Bill Text: OH SB325 | 2013-2014 | 130th General Assembly | Introduced

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Bill Title: Regarding property liens for unpaid county or municipal water service charges.

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Introduced - Dead) 2014-04-07 - To State Government Oversight & Reform [SB325 Detail]

Download: Ohio-2013-SB325-Introduced.html

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As Introduced

130th General Assembly Regular Session 2013-2014

S. B. No. 325

Senator Brown 

Cosponsors: Senators Smith, Seitz 

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A BILL

To amend sections 743.04 and 6103.02 of the Revised

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Code regarding property liens for unpaid county or

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municipal water service charges.

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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1.  That sections 743.04 and 6103.02 of the Revised	4
Code be amended to read as follows:	5

Sec. 743.04.  For the purpose of paying the expenses of	6
conducting and managing the waterworks of a municipal corporation,	7
including operating expenses and the costs of permanent	8
improvements, the director of public service or any other city	9
official or body authorized by charter may assess and collect a	10
water rent or charge of sufficient amount and in such manner as he	11
the director, other official, or itbody determines to be most	12
equitable from all tenements and premises supplied with water.	13
When water rents or charges are not paid when due, the director or	14
other official or body may do either or both of the following:	15

(A) Certify them, together with any penalties, to the county	16
auditor. The county auditor shall place the certified amount on	17
the real property tax list and duplicate against the property	18
served by the connection if hethe auditor also receives from the	19
director or other official or body additional certification that	20
theof both of the following:	21

(1) The unpaid rents or charges have arisen pursuant to a	22
service contract made directly with an owner who occupies the	23
property served;	24

(2) One of the following:

25

(a) The property has not been sold to a new owner after the	26
date the unpaid water rents or charges became due.	27

(b) The property has been sold since the date the unpaid	28
water rents or charges became due, and neither party to the most	29
recent sale, either directly or through their agents:	30

(i) Made a timely request for a final bill to be rendered for	31
all outstanding rents or charges for water service under division	32
(B) of this section; or	33

(ii) Paid the outstanding rents or charges on the final bill	34
for water service rendered under division (B) of this section.	35

The amount placed on the tax list and duplicate shall be a	36
lien on the property served from the date placed on the list and	37
duplicate and shall be collected in the same manner as other	38
taxes, except that, notwithstanding section 323.15 of the Revised	39
Code, a county treasurer shall accept a payment in such amount	40
when separately tendered as payment for the full amount of such	41
unpaid water rents or charges and associated penalties. The lien	42
shall be released immediately upon payment in full of the	43
certified amount. Any amounts collected by the county treasurer	44
under this division shall be immediately placed in the distinct	45
fund established by section 743.06 of the Revised Code.	46

(B) Collect them by actions at law, in the name of the city	47
from an owner, tenant, or other person who is liable to pay the	48
rents or charges.	49

Each director or other official or body that assesses water	50
rents or charges shall determine the actual amount of rents due	51
based upon an actual reading of each customer's meter at least	52
once in each three-month period, and at least quarterly the	53
director or other official or body shall render a bill for the	54
actual amount shown by the meter reading to be due, except	55
estimated bills may be rendered if access to a customer's meter	56
was unobtainable for a timely reading. Each director or other	57
official or body that assesses water rents or charges shall	58
establish procedures providing fair and reasonable opportunity for	59
resolution of billing disputes.	60

When property to which water service is provided is about to	61
be sold, any party to the sale or histhe agent of any such party	62
may request the director or other official or body to read the	63
meter at that property and to render within ten days following the	64
date on which the request is made, a final bill for all	65
outstanding rents and charges for water service. Such a request	66
shall be made at least fourteen days prior to the transfer of the	67
title of such property.	68

At any time prior to a certification under division (A) of	69
this section, the director or other official or body shall accept	70
any partial payment of unpaid water rents or charges, in the	71
amount of ten dollars or more.	72

Sec. 6103.02.  (A) For the purpose of preserving and	73
promoting the public health and welfare, a board of county	74
commissioners may acquire, construct, maintain, and operate any	75
public water supply facilities within its county for one or more	76
sewer districts and may provide for their protection and prevent	77
their pollution and unnecessary waste. The board may negotiate and	78
enter into a contract with any public agency or any person for the	79
management, maintenance, operation, and repair of the facilities	80
on behalf of the county, upon the terms and conditions as may be	81
agreed upon with the agency or person and as may be determined by	82
the board to be in the interests of the county. By contract with	83
any public agency or any person operating public water supply	84
facilities within or without its county, the board also may	85
provide a supply of water to a sewer district from the facilities	86
of the public agency or person.	87

(B) The county sanitary engineer or sanitary engineering	88
department, in addition to other assigned duties, shall assist the	89
board in the performance of its duties under this chapter and	90
shall be charged with other duties and services in relation to the	91
board's duties as the board prescribes.	92

(C) The board may adopt, publish, administer, and enforce	93
rules for the construction, maintenance, protection, and use of	94
county-owned or county-operated public water supply facilities	95
outside municipal corporations and of public water supply	96
facilities within municipal corporations that are owned or	97
operated by the county or that are supplied with water from water	98
supply facilities owned or operated by the county, including, but	99
not limited to, rules for the establishment and use of any	100
connections, the termination in accordance with reasonable	101
procedures of water service for nonpayment of county water rates	102
and charges, and the establishment and use of security deposits to	103
the extent considered necessary to ensure the payment of county	104
water rates and charges. The rules shall not be inconsistent with	105
the laws of the state or any applicable rules of the director of	106
environmental protection.	107

(D) No public water supply facilities shall be constructed in	108
any county outside municipal corporations by any person, except	109
for the purpose of supplying water to those municipal	110
corporations, until the plans and specifications for the	111
facilities have been approved by the board. Construction shall be	112
done under the supervision of the county sanitary engineer. Any	113
person constructing public water supply facilities shall pay to	114
the county all expenses incurred by the board in connection with	115
the construction.	116

(E) The county sanitary engineer or the county sanitary	117
engineer's authorized assistants or agents, when properly	118
identified in writing or otherwise and after written notice is	119
delivered to the owner at least five days in advance or mailed at	120
least five days in advance by first class or certified mail to the	121
owner's tax mailing address, may enter upon any public or private	122
property for the purpose of making, and may make, surveys or	123
inspections necessary for the design or evaluation of county	124
public water supply facilities. This entry is not a trespass and	125
is not to be considered an entry in connection with any	126
appropriation of property proceedings under sections 163.01 to	127
163.22 of the Revised Code that may be pending. No person or	128
public agency shall forbid the county sanitary engineer or the	129
county sanitary engineer's authorized assistants or agents to	130
enter, or interfere with their entry, upon the property for the	131
purpose of making the surveys or inspections. If actual damage is	132
done to property by the making of the surveys or inspections, the	133
board shall pay the reasonable value of the damage to the property	134
owner, and the cost shall be included in the cost of the	135
facilities and may be included in any special assessments levied	136
and collected to pay that cost.	137

(F) The board shall fix reasonable rates, including penalties	138
for late payments, for water supplied to public agencies and	139
persons when the source of supply or the facilities for its	140
distribution are owned or operated by the county and may change	141
the rates from time to time as it considers advisable. When the	142
source of the water supply to be used by the county is owned by	143
another public agency or person, the schedule of rates to be	144
charged by the public agency or person shall be approved by the	145
board at the time it enters into a contract for the use of water	146
from the public agency or person.	147

When the distribution facilities are owned by the county, the	148
board also may fix reasonable charges to be collected for the	149
privilege of connecting to the distribution facilities and may	150
require that, prior to the connection, the charges be paid in full	151
or, if determined by the board to be equitable in a resolution	152
relating to the payment of the charges, may require their payment	153
in installments, as considered adequate by the board, at the	154
times, in the amounts, and with the security, carrying charges,	155
and penalties as may be determined by the board in that resolution	156
to be fair and appropriate. No public agency or person shall be	157
permitted to connect to those facilities until the charges have	158
been paid in full or provision for their payment in installments	159
has been made. If the connection charges are to be paid in	160
installments, the board shall certify, to the county auditor,	161
information sufficient to identify each parcel of property served	162
by a connection and, with respect to each parcel, the total of the	163
charges to be paid in installments, the amount of each	164
installment, and the total number of installments to be paid. The	165
county auditor shall record and maintain the information so	166
supplied in the waterworks record provided for in section 6103.16	167
of the Revised Code until the connection charges are paid in full.	168
The board may include amounts attributable to connection charges	169
being paid in installments in its billings of rates and other	170
charges for water supplied. In addition, the board may consider	171
payments made to a school district under section 6103.25 of the	172
Revised Code when the board establishes rates and other charges	173
for water supplied.	174

A board may establish discounted rates or charges or may	175
establish another mechanism for providing a reduction in rates or	176
charges for persons who are sixty-five years of age or older. The	177
board shall establish eligibility requirements for such discounted	178
or reduced rates or charges, including a requirement that a person	179
be eligible for the homestead exemption or qualify as a low- and	180
moderate-income person.	181

(G) When any rates or charges are not paid when due, the	182
board may do any or all of the following:	183

(1) Certify the unpaid rates or charges, together with any	184
penalties, to the county auditor. The county auditor shall place	185
the certified amount uponon the real property tax list and	186
duplicate against the property served by the connection if the	187
auditor also receives from the board additional certification of	188
one of the following:	189

(a) The property has not been sold to a new owner after the	190
date the unpaid water rates or charges became due.	191

(b) The property has been sold since the date the unpaid	192
water rates or charges became due, and neither party to the most	193
recent sale, either directly or through their agents:	194

(i) Made a timely request for a final bill to be rendered for	195
all outstanding rates or charges for water service under division	196
(G)(4) of this section; or	197

(ii) Paid the outstanding rates or charges on the final bill	198
rendered under division (G)(4) of this section. The	199

The certified amount shall be a lien on the property from the	200
date placed on the real property tax list and duplicate and shall	201
be collected in the same manner as taxes, except that,	202
notwithstanding section 323.15 of the Revised Code, a county	203
treasurer shall accept a payment in that amount when separately	204
tendered as payment for the full amount of the unpaid rates or	205
charges and associated penalties. The lien shall be released	206
immediately upon payment in full of the certified amount.	207

(2) Collect the unpaid rates or charges, together with any	208
penalties, by actions at law in the name of the county from an	209
owner, tenant, or other person or public agency that is liable for	210
the payment of the rates or charges;	211

(3) Terminate, in accordance with established rules, the	212
water service to the particular property unless and until the	213
unpaid rates or charges, together with any penalties, are paid in	214
full;	215

(4) Apply, to the extent required, any security deposit made	216
in accordance with established rules to the payment of the unpaid	217
rates and charges, together with any penalties, for water service	218
to the particular property.	219

All moneys collected as rates, charges, or penalties fixed or	220
established in accordance with division (F) of this section for	221
water supply purposes in or for any sewer district shall be paid	222
to the county treasurer and kept in a separate and distinct water	223
fund established by the board to the credit of the district.	224

Each board that fixes water rates or charges may render	225
estimated bills periodically, provided that at least quarterly it	226
shall schedule an actual reading of each customer's meter so as to	227
render a bill for the actual amount shown by the meter reading to	228
be due, with credit for prior payments of any estimated bills	229
submitted for any part of the billing period, except that	230
estimated bills may be rendered if a customer's meter is not	231
accessible for a timely reading or if the circumstances preclude a	232
scheduled reading. Each board also shall establish procedures	233
providing a fair and reasonable opportunity for the resolution of	234
billing disputes.	235

When property to which water service is provided is about to	236
be sold, any party to the sale or an agent of a party may request	237
the board to have the meter at that property read and to render,	238
within ten days following the date on which the request is made, a	239
final bill for all outstanding rates and charges for water	240
service. The request shall be made at least fourteen days prior to	241
the transfer of the title of the property.	242

At any time prior to a certification under division (G)(1) of	243
this section, the board shall accept any partial payment of unpaid	244
water rates or charges in the amount of ten dollars or more.	245

Except as otherwise provided in any proceedings authorizing	246
or providing for the security for and payment of any public	247
obligations, or in any indenture or trust or other agreement	248
securing public obligations, moneys in the water fund shall be	249
applied first to the payment of the cost of the management,	250
maintenance, and operation of the water supply facilities of, or	251
used or operated for, the sewer district, which cost may include	252
the county's share of management, maintenance, and operation costs	253
under cooperative contracts for the acquisition, construction, or	254
use of water supply facilities and, in accordance with a cost	255
allocation plan adopted under division (H) of this section,	256
payment of all allowable direct and indirect costs of the	257
district, the county sanitary engineer or sanitary engineering	258
department, or a federal or state grant program, incurred for the	259
purposes of this chapter, and shall be applied second to the	260
payment of debt charges payable on any outstanding public	261
obligations issued or incurred for the acquisition or construction	262
of water supply facilities for or serving the district, or for the	263
funding of a bond retirement or other fund established for the	264
payment of or security for the obligations. Any surplus remaining	265
may be applied to the acquisition or construction of those	266
facilities or for the payment of contributions to be made, or	267
costs incurred, for the acquisition or construction of those	268
facilities under cooperative contracts. Moneys in the water fund	269
shall not be expended other than for the use and benefit of the	270
district.	271

(H) A board of county commissioners may adopt a cost	272
allocation plan that identifies, accumulates, and distributes	273
allowable direct and indirect costs that may be paid from the	274
water fund of the sewer district created pursuant to division (G)	275
of this section, and that prescribes methods for allocating those	276
costs. The plan shall authorize payment from the fund of only	277
those costs incurred by the district, the county sanitary engineer	278
or sanitary engineering department, or a federal or state grant	279
program, and those costs incurred by the general and other funds	280
of the county for a common or joint purpose, that are necessary	281
and reasonable for the proper and efficient administration of the	282
district under this chapter. The plan shall not authorize payment	283
from the fund of any general government expense required to carry	284
out the overall governmental responsibilities of a county. The	285
plan shall conform to United States office of management and	286
budget Circular A-87, "Cost Principles for State, Local, and	287
Indian Tribal Governments," published May 17, 1995.	288

Section 2.  That existing sections 743.04 and 6103.02 of the	289
Revised Code are hereby repealed.	290