Updated August 18, 2008
HB 2123
CLAIRIFICATION OF RV PARK UTILITY CHARGES LEGISLATION
In 2008, a law was passed relating to RV park utility charges. Questions have arisen from this legislation.
While most park owners operate their parks with good management, there are always some who do not.
HB 2123 is a new law that gives guidelines for how parks can charge their tenant electricity, gas, water, and sewer.
The “Intent of the Bill” was for Park Models that had a lease over 179 days and were covered under the Long Term RV Space Act.
This history of the bill is: The parties involved had a bill that everyone was happy with its content. Environmental people got involved and stated that this bill was stepping all over Federal law. Chris Mays of the Corporation commission stated that this bill was creating mini utility companies. The commission would not be able to police so many small utility companies. The bill was then turned over to a Study Committee. HB 2123 was the result of the Study Committee.
A GREAT EFFORT WAS MADE BY ALL PARTIES TO CRAFT A JUST AND FAIR BILL. The bill can be read on this web site under the Long Term RV Rental Space ACT, section 33-2107. Currently we are watching to see how park management is implementing the bill and what difficulties both management and tenants are having. Representation of all parties; owners, utility companies, legislators, and AAMHO are involved.
There are two ways to charge for utilities; sub-metering or ratio billing. All parks do not have meters. The committee did not want to mandate the installation of meters due to the financial burden that would be placed on both owner and tenant. Because of this the “ratio billing choice” was added to this bill.
IF A PARK HAS METERS, THEY MUST USE THE SUB-METERING SYSTEM. The Sub-metering billing system includes providing a separate meter for each use, and itemized charge for open/close meter readings with each date and charge for the single family residential rate of the utility or provider. Each bill shall show the computation of the charge generally in accordance with the serving utility company billing format for individual service. Under the serving utility format the park lists all the charges passed on such as connection, and administrative fees.
IF A PARK DOES NOT HAVE METERS OR THE UTILITY CANNOT BE METERED: The Ratio utility billing systems require the display of the current utility rates and fees imposed on the landlord in a conspicuous location of the premises. The rental agreement shall disclose the specific amount of administrative fees associated with the system. The allocation of charges shall be made on the basis of rented spaces.
Memo to all Park Model owners: RV parks have a wide variety of base rates charged to their park for a variety of reasons. While we work our way through getting this bill implemented, please talk professionally with your managers. Try to get your park to post their rate. Keep a good paper trail. Be polite at all times. This is a complex issue.
Jean Creagan
Legislative Director of AAMHO
LEGISLATIVE REPORT
AAMHO's legislative efforts this year was successful. Your board of directors (with the aid of our exception lobbyists) did an outstatnding job. Our most important bill that was passed this year was a culmination of two years of efforts.
HB2123 is a bill directly connected to the R.V. and Park Model parks that are charging their customers utility rates which were higher than the utility rates charged intheir area. Obviously, this was not true of all parks, but there were far to many to ignore.
The Arizona Corporation Commission directed that a hearing be held to do a state wide study of rates. This study was to be completed before the end of 2007. HB 2123 is the result of this hearing committee. It has been signed by the Govenor.
HB2123 can be viewed and printed from the Arizona Secretary of States website. Please click on the following link then you will click on Chapter 96.
http://www.azsos.gov/public_services/Chapter_Laws/2008/48th_Legislature_2nd_Regular_Session/Report_by_Chapter_NumberPage15.html
Please Come back to this AAMHO Legislative page often as updates will be posted accordingly.
A special Thanks to all the members that supported our efforts with telephone calls and e-mail messages was greatly appreciated.
Jean Creagan, AAMHO Legislative Director
Updated 03-13-2009 sw |
