Bill Text: IA SF355 | 2017-2018 | 87th General Assembly | Enrolled

Iowa Senate Bill 355 (Prior Session Legislation)

Bill Title: A bill for an act relating to municipal utilities, by restricting the regulatory authority of the Iowa utilities board with regard to certain services, and authorizing city utilities to require deposits for gas or electric services for residential rental properties. (Formerly SSB 1004.) Effective 7-1-17.

Sponsorship: Committee Bill

Status: (Passed) 2017-04-13 - Signed by Governor. S.J. 1021. [SF355 Detail]

Download: Iowa-2017-SF355-Enrolled.html

Senate File 355 - Enrolled

SENATE FILE
BY COMMITTEE ON COMMERCE

(SUCCESSOR TO SSB
1004)
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A BILL FOR
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Senate File 355

AN ACT
RELATING TO MUNICIPAL UTILITIES, BY RESTRICTING THE
REGULATORY AUTHORITY OF THE IOWA UTILITIES BOARD WITH
REGARD TO CERTAIN SERVICES, AND AUTHORIZING CITY UTILITIES
TO REQUIRE DEPOSITS FOR GAS OR ELECTRIC SERVICES FOR
RESIDENTIAL RENTAL PROPERTIES.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 384.84, subsection 3, Code 2017, is
amended to read as follows:
3. a. A city utility or enterprise service to a property
or premises, including services of sewer systems, storm water
drainage systems, sewage treatment, solid waste collection,
water, solid waste disposal, or any of these services, may be
discontinued or disconnected if the account for the service
becomes delinquent. Gas or electric service provided by a city
utility or enterprise shall be discontinued or disconnected
only as provided by section 476.20, subsections 1 through 4,
and discontinuance or disconnection of those services are
is subject to rules adopted by the utilities board of the
department of commerce.
b. If more than one city utility or enterprise service is
billed to a property or premises as a combined service account,
all of the services may be discontinued or disconnected if the
account becomes delinquent.
c. A city utility or enterprise service to a property or
premises shall not be discontinued or disconnected unless prior
written notice is sent, by ordinary mail, to the account holder
in whose name the delinquent rates or charges were incurred,
informing the account holder of the nature of the delinquency
and affording the account holder the opportunity for a hearing
prior to discontinuance or disconnection of service. If the
account holder is a tenant, and if the owner or landlord of the
property or premises has made a written request for notice, the
notice shall also be given to the owner or landlord. If the
account holder is a tenant and requests a change of name for
service under the account, such request shall be sent to the
owner or landlord of the property if the owner or landlord has
made a written request for notice of any change of name for
service under the account to the rental property.
d. (1) If a delinquent amount is owed by an account
holder for a utility service associated with a prior property
or premises, a city utility, city enterprise, or combined
city enterprise may withhold service from the same account
holder at any new property or premises until such time as
the account holder pays the delinquent amount owing on the
account associated with the prior property or premises. A city
utility, city enterprise, or combined city enterprise shall not
withhold service from, or discontinue or disconnect service
to, a subsequent owner who obtains fee simple title of the
prior property or premises unless such delinquent amount has
been certified in a timely manner to the county treasurer as
provided in subsection 4, paragraph "a", subparagraphs (1) and
(2).
(2) Delinquent amounts that have not been certified in
a timely manner to the county treasurer are not collectible
against any subsequent owner of the property or premises.
e. (1) A legal entity created pursuant to chapter 28E
by a city or cities, or other political subdivisions, and
public or private agencies for the purposes of providing
wastewater, sewer system, storm water drainage, or sewage
treatment services shall have the same powers and duties as a
city utility or enterprise under this subsection with respect
to account holders and subsequent owners, or with respect to
properties and premises, associated with a delinquent account
under this subsection.
(2) The governing body of a city utility, combined city
utility, city enterprise, or combined city enterprise may
enter into an agreement with a legal entity described in
subparagraph (1) to discontinue or disconnect water service
to a property or premises if an account owed the legal entity
for wastewater, sewer system, storm water drainage, or sewage
treatment services provided to that customer's property or
premises becomes delinquent. The customer shall be responsible
for all costs associated with discontinuing or disconnecting
and reestablishing water service disconnected pursuant to this
paragraph "e".
(3) This paragraph "e" shall not apply to a property or
premises if, prior to July 1, 2015, the account holder for
that property or premises had an established account with a
legal entity described in subparagraph (1) for the provision
of wastewater, sewer system, storm water drainage, or sewage
treatment services to the property or premises.
f. (1) A legal entity providing wastewater, sewer system,
storm water drainage, or sewage treatment services to a city or
cities or other political subdivisions pursuant to a franchise
or other agreement shall have the same powers and duties as a
city utility or enterprise under this subsection with respect
to account holders and subsequent owners, or with respect to
properties and premises, associated with a delinquent account
under this subsection.
(2) The governing body of a city utility, combined city
utility, city enterprise, or combined city enterprise may
enter into an agreement with a legal entity described in
subparagraph (1) to discontinue or disconnect water service
to a property or premises if an account owed the legal entity
for wastewater, sewer system, storm water drainage, or sewage
treatment services provided to that customer's property or
premises becomes delinquent. The customer shall be responsible
for all costs associated with discontinuing or disconnecting
and reestablishing water service disconnected pursuant to this
paragraph "f".
(3) This paragraph "f" shall not apply to a property or
premises if, prior to July 1, 2015, the account holder for
that property or premises had an established account with a
legal entity described in subparagraph (1) for the provision
of wastewater, sewer system, storm water drainage, or sewage
treatment services to the property or premises.
Sec. 2. Section 384.84, subsection 4, paragraphs b and e,
Code 2017, are amended to read as follows:
b. The lien under paragraph "a" may be imposed upon a
property or premises even if a city utility or enterprise
service to the property or premises has been or may be
discontinued or disconnected as provided in this section.
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
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 384.84, subsection 8, paragraphs b and c,
Code 2017, are amended to read as follows:
b. Two or more city utilities, combined utility systems,
city enterprises, or combined city enterprises, including city
utilities established pursuant to chapter 388, may contract
pursuant to chapter 28E for joint billing or collection, or
both, of combined service accounts for utility or enterprise
services, or both. The contracts may provide for the
discontinuance or disconnection of one or more of the city
utility or enterprise services if a delinquency occurs in the
payment of any charges billed under a combined service account.
c. One or more city utilities or combined utility systems,
including city utilities established pursuant to chapter 388,
may contract pursuant to chapter 28E with one or more sanitary
districts established pursuant to chapter 358 for joint billing
or collection, or both, of combined service accounts from
utility services and sanitary district services. The contracts
may provide for the discontinuance or disconnection of one or
more of the city water utility services or sanitary district
services if a delinquency occurs in the payment of any charges
billed under a combined service account.
Sec. 4. Section 476.1B, subsection 1, paragraph e, Code
2017, is amended to read as follows:
e. Disconnection of service, as set forth in section 476.20,
subsections 1 through 4.
Sec. 5. Section 476.20, subsection 5, paragraph a,
unnumbered paragraph 1, Code 2017, is amended to read as
follows:
The board shall establish rules which shall be uniform with
respect to all public utilities furnishing gas or electricity
relating to deposits which may be required by the public
utility for the initiation or reinstatement of service. This
subsection shall not apply to municipally owned utilities,
which shall be governed by the provisions of section 384.84
with respect to deposits and payment plans for delinquent
amounts owed. Municipally owned utilities shall not be
subject to the board's rules in regards to deposits and payment
plans for delinquent amounts owed and repayment of past due
debt. Municipally owned utilities shall be subject to the
board's rules in regards to payment plans made prior to the
disconnection of services.

JACK WHITVER

LINDA UPMEYER

W. CHARLES SMITH

TERRY E. BRANSTA

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