H.B. 273 Enrolled

UTILITY COSTS TO HOMEOWNER
2003 GENERAL SESSION
STATE OF UTAH
Sponsor: Steven R. Mascaro
This act modifies the Utah Municipal Code and provisions relating to special districts and
local districts to prohibit a municipality, a special district, and a local district from
refusing to furnish water to property based on an arrearage from a previous owner or
from collecting a previous owner's arrearage from the current owner. The act authorizes
special districts and local districts that own or control a water system to discontinue
providing water if the property owner fails to pay for water previously furnished. The
act also makes technical changes.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
10-8-38, as last amended by Chapter 365, Laws of Utah 1999
ENACTS:
10-7-10.5, Utah Code Annotated 1953
17A-1-103, Utah Code Annotated 1953
17B-2-103, Utah Code Annotated 1953
REPEALS:
10-7-10, Utah Code Annotated 1953
10-7-11, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 10-7-10.5 is enacted to read:
10-7-10.5. Authority to require written application for water service and to
terminate service for failure to pay -- Limitations.
(1) A municipality that owns or controls a system for furnishing water may:
(a) before furnishing water to a property, require the property owner or an authorized
agent to submit a written application, signed by the owner or an authorized agent, agreeing to
pay for all water furnished to the property, whether occupied by the owner or by a tenant or

other occupant, according to the ordinances, rules, and regulations adopted by the municipality;
and
(b) if an owner fails to pay for water furnished to the owner's property, discontinue
furnishing water to the property until all amounts for water furnished are paid, subject to
Subsection (2).
(2) (a) A municipality may not use an owner's failure to pay for water furnished to the
owner's property as a basis for not furnishing water to the property after ownership of the
property is transferred to a subsequent owner.
(b) A municipality may not require an owner to pay for water that was furnished to the
property before the owner's ownership.
Section 2. Section 10-8-38 is amended to read:
10-8-38. Drainage and sewage systems -- Construction regulation and control --
Retainage -- Mandatory hookup -- Charges for use -- Collection of charges -- Service to
tenants -- Failure to pay for service -- Service outside municipality.
(1) (a) Boards of commissioners, city councils, and boards of trustees of cities and towns
may construct, reconstruct, maintain, and operate, sewer systems, sewage treatment plants,
culverts, drains, sewers, catch basins, manholes, cesspools, and all systems, equipment, and
facilities necessary to the proper drainage, sewage, and sanitary sewage disposal requirements of
the city or town and regulate the construction and use thereof.
(b) If any payment on a contract with a private person, firm, or corporation to construct
or reconstruct sewer systems, sewage treatment plants, culverts, drains, sewers, catch basins,
manholes, cesspools, and other drainage and sewage systems is retained or withheld, it shall be
retained or withheld and released as provided in Section 13-8-5 .
(2) (a) [Any city or town may, for the purpose of defraying] In order to defray the cost of
[construction, reconstruction, maintenance or operation of any] constructing, reconstructing,
maintaining, or operating a sewer system or sewage treatment plant, [provide for mandatory
hookup where] a municipality may:
(i) require connection to the sewer system if the sewer is available and within 300 feet of

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[any] the property line of a property with [any] a building used for human occupancy; and
(ii) make a reasonable charge for the use [thereof. In order to enforce the mandatory
hookup to the sewer where available and the collection of any such charge, any city or town] of
the sewer system.
(b) A municipality operating a waterworks system and a sewer system or sewage
treatment plant may:
(i) make one charge for the combined use of water and the services of the sewer system[,
including the services of any] or sewage treatment plant [operated by the city or town and may
provide by]; and
(ii) adopt an ordinance [that application for service from such combined system shall be
made in writing, signed by the] requiring a property owner desiring [such] water and sewer
service [or his authorized agent, in which] to submit a written application [such owner shall agree
that he will], signed by the owner or the owner's authorized agent, agreeing to pay, according to
the ordinance enacted by the municipality, for [all] the water and sewer service furnished [such]
the owner [according to the rules and regulations enacted in the ordinance of such city or town].
[(b) In case an application for furnishing service from such combined systems shall be
made by a tenant of the owner, such city or town may require as a condition of granting the same
that such application contain an agreement signed by the owner or his duly authorized agent to
the effect that in consideration of granting such application the owner will pay for all service
furnished such tenant or any other occupant of the premises named in the application in case such
tenant or occupant shall fail to pay for the same according to the ordinance of such city or town.]
[(c) In case any person shall fail to hookup]
(c) (i) If a person fails to connect to the sewer [where available and in case any applicant
shall fail] when connection is required under Subsection (2)(a)(i) or fails to pay for the sewer
service [furnished according to the rules and regulations prescribed by the] as required under
applicable municipal ordinances [of such city or town], then the [city or town] municipality may
cause the water to be shut off from [such] the premises [and shall not be required to turn the
same on again] until [such] the person has:

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(A) hooked up to the sewer at [his] the person's own expense; or [all arrears for service
furnished shall be]
(B) paid in full for all sewer service.
[(d) Cities and towns]
(ii) A municipality may not use an owner's failure to pay for sewer service furnished to
the owner's property as a basis for not furnishing water to the property after ownership of the
property is transferred to a subsequent owner.
(iii) A municipality may not require an owner to pay for sewer service that was furnished
to the property before the owner's ownership.
(d) A municipality may sell and deliver [from the surplus capacity thereof,] water or
sewer services [of any such system or facility not required by the municipality or its inhabitants]
to others beyond the limits of the municipality from the surplus capacity of the municipality's
waterworks or sewer system.
Section 3. Section 17A-1-103 is enacted to read:
17A-1-103. Authority to require written application for water service and to
terminate service for failure to pay -- Limitations.
(1) A special district that owns or controls a system for furnishing water may:
(a) before furnishing water to a property, require the property owner or an authorized
agent to submit a written application, signed by the owner or an authorized agent, agreeing to pay
for all water furnished to the property, whether occupied by the owner or by a tenant or other
occupant, according to rules, regulations, or resolutions adopted by the special district; and
(b) if an owner fails to pay for water furnished to the owner's property, discontinue
furnishing water to the property until all amounts for water furnished are paid, subject to
Subsection (2).
(2) (a) A special district may not use an owner's failure to pay for water furnished to the
owner's property as a basis for not furnishing water to the property after ownership of the
property is transferred to a subsequent owner.
(b) A special district may not require an owner to pay for water that was furnished to the

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property before the owner's ownership.
Section 4. Section 17B-2-103 is enacted to read:
17B-2-103. Authority to require written application for water service and to
terminate service for failure to pay -- Limitations.
(1) A local district that owns or controls a system for furnishing water may:
(a) before furnishing water to a property, require the property owner or an authorized
agent to submit a written application, signed by the owner or an authorized agent, agreeing to pay
for all water furnished to the property, whether occupied by the owner or by a tenant or other
occupant, according to rules, regulations, or resolutions adopted by the local district; and
(b) if an owner fails to pay for water furnished to the owner's property, discontinue
furnishing water to the property until all amounts for water furnished are paid, subject to
Subsection (2).
(2) (a) A local district may not use an owner's failure to pay for water furnished to the
owner's property as a basis for not furnishing water to the property after ownership of the
property is transferred to a subsequent owner.
(b) A local district may not require an owner to pay for water that was furnished to the
property before the owner's ownership.
Section 5. Repealer.
This act repeals:
Section 10-7-10, Water rates -- Owner of premises liable.
Section 10-7-11, Failure to pay for service -- Termination.

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