A bill for an act establishing the percentage of income payment plan program to be administered by the department of health and human services.

This bill establishes a Percentage of Income Payment Plan Program administered by Iowa's Department of Health and Human Services to help low-income individuals pay off unpaid utility bills. The program is available to those who qualify for the low-income home energy assistance program, and participants cannot receive benefits from that program while enrolled. Under the plan, utility companies must stop collecting unpaid balances and stop charging interest on them, while the department creates a payment schedule requiring individuals to pay between 2.4% and 6% of their gross monthly income toward their utility bills. When individuals make their monthly payments, the department covers the remaining balance for that month and applies their payments toward the total arrears, with any remaining debt becoming due upon discharge from the program.