House File 658 - Introduced HOUSE FILE 658 BY BACON A BILL FOR An Act relating to utilities at rental properties, including 1 landlord notification of delinquency notices sent by 2 utilities, landlord notification requirements to utilities, 3 and permitting landlords to use security deposits to satisfy 4 delinquent utility accounts. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 2467HH (3) 89 cm/jh

H.F. 658 Section 1. Section 384.84, subsection 4, paragraph d, 1 subparagraphs (1) and (2), Code 2021, 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 2021, 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 2467HH (3) 89 cm/jh 1/ 3

H.F. 658 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.12, subsection 3, paragraph a, Code 31 2021, is amended by adding the following new subparagraph: 32 NEW SUBPARAGRAPH . (4) To satisfy debts for a tenant’s 33 delinquent utility account. 34 EXPLANATION 35 -2- LSB 2467HH (3) 89 cm/jh 2/ 3

H.F. 658 The inclusion of this explanation does not constitute agreement with 1 the explanation’s substance by the members of the general assembly. 2 Under current law, for a residential or commercial rental 3 property to be exempt from a lien for delinquent rates or 4 charges imposed by a city utility or enterprise, a landlord 5 must provide the name of a tenant who is responsible for 6 charges to the city utility or enterprise when the tenant is 7 delinquent in paying rates or charges. A landlord must provide 8 a new notice if a tenant that is responsible for a delinquency 9 moves out. 10 This bill removes the requirement that a landlord provide 11 the name of a tenant that is responsible for a delinquency in 12 a notice to a city utility or enterprise. The bill removes 13 the requirement that a landlord provide a new notice to a 14 city utility or enterprise if the tenant responsible for a 15 delinquency moves out. 16 The bill provides that the landlord may withhold from a 17 tenant’s security deposit amounts as reasonably necessary to 18 pay for delinquent utility accounts the tenant was responsible 19 to pay during the tenancy. 20 -3- LSB 2467HH (3) 89 cm/jh 3/ 3