1.1 	A bill for an act
1.2 	relating to landlord and tenant; providing that
1.3 	landlords who apportion bills or charge fees for
1.4 	utility service are not exempt from regulation as a
1.5 	utility; amending Minnesota Statutes 2004, sections
1.6 	216B.02, subdivision 4; 504B.215, subdivision 2.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. Minnesota Statutes 2004, section 216B.02,
1.9 	subdivision 4, is amended to read:
1.10 		Subd. 4.Public utility.  "Public utility" means persons,
1.11 	corporations or other legal entities, their lessees, trustees,
1.12 	and receivers, now or hereafter operating, maintaining, or
1.13 	controlling in this state equipment or facilities for furnishing
1.14 	at retail natural, manufactured or mixed gas or electric service
1.15 	to or for the public or engaged in the production and retail
1.16 	sale thereof but does not include (1) a municipality or a
1.17 	cooperative electric association, organized under the provisions
1.18 	of chapter 308A producing or furnishing natural, manufactured or
1.19 	mixed gas or electric service or (2) a retail seller of
1.20 	compressed natural gas used as a vehicular fuel which purchases
1.21 	the gas from a public utility.  Except as otherwise provided,
1.22 	the provisions of this chapter shall not be applicable to any
1.23 	sale of natural, manufactured or mixed gas or electricity by a
1.24 	public utility to another public utility for resale.  In
1.25 	addition, the provisions of this chapter shall not apply to a
1.26 	public utility whose total natural gas business consists of
2.1 	supplying natural, manufactured or mixed gas to not more than
2.2 	650 customers within a city pursuant to a franchise granted by
2.3 	the city, provided a resolution of the city council requesting
2.4 	exemption from regulation is filed with the commission.  The
2.5 	city council may rescind the resolution requesting exemption at
2.6 	any time, and, upon the filing of the rescinding resolution with
2.7 	the commission, the provisions of this chapter shall apply to
2.8 	the public utility.  No person shall be deemed to be a public
2.9 	utility if it furnishes its services only to tenants or
2.10 	cooperative or condominium owners in buildings owned, leased, or
2.11 	operated by such person, except the person is a utility if the
2.12 	person furnishes services by submetering or by apportionment as
2.13 	provided in section 504B.215, subdivision 2, or charges any fees
2.14 	associated with the provision of utility service in addition to
2.15 	those charged by a utility servicing the building.  No person,
2.16 	except a person furnishing utility services to tenants in a
2.17 	building owned, leased, or operated by the person,shall be
2.18 	deemed to be a public utility if it furnishes service to
2.19 	occupants of a manufactured home or trailer park owned, leased,
2.20 	or operated by such person.  No person shall be deemed to be a
2.21 	public utility if it produces or furnishes service to less than
2.22 	25 persons.

2.23 	Sec. 2. Minnesota Statutes 2004, section 504B.215,
2.24 	subdivision 2, is amended to read:
2.25 		Subd. 2.Single-meter utility service payments.  In a
2.26 	residential leasehold contract entered into or renewed on or
2.27 	after August 1, 1995, the landlord of a single-metered
2.28 	residential building shall be the bill payer responsible, and
2.29 	shall be the customer of record contracting with the utility for
2.30 	utility services.  The landlord must advise the utility provider
2.31 	that the utility services apply to a single-metered residential
2.32 	building.  A failure by the landlord to comply with this
2.33 	subdivision is a violation of sections 504B.161, subdivision 1,
2.34 	clause (1), and 504B.221.  This subdivision may not be waived by
2.35 	contract or otherwise.  This subdivision does not require a
2.36 	landlord to contract and pay for utility service provided to
3.1 	each residential unit through a separate meter which accurately
3.2 	measures that unit's use only.  This subdivision does not
3.3 	prohibit a landlord from apportioning utility service payments
3.4 	among residential units and either including utility costs in a
3.5 	unit's rent or billing for utility charges separate from
3.6 	rent. A landlord who apportions water or sewer service:
3.7 	(1) may not collect in the aggregate from the tenants more
3.8 	than the landlord is billed by the utility;
3.9 	(2) may not charge a higher rate for submetered service
3.10 	than the rate the landlord is billed for usage by the utility;
3.11 	(3) may collect any fixed portion of a utility bill charged
3.12 	by a utility to a landlord only by dividing the charge equally
3.13 	among all units; and 
3.14 	(4) may not charge additional fees or charges of any kind
3.15 	for water utility service.