnesota Statutes 2022, section 327C.04, subdivision 4, is repealed.
102		-	4.11 EFFECTIVE DATE.This section is effective July 1, 2023.
	95	+	23-00713 as introduced12/05/22 REVISOR MS/HL 4.1 (b) If a bill a park owner receives from a utility provider separates a fixed service or
	96	+	4.2meter charge or fee from variable consumption charges, the park owner must deduct the
	97	+	4.3park owner's pro rata share and apportion the remaining fixed portion of the bill equally
	98	+	4.4among residents based on the number of units in the park.
	99	+	4.5 (c) If a bill a park owner receives from a utility provider separately itemizes taxes,
	100	+	4.6surcharges, and other miscellaneous charges other than a fixed service charge and variable
	101	+	4.7consumption charges, the park owner must deduct the park owner's pro rata share and
	102	+	4.8apportion the remaining portion of the bill reflecting the taxes, surcharges, and other
	103	+	4.9miscellaneous charges equally among residents based on the number of units in the park.
	104	+	4.10 (d) A park owner may not charge to or collect from residents any administrative, capital,
	105	+	4.11or other expenses, including but not limited to disconnection, reconnection, and late payment
	106	+	4.12fees.
	107	+	4.13 EFFECTIVE DATE.This section is effective July 1, 2023.
	108	+	4.14 Sec. 9. Minnesota Statutes 2022, section 327C.04, is amended by adding a subdivision to
	109	+	4.15read:
	110	+	4.16 Subd. 6.Conditions for the subsequent installation of water meters.Where a park
	111	+	4.17owner installs measuring devices for water service for a resident whose original lease
	112	+	4.18included water service, the park owner must, in the first month in which the park owner
	113	+	4.19bills the resident separately for water and for every month thereafter for the next 11 months,
	114	+	4.20reduce the rent by the amount of the water bill and, notwithstanding section 327C.06,
	115	+	4.21subdivision 3, may not increase the rent during that period. Thereafter, the park owner may
	116	+	4.22increase the rent in compliance with section 327C.06, provided the increase is based on the
	117	+	4.23rent in the month during the preceding 12 months in which the water bill was the highest.
	118	+	4.24 EFFECTIVE DATE.This section is effective for meter installations initiated on or
	119	+	4.25after August 1, 2023.
	120	+	4.26 Sec. 10. REPEALER.
	121	+	4.27 Minnesota Statutes 2022, section 327C.04, subdivisions 3 and 4, are repealed.
	122	+	4.28 EFFECTIVE DATE.This section is effective July 1, 2023.
103	123		4Sec. 10.
104		-	S1472-1 1st EngrossmentSF1472 REVISOR MS 327C.04 UTILITY CHARGES.
	124	+	23-00713 as introduced12/05/22 REVISOR MS/HL 327C.04 UTILITY CHARGES.
	125	+	Subd. 3.Permissible rates.Except as provided in subdivision 4, no park owner shall, directly
	126	+	or indirectly, charge or otherwise receive payment from a resident for a utility service, or require
	127	+	a resident to purchase a utility service from the park owner or any other person, at a rate which is
	128	+	greater than either of the following:
	129	+	(1) a rate which the resident could pay directly for the same utility service from some other
	130	+	comparable source in the same market area; or
	131	+	(2) a rate which is charged to single family dwellings with comparable service within the same
	132	+	market area.
105	133		Subd. 4.Electricity.If a park owner provides electricity to residents by reselling electricity
106	134		purchased from a public or municipal utility or electrical cooperative, and compliance with
107	135		subdivision 3 would cause the park owner to lose money on the sale of electricity, the park owner
108	136		may bill residents at a rate calculated to allow the park owner to avoid losing money on the sale of
109	137		electricity. In calculating the cost of providing electricity, the park owner may consider only the
110	138		actual amount billed by the public utility or electrical cooperative to the park owner for electricity
111	139		furnished to residents. The park owner may not consider administrative, capital or other expenses.
112	140		1R
113	141		APPENDIX
114		-	Repealed Minnesota Statutes: ~~S1472-1~~
	142	+	Repealed Minnesota Statutes: 23-00713