House File 192 - Introduced HOUSE FILE BY HUSER Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to notice and collection of delinquent charges by 2 certain city utilities or city enterprises. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1053HH 82 5 sc/gg/14 PAG LIN 1 1 Section 1. Section 384.84, subsection 2, paragraphs c and 1 2 d, Code 2007, are amended to read as follows: 1 3 c. A city utility or enterprise service to a property or 1 4 premises shall not be discontinued unless prior written notice 1 5 is sent, by ordinary mail, to the account holderby ordinary 1 6 mailin whose name the delinquent rates or charges were 1 7 incurred, informing the account holder of the nature of the 1 8 delinquency and affording the account holder the opportunity 1 9 for a hearing prior to discontinuance of service. If the 1 10 account holder is a tenant, and if the owner or landlord of 1 11 the property has made a written request for notice, the notice 1 12 shall also be given to the owner or landlord. 1 13 d. (1) If a delinquent amount is owed by an account 1 14 holder for a utility service associated with a prior property 1 15 or premises, a city utility, city enterprise, or combined city 1 16 enterprise may withhold service from the same account holder 1 17 at any new property or premises until such time as the account 1 18 holder pays the delinquent amount owing on the account 1 19 associated with the prior property or premises. A city 1 20 utility, city enterprise, or combined city enterprise shall 1 21 not withhold service from, or discontinue service to, a 1 22 subsequent owner of the prior property or premises unless such 1 23 delinquent amount has been certified in a timely manner to the 1 24 county treasurer as provided in subsection 3, paragraph "a", 1 25 subparagraph (1). 1 26 (2) Delinquent amounts that have not been certified in a 1 27 timely manner to the county treasurer as provided in 1 28 subsection 3, paragraph "a", subparagraph (2), are not 1 29 collectible against any subsequent owner of the property or 1 30 premises. 1 31 Sec. 2. Section 384.84, subsection 3, paragraphs a, b, and 1 32 c, Code 2007, are amended to read as follows: 1 33 a. (1) Except as provided in paragraph "d", all rates or 1 34 charges for the services of sewer systems, storm water 1 35 drainage systems, sewage treatment, solid waste collection, 2 1 water, solid waste disposal, or any of these services, if not 2 2 paid as provided by ordinance of the council or resolution of 2 3 the trustees, are a lien upon the property or premises served 2 4 by any of these services upon certification to the county 2 5 treasurer that the rates or charges are due. 2 6 (2) If the delinquent rates or charges were incurred prior 2 7 to a transfer of the property or premises and such 2 8 delinquencies were not certified to the county treasurer prior 2 9 to the date of transfer, the delinquent rates or charges are 2 10 not eligible to be certified to the county treasurer. If 2 11 certification of such delinquent rates or charges is attempted 2 12 subsequent to a transfer of the property or premises, the 2 13 county treasurer shall return the certification to the city 2 14 utility, city enterprise, or combined city enterprise 2 15 attempting certification along with a notice stating that the 2 16 delinquent rates or charges cannot be made a lien against the 2 17 property or premises. 2 18 b.ThisThe lien under paragraph "a" may be imposed upon a 2 19 property or premises even if a city utility or enterprise 2 20 service to the property or premises has been or may be 2 21 discontinued as provided in this section. 2 22 c. A lien for a city utility or enterprise service under 2 23 paragraph "a" shall not be certified to the county treasurer 2 24 for collection unless prior written notice of intent to 2 25 certify a lien is given to the account holderofin whose name 2 26 the delinquentaccountrates or charges were incurred at least 2 27 thirty days prior to certification. If the account holder is 2 28 a tenant, and if the owner or landlord of the property has 2 29 made a written request for notice, the notice shall also be 2 30 given to the owner or landlord. The notice shall be sent to 2 31 the appropriate persons by ordinary mail not less than thirty 2 32 days prior to certification of the lien to the county 2 33 treasurer. 2 34 EXPLANATION 2 35 Under current law, delinquent rates or charges for the 3 1 services of water, sewer systems, storm water drainage 3 2 systems, sewage treatment, or solid waste collection and 3 3 disposal provided by a city utility, city enterprise, or 3 4 combined city enterprise (utility) become a lien against the 3 5 property receiving the services upon certification of the 3 6 delinquent amount to the county treasurer. The delinquent 3 7 amount then becomes collectible as a special assessment. 3 8 Special assessments are collected in the same manner as 3 9 property taxes. Current law also provides that service may be 3 10 discontinued at the property if rates or charges for these 3 11 services become delinquent. Notice of discontinuance of 3 12 service or notice of intent to certify a delinquency to the 3 13 county treasurer for collection must be provided to the 3 14 account holder. 3 15 This bill specifies that notice of discontinuance or notice 3 16 of intent to certify a delinquency to the county treasurer 3 17 must be provided to the account holder in whose name the 3 18 delinquent amount rates or charges were incurred. 3 19 The bill also provides that if delinquent rates or charges 3 20 were incurred prior to a transfer of the property where the 3 21 service was provided and such delinquency was not certified to 3 22 the county treasurer prior to the date of transfer, the 3 23 delinquency is not eligible for certification to the county 3 24 treasurer, and if certification of such a delinquency is 3 25 attempted, the county treasurer is directed to return the 3 26 certification to the utility along with a notice stating that 3 27 the delinquent rates or charges cannot be made a lien against 3 28 the property. 3 29 The bill further provides that service to a new account 3 30 holder may not be withheld or discontinued based on delinquent 3 31 charges incurred by a prior account holder at the same 3 32 premises unless the utility has certified the delinquent 3 33 amount to the county treasurer in a timely manner, i.e., prior 3 34 to transfer of the property. 3 35 The bill further provides that such delinquent amount is 4 1 not collectible from the new account holder unless the 4 2 delinquent amount has been certified to the county treasurer 4 3 in a timely manner, i.e., prior to transfer of the property. 4 4 LSB 1053HH 82 4 5 sc:rj/gg/14