Senate Bill No. 194–Committee on Judiciary

 

February 24, 2003

____________

 

Referred to Committee on Judiciary

 

SUMMARY—Provides for allocation of utilities by landlord to tenant pursuant to ratio utility billing system. (BDR 10‑753)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: No.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to property; providing for the allocation of utility charges by a landlord to a tenant pursuant to a ratio utility billing system; providing for the enforcement of payment of such utility charges; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1  Section 1. Chapter 118A of NRS is hereby amended by

1-2  adding thereto a new section to read as follows:

1-3  1.  A rental agreement may provide for payment by the tenant

1-4  to the landlord, pursuant to a ratio utility billing system, for a

1-5  utility service that provides to the tenant and one or more other

1-6  tenants:

1-7  (a) Electricity;

1-8  (b) Telephone service;

1-9  (c) Cable television service;

1-10      (d) Gas;

1-11      (e) Water;

1-12      (f) Wastewater removal; or

1-13      (g) Solid waste removal.

1-14      2.  For each utility service described in subsection 1, the

1-15  landlord may allocate among the applicable tenants pursuant to a

1-16  ratio utility billing system:

2-1  (a) The charges incurred by the landlord for the utility service

2-2  for the dwelling units of the applicable tenants; and

2-3  (b) Not more than 90 percent of the charges incurred by the

2-4  landlord for the utility service for the common areas available to

2-5  the applicable tenants.

2-6  3.  If a rental agreement provides for payment by the tenant to

2-7  the landlord, pursuant to a ratio utility billing system, for a utility

2-8  service described in subsection 1:

2-9  (a) The landlord may charge the tenant:

2-10          (1) The portion of the charges for the utility service that are

2-11  allocated to the tenant pursuant to the ratio utility billing system;

2-12  and

2-13          (2) An administrative fee in an amount such that the total

2-14  of the administrative fees paid by the applicable tenants does not

2-15  exceed the actual administrative costs incurred by the landlord in

2-16  administering the ratio utility billing system for the applicable

2-17  tenants.

2-18      (b) The rental agreement must provide for the tenant to receive

2-19  a bill in advance of each such payment. The bill must indicate, for

2-20  each utility service for which the tenant is being charged pursuant

2-21  to a ratio utility billing system:

2-22          (1) The utility service;

2-23          (2) If the utility service is metered, the opening and closing

2-24  meter readings and the dates of the meter readings;

2-25          (3) The amount of the charges for the utility service that

2-26  are allocated to the tenant pursuant to the ratio utility billing

2-27  system; and

2-28          (4) The amount of any administrative fee charged to the

2-29  tenant.

2-30      (c) The landlord may charge the tenant a late fee of not more

2-31  than $10 if the tenant fails to make a payment when due. The due

2-32  date must not be less than 15 days after the date on which the bill

2-33  is mailed or delivered.

2-34      (d) The rental agreement must specify:

2-35          (1) Each utility service for which the landlord may charge

2-36  the tenant pursuant to a ratio utility billing system; and

2-37          (2) For each utility service that the landlord may charge the

2-38  tenant pursuant to a ratio utility billing system:

2-39             (I) A description of the ratio utility billing system that

2-40  will be used to allocate utility charges to the tenant; and

2-41             (II) Any administrative fee that will be charged to the

2-42  tenant for the administration of the ratio utility billing system.

2-43      (e) After the tenancy begins, the landlord may not begin to

2-44  charge a tenant pursuant to a ratio utility billing system for a

2-45  utility service for which the tenant had not previously been

3-1  charged pursuant to a ratio utility billing system unless the

3-2  landlord provides written notice to the tenant not less than 90 days

3-3  before the beginning of the first period of time during which usage

3-4  of the utility service will be billed to the tenant pursuant to the

3-5  ratio utility billing system.

3-6  4.  If a landlord fails to comply with the provisions of this

3-7  section, the tenant must first object in writing to the landlord

3-8  regarding the failure to comply. If the dispute is not resolved

3-9  within 30 days after the date the tenant delivers his written

3-10  objection to the landlord, the tenant may file a civil action in any

3-11  court of competent jurisdiction within this state to enforce the

3-12  provisions of this section.

3-13      5.  This section does not prohibit a landlord from entering

3-14  into an agreement with a tenant to pay for utility services in a

3-15  manner other than by using a ratio utility billing system,

3-16  including, without limitation, by:

3-17      (a) Submetering; or

3-18      (b) Providing for direct payment by the tenant to the provider

3-19  of the utility service.

3-20      6.  As used in this section:

3-21      (a) “Applicable tenant” means a tenant to whom is provided a

3-22  particular utility service described in subsection 1.

3-23      (b) “Ratio utility billing system” means a system for billing for

3-24  charges for a utility service in which:

3-25          (1) The provider of the utility service charges and collects

3-26  payment from a landlord for the utility service;

3-27          (2) The landlord allocates to each applicable tenant a share

3-28  of the charges for the utility service based upon:

3-29             (I) The number of tenants;

3-30             (II) The livable square footage of each dwelling unit;

3-31             (III) The number or types of dwelling units;

3-32             (IV) The number of water fixtures, if the utility service

3-33  is for water or wastewater removal;

3-34             (V) Submetered measures of hot water usage, if the

3-35  utility service is for water or wastewater removal; or

3-36             (VI) Any method or combination of methods that fairly

3-37  allocates among the tenants the charges of the utility provider;

3-38  and

3-39          (3) Pursuant to this section, the landlord charges and

3-40  collects from each applicable tenant the share of the charges

3-41  allocated to the tenant.

3-42      Sec. 2.  NRS 40.2512 is hereby amended to read as follows:

3-43      40.2512  1.  A tenant of real property or a mobile home for a

3-44  term less than life is guilty of an unlawful detainer when he

3-45  continues in possession, in person or by subtenant, after default in

4-1  the payment of any rent and after a notice in writing, requiring in the

4-2  alternative the payment of the rent or the surrender of the detained

4-3  premises, remains uncomplied with for a period of 5 days, or in the

4-4  case of a mobile home lot, 10 days after service thereof. The notice

4-5  may be served at any time after the rent becomes due.

4-6  2.  As used in this section, “rent” includes a charge payable

4-7  by a tenant to a landlord pursuant to section 1 of this act.

4-8  Sec. 3.  The provisions of this act apply to a rental agreement

4-9  entered into on or after October 1, 2003.

 

4-10  H