The Regulatory Shift: The 2026 Utility Billing Compliance Guide
Key Takeaways
- Over 30 active or recently enacted bills across 18 states are targeting utility billing, fee transparency, and tenant protections in 2026.
- Colorado, Connecticut, North Dakota, and Washington already have laws on the books — compliance is not optional if you operate there.
- Ohio HB 173 would put submetering companies under PUCO oversight, with rate caps tied to the standard service offer.
- Fee transparency, billing itemization, rate caps, and submetering oversight are the new baseline — not fringe ideas anymore.
- The cost of compliance is always lower than the cost of catching up — operators investing in transparent billing now spend less time reacting later.
We're tracking over 30 active or recently enacted bills across 18 states and the District of Columbia — all targeting some aspect of utility billing, fee transparency, or tenant protections in rental housing. This is the most significant wave of utility billing regulation in at least a decade.
This guide covers every bill, sorted by status: what's already law, what's advancing, and what's still in committee. Bookmark it — we'll keep it updated as bills move.
Already Law
These provisions are enacted and enforceable. If you operate in these states, compliance isn't optional.
Colorado HB 25-1090
Effective: January 1, 2026 What it does: Bans drip pricing. Requires landlords to advertise a single, all-inclusive rent amount. Utility pass-throughs cannot exceed what the utility bills. Third-party service markups capped at 2% or $10. Source: leg.colorado.gov
Connecticut Public Act 25-44
Effective: October 1, 2025 (rental provisions) What it does: Requires all periodic or recurring fees to be included in any rental advertisement. Violations carry civil penalties of one month's rent plus attorney's fees. Source: LegiScan
North Dakota SB 2385
Effective: April 23, 2025 What it does: Requires direct water metering in mobile home parks. Establishes state receivership authority, annual ownership reporting, and tenant eviction protections. Source: ndlegis.gov
Washington HB 1217
Effective: May 7, 2025 What it does: Caps rent increases at 7% + CPI or 10% (whichever is less). 5% cap for manufactured home lots. 90 days' notice required. Relevant to RUBS because advocacy groups argue RUBS circumvent these caps. Source: leg.wa.gov
Passed Legislature — Awaiting Signature or Enactment
Virginia SB 294
What it does: Requires landlords using submetering, energy allocation, or RUBS to maintain detailed records of how charges are calculated. Records must be available to tenants at no cost. Source: lis.virginia.gov
Virginia HB 374
What it does: Requires itemized charges on the first page of manufactured home lot rental agreements. Prohibits rent increases when unresolved code violations exist. Registration requirements begin within 180 days of July 1, 2026. Source: LegiScan
New York S4336
What it does: Requires gas and electric utilities to provide prospective tenants with average monthly billing history upon request. Source: nysenate.gov
Virginia operators: SB 294 and HB 374 have both cleared the legislature. Start preparing your record-keeping and disclosure processes now — don't wait for the effective date.
Active — Advancing Through Legislature
Ohio HB 173
Status: Passed House 74-23. In Senate Public Utilities Committee. What it does: Places submetering companies under PUCO oversight. Caps rates at the standard service offer. Requires registration, itemized bills, and creates a tenant complaint process. Source: LegiScan
Pennsylvania HB 1250
Status: Passed House 144-59. In Senate Urban Affairs & Housing Committee. What it does: Ties manufactured home lot rent increases to CPI. Requires 90-day notice. Prohibits mid-lease increases. Guarantees resident association rights. Source: palegis.us
New York S363A
Status: Passed Senate 45-14. On floor calendar for third reading. What it does: Junk Fee Prevention Act. Requires total price disclosure inclusive of all mandatory fees. Source: nysenate.gov
California SB 681
Status: Passed Senate. Stalled in Assembly. What it does: Caps tenant fees at 5% of monthly rent. Prohibits processing fees, pet fees, parking fees. Late fee cap of 2% (only after 7 days). Source: leginfo.legislature.ca.gov
Maryland SB 130 / HB 220
Status: Hearings held. Moving through General Assembly. What it does: Authorizes water submetering with guardrails — no charges above actual utility cost, leak detection required, unpaid water ≠ unpaid rent for evictions. Source: LegiScan
Maryland HB 0080
Status: Active in legislature. What it does: Requires landlords (4+ units) to disclose all fees before lease signing. Applies to leases from October 1, 2026. Tenant claims available from February 1, 2027. Source: LegiScan
Massachusetts HB 3545
Status: In House Ways and Means Committee. What it does: Removes the July 1, 1997 date restriction on energy monitoring systems, allowing modern submetering technology in rental housing. Source: malegislature.gov
DC B26-0126
Status: Committee mark-up March 30, 2026. What it does: Prohibits charging tenants for common-area utilities. Requires 45-day notice of unpaid balances after move-out. 60-day notice before sending debts to collections. Source: LegiScan
Ready to take control of your utilities?
Talk to the TeamIn Committee — Watching Closely
New York S8735
Status: In Committee on Energy and Telecommunications. What it does: Billing Transparency Act. Requires itemized breakdowns, accessible websites explaining charges, and quarterly reporting to PSC. Source: nysenate.gov
New York S8915
Status: In Committee on Energy and Telecommunications. What it does: Caps residential rate increases at 2.5% annually. Creates Utility Accountability and Audit Unit. Bars recovery of executive bonuses through rates. Source: nysenate.gov
New York S9080
Status: In Committee. What it does: Prohibits utility shutoffs for elderly customers making good-faith payments of 5-15% of monthly income. Source: nysenate.gov
Minnesota SF 3221
Status: In Senate Energy, Utilities, Environment, and Climate Committee. What it does: Requires 31-day minimum payment window for submetered and apportioned utility bills. Source: revisor.mn.gov
Massachusetts SB 984
Status: In Senate Ways and Means. What it does: Regulates and limits junk fees in rental housing. Limits upfront charges. Addresses broker fee loopholes. Source: malegislature.gov
New Jersey A3403
Status: In Assembly Housing Committee. What it does: Caps recurring fee increases at 10% over any 12-month period for existing tenants.
Continued to 2027 or Inactive
Virginia SB 349
Status: Continued to 2027 session. What it does: Restricts pre-tenancy fees. Reduces max security deposit to one month's rent. Requires upfront fee disclosure. Source: lis.virginia.gov
Virginia HB 1409
Status: Continued to 2027 session. What it does: Prohibits charging tenants for landlord maintenance obligations. Bars utility markups above actual cost. Source: lis.virginia.gov
California AB 1248
Status: Died on inactive status, February 2, 2026. What it does: Would have required single upfront rent amount. Prohibited RUBS except water/sewer. Source: leginfo.legislature.ca.gov
Wisconsin AB 1143
Status: Died at session end, March 23, 2026. What it does: Would have required utility charge disclosure in leases and 14-day billing detail requests. Source: docs.legis.wisconsin.gov
Also on the Radar
Seattle RUBS Ban
Status: No ordinance enacted. Mayoral survey and advocacy campaign underway. What's happening: The Renters' Commission urged a ban on RUBS in January 2026. The Mayor is surveying renters with RUBS as a likely early target.
Texas PUC Rule Review
Status: Water/sewer review begins September 1, 2026. What's happening: The PUC is reviewing all commission rules for applicability. Submetering rules under Chapter 24 and Chapter 25.142 are in scope.
Miami-Dade Re-metering Ordinance
Status: Existing law. Ongoing compliance. What it does: Property owners must register annually to resell water via submeters. Using a billing vendor does not transfer compliance responsibility. Source: miamidade.gov
Valencia Rios v. Belvedere NRDE, LLC (E.D. Va.)
Status: Class settlement proposed March 2026. What it does: Federal class action challenging mandatory pest control and community fees. Outcome could reshape mandatory fee structures in Virginia residential leases.
The Bottom Line
The volume alone tells the story: 18 states, 30+ bills, all pushing in the same direction. Fee transparency, billing itemization, rate caps, submetering oversight, and tenant payment protections aren't fringe ideas anymore — they're the new baseline.
Operators who invest in transparent, compliant utility billing platforms now will spend less time reacting to legislation later. The cost of compliance is always lower than the cost of catching up. If you're ready to get ahead of the regulatory curve, talk to the team about how VITALITY keeps operators compliant across every state they operate in.
This guide reflects legislative status as of March 27, 2026. Sources linked throughout. For real-time tracking, refer to individual state legislature websites and LegiScan for multi-state monitoring.
Related Articles
Utility Billing 101: Rate Schedules and Compliance — Getting It Right
Utility rate schedules are complex, they change frequently, and billing residents at the wrong rate is both a revenue leak and a compliance risk. Here's how to read them, apply them, and stay on the right side of regulators.
Read moreUtility Billing 101: When Should You Estimate Utility Bills?
Estimated billing is sometimes necessary, but it's never ideal. Here's when estimation makes sense, how to do it accurately, and the compliance risks of getting it wrong.
Read moreHow to Implement RUBS in a Rent Control Area
Implementing RUBS in a rent-controlled property requires a rent reduction that offsets the new utility charge. Here's how the formula works, what the law requires, and how to do it without violating tenant protections.
Read moreWritten by
Clayton Erekson
Chief Executive Officer
Co-founder of Vitality. On a mission to redefine the future of utility management.