This bill establishes new requirements for municipal water utilities and water public utilities regarding the placement of liens for unpaid water charges when a water meter has failed to register. Specifically, it mandates that within 30 days of the meter failure, the utility must provide written notice to the owner of the residence, any designated representative of the owner, and each affected residential customer. This notice must clearly identify the status of the faulty water meter and can be delivered through individual service or certified mail.

Furthermore, the bill prohibits utilities from placing, selling, or enforcing a lien on real property for unpaid water charges during the period when the water meter was not functioning, unless the notice requirements are fulfilled. If a utility fails to comply with these provisions, it will incur a civil penalty of no less than $2,500 for each violation, which will be enforced by the New Jersey Board of Public Utilities. The act is set to take effect immediately upon passage.