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 determine the interest rate on unpaid service charges, replacing the previous fixed rate of 1.5% per month. The bill also clarifies existing legal definitions related to municipalities and utility systems, and it specifies that interest on unpaid service charges will accrue at the prevailing municipal bond yield if payment is not made within 30 days. Additionally, during declared public health emergencies, municipalities have the discretion to waive interest on delinquent payments and refrain from placing liens or discontinuing service.

Furthermore, the bill establishes that property owners are responsible for costs associated with water usage, including installation and maintenance of water meters, which will become a lien on the property until paid. It mandates that local units must record certificates detailing any unsatisfied liens, which will take priority over other liens, except for federal, state, and local taxes. The legislation aims to enhance financial accountability for property owners while providing flexibility for municipalities in managing unpaid charges, particularly during emergencies. Overall, the bill seeks to create a more responsive framework for assessing interest on unpaid utility bills and municipal charges.

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