Relating to utility service cost disclosures in connection with certain rental properties, providing penalties, and including effective date provisions

“Utility service” is defined as electric, gas, water, and sewer service. The bill requires a landlord of rental property to disclose to a prospective tenant a utility service cost disclosure statement in writing in accordance with the bill. At least one adult prospective tenant entering into the tenancy shall sign an acknowledgment form stating that the tenant received the disclosure statement upon completing the rental application or signing the lease, whichever occurs first, which shall be a defense to any claim that the landlord violated the disclosure provisions. The bill provides that the disclosure statement shall indicate the average annual costs for utility service for dwelling units in the rental property with the same number of bedrooms. If a landlord charges tenants using a ratio utility billing system, as described in the bill, the cost information shall include the average charges for utility service in the previous year, including any fees, for dwelling units in the property with the same number of bedrooms. If a landlord has more than one rental property of similar construction, as defined in the bill, and with the same utility service payment structure for the same applicable public utility, the disclosure statement may indicate the average annual costs for dwelling units in all such rental properties with the same number of bedrooms. The bill provides that cost information shall be computed by April each year, which shall be valid and included in any disclosure statement provided until the last day of March of the following year. If the rental property was acquired by the landlord within the previous year, disclosure statements shall be provided by the landlord beginning days after the date of closing. The bill provides that the landlord shall obtain the cost information included in a disclosure statement from the applicable public utility by sending a written request to the utility between January and February of each year, with information described in the bill. The utility shall compute and provide such information to the landlord at no charge within days of receiving such request, unless otherwise agreed to by the parties in writing. The utility may use any methodology to compute the cost information, provided that average costs are based on dwelling units with the same number of bedrooms and the methodology used is disclosed to the landlord in writing. The bill provides that if the landlord fails to obtain cost information from the applicable public utility within days or as otherwise agreed to in writing, or if the rental property is new construction or was renovated in the previous year where the total cost of the renovation was greater than percent of the assessed property value, the landlord shall include in the disclosure statement an estimate of anticipated annual utility service costs as described in the bill. The bill provides that a landlord shall retain all records relating to cost information for a period of not less than one year. A tenant may inspect and copy such records on reasonable notice and during regular business hours. The bill provides that a landlord of rental property who enters into a rental agreement with a tenant without providing a utility service cost disclosure statement in violation of the bill shall pay the tenant liquidated damages in the sum of $500. If the landlord fails to pay the tenant such amount within days of receiving a written request from the tenant to do so, the tenant may bring a civil action in small claims court. If a final judgment is entered against the landlord, the tenant shall recover $500 in damages, as well as court costs and reasonable attorney fees. The landlord shall also be subject to a civil penalty of $500, to be remitted to the division of community action agencies of the department of human rights, and used only for specified purposes.56, relating to the provision of energy costs by gas or electric utilities, by requiring gas and electric utilities, as well as public utilities furnishing water or sewer service, to comply with the utility service cost disclosure provisions of the bill.56 applicable to gas public utilities with less than 2,000 customers. Current law provides that a public utility which, after written notice from the Iowa utilities board of a specified violation of a provision in Code chapter 476, violates the same provision is subject to a civil penalty of at least $100 but not more than $2,500 per violation. If the violation is willful, the civil penalty increases to at least $1,000 but not more than $10,000 per violation. The bill takes effect January 1, 2020.