HF 507 (LSB 1673HV (1) 86)

HOUSE FILE 507

BY  COMMITTEE ON LOCAL GOVERNMENT

(SUCCESSOR TO HF 365)

A BILL FOR

An Act relating to certain delinquent accounts for wastewater, sewer system, storm water drainage, and sewage treatment services. 
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 384.84, subsection 3, Code 2015, is amended by adding the following new paragraphs:
   NEW PARAGRAPH.  e.  (1)  A legal entity created pursuant to chapter 28E by a city or cities, or other political subdivisions, and public or private agencies for the purposes of providing wastewater, sewer system, storm water drainage, or sewage treatment services shall have the same powers and duties as a city utility or enterprise under this subsection with respect to account holders and subsequent owners, or with respect to properties and premises, associated with a delinquent account under this subsection.
   (2)  The governing body of a city utility, combined city utility, city enterprise, or combined city enterprise may enter into an agreement with a legal entity described in subparagraph (1) to discontinue water service to a property or premises if an account owed the legal entity for wastewater, sewer system, storm water drainage, or sewage treatment services provided to that customer’s property or premises becomes delinquent. The customer shall be responsible for all costs associated with discontinuing and reestablishing water service disconnected pursuant to this paragraph.
   NEW PARAGRAPH.  f.  (1)  A legal entity providing wastewater, sewer system, storm water drainage, or sewage treatment services to a city or cities or other political subdivisions pursuant to a franchise or other agreement shall have the same powers and duties as a city utility or enterprise under this subsection with respect to account holders and subsequent owners, or with respect to properties and premises, associated with a delinquent account under this subsection.
   (2)  The governing body of a city utility, combined city utility, city enterprise, or combined city enterprise may enter into an agreement with a legal entity described in subparagraph (1) to discontinue water service to a property or premises if an account owed the legal entity for wastewater, sewer system, storm water drainage, or sewage treatment services provided to that customer’s property or premises becomes delinquent. The customer shall be responsible for all costs associated with discontinuing and reestablishing water service disconnected pursuant to this paragraph.
    Sec. 2.  Section 384.84, subsection 6, Code 2015, is amended to read as follows:
   6.  a.  The governing body of a city utility or city enterprise providing wastewater, sewer system, storm water drainage, or sewage treatment services may file suit in the appropriate court against a customer if the customer’s account for such services becomes delinquent pursuant to subsection 3. The governing body may recover the costs for providing such services to the customer’s property or premises and reasonable attorney fees actually incurred.
   b.  A legal entity described in subsection 3, paragraph “e” or “f”, shall have the same powers and duties as a city utility or enterprise under paragraph “a” with respect to filing suit in an appropriate court against a customer if the customer’s account for such services becomes delinquent.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill relates to certain delinquent accounts for wastewater, sewer system, storm water drainage, and sewage treatment services. 
   The bill provides that legal entities created pursuant to Code chapter 28E agreements for the purposes of providing wastewater, sewer system, storm water drainage, or sewage treatment services have the same powers and duties as a city utility or enterprise under Code section 384.84 with respect to account holders and subsequent owners, or with respect to properties and premises, associated with a delinquent account. 
   The bill allows the governing body of a city utility, combined city utility, city enterprise, or combined city enterprise to enter into an agreement with these legal entities, to discontinue water service to a customer’s property or premises if an account for those services for that property or premises becomes delinquent. The bill further states that the customer is responsible for all costs associated with discontinuance and reestablishing water service. The bill also provides that these legal entities may file suit in district court against a customer if the customer’s account for such services becomes delinquent.
   The bill adds corresponding provisions for legal entities providing such services pursuant to a franchise or other agreement.