As Introduced

136th General Assembly

Regular Session S. B. No. 118

2025-2026

A BILL

To amend sections 321.261, 701.10, 729.49, 735.29, 743.04, and 743.06 and to enact sections 319.65, 701.101, 701.102, 701.103, 701.20, 701.21, 701.22, 701.23, 701.24, 701.25, 701.26, 701.30, 701.31, 701.32, 701.33, 701.35, 701.36, 701.37, 701.38, 701.39, 701.40, 729.491, 729.492, 729.493, 735.291, 735.292, 743.041, 743.042, 1901.187, and 1907.033 of the Revised Code regarding limitations on recovery and lien imposition by municipalities against property owners of non-owner-occupied properties for unpaid water, sewer, and disposal services rates and charges.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 321.261, 701.10, 729.49, 735.29, 743.04, and 743.06 be amended and sections 319.65, 701.101, 701.102, 701.103, 701.20, 701.21, 701.22, 701.23, 701.24, 701.25, 701.26, 701.30, 701.31, 701.32, 701.33, 701.35, 701.36, 701.37, 701.38, 701.39, 701.40, 729.491, 729.492, 729.493, 735.291, 735.292, 743.041, 743.042, 1901.187, and 1907.033 of the Revised Code be enacted to read as follows:

Sec. 319.65. (A) As used in this section, "municipal lien" means a lien certified under sections 701.10, 729.49, 735.29, and 743.04 of the Revised Code.

(B) Additional certification required to be submitted to the county auditor for a municipal lien shall consist of the parcel number of the property on which the lien is requested, the name of the property owner, the name of the person who contracted for the service for which the lien is sought, and confirmation from the person, board, or entity that certified the lien and submitted the additional certification that all of the information submitted to the auditor has been verified.

Sec. 321.261. (A) In each county treasury there shall be created the treasurer's delinquent tax and assessment collection fund and the prosecuting attorney's delinquent tax and assessment collection fund. Except as otherwise provided in this division, two and one-half per cent of all delinquent real property, personal property, and manufactured and mobile home taxes and assessments collected by the county treasurer shall be deposited in the treasurer's delinquent tax and assessment collection fund, and two and one-half per cent of such delinquent taxes and assessments shall be deposited in the prosecuting attorney's delinquent tax and assessment collection fund. The board of county commissioners shall appropriate to the county treasurer from the treasurer's delinquent tax and assessment collection fund, and shall appropriate to the prosecuting attorney from the prosecuting attorney's delinquent tax and assessment collection fund, money to the credit of the respective fund, and except as provided in division (D) of this section, the appropriation shall be used only for the following purposes:

(1) By the county treasurer or the county prosecuting attorney in connection with the collection of delinquent real property, personal property, and manufactured and mobile home taxes and assessments, including proceedings related to foreclosure of the state's lien for such taxes against such property;

(2) With respect to any portion of the amount appropriated from the treasurer's delinquent tax and assessment collection fund for the benefit of a county land reutilization corporation organized under Chapter 1724. of the Revised Code, the county land reutilization corporation. Upon the deposit of amounts in the treasurer's delinquent tax and assessment collection fund, any amounts allocated at the direction of the treasurer to the support of the county land reutilization corporation shall be paid out of such fund to the corporation upon a warrant of the county auditor.

If the balance in the treasurer's or prosecuting attorney's delinquent tax and assessment collection fund exceeds three times the amount deposited into the fund in the preceding year, the treasurer or prosecuting attorney, on or before the twentieth day of October of the current year, may direct the county auditor to forgo the allocation of delinquent taxes and assessments to that officer's respective fund in the ensuing year, except amounts deposited to the fund under section 701.10, 729.49, 735.29, or 743.04 of the Revised Code. If the county auditor receives such direction, the auditor shall cause the portion of such taxes and assessments that otherwise would be credited to the fund under this section in that ensuing year to be allocated and distributed among taxing units' funds as otherwise provided in this chapter and other applicable law.

(B) During the period of time that a county land reutilization corporation is functioning as such on behalf of a county, the board of county commissioners, upon the request of the county treasurer, may designate by resolution that an additional amount, not exceeding five per cent of all collections of delinquent real property, personal property, and manufactured and mobile home taxes and assessments, excluding amounts required to be deposited to the fund under section 701.10, 729.49, 735.29, or 743.04 of the Revised Code, shall be deposited in the treasurer's delinquent tax and assessment collection fund and be available for appropriation by the board for the use of the corporation. Any such amounts so deposited and appropriated under this division shall be paid out of the treasurer's delinquent tax and assessment collection fund to the corporation upon a warrant of the county auditor.

(C) Annually by the first day of December, the county treasurer and the prosecuting attorney each shall submit a report to the board of county commissioners regarding the use of the moneys appropriated from their respective delinquent tax and assessment collection funds. Each report shall specify the amount appropriated from the fund during the current calendar year, an estimate of the amount so appropriated that will be expended by the end of the year, a summary of how the amount appropriated has been expended in connection with delinquent tax collection activities or land reutilization, and an estimate of the amount that will be credited to the fund during the ensuing calendar year.

The annual report of a county land reutilization corporation required by section 1724.05 of the Revised Code shall include information regarding the amount and use of the moneys that the corporation received from the treasurer's delinquent tax and assessment collection fund.

(D)(1) In any county, if the county treasurer or prosecuting attorney determines that the balance to the credit of that officer's corresponding delinquent tax and assessment collection fund exceeds the amount required to be used as prescribed by division (A) of this section, the county treasurer or prosecuting attorney may expend the excess to prevent residential mortgage foreclosures in the county and to address problems associated with other foreclosed real property. The amount used for that purpose in any year may not exceed the amount that would cause the fund to have a reserve of less than twenty per cent of the amount expended in the preceding year for the purposes of division (A) of this section.

Money authorized to be expended under division (D)(1) of this section shall be used to provide financial assistance in the form of loans to borrowers in default on their home mortgages, including for the payment of late fees, to clear arrearage balances, and to augment moneys used in the county's foreclosure prevention program. The money also may be used to assist county land reutilization corporations, municipal corporations, or townships in the county, upon their application to the county treasurer, prosecuting attorney, or the county department of development, in the nuisance abatement of deteriorated residential buildings in foreclosure, or vacant, abandoned, tax-delinquent, or blighted real property, including paying the costs of boarding up such buildings, lot maintenance, and demolition.

(2) In a county having a population of more than one hundred thousand according to the department of development's 2006 census estimate, if the county treasurer or prosecuting attorney determines that the balance to the credit of that officer's corresponding delinquent tax and assessment collection fund exceeds the amount required to be used as prescribed by division (A) of this section, the county treasurer or prosecuting attorney may expend the excess to assist county land reutilization corporations, townships, or municipal corporations located in the county as provided in division (D)(2) of this section, provided that the combined amount so expended each year in a county shall not exceed five million dollars. Upon application for the funds by a county land reutilization corporation, township, or municipal corporation, the county treasurer or prosecuting attorney may assist the county land reutilization corporation, township, or municipal corporation in abating foreclosed residential nuisances, including paying the costs of securing such buildings, lot maintenance, and demolition. At the prosecuting attorney's discretion, the prosecuting attorney also may apply the funds to costs of prosecuting alleged violations of criminal and civil laws governing real estate and related transactions, including fraud and abuse.

Sec. 701.10. (A)(1) The legislative authority of a municipal corporation that has established a rate or charge, payable to the municipal corporation, for the provision of collection or disposal services for garbage, ashes, animal and vegetable refuse, dead animals, or animal offal may, after complying with section 701.103 of the Revised Code, certify to the county auditor, by ordinance, the amount of the rate or charge that has not been paid in accordance with applicable requirements by a person using the collection or disposal services, when either of the following applies:

(a) The unpaid amount is equal to or greater than two hundred fifty dollars; or

(b) The unpaid amount is equal to or greater than the applicable annual rate or charge imposed by the municipal corporation upon the person using the collection or disposal services, regardless of the actual cost incurred by the municipal corporation in providing the collection or disposal services.

~~(2)~~(2)(a) The county auditor shall place the amount certified ~~shall be a lien~~ on the ~~person's~~ real property ~~to which services are provided,~~ tax list and duplicate against the property served by the connection if both of the following occur:

(i) The auditor also receives from the legislative authority of a municipal corporation additional certification that the unpaid rents or charges have arisen pursuant to a service contract made directly with an owner who occupies the property served, as described in section 319.65 of the Revised Code.

(ii) The auditor receives verification from the legislative authority of a municipal corporation that the notice required under section 701.102 of the Revised Code was provided to the owner.

(b) The amount placed on the tax list ~~in a separate column,~~and duplicate shall be a lien on the property served from the date placed on the list and duplicate and shall be collected in the same manner as other taxes~~, and~~ . The lien shall be released upon payment in full of the certified amount. Ninety per cent of the amounts collected by the county treasurer under this division shall be paid into the general fund of the municipal corporation in accordance with the biannual tax payment and remittance cycle in section 323.12 of the Revised Code. Ten per cent of the amounts collected by the county treasurer shall be deposited to the credit of the county treasurer's delinquent tax and assessment collection fund created under section 321.261 of the Revised Code.

(B) A municipal corporation that, on or before October 17, 2019, collected all rates or charges for such services in a manner consistent with the collection of other taxes, rather than making that rate or charge payable to the municipal corporation, may continue to collect amounts in such manner without being subject to the limitation in division (A)(1) of this section.

Sec. 701.101. The legislative authority of a municipal corporation that has established a rate or charge for the collection or disposal services described in section 701.10 of the Revised Code, which has gone unpaid, may collect it by actions at law in the name of the municipal corporation from an owner, tenant, or other person who is liable to pay the rents or charges.

Sec. 701.102. (A) The legislative authority of a municipal corporation shall provide notice to the property owner about the placement of a lien on the owner's property before the county auditor places a lien pursuant to section 701.10 of the Revised Code. The notice shall include a statement informing the owner that the owner may file a lien appeal with a municipal court or county court pursuant to section 701.35 of the Revised Code.

(B) The legislative authority shall submit verification to the county auditor that the notice required by this section was provided to the owner.

Sec. 701.103. Prior to certifying a lien to the county auditor under section 701.10 of the Revised Code, the legislative authority of a municipal corporation shall do both of the following:

(A) Attempt, not less than three times, to collect the unpaid rate or charge amount from the person who is liable for the amount by certified mail;

(B) Wait not less than one hundred eighty days following the date that the unpaid rate or charge amount was due.

Sec. 701.20. For purposes of sections 701.20 to 701.26 of the Revised Code:

(A) "Bring an action" means to bring a civil action under sections 701.101, 729.491, 735.29, and 743.04 of the Revised Code.

(B) "Certify a lien" means to certify a lien under sections 701.10, 729.49, 735.29, and 743.04 of the Revised Code.

(D) "Municipal authority" means any of the following as context requires:

(1) Board of trustees of public affairs under section 735.29 of the Revised Code;

(2) Director of public service or any other official or body under section 743.04 of the Revised Code;

(3) Legislative authority of a municipal corporation under sections 701.10, 701.101, 729.49, and 729.491 of the Revised Code.

(E) "Municipal services" means any of the following:

(1) Collection or disposal services described in section 701.10 of the Revised Code;

(2) Sewerage services under section 729.49 of the Revised Code;

(3) Water services described in Chapter 743. of the Revised Code;

(4) Services from waterworks under section 735.29 of the Revised Code.

(F) "Municipal services provider" means the entity created or designated by the municipal authority to provide municipal services.

(G) "Property owner" means the person who owns the residential property to which municipal services are provided and to whom all of the following apply:

(1) The person does not occupy the property.

(2) The tenant or other occupant is contractually responsible to pay the charges and fees imposed for the municipal services.

(3) If the residential property consists of two or more dwelling units, both of the following must be true:

(a) Each dwelling unit has a separate meter;

(b) The tenant or other occupant of each dwelling unit is contractually responsible to pay the charges and fees imposed for the municipal services provided to the unit in which the tenant or occupant resides.

(H) "Termination amount" means the amount of rates or charges for municipal services that when unpaid results in the termination of those services under the municipal authority regulations.

Sec. 701.21. Any person who contracts to receive municipal services shall be financially responsible for paying all rates, fees, charges, and costs associated with the delivery of that service.

Sec. 701.22. (A) If a municipal authority attempts to certify a lien against a property or brings an action due to unpaid municipal services rates or charges, there is a rebuttable presumption that amounts exceeding the termination amount cannot be certified as a lien, or recovered by the action, against the property owner.

(B) The presumption may be rebutted by any of the following based on a preponderance of the evidence:

(1) The property owner agreed to pay all the unpaid rates and charges, after having been given notice of the delinquent amount.

(2) The property owner occupies the residence.

(3) The municipal authority attempted to mitigate any unpaid rates or charges by strictly adhering to its established protocol for terminating service for delinquent customers.

(4) Any other evidence demonstrating that the municipal authority mitigated the amount of unpaid rates and charges before proceeding against the property owner.

(C) This section does not abridge or eliminate any cause of action that the municipal authority may have against the tenant personally, or other person liable to pay the unpaid rents or charges.

Sec. 701.23. (A) A municipal authority may establish a tenant reinstatement fee for municipal services.

(B) A tenant reinstatement fee may be applied if the tenant requests to reestablish municipal services after such services have been terminated by the municipal services provider or the tenant.

Sec. 701.24. A municipal authority may track any unpaid rates or charges owed by a person for any municipal services between residential properties if both of the following are true:

(A) A person who contracted for municipal services currently has a debit or credit regarding the municipal services provided to the person;

(B) Municipal services provided to that person have been terminated at one residential property and have been established at another residential property.

Sec. 701.25. A municipal authority may access and review the billing details and histories of any person who contracts to receive municipal services for the purpose of identifying and tracking unpaid rates or charges.

Sec. 701.26. (A) Any person who believes that they have been improperly billed for municipal services may file a complaint with the municipal services provider.

(B)(1) A municipal services provider must establish a method for persons receiving municipal services to make an improper billing complaint.

(2) A municipal services provider must investigate every complaint received.

(3) All complaints shall be resolved within ten business days. If the municipal services provider is unable to resolve the complaint within ten business days, the municipal services provider shall provide the person who filed the complaint with a status report every five business days following the initial period.

(C) If the complaint is not resolved to the satisfaction of the complaining party, the complaining party may appeal the matter to a municipal court or county court under section 701.31 of the Revised Code, if the amount in dispute is equal to or greater than three hundred dollars.

Sec. 701.30. For the purposes of sections 701.30 to 701.40 of the Revised Code:

(A) "Municipal lien" has the same meaning as in section 319.65 of the Revised Code.

(B) "Property owner," "municipal services," "municipal services provider," and "municipal authority" have the same meanings as in section 701.20 of the Revised Code.

Sec. 701.31. (A) A municipal court or county court shall hear appeals regarding improper billing complaints for municipal services if all of the following apply:

(1) The complainant has previously filed an improper billing complaint with a municipal services provider.

(2) The complaint has not been resolved to the satisfaction of the complainant.

(3) The amount in dispute is equal to or exceeds three hundred dollars.

(B) A municipal court or county court shall hear appeals from property owners in cases where a tenant who is financially responsible for paying for municipal services failed to make payment for such and the property owner was held responsible as a result.

(C) A municipal court or county court shall not hear appeals of the reasonableness of the rates, charges, or rents set by the municipal authority for municipal services.

Sec. 701.32. The supreme court may adopt rules regarding appeals for improper billing complaints for municipal services, including the following:

(A) A procedure by which complaints will be evaluated, to determine whether a hearing is warranted;

(B) Hearing procedures and processes;

Sec. 701.33. In connection with an appeal made to a municipal court or county court regarding an improper billing complaint, the court may access and review the billing details and histories of a person who contracts to receive municipal services for the purposes of identifying unpaid rates or charges.

Sec. 701.35. A person that receives notice from a municipal authority of a municipal lien being placed on that person's property may file an appeal of the municipal lien with a municipal court or county court.

Sec. 701.36. The supreme court may adopt rules governing hearing procedures for appeals of municipal liens.

Sec. 701.37. A municipal court or county court shall find for the owner of the property in an appeal of a municipal lien if the court determines both of the following:

(A) The unpaid rents, rates, or charges did not arise pursuant to a service contract made directly with the owner.

(B) The owner did not occupy the property served by the service contract.

Sec. 701.38. (A) If a municipal court or county court finds for the owner of the property under section 701.37 of the Revised Code, the court shall order both of the following:

(1) The county auditor that placed the challenged municipal lien on the real property tax list and duplicate to remove the lien;

(2) The municipal authority that certified the challenged municipal lien to pay the owner's reasonable attorneys' fees incurred in prosecuting the appeal.

(B) On the order of a court, the county auditor shall remove the challenged service lien.

Sec. 701.39. Sections 701.35 to 701.38 of the Revised Code apply to only municipal liens placed on a property on or after the effective date of those sections.

Sec. 701.40. A county that operates as a municipal services provider on behalf of a municipal authority is not subject to sections 701.20 to 701.26 and 701.30 to 701.39 of the Revised Code.

Sec. 729.49. (A) The legislative authority of a municipal corporation which has installed or is installing sewerage, a system of sewerage, sewage pumping works, or sewage treatment or disposal works for public use, may, by ordinance, establish just and equitable rates or charges of rents to be paid to the municipal corporation for the use of such services, by every person, firm, or corporation whose premises are served by a connection thereof. ~~Such~~

(B) When sewerage rates or charges are not paid when due, the legislative authority of a municipal corporation may, after complying with section 729.493 of the Revised Code, certify them, together with any penalties, to the county auditor.

(1) The county auditor shall ~~constitute~~ place the certified amount on the real property list and duplicate against the property served by the connection if both of the following occur:

(a) The auditor also receives from the legislative authority of a municipal corporation additional certification that the unpaid rates or charges have arisen pursuant to a service contract made directly with an owner who occupies the property served, as described in section 319.65 of the Revised Code.

(b) The auditor receives verification from the legislative authority of a municipal corporation that the notice required under section 729.492 of the Revised Code was provided to the owner.

(2) The amount placed on the tax list and duplicate shall be a lien upon the property served by such connection from the date placed on the list and duplicate and ~~if not paid when due~~ shall be collected in the same manner as other municipal corporation taxes. The lien shall be released upon payment in full of the certified amount. Ninety per cent of the amounts collected by the county treasurer under this division shall be provided to the municipal corporation in accordance with the biannual tax payment and remittance cycle in section 323.12 of the Revised Code. Ten per cent of the amounts collected by the county treasurer shall be deposited to the credit of the county treasurer's delinquent tax and assessment collection fund created under section 321.261 of the Revised Code. ~~The~~

(C) The legislative authority may change such rates or charges from time to time as is deemed advisable. The legislative authority of a municipal corporation operating under a charter may establish such schedule of rates and provide for its administration by designating the department or officer to be charged with the enforcement of sections 729.49 to 729.52, inclusive, of the Revised Code.

Sec. 729.491. The legislative authority of a municipal corporation that has established a rate or charge for the sewerage service described in section 729.49 of the Revised Code, which has gone unpaid, may collect it by actions at law in the name of the municipal corporation from an owner, tenant, or other person who is liable to pay the rates or charges.

Sec. 729.492. (A) The legislative authority of a municipal corporation shall provide notice to the property owner about the placement of a lien on the owner's property before the county auditor places a lien pursuant to section 729.49 of the Revised Code. The notice shall include a statement informing the owner that the owner may file a lien appeal with a municipal court or county court pursuant to section 701.35 of the Revised Code.

(B) The legislative authority shall submit verification to the county auditor that the notice required by this section was provided to the owner.

Sec. 729.493. Prior to certifying a lien to the county auditor under section 729.49 of the Revised Code, the legislative authority of a municipal corporation shall do both of the following:

(A) Attempt, not less than three times, to collect the unpaid sewerage rates or charges amount from the person who is liable for the amount by certified mail;

(B) Wait not less than one hundred eighty days following the date that the unpaid sewerage rates or charges amount was due.

Sec. 735.29. (A) The board of trustees of public affairs appointed under section 735.28 of the Revised Code shall manage, conduct, and control the waterworks, electric light plants, artificial or natural gas plants, or other similar public utilities, furnish supplies of water, electricity, or gas, collect all water, electric, and gas rents or charges, and appoint necessary officers, employees, and agents.

(B) The board may make such bylaws and rules as it determines to be necessary for the safe, economical, and efficient management and protection of such works, plants, and public utilities. These bylaws and rules, when not repugnant to municipal ordinances or to the constitution or laws of this state, shall have the same validity as ordinances.

(C) For the purpose of paying the expenses of conducting and managing such waterworks, plants, and public utilities or of making necessary additions thereto and extensions and repairs thereon, the board may assess a water rent or charge, or a light, power, gas, or utility rent, of sufficient amount, and in such manner as it determines to be most equitable, upon all tenements and premises supplied therewith. When such rents, except water rents and charges, are not paid when due, the board may ~~certify~~ , after complying with section 735.292 of the Revised Code, do either or both of the following:

(1) Certify them to the county auditor to be placed on the duplicate and collected as other village taxes~~, or it may collect~~;

(2) Collect them by actions at law in the name of the village from an owner, tenant, or other person who is liable to pay the rents or charges. ~~When~~

(D) When water rents or charges are not paid when due, the board may, after complying with section 735.292 of the Revised Code, do either or both of the following:

~~(A)~~ (1) Certify them, together with any penalties, to the county auditor. ~~The~~

(a) The county auditor shall place the certified amount on the real property tax list and duplicate against the property served by the connection if he both of the following occur:

(i) The auditor also receives from the board additional certification that the unpaid rents or charges have arisen pursuant to a service contract made directly with an owner who occupies the property served, as described in section 319.65 of the Revised Code.

(ii) The auditor receives verification from the board that the notice required under section 735.291 of the Revised Code was provided to the owner.

(b) The amount placed on the tax list and duplicate shall be a lien on the property served from the date placed on the list and duplicate and shall be collected in the same manner as other taxes, except that, notwithstanding section 323.15 of the Revised Code, a county treasurer shall accept a payment in such amount when separately tendered as payment for the full amount of such unpaid water rents or charges and associated penalties. The lien shall be released ~~immediately~~ upon payment in full of the certified amount. ~~Any~~ Ninety per cent of the amounts collected by the county treasurer under this division shall be placed for ~~immediate~~ distribution to the village, in accordance with the biannual tax payment and remittance cycle in section 323.12 of the Revised Code, in the appropriate distinct fund established for water rents and charges. Ten per cent of the amounts collected by the county treasurer shall be deposited to the credit of the county treasurer's delinquent tax and assessment collection fund created under section 321.261 of the Revised Code.

~~(B)~~ (2) Collect them by actions at law in the name of the village from an owner, tenant, or other person who is liable to pay the rents or charges.

(E) The board shall have the same powers and perform the same duties as are provided in sections 743.01, 743.05 to 743.07, 743.10, 743.11, 743.18, 743.24, and 735.05 to 735.09 of the Revised Code, and all powers and duties relating to waterworks in any of such sections shall extend to and include electric light, power, and gas plants, and such other similar public utilities, and such board shall have such other duties as are prescribed by law or ordinance not inconsistent herewith.

(F) Each board that assesses water rents or charges shall determine the actual amount of rents due based upon an actual reading of each customer's meter at least once in each three-month period, and at least quarterly the board shall render a bill for the actual amount shown by the meter reading to be due, except estimated bills may be rendered if access to a customer's meter was unobtainable for a timely reading. Each board that assesses water rents or charges shall establish procedures providing fair and reasonable opportunity for resolution of billing disputes.

(G) When property to which water service is provided is about to be sold, any party to the sale or ~~his~~ any party's agent may request the board to read the meter at that property and to render within ten days following the date on which the request is made, a final bill for all outstanding rents and charges for water service. Such a request shall be made at least fourteen days prior to the transfer of the title of such property.

(H) At any time prior to a certification under division ~~(A)~~ (D)(1) of this section, the board shall accept any partial payment of unpaid water rents or charges, in the amount of ten dollars or more.

Sec. 735.291. (A) The board of trustees of public affairs shall provide notice to the property owner about the placement of a lien on the owner's property before the county auditor places a lien pursuant to division (D) of section 735.29 of the Revised Code. The notice shall include a statement informing the owner that the owner may file a lien appeal with a municipal court or county court pursuant to section 701.35 of the Revised Code.

(B) The board shall submit verification to the county auditor that the notice required by this section was provided to the owner.

Sec. 735.292. Prior to certifying a lien to the county auditor under section 735.29 of the Revised Code, the board of trustees of public affairs shall do both of the following:

(A) Attempt, not less than three times, to collect the unpaid rent or charge amount from the person who is liable for the amount by certified mail;

(B) Wait not less than one hundred eighty days following the date that the unpaid rent or charge amount was due.

Sec. 743.04. (A) For the purpose of paying the expenses of conducting and managing the waterworks of a municipal corporation, including operating expenses and the costs of permanent improvements, the director of public service or any other city official or body authorized by charter may assess and collect a water rent or charge of sufficient amount and in such manner as the director, other official, or body determines to be most equitable from all tenements and premises supplied with water.

(1) When water rents or charges are not paid when due, the director or other official or body may, after complying with section 743.042 of the Revised Code, do either or both of the following:

(a) Certify them, together with any penalties, to the county auditor. ~~The~~

(i) The county auditor shall place the certified amount on the real property tax list and duplicate against the property served by the connection if ~~the~~ both of the following occur:

(I) The auditor also receives from the director or other official or body additional certification that the unpaid rents or charges have arisen pursuant to a service contract made directly with an owner who occupies the property served, as described in section 319.65 of the Revised Code.

(II) The auditor receives verification from the director or other official or body that the notice required under section 743.041 of the Revised Code was provided to the owner.

(ii) The amount placed on the tax list and duplicate shall be a lien on the property served from the date placed on the list and duplicate and shall be collected in the same manner as other taxes, except that, notwithstanding section 323.15 of the Revised Code, a county treasurer shall accept a payment in such amount when separately tendered as payment for the full amount of such unpaid water rents or charges and associated penalties. The lien shall be released ~~immediately~~ upon payment in full of the certified amount. ~~Any~~ Ninety per cent of the amounts collected by the county treasurer under this division shall be ~~immediately~~ placed in the distinct fund established by section 743.06 of the Revised Code in accordance with the biannual tax payment and remittance cycle in section 323.12 of the Revised Code. Ten per cent of the amounts collected by the county treasurer shall be deposited to the credit of the county treasurer's delinquent tax and assessment collection fund created under section 321.261 of the Revised Code.

(b) Collect them by actions at law, in the name of the city from an owner, tenant, or other person who is liable to pay the rents or charges.

(2) The director or other official body shall not certify to the county auditor for placement upon the tax list and duplicate and the county auditor shall not place upon the tax list and duplicate as a charge against the property the amount of any unpaid water rents or charges together with any penalties as described in division (A)(1)(a) of this section if any of the following apply:

(a) The property served by the connection has been transferred or sold to an electing subdivision as defined in section 5722.01 of the Revised Code, regardless of whether the electing subdivision is still the owner of the property, and the unpaid water rents or charges together with any penalties have arisen from a period of time prior to the transfer or confirmation of sale to the electing subdivision;

(b) The property served by the connection has been sold to a purchaser at sheriff's sale or auditor's sale, the unpaid water rents or charges together with any penalties have arisen from a period of time prior to the confirmation of sale, and the purchaser is not the owner of record of the property immediately prior to the judgment of foreclosure nor any of the following:

(i) A member of that owner's immediate family;

(ii) A person with a power of attorney appointed by that owner who subsequently transfers the land to the owner;

(iii) A sole proprietorship owned by that owner or a member of that owner's immediate family;

(iv) A partnership, trust, business trust, corporation, or association of which the owner or a member of the owner's immediate family owns or controls directly or indirectly more than fifty per cent.

(c) The property served by the connection has been forfeited to this state for delinquent taxes, unless the owner of record redeems the property.

(3) Upon valid written notice to the county auditor by any owner possessing an ownership interest of record of the property or by an electing subdivision previously in the chain of title of the property that the unpaid water rents or charges together with any penalties have been certified for placement or placed upon the tax list and duplicate as a charge against the property in violation of division (A)(2) of this section, the county auditor shall promptly remove such charge from the tax duplicate. This written notice to the county auditor shall include all of the following:

(a) The parcel number of the property;

(b) The common address of the property;

(d) The charge allegedly placed in violation of division (A)(2) of this section.

(4) Each director or other official or body that assesses water rents or charges shall determine the actual amount of rents due based upon an actual reading of each customer's meter at least once in each three-month period, and at least quarterly the director or other official or body shall render a bill for the actual amount shown by the meter reading to be due, except estimated bills may be rendered if access to a customer's meter was unobtainable for a timely reading. Each director or other official or body that assesses water rents or charges shall establish procedures providing fair and reasonable opportunity for resolution of billing disputes.

(5) When property to which water service is provided is about to be sold, any party to the sale or the agent of any such party may request the director or other official or body to read the meter at that property and to render within ten days following the date on which the request is made, a final bill for all outstanding rents and charges for water service. Such a request shall be made at least fourteen days prior to the transfer of the title of such property.

(6) At any time prior to a certification under division (A)(1)(a) of this section, the director or other official or body shall accept any partial payment of unpaid water rents or charges, in the amount of ten dollars or more.

(B)(1) When title to a parcel of land that is subject to any of the actions described in division (A)(1) of this section is transferred to a county land reutilization corporation, any lien placed on the parcel under division (A)(1)(a) of this section shall be extinguished, and the corporation shall not be held liable for unpaid rents or charges in any collection action brought under division (A)(1)(b) of this section, if the rents or charges certified under division (A)(1)(a) of this section or subject to collection under division (A)(1)(b) of this section were incurred before the date of the transfer to the corporation and if the corporation did not incur the rents or charges, regardless of whether the rents or charges were certified, the lien was attached, or the action was brought before the date of transfer. In such a case, the corporation and its successors in title shall take title to the property free and clear of any such lien and shall be immune from liability in any such collection action.

If a county land reutilization corporation takes title to property before any rents or charges have been certified or any lien has been placed with respect to the property under division (A)(1) of this section, the corporation shall be deemed a bona fide purchaser for value without knowledge of such rents, charges, or lien, regardless of whether the corporation had actual or constructive knowledge of the rents, charges, or lien, and any such lien shall be void and unenforceable against the corporation and its successors in title.

(2) If a lien placed on a parcel is extinguished as provided in division (B)(1) of this section, the municipal corporation may pursue the remedy available under division (A)(1)(b) of this section to recoup the rents and charges incurred with respect to the parcel from any owner, tenant, or other person liable to pay such rents and charges.

Sec. 743.041. (A) The director of public service or any other city official or body authorized by charter shall provide notice to the property owner about the placement of a lien on the owner's property before the county auditor places a lien pursuant to section 743.04 of the Revised Code. The notice shall include a statement informing the owner that the owner may file a lien appeal with a municipal court or county court pursuant to section 701.35 of the Revised Code.

(B) The director or other official or body shall submit verification to the county auditor that the notice required by this section was provided to the owner.

Sec. 743.042. Prior to certifying a lien to the county auditor under section 743.04 of the Revised Code, the director of public service or any other city official or body authorized by charter shall do both of the following:

(A) Attempt, not less than three times, to collect the unpaid water rents or charges amount from the person who is liable for the amount by certified mail;

(B) Wait not less than one hundred eighty days following the date that the unpaid water rents or charges amount was due.

Sec. 743.06. Money collected for water-works purposes shall be deposited weekly, except for water lien amounts collected under division (A)(1) of section 743.04 of the Revised Code, with the treasurer of the municipal corporation, and shall be kept as a a separate and distinct fund. When appropriated by the legislative authority of the municipal corporation, such money shall be subject to the order of the director of public service. The director shall sign all orders drawn on the treasurer of the municipal corporation against such fund.

Sec. 1901.187. In addition to jurisdiction otherwise granted by this chapter, a municipal court shall have exclusive original jurisdiction within the territory of the court over actions filed pursuant to sections 701.31 and 701.35 of the Revised Code.

Sec. 1907.033. In addition to jurisdiction authorized in other sections of this chapter, a county court shall have exclusive original jurisdiction within its district over actions filed pursuant to sections 701.31 and 701.35 of the Revised Code.

Section 2. That existing sections 321.261, 701.10, 729.49, 735.29, 743.04, and 743.06 of the Revised Code are hereby repealed.