HF 2731 (LSB 5792YH (3) 91)

HOUSE FILE 2731

BY  McBURNEY

A BILL FOR

An Act establishing the percentage of income payment plan program to be administered by the department of health and human services.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  216A.100  Percentage of income payment plan program.
   1.  For purposes of this section, unless the context otherwise requires:
   a.  “Arreared amount” means an individual’s unpaid balance with a utility company as noted by the department in subsection 5, paragraph “a”, minus any amounts the department has contributed toward the payment of the noted unpaid balance.
   b.  “Percentage of income payment plan program” or “program” means the percentage of income payment plan program established under this section.
   c.  “Utility company” means an owner or operator of an electric or gas transmission or distribution facility subject to regulation and enforcement by the Iowa utilities commission.
   2.  The department shall establish and administer a percentage of income payment plan program.
   3.  The program shall be available to each individual who qualifies for the low-income home energy assistance program. An individual who is enrolled in the program shall not receive benefits from the low-income home energy assistance program.
   4.  a.  Each utility company shall cease collection of each unpaid balance for an individual enrolled in the program until the individual is discharged from the program.
   b.  Interest shall not accrue on unpaid balances subject to this subsection.
   c.  Upon an individual’s discharge from the program, the individual’s arreared amount, if any, shall become immediately due.
   5.  Upon the department’s approval to enroll or reenroll an individual in the program, all of the following shall occur:
   a.  The department shall note the unpaid balance the individual has with each utility company.
   b.  (1)  The department shall develop a payment plan for the individual based on the individual’s annual gross income.
   (2)  The payment plan shall require the individual to pay a percentage of the individual’s gross monthly income toward the individual’s electric and gas utility bills. The percentage an individual pays for the individual’s electric and gas utility bills shall not exceed the greater of one hundred dollars or six percent of the individual’s gross monthly income, and shall not be less than the lower of five dollars or two and four-tenths percent of the individual’s gross monthly income.
   6.  When the department receives notice that each utility company has received a monthly payment from an individual pursuant to the individual’s payment plan, the following shall occur:
   a.  The department shall pay the balance of the individual’s electric and gas utility bills for the month for which the individual made payment.
   b.  The department shall pay an amount equal to the amount paid under the payment plan toward the individual’s arreared amount. If the individual has unpaid balances with more than one utility company, the payment shall be divided equally between each utility company.
   7.  An individual shall be required to apply for reenrollment in the program within one calendar year of the date the department approves the individual’s reenrollment in the program.
   8.  The department shall adopt rules pursuant to chapter 17A to administer this section, including but not limited to all of the following:
   a.  Standards for when an individual shall be discharged from the program.
   b.  Graduated scales for an individual’s monthly payments based on the individual’s gross monthly income.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill establishes the percentage of income payment plan program (PIPP).
   The bill defines “arreared amount” as an individual’s unpaid balance with a utility company as noted by the department of health and human services (HHS) when the individual becomes enrolled in PIPP, minus any amounts HHS has contributed toward the payment of the noted unpaid balance.
   The bill also defines “percentage of income payment plan program”, “program”, and “utility company”.
   The bill requires HHS to establish and administer PIPP. PIPP shall be available to each individual who qualifies for the low-income home energy assistance program (LIHEAP), and an individual who is enrolled in PIPP shall not receive benefits from the LIHEAP.
   The bill requires each utility company to cease collection of each unpaid balance for an individual enrolled in PIPP until the individual is discharged from the program. Interest shall not accrue on the unpaid balances, and upon an individual’s discharge from PIPP, any amount remaining in the individual’s arreared amount shall become immediately due.
   The bill requires, upon HHS’s approval to enroll or reenroll an individual in PIPP, HHS to note the unpaid balances the individual has with each utility company as the individual’s starting arreared amount and develop a payment plan for the individual based on the individual’s annual gross income. The payment plan shall require the individual to pay a percentage of the individual’s gross monthly income toward the individual’s electric and gas utility bills. The percentage an individual pays for the individual’s electric and gas utility bills shall not exceed the greater of $100 or 6 percent of the individual’s gross monthly income, and shall not be less than the lower of $5 or 2.4 percent of the individual’s gross monthly income.
   When HHS receives a monthly payment from an individual pursuant to the individual’s payment plan, the bill requires HHS to pay the balance of the individual’s electric and gas utility bills for the month for which the individual made payment, and pay an amount equal to that amount paid under the payment plan toward the individual’s arreared amount. If the individual has unpaid balances with more than one utility company, the payment shall be divided equally between each utility company.
   The bill requires an individual to apply for reenrollment in PIPP within one calendar year of the date HHS approves the individual’s reenrollment in PIPP.
   The bill requires HHS to adopt rules to administer PIPP, including but not limited to standards for when an individual shall be discharged from PIPP, and graduated scales for an individual’s monthly payments based on the individual’s gross monthly income.