H.B. 13 Municipal Services Fees and Political Subdivision Lien Amendments

What this bill does

The bill would let cities and towns place unpaid utility bills on a property as a lien, so the amount is added to that property's annual property tax bill. It would also cap the interest on those unpaid utility bills at the property tax rate, with a notice process before a lien is filed.

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Every vote

• 7 yes, 0 no, 5 absentHouse Political Subdivisions Committee: vote to change the bill · Jan 29, 2026Who voted how
• 6 yes, 1 no, 5 absentHouse Political Subdivisions Committee: vote to approve it · Jan 29, 2026Who voted how
• 32 yes, 39 no, 4 absentHouse vote, which failed · Feb 9, 2026Who voted how

Hearings and debates

• Jan 20, 2026 House floor debate▶ Watch
  Transcript (49 turns)

  1. Madam Reading Clerk1:27:59

     Madam Reading Clerk House Bill 13 Municipal Services, fees and Political Subdivision Lien Amendments by Representative Cutler, Representative Cutler.

  2. Rep. Paul A. Cutler1:28:13

     Mr. Speaker, this is a testament that things that die can live. Again. This bill, public subdivision liens, uh, due to lack of prioritization, died on the Senate floor, a tragic death. At the end of the session, the Interim Political Subdivisions Committee studied it again and brought it and recommended it unanimously. So, uh, last year, this was, uh, debated and refined significantly by stakeholders including the housing, uh, home Builders Association, who were very concerned about property rights. The, the league, the county's special districts. What is a public subdivision of a political subdivision lien? It's a tool that has been in the toolbox for some time that if, if somebody does not pay their utility bill for a certain period of time, two months, three months, four months, instead of sending that person to a private debt collector, which can ruin their credit, which can result in a foreclosure and a lawsuit, uh, there is a tool that the bill can simply be added onto the property tax bill at the end of the year. Many of the special service districts before they had water meters and could turn off water, would use this tool. Uh, generally, uh, they, they, there's about 3% of folks that are delinquent on utility bills, Mr. Speaker, and the average lien is, is a couple of hundred dollars at, at most when this happens. Uh, we added a, we narrowed the scope of this, uh, to make sure that there were protections because the power of a, of a, of a lien is, is something that should be taken very, very carefully. We, we limited any interest that could be charged down to the same rate as a property tax, which is seven to 10%. It was, it was 18%. So we lowered that. We made sure that municipalities could not charge interest and a fee, they could only charge a a one-time fee if they go this route for delinquent. And, uh, we believe this will improve the safety for utility workers. And most importantly, it will lower the cost for all taxpayers, because currently you as a taxpayer are paying the cost of those people who refuse to pay their utility bills. And this will allow, uh, will result in more utility bills getting collected more efficiently, uh, and safer. And that will lower the cost for all taxpayers. So that's why the political Subdivisions Committee recommended it unanimously. And the stakeholders involved, uh, uh, agreed to this limited, uh, power for municipalities. Thank you, Mr. Speaker. I

  3. Speaker (presiding)1:31:16

     Thank you Representative Cutler discussion to the bill Representative Christofferson.

  4. Rep. Kay J. Christofferson1:31:23

     Thank you, Mr. Speaker. Uh, would the sponsor yield to a series of questions?

  5. Rep. Paul A. Cutler1:31:27

     Representative Cutler, will you yield to a series of Questions? Happily, yes.

  6. Rep. Kay J. Christofferson1:31:30

     Representative Christofferson. Thank You. Uh, first of all, uh, what interest rate would you be charging?

  7. Rep. Paul A. Cutler1:31:38

     The, the interest rate is limited to what a, what is in state statute now, which is the, the max that a pro that can be attached to your property tax if you don't pay your property tax, which is between a maximum of seven to 10%. What what is anticipated is that municipalities who use this, if someone doesn't pay their bill, then they would have a one-time penalty of up to 8%. Or they can charge administrative costs, uh, I believe, which, which is ever less, but not more than it's anticipated. They would be the 8%, uh, penalty. So, so that 8% is just optional depending on the entity that's charging that. Correct. If they feel like there has been an, an administrative burden to try to collect this for months and months and months, uh, it's, it's generally accepted that it's fair to, if someone doesn't pay their bill and it costs a lot extra to collect that, then that, uh, eight extra 8% could be added onto the bill and, uh, and would help cave the cost of, of other taxpayers. And I would note that this is a much smaller amount than if it goes to collections. If it goes to collections, uh, they can charge more and the collections agency can also charge a fee. Could the penalty be less than 8%? It can be. And, and many of, some of the municipalities have, have, have said they would not charge a fee.

  8. Rep. Kay J. Christofferson1:33:16

     Okay. Thank you. I I, I'm just cautious because sometimes, uh, entities will use this to, uh, get money and make it easy and, and instead of just saying, we'll do what we have to do to cover our costs, sometimes they increase it and it's a way to get funds. So I just wanna, just wanna make sure that that's not gonna be abused.

  9. Rep. Paul A. Cutler1:33:38

     Thank you. Thank you for that concern. The statute today allows these political subdivision liens to charge up to 18% interest. We thought that was excessive, and so we lowered it and made it the same rate as what's in our property tax statute if you don't pay your property tax bill, which is, uh, up to 10%. Thank you, Mr. Speaker. Thank you, Representative Christofferson.

  10. Speaker (presiding)1:34:03

      Further, uh, discussions to the bill, Representative Thurston.

  11. Rep. Norman K Thurston1:34:08

      Thank you, Mr. Speaker of the sponsor yield a series of questions.

  12. Rep. Paul A. Cutler1:34:10

      Representative Cutler will yield to a series of questions. Yes, Yes. Representative Thurston.

  13. Rep. Norman K Thurston1:34:16

      Thank you. Uh, could you just explain to me, um, so a lot of utility bills are not accruing to the owner of the property. They're accruing, accruing to renters. So how, could you just explain to us how this would work? In the case that the delinquency is actually not the owner of the property, but it is a renter, Mr. Speaker, that is an excellent question. My understanding is that in our state law, ultimately the property owner has responsibility for, uh, bills, utilities. For that property, it can be put in a renter's name and with the expectation and agreement between the landlord and the renter that they will pay that bill. But ultimately, the property owner is responsible for utilities for that property. My understanding is in this case, if the renter does, does not pay their utility bill, the, they would be notified. Uh, there's mechanism for them to be notified multiple times. If they still refuse to pay, then it would be added to the property owner's responsibility. Okay. So just help me think through this case then. So suppose a renter signs a year long lease, they go down to Provost City and they say, I need to have the utilities put in my name 'cause that's what the owner asked me to do. And then they don't pay for however long run up $500,000 bill, and then they just walk away, just disappear. Don't pay their rent, don't pay their utilities, just walk away. Now the owner of the property not only has to deal with the collection of the rent, they also have to deal with the collection of the utility, because if they don't, that will be so that will be on the lien, could be on the lien on the property.

  14. Rep. Paul A. Cutler1:35:58

      Thank you, Mr. Speaker. My understanding is that is the scenario today as well. Uh, that if, if the renter does not pay their bill, it ultimately the property owner is notified today, even if it's in the renter's name, that that's a long-term obligation to the property owner.

  15. Rep. Norman K Thurston1:36:18

      Okay, thanks Mr. Speaker. So, so my understanding is this is no change in policy from that perspective.

  16. Speaker (presiding)1:36:22

      Thank you. Thank you, Representative Thurston. Further discussion to the bill Representative Peck.

  17. Rep. Nicholeen P. Peck1:36:30

      Woo. Goodness. New microphone. Thank you, Mr. Speaker. Would the sponsor yield to a series of questions? Yes. Representative, Will you yield to a series of questions?

  18. Rep. Paul A. Cutler1:36:40

      Yes, Representative Peck.

  19. Rep. Nicholeen P. Peck1:36:41

      Okay, thank you. So, um, usually when somebody doesn't pay a bill for a service or something like that, then you remove the service. So you like, shut off the water and you attach it to the person's name, not to another piece of their property. So you would, um, you would attach it to their credit or something like that. Why is it that we're feeling that there is a need to change that normal pattern with this particular bill?

  20. Rep. Paul A. Cutler1:37:11

      Thank you for the question representative. Uh, my understanding is for utilities, those utilities are attached to the property. Uh, so the, the, if, if, if somebody leaves or sells the property, that that is attached to the property, water, sewer, storm drain. These city utilities are, my understanding is they're attached to the property, but this, this can be a better mechanism because when it's, uh, if you turn a person over to a collections agency, than that shows up on their personal credit, uh, and can, can ruin their personal credit.

  21. Rep. Nicholeen P. Peck1:37:49

      Um, o okay. And then my next question is, uh, Mr. Speaker, is there any other place in code where we have special districts? I noticed it said special districts in there. Is there any other place in code where special districts can put a lien on a person's property? Or would this be the first time that that's occurring?

  22. Rep. Paul A. Cutler1:38:09

      Thank you for the question. This is already a power that special districts have and use regularly. As mentioned, uh, almost all the special districts in the state use this. They find it, uh, very efficient, very friendly. People like it because it, it, uh, it shows up on their property tax bills. So at the end of the year, if they've forgotten something, it's there. Uh, and it's an efficient way to take care of this, of a utility. So it's being used today by, uh, in thousands of cases.

  23. Rep. Nicholeen P. Peck1:38:40

      Okay, thank you. So then, I guess finally my question would be, um, so it sounds like a lot of these pieces are already in place from what you're talking about, and I appreciate all the research that you've shared. Um, so what, what exactly is the substantive change if they're already able to do this?

  24. Rep. Paul A. Cutler1:38:57

      So the substantive change, thank you for that clarification. There are, uh, cities and especially there's a, some cities in Salt Lake County that do not have their own water companies. For example, the city of Millcreek, their water is provided by another service. So if someone doesn't pay their sewer bill or their storm drain utility, they can't turn off. They have no way to enforce that. And so this is a way that instead of using a collection agency every time, uh, that, that those bills could be, uh, taken care of through this process, just like the special service districts are doing.

  25. Rep. Nicholeen P. Peck1:39:32

      So is this more for, um, convenience, for billing purposes, to not have to contract with collections agencies? Yeah,

  26. Rep. Paul A. Cutler1:39:39

      It, it is a no. There, there, they, there's a very low collection rate when you go to a collection agency. So the purpose for this is so that other taxpayers don't have to pick up the bill for deadbeats and delinquents. Uh, yes, they can turn it over to collection agencies and have them pursue it, and they get a very low, uh, a relatively low collection rate. Uh, this process has worked very well and, uh, it's a, it's a more efficient, uh, effective way and doesn't ruin people's credit. Uh, no foreclosure, uh, fewer lawsuits, uh, and, and a lower cost for taxpayers in those municipalities.

  27. Speaker (presiding)1:40:18

      Thank you. Thank you, Representative Peck. Further discussion to the bill Representative Dunnigan.

  28. Rep. James A. Dunnigan1:40:26

      Thank you, Mr. Thank you, Mr. Speaker. So I stand in support of this bill. It's, it's a good bill. As a landlord, if you have a tenant that's not paying their water bill, the water company's gonna attach that. If the tenant leaves and they haven't paid, it's already gonna be attached on your property tax bill. They can do it as a special district. So this is already being done in numerous places. But what if the city doesn't have, doesn't contract or doesn't have a special district to do the water and sewer. They don't have that same ability to attach this to the property tax. It's a good way to make sure it gets paid, but mainly it's a, a good way to make sure that everybody else doesn't get saddled with the bill, to use the technical phrase that he sponsor used a deadbeat. And so it's already being done in numerous places. It's not changing that much. It's just given the municipalities, uh, uh, same tool that many already have.

  29. Speaker (presiding)1:41:22

      Thank you Representative Dunn, again, further discussion to the bill. Representative Schier.

  30. Unknown speaker (addressed as Representative Schier)1:41:26speaker not certain

      Thank you, Mr. Speaker. Will the sponsor yield to a question?

  31. Speaker (presiding)1:41:29

      Representative Keller, will you yield

  32. Rep. Paul A. Cutler1:41:30

      to a question? Absolutely, yes, representative.

  33. Unknown speaker (addressed as Representative Schier)1:41:32speaker not certain

      Thank you. I would like to know what the form of notification is and whether it is both the owner and the renter that are notified and how many times.

  34. Rep. Paul A. Cutler1:41:50

      Thank you for the question. So on line 1 38, uh, the customer of the past due service fee must be, they have to notify them nowhere. They give them at least 60 days after, after they've been notified of the past due service fee, uh, notifying the, uh, so they, they, they have their regular period, then they notify them after 60 days, and then they notify them again that, uh, no earlier than 10 days after that. That if you don't pay this, this is usually gonna be the fourth or fifth or sixth notification because it's been two months than another 60 days. Uh, uh, then they let them know, okay, we're gonna sub, uh, file a political subdivision lien if you don't pay. This does not specify how they are, uh, notified. So typically the same way you would get notified of a bill by your municipality or service district is my understanding.

  35. Unknown speaker (addressed as Representative Schier)1:42:58speaker not certain

      I'm sorry. Was it the owner and the renter? My understanding is the, they notify the customer. Uh, I can't, uh, and maybe some of you who are landlords, uh, can, can speak to this. I'm not clear. When, when they, uh, assign it to the landlord instead of the, uh, renter if it, if they have the bill in that name.

  36. Speaker (presiding)1:43:25

      Thank you. Thank you representative ch further discussion to the bill. Representative Ivory

  37. Rep. Ken Ivory1:43:32

      Thank Mr. Speaker. Will the sponsor yield to potentially a series of questions? Representative Cutler, will you continue to yield to a series of questions? I,

  38. Rep. Paul A. Cutler1:43:40

      I, I will yield and tell Mr. Speaker until you give up. Yes.

  39. Rep. Ken Ivory1:43:43

      Sponsors is indeed a good sport. We got red meat on the first day of the session. Uh, couple questions that I have. Mr. Speaker, uh, potentially in filing a lien, there can be legal costs and filing a lien. You have to then record the lien with the recorder, and those are additional costs, potentially attorney's fees to prepare the lien, uh, attorney's fees or other costs and costs to release the lien. Is that added into this with the 8% cap? My understanding is that is not, that, that is the purpose of that 8%. Uh, and my understanding is that service districts and municipalities have the ability to do this. They typically do this in batches. Uh, some of the service districts is batches of hundreds, uh, of notices, and it's, uh, a very low cost way. And then I guess enforcing the liens. So when you have a lien, you've got one of the bundles of sticks to a property to get anything out of it, you have to then enforce the lien. And that's a legal action that is typically then a court action to enforce the lien. I don't, I don't see that envisioned in here anywhere. How, how are those costs dealt with and what happens then on enforcement of the lien and who bears those costs?

  40. Rep. Paul A. Cutler1:45:12

      Uh, thank you for the question. My understanding is that currently there, I I'm not aware of any enforcement actions that the special services districts which have this power have been any extraordinary efforts they have been making. Typically, the these are paid off when property taxes are paid off, and they're at a very high rate. Uh, there, there could be some cases where they, uh, someone is, is delinquent after this case. But I haven't heard of any enforcement. The the mess, the information I got is that they have never foreclosed on a property because of this, because of a political subdivision lien. It's not, it's usually the banks and, uh, that are concerned about this, that this is not a tool they have used to foreclose on anyone's property ever.

  41. Rep. Ken Ivory1:45:59

      I, I understand the, the nature of the answer, Mr. Speaker, but the nature of putting a lien on real property is so that you've got an interest in that bundle of sticks, and the way you get your interest out of that lien is to execute. Otherwise, there's, you know, if it's just a matter of, you know, you pay off debts, and debts get paid off, then why have the lien? Because you have the lien, because you're ostensibly gonna execute on the lien. And, and then I, I guess my, the last question I have is, um, what if the lien is wrongfully put on the property? Because that happens. And when you've got a wrongful lie, those situations could be very serious. I mean, even, even, uh, uh, thwarting sales and the timing of sales and having to clear a lien, and now you're having to go through a special district to try to clear a lien that was put on for a utility fee that could hold up a sale of a property that someone has of an apartment complex. Uh, could you help me understand how that might be contemplated in this, uh, proposed language?

  42. Rep. Paul A. Cutler1:47:11

      Mr. Speaker? My understanding is these are very small amounts, hundreds of dollars. Uh, and this is not shown to be a problem. If there's a problem with the liens, the service district or municipality, uh, have the ability to remove those. And when they, when the bill is paid, the bill, the the law requires them to be removed immediately. Uh, typically there, there are some cases where they have gone years, uh, but when the property is sold, it's paid off just like the property taxes are paid off when a property is sold and the issues are, have been resolved. Um, so I I I recognize that theoretically there could be a problem here. I don't see a problem, uh, if, if people have suggestions on a better way to do this. It's, it's an efficient tool that's been used for many, uh, many years. Happy to take suggestions.

  43. Speaker (presiding)1:48:05

      Thank you, Representative Ivory. Further discussion to the bill. Representative Teuscher.

  44. Rep. Jordan D. Teuscher1:48:10

      Thank you, Mr. Speaker. I move to circle.

  45. Speaker (presiding)1:48:12

      Thank you representative motions in order. Would like to speak to it?

  46. Rep. Jordan D. Teuscher1:48:15

      Yeah, I think there's some, some definite questions that Bo, that body has for this bill, and I'd like to give the good representative a chance to get those questions answered and, and, uh, and, uh, try to resolve some of the issues that are there.

  47. Speaker (presiding)1:48:27

      Thank you. Representative Chevrier, Representative Cutler, on the motion to circle

  48. Rep. Paul A. Cutler1:48:31

      I'd. I'd appreciate that. I'd appreciate the opportunity to resolve any concerns, um, and help people understand the process that's being used to and how it's saving taxpayers money.

  49. Speaker (presiding)1:48:43

      Thank you. Representative Cutler one place. The motion, the motion before is the House circle, HB 13. All in favor say aye. A. Any opposed rule That motion passes. The bill's been circled. Okay, representatives, that will conclude our floor time for this morning. So with that, we'll go to Representative Hawkins for announcement from the third house, Representative Hawkins.

• Jan 29, 2026 House Political Subdivisions Committee▶ Watch
  Transcript (31 turns)

  1. Chair Dunnigan (presiding)1:31:51

     Representative Cutler, uh, welcome. Thank you for coming. So now we'll hear item number three, house bill 13 municipal service fees and political subdivision lien amendments. After you catch your breath representative, go ahead.

  2. Rep. Paul A. Cutler1:32:13

     Thank you, Mr. Chairman. I appreciate you, uh, accommodating me. If I was doing my best to save a bill from dying a sad death, uh, over in, uh, government operations, I think we saved it. I'm here to talk to you today. This is the, let's see, we've been two interim committees. This will be the second house committee plus the Senate committee that this bill has been presented in the last two years. Uh, and with some help, we've refined it and, and made it a better bill, I believe. Still catching my breath. I have a handout that, uh, if the chair will permit, I'd like to provide the, uh, for, for those who are new to this committee, a lien is, can be filed against a, a property for an un for an unpaid debt. Currently, we have also a different, there are different types of liens. What we're talking about today is called a political subdivision lien. And it's a very useful tool that's been granted to, uh, special service districts and can be used in some cases if a, uh, when a customer, a property owner, does not pay their utility bill for a certain amount of time, it's, it's overdue to a certain point, a political subdivision lien can be applied. And what that does is it puts the bill af after some notification, it puts it on the property tax bill and, uh, it is paid. When the property taxes are, are due, people typically pay that, uh, bill because people are very good about paying their property taxes for the most part. So I, I want to just share some of the benefits of this, uh, process that's, that's used by many people today. And then I'll explain what's different from last time. The, this improves. So some people say, well, couldn't you just go to the property and turn off their water? In some cases, yes, you can turn off the water if it's a sewer, pretty hard to turn off the sewer water runs downhill. Right? Very hard to turn off storm drain. Uh, storm drain is very beneficial, but, uh, you can't turn it off. The, uh, these are some points from the Grainger Hunter, uh, improvement District, uh, that who's, who uses this process is they use it for safe. Uh, it increases, uh, in part by safety concerns, it has improved their employee safety. Field technicians were experiencing aggressive behavior and verbal abuse, and sometimes pets would be put on them. And in some case, well, I believe in one case there was even a gun brandish, which is of course is against the law when someone came to try to physically turn off a, um, property or turn off a service. Uh, this actually, this process protects vulnerable residents because it ensures continuous water access for elderly customers. And those in financial need, they may have a short term financial need. And we heard today from water, uh, many water companies to turn off to send a technician out to turn off your water and turn it back on, uh, costs at least $50. And so that's an additional financial burden. And, uh, obviously going without water is a significant public health issue. Um, as well, this way the under this, the bill goes with the underlying property owner and eventually gets paid. It's much more efficient. Uh, it, uh, it works much better. Their, their policy today, which is similar to what we would expect municipalities to do, is they only file it when the bill stacks up. Uh, their policy, particular policy is $200 and 90 days past due. Once that starts, once you get to that point, then you start a notification process. Uh, you notify them, Hey, if you don't pay your bill, then we're gonna put, uh, put a lien on your, uh, on your property. Uh, and they notify them multiple times. They, in this case, they do mail, call, email, text, and a courtesy door hanger. The bill doesn't necessarily require all those, but those are good, good practice. The, uh, the, the change that we have made in substitute one is there was a concern expressed on the floor, what if there is a renter in a property that is not paying their bills and the landlord doesn't know about it? For most, for water districts and sewer districts, my understanding is the law says the responsibility goes with the underlying property owner. Even if you have a renter and you want to reassign the bill to the renter, the underlying property owner has responsibility and they must sign an agreement. If they want the bill to go to the renter for storm drain, there's no such legal requirement. And, um, the change that we've made, as we've said, if you allow this, which is currently used for special service districts, if you allow municipalities to use this same process, the municipality must notify the customer who's receiving the bill, plus the underlying property owner, which I think is good policy in practice. They seem to be, most of the people who are using this are doing this today. But it's good practice and we should put it, uh, in place. Um, I think that, uh, let me see if there's, uh, anything else that I wanted to quickly cover on that. The, I think that concludes the, my presentation.

  3. Chair Dunnigan (presiding)1:38:19

     Thank you Representative Cutler to the committee for clarifying questions. I see none. Let's go to the public. Who would like to speak to this come forward please.

  4. Jared Tingey, Utah League of Cities and Towns1:38:36

     Uh, Jared Tingey with a League of Cities and Towns. Personally, I think, uh, Representative Cutler should have used an e-bike, But, Um, you would've had your breath. But, uh, we really appreciate, uh, Representative Cutler for, uh, running this bill. And, uh, there have been, there are a lot of cities that run into this issue where there's services that cannot be cut off. Um, and this allows an opportunity to say so that, that the, um, the fees that need to be collected are not then redistributed to those that are actually paying, but that those who use the service, uh, uh, pay for the service. So thank you very much and, uh, urge the committee to pass out this bill.

  5. Chair Dunnigan (presiding)1:39:25

     Thank you, sir. Anyone else from the public? Come forward please.

  6. Gloria Vindas, property manager1:39:39

     Hi, Gloria Venus. I just had some, I'm just in here listening and learning. So being in property management as a career for over 22 years and dealing with different things, I'm wondering why, um, we're allowing special districts to have an additional power structure when it comes to property owners, renters. Um, I think that's concerning. Um, and then recently, I, you know, being in, in Utah, I haven't been here more than about six years now. Um, the utilities here in Utah have gone through the roof. Um, and it's pretty hard, um, running for city council a few years ago here at the constituents and knowing that the cost of living has gone up so much, why would be giving additional power or, I just think that this creates a unnecessary burden to what the legislature this year is trying to do is lower the cost of living and then giving special districts power. It just is kind of confusing. So I'd like some clarification on that as a constituent.

  7. Chair Dunnigan (presiding)1:40:53

     Okay. Thank you for your comments. Anyone else from the public, we'll close the public comment period and come back to the Committee for action. Representative Ward.

  8. Rep. Raymond P. Ward1:41:07

     Thank you Mr. Chair. Um, I'd like to move first substitute that is on the system in Representative Cutler's name.

  9. Chair Dunnigan (presiding)1:41:15

     Thank you. The motion is to adopt first substitute house bill 13. Do you wanna speak to that representative board?

  10. Unknown speaker1:41:22speaker not certain

      Well, I mean, this bill kind of went on a little extra detour that the sponsor wasn't counting on. Have, uh, having had a good discussion in the interim, but then questions that came up on the floor. So I appreciate his work to go back and c come to our committee as the venue for resolving those concerns To the committee.

  11. Chair Dunnigan (presiding)1:41:39

      So the motion is to adopt, first substitute to the committee.

  12. Chair Dunnigan (presiding)1:41:44speaker not certain

      Do you want to comment on Irv Sam Cutler? I, I

  13. Rep. Paul A. Cutler1:41:46

      Appreciate, uh, I think the first substitute is an improvement that The policy Thank you Representative Ward for waive, waive waiving.

  14. Chair Dunnigan (presiding)1:41:53

      Okay. The motion is to adopt first substitute house bill 13. All in favor say aye. Aye. Opposed? Say no. Motion carries unanimously to the bill rep. Sam Ward.

  15. Rep. Raymond P. Ward1:42:12

      Uh, thank you. Uh, Mr. Chair, I'd like to move that we favorably recommend House Bill 13. First substitute.

  16. Chair Dunnigan (presiding)1:42:18speaker not certain

      The motion is to favorably recommend first substitute house bill 13. Discussion to the motion. Uh, Representative Fati Manu Certainly. Motion.

  17. Unknown speaker1:42:32speaker not certain

      Can I speak to the,

  18. Chair Dunnigan (presiding)1:42:34

      You certainly may. Representative Ward, go ahead.

  19. Rep. Raymond P. Ward1:42:37

      Thank you. Um, I, I guess my, my speech really is, um, to request that if the PON to the sponsor that in, in his sum, if he would speak to the question that was brought up to me, I don't, um, I see this bill not as an, an additional burden, but as a fair sharing of a burden that is already there. But I would also be curious to have the sponsor answer the question that was asked by the commenter in the sum

  20. Chair Dunnigan (presiding)1:43:01

      Thank you Representative Ward. Representative,

  21. Rep. Paul A. Cutler1:43:05

      Uh, Representative Ward read my mind. That was precisely my request To, to the committee. So I'll make a comment. Uh, representative of Keller can add to it. Special districts already have the power to levy an unpaid bill, uh, or to pursue tax or a lien. They already have the ability to put a lien on property tax for unpaid services. So that's, this bill is not new in that regard, does some other things, but in that regard, it's not new.

  22. Chair Dunnigan (presiding)1:43:35

      So no further comments. So we'll go to Representative Cutler for summation.

  23. Rep. Paul A. Cutler1:43:40

      Thank you. I was not here when the legislature, uh, uh, came up with this type of lien for political subdivision lien, but I believe it's a more efficient way to collect debts. Uh, when, when we think about a utility, the cost of providing, say, storm drain coverage in an area or a water system, or even a water system, you're talking about very high fixed costs and very typically very low incremental costs. The costs to run that system are virtually the same, whether one person opts out or not. So what happens if, if you have someone who says, well, I don't wanna pay this. I don't wanna pay my water bill, I don't wanna pay my sewer bill. I'm mad that it costs so much to provide clean water, or, uh, remove the sewer from my neighborhood, I'm just not gonna pay it. Those costs still exists. Those costs are paid by every other pack taxpayer who pays their bills. So everyone else's bills go up if someone doesn't pay their bill. What happens today, if, if, if they don't use this process is you turn someone who doesn't pay their bills over to a bill collector. The bill collector can ruin that person's credit. They can, if they don't collect the bill, the bill collector takes a portion of that bill. And instead of using that towards keeping the cost low for everyone, they, they make a profit off that the, so there's, there's no, uh, cost savings By not collecting a deadbeats bill who's not paying their bill. It's just raising everybody else's taxes or utility costs if, if everyone doesn't pay their share of it. So this is a more efficient process. It costs less to collect a debt than it does if you go to foreclosure. It's more compassionate. It doesn't ruin people's credits. And the history of the use of this, my understanding is they've never done a foreclosure based on a utility lien. There is no intent to ever do that. It's just a more cost effective, efficient, better way to, to collect Long overdue debts. Thank you, Representative Cutler.

  24. Chair Dunnigan (presiding)1:45:57

      Representative Ward for summation.

  25. Rep. Raymond P. Ward1:45:59

      I'll waive Summation is waived.

  26. Chair Dunnigan (presiding)1:46:01

      The motion is to recommend favorably for substitute house bill 13. All in favor say aye. Aye. Aye. Opposed? No. Motion carries unanimously. Thank you. Thank you. Representative Cutler.

  27. Rep. Paul A. Cutler1:46:12speaker not certain

      Fifth time's a charm. Sorry, Did you say aye? I did. I thought we were talking about just, um, I mean, accepting the substitute. Uh, oh. We've, thank you.

  28. Chair Dunnigan (presiding)1:46:24

      We adopted the substitute previously, so you cast a a nay vote. Nay vote. Okay. So six to one. In favor.

  29. Chair Dunnigan (presiding)1:46:32

      Thank you rep, Representative Cutler Thank

  30. Rep. Paul A. Cutler1:46:34

      You Committee.

  31. Chair Dunnigan (presiding)1:46:36

      That concludes our business for today. Thank you for your work Representative Ward. A motion to adjourn Representative Ward moves to adjourn. All in favor say aye. Aye. Aye. Opposed? Say no Motion. Carrie. We stand.

• Feb 9, 2026 House floor debate▶ Watch
  Transcript (14 turns)

  1. Clerk (reading)35:54

     Madam Reading, clerk First substitute House bill 13 Municipal services fees and political subdivision lien amendments by Representative Cutler. This bill Was, oh, sorry, go ahead. Madam. Meeting Clerk. Pardon? Political subdivisions with the vote. 6 1 5.

  2. Speaker (presiding)36:14

     Thank you Madam Reading. Clerk Representative Cutler.

  3. Rep. Paul A. Cutler36:17

     Thank you Mr. Speaker. I appreciate the opportunity to present this bill again, this time with improvements. New and improved. Uh, currently if, uh, an an individual or a private contractor who's done work on a property can file a lien against a property for an unpaid bill after a certain period of delinquency, a municipality or a special service district can also do that if someone doesn't pay their bill. This is a, a standard fundamental thing that we have in our state. What this proposes is a more efficient way to collect payment from somebody who has not paid their bill for a a a period of time. And that is a, uh, the same me mechanism that special services districts have, where if someone does not pay their bill for a certain amount of time and they're notified three or four times about this, the, the bill can be, uh, the delinquent amount can be placed as a lien and it's put on their property tax bill. The individual can choose to pay that or they can not choose to pay that. Uh, if they don't choose to pay that, my understanding is it just continues to sit there like any other lien. But experience has shown that 90 a, a very high percentage of people pay that. And it's a very low cost way to, for people to collect their, uh, a, a delinquent bill. So the, there are municipalities that have utilities that cannot be shut off, that are, that would like to use this same low cost way to collect a debt. We have added additional protections, uh, such as limits on the amount of, uh, fees or interest rates that can be charged. And that not just the customer or the end user, but also the underlying property owner must be notified if someone is delinquent on their bills. Uh, I think this is a big improvement. It saves taxpayers money, it lowers the cost for everyone else who is paying their bills. Uh, it passed, uh, the, the house before and I'd appreciate your vote in, in passing the house again. Thank you.

  4. Speaker (presiding)38:30

     Thank you, representative Keller. Discussion to the bill Representative Christofferson.

  5. Rep. Kay J. Christofferson38:37

     Thank you, Mr. Speaker. Uh, I appreciate in the substitute that some things were changed to, to make it a little bit better, but I still have a concern about, uh, the fact that this is shifting the burden that someone should pay their own bill. It's shifting it from the city to the landlord in certain cases. So if you don't own the property and you have a render in your home and they don't pay the bill, then it's saying that the owner of the property has to pay the bill. And I think that's just shifting that responsibility away from the city to the homeowner. In that case. I was hoping that maybe they could make an exception in this bill to, uh, pull out the fact that if you, you know, that you could put a lien on a home if the resident is the owner, but if you're not the owner, it, uh, it's, I think it's unfair for the, for the landlord. So, uh, anyway, I'm, I'm gonna vote against this bill.

  6. Speaker (presiding)39:48

     Thank you Representative Christofferson. Further discussion to the bill Representative MacPherson.

  7. Rep. Matt MacPherson39:52

     Thank you Mr. Speaker with the sponsor Yield to a question. Representative Keller, will you yield?

  8. Rep. Paul A. Cutler39:57

     I'd be happy to, Yes. Representative MacPherson,

  9. Rep. Matt MacPherson39:59

     Is there anything in this that sets a, um, for lack of a better term, I guess a statute of limitations that doesn't allow a municipality to back charge for 10-year-old, 15-year-old fees and then, uh, attach 'em to a lien?

  10. Rep. Paul A. Cutler40:15

      Yes, Mr. Speaker, thank you for that. And thanks to my, uh, good neighbor for reminding me that the statute of limitations, I believe is four years. So if a city went back or a special service district and tried to collect a past debt that is more than four years old, they would, they would not be able to do that is my understanding.

  11. Rep. Matt MacPherson40:35

      Thank you, Mr. Speaker, Which is good policy.

  12. Speaker (presiding)40:40

      Thank you, Representative MacPherson. Further discussion to the bill. Seeing none back chair of m Cutler for summation.

  13. Rep. Paul A. Cutler40:49

      I appreciate my colleagues' concerns about, uh, landlords versus tenants. This does not change existing law or policy on landlords or tenants. Is is my understanding. My understanding is current state law says that the landlord or is, is responsible for sewer and water regardless of whether the, uh, tenant pays that. And, and they have to get a approval to sign that off to the tenant. The law is not clear on storm drain, uh, utilities. I'll, I'll give him that. So there's no attempt to change that? No, no attempt to try to shift burden from one to another. It's just an attempt to make it a, a more efficient way to collect debts, which would save taxpayers money overall. And, uh, responsible citizens who pay their debts would not have to pay as much of the, the load for deadbeats who don't pay their bills. Thank you. Appreciate your support.

  14. Speaker (presiding)41:49

      Thank you. Representative Keller voting will now be open on first substitute HB 13. Seeing all present, having voted voting is now closed. First substitute HB 13 fails to pass this body with 32 yes votes. 39 votes 32 yes votes and 39 no votes and will be sent to staff for filing. Madam Reading Clerk