Creates provisions relating to certain types of billing for water or sewer services
If enacted, SB1471 would amend existing state laws to clarify that property owners or operators, along with their third-party billing representatives, are not classified as public utilities under Missouri law for the purpose of these new billing practices. This change would ensure that property owners can offer utilities like water and sewer service to lessees without adhering to the regulations typically applied to public utility companies. The legislators supporting this bill argue that it will provide greater flexibility for property owners and create a more direct pricing structure for tenants, ensuring they pay only for what they use.
Senate Bill 1471 introduces new provisions related to the billing of water and sewer services specifically for rental properties in Missouri. The bill allows property owners to charge tenants separately for these services, provided that a separate meter is utilized to measure the water and sewer usage in each rental unit. Alternatively, property owners may implement a mathematical formula to allocate utility costs among tenants based on total consumption. This aims to provide a fair approach to managing utility costs within rental housing, responding to various issues surrounding residential utility usage and tenant billing.
One of the notable points of contention regarding SB1471 lies in the potential for abuse of the billing mechanisms established by the bill. Critics express concerns that using separate meters or mathematical formulas could lead to inaccurate billing or inflated charges for tenants. Additionally, the permissibility for property owners to charge late fees associated with individual utility payments, deemed as rent, raises ethical questions about tenant exploitation. Furthermore, there are apprehensions surrounding the transparency of charges, as the bill mandates property owners to disclose methodology for cost allocation to prospective tenants but may lack sufficient oversight to ensure compliance.