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Senate File 552 - IntroducedA Bill ForAn Act 1relating to utilities at rental properties and
2landlords’ ability to use security deposits to satisfy
3delinquent utility accounts.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 384.84, subsection 3, paragraph c, Code
22021, is amended to read as follows:
3c. A city utility or enterprise service to a property or
4premises shall not be discontinued or disconnected unless prior
5written notice is sent, by ordinary mail, to the account holder
6in whose name the delinquent rates or charges were incurred,
7informing the account holder of the nature of the delinquency
8and affording the account holder the opportunity for a hearing
9prior to discontinuance or disconnection of service. If the
10account holder is a tenant, and if the owner or landlord of the
11property or premises has made a written request for notice,
12the notice shall also be given to the owner or landlord within
13thirty days of the delinquency. If the account holder is a
14tenant and requests a change of name for service under the
15account, such request shall be sent to the owner or landlord
16of the property if the owner or landlord has made a written
17request for notice of any change of name for service under the
18account to the rental property.
19 Sec. 2. Section 384.84, subsection 4, paragraph d,
20subparagraphs (1) and (2), Code 2021, are amended to read as
21follows:
22(1) Residential or commercial rental property where
23a charge for water service is separately metered and paid
24directly to the city utility or enterprise by the tenant is
25exempt from a lien for delinquent rates or charges associated
26with such water service if the landlord gives written notice to
27the city utility or enterprise that the property is residential
28or commercial rental property and that the tenant is liable
29for the rates or charges. A city utility or enterprise may
30require a deposit not exceeding the usual cost of ninety days
31of water service to be paid to the utility or enterprise. Upon
32receipt, the utility or enterprise shall acknowledge the notice
33and deposit. A written notice shall contain the name of the
34tenant responsible for charges, address of the residential or
35commercial rental property that the tenant is to occupy, and
-1-1the date that the occupancy begins.
2(2) A change in tenant for a residential rental property
3shall require a new written notice to be given to the city
4utility or enterprise within thirty business days of the change
5in tenant. A change in tenant for a commercial rental property
6shall require a new written notice to be given to the city
7utility or enterprise within ten business days of the change
8in tenant. When the tenant moves from the rental property,
9the city utility or enterprise shall return the deposit if the
10water service charges are paid in full.
11 Sec. 3. Section 384.84, subsection 4, paragraph e, Code
122021, is amended to read as follows:
13e. Residential rental property where a charge for any of the
14services of sewer systems, storm water drainage systems, sewage
15treatment, solid waste collection, and solid waste disposal
16is paid directly to the city utility or enterprise by the
17tenant is exempt from a lien for delinquent rates or charges
18associated with such services if the landlord gives written
19notice to the city utility or enterprise that the property is
20residential rental property and that the tenant is liable for
21the rates or charges. A city utility or enterprise may require
22a deposit not exceeding the usual cost of ninety days of the
23services of sewer systems, storm water drainage systems, sewage
24treatment, solid waste collection, and solid waste disposal
25to be paid to the utility or enterprise. A city utility or
26enterprise may require a deposit not exceeding the usual cost
27of sixty days of the services of gas and electric to be paid
28to the utility or enterprise. Upon receipt, the utility or
29enterprise shall acknowledge the notice and deposit. A written
30notice shall contain the name of the tenant responsible for
31the charges, the address of the residential rental property
32that the tenant is to occupy, and the date that the occupancy
33begins. A change in tenant shall require a new written notice
34to be given to the city utility or enterprise within thirty
35business days of the change in tenant. When the tenant moves
-2-1from the rental property, the city utility or enterprise shall
2return the deposit if the charges for the services of gas,
3electric, sewer systems, storm water drainage systems, sewage
4treatment, solid waste collection, and solid waste disposal are
5paid in full. A change in the ownership of the residential
6rental property shall require written notice of such change
7to be given to the city utility or enterprise within thirty
8business days of the completion of the change of ownership.
9The lien exemption for rental property does not apply to
10charges for repairs related to a service of sewer systems,
11storm water drainage systems, sewage treatment, solid waste
12collection, and solid waste disposal if the repair charges
13become delinquent.
14 Sec. 4. Section 562A.12, subsection 3, paragraph a, Code
152021, is amended by adding the following new subparagraph:
16 NEW SUBPARAGRAPH. (4) To satisfy debts for a tenant’s
17delinquent utility account.
18EXPLANATION
19The inclusion of this explanation does not constitute agreement with
20the explanation’s substance by the members of the general assembly.
21This bill relates to utilities at rental properties.
22Under current law, an owner or landlord may request to
23receive a copy of the written notice of delinquent rates or
24charges sent by a city utility or enterprise service to an
25account holder. The bill specifies that such notice must
26be provided to the owner or landlord within 30 days of the
27delinquency.
28Under current law, for a residential or commercial rental
29property to be exempt from a lien for delinquent rates or
30charges imposed by a city utility or enterprise, a landlord
31must provide the name of a tenant who is responsible for
32charges to the city utility or enterprise when the tenant is
33delinquent in paying rates or charges. A landlord must provide
34a new notice if a tenant that is responsible for a delinquency
35moves out.
-3- 1The bill removes the requirement that a landlord provide
2the name of a tenant that is responsible for a delinquency in
3a notice to a city utility or enterprise. The bill removes
4the requirement that a landlord provide a new notice to a
5city utility or enterprise if the tenant responsible for a
6delinquency moves out.
7The bill provides that the landlord may withhold from a
8tenant’s security deposit amounts as reasonably necessary to
9pay for delinquent utility accounts the tenant was responsible
10to pay during the tenancy.
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2landlords’ ability to use security deposits to satisfy
3delinquent utility accounts.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 384.84, subsection 3, paragraph c, Code
22021, is amended to read as follows:
3c. A city utility or enterprise service to a property or
4premises shall not be discontinued or disconnected unless prior
5written notice is sent, by ordinary mail, to the account holder
6in whose name the delinquent rates or charges were incurred,
7informing the account holder of the nature of the delinquency
8and affording the account holder the opportunity for a hearing
9prior to discontinuance or disconnection of service. If the
10account holder is a tenant, and if the owner or landlord of the
11property or premises has made a written request for notice,
12the notice shall also be given to the owner or landlord within
13thirty days of the delinquency. If the account holder is a
14tenant and requests a change of name for service under the
15account, such request shall be sent to the owner or landlord
16of the property if the owner or landlord has made a written
17request for notice of any change of name for service under the
18account to the rental property.
19 Sec. 2. Section 384.84, subsection 4, paragraph d,
20subparagraphs (1) and (2), Code 2021, are amended to read as
21follows:
22(1) Residential or commercial rental property where
23a charge for water service is separately metered and paid
24directly to the city utility or enterprise by the tenant is
25exempt from a lien for delinquent rates or charges associated
26with such water service if the landlord gives written notice to
27the city utility or enterprise that the property is residential
28or commercial rental property and that the tenant is liable
29for the rates or charges. A city utility or enterprise may
30require a deposit not exceeding the usual cost of ninety days
31of water service to be paid to the utility or enterprise. Upon
32receipt, the utility or enterprise shall acknowledge the notice
33and deposit. A written notice shall contain the name of the
34tenant responsible for charges, address of the residential or
35commercial rental property that the tenant is to occupy, and
-1-1the date that the occupancy begins.
2(2) A change in tenant for a residential rental property
3shall require a new written notice to be given to the city
4utility or enterprise within thirty business days of the change
5in tenant. A change in tenant for a commercial rental property
6shall require a new written notice to be given to the city
7utility or enterprise within ten business days of the change
8in tenant. When the tenant moves from the rental property,
9the city utility or enterprise shall return the deposit if the
10water service charges are paid in full.
11 Sec. 3. Section 384.84, subsection 4, paragraph e, Code
122021, is amended to read as follows:
13e. Residential rental property where a charge for any of the
14services of sewer systems, storm water drainage systems, sewage
15treatment, solid waste collection, and solid waste disposal
16is paid directly to the city utility or enterprise by the
17tenant is exempt from a lien for delinquent rates or charges
18associated with such services if the landlord gives written
19notice to the city utility or enterprise that the property is
20residential rental property and that the tenant is liable for
21the rates or charges. A city utility or enterprise may require
22a deposit not exceeding the usual cost of ninety days of the
23services of sewer systems, storm water drainage systems, sewage
24treatment, solid waste collection, and solid waste disposal
25to be paid to the utility or enterprise. A city utility or
26enterprise may require a deposit not exceeding the usual cost
27of sixty days of the services of gas and electric to be paid
28to the utility or enterprise. Upon receipt, the utility or
29enterprise shall acknowledge the notice and deposit. A written
30notice shall contain the name of the tenant responsible for
31the charges, the address of the residential rental property
32that the tenant is to occupy, and the date that the occupancy
33begins. A change in tenant shall require a new written notice
34to be given to the city utility or enterprise within thirty
35business days of the change in tenant. When the tenant moves
-2-1from the rental property, the city utility or enterprise shall
2return the deposit if the charges for the services of gas,
3electric, sewer systems, storm water drainage systems, sewage
4treatment, solid waste collection, and solid waste disposal are
5paid in full. A change in the ownership of the residential
6rental property shall require written notice of such change
7to be given to the city utility or enterprise within thirty
8business days of the completion of the change of ownership.
9The lien exemption for rental property does not apply to
10charges for repairs related to a service of sewer systems,
11storm water drainage systems, sewage treatment, solid waste
12collection, and solid waste disposal if the repair charges
13become delinquent.
14 Sec. 4. Section 562A.12, subsection 3, paragraph a, Code
152021, is amended by adding the following new subparagraph:
16 NEW SUBPARAGRAPH. (4) To satisfy debts for a tenant’s
17delinquent utility account.
18EXPLANATION
19The inclusion of this explanation does not constitute agreement with
20the explanation’s substance by the members of the general assembly.
21This bill relates to utilities at rental properties.
22Under current law, an owner or landlord may request to
23receive a copy of the written notice of delinquent rates or
24charges sent by a city utility or enterprise service to an
25account holder. The bill specifies that such notice must
26be provided to the owner or landlord within 30 days of the
27delinquency.
28Under current law, for a residential or commercial rental
29property to be exempt from a lien for delinquent rates or
30charges imposed by a city utility or enterprise, a landlord
31must provide the name of a tenant who is responsible for
32charges to the city utility or enterprise when the tenant is
33delinquent in paying rates or charges. A landlord must provide
34a new notice if a tenant that is responsible for a delinquency
35moves out.
-3- 1The bill removes the requirement that a landlord provide
2the name of a tenant that is responsible for a delinquency in
3a notice to a city utility or enterprise. The bill removes
4the requirement that a landlord provide a new notice to a
5city utility or enterprise if the tenant responsible for a
6delinquency moves out.
7The bill provides that the landlord may withhold from a
8tenant’s security deposit amounts as reasonably necessary to
9pay for delinquent utility accounts the tenant was responsible
10to pay during the tenancy.
-4-cm/jh