Concerning the billing of utility service for tenant utility bills.
HB26-1284 would create a new part of Colorado law governing how landlords, unit owners, and common-interest-community associations may bill tenants for utility service. The bill allows utility charges to be passed through to tenants using either individual submeters or a ratio utility billing system (RUBS), and it defines the terms and parties covered, including landlords, unit owners, associations, tenants, third-party billing agents, and the utility services subject to the bill. It also states that new residential construction applying for initial water service on or after January 1, 2027, must install submeters for each dwelling unit and bill water service based on actual submeter readings.
For existing properties and for utility services other than water, the bill permits submetering or RUBS, but imposes disclosure and billing rules. Landlords and similar parties would have to tell tenants in writing how utility charges are calculated, provide formulas and certain invoice information on request, and limit estimated submeter readings to no more than six consecutive months. If a RUBS method is used, the bill requires at least a 10% deduction from the total utility bill to account for common-area usage before allocating costs to tenants, and it limits monthly utility bills to specified charges only.
The bill would also create enforcement remedies for tenants. A tenant who is overbilled or otherwise harmed by a violation could bring a civil action and recover actual damages, additional damages up to 25% of the overage, and attorney fees and court costs. The bill further prohibits waiver of these protections in rental agreements, association declarations, or rules, making conflicting provisions void and unenforceable.
The stated policy goal is to promote conservation and transparency, especially for water use in multiunit housing, while protecting tenants from unclear or inflated utility billing. The bill would affect landlord-tenant practices, condominium and common-interest-community operations, and third-party billing companies that manage utility billing and collections. Its effective date is tied to the referendum process, and it would apply to conduct and rental agreements entered into or renewed on or after January 1, 2027.
The overall sentiment reflected in the bill text is supportive of tenant protections and utility billing transparency, with the legislative declaration emphasizing conservation and clarity. However, the committee history shows the bill was postponed indefinitely in the House Transportation, Housing & Local Government Committee, indicating that it did not advance and likely faced sufficient concern or opposition to halt it at that stage. No vote details or transcript discussion were provided, so specific arguments for or against the bill are not available from the record supplied.
The bill would add a new statutory framework in Title 38 governing tenant utility billing and submetering, directly affecting landlords, unit owners, associations, and third-party billing agents. It would require submetering for water in newly constructed residential premises beginning with initial water service applications on or after January 1, 2027, and would regulate how utility charges may be allocated, disclosed, and challenged in court. It also interacts with existing landlord-tenant fee provisions by referencing the authorized administrative fee cap in section 38-12-801 and by incorporating definitions from Colorado’s landlord-tenant and common-interest-community statutes.
The bill’s stated purpose and structure suggest a generally pro-tenant, pro-transparency, and conservation-oriented approach, particularly by requiring individual water submeters in new construction and limiting billing practices that could obscure actual utility use. At the same time, the fact that it was postponed indefinitely in committee indicates that it did not receive enough support to move forward, suggesting unresolved concerns among committee members or stakeholders. Because no hearing transcript or vote tally is available, the precise balance of support and opposition cannot be determined from the provided record.
The main points of contention likely center on the cost and feasibility of requiring submeters in new residential construction, the administrative burden on landlords and associations, and the restrictions placed on ratio utility billing systems. Tenant advocates would likely support the bill’s disclosure requirements, limits on estimated billing, and private right of action, while landlords, developers, associations, and third-party billing agents may object to the mandatory water submetering requirement, the 10% common-area deduction, and the potential exposure to damages and attorney fees. The bill’s indefinite postponement suggests that at least some committee members or stakeholders were not persuaded that the proposed regulatory framework was workable or necessary.