Bill Text: IA SF2308 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act relating to utility service cost disclosures in connection with certain rental properties, providing civil penalties, and including effective date provisions.(Formerly SF 2224, SSB 3113.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2022-03-24 - Referred to Commerce. S.J. 621. [SF2308 Detail]
Download: Iowa-2021-SF2308-Introduced.html
Senate
File
2308
-
Introduced
SENATE
FILE
2308
BY
COMMITTEE
ON
COMMERCE
(SUCCESSOR
TO
SF
2224)
A
BILL
FOR
An
Act
relating
to
utility
service
cost
disclosures
in
1
connection
with
certain
rental
properties,
providing
civil
2
penalties,
and
including
effective
date
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
Section
476.1C,
subsection
1,
paragraph
a,
Code
1
2022,
is
amended
to
read
as
follows:
2
a.
Are
not
subject
to
the
regulation
authority
of
3
the
utilities
board
under
this
chapter
unless
otherwise
4
specifically
provided.
Sections
476.10
,
476.20
,
476.21
,
and
5
476.51
,
and
476.56
apply
to
such
gas
utilities.
6
Sec.
2.
Section
476.56,
Code
2022,
is
amended
to
read
as
7
follows:
8
476.56
Energy
costs
provided.
9
A
gas
or
electric
public
utility
shall
provide,
upon
the
10
request
of
a
person
who
states
in
writing
that
the
person
is
an
11
owner
of
real
property,
or
an
interested
prospective
purchaser
12
or
renter
of
the
property,
which
is
or
has
been
receiving
gas
13
or
electric
service
from
the
public
utility,
the
annual
gas
14
or
electric
energy
costs
for
the
property.
In
addition,
a
15
gas
or
electric
public
utility
and,
notwithstanding
section
16
476.1,
subsection
4,
a
public
utility
furnishing
water
or
sewer
17
service,
shall
comply
with
the
utility
service
cost
disclosure
18
provisions
of
section
562A.13A,
subsection
4.
19
Sec.
3.
NEW
SECTION
.
562A.13A
Utility
service
cost
20
disclosure
——
penalty.
21
1.
For
purposes
of
this
section,
unless
the
context
22
otherwise
requires:
23
a.
“Applicable
public
utility”
means
a
public
utility
which
24
furnishes
electric,
gas,
water,
or
sewer
service
to
a
rental
25
property.
26
b.
“Landlord”
means
a
landlord
as
defined
in
section
562A.6,
27
or
any
other
person
authorized
to
enter
into
a
rental
agreement
28
on
behalf
of
the
landlord
with
respect
to
a
rental
property.
29
c.
(1)
“Rental
property”
means
a
residential
rental
30
building
in
the
state
with
twelve
or
more
dwelling
units.
31
(2)
“Rental
property”
does
not
include
a
residential
rental
32
building
which
uses
a
master
meter.
33
d.
“Utility
service”
means
electric,
gas,
water,
and
sewer
34
service.
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2.
In
addition
to
the
required
disclosure
provisions
of
1
section
562A.13,
a
landlord
of
rental
property
shall
disclose
2
to
a
prospective
tenant
in
writing
a
utility
service
cost
3
disclosure
statement
in
accordance
with
this
section.
At
4
least
one
adult
prospective
tenant
entering
into
the
tenancy
5
shall
sign
an
acknowledgment
form
stating
that
the
prospective
6
tenant
received
the
disclosure
statement
upon
completing
the
7
rental
application
or
before
signing
the
lease,
whichever
8
occurs
first.
Proof
by
the
landlord
that
at
least
one
adult
9
prospective
tenant
signed
a
valid
acknowledgment
form
shall
be
10
a
defense
to
any
claim
or
action
brought
under
subsection
6.
11
3.
a.
The
cost
information
included
in
a
utility
service
12
cost
disclosure
statement
shall
indicate
the
average
annual
13
costs
for
utility
service
for
dwelling
units
in
the
rental
14
property
with
the
same
number
of
bedrooms.
If
a
landlord
15
charges
tenants
for
utility
services
using
a
ratio
utility
16
billing
system,
or
a
billing
method
which
allocates
the
rental
17
property’s
actual
utility
bill
to
tenants
based
on
an
occupant
18
factor,
square
footage
factor,
or
any
other
factor,
the
cost
19
information
shall
include
the
average
charges
for
utility
20
service
in
the
previous
twelve-month
period,
including
any
21
fees,
for
dwelling
units
in
the
rental
property
with
the
same
22
number
of
bedrooms.
If
a
landlord
has
authority
over
more
23
than
one
rental
property
of
similar
construction
and
within
24
the
same
business
office,
and
such
rental
properties
have
the
25
same
utility
service
payment
structure
with
the
same
applicable
26
public
utility,
the
disclosure
statement
may
indicate
the
27
average
annual
costs
for
utility
service
for
dwelling
units
in
28
all
such
rental
properties
with
the
same
number
of
bedrooms.
29
For
purposes
of
this
paragraph,
“of
similar
construction”
means
30
sharing
common
construction
details,
including
but
not
limited
31
to
comparable
building
envelope
designs
or
structural
features,
32
comparable
arrangements
for
access
to
hallways,
dwelling
units,
33
common
areas,
and
washers
or
dryers,
and
comparable
functions
34
of
utility
services.
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b.
The
cost
information
included
in
a
disclosure
statement
1
shall
be
computed
by
April
1
each
year
pursuant
to
subsection
2
4
and
shall
be
valid
and
included
in
any
disclosure
statement
3
provided
by
the
landlord
until
the
last
day
of
March
of
the
4
following
year.
In
the
event
that
a
rental
property
was
5
acquired
by
the
landlord
within
the
previous
twelve-month
6
period,
disclosure
statements
shall
be
provided
by
the
landlord
7
to
prospective
tenants
beginning
ninety
days
after
the
date
of
8
closing.
9
4.
a.
The
landlord
shall
obtain
the
cost
information
10
required
in
subsection
3
from
the
applicable
public
utility
11
by
sending
a
written
request
to
the
utility
between
January
1
12
and
February
1
of
each
year.
The
written
request
shall,
at
a
13
minimum,
include
the
following
information:
14
(1)
The
name,
address,
and
telephone
number
of
the
landlord.
15
(2)
The
number
of
bedrooms
in
each
dwelling
unit
in
the
16
rental
property.
17
(3)
If
cost
information
is
to
be
computed
for
more
than
18
one
rental
property,
a
description
of
the
applicable
rental
19
properties
and
the
number
of
bedrooms
in
each
dwelling
unit
in
20
all
such
rental
properties.
21
(4)
Any
other
information
deemed
necessary
by
the
22
applicable
public
utility
to
compute
the
cost
information.
23
b.
The
applicable
public
utility
shall
compute
the
cost
24
information
for
the
landlord
at
no
charge
and
shall
provide
25
such
information
to
the
landlord
within
thirty
days
of
26
receiving
the
landlord’s
written
request,
unless
the
parties
27
otherwise
agree
in
writing
to
extend
the
time.
The
applicable
28
public
utility
may
use
any
methodology
to
compute
the
cost
29
information,
provided
that
the
average
costs
are
based
on
30
dwelling
units
with
the
same
number
of
bedrooms,
and
the
31
methodology
used
to
compute
the
cost
information
is
disclosed
32
to
the
landlord
in
writing.
33
c.
If
the
landlord
fails
to
obtain
cost
information
from
34
the
applicable
public
utility
within
thirty
days
of
sending
a
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valid
written
request
or
as
otherwise
agreed
to
in
writing,
1
the
rental
property
is
new
construction
or
was
renovated
in
2
the
previous
twelve-month
period
where
the
total
cost
of
the
3
renovation
was
greater
than
twenty-five
percent
of
the
assessed
4
value
of
the
rental
property,
or
if
subsection
7
is
applicable,
5
the
landlord
shall
include,
in
lieu
of
the
cost
information
6
required
in
subsection
3,
any
of
the
following
in
the
utility
7
service
cost
disclosure
statement:
8
(1)
An
estimate
of
anticipated
annual
utility
service
costs
9
provided
by
the
applicable
public
utility.
10
(2)
An
estimate
of
anticipated
annual
utility
service
costs
11
provided
by
a
licensed,
registered,
or
certified
professional
12
with
expertise
in
computing
utility
service
costs.
13
(3)
An
estimate
of
anticipated
annual
utility
service
costs
14
consistent
with
the
United
States
department
of
housing
and
15
urban
development
section
8
guidelines.
16
5.
The
landlord
shall
retain
and
preserve
all
records
17
relating
to
cost
information
obtained
pursuant
to
subsection
4
18
for
a
period
of
not
less
than
one
year.
On
reasonable
notice,
19
a
tenant
may
inspect
and
copy
any
such
records
during
regular
20
business
hours.
21
6.
A
landlord
of
rental
property
who
enters
into
a
rental
22
agreement
with
a
tenant
without
providing
a
utility
service
23
cost
disclosure
statement
in
violation
of
this
section
shall
24
pay
the
tenant
liquidated
damages
in
the
amount
of
one
hundred
25
dollars.
If
the
landlord
fails
to
pay
the
tenant
such
amount
26
within
thirty
days
of
receiving
a
written
request
for
payment
27
from
the
tenant,
the
tenant
may
bring
a
civil
action
in
small
28
claims
court.
If
a
final
judgment
is
entered
against
the
29
landlord,
the
tenant
shall
recover
damages
in
the
amount
of
one
30
hundred
dollars,
as
well
as
court
costs
and
reasonable
attorney
31
fees
incurred
by
the
tenant
in
bringing
the
action.
The
32
landlord
shall
also
be
subject
to
a
civil
penalty
in
the
amount
33
of
five
hundred
dollars.
Such
civil
penalty
shall
be
remitted
34
to
the
division
of
community
action
agencies
of
the
department
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of
human
rights,
to
be
used
only
for
the
low
income
home
energy
1
assistance
program
and
the
weatherization
assistance
program.
2
7.
This
section
shall
not
apply
to
a
rural
electric
3
cooperative
or
a
municipal
utility
which
does
not
provide
4
budget
billing
to
customers,
or
a
billing
system
in
which
5
customers
are
charged
a
set
amount
each
month
over
a
specific
6
time
period.
7
Sec.
4.
EFFECTIVE
DATE.
This
Act
takes
effect
January
1,
8
2023.
9
EXPLANATION
10
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
11
the
explanation’s
substance
by
the
members
of
the
general
assembly.
12
This
bill
establishes
new
Code
section
562A.13A
within
the
13
uniform
residential
landlord
and
tenant
law
provisions
of
Code
14
chapter
562A,
relating
to
utility
service
cost
disclosure
15
requirements
for
certain
rental
properties.
16
The
bill
defines
“applicable
public
utility”
to
mean
a
17
public
utility
which
furnishes
electric,
gas,
water,
or
sewer
18
service
to
a
rental
property.
“Landlord”
is
defined
as
a
19
landlord
as
defined
in
Code
section
562A.6,
or
any
other
person
20
authorized
to
enter
into
a
rental
agreement
on
behalf
of
the
21
landlord
with
respect
to
a
rental
property.
“Rental
property”
22
is
defined
as
a
residential
rental
building
in
Iowa
with
12
or
23
more
dwelling
units,
but
does
not
include
a
residential
rental
24
building
which
uses
a
master
meter.
“Utility
service”
is
25
defined
as
electric,
gas,
water,
and
sewer
service.
26
The
bill
requires
a
landlord
of
rental
property
to
disclose
27
to
a
prospective
tenant
a
utility
service
cost
disclosure
28
statement
in
writing
in
accordance
with
the
bill.
At
least
29
one
adult
prospective
tenant
entering
into
the
tenancy
shall
30
sign
an
acknowledgment
form
stating
that
the
tenant
received
31
the
disclosure
statement
upon
completing
the
rental
application
32
or
before
signing
the
lease,
whichever
occurs
first,
which
33
shall
be
a
defense
to
any
claim
that
the
landlord
violated
the
34
disclosure
provisions.
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The
bill
provides
that
the
disclosure
statement
shall
1
indicate
the
average
annual
costs
for
utility
service
for
2
dwelling
units
in
the
rental
property
with
the
same
number
of
3
bedrooms.
If
a
landlord
charges
tenants
using
a
ratio
utility
4
billing
system,
as
described
in
the
bill,
the
cost
information
5
shall
include
the
average
charges
for
utility
service
in
the
6
previous
year,
including
any
fees,
for
dwelling
units
in
the
7
property
with
the
same
number
of
bedrooms.
If
a
landlord
8
has
more
than
one
rental
property
of
similar
construction,
9
as
defined
in
the
bill,
and
with
the
same
utility
service
10
payment
structure
for
the
same
applicable
public
utility,
the
11
disclosure
statement
may
indicate
the
average
annual
costs
for
12
dwelling
units
in
all
such
rental
properties
with
the
same
13
number
of
bedrooms.
14
The
bill
provides
that
cost
information
shall
be
computed
15
by
April
1
each
year,
which
shall
be
valid
and
included
in
any
16
disclosure
statement
provided
until
the
last
day
of
March
of
17
the
following
year.
If
the
rental
property
was
acquired
by
the
18
landlord
within
the
previous
year,
disclosure
statements
shall
19
be
provided
by
the
landlord
beginning
90
days
after
the
date
20
of
closing.
21
The
bill
provides
that
the
landlord
shall
obtain
the
cost
22
information
included
in
a
disclosure
statement
from
the
23
applicable
public
utility
by
sending
a
written
request
to
the
24
utility
between
January
1
and
February
1
of
each
year,
with
25
information
described
in
the
bill.
The
utility
shall
compute
26
and
provide
such
information
to
the
landlord
at
no
charge
27
within
30
days
of
receiving
such
request,
unless
otherwise
28
agreed
to
by
the
parties
in
writing.
The
utility
may
use
29
any
methodology
to
compute
the
cost
information,
provided
30
that
average
costs
are
based
on
dwelling
units
with
the
same
31
number
of
bedrooms
and
the
methodology
used
is
disclosed
to
the
32
landlord
in
writing.
33
The
bill
provides
that
if
the
landlord
fails
to
obtain
cost
34
information
from
the
applicable
public
utility
within
30
days
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or
as
otherwise
agreed
to
in
writing,
the
rental
property
is
1
new
construction
or
was
renovated
in
the
previous
year
where
2
the
total
cost
of
the
renovation
was
greater
than
25
percent
3
of
the
assessed
property
value,
or
if
the
utility
disclosure
4
provisions
do
not
apply
to
the
applicable
public
utility
as
5
specified
in
the
bill,
the
landlord
shall
include
in
the
6
disclosure
statement
an
estimate
of
anticipated
annual
utility
7
service
costs
as
described
in
the
bill.
8
The
bill
provides
that
a
landlord
shall
retain
all
records
9
relating
to
cost
information
for
a
period
of
not
less
than
one
10
year.
A
tenant
may
inspect
and
copy
such
records
on
reasonable
11
notice
and
during
regular
business
hours.
12
The
bill
provides
that
a
landlord
of
rental
property
who
13
enters
into
a
rental
agreement
with
a
tenant
without
providing
14
a
utility
service
cost
disclosure
statement
in
violation
of
15
the
bill
shall
pay
the
tenant
liquidated
damages
in
the
sum
16
of
$100.
If
the
landlord
fails
to
pay
the
tenant
such
amount
17
within
30
days
of
receiving
a
written
request
from
the
tenant
18
to
do
so,
the
tenant
may
bring
a
civil
action
in
small
claims
19
court.
If
a
final
judgment
is
entered
against
the
landlord,
20
the
tenant
shall
recover
$100
in
damages,
as
well
as
court
21
costs
and
reasonable
attorney
fees.
The
landlord
shall
also
22
be
subject
to
a
civil
penalty
of
$500,
to
be
remitted
to
the
23
division
of
community
action
agencies
of
the
department
of
24
human
rights,
and
used
only
for
specified
purposes.
25
The
bill
provides
that
Code
section
562A.13A
shall
not
apply
26
to
a
rural
electric
cooperative
or
a
municipal
utility
which
27
does
not
provide
budget
billing
to
customers,
as
described
in
28
the
bill.
29
The
bill
modifies
Code
section
476.56,
relating
to
the
30
provision
of
energy
costs
by
gas
or
electric
utilities,
31
by
requiring
gas
and
electric
utilities,
as
well
as
public
32
utilities
furnishing
water
or
sewer
service,
to
comply
with
the
33
utility
service
cost
disclosure
provisions
of
the
bill.
The
34
bill
also
makes
Code
section
476.56
applicable
to
gas
public
35
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2308
utilities
with
less
than
2,000
customers.
1
Current
law
provides
that
a
public
utility
which,
after
2
written
notice
from
the
Iowa
utilities
board
of
a
specified
3
violation
of
a
provision
in
Code
chapter
476,
violates
the
4
same
provision
is
subject
to
a
civil
penalty
of
at
least
$100
5
but
not
more
than
$2,500
per
violation.
If
the
violation
is
6
willful,
the
civil
penalty
increases
to
at
least
$1,000
but
not
7
more
than
$10,000
per
violation.
8
The
bill
takes
effect
January
1,
2023.
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