Bill > HB0295

This bill authorizes municipalities to establish service fees for water, sewer, and utility-adjacent services and create a legal mechanism for collecting unpaid fees through political subdivision liens on properties. Specifically, the bill allows municipalities to set fee schedules for services, either directly or through contracted third parties, and provides a detailed process for billing customers and pursuing payment of past due fees. If a customer fails to pay a service fee, the municipality can place a lien on the property after providing multiple notices, waiting prescribed time periods, and following specific certification and recording procedures with the county treasurer and recorder. The bill also establishes guidelines for charging interest on past due fees, which will be calculated similarly to property tax liens, and allows municipalities to assess a one-time penalty not exceeding 8% of the past due amount. Additionally, the bill requires municipalities to provide clear billing notices to customers, detailing the fees due and payment deadlines, and mandates that the municipality file a lien release upon full payment. The legislation is set to take effect on May 7, 2025, and aims to provide municipalities with a structured approach to managing and collecting fees for essential utility services.

Budget and Finance, Government Affairs

https://le.utah.gov/~2025/bills/static/HB0295.html