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 holder by ordinary
  1  6 mail in 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.  This The 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 holder of in whose name
  2 26 the delinquent account rates 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