Iowa-2017-HF64-Introduced
House File 64 - Introduced
HOUSE FILE
BY ISENHART
A BILL FOR
1 An Act relating to utility cost disclosures in connection
2 with rental properties, providing penalties, and including
3 applicability provisions.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN
1 1 Section 1. Section 476.56, Code 2017, is amended to read as
1 2 follows:
1 3 476.56 Energy costs provided.
1 4 A gas or electric public utility shall provide, upon the
1 5 request of a person who states in writing that the person is an
1 6 owner of real property, or an interested prospective purchaser
1 7 or renter of the property, which is or has been receiving gas
1 8 or electric service from the public utility, the annual gas
1 9 or electric energy costs for the property. A gas or electric
1 10 public utility and, notwithstanding section 476.1, subsection
1 11 5, a public utility furnishing water or sewer service, shall
1 12 comply with the utility service cost disclosure provisions of
1 13 section 562A.13A with regard to existing or prospective renters
1 14 of real property.
1 15 Sec. 2. NEW SECTION. 562A.13A Utility service cost
1 16 disclosure statements ==== penalty.
1 17 1. In addition to the required disclosure provisions
1 18 of section 562A.13, the landlord or a person authorized to
1 19 enter into a rental agreement on behalf of the landlord shall
1 20 disclose to a prospective tenant in writing at or before the
1 21 commencement of the tenancy, and to an existing tenant at any
1 22 point during the tenancy, the gas, electric, water, or sewer
1 23 utility service costs for a dwelling unit. Utility service
1 24 costs shall be provided with respect to a dwelling unit for the
1 25 preceding twelve=month period based upon information obtained
1 26 at no charge by the landlord or person authorized to enter
1 27 into the rental agreement from the utility furnishing utility
1 28 service, pursuant to an energy cost disclosure statement
1 29 developed pursuant to subsection 2. In the event that
1 30 utility service has been provided for a period of less than
1 31 one year, cost information shall be provided for the period
1 32 beginning when utility service commenced. In the event of new
1 33 construction, utility service cost information from similar
1 34 dwelling units in similar properties may be obtained in writing
1 35 from a utility and supplied to a prospective tenant, or in
2 1 the alternative, a landlord may obtain a written estimate of
2 2 anticipated utility service costs from a utility or an energy
2 3 consultant.
2 4 2. The office of consumer advocate shall develop the
2 5 format of an energy cost disclosure statement for utilization
2 6 by landlords in complying with this section. The format
2 7 developed shall include space for the disclosure of the
2 8 annual utility service costs, and shall also include space
2 9 for a representative list of energy efficiency standards
2 10 incorporating features or upgrades that a dwelling unit or
2 11 the building of which it is a part might conceivably exhibit
2 12 or offer. The list of energy efficiency standards shall
2 13 be developed by the office of the consumer advocate, in
2 14 consultation with state and federal energy efficiency agencies
2 15 and experts, and shall be accompanied by a space for notation
2 16 by the landlord indicating whether or not the unit or building
2 17 meets or exceeds each standard.
2 18 3. A landlord who fails to comply with the requirements of
2 19 this section upon receipt of a written notice by a tenant or
2 20 a prospective tenant that utility service costs have not been
2 21 disclosed shall have seven days from the date of receipt of the
2 22 notice to provide the required utility service cost disclosure
2 23 statement. A landlord who fails to provide the disclosure
2 24 statement within the seven=day period or who enters into a
2 25 rental agreement with a tenant without first disclosing utility
2 26 service costs on a disclosure statement or who misrepresents
2 27 utility service costs on a disclosure statement shall be
2 28 subject to a civil penalty of five hundred dollars. Such
2 29 penalty shall be imposed by the office of consumer advocate or
2 30 pursuant to a civil proceeding regarding recovery of damages
2 31 by a tenant for nondisclosure, and shall be remitted to the
2 32 division of community action agencies for deposit into the
2 33 energy crisis fund created in section 216A.102.
2 34 Sec. 3. APPLICABILITY. This Act applies to rental
2 35 agreements entered into on or after January 1, 2018.
3 1 EXPLANATION
3 2 The inclusion of this explanation does not constitute agreement with
3 3 the explanation's substance by the members of the general assembly.
3 4 This bill relates to utility cost disclosure requirements in
3 5 connection with rental properties.
3 6 The bill modifies provisions of Code section 476.56,
3 7 relating to the provision of energy costs by a gas or electric
3 8 utility upon request with regard to the purchase or rental
3 9 of real property, to provide that the Code section refers to
3 10 ownership or prospective ownership of real property, not the
3 11 rental or prospective rental of the property.
3 12 The bill establishes new Code section 562A.13A within the
3 13 uniform residential landlord and tenant law provisions of Code
3 14 chapter 562A requiring that a landlord or a person authorized
3 15 to enter into a rental agreement on behalf of the landlord
3 16 shall disclose to a prospective tenant in writing at or before
3 17 the commencement of the tenancy, or to an existing tenant at
3 18 any point during the tenancy, the gas, electric, water, or
3 19 sewer utility service costs for a dwelling unit. The bill
3 20 specifies that the utility service costs shall be provided with
3 21 respect to a dwelling unit for the preceding 12=month period,
3 22 or for the period beginning when utility service commenced
3 23 if less than one year, based upon information obtained at no
3 24 charge by the landlord or person authorized to enter into
3 25 the rental agreement from the utility furnishing utility
3 26 service. In the event of new construction, the bill requires
3 27 utility service cost information from similar dwelling units
3 28 in similar properties to be obtained in writing from a utility
3 29 and supplied to a prospective tenant, or in the alternative, a
3 30 landlord may obtain a written estimate of anticipated utility
3 31 service costs from a utility or an energy consultant.
3 32 The bill directs the office of consumer advocate to develop
3 33 an energy cost disclosure statement for utilization by
3 34 landlords, containing space for the disclosure of the utility
3 35 service costs and also including space for a representative
4 1 list of energy efficiency standards incorporating features or
4 2 upgrades that a dwelling unit or the building of which it is
4 3 a part might conceivably exhibit or offer. The bill provides
4 4 that the list of energy efficiency standards shall be developed
4 5 by the office in consultation with state and federal energy
4 6 efficiency agencies and experts and shall be accompanied by a
4 7 space for the landlord to indicate whether or not the unit or
4 8 building meets or exceeds each standard.
4 9 The bill provides that a landlord who fails to supply the
4 10 required utility service cost disclosure statement upon receipt
4 11 of a written notice by a tenant or a prospective tenant shall
4 12 have seven days from the date of receipt of the notice to
4 13 provide the required disclosure statement. If a landlord
4 14 fails to provide the disclosure statement within the seven=day
4 15 period, or enters into a rental agreement with a tenant without
4 16 first disclosing utility service costs or misrepresents utility
4 17 service costs on a disclosure statement, the bill provides that
4 18 the landlord shall be subject to a civil penalty of $500. The
4 19 penalty shall be imposed by the office of consumer advocate or
4 20 pursuant to a civil proceeding regarding recovery of damages
4 21 by a tenant for nondisclosure, and shall be remitted to the
4 22 division of community action agencies for deposit into the
4 23 energy crisis fund created in Code section 216A.102.
4 24 The bill applies to rental agreements entered into on or
4 25 after January 1, 2018.
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