House Study Bill 116 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON JUDICIARY BILL BY CHAIRPERSON HOLT) A BILL FOR An Act relating to late fees and procedures associated with 1 rental agreements. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1901YC (4) 88 js/rn

H.F. _____ Section 1. Section 562A.9, subsection 4, Code 2019, is 1 amended to read as follows: 2 4. For rental agreements in which the rent does not exceed 3 seven hundred dollars per month, a rental agreement shall not 4 provide for a late fee that exceeds twelve dollars per day or a 5 total amount of sixty dollars per month. For rental agreements 6 in which the rent is greater than seven hundred dollars per 7 month but less than one thousand four hundred dollars per 8 month , a rental agreement shall not provide for a late fee that 9 exceeds twenty dollars per day or a total amount of one hundred 10 dollars per month. For rental agreements in which the rent is 11 at least one thousand four hundred dollars per month, a rental 12 agreement shall not provide for a late fee that exceeds thirty 13 dollars per day or a total amount of one hundred fifty dollars 14 per month. 15 Sec. 2. Section 562A.11, subsection 2, Code 2019, is amended 16 by striking the subsection and inserting in lieu thereof the 17 following: 18 2. A provision in a rental agreement prohibited by 19 subsection 1 is unenforceable. If the landlord seeks to 20 enforce the provision or accepts the tenant’s voluntary 21 compliance with the provision, the court may award the tenant 22 an amount not to exceed three months’ periodic rent and 23 reasonable attorney fees. 24 Sec. 3. Section 562B.10, subsection 4, Code 2019, is amended 25 to read as follows: 26 4. For rental agreements in which the rent does not exceed 27 seven hundred dollars per month, a rental agreement shall not 28 provide for a late fee that exceeds twelve dollars per day or a 29 total amount of sixty dollars per month. For rental agreements 30 in which the rent is greater than seven hundred dollars per 31 month but less than one thousand four hundred dollars per 32 month , a rental agreement shall not provide for a late fee that 33 exceeds twenty dollars per day or a total amount of one hundred 34 dollars per month. For rental agreements in which the rent is 35 -1- LSB 1901YC (4) 88 js/rn 1/ 3

H.F. _____ at least one thousand four hundred dollars per month, a rental 1 agreement shall not provide for a late fee that exceeds thirty 2 dollars per day or a total amount of one hundred fifty dollars 3 per month. 4 Sec. 4. Section 562B.11, subsection 2, Code 2019, is amended 5 by striking the subsection and inserting in lieu thereof the 6 following: 7 2. A provision in a rental agreement prohibited by 8 subsection 1 is unenforceable. If the landlord seeks to 9 enforce the provision or accepts the tenant’s voluntary 10 compliance with the provision, the court may award the tenant 11 an amount not to exceed three months’ periodic rent and 12 reasonable attorney fees. 13 Sec. 5. Section 648.5, subsection 1, Code 2019, is amended 14 to read as follows: 15 1. An action for forcible entry and detainer shall be 16 brought in a county where all or part of the premises is 17 located. Such an action shall be tried as an equitable action. 18 Upon receipt of the petition, the court shall set a date, 19 time, and place for hearing. The court shall set the date 20 of hearing no later than eight days from the filing date, 21 except that the court shall set a later hearing date no later 22 than fifteen days from the date of filing if the plaintiff 23 requests or consents to the later date of hearing. The 24 requirement regarding the setting of the initial hearing is not 25 a jurisdictional requirement and does not affect the court’s 26 subject matter jurisdiction to hear the action for forcible 27 entry and detainer. 28 EXPLANATION 29 The inclusion of this explanation does not constitute agreement with 30 the explanation’s substance by the members of the general assembly. 31 Current law caps late fees on rental agreements in which 32 rent is greater than $700 per month at $20 per day and $100 33 per month. Current law also allows an aggrieved party to 34 recover actual damages in certain situations when a prohibited 35 -2- LSB 1901YC (4) 88 js/rn 2/ 3

H.F. _____ provision is willingly or knowingly used in a rental agreement. 1 This bill allows a rental agreement to provide for late 2 fees not to exceed $20 per day and $100 per month for rental 3 agreements in which rent is greater than $700 per month but 4 not more than $1,400 per month. When rent exceeds $1,400 per 5 month, a rental agreement may provide for late fees of no 6 more than $30 per day and $150 per month. Furthermore, if 7 a landlord seeks to enforce or accepts a tenant’s voluntary 8 compliance with a prohibited provision, the court may award the 9 tenant an amount not to exceed three months’ periodic rent and 10 reasonable attorney fees. 11 The bill also makes a procedural change relating to 12 jurisdiction in actions for forcible entry and detainer. 13 -3- LSB 1901YC (4) 88 js/rn 3/ 3