SF 552 (LSB 1943SV (3) 89)

SENATE FILE 552

BY  COMMITTEE ON COMMERCE

(SUCCESSOR TO SF 135)

A BILL FOR

An Act relating to utilities at rental properties and landlords’ ability to use security deposits to satisfy delinquent utility accounts.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 384.84, subsection 3, paragraph c, Code 2021, is amended to read as follows:
   c.  A city utility or enterprise service to a property or premises shall not be discontinued or disconnected unless prior written notice is sent, by ordinary mail, to the account holder in whose name the delinquent rates or charges were incurred, informing the account holder of the nature of the delinquency and affording the account holder the opportunity for a hearing prior to discontinuance or disconnection of service. If the account holder is a tenant, and if the owner or landlord of the property or premises has made a written request for notice, the notice shall also be given to the owner or landlord within thirty days of the delinquency. If the account holder is a tenant and requests a change of name for service under the account, such request shall be sent to the owner or landlord of the property if the owner or landlord has made a written request for notice of any change of name for service under the account to the rental property.
    Sec. 2.  Section 384.84, subsection 4, paragraph d, subparagraphs (1) and (2), Code 2021, are amended to read as follows:
   (1)  Residential or commercial rental property where a charge for water service is separately metered and paid directly to the city utility or enterprise by the tenant is exempt from a lien for delinquent rates or charges associated with such water service if the landlord gives written notice to the city utility or enterprise that the property is residential or commercial rental property and that the tenant is liable for the rates or charges. A city utility or enterprise may require a deposit not exceeding the usual cost of ninety days of water service to be paid to the utility or enterprise. Upon receipt, the utility or enterprise shall acknowledge the notice and deposit. A written notice shall contain the name of the tenant responsible for charges, address of the residential or commercial rental property that the tenant is to occupy, and the date that the occupancy begins.
   (2)  A change in tenant for a residential rental property shall require a new written notice to be given to the city utility or enterprise within thirty business days of the change in tenant. A change in tenant for a commercial rental property shall require a new written notice to be given to the city utility or enterprise within ten business days of the change in tenant. When the tenant moves from the rental property, the city utility or enterprise shall return the deposit if the water service charges are paid in full.
    Sec. 3.  Section 384.84, subsection 4, paragraph e, Code 2021, is amended to read as follows:
   e.  Residential rental property where a charge for any of the services of sewer systems, storm water drainage systems, sewage treatment, solid waste collection, and solid waste disposal is paid directly to the city utility or enterprise by the tenant is exempt from a lien for delinquent rates or charges associated with such services if the landlord gives written notice to the city utility or enterprise that the property is residential rental property and that the tenant is liable for the rates or charges. A city utility or enterprise may require a deposit not exceeding the usual cost of ninety days of the services of sewer systems, storm water drainage systems, sewage treatment, solid waste collection, and solid waste disposal to be paid to the utility or enterprise. A city utility or enterprise may require a deposit not exceeding the usual cost of sixty days of the services of gas and electric to be paid to the utility or enterprise. Upon receipt, the utility or enterprise shall acknowledge the notice and deposit. A written notice shall contain the name of the tenant responsible for the charges, the address of the residential rental property that the tenant is to occupy, and the date that the occupancy begins. A change in tenant shall require a new written notice to be given to the city utility or enterprise within thirty business days of the change in tenant. When the tenant moves from the rental property, the city utility or enterprise shall return the deposit if the charges for the services of gas, electric, sewer systems, storm water drainage systems, sewage treatment, solid waste collection, and solid waste disposal are paid in full. A change in the ownership of the residential rental property shall require written notice of such change to be given to the city utility or enterprise within thirty business days of the completion of the change of ownership. The lien exemption for rental property does not apply to charges for repairs related to a service of sewer systems, storm water drainage systems, sewage treatment, solid waste collection, and solid waste disposal if the repair charges become delinquent.
    Sec. 4.  Section 562A.12, subsection 3, paragraph a, Code 2021, is amended by adding the following new subparagraph:
   NEW SUBPARAGRAPH.  (4)  To satisfy debts for a tenant’s delinquent utility account.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to utilities at rental properties. 
   Under current law, an owner or landlord may request to receive a copy of the written notice of delinquent rates or charges sent by a city utility or enterprise service to an account holder. The bill specifies that such notice must be provided to the owner or landlord within 30 days of the delinquency.
   Under current law, for a residential or commercial rental property to be exempt from a lien for delinquent rates or charges imposed by a city utility or enterprise, a landlord must provide the name of a tenant who is responsible for charges to the city utility or enterprise when the tenant is delinquent in paying rates or charges. A landlord must provide a new notice if a tenant that is responsible for a delinquency moves out.
   The bill removes the requirement that a landlord provide the name of a tenant that is responsible for a delinquency in a notice to a city utility or enterprise. The bill removes the requirement that a landlord provide a new notice to a city utility or enterprise if the tenant responsible for a delinquency moves out.
   The bill provides that the landlord may withhold from a tenant’s security deposit amounts as reasonably necessary to pay for delinquent utility accounts the tenant was responsible to pay during the tenancy.