Senate File 2235 - Introduced SENATE FILE 2235 BY WESTRICH A BILL FOR An Act relating to sewer services provided by a city utility, 1 including establishing procedures for water that does not 2 enter the sewer system. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 6124XS (3) 91 sb/js

S.F. 2235 Section 1. NEW SECTION . 384.84B Sewer charges —— unearned 1 fees. 2 1. The general assembly finds that municipal sewer charges 3 are intended to recover costs associated with actual wastewater 4 collection, treatment, and disposal. In cases of water leaks, 5 pipe failures, or similar conditions, water may be released 6 into soil, ground, or the environment without entering the 7 sanitary sewer system. Charging sewer service fees for water 8 that did not utilize sewer services constitutes a fee for 9 services not rendered. The retention of such charges is 10 inequitable, unearned, and contrary to principles of fairness 11 and public trust. It is therefore the intent of the general 12 assembly to ensure that sewer fees are based on actual sewer 13 usage, and municipalities do not collect or retain sewer 14 charges for water that did not enter the sewer system. 15 2. A city utility shall not charge, assess, or retain sewer 16 service fees for water that is demonstrated to have not entered 17 the sewer system due to any of the following: 18 a. Water line leak. 19 b. Service line failure. 20 c. Metered water loss to ground or environment. 21 d. Any other condition in which sewer services were not 22 utilized. 23 3. Upon reasonable verification of a qualifying water loss, 24 the city or municipal utility shall take the following actions: 25 a. Adjust the sewer service charges for the affected billing 26 period. 27 b. Refund any sewer service fees improperly collected. 28 4. a. A city may require reasonable documentation to verify 29 water loss, including the following: 30 (1) Repair invoices. 31 (2) Plumber certification. 32 (3) Utility inspection reports. 33 (4) Other evidence of leakage or loss. 34 b. A city shall not impose unreasonable evidentiary burdens 35 -1- LSB 6124XS (3) 91 sb/js 1/ 3

S.F. 2235 or arbitrary denial standards. 1 5. Requests for adjustment or refund shall be accepted for 2 a period of not less than twelve months following the billing 3 date in which the water loss occurred. 4 6. A city shall not adopt an ordinance or policy or 5 otherwise regulate a utility in a manner that limits, waives, 6 or circumvents the requirements of this section. 7 7. Any customer believed to have been affected by a 8 violation of this section may take any of the following 9 actions: 10 a. File a complaint with the office of ombudsman. 11 b. Seek recovery through civil action for improperly 12 collected fees, including court costs. 13 8. This section applies to all city utilities, and customers 14 of the city utility, operating sewer systems in Iowa. 15 EXPLANATION 16 The inclusion of this explanation does not constitute agreement with 17 the explanation’s substance by the members of the general assembly. 18 This bill relates to sewer services provided by a city 19 utility, including establishing procedures for water that does 20 not enter the sewer system. 21 The bill provides findings of the general assembly that 22 municipal sewer charges are intended to recover costs 23 associated with actual wastewater collection, treatment, and 24 disposal. When water is lost due to leaks, pipe failures, 25 or similar conditions, and does not enter the sewer system, 26 charging sewer service fees for that water constitutes a 27 fee for services not rendered and is inequitable. The bill 28 declares the intent of the general assembly that sewer fees 29 should be based on actual sewer usage. 30 The bill prohibits a city utility from charging, assessing, 31 or retaining sewer service fees for water that is demonstrated 32 to have not entered the sewer system due to a water line leak, 33 service line failure, metered water loss to the ground or 34 environment, or any other condition in which sewer services 35 -2- LSB 6124XS (3) 91 sb/js 2/ 3

S.F. 2235 were not utilized. The bill requires, upon reasonable 1 verification of a qualifying water loss, the city or municipal 2 utility to adjust the sewer service charges for the affected 3 billing period and refund any sewer service fees that were 4 improperly collected. 5 The bill authorizes a city to require reasonable 6 documentation to verify water loss, including repair invoices, 7 plumber certifications, utility inspection reports, or other 8 evidence of leakage or loss. The bill provides that a city 9 may not impose unreasonable evidentiary requirements or apply 10 arbitrary standards to deny adjustments or refunds. 11 The bill requires requests for sewer charge adjustments or 12 refunds to be accepted for a period of not less than 12 months 13 following the billing date in which the water loss occurred. 14 The bill prohibits a city from adopting an ordinance or 15 policy or otherwise regulating a utility in a manner that 16 limits, waives, or circumvents the requirements of the bill. 17 The bill provides that a customer believed to have been 18 affected by a violation of the bill may file a complaint 19 with the office of ombudsman or seek recovery of improperly 20 collected fees through a civil action, including court costs. 21 The bill applies to all city utilities operating sewer 22 systems in Iowa and to customers of those city utilities. 23 -3- LSB 6124XS (3) 91 sb/js 3/ 3