Iowa-2019-SF351-Introduced

S.F. 351 Section 1. Section 476.1C, subsection 1, paragraph a, Code 1 2019, 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 2019, 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. “Rental property” means a residential rental building in 30 the state with twelve or more dwelling units. 31 d. “Utility service” means electric, gas, water, and sewer 32 service. 33 2. In addition to the required disclosure provisions of 34 562A.13, a landlord of rental property shall disclose to a 35 -1- LSB 1053XS (9) 88 gh/rn 1/ 7

S.F. 351 prospective tenant in writing a utility service cost disclosure 1 statement in accordance with this section. At least one 2 adult prospective tenant entering into the tenancy shall sign 3 an acknowledgment form stating that the prospective tenant 4 received the disclosure statement upon completing the rental 5 application or signing the lease, whichever occurs first. 6 Proof by the landlord that at least one adult prospective 7 tenant signed a valid acknowledgment form shall be a defense to 8 any claim or action brought under subsection 6. 9 3. a. The cost information included in a utility service 10 cost disclosure statement shall indicate the average annual 11 costs for utility service for dwelling units in the rental 12 property with the same number of bedrooms. If a landlord 13 charges tenants for utility services using a ratio utility 14 billing system, or a billing method which allocates the rental 15 property’s actual utility bill to tenants based on an occupant 16 factor, square footage factor, or any other factor, the cost 17 information shall include the average charges for utility 18 service in the previous twelve-month period, including any 19 fees, for dwelling units in the rental property with the same 20 number of bedrooms. If a landlord has authority over more 21 than one rental property of similar construction and within 22 the same business office, and such rental properties have the 23 same utility service payment structure with the same applicable 24 public utility, the disclosure statement may indicate the 25 average annual costs for utility service for dwelling units in 26 all such rental properties with the same number of bedrooms. 27 For purposes of this paragraph, “of similar construction” means 28 sharing common construction details, including but not limited 29 to comparable building envelope designs or structural features, 30 comparable arrangements for access to hallways, dwelling units, 31 common areas, and washers or dryers, and comparable functions 32 of utility services. 33 b. The cost information included in a disclosure statement 34 shall be computed by April 1 each year pursuant to subsection 35 -2- LSB 1053XS (9) 88 gh/rn 2/ 7

S.F. 351 4 and shall be valid and included in any disclosure statement 1 provided by the landlord until the last day of March of the 2 following year. In the event that a rental property was 3 acquired by the landlord within the previous twelve-month 4 period, disclosure statements shall be provided by the landlord 5 to prospective tenants beginning ninety days after the date of 6 closing. 7 4. a. The landlord shall obtain the cost information 8 required in subsection 3 from the applicable public utility 9 by sending a written request to the utility between January 1 10 and February 1 of each year. The written request shall, at a 11 minimum, include the following information: 12 (1) The name, address, and telephone number of the landlord. 13 (2) The number of bedrooms in each dwelling unit in the 14 rental property. 15 (3) If cost information is to be computed for more than 16 one rental property, a description of the applicable rental 17 properties and the number of bedrooms in each dwelling unit in 18 all such rental properties. 19 (4) Any other information deemed necessary by the 20 applicable public utility to compute the cost information. 21 b. The applicable public utility shall compute the cost 22 information for the landlord at no charge and shall provide 23 such information to the landlord within thirty days of 24 receiving the landlord’s written request, unless the parties 25 otherwise agree in writing to extend the time. The applicable 26 public utility may use any methodology to compute the cost 27 information, provided that the average costs are based on 28 dwelling units with the same number of bedrooms, and the 29 methodology used to compute the cost information is disclosed 30 to the landlord in writing. 31 c. If the landlord fails to obtain cost information from 32 the applicable public utility within thirty days of sending a 33 valid written request or as otherwise agreed to in writing, or 34 if the rental property is new construction or was renovated in 35 -3- LSB 1053XS (9) 88 gh/rn 3/ 7

S.F. 351 the previous twelve-month period where the total cost of the 1 renovation was greater than twenty-five percent of the assessed 2 value of the rental property, the landlord shall include, in 3 lieu of the cost information required in subsection 3, any of 4 the following in the utility service cost disclosure statement: 5 (1) An estimate of anticipated annual utility service costs 6 provided by the applicable public utility. 7 (2) An estimate of anticipated annual utility service costs 8 provided by a licensed, registered, or certified professional 9 with expertise in computing utility service costs. 10 (3) An estimate of anticipated annual utility service costs 11 consistent with the United States department of housing and 12 urban development section 8 guidelines. 13 5. The landlord shall retain and preserve all records 14 relating to cost information obtained pursuant to subsection 4 15 for a period of not less than one year. On reasonable notice, 16 a tenant may inspect and copy any such records during regular 17 business hours. 18 6. A landlord of rental property who enters into a rental 19 agreement with a tenant without providing a utility service 20 cost disclosure statement in violation of this section shall 21 pay the tenant liquidated damages in the amount of five hundred 22 dollars. If the landlord fails to pay the tenant such amount 23 within thirty days of receiving a written request for payment 24 from the tenant, the tenant may bring a civil action in small 25 claims court. If a final judgment is entered against the 26 landlord, the tenant shall recover damages in the amount of 27 five hundred dollars, as well as court costs and reasonable 28 attorney fees incurred by the tenant in bringing the action. 29 The landlord shall also be subject to a civil penalty in the 30 amount of five hundred dollars. Such civil penalty shall 31 be remitted to the division of community action agencies of 32 the department of human rights, to be used only for the low 33 income home energy assistance program and the weatherization 34 assistance program. 35 -4- LSB 1053XS (9) 88 gh/rn 4/ 7

S.F. 351 Sec. 4. EFFECTIVE DATE. This Act takes effect January 1, 1 2020. 2 EXPLANATION 3 The inclusion of this explanation does not constitute agreement with 4 the explanation’s substance by the members of the general assembly. 5 This bill establishes new Code section 562A.13A within the 6 uniform residential landlord and tenant law provisions of Code 7 chapter 562A, relating to utility service cost disclosure 8 requirements for certain rental properties. 9 The bill defines “applicable public utility” to mean a 10 public utility which furnishes electric, gas, water, or sewer 11 service to a rental property. “Landlord” is defined as a 12 landlord as defined in Code section 562A.6, or any other person 13 authorized to enter into a rental agreement on behalf of the 14 landlord with respect to a rental property. “Rental property” 15 is defined as a residential rental building in Iowa with 12 or 16 more dwelling units. “Utility service” is defined as electric, 17 gas, water, and sewer service. 18 The bill requires a landlord of rental property to disclose 19 to a prospective tenant a utility service cost disclosure 20 statement in writing in accordance with the bill. At least 21 one adult prospective tenant entering into the tenancy shall 22 sign an acknowledgment form stating that the tenant received 23 the disclosure statement upon completing the rental application 24 or signing the lease, whichever occurs first, which shall be a 25 defense to any claim that the landlord violated the disclosure 26 provisions. 27 The bill provides that the disclosure statement shall 28 indicate the average annual costs for utility service for 29 dwelling units in the rental property with the same number of 30 bedrooms. If a landlord charges tenants using a ratio utility 31 billing system, as described in the bill, the cost information 32 shall include the average charges for utility service in the 33 previous year, including any fees, for dwelling units in the 34 property with the same number of bedrooms. If a landlord 35 -5- LSB 1053XS (9) 88 gh/rn 5/ 7

S.F. 351 has more than one rental property of similar construction, 1 as defined in the bill, and with the same utility service 2 payment structure for the same applicable public utility, the 3 disclosure statement may indicate the average annual costs for 4 dwelling units in all such rental properties with the same 5 number of bedrooms. 6 The bill provides that cost information shall be computed 7 by April 1 each year, which shall be valid and included in any 8 disclosure statement provided until the last day of March of 9 the following year. If the rental property was acquired by the 10 landlord within the previous year, disclosure statements shall 11 be provided by the landlord beginning 90 days after the date 12 of closing. 13 The bill provides that the landlord shall obtain the cost 14 information included in a disclosure statement from the 15 applicable public utility by sending a written request to the 16 utility between January 1 and February 1 of each year, with 17 information described in the bill. The utility shall compute 18 and provide such information to the landlord at no charge 19 within 30 days of receiving such request, unless otherwise 20 agreed to by the parties in writing. The utility may use 21 any methodology to compute the cost information, provided 22 that average costs are based on dwelling units with the same 23 number of bedrooms and the methodology used is disclosed to the 24 landlord in writing. 25 The bill provides that if the landlord fails to obtain cost 26 information from the applicable public utility within 30 days 27 or as otherwise agreed to in writing, or if the rental property 28 is new construction or was renovated in the previous year where 29 the total cost of the renovation was greater than 25 percent of 30 the assessed property value, the landlord shall include in the 31 disclosure statement an estimate of anticipated annual utility 32 service costs as described in the bill. 33 The bill provides that a landlord shall retain all records 34 relating to cost information for a period of not less than one 35 -6- LSB 1053XS (9) 88 gh/rn 6/ 7

S.F. 351 year. A tenant may inspect and copy such records on reasonable 1 notice and during regular business hours. 2 The bill provides that a landlord of rental property who 3 enters into a rental agreement with a tenant without providing 4 a utility service cost disclosure statement in violation of 5 the bill shall pay the tenant liquidated damages in the sum 6 of $500. If the landlord fails to pay the tenant such amount 7 within 30 days of receiving a written request from the tenant 8 to do so, the tenant may bring a civil action in small claims 9 court. If a final judgment is entered against the landlord, 10 the tenant shall recover $500 in damages, as well as court 11 costs and reasonable attorney fees. The landlord shall also 12 be subject to a civil penalty of $500, to be remitted to the 13 division of community action agencies of the department of 14 human rights, and used only for specified purposes. 15 The bill modifies Code section 476.56, relating to the 16 provision of energy costs by gas or electric utilities, 17 by requiring gas and electric utilities, as well as public 18 utilities furnishing water or sewer service, to comply with the 19 utility service cost disclosure provisions of the bill. The 20 bill also makes Code section 476.56 applicable to gas public 21 utilities with less than 2,000 customers. 22 Current law provides that a public utility which, after 23 written notice from the Iowa utilities board of a specified 24 violation of a provision in Code chapter 476, violates the 25 same provision is subject to a civil penalty of at least $100 26 but not more than $2,500 per violation. If the violation is 27 willful, the civil penalty increases to at least $1,000 but not 28 more than $10,000 per violation. 29 The bill takes effect January 1, 2020. 30 -7- LSB 1053XS (9) 88 gh/rn 7/ 7