Assigned to GOV                                                                                                       FOR CAUCUS & FLOOR ACTION


 

 

 

ARIZONA STATE SENATE

Phoenix, Arizona

 

REVISED

FACT SHEET FOR H.B. 2031

 

municipal utility liens; water

 

Purpose

 

            Makes changes to procedure and definitions regarding a city or town filing a lien for nonpayment of utility user fees.

 

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

 

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

 

3.      Provides for a general effective date.

 

 

 

 

 

 

 

 

 

 

 

Amendments Adopted by Committee

 

            Removes requirement that delinquent fees exceed $1,000 for a city or town to file a lien for nonpayment of utility fees.

 

House Action                                                                   Senate Action

                                                                                   

EUT           3/7/01        DPA/SE           9-0-0-1              GOV        4/9/01        DPA       5-0-1

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

 

 

Prepared by Senate Staff

April 10, 2001