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AN ACT
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relating to the authority and liability of owners and managers of |
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apartment houses, manufactured home rental communities, |
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condominiums, and multiple use facilities in charging tenants for |
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submetered and nonsubmetered master metered water and wastewater |
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services. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 13.501, Water Code, is amended by adding |
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Subdivisions (1-a) and (9) and amending Subdivision (5) to read as |
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follows: |
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(1-a) "Condominium manager" or "manager of a |
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condominium" means a condominium unit owners' association |
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organized under Section 82.101, Property Code, or an incorporated |
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or unincorporated entity comprising the council of owners under |
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Chapter 81, Property Code. |
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(5) "Owner" means the legal titleholder of an |
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apartment house, manufactured home rental community, or multiple |
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use facility and any individual, firm, or corporation expressly |
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identified in a lease agreement as [that purports to be] the |
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landlord of tenants in the apartment house, manufactured home |
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rental community, or multiple use facility. The term does not |
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include the manager of an apartment home unless the manager is |
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expressly identified as the landlord in the lease agreement. |
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(9) "Utility costs" or "utility service costs" means |
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any amount charged to the owner by a retail public utility for water |
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or wastewater service. |
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SECTION 2. Section 13.503, Water Code, is amended by adding |
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Subsection (f) to read as follows: |
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(f) This section does not limit the authority of an owner, |
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operator, or manager of an apartment house, manufactured home |
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rental community, or multiple use facility to charge, bill for, or |
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collect rent, an assessment, an administrative fee, a fee relating |
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to the upkeep or management of chilled water, boiler, heating, |
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ventilation, air conditioning, or other building system, or any |
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other amount that is unrelated to utility costs. |
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SECTION 3. Section 13.5031, Water Code, is amended to read |
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as follows: |
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Sec. 13.5031. NONSUBMETERING RULES. (a) Notwithstanding |
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any other law, the utility commission shall adopt rules and |
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standards governing billing systems or methods used by manufactured |
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home rental community owners, apartment house owners, condominium |
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managers, or owners of other multiple use facilities for prorating |
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or allocating among tenants nonsubmetered master metered utility |
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service costs. In addition to other appropriate safeguards for the |
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tenant, those rules shall require that: |
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(1) the rental agreement contain a clear written |
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description of the method of calculation of the allocation of |
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nonsubmetered master metered utilities for the manufactured home |
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rental community, apartment house, or multiple use facility; |
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(2) the rental agreement contain a statement of the |
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average manufactured home, apartment, or multiple use facility unit |
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monthly bill for all units for any allocation of those utilities for |
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the previous calendar year; |
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(3) except as provided by this section, an owner or |
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condominium manager may not impose additional charges on a tenant |
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in excess of the actual charges imposed on the owner or condominium |
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manager for utility consumption by the manufactured home rental |
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community, apartment house, or multiple use facility; |
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(4) the owner or condominium manager shall maintain |
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adequate records regarding the utility consumption of the |
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manufactured home rental community, apartment house, or multiple |
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use facility, the charges assessed by the retail public utility, |
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and the allocation of the utility costs to the tenants; |
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(5) the owner or condominium manager shall maintain |
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all necessary records concerning utility allocations, including |
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the retail public utility's bills, and shall make the records |
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available for inspection by the tenants during normal business |
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hours; and |
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(6) the owner or condominium manager may charge a |
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tenant a fee for late payment of an allocated water bill if the |
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amount of the fee does not exceed five percent of the bill paid |
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late. |
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(b) This section does not limit the authority of an owner, |
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operator, or manager of an apartment house, manufactured home |
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rental community, or multiple use facility to charge, bill for, or |
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collect rent, an assessment, an administrative fee, a fee relating |
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to the upkeep or management of chilled water, boiler, heating, |
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ventilation, air conditioning, or other building system, or any |
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other amount that is unrelated to utility costs. |
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SECTION 4. Section 13.505, Water Code, is amended to read as |
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follows: |
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Sec. 13.505. RESTITUTION [ENFORCEMENT]. (a) In this |
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section, "overcharge" means the amount, if any, a tenant is charged |
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for submetered or nonsubmetered master metered utility service to |
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the tenant's dwelling unit after a violation occurred relating to |
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the assessment of a portion of utility costs in excess of the amount |
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the tenant would have been charged under this subchapter. |
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(b) The utility commission has exclusive jurisdiction for |
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violations under this subchapter. |
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(c) If [In addition to the enforcement provisions contained
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in Subchapter K, if] an apartment house owner, condominium manager, |
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manufactured home rental community owner, or other multiple use |
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facility owner violates a rule of the utility commission regarding |
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utility costs, the person claiming the violation may file a |
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complaint with the utility commission. The utility commission and |
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State Office of Administrative Hearings shall establish an online |
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and telephone formal complaint and hearing system through which a |
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person may file a complaint under this subchapter and may appear |
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remotely for a hearing before the utility commission or the State |
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Office of Administrative Hearings. If the utility commission |
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determines that the owner or condominium manager overcharged a |
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complaining tenant for water or wastewater service from the retail |
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public utility, the utility commission shall require the owner or |
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condominium manager, as applicable, to repay the complaining tenant |
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the amount overcharged. |
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(d) Nothing in this section limits or impairs the utility |
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commission's enforcement authority under Subchapter K. The utility |
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commission may assess an administrative penalty under Section |
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13.4151 for a violation of this chapter or of any rule adopted under |
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this chapter [submetering of utility service consumed exclusively
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within the tenant's dwelling unit or multiple use facility unit or
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nonsubmetered master metered utility costs, the tenant may recover
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three times the amount of
any overcharge, a civil penalty equal to
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one month's rent, reasonable attorney's fees, and court costs from
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the owner or condominium manager. However, an owner of an apartment
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house, manufactured home rental community, or other multiple use
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facility or condominium manager is not liable for a civil penalty if
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the owner or condominium manager proves the violation was a good
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faith, unintentional mistake]. |
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SECTION 5. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2017. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 873 passed the Senate on |
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April 20, 2017, by the following vote: Yeas 21, Nays 10; and that |
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the Senate concurred in House amendments on May 25, 2017, by the |
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following vote: Yeas 21, Nays 10. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 873 passed the House, with |
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amendments, on May 21, 2017, by the following vote: Yeas 107, |
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Nays 30, three present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |