Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 295 (2025GS)

Sponsor

Rep. Cutler, Paul A.

Final action

House/ filed 3/7/2025

Outcome

Failed / filed without passage

Summary

What it does

• This bill:
• defines terms and modifies definitions;
• authorizes a municipality that sets a fee schedule by ordinance or resolution for water, sewer, or utility-related services provided by the municipality, or a third-party contracted by the municipality, to bill a customer receiving the water, sewer, or utility-related services, directly or through a third-party contracted by the municipality;
• authorizes a municipality to hold a political subdivision lien on a property for past due water, sewer, or utility-related service fees;
• authorizes a municipality or special district to:
• charge interest on a past due fee; and
• charge and collect a one-time penalty on a past due fee; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

30
10-6-106
10-6-161
10-6-162
10-8-22
17B-1-902.1
Municipal Services Fees and Political Subdivision Lien Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Paul A. Cutler
Senate Sponsor: Wayne A. Harper
LONG TITLE
General Description:
This bill authorizes municipalities to place a political subdivision lien on property for past 
due service fees.
Highlighted Provisions:
This bill:
defines terms and modifies definitions;
authorizes a municipality to set a fee schedule by ordinance or resolution for certain 
services provided by the municipality or a third-party contracted by the municipality;
authorizes a municipality to bill a customer, directly or through a third-party billing 
service, for services provided by the municipality or a third-party contracted by the 
municipality;
authorizes a municipality to hold a political subdivision lien on a property for past due 
service fees;
modifies the process for a special district to charge interest and costs on a past due fee; 
and
makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
10-6-106
, as last amended by Laws of Utah 2019, Chapter 136
10-8-22
, as last amended by Laws of Utah 2019, Chapter 99
17B-1-902.1
, as last amended by Laws of Utah 2023, Chapter 15
ENACTS:
10-6-161
, Utah Code Annotated 1953
10-6-162
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1, Section 
10-6-106
 is amended to read:
10-6-106. Definitions.
As used in this chapter:
(1)
"Account group" is defined by generally accepted accounting principles as reflected in 
the Uniform Accounting Manual for Utah Cities.
(2)
"Appropriation" means an allocation of money by the governing body for a specific 
purpose.
(3)
(a)
"Budget" means a plan of financial operations for a fiscal period which embodies 
estimates of proposed expenditures for given purposes and the proposed means of 
financing them.
(b)
"Budget" may refer to the budget of a particular fund for which a budget is required 
by law or it may refer collectively to the budgets for all such funds.
(4)
"Budget officer" means
:
(a)
the city auditor in a city of the first and second class
,
;
(b)
the mayor or some person appointed by the mayor with the approval of the city 
council in a city of the third, fourth, or fifth class
,
;
(c)
the mayor in the council-mayor optional form of government
,
;
 or 
(d)
the person designated by the charter in a charter city.
(5)
"Budget period" means the fiscal period for which a budget is prepared.
(6)
"Budgetary fund" means a fund for which a budget is required.
(7)
"Check" means an order in a specific amount drawn upon a depository by an authorized 
officer of a city.
(8)
"City general fund" means the general fund used by a city.
(9)
"Current period" means the fiscal period in which a budget is prepared and adopted, i.e., 
the fiscal period next preceding the budget period.
(10)
"Department" means any functional unit within a fund that carries on a specific 
activity, such as a fire or police department within a city general fund.
(11)
(a)
"Encumbrance system" means a method of budgetary control in which part of an 
appropriation is reserved to cover a specific expenditure by charging obligations, 
such as purchase orders, contracts, or salary commitments to an appropriation 
account at their time of origin.
 Such obligations cease
(b)
An obligation described in Subsection 
(11)(a)
 ceases 
to be 
encumbrances
an 
encumbrance
 when paid or when the actual liability is entered on the city's books of 
account.
(12)
"Enterprise fund" means a fund as defined by the Governmental Accounting Standards 
Board that is used by a municipality to report an activity for which a fee is charged to 
users for goods or services.
(13)
"Estimated revenue" means the amount of revenue estimated to be received from all 
sources during the budget period in each fund for which a budget is being prepared.
(14)
"Financial officer" means the mayor in the council-mayor optional form of government 
or the city official as authorized by Section 
10-6-158
.
(15)
"Fiscal period" means the annual or biennial period for accounting for fiscal operations 
in each city.
(16)
"Fund" is as defined by generally accepted accounting principles as reflected in the 
Uniform Accounting Manual for Utah Cities.
(17)
"Fund balance," "retained earnings," and "deficit" have the meanings commonly 
accorded such terms under generally accepted accounting principles as reflected in the 
Uniform Accounting Manual for Utah Cities.
(18)
"General fund" is as defined by the Governmental Accounting Standards Board as 
reflected in the Uniform Accounting Manual for All Local Governments prepared by the 
Office of the Utah State Auditor.
(19)
"Governing body" means a city council, or city commission, as the case may be, but 
the authority to make any appointment to any position created by this chapter is vested 
in the mayor in the council-mayor optional form of government.
(20)
"Interfund loan" means a loan of cash from one fund to another, subject to future 
repayment.
(21)
"Last completed fiscal period" means the fiscal period next preceding the current 
period.
(22)
(a)
"Public funds" means any money or payment collected or received by an officer 
or employee of the city acting in an official capacity and includes money or payment 
to the officer or employee for services or goods provided by the city, or the officer or 
employee while acting within the scope of employment or duty.
(b)
"Public funds" does not include money or payments collected or received by an 
officer or employee of a city for charitable purposes if the mayor or city council has 
consented to the officer's or employee's participation in soliciting contributions for a 
charity.
(23)
"Special fund" means any fund other than the city general fund.
(24)
"Utility" means a utility owned by a city, in whole or in part, that provides 
services 
such as 
electricity, gas, water, or sewer, or any combination of 
them
electricity, gas, 
water, or sewer
.
(25)
"Warrant" means an order drawn upon the city treasurer, in the absence of sufficient 
money in the city's depository, by an authorized officer of a city for the purpose of 
paying a specified amount out of the city treasury to the person named or to the bearer as 
money becomes available.
Section 2, Section 
10-6-161
 is enacted to read:
10-6-161. Establishment of service fees -- Political subdivision lien for past due 
service fees.
(1)
As used in this section, "service" means a utility, commodity, facility, or other resource 
provided by a municipality, either directly or through a contracted third-party, to a 
customer in the municipality.
(2)
(a)
A governing body of a municipality may:
(i)
establish by ordinance or resolution a fee schedule for services; and
(ii)
charge a fee to a customer according to the fee schedule.
(b)
If a municipality contracts with a third-party to provide a service, the municipality 
may agree to:
(i)
pay the third-party directly for the contracted service; and
(ii)
collect the fees for the service from a customer either directly or through a 
third-party billing service.
(3)
(a)
A municipality, directly or through a contracted third-party, shall provide billing 
notices to a customer detailing:
(i)
the fees due for a service provided by the municipality or a third-party contracted 
by the municipality; and
(ii)
the due date for payment of the fees described in Subsection 
(2)(a)(i)
.
(b)
A municipality or third-party billing service may combine a service billing notice 
with a billing notice for a utility provided directly by the municipality or through a 
contracted third-party.
(4)
A municipality may hold a political subdivision lien, as that term is defined in Section 
11-60-102
, on a customer's property for a past due fee by:
(a)
notifying the customer of the past due fee;
(b)
if the past due fee remains unpaid, no earlier than 30 days after the day on which the 
customer is notified of the past due fee, notifying the customer that the municipality 
intends to file a political subdivision lien on the customer's property to which the 
utility, commodity, facility, or other resource was provided; and
(c)
if the past due fee remains unpaid, no earlier than 10 days after the day on which the 
customer is notified that the municipality intends to file a political subdivision lien on 
the customer's property:
(i)
certifying to the county treasurer of the county in which the customer's property is 
located the amount of past due fees, including, subject to Section 
10-6-162
, 
applicable interest and administrative costs; and
(ii)
recording the lien with the county recorder of the county in which the customer's 
property is located.
(5)
Upon certification and recording under Subsection 
(4)(c)
, the past due fees, and interest 
and administrative costs if applicable, become a political subdivision lien on the 
customer's property, in accordance with Title 11, Chapter 60, Political Subdivision Lien 
Authority.
(6)
Upon payment of the full amount owed under a political subdivision lien authorized by 
this section, the municipality shall file a release of the lien with the county recorder's 
office.
Section 3, Section 
10-6-162
 is enacted to read:
10-6-162. Interest -- Collection of administrative costs.
(1)
(a)
A municipality may charge interest on a past due fee.
(b)
If a municipality charges interest as described in Subsection (1)(a), the municipality 
shall calculate the interest rate in the same manner as a property tax lien, described in 
Section 
59-2-1302
.
(2)
(a)
In pursuing payment on a past due fee or charge, a municipality may also charge 
and collect only one of the following:
(i)
a one-time penalty, not to exceed 8% for a past-due fee; or
(ii)
an administrative cost for some or all of the following:
(A)
the collection cost of a past due fee; and
(B)
reasonable attorney fees actually incurred for collection and foreclosure costs, 
if applicable.
(b)
A municipality may not charge interest on a one-time penalty or an administrative 
cost.
Section 4, Section 
10-8-22
 is amended to read:
10-8-22. Water rates.
(1)
As used in this section:
(a)
"Designated water service area" means the area defined by a municipality in 
accordance with the 
Utah Constitution, Article XI, Section 6
, Subsection 
(1)(c)
.
(b)
"Large municipal drinking water system" means a municipally owned and operated 
drinking water system serving a population of 10,000 or more.
(c)
"Retail customer" means an end user:
(i)
who receives culinary water directly from a municipality's waterworks system; and
(ii)
whom the municipality described in Subsection 
(1)(c)(i)
 bills for water service.
(2)
A municipality shall fix the rates to be paid for the use of water furnished by the 
municipality.
(3)
The setting of municipal water rates is a legislative act.
(4)
Within the municipality's designated water service area, a municipality shall:
(a)
establish, by ordinance
 or resolution
, reasonable rates for the services provided to the 
municipality's retail customers;
(b)
use the same method of providing notice to all retail customers of proposed rate 
changes; and
(c)
allow all retail customers the same opportunity to appear and participate in a public 
meeting addressing water rates.
(5)
(a)
A municipality may establish different rates for different classifications of retail 
customers within the municipality's designated water service area, if the rates and 
classifications have a reasonable basis.
(b)
A reasonable basis for charging different rates for different classifications may 
include, among other things, a situation in which:
(i)
there is a difference in the cost of providing service to a particular classification;
(ii)
one classification bears more risk in relation to a system operation or obligation;
(iii)
retail customers in one classification invested or contributed to acquire a water 
source or supply or build or maintain a system differently than retail customers in 
another classification;
(iv)
the needs or conditions of one classification:
(A)
are distinguishable from the needs or conditions of another classification; and
(B)
based on economic, public policy, or other identifiable elements, support a 
different rate; or
(v)
there is a differential between the classifications based on a cost of service 
standard or a generally accepted rate setting method, including a standard or 
method the American Water Works Association establishes.
(c)
An adjustment based solely on the fact that a particular classification of retail 
customers is located either inside or outside of the municipality's corporate boundary 
is not a reasonable basis.
(6)
(a)
If more than 10% of the retail customers within a large municipal drinking water 
system's designated water service area are located outside of the municipality's 
corporate boundary, the municipality shall:
(i)
post on the municipality's website the rates assessed to retail customers within the 
designated water service area; and
(ii)
establish an advisory board to make recommendations to the municipal legislative 
body regarding water rates, capital projects, and other water service standards.
(b)
In establishing an advisory board described in Subsection 
(6)(a)(ii)
, a municipality 
shall:
(i)
if more than 10% but no more than 30% of the municipality's retail customers 
receive service outside the municipality's municipal boundary, ensure that at least 
20% of the advisory board's members represent the municipality's retail customers 
receiving service outside the municipality's municipal boundary;
(ii)
if more than 30% of the municipality's retail customers receive service outside of 
the municipality's municipal boundary, ensure that at least 40% of the advisory 
board's members represent the municipality's retail customers receiving service 
outside of the municipality's municipal boundary; and
(iii)
in appointing board members who represent retail customers receiving service 
outside of the municipality's municipal boundary, as required in Subsections 
(6)(b)(i)
 and 
(ii)
, solicit recommendations from each municipality and county 
outside of the municipality's municipal boundary whose residents are retail 
customers within the municipality's designated water service area.
(7)
A municipality that supplies water outside of the municipality's designated water service 
area shall supply the water only by contract and shall include in the contract the terms 
and conditions under which the contract can be terminated.
(8)
A municipality shall:
(a)
notify the director of the Division of Drinking Water of a contract the municipality 
enters into with a person outside of the municipality's designated water service area, 
including the name and contact information of the person named in each contract; and
(b)
each year, provide any supplementing or new information regarding a contract 
described in Subsection 
(8)(a)
, including whether there is no new information to 
provide at that time.
Section 5, Section 
17B-1-902.1
 is amended to read:
17B-1-902.1. Interest -- Collection of administrative costs.
(1)
(a)
A special district may charge interest on a past due fee 
or past due charge
as 
described in Section 
10-6-162
, the same as if the special district were a municipality
.
(b)
If a special district charges interest as described in Subsection 
(1)(b)
, the special district 
shall calculate the interest rate for a calendar year:
(i)
based on the federal short-term rate determined by the secretary of the treasury under 
Section 6621, Internal Revenue Code, in effect for the preceding fourth calendar quarter; 
and
(ii)
as simple interest at the rate of eighteen percentage points above the federal short-term 
rate.
(c)
If a special district charges interest on a past due fee collected by the special district, 
regardless of whether the fee is certified, the special district may charge the interest 
monthly but may not compound the interest more frequently than annually.
(2)
(a)
A special district may charge a one-time penalty or an administrative cost, as 
described in Section 
10-6-162
, the same as if the special district were a municipality.
(b)
A special district may not charge interest on a one-time penalty or an administrative 
cost.
(2)
(a)
A special district may charge and collect only one of the following:
(i)
a one-time penalty charge not to exceed 8% for a past-due fee; or
(ii)
an administrative cost for some or all of the following:
(A)
the collection cost of a past due fee or charge;
(B)
reasonable attorney fees actually incurred for collection and foreclosure costs, if 
applicable; and
(C)
any other cost.
(b)
A special district may not charge interest on an administrative cost.
Section 6. 
Effective Date.
This bill takes effect on 
May 7, 2025
.
1-22-25 9:36 AM