Senate File 2

                                       SENATE FILE       
                                       BY  ANGELO


    Passed Senate, Date               Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act requiring municipal water utilities to refund deposits to
  2    account holders under certain circumstances.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 1419XS 80
  5 av/sh/8

PAG LIN

  1  1    Section 1.  Section 384.84, Code 2003, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  3A.  A deposit obtained by a city utility
  1  4 or enterprise from a customer to guarantee payment for water
  1  5 service shall be refunded to the customer after twelve
  1  6 consecutive months of prompt payment, which may include eleven
  1  7 timely payments and one automatic forgiveness of late payment,
  1  8 unless the city utility or enterprise has evidence to indicate
  1  9 that the deposit is necessary to ensure payment of bills for
  1 10 service or unless the city utility or enterprise is entitled
  1 11 to require a new or additional deposit.  Each customer account
  1 12 shall be reviewed by the city utility or enterprise after
  1 13 twelve months of service and annually thereafter to determine
  1 14 if a customer is entitled to a refund of the deposit or if a
  1 15 new or additional deposit is required.  The deposit shall be
  1 16 refunded to the person who made the deposit, less any unpaid
  1 17 water utility bill of the customer, upon termination of the
  1 18 customer's service.
  1 19                           EXPLANATION
  1 20    This bill requires city utilities and enterprises to refund
  1 21 deposits obtained from customers to guarantee payment for
  1 22 water service after 12 months of prompt payment, which may
  1 23 include one automatic forgiveness of late payment, unless the
  1 24 city utility or enterprise has evidence to indicate that the
  1 25 deposit is necessary to ensure the payment of bills for
  1 26 service or unless a new or additional deposit is required.
  1 27 The bill provides that each customer account shall be reviewed
  1 28 by the city utility or enterprise after 12 months of service
  1 29 and every year thereafter to determine if the customer is
  1 30 entitled to a refund of the deposit or whether a new or
  1 31 additional deposit is required.  If not previously refunded,
  1 32 the deposit must be refunded upon termination of the
  1 33 customer's service, less any unpaid water utility bill.
  1 34 LSB 1419XS 80
  1 35 av/sh/8