Senate File 2353 - Introduced SENATE FILE 2353 BY WESTRICH A BILL FOR An Act relating to residential tenant responsibility for 1 utility charges, providing civil penalties, and including 2 applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 6123XS (2) 91 lh/jh

S.F. 2353 Section 1. Section 384.84, Code 2026, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 9A. A city or city utility shall not 3 assess, certify, or collect unpaid utility charges as a lien 4 against real property if the utility service was provided to 5 a tenant who, under a rental agreement, was responsible for 6 payment of the utility charges. 7 Sec. 2. NEW SECTION . 562A.9A Tenant responsibility for 8 utility charges —— enforcement. 9 1. For purposes of this section, “utility” means a public, 10 municipal, or cooperative owned system that provides water, 11 sewer, sanitary sewer, storm water, electric, natural gas, or 12 other similar utility service to residential rental property. 13 2. If a utility service account is established in the name 14 of a tenant, or if a rental agreement provides that the tenant 15 is responsible for payment of utility charges, the landlord 16 shall not be liable for any unpaid utility charges incurred by 17 the tenant. 18 3. A utility shall not do any of the following to collect 19 unpaid utility charges incurred by a tenant: 20 a. Bill, charge, or seek payment from the landlord. 21 b. Transfer or attempt to transfer an unpaid balance to an 22 account of the landlord. 23 c. Condition the initiation, continuation, or restoration of 24 utility service to the premises on payment by the landlord. 25 d. File, record, certify, or threaten to file, record, or 26 certify a lien, assessment, or other encumbrance against the 27 landlord’s real property. 28 e. Use any indirect act or practice intended to compel 29 payment by the landlord. 30 4. A utility shall maintain separate billing and collection 31 accounts for tenants who are responsible for payment of utility 32 charges and shall pursue collection solely against the tenant. 33 5. A utility that violates this section is subject to 34 a civil penalty of not less than five hundred dollars and 35 -1- LSB 6123XS (2) 91 lh/jh 1/ 4

S.F. 2353 not more than five thousand dollars for each violation. 1 Each billing statement, collection notice, lien filing, 2 certification, or other collection attempt constitutes a 3 separate violation. 4 6. A landlord aggrieved by a violation of this section may 5 bring a civil action to recover any of the following: 6 a. Actual damages. 7 b. Statutory damages of one thousand dollars for each 8 violation. 9 c. Injunctive or declaratory relief. 10 d. Reasonable attorney fees and court costs. 11 7. If a lien, assessment, or certification is filed or 12 recorded in violation of this section, the utility shall 13 release the lien or assessment within ten days after receipt of 14 written notice from the landlord. Failure to timely release 15 the lien or assessment constitutes a separate violation of this 16 section. 17 8. The attorney general may enforce this section as an 18 unlawful practice under section 714.16 and may seek civil 19 penalties, restitution, and injunctive relief. 20 Sec. 3. APPLICABILITY. This Act applies to utility 21 billing, collection activity, lien filings, certifications, and 22 enforcement actions occurring on or after the effective date of 23 this Act, regardless of when the rental agreement was executed. 24 EXPLANATION 25 The inclusion of this explanation does not constitute agreement with 26 the explanation’s substance by the members of the general assembly. 27 This bill relates to the responsibility for payment of 28 utility charges incurred by tenants of residential units and 29 provides enforcement mechanisms and penalties. 30 The bill prohibits a city or city utility from assessing, 31 certifying, or collecting unpaid utility charges as a lien 32 against real property when the utility service was provided to 33 a tenant who, under a rental agreement, was responsible for 34 payment of the utility charges under the bill. 35 -2- LSB 6123XS (2) 91 lh/jh 2/ 4

S.F. 2353 The bill provides that when a utility service account is 1 established in the name of a tenant of a residential unit, or 2 when a rental agreement assigns responsibility for utility 3 payments to the tenant, the landlord is not liable for unpaid 4 utility charges incurred by the tenant. 5 The bill prohibits a utility company from engaging in 6 specified practices to collect a tenant’s unpaid utility 7 charges, including billing or charging the landlord, 8 transferring unpaid balances to a landlord’s account, 9 conditioning utility service to the premises on payment by 10 the landlord, filing or threatening to file a lien or other 11 encumbrance against the landlord’s real property, or using 12 indirect practices to compel payment by the landlord. 13 The bill requires utilities to maintain separate billing and 14 collection accounts for tenants who are responsible for payment 15 of utility charges and requires utility companies to pursue 16 collection solely against the tenant. 17 The bill establishes civil penalties for violations in an 18 amount of not less than $500 and not more than $5,000 per 19 violation, with each billing statement, collection notice, lien 20 filing, certification, or other collection attempt constituting 21 a separate violation. 22 The bill authorizes a landlord aggrieved by a violation 23 to bring a civil action to recover actual damages, statutory 24 damages of $1,000 per violation, injunctive or declaratory 25 relief, and reasonable attorney fees and court costs. 26 The bill requires a utility company that files or records 27 a lien, assessment, or certification in violation of the bill 28 to release the lien or assessment within 10 days of receipt of 29 written notice from the landlord. Failure to timely release 30 the lien or assessment constitutes a separate violation. 31 The bill authorizes the attorney general to enforce the bill 32 as an unlawful practice under Code section 714.16 (consumer 33 fraud) and to seek civil penalties, restitution, and injunctive 34 relief. 35 -3- LSB 6123XS (2) 91 lh/jh 3/ 4

S.F. 2353 The bill applies to utility billing, collection activity, 1 lien filings, certifications, and enforcement actions occurring 2 on or after the effective date of the bill, regardless of when 3 the rental agreement was executed. 4 -4- LSB 6123XS (2) 91 lh/jh 4/ 4