H.B. 273

This document includes House Floor Amendments incorporated into the bill on Tue, Feb 25, 2003 at 12:03 PM by bhilbert. --> 1

UTILITY COSTS TO HOMEOWNER
2 2003 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Steven R. Mascaro
5 This act modifies the Utah Municipal Code h AND PROVISIONS RELATING TO SPECIAL
5a DISTRICTS AND LOCAL DISTRICTS h to prohibit a municipality h , A SPECIAL DISTRICT, AND A
5b LOCAL DISTRICT h from refusing to
6 furnish water to property based on an arrearage from a previous owner or from
7 collecting a previous owner's arrearage from the current owner. h THE ACT AUTHORIZES SPECIAL
7a DISTRICTS AND LOCAL DISTRICTS THAT OWN OR CONTROL A WATER SYSTEM TO DISCONTINUE PROVIDING
7b WATER IF TH E PROPERTY OWNER FAILS TO PAY FOR WATER PREVIOUSLY FURNISHED . h The act also
7c makes
8 technical changes.
9 This act affects sections of Utah Code Annotated 1953 as follows:
10 AMENDS:
11 10-8-38, as last amended by Chapter 365, Laws of Utah 1999
12 ENACTS:
13 10-7-10.5, Utah Code Annotated 1953
13a h 17A-1-103, Utah Code Annotated 1953
13b 17B-2-103, Utah Code Annotated 1953 h
14 REPEALS:
15 10-7-10, Utah Code Annotated 1953
16 10-7-11, Utah Code Annotated 1953
17 Be it enacted by the Legislature of the state of Utah:
18 Section 1. Section 10-7-10.5 is enacted to read:
19 10-7-10.5. Authority to require written application for water service and to
20 terminate service for failure to pay -- Limitations.
21 (1) A municipality that owns or controls a system for furnishing water may:
22 (a) before furnishing water to a property, require the property owner or an authorized
23 agent to submit a written application, signed by the owner or an authorized agent, agreeing to
24 pay for all water furnished to the property, whether occupied by the owner or by a tenant or
25 other occupant, according to the ordinances, rules, and regulations adopted by the municipality;
26 and

27 (b) if an owner fails to pay for water furnished to the owner's property, discontinue

28 furnishing water to the property until all amounts for water furnished are paid, subject to
29 Subsection (2).
30 (2) (a) A municipality may not use an owner's failure to pay for water furnished to the
31 owner's property as a basis for not furnishing water to the property after ownership of the
32 property is transferred to a subsequent owner.
33 (b) A municipality may not require an owner to pay for water that was furnished to the
34 property before the owner's ownership.
35 Section 2. Section 10-8-38 is amended to read:
36 10-8-38. Drainage and sewage systems -- Construction regulation and control --
37 Retainage -- Mandatory hookup -- Charges for use -- Collection of charges -- Service to
38 tenants -- Failure to pay for service -- Service outside municipality.
39 (1) (a) Boards of commissioners, city councils, and boards of trustees of cities and
40 towns may construct, reconstruct, maintain, and operate, sewer systems, sewage treatment
41 plants, culverts, drains, sewers, catch basins, manholes, cesspools, and all systems, equipment,
42 and facilities necessary to the proper drainage, sewage, and sanitary sewage disposal
43 requirements of the city or town and regulate the construction and use thereof.
44 (b) If any payment on a contract with a private person, firm, or corporation to construct
45 or reconstruct sewer systems, sewage treatment plants, culverts, drains, sewers, catch basins,
46 manholes, cesspools, and other drainage and sewage systems is retained or withheld, it shall be
47 retained or withheld and released as provided in Section 13-8-5 .
48 (2) (a) [Any city or town may, for the purpose of defraying] In order to defray the cost
49 of [construction, reconstruction, maintenance or operation of any] constructing, reconstructing,
50 maintaining, or operating a sewer system or sewage treatment plant, [provide for mandatory
51 hookup where] a municipality may:
52 (i) require connection to the sewer system if the sewer is available and within 300 feet
53 of [any] the property line of a property with [any] a building used for human occupancy; and
54 (ii) make a reasonable charge for the use [thereof. In order to enforce the mandatory
55 hookup to the sewer where available and the collection of any such charge, any city or town] of
56 the sewer system.
57 (b) A municipality operating a waterworks system and a sewer system or sewage
58 treatment plant may:

59 (i) make one charge for the combined use of water and the services of the sewer
60 system[, including the services of any] or sewage treatment plant [operated by the city or town
61 and may provide by]; and
62 (ii) adopt an ordinance [that application for service from such combined system shall
63 be made in writing, signed by the] requiring a property owner desiring [such] water and sewer
64 service [or his authorized agent, in which] to submit a written application [such owner shall
65 agree that he will], signed by the owner or the owner's authorized agent, agreeing to pay,
66 according to the ordinance enacted by the municipality, for [all] the water and sewer service
67 furnished [such] the owner [according to the rules and regulations enacted in the ordinance of
68 such city or town].
69 [(b) In case an application for furnishing service from such combined systems shall be
70 made by a tenant of the owner, such city or town may require as a condition of granting the
71 same that such application contain an agreement signed by the owner or his duly authorized
72 agent to the effect that in consideration of granting such application the owner will pay for all
73 service furnished such tenant or any other occupant of the premises named in the application in
74 case such tenant or occupant shall fail to pay for the same according to the ordinance of such
75 city or town.]
76 [(c) In case any person shall fail to hookup]
77 (c) (i) If a person fails to connect to the sewer [where available and in case any
78 applicant shall fail] when connection is required under Subsection (2)(a)(i) or fails to pay for
79 the sewer service [furnished according to the rules and regulations prescribed by the] as
80 required under applicable municipal ordinances [of such city or town], then the [city or town]
81 municipality may cause the water to be shut off from [such] the premises [and shall not be
82 required to turn the same on again] until [such] the person has:
83 (A) hooked up to the sewer at [his] the person's own expense; or [all arrears for service
84 furnished shall be]
85 (B) paid in full for all sewer service.
86 [(d) Cities and towns]
87 (ii) A municipality may not use an owner's failure to pay for sewer service furnished to
88 the owner's property as a basis for not furnishing water to the property after ownership of the
89 property is transferred to a subsequent owner.

90 (iii) A municipality may not require an owner to pay for sewer service that was
91 furnished to the property before the owner's ownership.
92 (d) A municipality may sell and deliver [from the surplus capacity thereof,] water or
93 sewer services [of any such system or facility not required by the municipality or its
94 inhabitants] to others beyond the limits of the municipality from the surplus capacity of the
95 municipality's waterworks or sewer system.
95a h Section 3. Section 17A-1-103 is enacted to read:
95b 17A-1-103. Authority to require written application for water service and to terminate service
95c for failure to pay -- Limitations.
95d (1) A SPECIAL DISTRICT THAT OWNS OR CONTROLS A SYSTEM FOR FURNISHING WATER
95e MAY:
95f (a) BEFORE FURNISHING WATER TO A PROPERTY, REQUIRE THE PROPERTY OWNER OR
95g AN AUTHORIZED AGENT TO SUBMIT A WRITTEN APPLICATION, SIGNED BY THE OWNER OR AN
95h AUTHORIZED AGENT, AGREEING TO PAY FOR ALL WATER FURNISHED TO THE PROPERTY,
95i WHETHER OCCUPIED BY THE OWNER OR BY A TENANT OR OTHER OCCUPANT, ACCORDING TO
95j RULES, REGULATIONS, OR RESOLUTIONS ADOPTED BY THE SPECIAL DISTRICT; AND
95k (b) IF AN OWNER FAILS TO PAY FOR WATER FURNISHED TO THE OWNER'S PROPERTY,
95l DISCONTINUE FURNISHING WATER TO THE PROPERTY UNTIL ALL AMOUNTS FOR WATER
95m FURNISHED ARE PAID, SUBJECT TO SUBSECTION (2).
95n (2)(a) A SPECIAL DISTRICT MAY NOT USE AN OWNER'S FAILURE TO PAY FOR WATER
95o FURNISHED TO THE OWNER'S PROPERTY AS A BASIS FOR NOT FURNISHING WATER TO THE
95p PROPERTY AFTER OWNERSHIP OF THE PROPERTY IS TRANSFERRED TO A SUBSEQUENT
95q OWNER.
95r (b) A SPECIAL DISTRICT MAY NOT REQUIRE AN OWNER TO PAY FOR WATER THAT WAS
95s FURNISHED TO THE PROPERTY BEFORE THE OWNER'S OWNERSHIP.
95t Section 4. Section 17B-2-103 is enacted to read:
95u 17B-2-103. Authority to require written application for water service and to terminate service
95v for failure to pay -- Limitations.
95w (1) A LOCAL DISTRICT THAT OWNS OR CONTROLS A SYSTEM FOR FURNISHING WATER
95x MAY:
95y (a) BEFORE FURNISHING WATER TO A PROPERTY, REQUIRE THE PROPERTY OWNER OR
95z AN AUTHORIZED AGENT TO SUBMIT A WRITTEN APPLICATION, SIGNED BY THE OWNER OR AN
95aa AUTHORIZED AGENT, AGREEING TO PAY FOR ALL WATER FURNISHED TO THE PROPERTY,
95ab WHETHER OCCUPIED BY THE OWNER OR BY A TENANT OR OTHER OCCUPANT, ACCORDING TO
95ac RULES, REGULATIONS, OR RESOLUTIONS ADOPTED BY THE LOCAL DISTRICT; AND
95ad (b) IF AN OWNER FAILS TO PAY FOR WATER FURNISHED TO THE OWNER'S PROPERTY,
95ae DISCONTINUE FURNISHING WATER TO THE PROPERTY UNTIL ALL AMOUNTS FOR WATER
95af FURNISHED ARE PAID, SUBJECT TO SUBSECTION (2).
95ag (2)(a) A LOCAL DISTRICT MAY NOT USE AN OWNER'S FAILURE TO PAY FOR WATER
95ah FURNISHED TO THE OWNER'S PROPERTY AS A BASIS FOR NOT FURNISHING WATER TO THE
95ai PROPERTY AFTER OWNERSHIP OF THE PROPERTY IS TRANSFERRED TO A SUBSEQUENT
95aj OWNER. h

95ak h (b) A LOCAL DISTRICT MAY NOT REQUIRE AN OWNER TO PAY FOR WATER THAT WAS
95al FURNISHED TO THE PROPERTY BEFORE THE OWNER'S OWNERSHIP. h
96 Section h [ 3 ] 5 h . Repealer.
97 This act repeals:
98 Section 10-7-10, Water rates -- Owner of premises liable.
99 Section 10-7-11, Failure to pay for service -- Termination.




Legislative Review Note
as of 2-6-03 7:32 AM

A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel