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 for unpaid service charges. The interest will now accrue at a rate equal to the prevailing municipal bond yield, compounded annually, starting 30 days after the payment due date. Additionally, the bill clarifies existing legal definitions related to municipal authorities and expands the scope of what constitutes a "water system" to include on-site wastewater systems and hydroelectric systems.

Furthermore, the bill outlines procedures for the collection of unpaid service charges, including the establishment of liens on real property and the authority for sewerage authorities to discontinue service for non-payment. It allows for the waiver of interest on delinquent payments during declared public health emergencies and specifies that municipalities must record certificates detailing any unsatisfied liens. The legislation aims to streamline the financial responsibilities of property owners and local governments, ensuring a more standardized approach to interest rates on unpaid utility bills and municipal charges, while providing flexibility during emergencies.

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