House File 2227 - Introduced HOUSE FILE 2227 BY SIEGRIST (COMPANION TO SF 2106 BY SHIPLEY) A BILL FOR An Act relating to landlords and tenants, including rental 1 property utilities, the definition of rent, and forcible 2 entry and detainer actions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5770HH (4) 89 cm/jh

H.F. 2227 Section 1. Section 384.84, subsection 4, paragraph d, 1 subparagraphs (1) and (2), Code 2022, are amended to read as 2 follows: 3 (1) Residential or commercial rental property where 4 a charge for water service is separately metered and paid 5 directly to the city utility or enterprise by the tenant is 6 exempt from a lien for delinquent rates or charges associated 7 with such water service if the landlord gives written notice to 8 the city utility or enterprise that the property is residential 9 or commercial rental property and that the tenant is liable 10 for the rates or charges. A city utility or enterprise may 11 require a deposit not exceeding the usual cost of ninety days 12 of water service to be paid to the utility or enterprise. Upon 13 receipt, the utility or enterprise shall acknowledge the notice 14 and deposit. A written notice shall contain the name of the 15 tenant responsible for charges, address of the residential or 16 commercial rental property that the tenant is to occupy, and 17 the date that the occupancy begins. 18 (2) A change in tenant for a residential rental property 19 shall require a new written notice to be given to the city 20 utility or enterprise within thirty business days of the change 21 in tenant. A change in tenant for a commercial rental property 22 shall require a new written notice to be given to the city 23 utility or enterprise within ten business days of the change 24 in tenant. When the tenant moves from the rental property, 25 the city utility or enterprise shall return the deposit if the 26 water service charges are paid in full. 27 Sec. 2. Section 384.84, subsection 4, paragraph e, Code 28 2022, is amended to read as follows: 29 e. Residential rental property where a charge for any of the 30 services of sewer systems, storm water drainage systems, sewage 31 treatment, solid waste collection, and solid waste disposal 32 is paid directly to the city utility or enterprise by the 33 tenant is exempt from a lien for delinquent rates or charges 34 associated with such services if the landlord gives written 35 -1- LSB 5770HH (4) 89 cm/jh 1/ 5

H.F. 2227 notice to the city utility or enterprise that the property is 1 residential rental property and that the tenant is liable for 2 the rates or charges. A city utility or enterprise may require 3 a deposit not exceeding the usual cost of ninety days of the 4 services of sewer systems, storm water drainage systems, sewage 5 treatment, solid waste collection, and solid waste disposal 6 to be paid to the utility or enterprise. A city utility or 7 enterprise may require a deposit not exceeding the usual cost 8 of sixty days of the services of gas and electric to be paid 9 to the utility or enterprise. Upon receipt, the utility or 10 enterprise shall acknowledge the notice and deposit. A written 11 notice shall contain the name of the tenant responsible for 12 the charges, the address of the residential rental property 13 that the tenant is to occupy , and the date that the occupancy 14 begins. A change in tenant shall require a new written notice 15 to be given to the city utility or enterprise within thirty 16 business days of the change in tenant. When the tenant moves 17 from the rental property, the city utility or enterprise shall 18 return the deposit if the charges for the services of gas, 19 electric, sewer systems, storm water drainage systems, sewage 20 treatment, solid waste collection, and solid waste disposal are 21 paid in full. A change in the ownership of the residential 22 rental property shall require written notice of such change 23 to be given to the city utility or enterprise within thirty 24 business days of the completion of the change of ownership. 25 The lien exemption for rental property does not apply to 26 charges for repairs related to a service of sewer systems, 27 storm water drainage systems, sewage treatment, solid waste 28 collection, and solid waste disposal if the repair charges 29 become delinquent. 30 Sec. 3. Section 562A.6, subsection 10, Code 2022, is amended 31 to read as follows: 32 10. “Rent” means a payment to be made to the landlord under 33 the rental agreement , including base rent, utilities, late 34 fees, and other payments made by the tenant to the landlord 35 -2- LSB 5770HH (4) 89 cm/jh 2/ 5

H.F. 2227 under the rental agreement . 1 Sec. 4. Section 562A.12, subsection 3, paragraph a, Code 2 2022, is amended by adding the following new subparagraph: 3 NEW SUBPARAGRAPH . (4) To satisfy debts for a tenant’s 4 delinquent utility account. 5 Sec. 5. Section 562B.7, subsection 10, Code 2022, is amended 6 to read as follows: 7 10. “Rent” means a payment to be made to the landlord under 8 the rental agreement , including base rent, utilities, late 9 fees, and other payments made by the tenant to the landlord 10 under the rental agreement . 11 Sec. 6. Section 648.5, subsections 1 and 3, Code 2022, are 12 amended to read as follows: 13 1. a. An action for forcible entry and detainer shall 14 be brought in a county where all or part of the premises is 15 located. Such an action shall be tried as an equitable action. 16 Upon receipt of the petition, the court shall set a date, time, 17 and place for hearing. The court shall set the date of hearing 18 no later than eight days from the filing date, except that the 19 court shall set a later hearing date no later than fifteen days 20 from the date of filing if the plaintiff requests or consents 21 to the later date of hearing. 22 b. The requirement regarding the setting of the initial 23 hearing in paragraph “a” is not a jurisdictional requirement and 24 does not affect the court’s subject matter jurisdiction to hear 25 the action for forcible entry and detainer. 26 3. Service of original notice by mail is deemed completed 27 four days after the notice is deposited in the mail and 28 postmarked for delivery, whether or not the recipient signs a 29 receipt for the original notice. In computing the time for 30 completion of service, the first day shall be excluded and the 31 final day shall be included regardless of whether the fourth 32 day is a Saturday, Sunday, or federal holiday. 33 EXPLANATION 34 The inclusion of this explanation does not constitute agreement with 35 -3- LSB 5770HH (4) 89 cm/jh 3/ 5

H.F. 2227 the explanation’s substance by the members of the general assembly. 1 This bill relates to landlords and tenants, including 2 utilities at rental properties, usage of security deposits, 3 the definition of rent, and service and initial hearing dates 4 for forcible entry and detainer actions. Under current law, 5 for a residential or commercial rental property to be exempt 6 from a lien for delinquent rates or charges imposed by a city 7 utility or enterprise, a landlord must provide the name of a 8 tenant who is responsible for charges to the city utility or 9 enterprise when the tenant is delinquent in paying rates or 10 charges. A landlord must provide a new notice if a tenant that 11 is responsible for a delinquency moves out. 12 The bill removes the requirement that a landlord provide 13 the name of a tenant that is responsible for a delinquency in 14 a notice to a city utility or enterprise. The bill removes 15 the requirement that a landlord provide a new notice to a 16 city utility or enterprise if the tenant responsible for a 17 delinquency moves out. 18 The bill expands the definition of “rent” to include base 19 rent, utilities, late fees, and other payments made by the 20 tenant to the landlord under the rental agreement for purposes 21 of Code chapters 562A (residential landlord and tenant law) and 22 562B (mobile home park landlord and tenant law). 23 The bill provides that the landlord may withhold from a 24 tenant’s security deposit amounts as reasonably necessary to 25 pay for delinquent utility accounts the tenant was responsible 26 to pay during the tenancy. 27 Under current law, a court is required to set the date 28 of hearing for a forcible entry and detainer no later than 29 eight days from the filing date, except that the court shall 30 set a later hearing date no later than 15 days from the date 31 of filing if the plaintiff requests or consents to the later 32 date of hearing. The bill provides that the time requirements 33 for the setting of an initial hearing in a forcible entry 34 and detainer action are not jurisdictional and do not affect 35 -4- LSB 5770HH (4) 89 cm/jh 4/ 5

H.F. 2227 subject matter jurisdiction of a court to hear the action. The 1 bill also provides that in computing time for completion of 2 service of the original notice by mail in a forcible entry and 3 detainer action, the first day shall be excluded and the final 4 day shall be included regardless of whether the day falls on 5 a weekend or federal holiday. 6 -5- LSB 5770HH (4) 89 cm/jh 5/ 5