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ARIZONA STATE SENATE

Phoenix, Arizona

 

FACT SHEET FOR H.B. 2031

 

municipal utility liens; water

 

Purpose

 

            Limits city or towns from filing a lien for non payment of utility fees to outstanding fees of $1,000 or more.

 

Background

 

            A utility user fee is defined in statute as a fee charged for sewer services provided to a property. Currently, a city or town may file a lien on a property if the utility user fees payment is not received for services to the property.  The law stipulates that the payment of the fees must be delinquent for more than 90 days before the lien can be filed.  Additionally, at least 30 days before filing the lien, the town must provide written notice to the property owner to allow time for a hearing with a designated city or town official.

 

            As utility user fee is currently defined, a city or town may only file a lien for sewer services provided.  Many cities and towns include water on the same line item as sewer, making the legality of placing a lien on only sewer unclear.  This legislation broadens the definition of utility users to include fees for water.

 

            There is no direct fiscal impact to the state general fund associated with this legislation.

 

Provisions

 

1.      Prohibits a city or town from filing a lien on a property for the nonpayment of utility user fees unless the total amount delinquent for services provided exceeds $1,000.

 

2.      Requires a city or town to provide an opportunity for a hearing with a designated city or town official before the lien is recorded.

 

3.      Broadens the definition of utility user fees to include fees charged for providing water.

 

4.      Provides for a general effective date.

 

House Action

 

EUT                 3/7/01              DPA/SE           9-0-0-1

3rd Read           3/19/01                                    39-16-5

 

Prepared by Senate Staff

April 5, 2001