SF 2235 (LSB 5862SV (3) 83)

SENATE FILE 2235

BY  COMMITTEE ON STATE GOVERNMENT

(SUCCESSOR TO SF 2125)

A BILL FOR

An Act requiring provision of deliverable fuels to customers under specified circumstances, and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  216A.105  Deliverable fuels —— mandatory delivery —— qualifications.
   1.  A deliverable fuel vendor engaged in the business of providing deliverable fuel to customers in this state shall not withhold the sale or delivery of deliverable fuel to a customer between November 1 and April 1 annually if either of the following apply:
   a.  The customer documents that they are able to make a cash payment for deliverable fuel of five hundred dollars.
   b.  The customer is eligible for the federal low-income home energy assistance program.
   2.  A deliverable fuel vendor providing deliverable fuel to a customer described in subsection 1, paragraph “a”, may apply the customer’s cash payment as follows:
   a.  Seventy-five percent toward the current deliverable fuel sale or delivery.
   b.  Twenty-five percent toward any unpaid balance.
   3.  A customer shall be responsible for the reasonable cost of equipment safety checks conducted by a deliverable fuel vendor, unless the customer is eligible for the federal low-income home energy assistance program and the cost is paid for with program funds. Equipment safety check payments shall be in addition to, and shall not reduce, the cash payment otherwise available for deliverable fuel sale or delivery pursuant to subsection 1, paragraph “a”. A deliverable fuel vendor conducting an equipment safety check shall inform customers eligible for the low-income home energy assistance program of the existence of programs and projects developed by the Iowa propane education and research council to provide assistance to persons eligible for the program, if applicable based upon the results of the safety check.
   4.  An existing customer of a deliverable fuel vendor with an unpaid balance owing to that vendor shall not obtain deliverable fuel from another vendor pursuant to this section unless and until a payment arrangement for paying off the unpaid balance has been entered into between the customer and the deliverable fuel vendor. In the event the customer is eligible for the federal low-income home energy assistance program, the division shall offer assistance in facilitating the payment arrangement. The division shall by rule establish procedures regarding notification by deliverable fuel vendors of payment arrangements in default.
   5.  A deliverable fuel vendor is not prohibited from withholding the sale or delivery of deliverable fuel to a customer who is eligible for the federal low-income home energy assistance program and has received the maximum amount of annual assistance pursuant to the program, and who cannot otherwise document the ability to make a cash payment for deliverable fuel pursuant to subsection 1, paragraph “a”.
   6.  The division shall adopt rules governing contracts and agreements with deliverable fuel vendors pursuant to this section in order to protect the rights of persons who heat their homes with deliverable fuels.
   7.  For the purposes of this section, unless the context otherwise requires:
   a.  “Customer” means an existing customer of a deliverable fuel vendor or a prospective customer submitting an application or otherwise applying for the purchase or delivery of deliverable fuel.
   b.  “Deliverable fuel” means propane or any other heating fuel sold or delivered in this state for home heating purposes.
   c.  “Deliverable fuel vendor” means a retail propane dispenser, retail propane marketer, or a retail dispenser or marketer of a deliverable fuel other than propane.
   d.  “Propane”, “retail propane dispenser”, and “retail propane marketer” mean the same as defined in section 101C.2.
    Sec. 2.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of immediate importance, takes effect upon enactment.
EXPLANATION
   This bill prohibits a deliverable fuel vendor from withholding the sale or delivery of deliverable fuel to an existing or prospective customer between November 1 and April 1 annually if the customer meets one of two alternative criteria.
   One criteria qualifies customers for delivery if they are eligible for the federal low-income home energy assistance program (LIHEAP).
   The second criteria qualifies customers who can document that they are able to make a cash payment for deliverable fuel of $500. The bill provides that in the event an unpaid balance by the customer exists, 75 percent of this cash payment may be allocated by the deliverable fuel vendor toward the current deliverable fuel sale or delivery, and that 25 percent may be allocated toward the unpaid balance. 
   The bill provides that a customer shall be responsible for the cost of equipment safety checks performed by a vendor, either directly or through LIHEAP, and that if the customer is not a LIHEAP recipient, the cost shall not reduce the $500 cash payment otherwise required for the purchase of deliverable fuel. The bill requires vendors conducting equipment safety checks to inform LIHEAP customers of assistance available through programs and projects developed by the Iowa propane education and research council, if indicated based on the results of the safety check.
   The bill requires a customer with an outstanding balance owing to a vendor to work out a payment arrangement with that vendor prior to obtaining deliverable fuel from another vendor, and requires the division of community action agencies of the department of human rights to assist LIHEAP customers in making these arrangements. 
   The bill states that a vendor is not prohibited from withholding a sale or delivery to a LIHEAP customer who has received their maximum amount of annual assistance under the program and who cannot document the ability to make the $500 cash payment. 
   The bill directs the division to adopt rules governing contracts and agreements with deliverable fuel vendors in order to protect the rights of persons who heat their homes with deliverable fuels. Definitions of “customer”, “deliverable fuel”, “deliverable fuel vendor”, and “propane” are supplied.
   The bill takes effect upon enactment.