HF3951

Purpose

Make rules for how landlords bill tenants for utilities when a unit uses submetered or apportioned utilities, and to clarify receipts and payment methods for rent. The bill also adds tenant protections related to digital payment platforms to prevent evictions or penalties when a platform isn’t working.

Main provisions

• Submetered utility final billing (added to 216B.023)

  • If the landlord has not received the actual utility bill by the date the tenant moves out, the landlord may issue an estimated final utility bill.
  • The estimate must be based on the immediately preceding billing period for the submetered utility and prorated for the number of days from the end of that period to the move-out date.
  • No extra fees may be added, except that an administrative billing charge (authorized under subdivision 4) and a late payment charge (authorized under subdivision 6) may be included if they relate to charges from the immediately preceding billing period.

• Apportioned utility final billing (added to 504B.216)

  • Same approach as submetered utilities: if the landlord hasn’t received the actual bill by move-out, the landlord may issue an estimated final bill based on the prior period, prorated for the move-out interval.
  • No extra fees beyond an administrative charge (subdivision 8) and a late payment charge (subdivision 9) tied to the previous period.

• Receipt for rent paid in cash (added to 504B.118)

  • Landlords must provide a written receipt for cash rent paid immediately if paid in person, or within three business days if paid in cash but not in person.

• Digital payment platforms (added to 504B.118)

  • If a landlord requires or allows rent payments via a digital platform, the landlord must offer an alternative payment method if the platform isn’t functioning.
  • No fee may be charged for using the alternative method.
  • If the digital platform is not functioning, the landlord must restore access or offer an alternative as soon as practicable.
  • Landlords may not take adverse actions (e.g., evictions or late fees) because rent wasn’t paid due to the platform or the alternative method not working. Tenants have an affirmative defense to eviction for nonpayment in such cases, and the court can dismiss the eviction and may award tenants attorney fees and other relief.

• Definition of digital payment platform

  • The term refers to an electronic app or system controlled by the landlord or a vendor contracted by the landlord that lets users conduct financial transactions.

Significant changes to existing law

• Introduces a formal process for estimated final utility billing when actual bills aren’t received by move-out for both submetered and apportioned utilities.
• Adds requirements and protections around cash rent receipts.
• Establishes tenant protections and remedies related to digital payment platforms, including a guaranteed alternative for non-working platforms and an affirmative defense against eviction.

Practical impact

• Tenants moving out with submetered or apportioned utilities may receive an estimated final bill, with limits on extra charges.
• Rent payments made in cash must be documented with receipts.
• Tenants using digital payment platforms gain protections: if the platform fails, they can switch to an alternative without penalties, and they may have a defense against eviction.

Relevant terms

• submetered utility service
• final billing
• apportioned utility service
• estimated final utility bill
• preceding billing period
• prorated
• administrative billing charge
• late payment charge
• eviction
• receipt for rent paid in cash
• rent receipt
• cash payment
• digital payment platform
• alternative payment method
• non-functioning platform
• affirmative defense
• attorney fees
• equitable relief
• landlord
• tenant