Senate OKs lien authority for municipalities to collect unpaid master‑metered water and sewer charges

The Senate on May 13 approved SB63, which creates a municipal privilege to let cities collect unpaid water and sewage charges from owners of master‑metered multifamily properties when the property owner or manager fails to remit payments.

Senator Jenkins, sponsor of the bill, said cities increasingly face unpaid water and sewer balances at large apartment complexes that operate under a single master service line and master billing arrangement. "Tenants have done their part, they're paying the rent...when the management company or the owner of the apartment complex collect the rent, they're supposed to use a portion of that money to pay the water and sewage charges...When they receive the money, they are not paying the city," Jenkins said on the floor.

Jenkins said the unpaid balances force municipalities to shut off water to the complex and then shoulder relocation and public‑service burdens. The bill limits the lien privilege to large multifamily properties that use master service agreements and was developed with input from the bankers association and the Louisiana Municipal Association, the sponsor said.

Senators voted to pass the bill; the clerk recorded "38 yays and 0 nays." Supporters said the lien authority provides a targeted tool to help municipalities recover utility charges when management companies or owners with master meters fail to remit payments, while strongest protections remain for individual tenants who have paid rent.

If enacted, municipalities would be able to file a recordable lien to secure unpaid utility charges against the owner or managing entity for master‑metered accounts; practical steps will include local ordinance updates and recording procedures at parish clerks' offices.