This bill establishes new regulations regarding sewer service charges imposed by city utilities in Iowa, specifically addressing situations where water does not enter the sewer system due to leaks or other failures. The general assembly asserts that municipal sewer charges should only recover costs associated with actual wastewater services. Therefore, it prohibits city utilities from charging for water that has not utilized sewer services, such as water lost from line leaks, service failures, or other conditions. The intent is to ensure that sewer fees are equitable and based solely on actual usage.

Under the bill, city utilities are required to adjust sewer service charges and refund any improperly collected fees upon reasonable verification of water loss. The bill allows cities to request reasonable documentation to confirm such losses but prohibits them from imposing unreasonable evidentiary burdens. Additionally, customers have a minimum of twelve months to request adjustments or refunds, and cities cannot adopt policies that circumvent these requirements. Customers affected by violations of this bill can file complaints or seek civil recovery for improperly collected fees. The provisions apply to all city utilities operating sewer systems in Iowa.