HBA-BSM C.S.H.B. 2404 77(R)    BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 2404
By: Lewis, Ron
Natural Resources
4/22/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Under current law, apartments can include water charges in the rent, and
allocate water bills by dividing the charges among tenants by the number of
occupants and/or square footage.  Submetering water service in multifamily
housing reduces water consumption between approximately 10 and 30 percent.
If the apartment management is responsible for paying the water bills they
have an incentive to replace old wasteful fixtures with high efficiency
fixtures.  However, tenants often do not have the finances to upgrade these
fixtures or the incentive to do so as they do not own the property.  The
Texas Natural Resource Conservation Commission has revised rules governing
submetering, but does not have the legislative authority to enforce its
proposals.  

C.S.H.B. 2404 requires an owner or manager of a new apartment house,
manufactured home rental community, multiple use facility, or condominium
to provide for the submetering of each unit and sets forth provisions
regarding the installation of plumbing fixtures that meet water savings
performance standards.  
RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Texas Natural Resource Conservation
Commission in SECTION 3 of this bill. 

ANALYSIS

C.S.H.B. 2404 amends the Water Code to require a manager of a condominium
or owner of an apartment house, manufactured home rental community, or
multiple use facility on which construction begins after January 1, 2003 to
provide for the measurement of the quantity of water, if any, consumed by
the occupants of each unit through the installation of submeters owned by
the property owner or manager or individual meters owned by the retail
public utility.  The bill requires an owner of an apartment house on which
construction begins after January 1, 2003, and which provides government
assisted or subsidized rental housing to low or very low income residents
to install a plumbing system in the apartment house that is compatible with
the installation of submeters for the measurement of the quantity of water,
if any, consumed by the occupant of each unit.  The bill requires a retail
public utility on request by the property owner or manager to install
individual meters owned by the utility in an apartment house, manufactured
home rental community, multiple use facility, or condominium on which
construction begins after January 1, 2003, unless the retail public utility
determines that installation of meters is not feasible, in which case the
property owner or manager is required to install a plumbing system that is
compatible with the installation of submeters or individual meters.  The
bill authorizes a retail public utility to charge reasonable costs to
install individual meters.  

The bill prohibits an owner of an apartment house, manufactured home rental
community, or multiple use facility or a manager of a condominium from
changing from submetered billing to allocated billing unless the executive
director of the Texas Natural Resource Conservation Commission (TNRCC)
approves of the change in writing after a demonstration of good cause,
including meter reading or billing problems that could not feasibly be
corrected or equipment failures and the property owner meets rental
agreement requirements established by TNRCC. 
 
The bill provides that after January 1, 2003, an owner of an apartment
house, manufactured home rental community, or multiple use facility or a
manager of a condominium may implement a program to bill tenants for
submetered or allocated water service if the owner or manager meets
certain water saving performance standards, performs a water leak audit of
each unit and each common area, and repairs any leaks found.  

The bill requires an owner of an apartment house, manufactured home rental
community, or multiple use facility or  a manager of a condominium to
remove any toilets that exceed a maximum flow of 3.5 gallons per flushing
and install 1.6- gallon toilets that meet specified standards not later
than the first anniversary of the date the owner or manager begins to bill
for submetered or allocated water service.  The provisions regarding
plumbing fixture standards, audit, and installation do not apply to a
manufactured home rental community owner who does not own the manufactured
homes located in the community. 

TNRCC is required to enact rules to implement these provisions, not later
than September 1, 2002. 

EFFECTIVE DATE

September 1, 2001.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 2404 differs from the original bill by requiring an owner of an
apartment house, manufactured home rental community, multiple use facility,
or manager of a condominium  on which construction begins on or after
January 1, 2003, to provide submetering of each unit, whereas  the original
bill required the Texas Natural Resource Conservation Commission (TNRCC) to
adopt rules to require an owner of an apartment house on which construction
begins on or after January 1, 2003, a manufactured home rental community
owner, and a multiple use facility owner to submeter each unit.  The
substitute differs from the original by adding provisions that require a
retail public utility to install meters owned by the utility on request,
and by prohibiting an owner or manager from changing from submetered
billing to allocated billing unless approved to do so by the executive
director of the TNRCC.  C.S.H.B. 2404 also differs from the original bill
by providing that before an owner of an apartment house, manufactured home
rental community, or multiple use facility, or a manager of a condominium
may implement a program to bill tenants for submetered or allocated water,
they must first meet specified standards rather than requiring TNRCC by
rule to require the installation of certain plumbing fixtures.  The
substitute also sets forth provisions regarding the installation of 1.6
gallon toilets.  The substitute changes the effective date of the Act to
September 1, 2001.