Senate File 2438 - Reprinted SENATE FILE 2438 BY COMMITTEE ON LOCAL GOVERNMENT (SUCCESSOR TO SSB 3128) (As Amended and Passed by the Senate March 10, 2026 ) A BILL FOR An Act relating to city utilities including landlord 1 notification, and including effective date provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 SF 2438 (3) 91 ms/js/mb

S.F. 2438 Section 1. Section 384.84, subsection 3, paragraph c, Code 1 2026, is amended to read as follows: 2 c. A city utility or enterprise service to a property or 3 premises shall not be discontinued or disconnected unless prior 4 written notice is sent, by ordinary mail, to the account holder 5 in whose name the delinquent rates or charges were incurred, 6 informing the account holder of the nature of the delinquency 7 and affording the account holder the opportunity for a hearing 8 prior to discontinuance or disconnection of service. If the 9 account holder is a tenant, and if the owner or landlord of the 10 property or premises has made a written request for notice, the 11 notice shall also be given to the owner or landlord when the 12 tenant is sixty days delinquent on payment, and at least ten 13 days before the utility is discontinued or disconnected . If 14 the account holder is a tenant and requests a change of name 15 for service under the account, such request shall be sent to 16 the owner or landlord of the property if the owner or landlord 17 has made a written request for notice of any change of name for 18 service under the account to the rental property. 19 Sec. 2. Section 384.84, subsection 4, paragraph e, Code 20 2026, is amended to read as follows: 21 e. Residential rental property where a charge for any of 22 the services of sewer systems, storm water drainage systems, 23 sewage treatment, solid waste collection, and solid waste 24 disposal is paid directly to the city utility or enterprise 25 by the tenant is exempt from a lien for delinquent rates or 26 charges associated with such services if the landlord gives 27 written notice to the city utility or enterprise that the 28 property is residential rental property and that the tenant 29 is liable for the rates or charges. A form completed online, 30 or sent by electronic mail, through the mail, or by facsimile 31 transmission, may serve as acceptable written notice when 32 requested or specified by the utility or enterprise. A city 33 utility or enterprise may require a deposit not exceeding the 34 usual cost of ninety days of the services of sewer systems, 35 -1- SF 2438 (3) 91 ms/js/mb 1/ 2

S.F. 2438 storm water drainage systems, sewage treatment, solid waste 1 collection, and solid waste disposal to be paid to the utility 2 or enterprise. A city utility or enterprise may require a 3 deposit not exceeding the usual cost of sixty days of the 4 services of gas and electric to be paid to the utility or 5 enterprise. Upon receipt, the utility or enterprise shall 6 acknowledge the notice and deposit. A written notice shall 7 contain the name of the tenant responsible for the charges, the 8 address of the residential rental property that the tenant is 9 to occupy, and the date that the occupancy begins. A change 10 in tenant shall require a new written notice to be given to 11 the city utility or enterprise within thirty business days of 12 the change in tenant. When the tenant moves from the rental 13 property, the city utility or enterprise shall return the 14 deposit if the charges for the services of gas, electric, sewer 15 systems, storm water drainage systems, sewage treatment, solid 16 waste collection, and solid waste disposal are paid in full. 17 A change in the ownership of the residential rental property 18 shall require written notice of such change to be given to the 19 city utility or enterprise within thirty business days of the 20 completion of the change of ownership. The lien exemption for 21 rental property does not apply to charges for repairs related 22 to a service of sewer systems, storm water drainage systems, 23 sewage treatment, solid waste collection, and solid waste 24 disposal if the repair charges become delinquent. 25 Sec. 3. EFFECTIVE DATE. This Act takes effect January 1, 26 2027. 27 -2- SF 2438 (3) 91 ms/js/mb 2/ 2