Senate File 355 - Introduced SENATE FILE 355 BY COMMITTEE ON COMMERCE (SUCCESSOR TO SSB 1004) A BILL FOR An Act relating to municipal utilities, by restricting the 1 regulatory authority of the Iowa utilities board with 2 regard to certain services, and authorizing city utilities 3 to require deposits for gas or electric services for 4 residential rental properties. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 1666SV (2) 87 gh/nh
S.F. 355 Section 1. Section 384.84, subsection 3, Code 2017, is 1 amended to read as follows: 2 3. a. A city utility or enterprise service to a property 3 or premises, including services of sewer systems, storm water 4 drainage systems, sewage treatment, solid waste collection, 5 water, solid waste disposal, or any of these services, may be 6 discontinued or disconnected if the account for the service 7 becomes delinquent. Gas or electric service provided by a city 8 utility or enterprise shall be discontinued or disconnected 9 only as provided by section 476.20 , subsections 1 through 4, 10 and discontinuance or disconnection of those services are 11 is subject to rules adopted by the utilities board of the 12 department of commerce. 13 b. If more than one city utility or enterprise service is 14 billed to a property or premises as a combined service account, 15 all of the services may be discontinued or disconnected if the 16 account becomes delinquent. 17 c. A city utility or enterprise service to a property or 18 premises shall not be discontinued or disconnected unless prior 19 written notice is sent, by ordinary mail, to the account holder 20 in whose name the delinquent rates or charges were incurred, 21 informing the account holder of the nature of the delinquency 22 and affording the account holder the opportunity for a hearing 23 prior to discontinuance or disconnection of service. If the 24 account holder is a tenant, and if the owner or landlord of the 25 property or premises has made a written request for notice, the 26 notice shall also be given to the owner or landlord. If the 27 account holder is a tenant and requests a change of name for 28 service under the account, such request shall be sent to the 29 owner or landlord of the property if the owner or landlord has 30 made a written request for notice of any change of name for 31 service under the account to the rental property. 32 d. (1) If a delinquent amount is owed by an account 33 holder for a utility service associated with a prior property 34 or premises, a city utility, city enterprise, or combined 35 -1- LSB 1666SV (2) 87 gh/nh 1/ 7
S.F. 355 city enterprise may withhold service from the same account 1 holder at any new property or premises until such time as 2 the account holder pays the delinquent amount owing on the 3 account associated with the prior property or premises. A city 4 utility, city enterprise, or combined city enterprise shall not 5 withhold service from, or discontinue or disconnect service 6 to, a subsequent owner who obtains fee simple title of the 7 prior property or premises unless such delinquent amount has 8 been certified in a timely manner to the county treasurer as 9 provided in subsection 4 , paragraph “a” , subparagraphs (1) and 10 (2). 11 (2) Delinquent amounts that have not been certified in 12 a timely manner to the county treasurer are not collectible 13 against any subsequent owner of the property or premises. 14 e. (1) A legal entity created pursuant to chapter 28E 15 by a city or cities, or other political subdivisions, and 16 public or private agencies for the purposes of providing 17 wastewater, sewer system, storm water drainage, or sewage 18 treatment services shall have the same powers and duties as a 19 city utility or enterprise under this subsection with respect 20 to account holders and subsequent owners, or with respect to 21 properties and premises, associated with a delinquent account 22 under this subsection . 23 (2) The governing body of a city utility, combined city 24 utility, city enterprise, or combined city enterprise may 25 enter into an agreement with a legal entity described in 26 subparagraph (1) to discontinue or disconnect water service 27 to a property or premises if an account owed the legal entity 28 for wastewater, sewer system, storm water drainage, or sewage 29 treatment services provided to that customer’s property or 30 premises becomes delinquent. The customer shall be responsible 31 for all costs associated with discontinuing or disconnecting 32 and reestablishing water service disconnected pursuant to this 33 paragraph “e” . 34 (3) This paragraph “e” shall not apply to a property or 35 -2- LSB 1666SV (2) 87 gh/nh 2/ 7
S.F. 355 premises if, prior to July 1, 2015, the account holder for 1 that property or premises had an established account with a 2 legal entity described in subparagraph (1) for the provision 3 of wastewater, sewer system, storm water drainage, or sewage 4 treatment services to the property or premises. 5 f. (1) A legal entity providing wastewater, sewer system, 6 storm water drainage, or sewage treatment services to a city or 7 cities or other political subdivisions pursuant to a franchise 8 or other agreement shall have the same powers and duties as a 9 city utility or enterprise under this subsection with respect 10 to account holders and subsequent owners, or with respect to 11 properties and premises, associated with a delinquent account 12 under this subsection . 13 (2) The governing body of a city utility, combined city 14 utility, city enterprise, or combined city enterprise may 15 enter into an agreement with a legal entity described in 16 subparagraph (1) to discontinue or disconnect water service 17 to a property or premises if an account owed the legal entity 18 for wastewater, sewer system, storm water drainage, or sewage 19 treatment services provided to that customer’s property or 20 premises becomes delinquent. The customer shall be responsible 21 for all costs associated with discontinuing or disconnecting 22 and reestablishing water service disconnected pursuant to this 23 paragraph “f” . 24 (3) This paragraph “f” shall not apply to a property or 25 premises if, prior to July 1, 2015, the account holder for 26 that property or premises had an established account with a 27 legal entity described in subparagraph (1) for the provision 28 of wastewater, sewer system, storm water drainage, or sewage 29 treatment services to the property or premises. 30 Sec. 2. Section 384.84, subsection 4, paragraphs b and e, 31 Code 2017, are amended to read as follows: 32 b. The lien under paragraph “a” may be imposed upon a 33 property or premises even if a city utility or enterprise 34 service to the property or premises has been or may be 35 -3- LSB 1666SV (2) 87 gh/nh 3/ 7
S.F. 355 discontinued or disconnected as provided in this section . 1 e. Residential rental property where a charge for any of the 2 services of sewer systems, storm water drainage systems, sewage 3 treatment, solid waste collection, and solid waste disposal 4 is paid directly to the city utility or enterprise by the 5 tenant is exempt from a lien for delinquent rates or charges 6 associated with such services if the landlord gives written 7 notice to the city utility or enterprise that the property is 8 residential rental property and that the tenant is liable for 9 the rates or charges. A city utility or enterprise may require 10 a deposit not exceeding the usual cost of ninety days of the 11 services of sewer systems, storm water drainage systems, sewage 12 treatment, solid waste collection, and solid waste disposal 13 to be paid to the utility or enterprise. A city utility or 14 enterprise may require a deposit not exceeding the usual cost 15 of sixty days of the services of gas and electric to be paid 16 to the utility or enterprise. Upon receipt, the utility or 17 enterprise shall acknowledge the notice and deposit. A written 18 notice shall contain the name of the tenant responsible for 19 the charges, the address of the residential rental property 20 that the tenant is to occupy, and the date that the occupancy 21 begins. A change in tenant shall require a new written notice 22 to be given to the city utility or enterprise within thirty 23 business days of the change in tenant. When the tenant moves 24 from the rental property, the city utility or enterprise shall 25 return the deposit if the charges for the services of gas, 26 electric, sewer systems, storm water drainage systems, sewage 27 treatment, solid waste collection, and solid waste disposal are 28 paid in full. A change in the ownership of the residential 29 rental property shall require written notice of such change 30 to be given to the city utility or enterprise within thirty 31 business days of the completion of the change of ownership. 32 The lien exemption for rental property does not apply to 33 charges for repairs related to a service of sewer systems, 34 storm water drainage systems, sewage treatment, solid waste 35 -4- LSB 1666SV (2) 87 gh/nh 4/ 7
S.F. 355 collection, and solid waste disposal if the repair charges 1 become delinquent. 2 Sec. 3. Section 384.84, subsection 8, paragraphs b and c, 3 Code 2017, are amended to read as follows: 4 b. Two or more city utilities, combined utility systems, 5 city enterprises, or combined city enterprises, including city 6 utilities established pursuant to chapter 388 , may contract 7 pursuant to chapter 28E for joint billing or collection, or 8 both, of combined service accounts for utility or enterprise 9 services, or both. The contracts may provide for the 10 discontinuance or disconnection of one or more of the city 11 utility or enterprise services if a delinquency occurs in the 12 payment of any charges billed under a combined service account. 13 c. One or more city utilities or combined utility systems, 14 including city utilities established pursuant to chapter 388 , 15 may contract pursuant to chapter 28E with one or more sanitary 16 districts established pursuant to chapter 358 for joint billing 17 or collection, or both, of combined service accounts from 18 utility services and sanitary district services. The contracts 19 may provide for the discontinuance or disconnection of one or 20 more of the city water utility services or sanitary district 21 services if a delinquency occurs in the payment of any charges 22 billed under a combined service account. 23 Sec. 4. Section 476.1B, subsection 1, paragraph e, Code 24 2017, is amended to read as follows: 25 e. Disconnection of service, as set forth in section 476.20 , 26 subsections 1 through 4 . 27 Sec. 5. Section 476.20, subsection 5, paragraph a, 28 unnumbered paragraph 1, Code 2017, is amended to read as 29 follows: 30 The board shall establish rules which shall be uniform with 31 respect to all public utilities furnishing gas or electricity 32 relating to deposits which may be required by the public 33 utility for the initiation or reinstatement of service. This 34 subsection shall not apply to municipally owned utilities, 35 -5- LSB 1666SV (2) 87 gh/nh 5/ 7
S.F. 355 which shall be governed by the provisions of section 384.84 1 with respect to deposits and payment plans for delinquent 2 amounts owed. Municipally owned utilities shall not be 3 subject to the board’s rules in regards to deposits and payment 4 plans for delinquent amounts owed and repayment of past due 5 debt. Municipally owned utilities shall be subject to the 6 board’s rules in regards to payment plans made prior to the 7 disconnection of services. 8 EXPLANATION 9 The inclusion of this explanation does not constitute agreement with 10 the explanation’s substance by the members of the general assembly. 11 This bill relates to municipal utilities. 12 The bill modifies the terminology throughout Code section 13 384.84(3), which relates to the discontinuance of services by 14 city utilities, by changing references to the discontinuance of 15 services to also include the disconnection of services. 16 Currently, Code section 476.1B provides that a municipally 17 owned utility is not subject to regulation by the Iowa 18 utilities board, subject to certain specified exceptions. One 19 such exception is with regard to disconnection of service, 20 as provided in Code section 476.20. The bill modifies this 21 reference to Code section 476.20 to limit the applicability 22 of board regulation to subsections 1 through 4 of the Code 23 section. This renders provisions contained in Code section 24 476.20, subsection 5, regarding the board establishing rules 25 relating to deposits which may be required by a utility for 26 the initiation or reinstatement of service, inapplicable to 27 municipal utilities. 28 Current Code section 384.84(4)(e) allows a city utility or 29 enterprise to require a deposit from a tenant of residential 30 rental property not exceeding the usual cost of 90 days of the 31 services of sewer systems, storm water drainage systems, sewage 32 treatment, solid waste collection, and solid waste disposal to 33 be paid to the utility or enterprise. The bill provides that a 34 city utility may also require a deposit not exceeding the usual 35 -6- LSB 1666SV (2) 87 gh/nh 6/ 7
S.F. 355 cost of 60 days of gas and electric services to be paid to the 1 utility or enterprise. 2 Current Code section 476.20(5) requires the board to 3 establish uniform rules for public utilities with respect 4 to deposits required for the initiation or reinstatement of 5 service. The bill provides that Code section 476.20(5) does 6 not apply to municipally owned utilities, which are governed by 7 the provisions of Code section 384.84 with respect to deposits 8 and payment plans for delinquent amounts owed. The bill 9 provides that municipally owned utilities are not subject to 10 the board’s rules in regards to deposits and payment plans for 11 delinquent amounts owed and repayment of past due debt. The 12 bill provides that municipally owned utilities are subject to 13 the board’s rules in regards to payment plans made prior to the 14 disconnection of services. 15 -7- LSB 1666SV (2) 87 gh/nh 7/ 7