Modifies interest rates and accrual of interest on certain unpaid water and sewer utility bills and delinquent municipal taxes, assessments, and other municipal liens and charges.

This bill changes how interest is calculated on unpaid water, sewer, and municipal bills by replacing fixed rates with a rate based on the prevailing municipal bond yield (reflecting current market rates). It requires at least 30 days to pass before interest begins accruing on unpaid bills and mandates annual compounding of interest. During declared public health emergencies or natural disasters, authorities may choose to waive interest, liens, or service disconnections for up to 90 days after the emergency ends. The bill affects water and sewer service providers, municipalities, and property owners who fall behind on payments for these services.