Sec. 2.
(a) A
tenant's sub-bill shall be calculated in the following manner:
(1) For water service, as follows:
(A) If the utility charges the landlord for
usage measured by a master meter, upon receipt of a utility's water bill, the
landlord shall divide the total net charges for water service, plus applicable
tax, by the total amount of water master metered to obtain an average cost per
unit volume. The average water cost per unit volume shall then be multiplied by
the estimated or actual unit volume consumed by each dwelling unit. In no event
shall a landlord charge its tenants more than the total net charge for water
service.
(B) If the utility charges
the landlord for usage that is not measured by a master meter, the landlord
shall employ an appropriate method to determine what portion of the total net
charge for water service should be attributed to each tenant. "An appropriate
method" means a method that reasonably allocates to each tenant a portion of
the total net charge for water service less the landlord's own use. Reasonable
allocations may be based on a charge per dwelling unit, actual volume of water
distributed to each tenant, or estimated volume of water distributed to each
tenant. In no event shall the landlord charge its tenants in total more than
the total net charge for water service.
(2) For sewage disposal service, the landlord
shall employ an appropriate method to determine what portion of the total net
charge for sewage disposal service should be attributed to each tenant.
(A) If the utility charges a flat sewage
disposal service rate, "an appropriate method" means a method that reasonably
allocates to each tenant a portion of the total net charge for sewage disposal
service less the landlord's own use. Reasonable allocations may be based on a
charge per dwelling unit or a charge based on estimated sewer flow.
(B) If the utility charges a sewage disposal
service rate based on water usage, "an appropriate method" means a method that
reasonably allocates to each tenant a portion of the total net charge for
sewage disposal service less the landlord's own use. Reasonable allocations may
use the same percentage for sewage disposal service as calculated for water
billing, using the actual volume of water distributed to each tenant or
estimated volume of water distributed to each tenant. In no event shall the
landlord charge its tenants in total more than the total net charge either for
water or sewage disposal service.
(b) A landlord may not charge a tenant for
any water or sewage disposal service reasonably attributed to the landlord's
usage.
(c) In addition to the
charges in subsection (a), a landlord may charge a tenant only the fees
permitted by IC
8-1-2-1.2.
(d) A landlord satisfies the provisions in
subsections (a) through (c) and the provisions of IC
8-1-2-1.2
if the landlord charges a flat rental fee, assessed at regular intervals, such
as monthly or annually, that includes water and sewage disposal service,
provided the following:
(1) The lease clearly
indicates that water or sewage disposal, or both, service are included in the
lease.
(2) The rent amount does not
vary throughout the lease period based on water or sewage disposal
usage.
(e) Nothing
herein should be construed to eliminate or diminish any contractual right a
tenant may have with respect to the provision of water or sewage disposal
service.
