House File 507 - Introduced HOUSE FILE 507 BY COMMITTEE ON LOCAL GOVERNMENT (SUCCESSOR TO HF 365) A BILL FOR An Act relating to certain delinquent accounts for wastewater, 1 sewer system, storm water drainage, and sewage treatment 2 services. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1673HV (1) 86 aw/sc

H.F. 507 Section 1. Section 384.84, subsection 3, Code 2015, is 1 amended by adding the following new paragraphs: 2 NEW PARAGRAPH . e. (1) A legal entity created pursuant 3 to chapter 28E by a city or cities, or other political 4 subdivisions, and public or private agencies for the purposes 5 of providing wastewater, sewer system, storm water drainage, 6 or sewage treatment services shall have the same powers and 7 duties as a city utility or enterprise under this subsection 8 with respect to account holders and subsequent owners, or 9 with respect to properties and premises, associated with a 10 delinquent account under this subsection. 11 (2) The governing body of a city utility, combined city 12 utility, city enterprise, or combined city enterprise may enter 13 into an agreement with a legal entity described in subparagraph 14 (1) to discontinue water service to a property or premises if 15 an account owed the legal entity for wastewater, sewer system, 16 storm water drainage, or sewage treatment services provided to 17 that customer’s property or premises becomes delinquent. The 18 customer shall be responsible for all costs associated with 19 discontinuing and reestablishing water service disconnected 20 pursuant to this paragraph. 21 NEW PARAGRAPH . f. (1) A legal entity providing wastewater, 22 sewer system, storm water drainage, or sewage treatment 23 services to a city or cities or other political subdivisions 24 pursuant to a franchise or other agreement shall have the same 25 powers and duties as a city utility or enterprise under this 26 subsection with respect to account holders and subsequent 27 owners, or with respect to properties and premises, associated 28 with a delinquent account under this subsection. 29 (2) The governing body of a city utility, combined city 30 utility, city enterprise, or combined city enterprise may enter 31 into an agreement with a legal entity described in subparagraph 32 (1) to discontinue water service to a property or premises if 33 an account owed the legal entity for wastewater, sewer system, 34 storm water drainage, or sewage treatment services provided to 35 -1- LSB 1673HV (1) 86 aw/sc 1/ 3

H.F. 507 that customer’s property or premises becomes delinquent. The 1 customer shall be responsible for all costs associated with 2 discontinuing and reestablishing water service disconnected 3 pursuant to this paragraph. 4 Sec. 2. Section 384.84, subsection 6, Code 2015, is amended 5 to read as follows: 6 6. a. The governing body of a city utility or city 7 enterprise providing wastewater, sewer system, storm water 8 drainage, or sewage treatment services may file suit in the 9 appropriate court against a customer if the customer’s account 10 for such services becomes delinquent pursuant to subsection 3 . 11 The governing body may recover the costs for providing such 12 services to the customer’s property or premises and reasonable 13 attorney fees actually incurred. 14 b. A legal entity described in subsection 3, paragraph “e” 15 or “f” , shall have the same powers and duties as a city utility 16 or enterprise under paragraph “a” with respect to filing suit 17 in an appropriate court against a customer if the customer’s 18 account for such services becomes delinquent. 19 EXPLANATION 20 The inclusion of this explanation does not constitute agreement with 21 the explanation’s substance by the members of the general assembly. 22 This bill relates to certain delinquent accounts for 23 wastewater, sewer system, storm water drainage, and sewage 24 treatment services. 25 The bill provides that legal entities created pursuant 26 to Code chapter 28E agreements for the purposes of providing 27 wastewater, sewer system, storm water drainage, or sewage 28 treatment services have the same powers and duties as a city 29 utility or enterprise under Code section 384.84 with respect 30 to account holders and subsequent owners, or with respect to 31 properties and premises, associated with a delinquent account. 32 The bill allows the governing body of a city utility, 33 combined city utility, city enterprise, or combined city 34 enterprise to enter into an agreement with these legal 35 -2- LSB 1673HV (1) 86 aw/sc 2/ 3

H.F. 507 entities, to discontinue water service to a customer’s property 1 or premises if an account for those services for that property 2 or premises becomes delinquent. The bill further states that 3 the customer is responsible for all costs associated with 4 discontinuance and reestablishing water service. The bill also 5 provides that these legal entities may file suit in district 6 court against a customer if the customer’s account for such 7 services becomes delinquent. 8 The bill adds corresponding provisions for legal entities 9 providing such services pursuant to a franchise or other 10 agreement. 11 -3- LSB 1673HV (1) 86 aw/sc 3/ 3