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House File 310 - IntroducedA Bill ForAn Act 1relating to municipal utilities, by restricting the
2regulatory authority of the Iowa utilities board with
3regard to certain services, and authorizing city utilities
4to require deposits for gas or electric services for
5residential rental properties.
6BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 384.84, subsection 3, Code 2017, is
2amended to read as follows:
33. a. A city utility or enterprise service to a property
4or premises, including services of sewer systems, storm water
5drainage systems, sewage treatment, solid waste collection,
6water, solid waste disposal, or any of these services, may be
7discontinued or disconnected if the account for the service
8becomes delinquent. Gas or electric service provided by a city
9utility or enterprise shall be discontinued or disconnected
10 only as provided by section 476.20, subsections 1 through 4,
11 and discontinuance or disconnection of those services are
12 is subject to rules adopted by the utilities board of the
13department of commerce.
14b. If more than one city utility or enterprise service is
15billed to a property or premises as a combined service account,
16all of the services may be discontinued or disconnected if the
17account becomes delinquent.
18c. A city utility or enterprise service to a property or
19premises shall not be discontinued or disconnected unless prior
20written notice is sent, by ordinary mail, to the account holder
21in whose name the delinquent rates or charges were incurred,
22informing the account holder of the nature of the delinquency
23and affording the account holder the opportunity for a hearing
24prior to discontinuance or disconnection of service. If the
25account holder is a tenant, and if the owner or landlord of the
26property or premises has made a written request for notice, the
27notice shall also be given to the owner or landlord. If the
28account holder is a tenant and requests a change of name for
29service under the account, such request shall be sent to the
30owner or landlord of the property if the owner or landlord has
31made a written request for notice of any change of name for
32service under the account to the rental property.
33d. (1) If a delinquent amount is owed by an account
34holder for a utility service associated with a prior property
35or premises, a city utility, city enterprise, or combined
-1-1city enterprise may withhold service from the same account
2holder at any new property or premises until such time as
3the account holder pays the delinquent amount owing on the
4account associated with the prior property or premises. A city
5utility, city enterprise, or combined city enterprise shall not
6withhold service from, or discontinue or disconnect service
7to, a subsequent owner who obtains fee simple title of the
8prior property or premises unless such delinquent amount has
9been certified in a timely manner to the county treasurer as
10provided in subsection 4, paragraph “a”, subparagraphs (1) and
11(2).
12(2) Delinquent amounts that have not been certified in
13a timely manner to the county treasurer are not collectible
14against any subsequent owner of the property or premises.
15e. (1) A legal entity created pursuant to chapter 28E
16by a city or cities, or other political subdivisions, and
17public or private agencies for the purposes of providing
18wastewater, sewer system, storm water drainage, or sewage
19treatment services shall have the same powers and duties as a
20city utility or enterprise under this subsection with respect
21to account holders and subsequent owners, or with respect to
22properties and premises, associated with a delinquent account
23under this subsection.
24(2) The governing body of a city utility, combined city
25utility, city enterprise, or combined city enterprise may
26enter into an agreement with a legal entity described in
27subparagraph (1) to discontinue or disconnect water service
28to a property or premises if an account owed the legal entity
29for wastewater, sewer system, storm water drainage, or sewage
30treatment services provided to that customer’s property or
31premises becomes delinquent. The customer shall be responsible
32for all costs associated with discontinuing or disconnecting
33 and reestablishing water service disconnected pursuant to this
34paragraph “e”.
35(3) This paragraph “e” shall not apply to a property or
-2-1premises if, prior to July 1, 2015, the account holder for
2that property or premises had an established account with a
3legal entity described in subparagraph (1) for the provision
4of wastewater, sewer system, storm water drainage, or sewage
5treatment services to the property or premises.
6f. (1) A legal entity providing wastewater, sewer system,
7storm water drainage, or sewage treatment services to a city or
8cities or other political subdivisions pursuant to a franchise
9or other agreement shall have the same powers and duties as a
10city utility or enterprise under this subsection with respect
11to account holders and subsequent owners, or with respect to
12properties and premises, associated with a delinquent account
13under this subsection.
14(2) The governing body of a city utility, combined city
15utility, city enterprise, or combined city enterprise may
16enter into an agreement with a legal entity described in
17subparagraph (1) to discontinue or disconnect water service
18to a property or premises if an account owed the legal entity
19for wastewater, sewer system, storm water drainage, or sewage
20treatment services provided to that customer’s property or
21premises becomes delinquent. The customer shall be responsible
22for all costs associated with discontinuing or disconnecting
23 and reestablishing water service disconnected pursuant to this
24paragraph “f”.
25(3) This paragraph “f” shall not apply to a property or
26premises if, prior to July 1, 2015, the account holder for
27that property or premises had an established account with a
28legal entity described in subparagraph (1) for the provision
29of wastewater, sewer system, storm water drainage, or sewage
30treatment services to the property or premises.
31 Sec. 2. Section 384.84, subsection 4, paragraphs b and e,
32Code 2017, are amended to read as follows:
33b. The lien under paragraph “a” may be imposed upon a
34property or premises even if a city utility or enterprise
35service to the property or premises has been or may be
-3-1discontinued or disconnected as provided in this section.
2e. Residential rental property where a charge for any of the
3services of sewer systems, storm water drainage systems, sewage
4treatment, solid waste collection, and solid waste disposal
5is paid directly to the city utility or enterprise by the
6tenant is exempt from a lien for delinquent rates or charges
7associated with such services if the landlord gives written
8notice to the city utility or enterprise that the property
9is residential rental property and that the tenant is liable
10for the rates or charges. A city utility or enterprise may
11require a deposit not exceeding the usual cost of ninety days
12of the services of gas, electric, sewer systems, storm water
13drainage systems, sewage treatment, solid waste collection, and
14solid waste disposal to be paid to the utility or enterprise.
15Upon receipt, the utility or enterprise shall acknowledge the
16notice and deposit. A written notice shall contain the name
17of the tenant responsible for the charges, the address of the
18residential rental property that the tenant is to occupy, and
19the date that the occupancy begins. A change in tenant shall
20require a new written notice to be given to the city utility or
21enterprise within thirty business days of the change in tenant.
22When the tenant moves from the rental property, the city
23utility or enterprise shall return the deposit if the charges
24for the services of gas, electric, sewer systems, storm water
25drainage systems, sewage treatment, solid waste collection,
26and solid waste disposal are paid in full. A change in the
27ownership of the residential rental property shall require
28written notice of such change to be given to the city utility
29or enterprise within thirty business days of the completion
30of the change of ownership. The lien exemption for rental
31property does not apply to charges for repairs related to a
32service of sewer systems, storm water drainage systems, sewage
33treatment, solid waste collection, and solid waste disposal if
34the repair charges become delinquent.
35 Sec. 3. Section 384.84, subsection 8, paragraphs b and c,
-4-1Code 2017, are amended to read as follows:
2b. Two or more city utilities, combined utility systems,
3city enterprises, or combined city enterprises, including city
4utilities established pursuant to chapter 388, may contract
5pursuant to chapter 28E for joint billing or collection, or
6both, of combined service accounts for utility or enterprise
7services, or both. The contracts may provide for the
8discontinuance or disconnection of one or more of the city
9utility or enterprise services if a delinquency occurs in the
10payment of any charges billed under a combined service account.
11c. One or more city utilities or combined utility systems,
12including city utilities established pursuant to chapter 388,
13may contract pursuant to chapter 28E with one or more sanitary
14districts established pursuant to chapter 358 for joint billing
15or collection, or both, of combined service accounts from
16utility services and sanitary district services. The contracts
17may provide for the discontinuance or disconnection of one or
18more of the city water utility services or sanitary district
19services if a delinquency occurs in the payment of any charges
20billed under a combined service account.
21 Sec. 4. Section 476.1B, subsection 1, paragraph e, Code
222017, is amended to read as follows:
23e. Disconnection of service, as set forth in section 476.20,
24subsections 1 through 4.
25 Sec. 5. Section 476.20, subsection 5, paragraph a,
26unnumbered paragraph 1, Code 2017, is amended to read as
27follows:
28The board shall establish rules which shall be uniform with
29respect to all public utilities furnishing gas or electricity
30relating to deposits which may be required by the public
31utility for the initiation or reinstatement of service. This
32subsection shall not apply to municipally owned utilities,
33which shall be governed by the provisions of section 384.84
34with respect to deposits and payment plans for delinquent
35amounts owed. Municipally owned utilities shall not be subject
-5-1to the board’s rules in regards to deposits and payment plans
2for delinquent amounts owed and repayment of past due debt.
3EXPLANATION
4The inclusion of this explanation does not constitute agreement with
5the explanation’s substance by the members of the general assembly.
6This bill relates to municipal utilities.
7The bill modifies the terminology throughout Code section
8384.84(3), which relates to the discontinuance of services by
9city utilities, by changing references to the discontinuance of
10services to also include the disconnection of services.
11Currently, Code section 476.1B provides that a municipally
12owned utility is not subject to regulation by the Iowa
13utilities board, subject to certain specified exceptions. One
14such exception is with regard to disconnection of service,
15as provided in Code section 476.20. The bill modifies this
16reference to Code section 476.20 to limit the applicability
17of board regulation to subsections 1 through 4 of the Code
18section. This renders provisions contained in Code section
19476.20, subsection 5, regarding the board establishing rules
20relating to deposits which may be required by a utility for
21the initiation or reinstatement of service, inapplicable to
22municipal utilities.
23Current Code section 476.20(5) requires the board to
24establish uniform rules for public utilities with respect
25to deposits required for the initiation or reinstatement of
26service. The bill provides that Code section 476.20(5) does
27not apply to municipally owned utilities, which are governed by
28the provisions of Code section 384.84 with respect to deposits
29and payment plans for delinquent amounts owed. The bill also
30provides that municipally owned utilities are not subject to
31the board’s rules in regards to deposits and payment plans for
32delinquent amounts owed and repayment of past due debt.
-6-gh/nh
2regulatory authority of the Iowa utilities board with
3regard to certain services, and authorizing city utilities
4to require deposits for gas or electric services for
5residential rental properties.
6BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 384.84, subsection 3, Code 2017, is
2amended to read as follows:
33. a. A city utility or enterprise service to a property
4or premises, including services of sewer systems, storm water
5drainage systems, sewage treatment, solid waste collection,
6water, solid waste disposal, or any of these services, may be
7discontinued or disconnected if the account for the service
8becomes delinquent. Gas or electric service provided by a city
9utility or enterprise shall be discontinued or disconnected
10 only as provided by section 476.20, subsections 1 through 4,
11 and discontinuance or disconnection of those services are
12 is subject to rules adopted by the utilities board of the
13department of commerce.
14b. If more than one city utility or enterprise service is
15billed to a property or premises as a combined service account,
16all of the services may be discontinued or disconnected if the
17account becomes delinquent.
18c. A city utility or enterprise service to a property or
19premises shall not be discontinued or disconnected unless prior
20written notice is sent, by ordinary mail, to the account holder
21in whose name the delinquent rates or charges were incurred,
22informing the account holder of the nature of the delinquency
23and affording the account holder the opportunity for a hearing
24prior to discontinuance or disconnection of service. If the
25account holder is a tenant, and if the owner or landlord of the
26property or premises has made a written request for notice, the
27notice shall also be given to the owner or landlord. If the
28account holder is a tenant and requests a change of name for
29service under the account, such request shall be sent to the
30owner or landlord of the property if the owner or landlord has
31made a written request for notice of any change of name for
32service under the account to the rental property.
33d. (1) If a delinquent amount is owed by an account
34holder for a utility service associated with a prior property
35or premises, a city utility, city enterprise, or combined
-1-1city enterprise may withhold service from the same account
2holder at any new property or premises until such time as
3the account holder pays the delinquent amount owing on the
4account associated with the prior property or premises. A city
5utility, city enterprise, or combined city enterprise shall not
6withhold service from, or discontinue or disconnect service
7to, a subsequent owner who obtains fee simple title of the
8prior property or premises unless such delinquent amount has
9been certified in a timely manner to the county treasurer as
10provided in subsection 4, paragraph “a”, subparagraphs (1) and
11(2).
12(2) Delinquent amounts that have not been certified in
13a timely manner to the county treasurer are not collectible
14against any subsequent owner of the property or premises.
15e. (1) A legal entity created pursuant to chapter 28E
16by a city or cities, or other political subdivisions, and
17public or private agencies for the purposes of providing
18wastewater, sewer system, storm water drainage, or sewage
19treatment services shall have the same powers and duties as a
20city utility or enterprise under this subsection with respect
21to account holders and subsequent owners, or with respect to
22properties and premises, associated with a delinquent account
23under this subsection.
24(2) The governing body of a city utility, combined city
25utility, city enterprise, or combined city enterprise may
26enter into an agreement with a legal entity described in
27subparagraph (1) to discontinue or disconnect water service
28to a property or premises if an account owed the legal entity
29for wastewater, sewer system, storm water drainage, or sewage
30treatment services provided to that customer’s property or
31premises becomes delinquent. The customer shall be responsible
32for all costs associated with discontinuing or disconnecting
33 and reestablishing water service disconnected pursuant to this
34paragraph “e”.
35(3) This paragraph “e” shall not apply to a property or
-2-1premises if, prior to July 1, 2015, the account holder for
2that property or premises had an established account with a
3legal entity described in subparagraph (1) for the provision
4of wastewater, sewer system, storm water drainage, or sewage
5treatment services to the property or premises.
6f. (1) A legal entity providing wastewater, sewer system,
7storm water drainage, or sewage treatment services to a city or
8cities or other political subdivisions pursuant to a franchise
9or other agreement shall have the same powers and duties as a
10city utility or enterprise under this subsection with respect
11to account holders and subsequent owners, or with respect to
12properties and premises, associated with a delinquent account
13under this subsection.
14(2) The governing body of a city utility, combined city
15utility, city enterprise, or combined city enterprise may
16enter into an agreement with a legal entity described in
17subparagraph (1) to discontinue or disconnect water service
18to a property or premises if an account owed the legal entity
19for wastewater, sewer system, storm water drainage, or sewage
20treatment services provided to that customer’s property or
21premises becomes delinquent. The customer shall be responsible
22for all costs associated with discontinuing or disconnecting
23 and reestablishing water service disconnected pursuant to this
24paragraph “f”.
25(3) This paragraph “f” shall not apply to a property or
26premises if, prior to July 1, 2015, the account holder for
27that property or premises had an established account with a
28legal entity described in subparagraph (1) for the provision
29of wastewater, sewer system, storm water drainage, or sewage
30treatment services to the property or premises.
31 Sec. 2. Section 384.84, subsection 4, paragraphs b and e,
32Code 2017, are amended to read as follows:
33b. The lien under paragraph “a” may be imposed upon a
34property or premises even if a city utility or enterprise
35service to the property or premises has been or may be
-3-1discontinued or disconnected as provided in this section.
2e. Residential rental property where a charge for any of the
3services of sewer systems, storm water drainage systems, sewage
4treatment, solid waste collection, and solid waste disposal
5is paid directly to the city utility or enterprise by the
6tenant is exempt from a lien for delinquent rates or charges
7associated with such services if the landlord gives written
8notice to the city utility or enterprise that the property
9is residential rental property and that the tenant is liable
10for the rates or charges. A city utility or enterprise may
11require a deposit not exceeding the usual cost of ninety days
12of the services of gas, electric, sewer systems, storm water
13drainage systems, sewage treatment, solid waste collection, and
14solid waste disposal to be paid to the utility or enterprise.
15Upon receipt, the utility or enterprise shall acknowledge the
16notice and deposit. A written notice shall contain the name
17of the tenant responsible for the charges, the address of the
18residential rental property that the tenant is to occupy, and
19the date that the occupancy begins. A change in tenant shall
20require a new written notice to be given to the city utility or
21enterprise within thirty business days of the change in tenant.
22When the tenant moves from the rental property, the city
23utility or enterprise shall return the deposit if the charges
24for the services of gas, electric, sewer systems, storm water
25drainage systems, sewage treatment, solid waste collection,
26and solid waste disposal are paid in full. A change in the
27ownership of the residential rental property shall require
28written notice of such change to be given to the city utility
29or enterprise within thirty business days of the completion
30of the change of ownership. The lien exemption for rental
31property does not apply to charges for repairs related to a
32service of sewer systems, storm water drainage systems, sewage
33treatment, solid waste collection, and solid waste disposal if
34the repair charges become delinquent.
35 Sec. 3. Section 384.84, subsection 8, paragraphs b and c,
-4-1Code 2017, are amended to read as follows:
2b. Two or more city utilities, combined utility systems,
3city enterprises, or combined city enterprises, including city
4utilities established pursuant to chapter 388, may contract
5pursuant to chapter 28E for joint billing or collection, or
6both, of combined service accounts for utility or enterprise
7services, or both. The contracts may provide for the
8discontinuance or disconnection of one or more of the city
9utility or enterprise services if a delinquency occurs in the
10payment of any charges billed under a combined service account.
11c. One or more city utilities or combined utility systems,
12including city utilities established pursuant to chapter 388,
13may contract pursuant to chapter 28E with one or more sanitary
14districts established pursuant to chapter 358 for joint billing
15or collection, or both, of combined service accounts from
16utility services and sanitary district services. The contracts
17may provide for the discontinuance or disconnection of one or
18more of the city water utility services or sanitary district
19services if a delinquency occurs in the payment of any charges
20billed under a combined service account.
21 Sec. 4. Section 476.1B, subsection 1, paragraph e, Code
222017, is amended to read as follows:
23e. Disconnection of service, as set forth in section 476.20,
24subsections 1 through 4.
25 Sec. 5. Section 476.20, subsection 5, paragraph a,
26unnumbered paragraph 1, Code 2017, is amended to read as
27follows:
28The board shall establish rules which shall be uniform with
29respect to all public utilities furnishing gas or electricity
30relating to deposits which may be required by the public
31utility for the initiation or reinstatement of service. This
32subsection shall not apply to municipally owned utilities,
33which shall be governed by the provisions of section 384.84
34with respect to deposits and payment plans for delinquent
35amounts owed. Municipally owned utilities shall not be subject
-5-1to the board’s rules in regards to deposits and payment plans
2for delinquent amounts owed and repayment of past due debt.
3EXPLANATION
4The inclusion of this explanation does not constitute agreement with
5the explanation’s substance by the members of the general assembly.
6This bill relates to municipal utilities.
7The bill modifies the terminology throughout Code section
8384.84(3), which relates to the discontinuance of services by
9city utilities, by changing references to the discontinuance of
10services to also include the disconnection of services.
11Currently, Code section 476.1B provides that a municipally
12owned utility is not subject to regulation by the Iowa
13utilities board, subject to certain specified exceptions. One
14such exception is with regard to disconnection of service,
15as provided in Code section 476.20. The bill modifies this
16reference to Code section 476.20 to limit the applicability
17of board regulation to subsections 1 through 4 of the Code
18section. This renders provisions contained in Code section
19476.20, subsection 5, regarding the board establishing rules
20relating to deposits which may be required by a utility for
21the initiation or reinstatement of service, inapplicable to
22municipal utilities.
23Current Code section 476.20(5) requires the board to
24establish uniform rules for public utilities with respect
25to deposits required for the initiation or reinstatement of
26service. The bill provides that Code section 476.20(5) does
27not apply to municipally owned utilities, which are governed by
28the provisions of Code section 384.84 with respect to deposits
29and payment plans for delinquent amounts owed. The bill also
30provides that municipally owned utilities are not subject to
31the board’s rules in regards to deposits and payment plans for
32delinquent amounts owed and repayment of past due debt.
-6-gh/nh