Bill Summary – FastDemocracy

Senate File 2106 - Introduced
                                  SENATE FILE 2106
                                  BY SHIPLEY
                                  (COMPANION TO 5770HH BY
                                   SIEGRIST)
                            A BILL FOR
An Act relating to landlords and tenants, including rental
  property utilities, the definition of rent, and forcible
  entry and detainer actions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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                                S.F. 2106
    Section 1. Section 384.84, subsection 4, paragraph d,
 subparagraphs (1) and (2), Code 2022, 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
 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. 2. Section 384.84, subsection 4, paragraph e, Code
 2022, 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
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                               S.F. 2106
 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
 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. 3. Section 562A.6, subsection 10, Code 2022, is amended
 to read as follows:
    10. “Rent” means a payment to be made to the landlord under
 the rental agreement, including base rent, utilities, late
 fees, and other payments made by the tenant to the landlord
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                                        S.F. 2106
 under the rental agreement.
    Sec. 4. Section 562A.12, subsection 3, paragraph a, Code
 2022, is amended by adding the following new subparagraph:
    NEW SUBPARAGRAPH. (4) To satisfy debts for a tenant’s
 delinquent utility account.
    Sec. 5. Section 562B.7, subsection 10, Code 2022, is amended
 to read as follows:
    10. “Rent” means a payment to be made to the landlord under
 the rental agreement, including base rent, utilities, late
 fees, and other payments made by the tenant to the landlord
 under the rental agreement.
    Sec. 6. Section 648.5, subsections 1 and 3, Code 2022, are
 amended to read as follows:
    1. a. An action for forcible entry and detainer shall
 be brought in a county where all or part of the premises is
 located. Such an action shall be tried as an equitable action.
 Upon receipt of the petition, the court shall set a date, time,
 and place for hearing. The court shall set the date of hearing
 no later than eight days from the filing date, except that the
 court shall set a later hearing date no later than fifteen days
 from the date of filing if the plaintiff requests or consents
 to the later date of hearing.
    b. The requirement regarding the setting of the initial
 hearing in paragraph “a” is not a jurisdictional requirement and
 does not affect the court’s subject matter jurisdiction to hear
 the action for forcible entry and detainer.
    3. Service of original notice by mail is deemed completed
 four days after the notice is deposited in the mail and
 postmarked for delivery, whether or not the recipient signs a
 receipt for the original notice. In computing the time for
 completion of service, the first day shall be excluded and the
 final day shall be included regardless of whether the fourth
 day is a Saturday, Sunday, or federal holiday.
                            EXPLANATION
         The inclusion of this explanation does not constitute agreement with
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                                       S.F. 2106
         the explanation’s substance by the members of the general assembly.
    This bill relates to landlords and tenants, including
 utilities at rental properties, usage of security deposits,
 the definition of rent, and service and initial hearing dates
 for forcible entry and detainer actions. 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.
    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 expands the definition of “rent” to include base
 rent, utilities, late fees, and other payments made by the
 tenant to the landlord under the rental agreement for purposes
 of Code chapters 562A (residential landlord and tenant law) and
 562B (mobile home park landlord and tenant law).
    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.
    Under current law, a court is required to set the date
 of hearing for a forcible entry and detainer no later than
 eight days from the filing date, except that the court shall
 set a later hearing date no later than 15 days from the date
 of filing if the plaintiff requests or consents to the later
 date of hearing. The bill provides that the time requirements
 for the setting of an initial hearing in a forcible entry
 and detainer action are not jurisdictional and do not affect
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                              S.F. 2106
 subject matter jurisdiction of a court to hear the action. The
 bill also provides that in computing time for completion of
 service of the original notice by mail in a forcible entry and
 detainer action, the first day shall be excluded and the final
 day shall be included regardless of whether the day falls on
 a weekend or federal holiday.
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Statutes affected: 
Introduced: 384.84, 562A.6, 562A.12, 562B.7