House File 269 - Introduced HOUSE FILE 269 BY ISENHART A BILL FOR An Act relating to utility cost disclosures in connection 1 with rental properties, providing penalties, and including 2 applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1365YH (1) 88 gh/rn
H.F. 269 Section 1. Section 476.56, Code 2019, is amended to read as 1 follows: 2 476.56 Energy costs provided. 3 A gas or electric public utility shall provide, upon the 4 request of a person who states in writing that the person is an 5 owner of real property, or an interested prospective purchaser 6 or renter of the property, which is or has been receiving gas 7 or electric service from the public utility, the annual gas 8 or electric energy costs for the property. A gas or electric 9 public utility and, notwithstanding section 476.1, subsection 10 4, a public utility furnishing water or sewer service, shall 11 comply with the utility service cost disclosure provisions of 12 section 562A.13A with regard to existing or prospective renters 13 of real property. 14 Sec. 2. NEW SECTION . 562A.13A Utility service cost 15 disclosure statements —— penalty. 16 1. In addition to the required disclosure provisions 17 of section 562A.13, the landlord or a person authorized to 18 enter into a rental agreement on behalf of the landlord shall 19 disclose to a prospective tenant in writing at or before the 20 commencement of the tenancy, and to an existing tenant at any 21 point during the tenancy, the gas, electric, water, or sewer 22 utility service costs for a dwelling unit. Utility service 23 costs shall be provided with respect to a dwelling unit for the 24 preceding twelve-month period based upon information obtained 25 at no charge by the landlord or person authorized to enter 26 into the rental agreement from the utility furnishing utility 27 service, pursuant to an energy cost disclosure statement 28 developed pursuant to subsection 2. In the event that 29 utility service has been provided for a period of less than 30 one year, cost information shall be provided for the period 31 beginning when utility service commenced. In the event of new 32 construction, utility service cost information from similar 33 dwelling units in similar properties may be obtained in writing 34 from a utility and supplied to a prospective tenant, or in 35 -1- LSB 1365YH (1) 88 gh/rn 1/ 4
H.F. 269 the alternative, a landlord may obtain a written estimate of 1 anticipated utility service costs from a utility or an energy 2 consultant. 3 2. The office of consumer advocate shall develop the 4 format of an energy cost disclosure statement for utilization 5 by landlords in complying with this section. The format 6 developed shall include space for the disclosure of the 7 annual utility service costs, and shall also include space 8 for a representative list of energy efficiency standards 9 incorporating features or upgrades that a dwelling unit or 10 the building of which it is a part might conceivably exhibit 11 or offer. The list of energy efficiency standards shall 12 be developed by the office of the consumer advocate, in 13 consultation with state and federal energy efficiency agencies 14 and experts, and shall be accompanied by a space for notation 15 by the landlord indicating whether or not the unit or building 16 meets or exceeds each standard. 17 3. A landlord who fails to comply with the requirements of 18 this section upon receipt of a written notice by a tenant or 19 a prospective tenant that utility service costs have not been 20 disclosed shall have seven days from the date of receipt of the 21 notice to provide the required utility service cost disclosure 22 statement. A landlord who fails to provide the disclosure 23 statement within the seven-day period or who enters into a 24 rental agreement with a tenant without first disclosing utility 25 service costs on a disclosure statement or who misrepresents 26 utility service costs on a disclosure statement shall be 27 subject to a civil penalty of five hundred dollars. Such 28 penalty shall be imposed by the office of consumer advocate or 29 pursuant to a civil proceeding regarding recovery of damages 30 by a tenant for nondisclosure, and shall be remitted to the 31 division of community action agencies for deposit into the 32 energy crisis fund created in section 216A.102. 33 Sec. 3. APPLICABILITY. This Act applies to rental 34 agreements entered into on or after January 1, 2020. 35 -2- LSB 1365YH (1) 88 gh/rn 2/ 4
H.F. 269 EXPLANATION 1 The inclusion of this explanation does not constitute agreement with 2 the explanation’s substance by the members of the general assembly. 3 This bill relates to utility cost disclosure requirements in 4 connection with rental properties. 5 The bill modifies provisions of Code section 476.56, 6 relating to the provision of energy costs by a gas or electric 7 utility upon request with regard to the purchase or rental 8 of real property, to provide that the Code section refers to 9 ownership or prospective ownership of real property, not the 10 rental or prospective rental of the property. 11 The bill establishes new Code section 562A.13A within the 12 uniform residential landlord and tenant law provisions of Code 13 chapter 562A requiring that a landlord or a person authorized 14 to enter into a rental agreement on behalf of the landlord 15 shall disclose to a prospective tenant in writing at or before 16 the commencement of the tenancy, or to an existing tenant at 17 any point during the tenancy, the gas, electric, water, or 18 sewer utility service costs for a dwelling unit. The bill 19 specifies that the utility service costs shall be provided with 20 respect to a dwelling unit for the preceding 12-month period, 21 or for the period beginning when utility service commenced 22 if less than one year, based upon information obtained at no 23 charge by the landlord or person authorized to enter into 24 the rental agreement from the utility furnishing utility 25 service. In the event of new construction, the bill requires 26 utility service cost information from similar dwelling units 27 in similar properties to be obtained in writing from a utility 28 and supplied to a prospective tenant, or in the alternative, a 29 landlord may obtain a written estimate of anticipated utility 30 service costs from a utility or an energy consultant. 31 The bill directs the office of consumer advocate to develop 32 an energy cost disclosure statement for utilization by 33 landlords, containing space for the disclosure of the utility 34 service costs and also including space for a representative 35 -3- LSB 1365YH (1) 88 gh/rn 3/ 4
H.F. 269 list of energy efficiency standards incorporating features or 1 upgrades that a dwelling unit or the building of which it is 2 a part might conceivably exhibit or offer. The bill provides 3 that the list of energy efficiency standards shall be developed 4 by the office in consultation with state and federal energy 5 efficiency agencies and experts and shall be accompanied by a 6 space for the landlord to indicate whether or not the unit or 7 building meets or exceeds each standard. 8 The bill provides that a landlord who fails to supply the 9 required utility service cost disclosure statement upon receipt 10 of a written notice by a tenant or a prospective tenant shall 11 have seven days from the date of receipt of the notice to 12 provide the required disclosure statement. If a landlord 13 fails to provide the disclosure statement within the seven-day 14 period, or enters into a rental agreement with a tenant without 15 first disclosing utility service costs or misrepresents utility 16 service costs on a disclosure statement, the bill provides that 17 the landlord shall be subject to a civil penalty of $500. The 18 penalty shall be imposed by the office of consumer advocate or 19 pursuant to a civil proceeding regarding recovery of damages 20 by a tenant for nondisclosure, and shall be remitted to the 21 division of community action agencies for deposit into the 22 energy crisis fund created in Code section 216A.102. 23 The bill applies to rental agreements entered into on or 24 after January 1, 2020. 25 -4- LSB 1365YH (1) 88 gh/rn 4/ 4