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 exact effective date is not provided in the official summary, only that it has been enacted by the Governor on March 26, 2026.

Ratio Utility Billing Systems

This act allows landlords to use a ratio utility billing system to allocate utility charges for residential premises among tenants, with specific requirements they must follow.

What This Bill Does

Allows landlords to use a ratio utility billing system to split utility costs among tenants if certain conditions are met.
Requires the total amount charged to all tenants not to exceed what the landlord pays to the utility company.
Prohibits landlords from adding extra fees on top of the actual utility charges.
Excludes common area or shared facility costs when calculating tenant bills.

Who It Names or Affects

Landlords who want to use a ratio utility billing system for their tenants in residential properties.
Tenants living in rental properties where this system is used.

Terms To Know

ratio utility billing system: A method that divides the total cost of utilities among tenants based on how much each tenant uses or occupies a space.
residential premises: A building or part of a building where people live, like an apartment complex or house.

Limits and Unknowns

The act only applies to residential properties and not commercial ones.
For new buildings with permits applied for after July 1, 2027, utilities must be metered directly by the utility company or a submeter.

Amendments

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

L.004

SEN Business, Labor, & Technology

Passed [*]

Plain English: The amendment changes the way certain sections of the bill are numbered and adds a new requirement for residential premises built after July 1, 2027.

Changes the numbering of subsections in the original bill from (4.5), (a), (b), (c), and (d) to (4.5)(a), (I), (II), (III), and (IV).
Adds a new requirement that for residential premises built with permits applied for on or after July 1, 2027, gas, electric, and water utilities must be metered either directly by the utility provider or through submeters.

The amendment text does not provide details about how the new requirement will be enforced or what happens if it is not followed.

L.002

Second Reading

Lost [**]

Plain English: The amendment adds new rules about how the law will be enforced and what rights tenants have if there are violations.

Adds a new section (8) that limits who can enforce the ratio utility billing system rules to only the Attorney General or District Attorneys.
Specifies that this section does not give private individuals the right to sue for alleged violations of the ratio utility billing system rules.

The amendment text is technical and may be hard to understand without legal expertise, but it clearly limits enforcement actions and private rights of action.
It's unclear how this will affect tenants' ability to seek remedies under their 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.)