H.F. 2731 Section 1. NEW SECTION . 216A.100 Percentage of income 1 payment plan program. 2 1. For purposes of this section, unless the context 3 otherwise requires: 4 a. “Arreared amount” means an individual’s unpaid balance 5 with a utility company as noted by the department in subsection 6 5, paragraph “a” , minus any amounts the department has 7 contributed toward the payment of the noted unpaid balance. 8 b. “Percentage of income payment plan program” or “program” 9 means the percentage of income payment plan program established 10 under this section. 11 c. “Utility company” means an owner or operator of an 12 electric or gas transmission or distribution facility subject 13 to regulation and enforcement by the Iowa utilities commission. 14 2. The department shall establish and administer a 15 percentage of income payment plan program. 16 3. The program shall be available to each individual who 17 qualifies for the low-income home energy assistance program. 18 An individual who is enrolled in the program shall not receive 19 benefits from the low-income home energy assistance program. 20 4. a. Each utility company shall cease collection of each 21 unpaid balance for an individual enrolled in the program until 22 the individual is discharged from the program. 23 b. Interest shall not accrue on unpaid balances subject to 24 this subsection. 25 c. Upon an individual’s discharge from the program, the 26 individual’s arreared amount, if any, shall become immediately 27 due. 28 5. Upon the department’s approval to enroll or reenroll an 29 individual in the program, all of the following shall occur: 30 a. The department shall note the unpaid balance the 31 individual has with each utility company. 32 b. (1) The department shall develop a payment plan for the 33 individual based on the individual’s annual gross income. 34 (2) The payment plan shall require the individual to pay a 35 -1- LSB 5792YH (3) 91 ak/ko 1/ 4

H.F. 2731 percentage of the individual’s gross monthly income toward the 1 individual’s electric and gas utility bills. The percentage an 2 individual pays for the individual’s electric and gas utility 3 bills shall not exceed the greater of one hundred dollars or 4 six percent of the individual’s gross monthly income, and 5 shall not be less than the lower of five dollars or two and 6 four-tenths percent of the individual’s gross monthly income. 7 6. When the department receives notice that each utility 8 company has received a monthly payment from an individual 9 pursuant to the individual’s payment plan, the following shall 10 occur: 11 a. The department shall pay the balance of the individual’s 12 electric and gas utility bills for the month for which the 13 individual made payment. 14 b. The department shall pay an amount equal to the amount 15 paid under the payment plan toward the individual’s arreared 16 amount. If the individual has unpaid balances with more than 17 one utility company, the payment shall be divided equally 18 between each utility company. 19 7. An individual shall be required to apply for reenrollment 20 in the program within one calendar year of the date the 21 department approves the individual’s reenrollment in the 22 program. 23 8. The department shall adopt rules pursuant to chapter 17A 24 to administer this section, including but not limited to all 25 of the following: 26 a. Standards for when an individual shall be discharged from 27 the program. 28 b. Graduated scales for an individual’s monthly payments 29 based on the individual’s gross monthly income. 30 EXPLANATION 31 The inclusion of this explanation does not constitute agreement with 32 the explanation’s substance by the members of the general assembly. 33 This bill establishes the percentage of income payment plan 34 program (PIPP). 35 -2- LSB 5792YH (3) 91 ak/ko 2/ 4

H.F. 2731 The bill defines “arreared amount” as an individual’s unpaid 1 balance with a utility company as noted by the department of 2 health and human services (HHS) when the individual becomes 3 enrolled in PIPP, minus any amounts HHS has contributed toward 4 the payment of the noted unpaid balance. 5 The bill also defines “percentage of income payment plan 6 program”, “program”, and “utility company”. 7 The bill requires HHS to establish and administer PIPP. 8 PIPP shall be available to each individual who qualifies for 9 the low-income home energy assistance program (LIHEAP), and an 10 individual who is enrolled in PIPP shall not receive benefits 11 from the LIHEAP. 12 The bill requires each utility company to cease collection 13 of each unpaid balance for an individual enrolled in PIPP until 14 the individual is discharged from the program. Interest shall 15 not accrue on the unpaid balances, and upon an individual’s 16 discharge from PIPP, any amount remaining in the individual’s 17 arreared amount shall become immediately due. 18 The bill requires, upon HHS’s approval to enroll or reenroll 19 an individual in PIPP, HHS to note the unpaid balances the 20 individual has with each utility company as the individual’s 21 starting arreared amount and develop a payment plan for the 22 individual based on the individual’s annual gross income. 23 The payment plan shall require the individual to pay a 24 percentage of the individual’s gross monthly income toward the 25 individual’s electric and gas utility bills. The percentage an 26 individual pays for the individual’s electric and gas utility 27 bills shall not exceed the greater of $100 or 6 percent of 28 the individual’s gross monthly income, and shall not be less 29 than the lower of $5 or 2.4 percent of the individual’s gross 30 monthly income. 31 When HHS receives a monthly payment from an individual 32 pursuant to the individual’s payment plan, the bill requires 33 HHS to pay the balance of the individual’s electric and gas 34 utility bills for the month for which the individual made 35 -3- LSB 5792YH (3) 91 ak/ko 3/ 4

H.F. 2731 payment, and pay an amount equal to that amount paid under 1 the payment plan toward the individual’s arreared amount. If 2 the individual has unpaid balances with more than one utility 3 company, the payment shall be divided equally between each 4 utility company. 5 The bill requires an individual to apply for reenrollment 6 in PIPP within one calendar year of the date HHS approves the 7 individual’s reenrollment in PIPP. 8 The bill requires HHS to adopt rules to administer PIPP, 9 including but not limited to standards for when an individual 10 shall be discharged from PIPP, and graduated scales for an 11 individual’s monthly payments based on the individual’s gross 12 monthly income. 13 -4- LSB 5792YH (3) 91 ak/ko 4/ 4