STATE OF OKLAHOMA

1st Session of the 54th Legislature (2013)

SENATE BILL 543	By:	Holt

AS INTRODUCED

An Act relating to municipal services; providing procedure for collection of unpaid solid waste and sewer service accounts; stating purpose; requiring certain notice, posting or publication prior to hearing; authorizing certain hearing; authorizing filing of lien with county clerk; providing payment process; authorizing certain fee; stating exception for certain mineral interests; providing for discharge of lien; authorizing procedure for collection of unpaid storm water drainage service accounts; providing for right of appeal; defining terms; providing for codification; and providing an effective date.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 22-112.4 of Title 11, unless there is created a duplication in numbering, reads as follows:
A.  A municipal governing body may cause unpaid solid waste service accounts within the municipal limits to be collected in accordance with the following procedure due to the accumulation of trash which causes the property to become detrimental to the general health, safety, and welfare of the public and the community or a hazard to traffic or creates a fire hazard to the danger of the property:
1.  At least ten (10) days' notice shall be given to the account holder and property owner before the municipal governing body holds a hearing or takes action;
2.  The municipal clerk shall forward a notice of the delinquent account after four (4) months of nonpayment and a demand for payment by mail to the account holder at the last known address as shown on the account and any property owner at the address shown by the current year's tax rolls in the office of the county treasurer.  At the time of mailing of the notice of the delinquent account to the account holder and property owner, the municipality shall obtain a receipt of mailing from the postal service, which receipt shall indicate the date of mailing and the name and address of the mailee. However, if neither the account holder or property owner can be located, notice may be given by posting a copy of the notice on the property or by publication, as defined in Section 1-102 of Title 11 of the Oklahoma Statutes, one time no less than ten (10) days prior to any hearing or action by the municipality;
3.  A hearing may be held by the municipal governing body or by a hearing officer or board appointed by the governing body to determine the delinquency of the account for four (4) months of nonpayment, the actual cost of the service provided by the municipality and any other expenses as may be necessary in connection therewith, including the cost of notice and mailing;
4.  Upon a finding of delinquency of the account for four (4) months of nonpayment, cost of the service and expenses, the municipal clerk shall file a notice of lien with the county clerk describing the property, cost of the service and expenses provided by the municipality and stating that the municipality claims a lien on the property for this service.  A copy of the notice of finding of delinquency and the notice of lien shall be sent to the account hold and the owner of the property in the same manner as provided in paragraph 2 of this subsection;
5.  If payment of the cost of service and expenses has not been made within thirty (30) days of receipt of the notice of finding of delinquency, then within the next thirty (30) days the municipal clerk shall forward a certified statement of the amount of the cost of service and expenses to the county treasurer of the county in which the property is located and the same shall be levied on the property and collected by the county treasurer as other taxes authorized by law. Once certified by the county treasurer, payment shall be made to the county treasurer except as otherwise provided for in this section.  In addition, the cost of service, expenses and interest thereon shall be a lien against the property from the date the cost of service and expenses are certified to the county treasurer, coequal with the lien of ad valorem taxes and all other taxes and special assessments and prior and superior to all other titles and liens against the property and the lien shall continue until the cost and expenses shall be fully paid.  At the time of collection, the county treasurer shall collect a fee of Five Dollars ($5.00) for each parcel of property.  The fee shall be deposited to the credit of the general fund of the county.  If the county treasurer and the municipality agree that the county treasurer is unable to collect the assessment, the municipality may pursue a civil remedy for collection of the amount owing and interest thereon by an action in person against the property owner and an action in rem to foreclose its lien against the property.  A mineral interest, if severed from the surface interest and not owned by the surface owner, shall not be subject to any tax or judgment lien created pursuant to this section.  Upon receiving payment, if any, the municipal clerk shall forward to the county treasurer a notice of such payment and directing discharge of the lien; and
6.  Where a finding of delinquency in solid waste and/or sewer service accounts has been found and any appeal as provided herein has been exhausted, the municipal governing body may discontinue providing such services to the subject property provided the notices provided in subsection A of this section included notice of the possible discontinuation of service.  The municipality may continue such discontinuation until such time as the delinquent property owner enters into an agreement with the municipal governing body to satisfy the delinquency and meets all other requirements of the municipality to reconnect service.  If ownership of the property changes, the new owner may reestablish such service accounts at the property without incurring liability for delinquencies attributable to the prior owner if the new owner complies with all requirements for the establishment of a new account as established by the municipality; and
7.  For delinquent sewer service accounts, notwithstanding the provisions of paragraph 5 of this subsection, the municipal governing body may take action to effectuate the discontinuation of sewer service at the subject property including:
a.	if the municipality provides water service, such service may be discontinued if such discontinuation is necessary to effectuate the lawful discontinuation of sewer service at the subject property.  The discontinuation of water service under this section may only be effectuated if the notice provided in subsection A of this section included a notice to the account holder and the property owner that discontinuation of water service may occur of a delinquency is found for the sewer service account,
b.	if the municipality providing sewer service does not provide water service, the municipal governing body may pursue a civil remedy against the delinquent account holder in the district court for the county in which the subject property is located to seek an order to discontinue water service at the subject property if discontinuation of water service is found by the court to be necessary to effectuate the discontinuation of sewer service.  In such an action, the entity providing water service at the subject property shall be named as a party to the action and afforded an opportunity to file any objection to the discontinuation of water service.  The account holder, property owner and third party water provider shall file any objection within twenty (20) days of service of the petition.  If no objection is filed by the water service provider, any order of the court to discontinue water service shall be final and binding.  If an objection is filed, the water service provider will be considered an interested party in the proceeding.  The court, upon initiation of such discontinuation proceeding shall afford the account holder and property owner and the water service provider (if an objection is filed) the opportunity to challenge the basis for the request to terminate water service if an objection is timely filed.  If no objection is filed, an order of termination of sewer and water service shall be entered.  If an objection is filed, a the judicial review shall be limited to a review of:
(1)	whether the notice provisions provided in subsection A of this section were complied with,
(2)	whether a delinquency was found to exist,
(3)	whether the appeal provisions of this section were exhausted, and
(4)	whether the discontinuation of water service is necessary to effectuate the discontinuation of sewer service.
The court shall enter a final order granting or denying the request to discontinue water service.  Such order shall remain in effect for ten (10) days from the date water service is discontinued,
c.	a water service provider, whether the municipality providing sewer service or another entity, shall not be held liable in a civil action as a result of its discontinuing water service at a subject property if such discontinuation was pursuant to the provisions contained within this subsection.
B.  A municipal governing body may cause unpaid sewer service accounts within the municipal limits to be collected in accordance with the procedures in subsection A of this section. 
C.  A municipal governing body may cause unpaid storm water drainage service accounts within the municipal limits to be collected in accordance with the procedures in subsection A of this section due to the hazards and damages of storm water drainage which cause the property to become detrimental to the general health, safety, and welfare of the public and the community or the property.
D.  The account holder and property owner shall have a right of appeal to the municipal governing body from any order of the governing body or hearing officer or board appointed by such body as provided in subsection A of this section.  Such appeal shall be taken by filing written notice of appeal with the municipal clerk within ten (10) days after the administrative order is rendered in subsections A and B of this section.
E.  As used in this section:
1.  "Solid waste" shall have the same meaning as provided in Section 2-10-103 of Title 27A of the Oklahoma Statutes;
2.  "Storm water" shall have the same meaning as provided in Section 1-1-201 of Title 27A of the Oklahoma Statutes;
3.  "Account holder" means the person or entity that the solid waste or storm water drainage account has been set up with the municipality; and
4.  "Property owner" means the owner of record as shown by the most current tax rolls of the county treasurer.

SECTION 2.  This act shall become effective November 1, 2013.

54-1-1038	MJM	1/15/2013 7:56:56 PM