The bill revises the interest rates and accrual processes for unpaid water and sewer utility bills, as well as delinquent municipal taxes and assessments. It introduces a new definition for "prevailing municipal bond yield," which will replace the previous fixed interest rate of 1.5% per month, allowing interest on unpaid service charges to be determined based on current market conditions. The bill also clarifies existing legal definitions related to municipal utilities and outlines procedures for the collection of unpaid charges, including the establishment of liens on real property and the authority for sewerage authorities to discontinue service for non-payment. Importantly, during declared public health emergencies, the bill allows for the waiver of interest on delinquent payments and the suspension of lien placements.

Additionally, the bill mandates that municipalities must notify tax collection officials about outstanding water charges and establishes that unpaid charges will become a lien on the property until settled. It specifies that interest on unpaid utility bills will not accrue until 30 days after the due date, providing consumers with a grace period. The amendments aim to enhance the operational efficiency of municipal utilities, ensure timely collection of service charges, and address public health concerns related to lead service lines and other infrastructure issues. Overall, the bill seeks to create a more standardized and responsive approach to interest rates on municipal charges, reflecting current economic conditions.

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