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House Study Bill 635 - IntroducedA Bill ForAn Act 1relating to utility service cost disclosures in
2connection with certain rental properties, providing
3penalties, and including effective date provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 476.1C, subsection 1, paragraph a, Code
22020, is amended to read as follows:
3a. Are not subject to the regulation authority of
4the utilities board under this chapter unless otherwise
5specifically provided. Sections 476.10, 476.20, 476.21, and
6 476.51, and 476.56 apply to such gas utilities.
7 Sec. 2. Section 476.56, Code 2020, is amended to read as
8follows:
9476.56 Energy costs provided.
10A gas or electric public utility shall provide, upon the
11request of a person who states in writing that the person is an
12owner of real property, or an interested prospective purchaser
13or renter of the property, which is or has been receiving gas
14or electric service from the public utility, the annual gas
15or electric energy costs for the property. In addition, a
16gas or electric public utility and, notwithstanding section
17476.1, subsection 4, a public utility furnishing water or sewer
18service, shall comply with the utility service cost disclosure
19provisions of section 562A.13A, subsection 4.
20 Sec. 3. NEW SECTION. 562A.13A Utility service cost
21disclosure — penalty.
221. For purposes of this section, unless the context
23otherwise requires:
24a. “Applicable public utility” means a public utility which
25furnishes electric, gas, water, or sewer service to a rental
26property.
27b. “Landlord” means a landlord as defined in section 562A.6,
28or any other person authorized to enter into a rental agreement
29on behalf of the landlord with respect to a rental property.
30c. (1) “Rental property” means a residential rental
31building in the state with twelve or more dwelling units.
32(2) “Rental property” does not include a residential rental
33building which uses a master meter.
34d. “Utility service” means electric, gas, water, and sewer
35service.
-1- 12. In addition to the required disclosure provisions
2of 562A.13, a landlord of rental property shall disclose
3to a prospective tenant in writing a utility service cost
4disclosure statement in accordance with this section. At
5least one adult prospective tenant entering into the tenancy
6shall sign an acknowledgment form stating that the prospective
7tenant received the disclosure statement upon completing the
8rental application or before signing the lease, whichever
9occurs first. Proof by the landlord that at least one adult
10prospective tenant signed a valid acknowledgment form shall be
11a defense to any claim or action brought under subsection 6.
123. a. The cost information included in a utility service
13cost disclosure statement shall indicate the average annual
14costs for utility service for dwelling units in the rental
15property with the same number of bedrooms. If a landlord
16charges tenants for utility services using a ratio utility
17billing system, or a billing method which allocates the rental
18property’s actual utility bill to tenants based on an occupant
19factor, square footage factor, or any other factor, the cost
20information shall include the average charges for utility
21service in the previous twelve-month period, including any
22fees, for dwelling units in the rental property with the same
23number of bedrooms. If a landlord has authority over more
24than one rental property of similar construction and within
25the same business office, and such rental properties have the
26same utility service payment structure with the same applicable
27public utility, the disclosure statement may indicate the
28average annual costs for utility service for dwelling units in
29all such rental properties with the same number of bedrooms.
30For purposes of this paragraph, “of similar construction” means
31sharing common construction details, including but not limited
32to comparable building envelope designs or structural features,
33comparable arrangements for access to hallways, dwelling units,
34common areas, and washers or dryers, and comparable functions
35of utility services.
-2- 1b. The cost information included in a disclosure statement
2shall be computed by April 1 each year pursuant to subsection
34 and shall be valid and included in any disclosure statement
4provided by the landlord until the last day of March of the
5following year. In the event that a rental property was
6acquired by the landlord within the previous twelve-month
7period, disclosure statements shall be provided by the landlord
8to prospective tenants beginning ninety days after the date of
9closing.
104. a. The landlord shall obtain the cost information
11required in subsection 3 from the applicable public utility
12by sending a written request to the utility between January 1
13and February 1 of each year. The written request shall, at a
14minimum, include the following information:
15(1) The name, address, and telephone number of the landlord.
16(2) The number of bedrooms in each dwelling unit in the
17rental property.
18(3) If cost information is to be computed for more than
19one rental property, a description of the applicable rental
20properties and the number of bedrooms in each dwelling unit in
21all such rental properties.
22(4) Any other information deemed necessary by the
23applicable public utility to compute the cost information.
24b. The applicable public utility shall compute the cost
25information for the landlord at no charge and shall provide
26such information to the landlord within thirty days of
27receiving the landlord’s written request, unless the parties
28otherwise agree in writing to extend the time. The applicable
29public utility may use any methodology to compute the cost
30information, provided that the average costs are based on
31dwelling units with the same number of bedrooms, and the
32methodology used to compute the cost information is disclosed
33to the landlord in writing.
34c. If the landlord fails to obtain cost information from
35the applicable public utility within thirty days of sending a
-3-1valid written request or as otherwise agreed to in writing,
2the rental property is new construction or was renovated in
3the previous twelve-month period where the total cost of the
4renovation was greater than twenty-five percent of the assessed
5value of the rental property, or if subsection 7 is applicable,
6the landlord shall include, in lieu of the cost information
7required in subsection 3, any of the following in the utility
8service cost disclosure statement:
9(1) An estimate of anticipated annual utility service costs
10provided by the applicable public utility.
11(2) An estimate of anticipated annual utility service costs
12provided by a licensed, registered, or certified professional
13with expertise in computing utility service costs.
14(3) An estimate of anticipated annual utility service costs
15consistent with the United States department of housing and
16urban development section 8 guidelines.
175. The landlord shall retain and preserve all records
18relating to cost information obtained pursuant to subsection 4
19for a period of not less than one year. On reasonable notice,
20a tenant may inspect and copy any such records during regular
21business hours.
226. A landlord of rental property who enters into a rental
23agreement with a tenant without providing a utility service
24cost disclosure statement in violation of this section shall
25pay the tenant liquidated damages in the amount of one hundred
26dollars. If the landlord fails to pay the tenant such amount
27within thirty days of receiving a written request for payment
28from the tenant, the tenant may bring a civil action in small
29claims court. If a final judgment is entered against the
30landlord, the tenant shall recover damages in the amount of one
31hundred dollars, as well as court costs and reasonable attorney
32fees incurred by the tenant in bringing the action. The
33landlord shall also be subject to a civil penalty in the amount
34of five hundred dollars. Such civil penalty shall be remitted
35to the division of community action agencies of the department
-4-1of human rights, to be used only for the low income home energy
2assistance program and the weatherization assistance program.
37. This section shall not apply to a rural electric
4cooperative or a municipal utility which does not provide
5budget billing to customers, or a billing system in which
6customers are charged a set amount each month over a specific
7time period.
8 Sec. 4. EFFECTIVE DATE. This Act takes effect January 1,
92021.
10EXPLANATION
11The inclusion of this explanation does not constitute agreement with
12the explanation’s substance by the members of the general assembly.
13This bill establishes new Code section 562A.13A within the
14uniform residential landlord and tenant law provisions of Code
15chapter 562A, relating to utility service cost disclosure
16requirements for certain rental properties.
17The bill defines “applicable public utility” to mean a
18public utility which furnishes electric, gas, water, or sewer
19service to a rental property. “Landlord” is defined as a
20landlord as defined in Code section 562A.6, or any other person
21authorized to enter into a rental agreement on behalf of the
22landlord with respect to a rental property. “Rental property”
23is defined as a residential rental building in Iowa with 12 or
24more dwelling units, but does not include a residential rental
25building which uses a master meter. “Utility service” is
26defined as electric, gas, water, and sewer service.
27The bill requires a landlord of rental property to disclose
28to a prospective tenant a utility service cost disclosure
29statement in writing in accordance with the bill. At least
30one adult prospective tenant entering into the tenancy shall
31sign an acknowledgment form stating that the tenant received
32the disclosure statement upon completing the rental application
33or before signing the lease, whichever occurs first, which
34shall be a defense to any claim that the landlord violated the
35disclosure provisions.
-5- 1The bill provides that the disclosure statement shall
2indicate the average annual costs for utility service for
3dwelling units in the rental property with the same number of
4bedrooms. If a landlord charges tenants using a ratio utility
5billing system, as described in the bill, the cost information
6shall include the average charges for utility service in the
7previous year, including any fees, for dwelling units in the
8property with the same number of bedrooms. If a landlord
9has more than one rental property of similar construction,
10as defined in the bill, and with the same utility service
11payment structure for the same applicable public utility, the
12disclosure statement may indicate the average annual costs for
13dwelling units in all such rental properties with the same
14number of bedrooms.
15The bill provides that cost information shall be computed
16by April 1 each year, which shall be valid and included in any
17disclosure statement provided until the last day of March of
18the following year. If the rental property was acquired by the
19landlord within the previous year, disclosure statements shall
20be provided by the landlord beginning 90 days after the date
21of closing.
22The bill provides that the landlord shall obtain the cost
23information included in a disclosure statement from the
24applicable public utility by sending a written request to the
25utility between January 1 and February 1 of each year, with
26information described in the bill. The utility shall compute
27and provide such information to the landlord at no charge
28within 30 days of receiving such request, unless otherwise
29agreed to by the parties in writing. The utility may use
30any methodology to compute the cost information, provided
31that average costs are based on dwelling units with the same
32number of bedrooms and the methodology used is disclosed to the
33landlord in writing.
34The bill provides that if the landlord fails to obtain cost
35information from the applicable public utility within 30 days
-6-1or as otherwise agreed to in writing, the rental property is
2new construction or was renovated in the previous year where
3the total cost of the renovation was greater than 25 percent
4of the assessed property value, or if the utility disclosure
5provisions do not apply to the applicable public utility as
6specified in the bill, the landlord shall include in the
7disclosure statement an estimate of anticipated annual utility
8service costs as described in the bill.
9The bill provides that a landlord shall retain all records
10relating to cost information for a period of not less than one
11year. A tenant may inspect and copy such records on reasonable
12notice and during regular business hours.
13The bill provides that a landlord of rental property who
14enters into a rental agreement with a tenant without providing
15a utility service cost disclosure statement in violation of
16the bill shall pay the tenant liquidated damages in the sum
17of $100. If the landlord fails to pay the tenant such amount
18within 30 days of receiving a written request from the tenant
19to do so, the tenant may bring a civil action in small claims
20court. If a final judgment is entered against the landlord,
21the tenant shall recover $100 in damages, as well as court
22costs and reasonable attorney fees. The landlord shall also
23be subject to a civil penalty of $500, to be remitted to the
24division of community action agencies of the department of
25human rights, and used only for specified purposes.
26The bill provides that Code section 562A.13A shall not apply
27to a rural electric cooperative or a municipal utility which
28does not provide budget billing to customers, as described in
29the bill.
30The bill modifies Code section 476.56, relating to the
31provision of energy costs by gas or electric utilities,
32by requiring gas and electric utilities, as well as public
33utilities furnishing water or sewer service, to comply with the
34utility service cost disclosure provisions of the bill. The
35bill also makes Code section 476.56 applicable to gas public
-7-1utilities with less than 2,000 customers.
2Current law provides that a public utility which, after
3written notice from the Iowa utilities board of a specified
4violation of a provision in Code chapter 476, violates the
5same provision is subject to a civil penalty of at least $100
6but not more than $2,500 per violation. If the violation is
7willful, the civil penalty increases to at least $1,000 but not
8more than $10,000 per violation.
9The bill takes effect January 1, 2021.
-8-ja/rn
2connection with certain rental properties, providing
3penalties, and including effective date provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 476.1C, subsection 1, paragraph a, Code
22020, is amended to read as follows:
3a. Are not subject to the regulation authority of
4the utilities board under this chapter unless otherwise
5specifically provided. Sections 476.10, 476.20, 476.21, and
6 476.51, and 476.56 apply to such gas utilities.
7 Sec. 2. Section 476.56, Code 2020, is amended to read as
8follows:
9476.56 Energy costs provided.
10A gas or electric public utility shall provide, upon the
11request of a person who states in writing that the person is an
12owner of real property, or an interested prospective purchaser
13or renter of the property, which is or has been receiving gas
14or electric service from the public utility, the annual gas
15or electric energy costs for the property. In addition, a
16gas or electric public utility and, notwithstanding section
17476.1, subsection 4, a public utility furnishing water or sewer
18service, shall comply with the utility service cost disclosure
19provisions of section 562A.13A, subsection 4.
20 Sec. 3. NEW SECTION. 562A.13A Utility service cost
21disclosure — penalty.
221. For purposes of this section, unless the context
23otherwise requires:
24a. “Applicable public utility” means a public utility which
25furnishes electric, gas, water, or sewer service to a rental
26property.
27b. “Landlord” means a landlord as defined in section 562A.6,
28or any other person authorized to enter into a rental agreement
29on behalf of the landlord with respect to a rental property.
30c. (1) “Rental property” means a residential rental
31building in the state with twelve or more dwelling units.
32(2) “Rental property” does not include a residential rental
33building which uses a master meter.
34d. “Utility service” means electric, gas, water, and sewer
35service.
-1- 12. In addition to the required disclosure provisions
2of 562A.13, a landlord of rental property shall disclose
3to a prospective tenant in writing a utility service cost
4disclosure statement in accordance with this section. At
5least one adult prospective tenant entering into the tenancy
6shall sign an acknowledgment form stating that the prospective
7tenant received the disclosure statement upon completing the
8rental application or before signing the lease, whichever
9occurs first. Proof by the landlord that at least one adult
10prospective tenant signed a valid acknowledgment form shall be
11a defense to any claim or action brought under subsection 6.
123. a. The cost information included in a utility service
13cost disclosure statement shall indicate the average annual
14costs for utility service for dwelling units in the rental
15property with the same number of bedrooms. If a landlord
16charges tenants for utility services using a ratio utility
17billing system, or a billing method which allocates the rental
18property’s actual utility bill to tenants based on an occupant
19factor, square footage factor, or any other factor, the cost
20information shall include the average charges for utility
21service in the previous twelve-month period, including any
22fees, for dwelling units in the rental property with the same
23number of bedrooms. If a landlord has authority over more
24than one rental property of similar construction and within
25the same business office, and such rental properties have the
26same utility service payment structure with the same applicable
27public utility, the disclosure statement may indicate the
28average annual costs for utility service for dwelling units in
29all such rental properties with the same number of bedrooms.
30For purposes of this paragraph, “of similar construction” means
31sharing common construction details, including but not limited
32to comparable building envelope designs or structural features,
33comparable arrangements for access to hallways, dwelling units,
34common areas, and washers or dryers, and comparable functions
35of utility services.
-2- 1b. The cost information included in a disclosure statement
2shall be computed by April 1 each year pursuant to subsection
34 and shall be valid and included in any disclosure statement
4provided by the landlord until the last day of March of the
5following year. In the event that a rental property was
6acquired by the landlord within the previous twelve-month
7period, disclosure statements shall be provided by the landlord
8to prospective tenants beginning ninety days after the date of
9closing.
104. a. The landlord shall obtain the cost information
11required in subsection 3 from the applicable public utility
12by sending a written request to the utility between January 1
13and February 1 of each year. The written request shall, at a
14minimum, include the following information:
15(1) The name, address, and telephone number of the landlord.
16(2) The number of bedrooms in each dwelling unit in the
17rental property.
18(3) If cost information is to be computed for more than
19one rental property, a description of the applicable rental
20properties and the number of bedrooms in each dwelling unit in
21all such rental properties.
22(4) Any other information deemed necessary by the
23applicable public utility to compute the cost information.
24b. The applicable public utility shall compute the cost
25information for the landlord at no charge and shall provide
26such information to the landlord within thirty days of
27receiving the landlord’s written request, unless the parties
28otherwise agree in writing to extend the time. The applicable
29public utility may use any methodology to compute the cost
30information, provided that the average costs are based on
31dwelling units with the same number of bedrooms, and the
32methodology used to compute the cost information is disclosed
33to the landlord in writing.
34c. If the landlord fails to obtain cost information from
35the applicable public utility within thirty days of sending a
-3-1valid written request or as otherwise agreed to in writing,
2the rental property is new construction or was renovated in
3the previous twelve-month period where the total cost of the
4renovation was greater than twenty-five percent of the assessed
5value of the rental property, or if subsection 7 is applicable,
6the landlord shall include, in lieu of the cost information
7required in subsection 3, any of the following in the utility
8service cost disclosure statement:
9(1) An estimate of anticipated annual utility service costs
10provided by the applicable public utility.
11(2) An estimate of anticipated annual utility service costs
12provided by a licensed, registered, or certified professional
13with expertise in computing utility service costs.
14(3) An estimate of anticipated annual utility service costs
15consistent with the United States department of housing and
16urban development section 8 guidelines.
175. The landlord shall retain and preserve all records
18relating to cost information obtained pursuant to subsection 4
19for a period of not less than one year. On reasonable notice,
20a tenant may inspect and copy any such records during regular
21business hours.
226. A landlord of rental property who enters into a rental
23agreement with a tenant without providing a utility service
24cost disclosure statement in violation of this section shall
25pay the tenant liquidated damages in the amount of one hundred
26dollars. If the landlord fails to pay the tenant such amount
27within thirty days of receiving a written request for payment
28from the tenant, the tenant may bring a civil action in small
29claims court. If a final judgment is entered against the
30landlord, the tenant shall recover damages in the amount of one
31hundred dollars, as well as court costs and reasonable attorney
32fees incurred by the tenant in bringing the action. The
33landlord shall also be subject to a civil penalty in the amount
34of five hundred dollars. Such civil penalty shall be remitted
35to the division of community action agencies of the department
-4-1of human rights, to be used only for the low income home energy
2assistance program and the weatherization assistance program.
37. This section shall not apply to a rural electric
4cooperative or a municipal utility which does not provide
5budget billing to customers, or a billing system in which
6customers are charged a set amount each month over a specific
7time period.
8 Sec. 4. EFFECTIVE DATE. This Act takes effect January 1,
92021.
10EXPLANATION
11The inclusion of this explanation does not constitute agreement with
12the explanation’s substance by the members of the general assembly.
13This bill establishes new Code section 562A.13A within the
14uniform residential landlord and tenant law provisions of Code
15chapter 562A, relating to utility service cost disclosure
16requirements for certain rental properties.
17The bill defines “applicable public utility” to mean a
18public utility which furnishes electric, gas, water, or sewer
19service to a rental property. “Landlord” is defined as a
20landlord as defined in Code section 562A.6, or any other person
21authorized to enter into a rental agreement on behalf of the
22landlord with respect to a rental property. “Rental property”
23is defined as a residential rental building in Iowa with 12 or
24more dwelling units, but does not include a residential rental
25building which uses a master meter. “Utility service” is
26defined as electric, gas, water, and sewer service.
27The bill requires a landlord of rental property to disclose
28to a prospective tenant a utility service cost disclosure
29statement in writing in accordance with the bill. At least
30one adult prospective tenant entering into the tenancy shall
31sign an acknowledgment form stating that the tenant received
32the disclosure statement upon completing the rental application
33or before signing the lease, whichever occurs first, which
34shall be a defense to any claim that the landlord violated the
35disclosure provisions.
-5- 1The bill provides that the disclosure statement shall
2indicate the average annual costs for utility service for
3dwelling units in the rental property with the same number of
4bedrooms. If a landlord charges tenants using a ratio utility
5billing system, as described in the bill, the cost information
6shall include the average charges for utility service in the
7previous year, including any fees, for dwelling units in the
8property with the same number of bedrooms. If a landlord
9has more than one rental property of similar construction,
10as defined in the bill, and with the same utility service
11payment structure for the same applicable public utility, the
12disclosure statement may indicate the average annual costs for
13dwelling units in all such rental properties with the same
14number of bedrooms.
15The bill provides that cost information shall be computed
16by April 1 each year, which shall be valid and included in any
17disclosure statement provided until the last day of March of
18the following year. If the rental property was acquired by the
19landlord within the previous year, disclosure statements shall
20be provided by the landlord beginning 90 days after the date
21of closing.
22The bill provides that the landlord shall obtain the cost
23information included in a disclosure statement from the
24applicable public utility by sending a written request to the
25utility between January 1 and February 1 of each year, with
26information described in the bill. The utility shall compute
27and provide such information to the landlord at no charge
28within 30 days of receiving such request, unless otherwise
29agreed to by the parties in writing. The utility may use
30any methodology to compute the cost information, provided
31that average costs are based on dwelling units with the same
32number of bedrooms and the methodology used is disclosed to the
33landlord in writing.
34The bill provides that if the landlord fails to obtain cost
35information from the applicable public utility within 30 days
-6-1or as otherwise agreed to in writing, the rental property is
2new construction or was renovated in the previous year where
3the total cost of the renovation was greater than 25 percent
4of the assessed property value, or if the utility disclosure
5provisions do not apply to the applicable public utility as
6specified in the bill, the landlord shall include in the
7disclosure statement an estimate of anticipated annual utility
8service costs as described in the bill.
9The bill provides that a landlord shall retain all records
10relating to cost information for a period of not less than one
11year. A tenant may inspect and copy such records on reasonable
12notice and during regular business hours.
13The bill provides that a landlord of rental property who
14enters into a rental agreement with a tenant without providing
15a utility service cost disclosure statement in violation of
16the bill shall pay the tenant liquidated damages in the sum
17of $100. If the landlord fails to pay the tenant such amount
18within 30 days of receiving a written request from the tenant
19to do so, the tenant may bring a civil action in small claims
20court. If a final judgment is entered against the landlord,
21the tenant shall recover $100 in damages, as well as court
22costs and reasonable attorney fees. The landlord shall also
23be subject to a civil penalty of $500, to be remitted to the
24division of community action agencies of the department of
25human rights, and used only for specified purposes.
26The bill provides that Code section 562A.13A shall not apply
27to a rural electric cooperative or a municipal utility which
28does not provide budget billing to customers, as described in
29the bill.
30The bill modifies Code section 476.56, relating to the
31provision of energy costs by gas or electric utilities,
32by requiring gas and electric utilities, as well as public
33utilities furnishing water or sewer service, to comply with the
34utility service cost disclosure provisions of the bill. The
35bill also makes Code section 476.56 applicable to gas public
-7-1utilities with less than 2,000 customers.
2Current law provides that a public utility which, after
3written notice from the Iowa utilities board of a specified
4violation of a provision in Code chapter 476, violates the
5same provision is subject to a civil penalty of at least $100
6but not more than $2,500 per violation. If the violation is
7willful, the civil penalty increases to at least $1,000 but not
8more than $10,000 per violation.
9The bill takes effect January 1, 2021.
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