HOUSE BILL REPORT

HB 2544

BYRepresentatives Nelson and Jacobsen

Providing an alternate lien and foreclosure process for sewer charges.

House Committe on Local Government

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (13)

      Signed by Representatives Haugen, Chair; Cooper, Vice Chair; Ferguson, Ranking Republican Member; Horn, Kirby, Nealey, Nelson, Nutley, Phillips, Raiter, Rayburn, Wolfe and Zellinsky.

House Staff:Steve Lundin (786-7127)

AS REPORTED BY COMMITTEE ON LOCAL GOVERNMENT

FEBRUARY 1, 1990

BACKGROUND:

Cities and towns are authorized to provide a number of utility systems, including sewers.

Cities or towns providing sewer service have liens on the premises served by the sewer service for delinquent sewer rates and charges.  The delinquent sewer rates and charges are subject to penalties, and interest on both the penalty and delinquent rates and charges, with the interest rate not to exceed 8 percent per annum.  The sewerage lien is limited to a total of not to exceed six months' delinquent rates and charges without the city filing the lien.  In order to make the lien effective for more than six month's rates and charges, the lien must be filed for record in the superior court.

SUMMARY:

SUBSTITUTE BILL:  The maximum interest rate of 8 percent per year that may be imposed by a city or town on delinquent sewer service rates and charges, is altered to an interest rate of 8 percent per year computed on a monthly basis.

A city or town using the property tax system for utility billing may adopt an ordinance providing that the sewerage lien is effective for a total of not to exceed one year, instead of six months, without the necessity of recording the lien with the county auditor.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The ability to use the alternative lien procedure is limited to cities or towns using the property tax system for utility billing purposes.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Stan Finkelstein, Association of Washington Cities; and Roger Brown, Seattle Drainage and Wastewater Utility.

House Committee - Testified Against:      (Original Bill)  John Woodring, Washington Land Title Association; and Rick Slunaker, Yakima Rental Association.

House Committee - Testimony For:    Seattle sends their annual utility bills out with notices for property taxes.  Some people pay the annual utility bill in two payments, along with their property tax payments, instead of making one payment.  The city must file a lien within six months. This will allow a lien to be filed after one year instead of six months.

House Committee - Testimony Against:      None.