The bill modifies the interest rates and accrual of interest on unpaid water and sewer utility bills, as well as delinquent municipal taxes, assessments, and other municipal liens and charges. It introduces a new definition for "prevailing municipal bond yield," which will replace the previous fixed interest rate of 1.5% per month with a variable rate based on municipal bond yields. The bill also clarifies existing legal definitions related to municipalities and utility systems, including the inclusion of "on-site wastewater systems" and "hydroelectric systems." Additionally, it outlines procedures for handling unpaid service charges, including the accrual of interest after 30 days of non-payment and the authority of sewerage authorities to cut off service for non-payment, while allowing discretion during public health emergencies.

Furthermore, the bill establishes that interest on unpaid charges will be assessed based on the prevailing municipal bond yield, compounded annually, and specifies that interest will not accrue until at least 30 days after the payment due date. It also mandates that municipalities record a certificate for unpaid amounts, creating a lien with priority over other liens, and allows for the establishment of uniform rates for water supply services. The legislation aims to enhance the financial management of municipal utilities while providing municipalities with greater flexibility in managing water-related financial obligations and ensuring clarity in definitions and processes related to service charges.

Statutes affected:
Introduced: 40:14A-3, 40:14A-21, 40:14B-3, 40:14B-41, 40:62-83.1, 58:1B-3