HOUSE BILL REPORT

ESB 6563

BYSenators Pullen, Madsen and McCaslin

Adopting the uniform federal lien registration act.

House Committe on Judiciary

Majority Report:  Do pass.  (14)

      Signed by Representatives Armstrong, Chair; Crane, Vice Chair; Appelwick, Belcher, Brough, Hargrove, P. King, Lewis, Meyers, Patrick, Schmidt, Scott, Wang and Wineberry.

Minority Report:  Do not pass.  (1)

      Signed by Representative Padden.

House Staff:Bill Perry (786-7123)

AS PASSED HOUSE FEBRUARY 29, 1988

BACKGROUND:

Federal tax law, and other federal laws such as the Comprehensive Environmental Response, Compensation, and Liability Act, provide for the imposition of liens against property in certain cases of violation of the federal law.  The federal statutes allow the states to provide for the recording of these federal liens.  If a state does not so provide, then the liens are to be filed with the federal district court.

Washington law contains a provision for the filing of federal tax liens.  The state law provides that all such liens are to be filed with the auditor in the county where the property is located.

The auditor may collect five dollars for filing a federal tax lien, and three dollars for filing a certificate of discharge.

SUMMARY:

The current state statute on filing federal tax liens is replaced with the uniform federal lien registration act.

Procedures are supplied for the filing of federal tax liens, or any other federal liens that federal law allows to be recorded in the same manner as tax liens.

Federal liens on real property are to be recorded with the county "recorder" auditor in the county in which the property is located.  Liens on personal property owned by a business are to be recorded with the Department of Licensing (DOL), and liens on other personal property are to be recorded with the auditor in the county in which the owner resides.

Fees for recordings in the county auditor's office are to be the same as provided for by statute for other filings, i.e., five dollars for the first page and one dollar for each page thereafter. DOL is to set the fee for recordings with the department.

Fiscal Note:      Not Requested.

Effective Date:The bill takes effect on July 1, 1988.

House Committee ‑ Testified For:    Betty Schall, Washington Land Title Association.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    The bill provides uniformity and regularity for recording federal liens that will protect buyers, sellers and lenders.

House Committee - Testimony Against:      None Presented.