This bill prohibits municipal utility authorities from charging fire districts or fire departments for water service 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. As a result, affected municipal utility authorities would experience an indeterminate loss in revenue, while the fire districts or departments would see a corresponding decrease in their expenditures.

The Office of Legislative Services (OLS) notes that this change could lead to financial implications for municipal utility authorities, which are required to be self-financing. If they cannot cover their costs due to the loss of revenue from fire protection system charges, they may need to adjust their rates for other customers to compensate. The OLS was unable to provide specific estimates on the number of authorities affected or the potential financial impact due to a lack of data on current practices.

Statutes affected:
Introduced: 40:14B-21