LRB-0503/1
MDK:nwn&wlj:rs
2009 - 2010 LEGISLATURE
August 31, 2009 - Introduced by Representatives Roth, Montgomery, Nygren,
Pridemore
and Townsend, cosponsored by Senator Olsen. Referred to
Committee on Energy and Utilities.
AB404,1,4 1An Act to repeal 66.0809 (5) (b) 1. and 2. and 66.0809 (5) (c) and (d); and to
2renumber and amend
66.0809 (5) (b) (intro.) of the statutes; relating to:
3prohibiting municipal electric or water utilities from collecting certain utility
4arrearages from owners of rental properties as property liens.
Analysis by the Legislative Reference Bureau
Under current law, a municipal utility may collect arrearages for utility service
provided to lots or parcels of real estate by providing, on October 15, a written notice
of payment due to the owner or occupant of the real estate. The notice must specify
the amount of the arrearage and any penalty and must state the following: 1) that,
if payment is not received by November 1, an additional penalty will be assessed; and
2) that, if payment is not received by November 15, the arrearage amount and any
penalties will become a lien on the property that will be collected as a tax on the
property.
Also under current law, if a municipal utility provides electric or water service
to a rental dwelling unit, the municipal utility may use the arrearage collection
procedure described above only if the municipal utility follows certain additional
procedures for notifying both the owner and the tenant about any payments that are
past due. In addition, the municipal utility may use the arrearage collection
procedure only if the owner of the rental property provides the municipal utility with
written notification of the name and address of the owner, as well as of the tenant
who is responsible for paying for the service. Also, if requested by the municipal

utility, the owner must provide the municipal utility with a copy of the rental or lease
agreement in which the tenant assumes responsibility for payment of utility charges.
This bill prohibits a municipal utility that provides electric or water service to
a rental dwelling unit from using the arrearage collection procedure described above,
but only if the owner has provided the municipal utility with written notification of
the name and address of the owner, as well as of the tenant who is responsible for
paying for the service. A municipal utility may also request a copy of the rental or
lease agreement in which the tenant assumes responsibility for payment of utility
charges. However, after the owner has provided written notice of the owner's and
tenant's names and addresses, the municipal utility may not use the arrearage
collection procedure.
For further information see the local fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB404, s. 1 1Section 1. 66.0809 (5) (b) (intro.) of the statutes is renumbered 66.0809 (5) (b)
2and amended to read:
AB404,2,63 66.0809 (5) (b) If this subsection applies, a municipal public utility may not use
4sub. (3) to collect arrearages incurred after the owner of a rental dwelling unit has
5provided the utility with written notice under par. (a) only if the municipality
6complies with at least one of the following:
2. and 3.
AB404, s. 2 7Section 2. 66.0809 (5) (b) 1. and 2. of the statutes are repealed.
AB404, s. 3 8Section 3. 66.0809 (5) (c) and (d) of the statutes are repealed.
AB404, s. 4 9Section 4. Initial applicability.
AB404,2,1110 (1) This act first applies to arrearages incurred on the effective date of this
11subsection.
AB404,2,1212 (End)
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