This bill seeks to amend current law by prohibiting municipal utility authorities from charging fire districts or fire departments for water supply related to fire protection systems if the authority is already charging water customers who are taxpayers of the fire district or local government unit funding the fire department. This change aims to alleviate financial burdens on fire districts and departments by eliminating duplicate charges for water services.

The Office of Legislative Services (OLS) anticipates that the bill will lead to an annual revenue loss for local governments, as municipal utility authorities will no longer be able to impose these charges. While the exact financial impact is indeterminate due to the lack of data on current practices and charges, the OLS notes that affected fire districts and departments will see a reduction in expenditures. However, this could potentially result in municipal utility authorities shifting revenue losses to other ratepayers, as they are required to be self-financing and may need to cover deficits in their budgets.

Statutes affected:
Introduced: 40:14B-21