HB26-1013 • 2026

Ratio Utility Billing Systems

The act authorizes landlords to use a ratio utility billing system to allocate utility charges for a residential premises to individual tenants. The landlord may charge tenants a utility bill using a

Energy Housing

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Rep. J. Mabrey, Rep. E. Sirota, Sen. L. Cutter, Sen. M. Weissman, Rep. N. Ricks, Rep. J. Bacon, Rep. K. Brown, Rep. M. Carter, Rep. C. Clifford, Rep. M. Duran, Rep. C. Espenoza, Rep. M. Froelich, Rep. L. García, Rep. M. Lindsay, Rep. J. McCluskie, Rep. K. Nguyen, Rep. A. Paschal, Rep. M. Rutinel, Rep. T. Story, Rep. Y. Zokaie, Sen. J. Coleman, Sen. J. Gonzales, Sen. I. Jodeh, Sen. C. Kipp, Sen. C. Kolker, Sen. W. Lindstedt, Sen. J. Marchman, Sen. T. Sullivan, Sen. K. Wallace
Last action: 2026-03-26
Official status: Governor Signed
Effective date: Not listed

Plain English Breakdown

The official source does not specify examples of formulas (like square footage) used in the Ratio Utility Billing System.

HB26-1013: Rules for Sharing Utility Bills in Rentals

This law allows landlords to split utility costs among tenants using a ratio system if they follow rules about total charges, fees, and disclosure.

What This Bill Does

Allows landlords to use a ratio system to charge individual tenants for shared utilities.
Requires the total amount billed to all tenants to not exceed what the landlord pays the utility company.
Prohibits landlords from adding extra fees or profit on top of actual utility costs.
Excludes common area and shared facility energy use from tenant charges.
Mandates that rental agreements clearly explain how utility costs are calculated for each unit.

Who It Names or Affects

Landlords who rent out residential properties
Tenants living in buildings with shared utilities

Terms To Know

Ratio Utility Billing System (RUBS): A method that splits the total utility bill among tenants based on a set formula.
Submeter: A separate meter used to measure how much water, gas, or electricity one specific unit uses.

Limits and Unknowns

The official source does not list a specific effective date for when the law begins.
New buildings with permits applied for on or after July 1, 2027, must use direct meters instead of ratio billing.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

L.004

SEN Business, Labor, & Technology

Passed [*]

Plain English: This amendment adds a new rule requiring that gas, electric, and water services be directly metered for residential buildings with permits applied for on or after July 1, 2027.

Residential properties built with permit applications filed on or after July 1, 2027, must have direct meters for gas, electricity, and water.

The amendment text only shows the new metering rule and formatting changes; it does not explain how this affects landlords who currently use ratio utility billing systems.
It is unclear from this short excerpt what specific penalties or exceptions exist if a building fails to meet the new metering requirement.

L.002

Second Reading

Lost [**]

Plain English: This amendment would change the law so that only government officials can enforce rules about utility billing, stopping tenants from suing landlords in court for breaking these specific rules.

Only the Attorney General or a District Attorney could take legal action if a landlord breaks this section of the bill.
Tenants would not be allowed to file their own lawsuits against landlords specifically for violating this part of the law.
Landlords cannot be sued by tenants in court groups (class actions) or asked to pay extra penalties just because they broke these specific rules.

This amendment was marked as 'Lost', meaning it did not pass and is not part of the final law.
The text does not explain how tenants can get their money back if a landlord charges them incorrectly, other than through existing lease agreements or other laws.

Bill History

2026-03-26 Governor
Governor Signed
2026-03-19 Governor
Sent to the Governor
2026-03-19 Senate
Signed by the President of the Senate
2026-03-18 House
Signed by the Speaker of the House
2026-03-12 House
House Considered Senate Amendments - Result was to Concur - Repass
2026-03-11 House
House Considered Senate Amendments - Result was to Laid Over Daily
2026-03-10 Senate
Senate Third Reading Passed - No Amendments
2026-03-09 Senate
Senate Second Reading Passed with Amendments - Committee
2026-03-05 Senate
Senate Committee on Business, Labor, & Technology Refer Amended - Consent Calendar to Senate Committee of the Whole
2026-02-19 Senate
Introduced In Senate - Assigned to Business, Labor, & Technology
2026-02-18 House
House Third Reading Passed - No Amendments
2026-02-17 House
House Second Reading Special Order - Passed - No Amendments
2026-02-06 House
House Second Reading Laid Over Daily - No Amendments
2026-02-04 House
House Committee on Business Affairs & Labor Refer Unamended to House Committee of the Whole
2026-01-14 House
Introduced In House - Assigned to Business Affairs & Labor

Official Summary Text

The act authorizes landlords to use a ratio utility billing system to allocate utility charges for a residential premises to individual tenants. The landlord may charge tenants a utility bill using a ratio utility billing system if the landlord meets certain requirements, such as:
The aggregate amount billed to all tenants does not exceed the amount charged by the utility provider for service to the entire residential premises;
The landlord does not apply a fee or other charge to the tenant in addition to the actual charges from the utility;
The utility costs for common areas or shared facilities are excluded from the charges to the tenant; and
The landlord clearly discloses the method of allocation for the dwelling unit in the tenant's rental agreement.
For residential premises constructed with permits applied for on or after July 1, 2027, utility service must be metered directly by the utility provider or by a submeter.
(Note: This summary applies to this bill as enacted.)