Bill Summary – FastDemocracy

Senate File 552 - Introduced
                                  SENATE FILE 552
                                  BY COMMITTEE ON COMMERCE
                                  (SUCCESSOR TO SF 135)
                            A BILL FOR
An Act relating to utilities at rental properties and
  landlords’ ability to use security deposits to satisfy
  delinquent utility accounts.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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    Section 1. Section 384.84, subsection 3, paragraph c, Code
 2021, is amended to read as follows:
    c. A city utility or enterprise service to a property or
 premises shall not be discontinued or disconnected unless prior
 written notice is sent, by ordinary mail, to the account holder
 in whose name the delinquent rates or charges were incurred,
 informing the account holder of the nature of the delinquency
 and affording the account holder the opportunity for a hearing
 prior to discontinuance or disconnection of service. If the
 account holder is a tenant, and if the owner or landlord of the
 property or premises has made a written request for notice,
 the notice shall also be given to the owner or landlord within
 thirty days of the delinquency. If the account holder is a
 tenant and requests a change of name for service under the
 account, such request shall be sent to the owner or landlord
 of the property if the owner or landlord has made a written
 request for notice of any change of name for service under the
 account to the rental property.
    Sec. 2. Section 384.84, subsection 4, paragraph d,
 subparagraphs (1) and (2), Code 2021, are amended to read as
 follows:
    (1) Residential or commercial rental property where
 a charge for water service is separately metered and paid
 directly to the city utility or enterprise by the tenant is
 exempt from a lien for delinquent rates or charges associated
 with such water service if the landlord gives written notice to
 the city utility or enterprise that the property is residential
 or commercial rental property and that the tenant is liable
 for the rates or charges. A city utility or enterprise may
 require a deposit not exceeding the usual cost of ninety days
 of water service to be paid to the utility or enterprise. Upon
 receipt, the utility or enterprise shall acknowledge the notice
 and deposit. A written notice shall contain the name of the
 tenant responsible for charges, address of the residential or
 commercial rental property that the tenant is to occupy, and
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                                S.F. 552
 the date that the occupancy begins.
    (2) A change in tenant for a residential rental property
 shall require a new written notice to be given to the city
 utility or enterprise within thirty business days of the change
 in tenant. A change in tenant for a commercial rental property
 shall require a new written notice to be given to the city
 utility or enterprise within ten business days of the change
 in tenant. When the tenant moves from the rental property,
 the city utility or enterprise shall return the deposit if the
 water service charges are paid in full.
    Sec. 3. Section 384.84, subsection 4, paragraph e, Code
 2021, is amended to read as follows:
    e. Residential rental property where a charge for any of the
 services of sewer systems, storm water drainage systems, sewage
 treatment, solid waste collection, and solid waste disposal
 is paid directly to the city utility or enterprise by the
 tenant is exempt from a lien for delinquent rates or charges
 associated with such services if the landlord gives written
 notice to the city utility or enterprise that the property is
 residential rental property and that the tenant is liable for
 the rates or charges. A city utility or enterprise may require
 a deposit not exceeding the usual cost of ninety days of the
 services of sewer systems, storm water drainage systems, sewage
 treatment, solid waste collection, and solid waste disposal
 to be paid to the utility or enterprise. A city utility or
 enterprise may require a deposit not exceeding the usual cost
 of sixty days of the services of gas and electric to be paid
 to the utility or enterprise. Upon receipt, the utility or
 enterprise shall acknowledge the notice and deposit. A written
 notice shall contain the name of the tenant responsible for
 the charges, the address of the residential rental property
 that the tenant is to occupy, and the date that the occupancy
 begins. A change in tenant shall require a new written notice
 to be given to the city utility or enterprise within thirty
 business days of the change in tenant. When the tenant moves
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                                         S.F. 552
 from the rental property, the city utility or enterprise shall
 return the deposit if the charges for the services of gas,
 electric, sewer systems, storm water drainage systems, sewage
 treatment, solid waste collection, and solid waste disposal are
 paid in full. A change in the ownership of the residential
 rental property shall require written notice of such change
 to be given to the city utility or enterprise within thirty
 business days of the completion of the change of ownership.
 The lien exemption for rental property does not apply to
 charges for repairs related to a service of sewer systems,
 storm water drainage systems, sewage treatment, solid waste
 collection, and solid waste disposal if the repair charges
 become delinquent.
    Sec. 4. Section 562A.12, subsection 3, paragraph a, Code
 2021, is amended by adding the following new subparagraph:
    NEW SUBPARAGRAPH. (4) To satisfy debts for a tenant’s
 delinquent utility account.
                           EXPLANATION
         The inclusion of this explanation does not constitute agreement with
          the explanation’s substance by the members of the general assembly.
    This bill relates to utilities at rental properties.
    Under current law, an owner or landlord may request to
 receive a copy of the written notice of delinquent rates or
 charges sent by a city utility or enterprise service to an
 account holder. The bill specifies that such notice must
 be provided to the owner or landlord within 30 days of the
 delinquency.
    Under current law, for a residential or commercial rental
 property to be exempt from a lien for delinquent rates or
 charges imposed by a city utility or enterprise, a landlord
 must provide the name of a tenant who is responsible for
 charges to the city utility or enterprise when the tenant is
 delinquent in paying rates or charges. A landlord must provide
 a new notice if a tenant that is responsible for a delinquency
 moves out.
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                                S.F. 552
    The bill removes the requirement that a landlord provide
 the name of a tenant that is responsible for a delinquency in
 a notice to a city utility or enterprise. The bill removes
 the requirement that a landlord provide a new notice to a
 city utility or enterprise if the tenant responsible for a
 delinquency moves out.
    The bill provides that the landlord may withhold from a
 tenant’s security deposit amounts as reasonably necessary to
 pay for delinquent utility accounts the tenant was responsible
 to pay during the tenancy.
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Statutes affected: 
Introduced: 384.84, 562A.12