LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6030 NOTE PREPARED: Oct 28, 2024
BILL NUMBER: HB 1316 BILL AMENDED:
SUBJECT: Sewer and Storm Water Fees Incurred by Tenants.
FIRST AUTHOR: Rep. Smith V BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: Local
DEDICATED
FEDERAL
Summary of Legislation: This bill establishes billing procedures for municipal sewage or storm water user
fees assessed for real property that is occupied by someone other than the owner. The bill provides that a lien
does not attach for user fees assessed against real property occupied by someone other than the owner under
certain circumstances. It also requires the assessing entity to release certain liens and delinquent user fees
upon receipt of a verified demand in writing from the owner.
Effective Date: July 1, 2025.
Explanation of State Expenditures:
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues: Beginning in FY 2026, the bill provides that service shall be continued
or established in the name of the person occupying the property (instead of the property owner) for municipal
sewage and storm water services if the property owner submits a document indicating that the occupant of
the property is responsible for paying fees assessed.
If a property owner supplies a document indicating that the occupant of the property is responsible for paying
fees assessed, or other records or ordinances indicate this responsibility, a lien does not attach for user fees
assessed against the property. Regardless of whether occupant responsibility has been established,
municipalities and departments of storm water management must release liens on a non-owner occupied
property if the property owner submits a verified demand that states that delinquent user fees were not
incurred by the owner, and that the occupant has not paid the owner. User fees, penalties, and service charges
assessed against non-owner occupied property shall also be removed from the tax roll if the property owner
supplies a document indicating that the occupant of the property is responsible for paying fees assessed, other
records or ordinances indicate this responsibility, or the property owner files a verified demand.
HB 1316 1 Municipalities and departments of storm water management may see increased workload to implement these
new procedures.
The provisions that limit attachment of a lien and allow for release of certain liens and delinquent fees for
non-owner occupied property could decrease the collection of delinquent payments.
Additional Information - Under current law, the delinquent user fees, penalty, and service charges are
included in the property tax certified by the county treasurer to the county auditor for collection in the
manner that delinquent property tax is collected regardless of who occupies the property. [Some of the
procedures are different for a nonowner-occupied property, however.] The lien may be foreclosed to satisfy
the fees, penalties, and reasonable attorney’s fees in certain situations.
State Agencies Affected:
Local Agencies Affected: Counties; Municipalities
Information Sources:
Fiscal Analyst: Abdulrahman Abdulkadri, 317-234-9852.
HB 1316 2