S-3873.1          _______________________________________________

 

                            SUBSTITUTE SENATE BILL 5771

                  _______________________________________________

 

State of Washington              52nd Legislature             1992 Regular Session

 

By Senate Committee on Energy & Utilities (originally sponsored by Senators Barr, Sutherland, Nelson and Thorsness)

 

Read first time 02/05/92.Encouraging customers to pay the full amount owed for utility services.


     AN ACT Relating to payment responsibility for utility service; amending RCW 35.21.290 and 35.67.200; creating a new section; and providing an effective date.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

 

     NEW SECTION.  Sec. 1.      The legislature finds that policies should be promoted that provide incentives for citizens to act responsibly and pay for those services or products received.  The legislature further finds that policies encouraging consumers to pay the full amount owed for utility services will help avoid wasteful use of utility services and help delay increases in the cost of these utility services.

 

     Sec. 2.  RCW 35.21.290 and 1965 c 7 s 35.21.290 are each amended to read as follows:

     (1) Cities and towns owning their own waterworks, or electric light or power plants shall have a lien against the premises to which water, electric light, or power services were furnished for four months charges therefor due or to become due, but not for any charges more than four months past due:  PROVIDED, That the owner of the premises or the owner of a delinquent mortgage thereon may give written notice to the superintendent or other head of such works or plant to cut off service to such premises accompanied by payment or tender of payment of the then delinquent and unpaid charges for such service against the premises together with the cut-off charge, whereupon the city or town shall have no lien against the premises for charges for such service thereafter furnished, nor shall the owner of the premises or the owner of a delinquent mortgage thereon be held for the payment thereof.

     (2) All charges made for utility services shall be charged to the customer requesting the service.  In cases where the service is provided to a commercial or residential tenant, collection of charges shall be made from that individual or individuals, and liens against the property of the landlord for such service are prohibited.  A city or town may not refuse to provide service to a commercial or residential customer who is a tenant based on the nonpayment for services by the prior customer.  The city or town may refuse to provide service if the prior nonpaying customer continues to reside in the premises.

     (3) Cities and towns owning their own waterworks, or electric light or power plants shall adopt ordinances that require:

     (a) A satisfactory credit resource or an adequate deposit amount before new customers may receive utility services; and

     (b) A schedule and procedure for discontinuing utility service to customers delinquent in utility service payments.  The ordinances shall provide that the maximum period allowed for nonpayment of utility services prior to utility service termination is seventy-five days after the day the payment is due.

     (4) Nothing in this section shall affect the benefits afforded to customers who qualify for the program outlined in RCW 35.21.300.

 

     Sec. 3.  RCW 35.67.200 and 1991 c 36 s 2 are each amended to read as follows:

     (1) Cities and towns owning their own sewer systems shall have a lien for delinquent and unpaid rates and charges for sewer service, penalties levied pursuant to RCW 35.67.190, and connection charges, including interest thereon, against the premises to which such service has been furnished or is available, which lien shall be superior to all other liens and encumbrances except general taxes and local and special assessments.  The city or town by ordinance may provide that delinquent charges shall bear interest at not exceeding eight percent per annum computed on a monthly basis:  PROVIDED, That a city or town using the property tax system for utility billing may, by resolution or ordinance, adopt the alternative lien procedure as set forth in RCW 35.67.215.

     (2) All charges made for utility services shall be charged to the customer requesting the service.  In cases where the service is provided to a commercial or residential tenant, collection of charges shall be made from that individual or individuals, and liens against the property of the landlord for such service are prohibited.  A city or town may not refuse to provide service to a commercial or residential customer who is a tenant based on the nonpayment for services by the prior customer.  The city or town may refuse to provide service if the prior nonpaying customer continues to reside in the premises.

     (3) Cities and towns owning their own sewer systems shall adopt ordinances that require:

     (a) A satisfactory credit resource or an adequate deposit amount before new customers may receive utility services; and

     (b) A schedule and procedure for discontinuing utility service to customers delinquent in utility service payments.  The ordinances shall provide that the maximum period allowed for nonpayment of utility services prior to utility service termination is seventy-five days after the day the payment is due.

 

     NEW SECTION.  Sec. 4.      This act shall take effect October 1, 1991.