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08-29-16-SWS
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08-29-16-SWS
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RELEVANT LINKS: <br /> <br />League of Minnesota Cities Information Memo: 6/22/2016 <br />Securing Payment of Utility Charges Page 20 <br /> <br /> <br /> <br /> <br />See, Section XV, <br />Bankruptcy proceedings. <br />Once a consumer has filed for bankruptcy, a municipal utility cannot shut <br />off the service to collect or recover a claim against the debtor that arose <br />before the beginning of the bankruptcy case. After 20 days, a bankruptcy <br />court may let a city shut off utility service if the consumer does not provide <br />adequate assurance of payment. A municipal utility may not try to certify <br />previously unpaid charges once a consumer files for bankruptcy. <br /> <br />Minn. Stat. § 216B.0975. A municipal utility may not disconnect residential services in counties <br />where the National Weather Service has issued an excessive heat watch, <br />heat advisory, or excessive heat warning and those warnings or watches are <br />in effect. <br /> C. Due process <br />Freeman v. Hayek, 635 F. <br />Supp. 178 (D. Minn. 1986). <br />Smith v. City of Owatonna, <br />450 N.W.2d 309 (Minn. <br />1990). <br />Minnesota law now recognizes consumers of utility services are entitled to <br />the benefit of continued utility service. This does not mean service cannot <br />be shut off for nonpayment or delinquent bills certified to be collected with <br />taxes; it does mean consumers must first be given notice of the pending <br />action and a chance to protest it. Due process is a two-step course of <br />action. <br /> 1. Notice – and how to disagree <br />Memphis Light, Gas and <br />Water Division, et al., v. <br />Craft, 436 U.S. 1 (U.S. <br />1978). <br /> <br />First, a reasonable time before the shut-off or certification is scheduled to <br />occur, the utility must give a consumer information or notice about the <br />pending action, and, in the same notice, a consumer’s right to protest it. <br /> <br />See LMC sample water <br />shut-off notice. <br /> <br /> <br />See LMC sample notice sent <br />before certifying unpaid <br />charges to taxes. <br />The notice must clearly explain the process a customer can use to dispute a <br />bill, shut-off or certification, who to contact at specific phone numbers and <br />times, and how to object to the pending shut-off or certification. Some <br />cities send notice of pending city action by first class mail to the person’s <br />last known address. (There is a legal presumption that any item sent first <br />class is received in three days. Because certified mail is more expensive <br />and the recipient may refuse to accept it, first class mail is preferable to <br />certified mail). If there is no response, a red tag with all the pertinent <br />information is tied to the front door of the property as a warning of utility <br />shut-off. <br /> 2. Opportunity to discuss <br /> Second, due process requires that a municipal utility provide a consumer <br />with an opportunity to discuss the situation with the city council or a <br />person representing the city utility who has the authority to either correct a <br />charge or otherwise resolve the problem of non-payment.
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