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Senate
File
2354
-
Introduced
SENATE
FILE
2354
BY
WESTRICH
A
BILL
FOR
An
Act
relating
to
assistance
animals
in
residential
rental
1
housing,
including
damage
reimbursement,
refundable
income
2
tax
credits,
and
a
landlord
insurance
risk
pool,
and
3
providing
penalties
and
effective
date
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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Section
1.
NEW
SECTION
.
562A.9A
Assistance
animals
——
1
damage
reimbursement
——
deposits
——
misrepresentation.
2
1.
For
purposes
of
this
section,
unless
the
context
3
otherwise
requires:
4
a.
“Assistance
animal”
means
the
same
as
defined
in
section
5
216.8B.
6
b.
“Emotional
support
animal”
means
an
animal
that
is
7
covered
by
the
exclusion
specified
in
24
C.F.R.
§5.303
and
that
8
is
not
a
service
animal.
9
c.
“Service
animal”
means
the
same
as
defined
in
section
10
216.8B.
11
d.
“Therapy
animal”
means
an
animal
that
provides
12
therapeutic
benefit
but
is
not
individually
trained
to
perform
13
tasks
for
a
person
with
a
disability
and
is
not
a
service
14
animal.
15
2.
If
a
landlord
suffers
unreimbursed
damage
to
a
dwelling
16
unit
due
to
a
tenant’s
assistance
animal,
emotional
support
17
animal,
service
animal,
or
therapy
animal,
the
landlord
may
18
seek
compensation
pursuant
to
any
of
the
following:
19
a.
A
landlord
may
notify
the
department
of
revenue
of
the
20
amount
of
unreimbursed
damage
caused
to
the
landlord’s
dwelling
21
unit
by
a
tenant’s
assistance
animal,
emotional
support
animal,
22
service
animal,
or
therapy
animal.
Upon
the
landlord
providing
23
verification
of
the
amount
of
damage
to
the
satisfaction
of
the
24
department
of
revenue,
the
department
of
revenue
shall
provide
25
notice
to
the
tenant
of
the
claim
and
provide
the
tenant
26
opportunity
to
dispute
the
amount.
If,
after
providing
notice
27
to
the
tenant
and
receiving
any
evidence
from
the
tenant,
the
28
department
of
revenue
determines
that
the
landlord’s
claim
is
29
substantiated,
the
department
of
revenue
shall
use
the
setoff
30
program
pursuant
to
section
421.65
to
pay
over
to
the
landlord
31
the
amount
owed.
A
landlord
shall
not
request
a
setoff
for
the
32
same
damages
if
the
landlord
is
reimbursed
pursuant
to
the
tax
33
credit
established
pursuant
to
paragraph
“b”
or
a
claim
under
34
the
insurance
pool
pursuant
to
paragraph
“c”
.
The
department
of
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revenue
shall
adopt
rules
to
administer
this
paragraph.
1
b.
A
landlord
may
claim
a
tax
credit
under
section
422.12R
2
for
unreimbursed
damage
caused
by
an
assistance
animal,
3
emotional
support
animal,
service
animal,
or
therapy
animal
4
to
the
extent
that
the
landlord
has
not
made
a
claim
for
5
reimbursement
for
the
same
damage
pursuant
to
paragraph
“a”
or
6
“c”
.
7
c.
(1)
The
director
of
the
department
of
administrative
8
services
may
establish
plans
for
and
procure
group
insurance
to
9
establish
a
state
risk
pool
for
landlords
to
be
reimbursed
for
10
damage
caused
by
tenants’
assistance
animals,
emotional
support
11
animals,
service
animals,
and
therapy
animals.
12
(2)
The
funds
for
such
plans
shall
be
created
solely
from
13
the
contributions
of
participating
landlords.
All
landlords
14
participating
in
the
plan
shall
be
assessed
and
required
to
15
pay
an
amount
to
be
fixed
by
the
director
of
the
department
16
of
administrative
services.
Participation
in
the
plan
is
17
optional.
18
(3)
Election
to
participate
shall
be
in
writing
on
forms
19
provided
by
the
department
of
administrative
services.
20
(4)
The
director
of
the
department
of
administrative
21
services
may
contract
with
any
insurance
company
having
a
22
certificate
of
authority
to
transact
an
insurance
business
in
23
this
state
with
respect
to
a
group
insurance
plan.
24
(5)
The
department
of
administrative
services
shall
adopt
25
rules
to
administer
this
paragraph.
26
3.
a.
Unless
prohibited
by
state
or
federal
law,
a
landlord
27
may
require
a
reasonable,
refundable
damage
deposit
for
an
28
emotional
support
animal
or
a
therapy
animal.
29
b.
A
deposit
collected
under
this
subsection
shall
only
be
30
used
for
damage
beyond
ordinary
wear
and
tear.
31
c.
A
landlord
shall
not
require
a
damage
deposit
for
a
32
service
animal.
33
4.
Unless
required
by
federal
law,
a
landlord
is
not
34
required
to
allow
a
tenant
to
keep
in
the
dwelling
unit
an
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emotional
support
animal
or
therapy
animal
as
accommodation
1
that
is
not
a
dog.
2
5.
a.
A
person
who
intentionally
misrepresents
an
animal
3
as
an
assistance
animal,
therapy
animal,
or
emotional
support
4
animal
is
guilty
of
a
simple
misdemeanor.
5
b.
A
person
commits
the
offense
of
intentional
6
misrepresentation
of
an
animal
as
an
assistance
animal,
therapy
7
animal,
or
emotional
support
animal
if,
for
the
purpose
of
8
obtaining
any
of
the
rights
or
privileges
set
forth
in
state
or
9
federal
law,
the
person
intentionally
misrepresents
an
animal
10
in
one’s
possession
as
one’s
assistance
animal,
therapy
animal,
11
or
emotional
support
animal.
12
Sec.
2.
NEW
SECTION
.
422.12R
Landlord
reimbursement
tax
13
credit.
14
1.
For
purposes
of
this
section:
15
a.
“Assistance
animal”
means
the
same
as
defined
in
section
16
216.8B.
17
b.
“Dwelling
unit”
means
the
same
as
defined
in
section
18
562A.6.
19
c.
“Emotional
support
animal”
means
the
same
as
defined
in
20
section
562A.9A.
21
d.
“Landlord”
means
the
same
as
defined
in
section
562A.6.
22
e.
“Service
animal”
means
the
same
as
defined
in
section
23
562A.9A.
24
f.
“Tenant”
means
the
same
as
defined
in
section
562A.6.
25
g.
“Therapy
animal”
means
the
same
as
defined
in
section
26
562A.9A.
27
2.
The
taxes
imposed
under
this
subchapter,
less
the
credits
28
allowed
under
section
422.12,
shall
be
reduced
by
a
landlord
29
reimbursement
tax
credit.
30
3.
The
amount
of
the
credit
shall
be
equal
to
the
amount
of
31
verifiable
damage,
above
normal
wear
and
tear,
to
a
dwelling
32
unit
that
was
caused
by
an
assistance
animal,
emotional
support
33
animal,
service
animal,
or
therapy
animal
owned
by
a
tenant,
34
to
the
extent
that
the
damage
is
not
compensated
by
a
damage
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deposit
or
setoff
or
reimbursement
from
the
risk
pool
pursuant
1
to
section
562A.9A.
2
4.
A
landlord
may
claim
the
credit
under
this
section
by
3
providing
the
department
with
evidence
of
the
damage
caused
by
4
the
animal
to
the
satisfaction
of
the
department.
5
5.
An
individual
may
claim
the
tax
credit
allowed
a
6
partnership,
S
corporation,
limited
liability
company,
estate,
7
or
trust
electing
to
have
the
income
taxed
directly
to
the
8
individual.
The
amount
claimed
by
the
individual
shall
be
9
based
upon
the
pro
rata
share
of
the
individual’s
earnings
of
a
10
partnership,
S
corporation,
limited
liability
company,
estate,
11
or
trust.
12
6.
Any
credit
in
excess
of
the
tax
liability
is
refundable.
13
In
lieu
of
claiming
a
refund,
the
taxpayer
may
elect
to
have
14
the
overpayment
shown
on
the
taxpayer’s
final,
completed
return
15
credited
to
the
tax
liability
for
the
following
tax
year.
16
7.
The
director
shall
adopt
rules
to
implement
this
section.
17
Sec.
3.
EFFECTIVE
DATE.
This
Act
takes
effect
July
1,
2027.
18
EXPLANATION
19
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
20
the
explanation’s
substance
by
the
members
of
the
general
assembly.
21
This
bill
relates
to
landlord
reimbursement
for
damage
22
to
dwelling
units
caused
by
a
tenant’s
assistance
animal,
23
emotional
support
animal,
service
animal,
or
therapy
animal,
24
including
a
refundable
income
tax
credit
and
a
landlord
25
insurance
risk
pool.
26
The
bill
provides
that
if
a
landlord
suffers
unreimbursed
27
damage
to
a
dwelling
unit
due
to
a
tenant’s
assistance
28
animal,
emotional
support
animal,
service
animal,
or
therapy
29
animal,
the
landlord
may
seek
compensation
through
one
of
30
three
methods.
First,
the
landlord
may
notify
the
department
31
of
revenue
of
the
amount
of
unreimbursed
damage.
Upon
32
satisfactory
verification,
the
department
of
revenue
must
33
notify
the
tenant
and
provide
an
opportunity
to
dispute
the
34
claim.
If
the
claim
is
substantiated,
the
department
must
use
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the
income
tax
refund
setoff
program
under
Code
section
421.65
1
(setoff
procedures)
to
pay
the
landlord
the
amount
owed.
A
2
landlord
may
not
seek
a
setoff
for
damages
that
are
reimbursed
3
through
the
tax
credit
or
insurance
risk
pool
established
in
4
the
bill.
The
department
of
revenue
is
required
to
adopt
rules
5
to
administer
these
procedures.
6
Second,
the
landlord
may
claim
a
refundable
income
tax
7
credit
for
unreimbursed
damage
under
the
bill,
to
the
extent
8
the
landlord
has
not
received
reimbursement
for
the
same
damage
9
through
the
setoff
process
or
the
insurance
risk
pool.
The
10
credit
equals
the
amount
of
verifiable
damage
above
normal
wear
11
and
tear
to
a
dwelling
unit
caused
by
a
tenant’s
assistance
12
animal,
emotional
support
animal,
service
animal,
or
therapy
13
animal,
to
the
extent
the
damage
is
not
compensated
by
a
14
damage
deposit,
setoff,
or
reimbursement
from
the
risk
pool.
15
Taxpayers
claiming
the
credit
must
provide
evidence
of
the
16
damage
to
the
satisfaction
of
the
department
of
revenue.
The
17
credit
may
be
claimed
by
individuals
and
by
pass-through
entity
18
owners
based
on
the
individual’s
pro
rata
share
of
earnings.
19
Any
excess
credit
may
be
refunded
or
applied
to
the
following
20
tax
year.
The
director
of
revenue
is
required
to
adopt
rules
21
to
implement
the
tax
credit.
22
Third,
the
bill
authorizes
the
director
of
the
department
23
of
administrative
services
to
establish
and
procure
group
24
insurance
plans
to
create
a
voluntary
state
risk
pool
to
25
reimburse
landlords
for
damage
caused
by
such
animals.
The
26
risk
pool
is
funded
solely
by
contributions
from
participating
27
landlords,
who
must
elect
to
participate
in
writing
and
pay
28
assessments
determined
by
the
director.
The
director
may
29
contract
with
authorized
insurers
and
must
adopt
rules
to
30
administer
the
program.
31
The
bill
provides
that,
unless
prohibited
by
state
or
32
federal
law,
a
landlord
may
require
a
reasonable,
refundable
33
damage
deposit
for
an
emotional
support
animal
or
therapy
34
animal.
The
deposit
may
be
used
only
for
damage
beyond
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ordinary
wear
and
tear.
A
landlord
may
not
require
a
damage
1
deposit
for
a
service
animal.
2
The
bill
provides
that,
unless
required
by
federal
law,
a
3
landlord
is
not
required
to
allow
a
tenant
to
keep
an
emotional
4
support
animal
or
therapy
animal
that
is
not
a
dog
as
a
housing
5
accommodation.
6
Current
law
provides
that
a
person
who
intentionally
7
misrepresents
an
animal
as
a
service
animal
or
a
8
service-animal-in-training
for
the
purpose
of
obtaining
9
rights
or
privileges
under
state
or
federal
law
is
guilty
10
of
a
simple
misdemeanor.
The
bill
creates
a
new
criminal
11
offense,
punishable
as
a
simple
misdemeanor,
when
a
person
12
intentionally
misrepresents
an
animal
as
an
assistance
animal,
13
therapy
animal,
or
emotional
support
animal
for
the
purpose
of
14
obtaining
rights
or
privileges
under
state
or
federal
law.
15
The
bill
takes
effect
July
1,
2027.
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