HB 2069 repeals statutes that provide cities and towns with the authority to attach liens to properties for a tenant’s unpaid utility bills. Additionally, the bill prohibits municipal utility providers from being able to collect on unpaid or delinquent accounts from a property owner when the account is in a tenant’s name.

HB 2069 was heard during the 2019 regular session, but did not pass partly due to concerns raised by cities. It was again heard in the House Civil Rights & Judiciary Committee on January 24; however, due to a crowded hearing schedule, city representatives only had the opportunity to speak for one minute on the bill.

The result of this bill would be fewer options for cities in collecting on delinquent accounts. That could result in more unpaid bills driving up costs for all other ratepayers. Cities maintain that it is appropriate for landlords to be responsible when a tenant has a delinquent bill because they have tools, like withholding a deposit, to help hold the tenant accountable.

In early November, AWC conducted a survey to gather city data regarding usage of lien authority. Cities reported that using lien authority is the only sure way to collect payments, as often they cannot shut off water or sewer services. Cities use a variety of steps before relying upon a lien to collect on delinquent accounts, including letters in the mail, door hangers, late fees and penalties, phone calls, and collection agencies. However, cities report that liens are the most effective way to collect delinquent payments on vacated or foreclosed properties without transferring the burden to the subsequent property owner. The loss of city lien authority could result in over $8 million in lost city revenue.

The loss of city lien authority could result in over $8 million in lost city revenue.

Cities need to make sure their local legislators are aware of the challenges that this bill could create for city-owned utilities.