Senate Study Bill 3128 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON LOCAL GOVERNMENT BILL BY CHAIRPERSON WEBSTER) A BILL FOR An Act relating to city utilities including tenant 1 notification. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 6081XC (1) 91 ms/js

S.F. _____ Section 1. Section 384.84, subsection 4, paragraph e, Code 1 2026, is amended to read as follows: 2 e. Residential rental property where a charge for any of the 3 services of sewer systems, storm water drainage systems, sewage 4 treatment, solid waste collection, and solid waste disposal 5 is paid directly to the city utility or enterprise by the 6 tenant is exempt from a lien for delinquent rates or charges 7 associated with such services if the landlord gives written 8 notice to the city utility or enterprise that the property is 9 residential rental property and that the tenant is liable for 10 the rates or charges. A city utility or enterprise may require 11 a deposit not exceeding the usual cost of ninety days of the 12 services of sewer systems, storm water drainage systems, sewage 13 treatment, solid waste collection, and solid waste disposal 14 to be paid to the utility or enterprise. A city utility or 15 enterprise may require a deposit not exceeding the usual cost 16 of sixty days of the services of gas and electric to be paid 17 to the utility or enterprise. Upon receipt, the utility or 18 enterprise shall acknowledge the notice and deposit. A written 19 notice shall contain the name of the tenant responsible for 20 the charges, the address of the residential rental property 21 that the tenant is to occupy, and the date that the occupancy 22 begins. A change in tenant shall require a new written 23 notice to be given to the city utility or enterprise within 24 thirty business days of the change in tenant. When a landlord 25 has an active rental license for a property, a tenant’s 26 notification to the city utility or enterprise of the tenant’s 27 responsibility or the cessation of the tenant’s responsibility 28 for utility charges shall serve as acceptable written notice. 29 When the tenant moves from the rental property, the city 30 utility or enterprise shall return the deposit if the charges 31 for the services of gas, electric, sewer systems, storm water 32 drainage systems, sewage treatment, solid waste collection, 33 and solid waste disposal are paid in full. A change in the 34 ownership of the residential rental property shall require 35 -1- LSB 6081XC (1) 91 ms/js 1/ 2

S.F. _____ written notice of such change to be given to the city utility 1 or enterprise within thirty business days of the completion 2 of the change of ownership. The lien exemption for rental 3 property does not apply to charges for repairs related to a 4 service of sewer systems, storm water drainage systems, sewage 5 treatment, solid waste collection, and solid waste disposal if 6 the repair charges become delinquent. 7 EXPLANATION 8 The inclusion of this explanation does not constitute agreement with 9 the explanation’s substance by the members of the general assembly. 10 Under current law, when a landlord has given written 11 notice to the city utility or enterprise that a property is 12 residential rental property and that the tenant is liable for 13 the rates or charges for certain utilities, the property is 14 exempt from a lien for delinquent rates or charges associated 15 with the utility. This bill includes as acceptable written 16 notice a tenant’s notification to the city utility or 17 enterprise of the tenant’s responsibility or the cessation of 18 the tenant’s responsibility for utility charges when a landlord 19 has an active rental license for a property. 20 -2- LSB 6081XC (1) 91 ms/js 2/ 2