HB 1013 — Ratio Utility Billing Systems

SecondNOTE: Regular Session Seventy-fifth General Assembly STATE OF COLORADO REREVISED This Version Includes All Amendments Adopted in the Second House LLS NO.

26-0251.01This Christopherbill McMichaelhas x4775been HOUSEprepared BILLfor 26-1013the HOUSEsignatures SPONSORSHIPof Sirotaandthe Mabrey,appropriate Ricks,Bacon,Brown,Clifford,Espenoza,Froelich,Garcia,Lindsay,legislative Nguyen,officers Paschal,and Rutinel,the Story,Governor. Zokaie SENATE SPONSORSHIP CutterandWeissman, Coleman,GonzalesJ.,Jodeh,Kipp,Kolker,Lindstedt,Marchman, Sullivan, Wallace e n e 2 E a 2 A U 0, N g 1 S d hr House Committees Senate Committees e a Business Affairs & Labor Business, Labor, & Technology R M r g A BILL FOR AN ACT d e 2 C ONCERNING THE USE OF A RATIO UTILITY BILLING SYSTEM BY A E R 2 A n , LANDLORD TO ALLOCATE UTILITY CHARGES TO TENANTS .

NTo 2determine hwhether Sthe eGovernor crhas nsigned Mthe Billbill Summaryor etaken Aother (Note:action on it, please consult the legislative status sheet, the legislative history, or the Session Laws.

ThisHOUSE summaryBILL applies26-1013 toBY thisREPRESENTATIVE(S) billSirota as introduced and doesMabrey, notreflectanyamendmentsthatmaybesubsequentlyadopted.IfthisbillRicks, eBacon, nBrown, 2Clifford, passesEspenoza, thirdFroelich, readingGarcia, inNguyen, thePaschal, houseRutinel, ofStory, introduction,Zokaie, aLindsay, billCarter, summaryDuran, thatMcCluskie; m 2 applies to the reengrossed version of this bill will be available at E n 8 U U 1 http://leg.colorado.gov.) O i a H a r R e The bill authorizes landlords to usea ratio utilitybilling systemto r F allocate utility charges for a residential premises to individual tenants.

3alsoSENATOR(S)CutterandWeissman,GonzalesJ.,Jodeh,Kipp,Kolker, TheLindstedt, landlordMarchman, maySullivan, chargeWallace, tenantsColeman. a utility bill using a ratio utility billing system if the landlord meets certain requirements, such as:

dC !ONCERNINGTHEUSEOFARATIOUTILITYBILLINGSYSTEMBYALANDLORD TheTO aggregateALLOCATE amountUTILITY billedCHARGES toTO allTENANTS tenants. does not exceed d 6 the amount charged by the utility for service to the entire e 0 E a , S U 1 O n r Shading denotes HOUSE amendment.

Double underlining denotes SENATE amendment.

H d r Capital letters or bold & italic numbers indicate new material to be added to existing law.e e Dashes through the words or numbers indicate deletions from existing law.

d F residential premises;

! The landlord does not apply a fee or other charge to the tenant in addition to the actual charges from the utility provider;

! The utility costs for common areas or shared facilities are excluded from the charges to the tenant;

and ! The landlord clearlydiscloses the method of allocation for the dwelling unit in the tenant's rental agreement.

SECTIONSECTION1. 1.

InInColoradoRevisedStatutes,6-1-737,amend(4)(a); Colorado Revised Statutes, 6-1-737, amend (4)(a);

(a) Related to the provision of utilities that is above the amount charged by the utility provider for service to the tenant's dwelling unit, exceptFOR________ FEES,CHARGESCapital ,ORletters AMOUNTSor RELATEDbold TO& THEitalic PROVISIONnumbers OFindicate UTILITIESnew THATmaterial AREadded CHARGEDto TOexisting Alaw; TENANT in accordance with:

(I)dashes Sectionthrough 38-12-801words (3)(a)(VI);or numbers indicate deletions from existing law and such material is not part of the act.

(II)except SUBSECTIONFOR (4.5)OFFEES,CHARGES THIS,OR SECTION.AMOUNTS RELATED TO THE PROVISION OF UTILITIES THAT ARE CHARGED TO A TENANT in accordance with:

(4.5)(I) (a)Section EXCEPT38-12-801 AS(3)(a)(VI);R PROVIDED(II) IN SUBSECTION (4.5)(b)OF(4.5)OF THIS SECTION,THISSECTION. SECTION DOES NOT PROHIBIT A LANDLORD OR LANDLORD S AGENT FROM ALLOCATING UTILITY COSTS AMONG TENANTS OF THE SAME RESIDENTIAL PREMISES USING A RATIO UTILITY BILLING SYSTEM I:

(I)(4.5) THE(a) AGGREGATEEXCEPT AMOUNTAS BILLEDPROVIDED TOIN ALLSUBSECTION TENANTS(4.5)(b)OF OFTHIS THESECTION RESIDENTIALPREMISESDOES,THIS SECTION DOES NOT EXCEEDPROHIBIT THEA TOTALAMOUNTLANDLORD CHARGEDOR BYLANDLORD THES AGENT FROM ALLOCATING UTILITY PROVIDERCOSTS FORAMONG SERVICETENANTS TOOF THE ENTIRESAME RESIDENTIAL PREMISES;PREMISES USING A RATIO UTILITY BILLING SYSTEM IF:

-2-(I) 1013T (II) HE LANDLORDAGGREGATE ORAMOUNT LANDLORDBILLED STO AGENTALL DOESTENANTS NOT APPLY ANY MARKUP , SURCHARGE ,ADMINISTRATIVE FEE ,OR OTHER AMOUNT IN EXCESS OF THE ACTUALRESIDENTIALPREMISESDOESNOTEXCEEDTHETOTALAMOUNTCHARGEDBY CHARGESTHEUTILITYPROVIDERFORSERVICETOTHEENTIRERESIDENTIALPREMISES FROM THE UTILITY , EXCEPT AS OTHERWISE PERMITTED BY LAW ;

(III)(II) THE UTILITYLANDLORD COSTS FOR COMMON AREAS OR SHAREDLANDLORD FACILITIESS ATAGENT THEDOES RESIDENTIALNOT PREMISESAPPLY ARE EXCLUDED FROM ANY TENANTMARKUP ALLOCATION,SURCHARGE ;AND,ADMINISTRATIVEFEE (IV),OROTHERAMOUNTINEXCESS THEOF LANDLORD CLEARLY AND CONSPICUOUSLY DISCLOSES THE METHODACTUAL OFCHARGES ALLOCATIONFROM FOR THE DWELLINGUTILITY UNIT, INEXCEPT AAS TENANTOTHERWISE SPERMITTED RENTALBY AGREEMENTLAW OR; AN ADDENDUM TO THE TENANT 'S RENTAL AGREEMENT .

(b)(III) FORTEUTILITYCOSTSFORCOMMONAREASORSHAREDFACILITIES AT THE RESIDENTIAL PREMISES CONSTRUCTEDARE WITHEXCLUDED PERMITSFROM APPLIEDANY FORTENANT ONALLOCATION OR;AND AFTER(IV) ULYT 1,HELANDLORDCLEARLYANDCONSPICUOUSLYDISCLOSESTHE 2027GASMETHOD ,ELECTRIC,ANDOF WATERALLOCATION UTILITYFOR SERVICETHE DELIVEREDDWELLING TOUNIT IN A RESIDENTIALTENANT PREMISES'S MUSTRENTAL BEAGREEMENT METEREDEITHERDIRECTLYBYTHEUTILITYPROVIDERORBYASUBMETEROR AN ADDENDUM TO THE TENANT S RENTAL AGREEMENT .

(b) FOR RESIDENTIAL PREMISES CONSTRUCTED WITH PERMITS APPLIEDFORONORAFTER JULY 1,2027, GAS,ELECTRIC ANDWATERUTILITY SERVICEDELIVEREDTOARESIDENTIALPREMISESMUSTBEMETEREDEITHER DIRECTLY BY THE UTILITY PROVIDER OR BY A SUBMETER .

The general assembly finds, determines, and declares that this act is necessary for the immediate preservationofthepublicpeace,health,orsafetyorforappropriationsforpreservation of the public peace, health, or safety or for appropriations for PAGE 2-HOUSE BILL 26-1013 the support and maintenance of the departments of the state and state institutions.

-3-____________________________ 1013____________________________ Julie McCluskie James Rashad Coleman, Sr.

SPEAKER OF THE HOUSE PRESIDENT OF OF REPRESENTATIVES THE SENATE ____________________________ ____________________________ Vanessa Reilly Esther van Mourik CHIEF CLERK OF THE HOUSE SECRETARY OF OF REPRESENTATIVES THE SENATE APPROVED________________________________________ (Date and Time) _________________________________________ Jared S.

Polis GOVERNOR OF THE STATE OF COLORADO PAGE 3-HOUSE BILL 26-1013