Relating to residential tenant responsibility for utility charges, providing civil penalties, and including applicability provisions

This bill relates to the responsibility for payment of utility charges incurred by tenants of residential units and provides enforcement mechanisms and penalties. The bill prohibits a city or city utility from assessing, certifying, or collecting unpaid utility charges as a lien against real property when the utility service was provided to a tenant who, under a rental agreement, was responsible for payment of the utility charges under the bill. The bill provides that when a utility service account is established in the name of a tenant of a residential unit, or when a rental agreement assigns responsibility for utility payments to the tenant, the landlord is not liable for unpaid utility charges incurred by the tenant. The bill prohibits a utility company from engaging in specified practices to collect a tenant’s unpaid utility charges, including billing or charging the landlord, transferring unpaid balances to a landlord’s account, conditioning utility service to the premises on payment by the landlord, filing or threatening to file a lien or other encumbrance against the landlord’s real property, or using indirect practices to compel payment by the landlord. The bill requires utilities to maintain separate billing and collection accounts for tenants who are responsible for payment of utility charges and requires utility companies to pursue collection solely against the tenant. The bill establishes civil penalties for violations in an amount of not less than $500 and not more than $5,000 per violation, with each billing statement, collection notice, lien filing, certification, or other collection attempt constituting a separate violation. The bill authorizes a landlord aggrieved by a violation to bring a civil action to recover actual damages, statutory damages of $1,000 per violation, injunctive or declaratory relief, and reasonable attorney fees and court costs. The bill requires a utility company that files or records a lien, assessment, or certification in violation of the bill to release the lien or assessment within 10 days of receipt of written notice from the landlord. Failure to timely release the lien or assessment constitutes a separate violation.16 (consumer fraud) and to seek civil penalties, restitution, and injunctive relief. The bill applies to utility billing, collection activity, lien filings, certifications, and enforcement actions occurring on or after the effective date of the bill, regardless of when the rental agreement was executed.