SF 2235 (LSB 6124XS (3) 91)

SENATE FILE 2235

BY  WESTRICH

A BILL FOR

An Act relating to sewer services provided by a city utility, including establishing procedures for water that does not enter the sewer system.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  384.84B  Sewer charges —— unearned fees.
   1.  The general assembly finds that municipal sewer charges are intended to recover costs associated with actual wastewater collection, treatment, and disposal. In cases of water leaks, pipe failures, or similar conditions, water may be released into soil, ground, or the environment without entering the sanitary sewer system. Charging sewer service fees for water that did not utilize sewer services constitutes a fee for services not rendered. The retention of such charges is inequitable, unearned, and contrary to principles of fairness and public trust. It is therefore the intent of the general assembly to ensure that sewer fees are based on actual sewer usage, and municipalities do not collect or retain sewer charges for water that did not enter the sewer system.
   2.  A city utility shall not charge, assess, or retain sewer service fees for water that is demonstrated to have not entered the sewer system due to any of the following:
   a.  Water line leak.
   b.  Service line failure.
   c.  Metered water loss to ground or environment.
   d.  Any other condition in which sewer services were not utilized.
   3.  Upon reasonable verification of a qualifying water loss, the city or municipal utility shall take the following actions:
   a.  Adjust the sewer service charges for the affected billing period.
   b.  Refund any sewer service fees improperly collected.
   4.  a.  A city may require reasonable documentation to verify water loss, including the following:
   (1)  Repair invoices.
   (2)  Plumber certification.
   (3)  Utility inspection reports.
   (4)  Other evidence of leakage or loss.
   b.  A city shall not impose unreasonable evidentiary burdens or arbitrary denial standards.
   5.  Requests for adjustment or refund shall be accepted for a period of not less than twelve months following the billing date in which the water loss occurred.
   6.  A city shall not adopt an ordinance or policy or otherwise regulate a utility in a manner that limits, waives, or circumvents the requirements of this section.
   7.  Any customer believed to have been affected by a violation of this section may take any of the following actions:
   a.  File a complaint with the office of ombudsman.
   b.  Seek recovery through civil action for improperly collected fees, including court costs.
   8.  This section applies to all city utilities, and customers of the city utility, operating sewer systems in Iowa.
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 sewer services provided by a city utility, including establishing procedures for water that does not enter the sewer system.
   The bill provides findings of the general assembly that municipal sewer charges are intended to recover costs associated with actual wastewater collection, treatment, and disposal. When water is lost due to leaks, pipe failures, or similar conditions, and does not enter the sewer system, charging sewer service fees for that water constitutes a fee for services not rendered and is inequitable. The bill declares the intent of the general assembly that sewer fees should be based on actual sewer usage.
   The bill prohibits a city utility from charging, assessing, or retaining sewer service fees for water that is demonstrated to have not entered the sewer system due to a water line leak, service line failure, metered water loss to the ground or environment, or any other condition in which sewer services were not utilized. The bill requires, upon reasonable verification of a qualifying water loss, the city or municipal utility to adjust the sewer service charges for the affected billing period and refund any sewer service fees that were improperly collected.
   The bill authorizes a city to require reasonable documentation to verify water loss, including repair invoices, plumber certifications, utility inspection reports, or other evidence of leakage or loss. The bill provides that a city may not impose unreasonable evidentiary requirements or apply arbitrary standards to deny adjustments or refunds.
   The bill requires requests for sewer charge adjustments or refunds to be accepted for a period of not less than 12 months following the billing date in which the water loss occurred.
   The bill prohibits a city from adopting an ordinance or policy or otherwise regulating a utility in a manner that limits, waives, or circumvents the requirements of the bill.
   The bill provides that a customer believed to have been affected by a violation of the bill may file a complaint with the office of ombudsman or seek recovery of improperly collected fees through a civil action, including court costs.
   The bill applies to all city utilities operating sewer systems in Iowa and to customers of those city utilities.