House File 269 - IntroducedA Bill ForAn Act 1relating to utility cost disclosures in connection
2with rental properties, providing penalties, and including
3applicability provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  Section 476.56, Code 2019, is amended to read as
2follows:
   3476.56  Energy costs provided.
   4A gas or electric public utility shall provide, upon the
5request of a person who states in writing that the person is an
6owner of real property, or an interested prospective purchaser
7or renter of the property, which is or has been receiving gas
8or electric service from the public utility, the annual gas
9or electric energy costs for the property. A gas or electric
10public utility and, notwithstanding section 476.1, subsection
114, a public utility furnishing water or sewer service, shall
12comply with the utility service cost disclosure provisions of
13section 562A.13A with regard to existing or prospective renters
14of real property.

15   Sec. 2.  NEW SECTION.  562A.13A  Utility service cost
16disclosure statements — penalty.
   171.  In addition to the required disclosure provisions
18of section 562A.13, the landlord or a person authorized to
19enter into a rental agreement on behalf of the landlord shall
20disclose to a prospective tenant in writing at or before the
21commencement of the tenancy, and to an existing tenant at any
22point during the tenancy, the gas, electric, water, or sewer
23utility service costs for a dwelling unit. Utility service
24costs shall be provided with respect to a dwelling unit for the
25preceding twelve-month period based upon information obtained
26at no charge by the landlord or person authorized to enter
27into the rental agreement from the utility furnishing utility
28service, pursuant to an energy cost disclosure statement
29developed pursuant to subsection 2. In the event that
30utility service has been provided for a period of less than
31one year, cost information shall be provided for the period
32beginning when utility service commenced. In the event of new
33construction, utility service cost information from similar
34dwelling units in similar properties may be obtained in writing
35from a utility and supplied to a prospective tenant, or in
-1-1the alternative, a landlord may obtain a written estimate of
2anticipated utility service costs from a utility or an energy
3consultant.
   42.  The office of consumer advocate shall develop the
5format of an energy cost disclosure statement for utilization
6by landlords in complying with this section. The format
7developed shall include space for the disclosure of the
8annual utility service costs, and shall also include space
9for a representative list of energy efficiency standards
10incorporating features or upgrades that a dwelling unit or
11the building of which it is a part might conceivably exhibit
12or offer. The list of energy efficiency standards shall
13be developed by the office of the consumer advocate, in
14consultation with state and federal energy efficiency agencies
15and experts, and shall be accompanied by a space for notation
16by the landlord indicating whether or not the unit or building
17meets or exceeds each standard.
   183.  A landlord who fails to comply with the requirements of
19this section upon receipt of a written notice by a tenant or
20a prospective tenant that utility service costs have not been
21disclosed shall have seven days from the date of receipt of the
22notice to provide the required utility service cost disclosure
23statement. A landlord who fails to provide the disclosure
24statement within the seven-day period or who enters into a
25rental agreement with a tenant without first disclosing utility
26service costs on a disclosure statement or who misrepresents
27utility service costs on a disclosure statement shall be
28subject to a civil penalty of five hundred dollars. Such
29penalty shall be imposed by the office of consumer advocate or
30pursuant to a civil proceeding regarding recovery of damages
31by a tenant for nondisclosure, and shall be remitted to the
32division of community action agencies for deposit into the
33energy crisis fund created in section 216A.102.
34   Sec. 3.  APPLICABILITY.  This Act applies to rental
35agreements entered into on or after January 1, 2020.
-2-
1EXPLANATION
2The inclusion of this explanation does not constitute agreement with
3the explanation’s substance by the members of the general assembly.
   4This bill relates to utility cost disclosure requirements in
5connection with rental properties.
   6The bill modifies provisions of Code section 476.56,
7relating to the provision of energy costs by a gas or electric
8utility upon request with regard to the purchase or rental
9of real property, to provide that the Code section refers to
10ownership or prospective ownership of real property, not the
11rental or prospective rental of the property.
   12The bill establishes new Code section 562A.13A within the
13uniform residential landlord and tenant law provisions of Code
14chapter 562A requiring that a landlord or a person authorized
15to enter into a rental agreement on behalf of the landlord
16shall disclose to a prospective tenant in writing at or before
17the commencement of the tenancy, or to an existing tenant at
18any point during the tenancy, the gas, electric, water, or
19sewer utility service costs for a dwelling unit. The bill
20specifies that the utility service costs shall be provided with
21respect to a dwelling unit for the preceding 12-month period,
22or for the period beginning when utility service commenced
23if less than one year, based upon information obtained at no
24charge by the landlord or person authorized to enter into
25the rental agreement from the utility furnishing utility
26service. In the event of new construction, the bill requires
27utility service cost information from similar dwelling units
28in similar properties to be obtained in writing from a utility
29and supplied to a prospective tenant, or in the alternative, a
30landlord may obtain a written estimate of anticipated utility
31service costs from a utility or an energy consultant.
   32The bill directs the office of consumer advocate to develop
33an energy cost disclosure statement for utilization by
34landlords, containing space for the disclosure of the utility
35service costs and also including space for a representative
-3-1list of energy efficiency standards incorporating features or
2upgrades that a dwelling unit or the building of which it is
3a part might conceivably exhibit or offer. The bill provides
4that the list of energy efficiency standards shall be developed
5by the office in consultation with state and federal energy
6efficiency agencies and experts and shall be accompanied by a
7space for the landlord to indicate whether or not the unit or
8building meets or exceeds each standard.
   9The bill provides that a landlord who fails to supply the
10required utility service cost disclosure statement upon receipt
11of a written notice by a tenant or a prospective tenant shall
12have seven days from the date of receipt of the notice to
13provide the required disclosure statement. If a landlord
14fails to provide the disclosure statement within the seven-day
15period, or enters into a rental agreement with a tenant without
16first disclosing utility service costs or misrepresents utility
17service costs on a disclosure statement, the bill provides that
18the landlord shall be subject to a civil penalty of $500. The
19penalty shall be imposed by the office of consumer advocate or
20pursuant to a civil proceeding regarding recovery of damages
21by a tenant for nondisclosure, and shall be remitted to the
22division of community action agencies for deposit into the
23energy crisis fund created in Code section 216A.102.
   24The bill applies to rental agreements entered into on or
25after January 1, 2020.
-4-
gh/rn