Senate File 552 - Introduced SENATE FILE 552 BY COMMITTEE ON COMMERCE (SUCCESSOR TO SF 135) A BILL FOR An Act relating to utilities at rental properties and 1 landlords’ ability to use security deposits to satisfy 2 delinquent utility accounts. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1943SV (3) 89 cm/jh
S.F. 552 Section 1. Section 384.84, subsection 3, paragraph c, Code 1 2021, is amended to read as follows: 2 c. A city utility or enterprise service to a property or 3 premises shall not be discontinued or disconnected unless prior 4 written notice is sent, by ordinary mail, to the account holder 5 in whose name the delinquent rates or charges were incurred, 6 informing the account holder of the nature of the delinquency 7 and affording the account holder the opportunity for a hearing 8 prior to discontinuance or disconnection of service. If the 9 account holder is a tenant, and if the owner or landlord of the 10 property or premises has made a written request for notice, 11 the notice shall also be given to the owner or landlord within 12 thirty days of the delinquency . If the account holder is a 13 tenant and requests a change of name for service under the 14 account, such request shall be sent to the owner or landlord 15 of the property if the owner or landlord has made a written 16 request for notice of any change of name for service under the 17 account to the rental property. 18 Sec. 2. Section 384.84, subsection 4, paragraph d, 19 subparagraphs (1) and (2), Code 2021, are amended to read as 20 follows: 21 (1) Residential or commercial rental property where 22 a charge for water service is separately metered and paid 23 directly to the city utility or enterprise by the tenant is 24 exempt from a lien for delinquent rates or charges associated 25 with such water service if the landlord gives written notice to 26 the city utility or enterprise that the property is residential 27 or commercial rental property and that the tenant is liable 28 for the rates or charges. A city utility or enterprise may 29 require a deposit not exceeding the usual cost of ninety days 30 of water service to be paid to the utility or enterprise. Upon 31 receipt, the utility or enterprise shall acknowledge the notice 32 and deposit. A written notice shall contain the name of the 33 tenant responsible for charges, address of the residential or 34 commercial rental property that the tenant is to occupy, and 35 -1- LSB 1943SV (3) 89 cm/jh 1/ 4
S.F. 552 the date that the occupancy begins. 1 (2) A change in tenant for a residential rental property 2 shall require a new written notice to be given to the city 3 utility or enterprise within thirty business days of the change 4 in tenant. A change in tenant for a commercial rental property 5 shall require a new written notice to be given to the city 6 utility or enterprise within ten business days of the change 7 in tenant. When the tenant moves from the rental property, 8 the city utility or enterprise shall return the deposit if the 9 water service charges are paid in full. 10 Sec. 3. Section 384.84, subsection 4, paragraph e, Code 11 2021, is amended to read as follows: 12 e. Residential rental property where a charge for any of the 13 services of sewer systems, storm water drainage systems, sewage 14 treatment, solid waste collection, and solid waste disposal 15 is paid directly to the city utility or enterprise by the 16 tenant is exempt from a lien for delinquent rates or charges 17 associated with such services if the landlord gives written 18 notice to the city utility or enterprise that the property is 19 residential rental property and that the tenant is liable for 20 the rates or charges. A city utility or enterprise may require 21 a deposit not exceeding the usual cost of ninety days of the 22 services of sewer systems, storm water drainage systems, sewage 23 treatment, solid waste collection, and solid waste disposal 24 to be paid to the utility or enterprise. A city utility or 25 enterprise may require a deposit not exceeding the usual cost 26 of sixty days of the services of gas and electric to be paid 27 to the utility or enterprise. Upon receipt, the utility or 28 enterprise shall acknowledge the notice and deposit. A written 29 notice shall contain the name of the tenant responsible for 30 the charges, the address of the residential rental property 31 that the tenant is to occupy , and the date that the occupancy 32 begins. A change in tenant shall require a new written notice 33 to be given to the city utility or enterprise within thirty 34 business days of the change in tenant. When the tenant moves 35 -2- LSB 1943SV (3) 89 cm/jh 2/ 4
S.F. 552 from the rental property, the city utility or enterprise shall 1 return the deposit if the charges for the services of gas, 2 electric, sewer systems, storm water drainage systems, sewage 3 treatment, solid waste collection, and solid waste disposal are 4 paid in full. A change in the ownership of the residential 5 rental property shall require written notice of such change 6 to be given to the city utility or enterprise within thirty 7 business days of the completion of the change of ownership. 8 The lien exemption for rental property does not apply to 9 charges for repairs related to a service of sewer systems, 10 storm water drainage systems, sewage treatment, solid waste 11 collection, and solid waste disposal if the repair charges 12 become delinquent. 13 Sec. 4. Section 562A.12, subsection 3, paragraph a, Code 14 2021, is amended by adding the following new subparagraph: 15 NEW SUBPARAGRAPH . (4) To satisfy debts for a tenant’s 16 delinquent utility account. 17 EXPLANATION 18 The inclusion of this explanation does not constitute agreement with 19 the explanation’s substance by the members of the general assembly. 20 This bill relates to utilities at rental properties. 21 Under current law, an owner or landlord may request to 22 receive a copy of the written notice of delinquent rates or 23 charges sent by a city utility or enterprise service to an 24 account holder. The bill specifies that such notice must 25 be provided to the owner or landlord within 30 days of the 26 delinquency. 27 Under current law, for a residential or commercial rental 28 property to be exempt from a lien for delinquent rates or 29 charges imposed by a city utility or enterprise, a landlord 30 must provide the name of a tenant who is responsible for 31 charges to the city utility or enterprise when the tenant is 32 delinquent in paying rates or charges. A landlord must provide 33 a new notice if a tenant that is responsible for a delinquency 34 moves out. 35 -3- LSB 1943SV (3) 89 cm/jh 3/ 4
S.F. 552 The bill removes the requirement that a landlord provide 1 the name of a tenant that is responsible for a delinquency in 2 a notice to a city utility or enterprise. The bill removes 3 the requirement that a landlord provide a new notice to a 4 city utility or enterprise if the tenant responsible for a 5 delinquency moves out. 6 The bill provides that the landlord may withhold from a 7 tenant’s security deposit amounts as reasonably necessary to 8 pay for delinquent utility accounts the tenant was responsible 9 to pay during the tenancy. 10 -4- LSB 1943SV (3) 89 cm/jh 4/ 4