House Study Bill 200 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON LOCAL GOVERNMENT BILL BY CHAIRPERSON SCHULTZ) A BILL FOR An Act relating to city utilities and city enterprises by 1 making changes to requirements related to commercial rental 2 property. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2162HC (1) 85 aw/sc

H.F. _____ Section 1. Section 384.84, subsection 4, paragraph d, Code 1 2013, is amended to read as follows: 2 d. (1) Residential or commercial rental property where 3 a charge for water service is separately metered and paid 4 directly to the city utility or enterprise by the tenant is 5 exempt from a lien for delinquent rates or charges associated 6 with such water service if the landlord gives written notice to 7 the city utility or enterprise that the property is residential 8 or commercial rental property and that the tenant is liable 9 for the rates or charges. A city utility or enterprise may 10 require a deposit not exceeding the usual cost of ninety days 11 of water service to be paid to the utility or enterprise. Upon 12 receipt, the utility or enterprise shall acknowledge the notice 13 and deposit. A written notice shall contain the name of the 14 tenant responsible for charges, address of the residential or 15 commercial rental property that the tenant is to occupy, and 16 the date that the occupancy begins. 17 (2) A change in tenant for a residential rental property 18 shall require a new written notice to be given to the city 19 utility or enterprise within thirty business days of the change 20 in tenant. A change in tenant for a commercial rental property 21 shall require a new written notice to be given to the city 22 utility or enterprise within ten business days of the change 23 in tenant. When the tenant moves from the rental property, 24 the city utility or enterprise shall return the deposit if the 25 water service charges are paid in full. 26 (3) A change in the ownership of the residential rental 27 property shall require written notice of such change to be 28 given to the city utility or enterprise within thirty business 29 days of the completion of the change of ownership. A change in 30 the ownership of the commercial rental property shall require 31 written notice of such change to be given to the city utility 32 or enterprise within ten business days of the completion of the 33 change of ownership. 34 (4) The lien exemption for rental property does not apply to 35 -1- LSB 2162HC (1) 85 aw/sc 1/ 3

H.F. _____ charges for repairs to a water service if the repair charges 1 become delinquent. 2 EXPLANATION 3 The bill relates to city utilities and city enterprises by 4 making changes to requirements related to commercial rental 5 property. 6 Current law provides certain exemptions and requirements 7 related to residential rental property that is individually 8 metered and where a charge for water service is separately 9 metered and paid directly to a city utility or enterprise by a 10 tenant. The bill extends these exemptions and requirements to 11 commercial rental property with shorter allowable notification 12 periods applied to commercial landlords. 13 The bill provides that commercial rental property is exempt 14 from a lien for delinquent rates or charges associated with 15 charges for water service if the landlord gives written notice 16 to the city utility or city enterprise that the property is 17 commercial rental property and that the tenant is liable for 18 the rates or charges. The bill provides that a city utility or 19 city enterprise may require a deposit not exceeding the usual 20 cost of 90 days of provision of such services to be paid to the 21 city utility or city enterprise. The bill requires that the 22 city utility or city enterprise acknowledge the receipt of such 23 notice and deposit. The bill requires that a written notice 24 contain the name of the tenant, the address of the commercial 25 rental property that the tenant is to occupy, and the date that 26 the occupancy begins. The bill requires that the city utility 27 or city enterprise return the deposit paid if the charges for 28 such services are paid in full when the tenant moves from the 29 rental property. The bill provides that the lien exemption 30 does not apply to charges for repairs related to water service 31 if the repair charges become delinquent. 32 The bill further requires that written notice be provided 33 to a city utility or city enterprise providing such services 34 within 10 business days when there is a change in tenant or 35 -2- LSB 2162HC (1) 85 aw/sc 2/ 3

H.F. _____ a change in ownership of commercial rental property. Under 1 current law, the notification period for a change in tenant 2 or a change in ownership of residential rental property is 30 3 business days. 4 -3- LSB 2162HC (1) 85 aw/sc 3/ 3