Collection of service fees.

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  • (1) As used in this section:
    • (a) "Collection costs" means an amount, not to exceed $20, to reimburse a local district for 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 a service 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 not been 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 mailed notice.
  • (3) If a customer has not paid the local district the past due service fees and collection costs within 30 days after the local district mails notice, the local district may make an offer to the customer that the local district will forego filing a civil action under Subsection (5) if the customer pays the local district an amount that:
    • (a) consists of the past due service fees, collection costs, prelitigation damages, and, if the local district retains an attorney to recover the past due service fees, a reasonable attorney fee not 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 the local district mailed notice, the customer is liable for the past due service fees and collection costs; and
        • (B) the local district may file civil action if the customer does not pay to the local district the past due service fees and collection costs within 30 calendar days from the day on which the local 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 in default. In accordance with Section 17B-1-902, Utah Code Annotated, if you do not pay the past due amount within 15 days from the day on which this notice was mailed to you, you are liable for 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 collection costs within 30 calendar days from the day on which this notice was mailed to you, an appropriate civil legal action may be filed against you for the past due amount, interest, court costs, attorney fees, and damages in an amount equal to the greater of $100 or triple the past due amounts, but the combined total of all these amounts may not exceed $200 if your property is residential.
        (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 the notice is:
      • (i) properly deposited in the United States mail, postage prepaid, by certified or registered 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 to pay the past due service fees and collection costs within 30 calendar days from the date on which the 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 district for an amount that:
        • (A) consists of past due service fees, collection costs, interest, court costs, a reasonable attorney 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 days after the day on which the local district mailed notice under Subsection (2)(b), a customer may not 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 the customer has failed to pay the past due service fees and collection costs within 30 days from the day 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 be paid to and be the property of the local district that furnished water or provided sewer service and may 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 or collected as prelitigation damages or as damages.
  • (7) This section may not be construed to limit a local district from obtaining relief to which it may be entitled under other applicable statute or cause of action.




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