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Sub. H. B. No. 92 RH
As Passed by the House
136th
General Assembly
Regular
Session
Sub. H. B. No. 92
2025-2026
Representatives Johnson, McClain
Cosponsors: Representatives
Claggett, Dean, Ray, Fowler Arthur, Schmidt, Barhorst, Click,
Daniels, Deeter, Demetriou, Fischer, Gross, Hiner, King, Lear,
Lorenz, Mathews, A., Plummer, Robb Blasdel, Rogers, Thomas, D.,
Williams, Willis
To
amend sections 729.49, 735.29, and 743.04 and to enact sections
743.51, 743.52, 743.53,
and
743.54
of the Revised Code
regarding
unpaid municipal utility services.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section
1.
That
sections 729.49, 735.29, and 743.04 be amended and sections 743.51,
743.52, 743.53,
and
743.54
of the Revised Code be enacted to read as follows:
Sec.
729.49.
(A)
The
legislative authority of a municipal corporation which has installed
or is installing sewerage, a system of sewerage, sewage pumping
works, or sewage treatment or disposal works for public use, may, by
ordinance, establish just and equitable rates or charges of rents to
be paid to the municipal corporation for the use of such services, by
every person, firm, or corporation whose premises are served by a
connection thereof. Such charges shall constitute a lien upon the
property served by such connection and if not paid when due shall be
collected in the same manner as other municipal corporation taxes.
The legislative authority may change such rates or charges from time
to time as is deemed advisable. The legislative authority of a
municipal corporation operating under a charter may establish such
schedule of rates and provide for its administration by designating
the department or officer to be charged with the enforcement of
sections 729.49 to 729.52, inclusive, of the Revised Code.
(B)
The legislative authority of a municipal corporation shall not
certify to the county auditor for placement upon the tax list and
duplicate and the county auditor shall not place upon the tax list
and duplicate as a charge against the property the amount of any
unpaid sewerage rates or charges if either of the following apply:
(1)
The unpaid rates or charges have arisen pursuant to a service
contract made with a tenant, as defined in section 5321.01 of the
Revised Code.
(2)
The property served by the connection is not occupied by the property
owner.
Sec.
735.29.
The
board of trustees of public affairs appointed under section 735.28 of
the Revised Code shall manage, conduct, and control the waterworks,
electric light plants, artificial or natural gas plants, or other
similar public utilities, furnish supplies of water, electricity, or
gas, collect all water, electric, and gas rents or charges, and
appoint necessary officers, employees, and agents.
The
board may make such bylaws and rules as it determines to be necessary
for the safe, economical, and efficient management and protection of
such works, plants, and public utilities. These bylaws and rules,
when not repugnant to municipal ordinances or to the constitution or
laws of this state, shall have the same validity as ordinances.
For
the purpose of paying the expenses of conducting and managing such
waterworks, plants, and public utilities or of making necessary
additions thereto and extensions and repairs thereon, the board may
assess a water rent or charge, or a light, power, gas, or utility
rent, of sufficient amount, and in such manner as it determines to be
most equitable, upon all tenements and premises supplied therewith.
When such rents, except water rents and charges, are not paid when
due, the board may certify them to the county auditor to be placed on
the duplicate and collected as other village taxes, or it may collect
them by actions at law in the name of the village. When water rents
or charges are not paid when due, the board may do either or both of
the following:
(A)
Certify them, together with any penalties, to the county auditor. The
county auditor shall place the certified amount on the real property
tax list and duplicate against the property served by the connection
if
he
the
auditor
also receives from the board additional certification that the unpaid
rents or charges have arisen pursuant to a service contract made
directly with an owner who occupies the property served.
The
amount placed on the tax list and duplicate shall be a lien on the
property served from the date placed on the list and duplicate and
shall be collected in the same manner as other taxes, except that,
notwithstanding section 323.15 of the Revised Code, a county
treasurer shall accept a payment in such amount when separately
tendered as payment for the full amount of such unpaid water rents or
charges and associated penalties. The lien shall be released
immediately upon payment in full of the certified amount. Any amounts
collected by the county treasurer under this division shall be placed
for immediate distribution to the village, in the appropriate
distinct fund established for water rents and charges.
The
board shall not certify to the county auditor for placement upon the
tax list and duplicate and the county auditor shall not place upon
the tax list and duplicate as a charge against the property the
amount of any unpaid water rents or charges together with any
penalties as described in division (A) of this section if either of
the following apply:
(1)
The unpaid rents or charges have arisen pursuant to a service
contract made with a tenant, as defined in section 5321.01 of the
Revised Code.
(2)
The property served by the connection is not occupied by the property
owner.
(B)
Collect them by actions at law in the name of the village from an
owner, tenant, or other person who is liable to pay the rents or
charges.
The
board shall have the same powers and perform the same duties as are
provided in sections 743.01, 743.05 to 743.07, 743.10, 743.11,
743.18, 743.24, and 735.05 to 735.09 of the Revised Code, and all
powers and duties relating to waterworks in any of such sections
shall extend to and include electric light, power, and gas plants,
and such other similar public utilities, and such board shall have
such other duties as are prescribed by law or ordinance not
inconsistent herewith.
Each
board that assesses water rents or charges shall determine the actual
amount of rents due based upon an actual reading of each customer's
meter at least once in each three-month period, and at least
quarterly the board shall render a bill for the actual amount shown
by the meter reading to be due, except estimated bills may be
rendered if access to a customer's meter was unobtainable for a
timely reading. Each board that assesses water rents or charges shall
establish procedures providing fair and reasonable opportunity for
resolution of billing disputes.
When
property to which water service is provided is about to be sold, any
party to the sale or
his
any
party's
agent may request the board to read the meter at that property and to
render within ten days following the date on which the request is
made, a final bill for all outstanding rents and charges for water
service. Such a request shall be made at least fourteen days prior to
the transfer of the title of such property.
At
any time prior to a certification under division (A) of this section,
the board shall accept any partial payment of unpaid water rents or
charges, in the amount of ten dollars or more.
Sec.
743.04.
(A)
For the purpose of paying the expenses of conducting and managing the
waterworks of a municipal corporation, including operating expenses
and the costs of permanent improvements, the director of public
service or any other city official or body authorized by charter may
assess and collect a water rent or charge of sufficient amount and in
such manner as the director, other official, or body determines to be
most equitable from all tenements and premises supplied with water.
(1)
When water rents or charges are not paid when due, the director or
other official or body may do either or both of the following:
(a)
Certify them, together with any penalties, to the county auditor. The
county auditor shall place the certified amount on the real property
tax list and duplicate against the property served by the connection
if the auditor also receives from the director or other official or
body additional certification that the unpaid rents or charges have
arisen pursuant to a service contract made directly with an owner who
occupies the property served.
The
amount placed on the tax list and duplicate shall be a lien on the
property served from the date placed on the list and duplicate and
shall be collected in the same manner as other taxes, except that,
notwithstanding section 323.15 of the Revised Code, a county
treasurer shall accept a payment in such amount when separately
tendered as payment for the full amount of such unpaid water rents or
charges and associated penalties. The lien shall be released
immediately upon payment in full of the certified amount. Any amounts
collected by the county treasurer under this division shall be
immediately placed in the distinct fund established by section 743.06
of the Revised Code.
(b)
Collect them by actions at law, in the name of the city from an
owner, tenant, or other person who is liable to pay the rents or
charges.
(2)
The director or other official body shall not certify to the county
auditor for placement upon the tax list and duplicate and the county
auditor shall not place upon the tax list and duplicate as a charge
against the property the amount of any unpaid water rents or charges
together with any penalties as described in division (A)(1)(a) of
this section if any of the following apply:
(a)
The property served by the connection has been transferred or sold to
an electing subdivision as defined in section 5722.01 of the Revised
Code, regardless of whether the electing subdivision is still the
owner of the property, and the unpaid water rents or charges together
with any penalties have arisen from a period of time prior to the
transfer or confirmation of sale to the electing subdivision
;
.
(b)
The property served by the connection has been sold to a purchaser at
sheriff's sale or auditor's sale, the unpaid water rents or charges
together with any penalties have arisen from a period of time prior
to the confirmation of sale, and the purchaser is not the owner of
record of the property immediately prior to the judgment of
foreclosure nor any of the following:
(i)
A member of that owner's immediate family;
(ii)
A person with a power of attorney appointed by that owner who
subsequently transfers the land to the owner;
(iii)
A sole proprietorship owned by that owner or a member of that owner's
immediate family;
(iv)
A partnership, trust, business trust, corporation, or association of
which the owner or a member of the owner's immediate family owns or
controls directly or indirectly more than fifty per cent.
(c)
The property served by the connection has been forfeited to this
state for delinquent taxes, unless the owner of record redeems the
property.
(d)
The unpaid rents or charges have arisen pursuant to a service
contract made with a tenant, as defined in section 5321.01 of the
Revised Code.
(e)
The property served by the connection is not occupied by the property
owner.
(3)
Upon valid written notice to the county auditor by any owner
possessing an ownership interest of record of the property or by an
electing subdivision previously in the chain of title of the property
that the unpaid water rents or charges together with any penalties
have been certified for placement or placed upon the tax list and
duplicate as a charge against the property in violation of division
(A)(2) of this section, the county auditor shall promptly remove such
charge from the tax duplicate. This written notice to the county
auditor shall include all of the following:
(a)
The parcel number of the property;
(b)
The common address of the property;
(c)
The date of the recording of the transfer of the property to the
owner or electing subdivision;
(d)
The charge allegedly placed in violation of division (A)(2) of this
section.
(4)
Each director or other official or body that assesses water rents or
charges shall determine the actual amount of rents due based upon an
actual reading of each customer's meter at least once in each
three-month period, and at least quarterly the director or other
official or body shall render a bill for the actual amount shown by
the meter reading to be due, except estimated bills may be rendered
if access to a customer's meter was unobtainable for a timely
reading. Each director or other official or body that assesses water
rents or charges shall establish procedures providing fair and
reasonable opportunity for resolution of billing disputes.
(5)
When property to which water service is provided is about to be sold,
any party to the sale or the agent of any such party may request the
director or other official or body to read the meter at that property
and to render within ten days following the date on which the request
is made, a final bill for all outstanding rents and charges for water
service. Such a request shall be made at least fourteen days prior to
the transfer of the title of such property.
(6)
At any time prior to a certification under division (A)(1)(a) of this
section, the director or other official or body shall accept any
partial payment of unpaid water rents or charges, in the amount of
ten dollars or more.
(B)(1)
When title to a parcel of land that is subject to any of the actions
described in division (A)(1) of this section is transferred to a
county land reutilization corporation, any lien placed on the parcel
under division (A)(1)(a) of this section shall be extinguished, and
the corporation shall not be held liable for unpaid rents or charges
in any collection action brought under division (A)(1)(b) of this
section, if the rents or charges certified under division (A)(1)(a)
of this section or subject to collection under division (A)(1)(b) of
this section were incurred before the date of the transfer to the
corporation and if the corporation did not incur the rents or
charges, regardless of whether the rents or charges were certified,
the lien was attached, or the action was brought before the date of
transfer. In such a case, the corporation and its successors in title
shall take title to the property free and clear of any such lien and
shall be immune from liability in any such collection action.
If
a county land reutilization corporation takes title to property
before any rents or charges have been certified or any lien has been
placed with respect to the property under division (A)(1) of this
section, the corporation shall be deemed a bona fide purchaser for
value without knowledge of such rents, charges, or lien, regardless
of whether the corporation had actual or constructive knowledge of
the rents, charges, or lien, and any such lien shall be void and
unenforceable against the corporation and its successors in title.
(2)
If a lien placed on a parcel is extinguished as provided in division
(B)(1) of this section, the municipal corporation may pursue the
remedy available under division (A)(1)(b) of this section to recoup
the rents and charges incurred with respect to the parcel from any
owner, tenant, or other person liable to pay such rents and charges.
Sec.
743.51.
As
used in sections 743.51 to 743.54 of the Revised Code:
(A)
"Landlord," "residential premises," and "tenant"
have the same meanings as in section 5321.01 of the Revised Code.
(B)
"Municipal utility service" means water, sewer, natural
gas, electric, or other utility service supplied by a municipal
corporation.
Sec.
743.52.
(A)
Division (B) of this section applies only if one or both of the
following are met:
(1)
The former tenant of a residential premises contracted for municipal
utility service at the residential premises with the municipal
corporation.
(2)
The municipal corporation provided municipal utility service to a
residential premises with the knowledge of the former tenant's name
and the period that the former tenant was provided the service.
(B)
Notwithstanding any provision of the Revised Code to the contrary, no
municipal corporation shall refuse or discontinue municipal utility
service to a landlord, present tenant, or prospective tenant at a
residential premises based on nonpayment for municipal utility
services by a former tenant of the residential premises.
Sec.
743.53.
Notwithstanding
any provision of the Revised Code to the contrary, a municipal
corporation may adopt an ordinance authorizing the municipal
corporation to withdraw and expend any security deposit collected by
the municipal corporation from any tenant for municipal utility
service for the nonpayment of municipal services by the tenant.
Sec.
743.54.
No
contract entered into between a municipal corporation and a landlord
may waive any provision of sections 743.51 to 743.54 of the Revised
Code.
Section
2.
That
existing sections 729.49, 735.29,
and
743.04
of the Revised Code are hereby repealed.