441.650. Master-metered multitenant dwelling, defined--heat-related utility service, delinquency, maintenance of service, how--receivership, when, procedure.

MISSOURI STATUTES AND CODES

441.650. Master-metered multitenant dwelling, defined--heat-related utility service, delinquency, maintenance of service, how--receivership, when, procedure.

Master-metered multitenant dwelling, defined--heat-related utilityservice, delinquency, maintenance of service, how--receivership,when, procedure.

441.650. 1. For purposes of this section:

(1) A "delinquency" exists when the owner, or his agent, ofa master-metered multitenant dwelling fails to pay forheat-related utility services for such dwelling for such a periodof time that the utility has lawfully provided to the owner orresidents of the dwelling a written notice that heat-relatedutility service is subject to termination, and while the causefor such notice still exists;

(2) "Electrical corporation" refers to an electricalcorporation as defined in section 386.020, RSMo;

(3) "Gas corporation" refers to a gas corporation as definedin section 386.020, RSMo;

(4) "Heat-related utility service" refers to serviceprovided by a gas corporation or an electrical corporation whichis necessary to the proper function and operation of thespace-heating equipment in a dwelling;

(5) "Master-metered multitenant dwelling" refers to aresidential dwelling containing two or more separate residentialunits, where heat-related utility services are measured by acommon meter in a single building, or heat-related utilityservices are measured by individual meters with the ownerresponsible for payment for such utility services; and

(6) "Owner" refers to the record owner or owners of thepremises, an assignee of rents, lessee, agent, or any otherperson responsible for payment for heat-related utility serviceprovided to the premises.

2. At least five days prior to termination of heat-relatedutility services to a master-metered multitenant dwelling, thegas corporation or electrical corporation shall notify thetenants of that dwelling of the existence of the delinquency, andof the tenants' right to initiate the receivership procedure byposting written notice in common areas of that dwelling in alocation and manner likely to provide actual notice to suchtenants.

3. Upon a delinquency at a master-metered multitenantdwelling which receives heat-related utility service from a gascorporation or electrical corporation, the gas corporation orelectrical corporation or any tenant of the master-meteredmultitenant building may petition the associate circuit court ofthe county in which the dwelling is located for the appointmentof a receiver of rents for use and occupancy of the affecteddwelling. If the petition is filed by any tenant, such tenantshall immediately advise the gas corporation or electricalcorporation in writing of the filing of such petition. Upon thefiling of a petition in an associate circuit court stating thatthe heat-related utility service to a master-metered multitenantdwelling is delinquent, the court shall act as follows:

(1) Within two days of the filing of the petition, the courtshall issue an order to show cause why a receiver should not beappointed, which order shall be served upon the owner and uponthe gas corporation or electrical corporation involved in thedelinquency in a manner reasonably calculated to give notice ofthe initiation of the receivership procedure;

(2) Within four days after the issuance of the order to showcause, the court shall hold a hearing and issue an order grantingor denying the petition;

(3) Upon a finding that a delinquency exists, and that therentals at the master-metered multitenant dwelling are likely tobe sufficient to cover the items specified in paragraphs (a) and(b) of subdivision (4) of subsection 5 of this section, the courtshall appoint a receiver in accordance with sections 515.240 to515.260, RSMo, who shall be a person at least twenty-one years ofage and who shall not be the owner of the dwelling which is thesubject of the petition for receivership.

4. Gas corporations and electrical corporations shall notterminate heat-related utility service to a master-meteredmultitenant dwelling due to nonpayment for utility service if apetition for a receivership related to its service filed pursuantto this section is before an associate circuit court and, if thepetition has been filed by a tenant, the gas corporation orelectrical corporation has received at least twenty-four hoursprior written notice of the filing of such petition, or if areceivership related to its service is in existence pursuant tothis section.

5. Upon appointment of a receiver pursuant to this section,the receiver shall:

(1) Notify the tenants of the master-metered multitenantdwelling, by posting written notices in common areas of thedwelling, of the following information:

(a) The fact that the court has appointed a receiver;

(b) The identity and address of the receiver;

(d) The manner by which rental payments shall be made;

(2) Provide written notice to the gas corporation orelectrical corporation which provides the service involved in thereceivership of the following information:

(a) The fact that the court has appointed a receiver;

(b) The identity and address of the receiver; and

(3) Diligently seek to collect all rents or payments for useor occupancy of the master-metered multitenant dwelling from thetenants of the dwelling subject to the receivership;

(4) Promptly disburse proceeds from the receivershipaccording to the following priority:

(a) First, the receiver shall pay all reasonable costs ofthe receivership as approved by the court;

(b) Second, the receiver shall pay for the heat-relatedutility service or services provided on or after the creation ofthe receivership;

(c) Third, amounts remaining after consideration ofparagraphs (a) and (b) of this subdivision shall be utilized toreimburse the petitioner(s) for receivership for reasonableattorneys' fees and other reasonable costs and expenses incurredby such petitioner(s);

(d) Fourth, if any amount is owed by the owner for theheat-related utility service or services related to the creationof the receivership for service provided prior to the creation ofthe receivership, then one-half of any amount remaining after thepayment of amounts under paragraphs (a), (b), and (c) of thissubdivision shall be paid toward such amounts; and

(e) Fifth, amounts remaining after compliance withparagraphs (a), (b), (c), and (d) of this subdivision shall bepaid to the owner.

6. The owner of a master-metered multitenant dwelling forwhich a receiver has been appointed under this section shall beliable to the receiver for all reasonable costs incurred by thereceiver, as determined by the court to be due the receiver.

7. A receivership established under this section shall beterminated if any of the following circumstances occur:

(1) During any three-month period the proceeds paid from thereceivership do not cover the items described in paragraphs (a)and (b) of subdivision (4) of subsection 5 of this section forthe most similar corresponding three-month period;

(2) The gas corporation or electrical corporation, at ahearing, shows that the reasonably expected proceeds from areceivership will not cover the reasonably expected costs of thereceivership plus the reasonably expected costs of continuing toprovide heat-related utility service;

(3) Less than seventy-five percent of the tenants pay theirrents for two consecutive rent payment periods; or

(4) All outstanding amounts owed the gas corporation orelectrical corporation have been paid.Upon the occurrence of the termination of a receivership pursuantto this subsection, the receiver shall make a complete accountingto the court, including a written statement of the reason for thetermination of the receivership.

8. A gas corporation or electrical corporation that providesheat-related utility service which is the cause of a receivershipcreated under this section, or the owner of the master-meteredmultitenant dwelling * which is subject to such receivership, may,at any time:

(1) Petition the court for termination of the receivershipon the grounds that the reasonably expected proceeds of thereceivership will not cover the reasonably expected costs of thereceivership plus the reasonably expected cost of continuing toprovide heat-related utility service; or

(2) Petition the court for a change of receiver due to thefailure of the existing receiver to promptly pay petitionerappropriate amounts or for failing to properly carry out otherrequired duties.A gas corporation or electrical corporation that provides suchheat-related utility service may also petition the court fortermination of the receivership on any of the grounds set forthin subsection 7 of this section. The court shall hold a hearingand render a decision on any petition filed under this subsectionwithin thirty days of the receipt of the petition and shallprovide reasonable written notice of such a hearing by mailingnotice of the hearing at least six days prior to the hearing toany gas corporation, electrical corporation, owner and tenantinvolved in the receivership or by any other method designed toprovide written notice to such persons and corporations at leastfour days prior to the hearing.

9. Any owner who collects, or attempts to collect, any rentor payment for use or occupancy from any tenant of amaster-metered multitenant dwelling which is subject to an orderappointing a receiver pursuant to this section shall be found,after due notice and hearing, to be in contempt of court.

10. Except for the limitations on termination of serviceexpressly stated in subsection 4 of this section, this sectionshall in no way limit the rights of gas corporations andelectrical corporations to recover amounts lawfully owed to them.