Bill Text: IA SSB1053 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act relating to late fees and prohibited provisions in rental agreements.
Spectrum: Committee Bill
Status: (N/A - Dead) 2019-02-21 - Subcommittee recommends passage. [SSB1053 Detail]
Download: Iowa-2019-SSB1053-Introduced.html
Senate
Study
Bill
1053
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
JUDICIARY
BILL
BY
CHAIRPERSON
ZAUN)
A
BILL
FOR
An
Act
relating
to
late
fees
and
prohibited
provisions
in
1
rental
agreements.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
Section
562A.9,
subsection
4,
Code
2019,
is
1
amended
to
read
as
follows:
2
4.
For
rental
agreements
in
which
the
rent
does
not
exceed
3
seven
hundred
dollars
per
month,
a
rental
agreement
shall
not
4
provide
for
a
late
fee
that
exceeds
twelve
dollars
per
day
or
a
5
total
amount
of
sixty
dollars
per
month.
For
rental
agreements
6
in
which
the
rent
is
greater
than
seven
hundred
dollars
per
7
month
but
less
than
one
thousand
four
hundred
dollars
per
8
month
,
a
rental
agreement
shall
not
provide
for
a
late
fee
that
9
exceeds
twenty
dollars
per
day
or
a
total
amount
of
one
hundred
10
dollars
per
month.
For
rental
agreements
in
which
the
rent
is
11
at
least
one
thousand
four
hundred
dollars
per
month,
a
rental
12
agreement
shall
not
provide
for
a
late
fee
that
exceeds
thirty
13
dollars
per
day
or
a
total
amount
of
one
hundred
fifty
dollars
14
per
month.
15
Sec.
2.
Section
562A.11,
subsection
2,
Code
2019,
is
amended
16
by
striking
the
subsection
and
inserting
in
lieu
thereof
the
17
following:
18
2.
A
provision
in
a
rental
agreement
prohibited
by
19
subsection
1
is
unenforceable.
If
the
landlord
seeks
to
20
enforce
the
provision
or
accepts
the
tenant’s
voluntary
21
compliance
with
the
provision,
the
court
may
award
the
tenant
22
an
amount
not
to
exceed
three
months’
periodic
rent
and
23
reasonable
attorney
fees.
24
Sec.
3.
Section
562B.10,
subsection
4,
Code
2019,
is
amended
25
to
read
as
follows:
26
4.
For
rental
agreements
in
which
the
rent
does
not
exceed
27
seven
hundred
dollars
per
month,
a
rental
agreement
shall
not
28
provide
for
a
late
fee
that
exceeds
twelve
dollars
per
day
or
a
29
total
amount
of
sixty
dollars
per
month.
For
rental
agreements
30
in
which
the
rent
is
greater
than
seven
hundred
dollars
per
31
month
but
less
than
one
thousand
four
hundred
dollars
per
32
month
,
a
rental
agreement
shall
not
provide
for
a
late
fee
that
33
exceeds
twenty
dollars
per
day
or
a
total
amount
of
one
hundred
34
dollars
per
month.
For
rental
agreements
in
which
the
rent
is
35
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2
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_____
at
least
one
thousand
four
hundred
dollars
per
month,
a
rental
1
agreement
shall
not
provide
for
a
late
fee
that
exceeds
thirty
2
dollars
per
day
or
a
total
amount
of
one
hundred
fifty
dollars
3
per
month.
4
Sec.
4.
Section
562B.11,
subsection
2,
Code
2019,
is
amended
5
by
striking
the
subsection
and
inserting
in
lieu
thereof
the
6
following:
7
2.
A
provision
in
a
rental
agreement
prohibited
by
8
subsection
1
is
unenforceable.
If
the
landlord
seeks
to
9
enforce
the
provision
or
accepts
the
tenant’s
voluntary
10
compliance
with
the
provision,
the
court
may
award
the
tenant
11
an
amount
not
to
exceed
three
months’
periodic
rent
and
12
reasonable
attorney
fees.
13
EXPLANATION
14
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
15
the
explanation’s
substance
by
the
members
of
the
general
assembly.
16
Current
law
caps
late
fees
on
rental
agreements
in
which
17
rent
is
greater
than
$700
per
month
at
$20
per
day
and
$100
18
per
month.
Current
law
also
allows
an
aggrieved
party
to
19
recover
actual
damages
in
certain
situations
when
a
prohibited
20
provision
is
willingly
or
knowingly
used
in
a
rental
agreement.
21
This
bill
allows
a
rental
agreement
to
provide
for
late
22
fees
not
to
exceed
$20
per
day
and
$100
per
month
for
rental
23
agreements
in
which
rent
is
greater
than
$700
per
month
but
24
not
more
than
$1,400
per
month.
When
rent
exceeds
$1,400
per
25
month,
a
rental
agreement
may
provide
for
late
fees
of
no
26
more
than
$30
per
day
and
$150
per
month.
Furthermore,
if
27
a
landlord
seeks
to
enforce
or
accepts
a
tenant’s
voluntary
28
compliance
with
a
prohibited
provision,
the
court
may
award
the
29
tenant
an
amount
not
to
exceed
three
months’
periodic
rent
and
30
reasonable
attorney
fees.
31
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