The new version would limit the certification of water service charges to amounts between $20 and $200 in the case of individually metered residential properties which are not owner occupied. The Substitute Bill has eliminated the requirement that water services be terminated prior to certification of the delinquent charges for residential rental situations. It has also eliminated all provisions which required service providers to give notice of tenant delinquency issues to the landlords.

At the hearing, one proponent offered testimony. Four witnesses, including Eric Luckage, representing CORD, offered opponent testimony. Nearly every comment from the Committee Members indicated a philosophical agreement with the landlords' position on this issue. Remarkably, it seems that the Committee Members simply believe that any uncollected water charges from delinquent tenants should be spread among all of the users of the system, rather than to the landlords. Despite repeated testimony from services providers and interested groups like CORD that the Bill is not in the best interests of the public, support for the Bill's concept continues.

During Eric Luckage's testimony, he reiterated that the CORD membership is opposed to any limits on the ability to certify delinquent water charges. Eric also pointed out that the dollar limit was unrealistic when water charges could surpass the $200.00 limit in mid billing cycle or when a leak would result in a bill exceeding $200.00. In those cases, even the most efficient billing system could not allow the district to recover all of the costs of even one invoice.

He also stressed that the Bill must be further amended to greater qualify the situations in which the certification limits apply. Specifically, the limits should not apply when the landlord is the party responsible for payment of the water bill. Committee Members seemed agreeable to making that change. Eric also seemed to persuade some members that an additional amendment was necessary to clarify that the county auditors must receive and accept the certification of delinquent charges at any time throughout the year. As some of you know, this has been a problem in certain counties. Certification at any time throughout the year is important. It allows the district to certify charges quickly, before any possible bankruptcy or sale of the property. Charges cannot be certified after the owner files bankruptcy or sells the property. Waiting too long to certify only increases the chance of missing the opportunity to certify at all. Committee Members' comments seemed to support that this was an administrative change which could probably be accepted.

Eric also stressed that providers have a difficult time accurately knowing whether a residential property is or is not owner occupied. He urged the Committee to consider a further amendment which would require the landlords to keep current evidence of rental status and owner information on file with the service providers to prove that the owner does not occupy the property. He expressed concern that, under the current proposal, any homeowner, not just landlords, could simply claim that they do not occupy the property and thereby limit the amount which could be certified to $200.00. Minimum charges which accrue while a rental property is unoccupied by anyone also should be collectible. Eric suggested the verification of a rental situation in order to close this loophole which permits potential abuse.

While additional hearings are promised, and at least a couple of the amendments proposed by Eric appear to be possible, the general tone of the hearing indicates that the Bill has significant support. However, new hearings have not been scheduled and even if the Bill passes the House, it still must navigate the Seante.

Nevertheless, we encourage districts to provide us with any data which would would prove a real cost, in terms of uncollectible fees, to your district and the other users on the system as a result of this Bill's language. We will share those results with the Committee. Please contact us if you have any questions or comments.

HB 62

This Bill would clarify that districts may offer senior discounts under certain conditions. CORD has taken a neutral stance on this Bill.

HB 436

Would authorize municipal and other political subdivision contracts for maintenance and repair of a water storage tank to be awarded without competitive bidding under specified conditions..

HB 422

Would create the Water Resources and Economic Development Study Committee to evaluate Ohio's water resources and recommend ways to use water as a mechanism for economic development.

HB 227

This Bill would authorize regional regional water and sewer districts to establish police departments.

If you need any additional information on these or any other Bill before the General Assembly, please contact us. Whether members are opposed to existing legislation or have an idea for needed legislation, we encourage you to contact us with opinions, concerns and suggestions. We look forward to hearing from you.