(1) The Legislature finds that the conservation of water resources is vitally important to the future of our state, and that in order to enhance the conservation of water resources, it is necessary to grant specific authority for the provision of submetering of water and wastewater disposal service.

(2) As used in this section, the following words and phrases have the meanings ascribed in this subsection, unless the context clearly indicates otherwise:

(a) “Apartment house” means one or more buildings containing four (4) or more dwelling units that are occupied primarily for nontransient use, including a residential condominium whether rented or owner occupied, and if a dwelling unit is rented, having rental paid at intervals of one (1) month or longer.

(b) “Dwelling unit” means one or more rooms in an apartment house or condominium, suitable for occupancy as a residence, and containing kitchen and bathroom facilities, or a manufactured home in a manufactured home community.

(c) “Customer” means the individual, firm or corporation in whose name a master meter has been connected by a public utility.

(d) “Owner” means the legal titleholder of an apartment house or manufactured home community and any individual, firm or corporation that purports to be the landlord of tenants in the apartment house or manufactured home community.

(e) “Tenant” means a person 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.

(f) “Manufactured home community” means a property on which spaces are rented for the occupancy of: (i) manufactured homes for nontransient residential use and for which rental is paid at intervals of one (1) month or longer; or (ii) recreational vehicles for nontransient residential use for a time period of three (3) months or longer.

(g) “Submetering” means the use of a metering device by a customer who receives water and wastewater service from a public utility, which metering device measures water supplied to a tenant for the purpose of the customer’s charging the tenant of a dwelling unit separately for water and wastewater usage.

(3)

(a) An apartment house owner, manufactured home community owner or condominium manager may provide for submetering of each dwelling unit or rental unit for the measurement of the quantity of water consumed by the occupants of the unit. If submetering is utilized, tenants may be charged separately for water and wastewater services on a pass through allocated basis for charges incurred by the customer. The charges for a tenant may not exceed the tenant’s pro rata share of all water and wastewater services used by all of the tenants in that apartment house, manufactured home community or condominium.

(b) Any apartment house owner, manufactured home community owner or condominium manager utilizing submetering pursuant to this section shall disclose the submetering to each tenant and obtain from the tenant an acknowledgment of the submetering in a written document.

(c) Submeters installed pursuant to this section must meet the American Water Works Association standards for accuracy.

(d) In rendering charges to tenants pursuant to this section, the customer shall provide:

(i) Beginning and ending meter reads;

(ii) A statement that the bill is not from the public utility; and

(iii) A telephone number for tenant inquiries on the bill.

(e) Water and wastewater services utilized by the tenant may not be disconnected for nonpayment of submetered bills.