1.1 A bill for an act
1.2 relating to manufactured homes; amending provisions related to utility billing
1.3 practices in manufactured home parks; amending Minnesota Statutes 2022, sections
1.4 103G.291, subdivision 4; 327C.015, subdivision 17, by adding subdivisions;
1.5 327C.04, subdivisions 1, 2, by adding subdivisions; repealing Minnesota Statutes
1.6 2022, section 327C.04, subdivision 4.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2022, section 103G.291, subdivision 4, is amended to read:
1.9 Subd. 4.Demand reduction measures.(a) For the purposes of this section, "demand
1.10reduction measures" means measures that reduce water demand, water losses, peak water
1.11demands, and nonessential water uses. Demand reduction measures must include a
1.12conservation rate structure, or a uniform rate structure with a conservation program that
1.13achieves demand reduction. A "conservation rate structure" means a rate structure that
1.14encourages conservation and may include increasing block rates, seasonal rates, time of use
1.15rates, individualized goal rates, or excess use rates. If a conservation rate is applied to
1.16multifamily dwellings or a manufactured home park, as defined in section 327C.015,
1.17subdivision 8, the rate structure must consider each residential unit as an individual user.
1.18 (b) To encourage conservation, a public water supplier serving more than 1,000 people
1.19must implement demand reduction measures by January 1, 2015.
1.20 EFFECTIVE DATE.This section is effective August 1, 2024, and applies to a billing
1.21period that begins on or after that date.
1Section 1.
S1472-1 1st EngrossmentSF1472 REVISOR MS
SENATE
STATE OF MINNESOTA
S.F. No. 1472NINETY-THIRD SESSION
(SENATE AUTHORS: KUNESH and Lucero)
OFFICIAL STATUSD-PGDATE
Introduction and first reading75502/09/2023
Referred to Commerce and Consumer Protection
Comm report: To pass as amended03/08/2023
Second reading 2.1 Sec. 2. Minnesota Statutes 2022, section 327C.015, is amended by adding a subdivision
2.2to read:
2.3 Subd. 3a.Commodity rate."Commodity rate" means the per unit price for utility service
2.4that varies directly with the volume of a resident's consumption of utility service and that
2.5is established or approved by the Minnesota Public Utilities Commission or a municipal
2.6public utilities commission, an electric cooperative association, or a municipality and charged
2.7to a user of the service.
2.8 EFFECTIVE DATE.This section is effective the day following final enactment.
2.9 Sec. 3. Minnesota Statutes 2022, section 327C.015, is amended by adding a subdivision
2.10to read:
2.11 Subd. 11a.Public utility."Public utility" has the meaning given in section 216B.02,
2.12subdivision 4.
2.13 EFFECTIVE DATE.This section is effective the day following final enactment.
2.14 Sec. 4. Minnesota Statutes 2022, section 327C.015, subdivision 17, is amended to read:
2.15 Subd. 17.Substantial modification."Substantial modification" means any change in
2.16a rule which: (a) significantly diminishes or eliminates any material obligation of the park
2.17owner; (b) significantly diminishes or eliminates any material right, privilege or freedom
2.18of action of a resident; or (c) involves a significant new expense for a resident. The
2.19installation of water and sewer meters and the subsequent metering of and billing for water
2.20and sewer service is not a substantial modification of the lease, provided the park owner
2.21complies with section 327C.04, subdivision 6.
2.22 EFFECTIVE DATE.This section is effective for meter installations initiated on or
2.23after August 1, 2023.
2.24 Sec. 5. Minnesota Statutes 2022, section 327C.015, is amended by adding a subdivision
2.25to read:
2.26 Subd. 17a.Utility provider."Utility provider" means a public utility, an electric
2.27cooperative association, or a municipal utility.
2.28 EFFECTIVE DATE.This section is effective the day following final enactment.
2Sec. 5.
S1472-1 1st EngrossmentSF1472 REVISOR MS 3.1 Sec. 6. Minnesota Statutes 2022, section 327C.04, subdivision 1, is amended to read:
3.2 Subdivision 1.Billing permitted.A park owner who either provides utility service
3.3directly to residents or who redistributes to residents utility service provided to the park
3.4owner by a utility provider may charge the residents for that service, only if the charges
3.5comply with this section.
3.6 EFFECTIVE DATE.This section is effective the day following final enactment.
3.7 Sec. 7. Minnesota Statutes 2022, section 327C.04, subdivision 2, is amended to read:
3.8 Subd. 2.Metering required.A park owner who charges residents for a utility service
3.9must charge each household the same amount, unless the park owner has installed measuring
3.10devices which accurately meter each household's use of the utility. Utility measuring devices
3.11installed by the park owner must be installed or repaired only by a licensed plumber, licensed
3.12electrician, or licensed manufactured home installer.
3.13 EFFECTIVE DATE.This section is effective August 1, 2023, and applies to meters
3.14installed or repaired on or after that date.
3.15 Sec. 8. Minnesota Statutes 2022, section 327C.04, is amended by adding a subdivision to
3.16read:
3.17 Subd. 5.Utility charge for metered service.(a) A park owner who redistributes utility
3.18service may not charge a resident a commodity rate that exceeds the commodity rate at
3.19which the park owner purchases utility service from a utility provider. Before billing residents
3.20for redistributed utility service, a park owner must deduct utility service used exclusively
3.21or primarily for the park owner's purposes.
3.22 (b) If a utility bill that a park owner receives from a utility provider separates from
3.23variable consumption charges a fixed service or meter charge or fee, taxes, surcharges, or
3.24other miscellaneous charges, the park owner must deduct the park owner's pro rata share
3.25of these separately itemized charges and apportion the remaining fixed portion of the bill
3.26equally among residents based on the total number of occupied units in the park.
3.27 (c) A park owner may not charge to or collect from residents any administrative, capital,
3.28or other expenses associated with the distribution of utility services, including but not limited
3.29to disconnection, reconnection, and late payment fees.
3.30 EFFECTIVE DATE.This section is effective July 1, 2023.
3Sec. 8.
S1472-1 1st EngrossmentSF1472 REVISOR MS 4.1 Sec. 9. Minnesota Statutes 2022, section 327C.04, is amended by adding a subdivision to
4.2read:
4.3 Subd. 6.Rent increases following the installation of water meters.A park owner may
4.4not increase lot rents for 13 months following the commencement of utility bills for a resident
4.5whose lease included water service. In each of the three months prior to commencement of
4.6utility billing, a park owner must provide the resident with a sample bill for water service.
4.7 EFFECTIVE DATE.This section is effective August 1, 2023, and applies to meter
4.8installations initiated on or after that date.
4.9 Sec. 10. REPEALER.
4.10 Minnesota Statutes 2022, section 327C.04, subdivision 4, is repealed.
4.11 EFFECTIVE DATE.This section is effective July 1, 2023.
4Sec. 10.
S1472-1 1st EngrossmentSF1472 REVISOR MS 327C.04 UTILITY CHARGES.
Subd. 4.Electricity.If a park owner provides electricity to residents by reselling electricity
purchased from a public or municipal utility or electrical cooperative, and compliance with
subdivision 3 would cause the park owner to lose money on the sale of electricity, the park owner
may bill residents at a rate calculated to allow the park owner to avoid losing money on the sale of
electricity. In calculating the cost of providing electricity, the park owner may consider only the
actual amount billed by the public utility or electrical cooperative to the park owner for electricity
furnished to residents. The park owner may not consider administrative, capital or other expenses.
1R
APPENDIX
Repealed Minnesota Statutes: S1472-1