House File 2133 



                                       HOUSE FILE       
                                       BY  HUSER and SCHUELLER


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

                                      A BILL FOR

  1 An Act relating to certain city utilities or city enterprises by
  2    making changes to procedures for notice and collection of
  3    delinquent charges and by making changes to billing
  4    notifications for water service provided to certain
  5    residential rental property.
  6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  7 TLSB 5133HH 82
  8 sc/rj/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 subparagraphs (1) and (2).
  1 26    (2)  Delinquent amounts that have not been certified in a
  1 27 timely manner to the county treasurer are not collectible
  1 28 against any subsequent owner of the property or premises.
  1 29    Sec. 2.  Section 384.84, subsection 3, Code 2007, is
  1 30 amended to read as follows:
  1 31    3.  a.  (1)  Except as provided in paragraph "d", all rates
  1 32 or charges for the services of sewer systems, storm water
  1 33 drainage systems, sewage treatment, solid waste collection,
  1 34 water, solid waste disposal, or any of these services, if not
  1 35 paid as provided by ordinance of the council or resolution of
  2  1 the trustees, are a lien upon the property or premises served
  2  2 by any of these services upon certification to the county
  2  3 treasurer that the rates or charges are due.
  2  4    (2)  If the delinquent rates or charges were incurred prior
  2  5 to a transfer of the property or premises and such
  2  6 delinquencies were not certified to the county treasurer prior
  2  7 to the date of transfer, the delinquent rates or charges are
  2  8 not eligible to be certified to the county treasurer.  If
  2  9 certification of such delinquent rates or charges is attempted
  2 10 subsequent to a transfer of the property or premises, the
  2 11 county treasurer shall return the certification to the city
  2 12 utility, city enterprise, or combined city enterprise
  2 13 attempting certification along with a notice stating that the
  2 14 delinquent rates or charges cannot be made a lien against the
  2 15 property or premises.
  2 16    (3)  If the city utility, city enterprise, or combined city
  2 17 enterprise is prohibited under subparagraph (2) from
  2 18 certifying delinquent rates or charges against the property or
  2 19 premises served by the services described in subparagraph (1),
  2 20 the city utility, city enterprise, or combined city enterprise
  2 21 may certify the delinquent rates or charges against any other
  2 22 property or premises located in this state and owned by the
  2 23 account holder in whose name the rates or charges were
  2 24 incurred.
  2 25    b.  This The lien under paragraph "a" may be imposed upon a
  2 26 property or premises even if a city utility or enterprise
  2 27 service to the property or premises has been or may be
  2 28 discontinued as provided in this section.
  2 29    c.  A lien for a city utility or enterprise service under
  2 30 paragraph "a" shall not be certified to the county treasurer
  2 31 for collection unless prior written notice of intent to
  2 32 certify a lien is given to the account holder of in whose name
  2 33 the delinquent account rates or charges were incurred at least
  2 34 thirty days prior to certification.  If the account holder is
  2 35 a tenant, and if the owner or landlord of the property has
  3  1 made a written request for notice, the notice shall also be
  3  2 given to the owner or landlord.  The notice shall be sent to
  3  3 the appropriate persons by ordinary mail not less than thirty
  3  4 days prior to certification of the lien to the county
  3  5 treasurer.
  3  6    d.  Residential rental property where a charge for water
  3  7 service is separately metered and paid directly to the city
  3  8 utility or enterprise by the tenant is exempt from a lien for
  3  9 delinquent rates or charges associated with such water service
  3 10 if the landlord gives written notice to the city utility or
  3 11 enterprise that the property is residential rental property
  3 12 and that the tenant is liable for the rates or charges.  A
  3 13 city utility or enterprise may require a deposit not exceeding
  3 14 the usual cost of ninety days of water service to be paid to
  3 15 the utility or enterprise.  Upon receipt, the utility or
  3 16 enterprise shall acknowledge the notice and deposit.  A
  3 17 written notice shall contain the name of the tenant
  3 18 responsible for charges, address of the residential rental
  3 19 property that the tenant is to occupy, and the date that the
  3 20 occupancy begins.  A change in tenant shall require a new
  3 21 written notice to be given to the city utility or enterprise
  3 22 within ten business days of the change in tenant.  When the
  3 23 tenant moves from the rental property, the city utility or
  3 24 enterprise shall return the deposit if the water service
  3 25 charges are paid in full.  A change in the ownership of the
  3 26 residential rental property shall require written notice of
  3 27 such change to be given to the city utility or enterprise
  3 28 within ten business days of the completion of the change of
  3 29 ownership.  The lien exemption for rental property does not
  3 30 apply to charges for repairs to a water service if the repair
  3 31 charges become delinquent.
  3 32                           EXPLANATION
  3 33    This bill relates to certain services provided by a city
  3 34 utility or city enterprise by making changes to the procedures
  3 35 for notice and collection of delinquent rates and charges and
  4  1 by making changes to billing notifications for water services
  4  2 provided to certain residential property by a city utility or
  4  3 city enterprise.
  4  4    Under current law, delinquent rates or charges for the
  4  5 services of water, sewer systems, storm water drainage
  4  6 systems, sewage treatment, or solid waste collection and
  4  7 disposal provided by a city utility, city enterprise, or
  4  8 combined city enterprise (utility) become a lien against the
  4  9 property receiving the services upon certification of the
  4 10 delinquent amount to the county treasurer.  The delinquent
  4 11 amount then becomes collectible as a special assessment.
  4 12 Special assessments are collected in the same manner as
  4 13 property taxes.  Current law also provides that service may be
  4 14 discontinued at the property if rates or charges for these
  4 15 services become delinquent.  Notice of discontinuance of
  4 16 service or notice of intent to certify a delinquency to the
  4 17 county treasurer for collection must be provided to the
  4 18 account holder.
  4 19    The bill specifies that notice of discontinuance or notice
  4 20 of intent to certify a delinquency to the county treasurer
  4 21 must be provided to the account holder in whose name the
  4 22 delinquent rates or charges were incurred.
  4 23    The bill also provides that if delinquent rates or charges
  4 24 were incurred prior to a transfer of the property where the
  4 25 service was provided and such delinquency was not certified to
  4 26 the county treasurer prior to the date of transfer, the
  4 27 delinquency is not eligible for certification to the county
  4 28 treasurer, and if certification of such a delinquency is
  4 29 attempted, the county treasurer is directed to return the
  4 30 certification to the utility along with a notice stating that
  4 31 the delinquent rates or charges cannot be made a lien against
  4 32 the property.  However, the delinquent rates or charges may be
  4 33 certified against any other property or premises located in
  4 34 the state and owned by the account holder in whose name the
  4 35 delinquent amount was incurred.
  5  1    The bill further provides that service to a new account
  5  2 holder may not be withheld or discontinued based on delinquent
  5  3 charges incurred by a prior account holder at the same
  5  4 premises unless the utility has certified the delinquent
  5  5 amount to the county treasurer in a timely manner, i.e., prior
  5  6 to transfer of the property.  The bill also provides that such
  5  7 delinquent amount is not collectible from the new account
  5  8 holder unless the delinquent amount has been certified to the
  5  9 county treasurer in a timely manner, i.e., prior to transfer
  5 10 of the property.
  5 11    Under current law, if water service is separately metered
  5 12 and paid directly by a tenant of residential rental property,
  5 13 the owner of the property, in order to be exempt from a lien
  5 14 for delinquent rates or charges, is required to notify the
  5 15 city utility that the property is rental property, that the
  5 16 tenant is responsible for water charges at the property, and
  5 17 the name of the tenant.  The owner must also notify the city
  5 18 utility each time there is a change in tenant at the
  5 19 residential rental property within 10 days of the change in
  5 20 tenant.  The bill strikes the requirement that the owner
  5 21 notify the city utility of the name of the tenant and the
  5 22 requirement that the owner notify the city utility each time
  5 23 there is a change in tenant at the residential rental
  5 24 property.
  5 25 LSB 5133HH 82
  5 26 sc/rj/14