ASSEMBLY, No. 2910

STATE OF NEW JERSEY

218th LEGISLATURE

 

INTRODUCED FEBRUARY 1, 2018

 


 

Sponsored by:

Assemblyman  JOHN F. MCKEON

District 27 (Essex and Morris)

Assemblyman  EDWARD H. THOMSON

District 30 (Monmouth and Ocean)

 

 

 

 

SYNOPSIS

     Permits water supply service and sewerage service sub-metering in multi-family dwellings to promote water conservation.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act concerning the sub-metering of water consumption in multiple dwellings, and supplementing Title 55 of the Revised Statutes.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    This act shall be known and may be cited as the “Water Conservation and Metering Act.”

 

     2.    The Legislature finds and declares that the conservation of water resources is vitally important to the future of our State.

     The Legislature further finds and declares that in order to enhance the conservation of water resources, it is necessary to grant specific authority to apartment owners for the sub-metering of water supply service and sewerage service provided to tenants of multi-family dwellings throughout the State.

     The Legislature therefore determines that it is appropriate for the Department of Community Affairs, which has extensive regulatory authority over multi-family housing, to adopt, in consultation with the Department of Environmental Protection, rules and regulations governing the installation and use of sub-metering as a water conservation method.

 

     3.    As used in this act:

     "Dwelling unit" means an individual residential unit in a multi-family dwelling.

     "Local government unit" means (1) a State authority, district water supply commission, county, municipality, municipal, county or regional utilities authority, municipal water district, joint meeting or any other political subdivision of the State authorized pursuant to law to operate or maintain a public water supply system or to construct, rehabilitate, operate or maintain water supply facilities or otherwise provide water for human consumption, or (2) a State authority, county, municipality, municipal, county or regional sewerage or utility authority, municipal sewerage district, joint meeting, improvement authority, or any other political subdivision of the State authorized to construct, operate and maintain a wastewater treatment system.

     "Multi-family dwelling" means any building or structure or complex of buildings or structures in which three or more dwelling units are rented or leased or offered for rental or lease for residential purposes except hotels, motels or other guesthouses serving transient or seasonal guests as those terms are defined in section 3 of the "Hotel and Multiple Dwelling Law," P.L.1967, c.76 (C.55:13A-3).

     "Owner" means the legal titleholder of a multi-family dwelling, including any individual, corporation, company, partnership, firm, association or other business concern that purports to be the landlord of tenants in the multi-family dwelling.

     "Sub-metering" means the use of a metering device or metering devices by an owner that receives water supply service or sewerage service from a local government unit or water purveyor, which metering device measures water supplied to a tenant for the purpose of measuring the tenant's actual consumption and the charging of the tenant of a dwelling unit separately for water supply service and sewerage service.

     "Tenant" means a person or persons who is entitled to occupy a dwelling unit to the exclusion of others and who is obligated to pay for the occupancy under a written or oral rental agreement.

     "Water purveyor" means any investor‑owned water company or small water company that owns or operates a public water system.

 

     4.    a.  Any owner may provide for sub-metering of each dwelling unit measuring the total or partial quantity of water consumed by the tenants. Tenants may be billed for water supply service or sewerage service, or both, provided that the sub-meter or sub-meters installed for each dwelling unit shall measure the total or partial use of the water consumed in the dwelling unit, which amount shall be multiplied by the applicable water supply service charges or sewerage service charges, or a calculation based on those rates, as charged by the local government unit or water purveyor, as appropriate, servicing the multi-family dwelling.  In no event shall the tenants be charged more in total than the owner's total water supply service charges or sewerage service charges by the local government unit or water purveyor, as appropriate.

     In no event shall a tenant be charged more in total than that tenant’s measured total water supply service or sewerage service, or both, as appropriate, to the dwelling unit as measured by the metering device or devices in that tenant’s dwelling unit.

     b.    Any multi-family dwelling owner utilizing the authority conferred in subsection a. of this section shall disclose in a clear and conspicuous manner in the lease such sub-metering to each tenant, and shall include a description in plain language of the billing method used.

     c.     All sub-meters installed pursuant to this section shall meet accuracy and testing standards of the American Society of Mechanical Engineers, the American National Standards Institute, the American Water Works Association, the National Institute of Standards and Technology, or the International Association of Plumbing and Mechanical Officials, as defined in rules and regulations adopted by the Department of Community Affairs pursuant to section 6 of this act.

     d.    Bills sent to tenants shall include the following items:

     (1) opening and closing measurements;

     (2) description of charges and billing method; and

     (3) identification of the billing company, including a toll-free number and website for tenants to use for questions regarding the bill.

     e.     The cost of the installation of the sub-meter shall not be passed on to the tenant.

     f.     Water supply service charges or sewerage service charges relating to sub-metering shall be exempted from any local rent control ordinance governing allowable increases.

     g.    An owner shall respond to any tenant’s report of a leak in a plumbing line or fixture on the tenant’s side of the sub-meter in a dwelling unit within 24 hours after the tenant reporting, verbally and in writing, the suspected leak to the owner.  If the owner does not respond as required pursuant to this subsection, and does not substantially complete the necessary repair work within one week, the tenant shall receive a credit from the owner in an amount that is calculated as follows:  the bill for water supply service or sewerage service, or both, as appropriate, in the monthly billing cycle when the leak was identified less the lowest water bill from the three prior months.

     h.    A dispute regarding the amount of water supply service charges or sewerage service charges or billing method relating to sub-metering shall be resolved as follows:

     (1) The tenant shall notify the billing company of the nature and reason for the dispute by calling the toll-free number shown on the bill, or in writing to the billing company, within 30 days after receiving the bill.  The tenant shall have a good faith basis for any such dispute;

     (2) Within 15 days after receiving notice of a billing dispute, the billing company shall contact the tenant to discuss the dispute, and the billing company and the tenant shall determine the amount of disputed and undisputed charges.  The tenant shall pay all undisputed charges within 30 days after reaching agreement with the billing company regarding the amount;

     (3) The billing company shall investigate the matter and report the results of investigation to the owner of the multi-family dwelling and the tenant in writing, within 30 days following completion of the investigation;

     (4) If a resolution is not reached following the investigation and report by the billing company, the tenant and the billing company shall continue to discuss in good faith any remaining disputed amount and attempt to reach an agreement on the amount due, if any, within 60 days after the billing company’s receipt of notice of a billing dispute; and

     (5) At the conclusion of the 60-day extended billing dispute period pursuant to paragraph (4) of this subsection, the billing company shall itemize, in writing, any total charges outstanding, and provide the tenant with 30 additional days to pay the remaining charges.  At the conclusion of this 30-day period, if the remaining charges have not been paid, the billing company shall forward the itemized list of charges to the owner of the multi-family dwelling.  After receipt of the list from the billing company, the owner may choose to exercise available legal remedies to collect the amount due, provided however, that nothing in this subsection shall be construed to limit a tenant’s right to present any legal or equitable defense, and for the court to consider such a defense before issuing a judgment.

     i.     If a tenant requests that the sub-meter or sub-meters installed in the dwelling unit be checked for accuracy, the tenant shall be entitled to one meter test, free of charge, every two years.  Following this free meter test, the tenant shall be charged no more than the actual cost incurred by the billing company for any additional tests requested.  The billing company shall furnish both the owner of the multi-family dwelling and the tenant with a written report of the meter test results.

     Each sub-meter must read within the tolerances allowed under the accuracy standards set forth in subsection c. of this section, or the sub-meter shall be replaced free of charge, and the tenant shall receive a credit in an amount that is calculated as follows:  the bill for water supply service or sewerage service, or both, as appropriate, for the monthly billing cycle in which the sub-meter identified did not meet the tolerances set forth in subsection c. of this section, less the lowest bill from the three prior months.

     If a tenant continues to have a good faith basis to contest the accuracy of the sub-meter after testing by the billing company pursuant to this subsection, the tenant may file a complaint, in writing, with the Department of Community Affairs, Bureau of Housing Inspection.  The tenant shall include all available documents and relevant information in filing a complaint.

     j.     Sub-metering technology may be installed at any time during the tenancy, and sub-metering billing shall be permitted immediately upon the date of enactment of this act, except as follows:

     (1) Billing for a dwelling unit occupied by a tenant in a multi-family dwelling that is not subject to rent control or that is subject to rent control whenever the ordinance allows for water supply service charges or sewerage service charges, or both, as appropriate, to be passed through to the tenant shall not commence until the renewal date of the lease, and provided that statements for six  billing cycles shall have been sent to the tenant by the owner, or the owner's billing company, without charge for six consecutive months, informing the tenant what the tenant’s water supply service charges or sewerage service charges and administrative fees would have been had the tenant been receiving actual bills; or

     (2) Billing for a dwelling unit occupied by a tenant in a multi-family dwelling that is subject to rent control shall not commence until the renewal date of the lease, and provided that statements for six billing cycles shall have been sent to the tenant by the owner, or the owner's billing company, without charge for six consecutive months, informing the tenant what the tenant’s water supply service charges or sewerage service charges and administrative fees would have been had the tenant been receiving actual bills.  At the initial lease renewal when sub-metering is initiated, the owner of each multi-family dwelling subject to rent control shall give each tenant a one-time rent reduction, pursuant to a formula adopted by the Department of Community Affairs in the rules and regulations required by section 6 of this act, for the term of the initial lease renewal when sub-metering is initiated, equal to the anticipated monthly charge for the water supply service charges or sewerage service charges, or both, as appropriate.  After the reduction in rent required pursuant to this paragraph, the owner shall be entitled to the normal rent increase allowed by the applicable rent control ordinance provided that the rent increase is based on the amount of the reduced rent as provided by this paragraph.

     k.    An owner of a multi-family dwelling constructed prior to January 1, 1994 who uses sub-metering shall implement the following water savings program in each sub-metered dwelling unit:

     (1) before sub-metering billing commences at the multi-family dwelling:

     (a) the owner’s property management staff shall conduct a visual inspection for leaking fixtures on the tenant’s side of the sub-meter in each dwelling unit at the multi-family dwelling; and

     (b) the owner shall install or have previously installed in each shower within each sub-metered dwelling unit a low-flow shower fixture that does not exceed 2.5 gallons per minute; and

     (2) within two years after the date that sub-metering billing commences at the multi-family dwelling the owner shall install or have previously installed in each bathroom within each sub-metered dwelling unit a toilet that does not exceed 3.5 gallons per flush.

 

     5.    An owner who, prior to the date of enactment of this act, uses sub-metering and bills tenants subject to a written agreement with the tenant that recognizes the owner’s right to bill the tenant for water supply service charges or sewerage service charges, or both, is permitted to continue sub-metering and billing tenants without complying with the requirements set forth in subsections  j. and  k. of section 4 of this act, provided that the owner otherwise complies with the provisions of this act.

 

     6.    The Department of Community Affairs, in consultation with the Department of Environmental Protection and the Division of Consumer Affairs in the Department of Law and Public Safety, shall adopt, within 120 days after the effective date of this act and pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B‑1 et seq.), rules and regulations as are necessary to effectuate the purposes of this act.

     These rules and regulations shall: include a formula as required pursuant to paragraph (2) of subsection  j. of section 4 of this act providing a rent reduction, for the term of the initial lease renewal when sub-metering is initiated, equal to the anticipated monthly charge for the water supply service charges or sewerage service charges, or both, as appropriate; require periodic inspections of sub-meters installed pursuant to this act to ensure that the sub-meters accurately measure the water consumed in the dwelling unit; and provide a process for a tenant to appeal water supply service charges or sewerage service charges, or both, as appropriate, in the case of overcharges by the owner.

 

     7.    This act shall take effect immediately.

 

 

STATEMENT

 

     This bill permits the sub-metering of water consumption in multi-family dwellings to promote water conservation.  The bill permits the owner of any multi-family dwelling with three or more leased dwelling units to provide for sub-metering of each dwelling unit for the total or partial quantity of water consumed by the tenants.

     Tenants may be billed for water supply service or sewerage service, or both.  The bill requires that the sub-meter or sub-meters installed for each dwelling unit measure the total or partial use of the water consumed in the dwelling unit, which amount would be multiplied by the applicable water supply service charges or sewerage service charges, or a calculation based on those rates, as charged by the utility or utilities servicing the multi-family dwelling.  In no event would the tenants be charged more in total than the owner's total water supply service charges or sewerage service charges by the local government unit or water purveyor, as appropriate.  In addition, the bill provides that in no event would a tenant be charged more in total than that tenant’s measured total water service to the dwelling unit as measured by the metering device or devices in that tenant’s dwelling unit.

     Any multi-family dwelling owner installing a sub-metering system must disclose this information in the lease to each tenant, and must include a description of the billing method used.  The cost of the installation of the sub-meter cannot be passed on to the tenant.

     Bills sent to tenants must include the following items: (1) the opening and closing measurements; (2) a description of charges and billing method; and (3) the identification of the billing company, including a toll-free number and website for tenants to use for billing questions.

     The bill requires an owner to respond to any tenant’s report of a leak in a plumbing line or fixture on the tenant’s side of the sub-meter in a dwelling unit within 24 hours after the tenant reporting, verbally and in writing, the suspected leak to the owner.  If the owner does not respond within this time period, and does not substantially complete the necessary repair work within one week, the bill provides that the tenant shall receive a credit from the owner in an amount equal to the bill for water supply service or sewerage service, or both, as appropriate, in the monthly billing cycle when the leak was identified less the lowest water bill from the three prior months.

     The bill provides that all water supply service charges or sewerage service charges relating to sub-metering would be exempted from any local rent control ordinance governing allowable increases.

     The bill includes, in subsection h. of section 4 of the bill, a process for the resolution of billing disputes.  The bill also includes, in subsection i of section 4 of the bill, meter testing procedures and provides for a credit to be issued to a tenant if a meter is not within the accepted accuracy standards as set forth in the bill.

     Sub-metering technology may be installed at any time during the tenancy, and sub-metering billing shall be permitted immediately upon the date of enactment of this bill into law, except as follows:

     (1)  Billing for a dwelling unit occupied by a tenant in a multi-family dwelling that is not subject to rent control or that is subject to rent control whenever the ordinance allows for water supply service charges or sewerage service charges, or both, as appropriate, to be “passed through” to the tenant shall not commence until the renewal date of the lease, and provided that statements for six billing cycles shall have been sent to the tenant by the owner, or the owner's billing company, without charge for six consecutive months, informing the tenant what the water supply service charges or sewerage service charges and administrative fees would have been had the tenant been receiving actual bills; or

     (2) Billing for a dwelling unit occupied by a tenant in a multi-family dwelling that is subject to rent control shall not commence until the renewal date of the lease, and provided that statements for six billing cycles shall have been sent to the tenant by the owner, or the owner's billing company, without charge for six consecutive months, informing the tenant what the water supply service charges or sewerage service charges and administrative fees would have been had the tenant been receiving actual bills.  At the initial lease renewal when sub-metering is initiated, the owner of each multi-family dwelling subject to rent control shall give each tenant a one-time rent reduction pursuant to a formula required by the bill that provides tenants with a rent reduction, for the term of the initial lease when sub-metering is initiated, equal to the anticipated monthly charge for the water supply service charges or sewerage service charges, or both, as appropriate.  After this reduction in rent, the owner shall be entitled to the normal rent increase allowed by the applicable rent control ordinance, provided that the rent increase is based on the amount of the reduced rent.

     The bill requires an owner of a multi-family dwelling constructed prior to January 1, 1994 that uses sub-metering to implement a water savings program in each sub-metered dwelling unit. The water savings program requires that before sub-metering billing commences at the multi-family dwelling:  (1) the owner’s property management staff conduct a visual inspection for leaking fixtures on the tenant’s side of the sub-meter in each dwelling unit at the multi-family dwelling; and (2) the owner install or have previously installed in each shower within each sub-metered dwelling unit a low-flow shower fixture that does not exceed 2.5 gallons per minute.  In addition, the water savings program requires, within two years after the date that sub-metering billing commences at the multi-family dwelling, that the owner install or have previously installed in each bathroom within each sub-metered dwelling unit a toilet that does not exceed 3.5 gallons per flush.

     The bill allows an owner who, prior to the date of enactment of this bill into law, uses sub-metering and bills tenants subject to a written agreement with the tenant that recognizes the owner’s right to bill the tenant for water supply service or sewerage service, or both, to continue sub-metering and billing tenants without complying with the requirements of subsections j. and k. of section 4 of the bill.

     Lastly, the bill requires the Department of Community Affairs (DCA), in consultation with the Department of Environmental Protection (DEP) and the Division of Consumer Affairs in the Department of Law and Public Safety, to adopt rules and regulations to implement the provisions of the bill.  The bill requires these rules and regulations to:  (1) include a formula as required pursuant to paragraph (2) of subsection j. of section 4 of the bill providing a rent reduction, for the term of the initial lease renewal when sub-metering is initiated, equal to the anticipated monthly charge for the water supply service charges or sewerage service charges, or both, as appropriate; (2) require periodic inspections of sub-meters installed pursuant to this act to ensure that the sub-meters accurately measure the water consumed in the dwelling unit; and (3) provide a process for a tenant to appeal water supply service charges or sewerage service charges, or both, as appropriate, in the case of overcharges by the owner.