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