17B-1-904 - Collection of service fees.
17B-1-904. Collection of service fees.
(1) As used in this section:
(a) "Collection costs" means an amount, not to exceed $20, to reimburse a local districtfor expenses associated with its efforts to collect past due service fees from a customer.
(b) "Customer" means the owner of real property to which a local district has provided aservice for which the local district charges a service fee.
(c) "Damages" means an amount equal to the greater of:
(i) $100; and
(ii) triple the past due service fees.
(d) "Default date" means the date on which payment for service fees becomes past due.
(e) "Past due service fees" means service fees that on or after the default date have notbeen paid.
(f) "Prelitigation damages" means an amount that is equal to the greater of:
(i) $50; and
(ii) triple the past due service fees.
(g) "Service fee" means an amount charged by a local district to a customer for a service,including furnishing water, providing sewer service, and providing garbage collection service,that the district provides to the customer's property.
(2) A customer is liable to a local district for past due service fees and collection costs if:
(a) the customer has not paid service fees before the default date;
(b) the local district mails the customer notice as provided in Subsection (4); and
(c) the past due service fees remain unpaid 15 days after the local district has mailednotice.
(3) If a customer has not paid the local district the past due service fees and collectioncosts within 30 days after the local district mails notice, the local district may make an offer tothe customer that the local district will forego filing a civil action under Subsection (5) if thecustomer pays the local district an amount that:
(a) consists of the past due service fees, collection costs, prelitigation damages, and, ifthe local district retains an attorney to recover the past due service fees, a reasonable attorney feenot to exceed $50; and
(b) if the customer's property is residential, may not exceed $100.
(4) (a) Each notice under Subsection (2)(b) shall:
(i) be in writing;
(ii) be mailed to the customer by the United States mail, postage prepaid;
(iii) notify the customer that:
(A) if the past due service fees are not paid within 15 days after the day on which thelocal district mailed notice, the customer is liable for the past due service fees and collectioncosts; and
(B) the local district may file civil action if the customer does not pay to the local districtthe past due service fees and collection costs within 30 calendar days from the day on which thelocal district mailed notice; and
(iv) be in substantially the following form:
Date:_____________________________________
To: ______________________________________
Service address: ____________________________
Account or invoice number(s): _________________
Date(s) of service: ___________________________
Amount past due: ____________________________
You are hereby notified that water or sewer service fees (or both) owed by you are indefault. In accordance with Section 17B-1-902, Utah Code Annotated, if you do not pay the pastdue amount within 15 days from the day on which this notice was mailed to you, you are liablefor the past due amount together with collection costs of $20.
You are further notified that if you do not pay the past due amount and the $20 collectioncosts within 30 calendar days from the day on which this notice was mailed to you, anappropriate civil legal action may be filed against you for the past due amount, interest, courtcosts, attorney fees, and damages in an amount equal to the greater of $100 or triple the past dueamounts, but the combined total of all these amounts may not exceed $200 if your property isresidential.
(Signed) _______________________________________
Name of local district _____________________________
Address of local district ___________________________
Telephone number of local district ___________________
(b) Written notice under this section is conclusively presumed to have been given if thenotice is:
(i) properly deposited in the United States mail, postage prepaid, by certified orregistered mail, return receipt requested; and
(ii) addressed to the customer at the customer's:
(A) address as it appears in the records of the local district; or
(B) last-known address.
(5) (a) A local district may file a civil action against the customer if the customer fails topay the past due service fees and collection costs within 30 calendar days from the date on whichthe local district mailed notice under Subsection (2)(b).
(b) (i) In a civil action under this Subsection (5), a customer is liable to the local districtfor an amount that:
(A) consists of past due service fees, collection costs, interest, court costs, a reasonableattorney fee, and damages; and
(B) if the customer's property is residential, may not exceed $200.
(ii) Notwithstanding Subsection (5)(b)(i), a court may, upon a finding of good cause,waive interest, court costs, the attorney fee, and damages, or any combination of them.
(c) If a local district files a civil action under this Subsection (5) before 31 calendar daysafter the day on which the local district mailed notice under Subsection (2)(b), a customer maynot be held liable for an amount in excess of past due service fees.
(d) A local district may not file a civil action under this Subsection (5) unless thecustomer has failed to pay the past due service fees and collection costs within 30 days from theday on which the local district mailed notice under Subsection (2)(b).
(6) (a) All amounts charged or collected as prelitigation damages or as damages shall bepaid to and be the property of the local district that furnished water or provided sewer service andmay not be retained by a person who is not that local district.
(b) A local district may not contract for a person to retain any amounts charged orcollected as prelitigation damages or as damages.
(7) This section may not be construed to limit a local district from obtaining relief towhich it may be entitled under other applicable statute or cause of action.
Renumbered and Amended by Chapter 329, 2007 General Session