H-1122.3  _______________________________________________

 

                          HOUSE BILL 1785

          _______________________________________________

 

State of Washington      54th Legislature     1995 Regular Session

 

By Representatives Casada, Huff, Kessler, Crouse, Skinner, Backlund and Hymes

 

Read first time 02/08/95.  Referred to Committee on Energy & Utilities.

 

Providing for seller responsibility for unpaid charges for utility services to single-family dwellings.



    AN ACT Relating to seller responsibility for unpaid charges for utility services to single-family dwellings; adding a new section to chapter 35.21 RCW; adding a new section to chapter 35.67 RCW; adding a new section to chapter 36.36 RCW; adding a new section to chapter 36.89 RCW; adding a new section to chapter 36.94 RCW; adding a new section chapter 56.16 RCW; adding a new section to chapter 57.08 RCW; and adding a new section to chapter 87.03 RCW.

 

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

 

    NEW SECTION.  Sec. 1.  A new section is added to chapter 35.21 RCW to read as follows:

    (1) Unless otherwise stated in writing and separately acknowledged in writing by the purchaser, it is the responsibility of the seller of a fee interest in a single-family dwelling to satisfy upon closing the lien provided for by RCW 35.21.290.  No person serving as an escrow agent as defined in RCW 18.44.010(4), including persons authorized in RCW 18.44.020 to act without a certificate of registration, may refuse a request by the seller or purchaser of a fee interest in a single-family dwelling to administer the disbursement of closing funds necessary to satisfy a lien under RCW 35.21.290.  If an escrow agent, as specified above, handles the sale, the escrow agent shall timely request a final billing under subsection (2) of this section from all affected utilities, and inform the seller and the purchaser of all amounts for final estimated billings furnished by those utilities prior to closing.  Final billing shall include all outstanding charges.  "Charges" as used in this subsection includes all lawful charges assessed by the utility, including but not limited to consumption charges, connection charges, contributions provided for by state law, charges for meters and other equipment provided to the customer, and charges in connection with repair, replacement, or location of customer facilities.

    (2)(a) Upon request for a final billing with respect to real property that is to be sold, a utility operated by a city, town, or county that provides water, storm water, sewer, garbage, electricity, or natural gas service to the property shall provide the owner of the property or the closing agent for the sale with an estimated final billing under the conditions set forth in this section.

    (b) If the request for an estimated final billing is received by the billing office of the utility no less than seven working days before the closing date stated in the request, the utility shall provide the estimated final billing no less than one day before the stated closing date.  However, if the request is received less than seven working days before the stated closing date, the utility shall make reasonable efforts to provide the estimated final billing prior to the stated closing date.

    (c) The estimated final billing shall, in addition to stating the estimated final amount owing as of the date of the stated closing, state the average per diem rate for the utility or utilities involved, including taxes and other charges, which shall be applied for up to seven days beyond the stated date of closing in the event that the closing date is delayed.  If closing is delayed beyond seven days, a new estimated final billing must be requested.  In lieu of furnishing a revised billing, the utility may extend the number of days for which the per diem charge may be used.

    (d) If the utility fails to timely provide the estimated final billing in response to a request made no less than seven working days before the stated closing date, the utility shall forfeit the right it may have to collect from the purchaser outstanding utility charges of the former owner that were incurred before the stated closing date.

    (e) If closing occurs no later than the last date for which per diem charges may be applied, full payment of the amount plus per diem charges, shall extinguish the lien of the utility provided under RCW 35.21.290 for charges incurred prior to the date of closing.

    (f) This subsection (2) does not in any manner limit the right of a utility to obtain recovery from the former owner of the property for outstanding charges that are in excess of the estimated final billing.  However, if the estimated final billing is in excess of the amount owed as determined by an actual meter reading, the utility shall refund the amount to the former owner within seven working days of the actual reading by sending the refund in the owner's name to the last address given by the former owner.

    (g) For the purposes of this section, a "working day" is considered to be a day that the utility in question is open for business.

 

    NEW SECTION.  Sec. 2.  A new section is added to chapter 35.67 RCW to read as follows:

    (1) Unless otherwise stated in writing and separately acknowledged in writing by the purchaser, it is the responsibility of the seller of a fee interest in a single-family dwelling to satisfy upon closing the lien provided for by RCW 35.67.200.  No person serving as an escrow agent as defined in RCW 18.44.010(4), including persons authorized in RCW 18.44.020 to act without a certificate of registration, may refuse a request by the seller or purchaser of a fee interest in a single-family dwelling to administer the disbursement of closing funds necessary to satisfy a lien under RCW 35.67.200.  If an escrow agent, as specified above, handles the sale, the escrow agent shall timely request a final billing under subsection (2) of this section from all affected utilities, and inform the seller and the purchaser of all amounts for final estimated billings furnished by those utilities prior to closing.  Final billing shall include all outstanding charges.  "Charges" as used in this subsection includes all lawful charges assessed by the utility, including but not limited to consumption charges, connection charges, contributions provided for by state law, charges for meters and other equipment provided to the customer, and charges in connection with repair, replacement, or location of customer facilities.

    (2)(a) Upon request for a final billing with respect to real property that is to be sold, a utility operated by a city, town, or county that provides water, storm water, sewer, garbage, electricity, or natural gas service to the property shall provide the owner of the property or the closing agent for the sale with an estimated final billing under the conditions set forth in this section.

    (b) If the request for an estimated final billing is received by the billing office of the utility no less than seven working days before the closing date stated in the request, the utility shall provide the estimated final billing no less than one day before the stated closing date.  However, if the request is received less than seven working days before the stated closing date, the utility shall make reasonable efforts to provide the estimated final billing prior to the stated closing date.

    (c) The estimated final billing shall, in addition to stating the estimated final amount owing as of the date of the stated closing, state the average per diem rate for the utility or utilities involved, including taxes and other charges, which shall be applied for up to seven days beyond the stated date of closing in the event that the closing date is delayed.  If closing is delayed beyond seven days, a new estimated final billing must be requested.  In lieu of furnishing a revised billing, the utility may extend the number of days for which the per diem charge may be used.

    (d) If the utility fails to timely provide the estimated final billing in response to a request made no less than seven working days before the stated closing date, the utility shall forfeit the right it may have to collect from the purchaser outstanding utility charges of the former owner that were incurred before the stated closing date.

    (e) If closing occurs no later than the last date for which per diem charges may be applied, full payment of the amount plus per diem charges, shall extinguish the lien of the utility provided under RCW 35.67.200 for charges incurred prior to the date of closing.

    (f) This subsection (2) does not in any manner limit the right of a utility to obtain recovery from the former owner of the property for outstanding charges that are in excess of the estimated final billing.  However, if the estimated final billing is in excess of the amount owed as determined by an actual meter reading, the utility shall refund the amount to the former owner within seven working days of the actual reading by sending the refund in the owner's name to the last address given by the former owner.

    (g) For the purposes of this section, a "working day" is considered to be a day that the utility in question is open for business.

 

    NEW SECTION.  Sec. 3.  A new section is added to chapter 36.36 RCW to read as follows:

    (1) Unless otherwise stated in writing and separately acknowledged in writing by the purchaser, it is the responsibility of the seller of a fee interest in a single-family dwelling to satisfy upon closing the lien provided for by RCW 36.36.045.  No person serving as an escrow agent as defined in RCW 18.44.010(4), including persons authorized in RCW 18.44.020 to act without a certificate of registration, may refuse a request by the seller or purchaser of a fee interest in a single-family dwelling to administer the disbursement of closing funds necessary to satisfy a lien under RCW 36.36.045.  If an escrow agent, as specified above, handles the sale, the escrow agent shall timely request a final billing under subsection (2) of this section from all affected utilities, and inform the seller and the purchaser of all amounts for final estimated billings furnished by those utilities prior to closing.  Final billing shall include all outstanding charges.  "Charges" as used in this subsection includes all lawful charges assessed by the utility, including but not limited to consumption charges, connection charges, contributions provided for by state law, charges for meters and other equipment provided to the customer, and charges in connection with repair, replacement, or location of customer facilities.

    (2)(a) Upon request for a final billing with respect to real property that is to be sold, a utility operated by a city, town, or county that provides water, storm water, sewer, garbage, electricity, or natural gas service to the property shall provide the owner of the property or the closing agent for the sale with an estimated final billing under the conditions set forth in this section.

    (b) If the request for an estimated final billing is received by the billing office of the utility no less than seven working days before the closing date stated in the request, the utility shall provide the estimated final billing no less than one day before the stated closing date.  However, if the request is received less than seven working days before the stated closing date, the utility shall make reasonable efforts to provide the estimated final billing prior to the stated closing date.

    (c) The estimated final billing shall, in addition to stating the estimated final amount owing as of the date of the stated closing, state the average per diem rate for the utility or utilities involved, including taxes and other charges, which shall be applied for up to seven days beyond the stated date of closing in the event that the closing date is delayed.  If closing is delayed beyond seven days, a new estimated final billing must be requested.  In lieu of furnishing a revised billing, the utility may extend the number of days for which the per diem charge may be used.

    (d) If the utility fails to timely provide the estimated final billing in response to a request made no less than seven working days before the stated closing date, the utility shall forfeit the right it may have to collect from the purchaser outstanding utility charges of the former owner that were incurred before the stated closing date.

    (e) If closing occurs no later than the last date for which per diem charges may be applied, full payment of the amount plus per diem charges, shall extinguish the lien of the utility provided under RCW 36.36.045 for charges incurred prior to the date of closing.

    (f) This subsection (2) does not in any manner limit the right of a utility to obtain recovery from the former owner of the property for outstanding charges that are in excess of the estimated final billing.  However, if the estimated final billing is in excess of the amount owed as determined by an actual meter reading, the utility shall refund the amount to the former owner within seven working days of the actual reading by sending the refund in the owner's name to the last address given by the former owner.

    (g) For the purposes of this section, a "working day" is considered to be a day that the utility in question is open for business.

 

    NEW SECTION.  Sec. 4.  A new section is added to chapter 36.89 RCW to read as follows:

    (1) Unless otherwise stated in writing and separately acknowledged in writing by the purchaser, it is the responsibility of the seller of a fee interest in a single-family dwelling to satisfy upon closing the lien provided for by RCW 36.89.090.  No person serving as an escrow agent as defined in RCW 18.44.010(4), including persons authorized in RCW 18.44.020 to act without a certificate of registration, may refuse a request by the seller or purchaser of a fee interest in a single-family dwelling to administer the disbursement of closing funds necessary to satisfy a lien under RCW 36.89.090.  If an escrow agent, as specified above, handles the sale, the escrow agent shall timely request a final billing under subsection (2) of this section from all affected utilities, and inform the seller and the purchaser of all amounts for final estimated billings furnished by those utilities prior to closing.  Final billing shall include all outstanding charges.  "Charges" as used in this subsection includes all lawful charges assessed by the utility, including but not limited to consumption charges, connection charges, contributions provided for by state law, charges for meters and other equipment provided to the customer, and charges in connection with repair, replacement, or location of customer facilities.

    (2)(a) Upon request for a final billing with respect to real property that is to be sold, a utility operated by a city, town, or county that provides water, storm water, sewer, garbage, electricity, or natural gas service to the property shall provide the owner of the property or the closing agent for the sale with an estimated final billing under the conditions set forth in this section.

    (b) If the request for an estimated final billing is received by the billing office of the utility no less than seven working days before the closing date stated in the request, the utility shall provide the estimated final billing no less than one day before the stated closing date.  However, if the request is received less than seven working days before the stated closing date, the utility shall make reasonable efforts to provide the estimated final billing prior to the stated closing date.

    (c) The estimated final billing shall, in addition to stating the estimated final amount owing as of the date of the stated closing, state the average per diem rate for the utility or utilities involved, including taxes and other charges, which shall be applied for up to seven days beyond the stated date of closing in the event that the closing date is delayed.  If closing is delayed beyond seven days, a new estimated final billing must be requested.  In lieu of furnishing a revised billing, the utility may extend the number of days for which the per diem charge may be used.

    (d) If the utility fails to timely provide the estimated final billing in response to a request made no less than seven working days before the stated closing date, the utility shall forfeit the right it may have to collect from the purchaser outstanding utility charges of the former owner that were incurred before the stated closing date.

    (e) If closing occurs no later than the last date for which per diem charges may be applied, full payment of the amount plus per diem charges, shall extinguish the lien of the utility provided under RCW 36.89.090 for charges incurred prior to the date of closing.

    (f) This subsection (2) does not in any manner limit the right of a utility to obtain recovery from the former owner of the property for outstanding charges that are in excess of the estimated final billing.  However, if the estimated final billing is in excess of the amount owed as determined by an actual meter reading, the utility shall refund the amount to the former owner within seven working days of the actual reading by sending the refund in the owner's name to the last address given by the former owner.

    (g) For the purposes of this section, a "working day" is considered to be a day that the utility in question is open for business.

 

    NEW SECTION.  Sec. 5.  A new section is added to chapter 36.94 RCW to read as follows:

    (1) Unless otherwise stated in writing and separately acknowledged in writing by the purchaser, it is the responsibility of the seller of a fee interest in a single-family dwelling to satisfy upon closing the lien provided for by RCW 36.94.150.  No person serving as an escrow agent as defined in RCW 18.44.010(4), including persons authorized in RCW 18.44.020 to act without a certificate of registration, may refuse a request by the seller or purchaser of a fee interest in a single-family dwelling to administer the disbursement of closing funds necessary to satisfy a lien under RCW 36.94.150.  If an escrow agent, as specified above, handles the sale, the escrow agent shall timely request a final billing under subsection (2) of this section from all affected utilities, and inform the seller and the purchaser of all amounts for final estimated billings furnished by those utilities prior to closing.  Final billing shall include all outstanding charges.  "Charges" as used in this subsection includes all lawful charges assessed by the utility, including but not limited to consumption charges, connection charges, contributions provided for by state law, charges for meters and other equipment provided to the customer, and charges in connection with repair, replacement, or location of customer facilities.

    (2)(a) Upon request for a final billing with respect to real property that is to be sold, a utility operated by a city, town, or county that provides water, storm water, sewer, garbage, electricity, or natural gas service to the property shall provide the owner of the property or the closing agent for the sale with an estimated final billing under the conditions set forth in this section.

    (b) If the request for an estimated final billing is received by the billing office of the utility no less than seven working days before the closing date stated in the request, the utility shall provide the estimated final billing no less than one day before the stated closing date.  However, if the request is received less than seven working days before the stated closing date, the utility shall make reasonable efforts to provide the estimated final billing prior to the stated closing date.

    (c) The estimated final billing shall, in addition to stating the estimated final amount owing as of the date of the stated closing, state the average per diem rate for the utility or utilities involved, including taxes and other charges, which shall be applied for up to seven days beyond the stated date of closing in the event that the closing date is delayed.  If closing is delayed beyond seven days, a new estimated final billing must be requested.  In lieu of furnishing a revised billing, the utility may extend the number of days for which the per diem charge may be used.

    (d) If the utility fails to timely provide the estimated final billing in response to a request made no less than seven working days before the stated closing date, the utility shall forfeit the right it may have to collect from the purchaser outstanding utility charges of the former owner that were incurred before the stated closing date.

    (e) If closing occurs no later than the last date for which per diem charges may be applied, full payment of the amount plus per diem charges, shall extinguish the lien of the utility provided under RCW 36.94.150 for charges incurred prior to the date of closing.

    (f) This subsection (2) does not in any manner limit the right of a utility to obtain recovery from the former owner of the property for outstanding charges that are in excess of the estimated final billing.  However, if the estimated final billing is in excess of the amount owed as determined by an actual meter reading, the utility shall refund the amount to the former owner within seven working days of the actual reading by sending the refund in the owner's name to the last address given by the former owner.

    (g) For the purposes of this section, a "working day" is considered to be a day that the utility in question is open for business.

 

    NEW SECTION.  Sec. 6.  A new section is added to chapter 56.16 RCW to read as follows:

    (1) Unless otherwise stated in writing and separately acknowledged in writing by the purchaser, it is the responsibility of the seller of a fee interest in a single-family dwelling to satisfy upon closing the lien provided for by RCW 56.16.100.  No person serving as an escrow agent as defined in RCW 18.44.010(4), including persons authorized in RCW 18.44.020 to act without a certificate of registration, may refuse a request by the seller or purchaser of a fee interest in a single-family dwelling to administer the disbursement of closing funds necessary to satisfy a lien under RCW 56.16.100.  If an escrow agent, as specified above, handles the sale, the escrow agent shall timely request a final billing under subsection (2) of this section from all affected utilities, and inform the seller and the purchaser of all amounts for final estimated billings furnished by those utilities prior to closing.  Final billing shall include all outstanding charges.  "Charges" as used in this subsection includes all lawful charges assessed by the utility, including but not limited to consumption charges, connection charges, contributions provided for by state law, charges for meters and other equipment provided to the customer, and charges in connection with repair, replacement, or location of customer facilities.

    (2)(a) Upon request for a final billing with respect to real property that is to be sold, a utility operated by a city, town, or county that provides water, storm water, sewer, garbage, electricity, or natural gas service to the property shall provide the owner of the property or the closing agent for the sale with an estimated final billing under the conditions set forth in this section.

    (b) If the request for an estimated final billing is received by the billing office of the utility no less than seven working days before the closing date stated in the request, the utility shall provide the estimated final billing no less than one day before the stated closing date.  However, if the request is received less than seven working days before the stated closing date, the utility shall make reasonable efforts to provide the estimated final billing prior to the stated closing date.

    (c) The estimated final billing shall, in addition to stating the estimated final amount owing as of the date of the stated closing, state the average per diem rate for the utility or utilities involved, including taxes and other charges, which shall be applied for up to seven days beyond the stated date of closing in the event that the closing date is delayed.  If closing is delayed beyond seven days, a new estimated final billing must be requested.  In lieu of furnishing a revised billing, the utility may extend the number of days for which the per diem charge may be used.

    (d) If the utility fails to timely provide the estimated final billing in response to a request made no less than seven working days before the stated closing date, the utility shall forfeit the right it may have to collect from the purchaser outstanding utility charges of the former owner that were incurred before the stated closing date.

    (e) If closing occurs no later than the last date for which per diem charges may be applied, full payment of the amount plus per diem charges, shall extinguish the lien of the utility provided under RCW 56.16.100 for charges incurred prior to the date of closing.

    (f) This subsection (2) does not in any manner limit the right of a utility to obtain recovery from the former owner of the property for outstanding charges that are in excess of the estimated final billing.  However, if the estimated final billing is in excess of the amount owed as determined by an actual meter reading, the utility shall refund the amount to the former owner within seven working days of the actual reading by sending the refund in the owner's name to the last address given by the former owner.

    (g) For the purposes of this section, a "working day" is considered to be a day that the utility in question is open for business.

 

    NEW SECTION.  Sec. 7.  A new section is added to chapter 57.08 RCW to read as follows:

    (1) Unless otherwise stated in writing and separately acknowledged in writing by the purchaser, it is the responsibility of the seller of a fee interest in a single-family dwelling to satisfy upon closing the lien provided for by RCW 57.08.080.  No person serving as an escrow agent as defined in RCW 18.44.010(4), including persons authorized in RCW 18.44.020 to act without a certificate of registration, may refuse a request by the seller or purchaser of a fee interest in a single-family dwelling to administer the disbursement of closing funds necessary to satisfy a lien under RCW 57.08.080.  If an escrow agent, as specified above, handles the sale, the escrow agent shall timely request a final billing under subsection (2) of this section from all affected utilities, and inform the seller and the purchaser of all amounts for final estimated billings furnished by those utilities prior to closing.  Final billing shall include all outstanding charges.  "Charges" as used in this subsection includes all lawful charges assessed by the utility, including but not limited to consumption charges, connection charges, contributions provided for by state law, charges for meters and other equipment provided to the customer, and charges in connection with repair, replacement, or location of customer facilities.

    (2)(a) Upon request for a final billing with respect to real property that is to be sold, a utility operated by a city, town, or county that provides water, storm water, sewer, garbage, electricity, or natural gas service to the property shall provide the owner of the property or the closing agent for the sale with an estimated final billing under the conditions set forth in this section.

    (b) If the request for an estimated final billing is received by the billing office of the utility no less than seven working days before the closing date stated in the request, the utility shall provide the estimated final billing no less than one day before the stated closing date.  However, if the request is received less than seven working days before the stated closing date, the utility shall make reasonable efforts to provide the estimated final billing prior to the stated closing date.

    (c) The estimated final billing shall, in addition to stating the estimated final amount owing as of the date of the stated closing, state the average per diem rate for the utility or utilities involved, including taxes and other charges, which shall be applied for up to seven days beyond the stated date of closing in the event that the closing date is delayed.  If closing is delayed beyond seven days, a new estimated final billing must be requested.  In lieu of furnishing a revised billing, the utility may extend the number of days for which the per diem charge may be used.

    (d) If the utility fails to timely provide the estimated final billing in response to a request made no less than seven working days before the stated closing date, the utility shall forfeit the right it may have to collect from the purchaser outstanding utility charges of the former owner that were incurred before the stated closing date.

    (e) If closing occurs no later than the last date for which per diem charges may be applied, full payment of the amount plus per diem charges, shall extinguish the lien of the utility provided under RCW 57.08.080 for charges incurred prior to the date of closing.

    (f) This subsection (2) does not in any manner limit the right of a utility to obtain recovery from the former owner of the property for outstanding charges that are in excess of the estimated final billing.  However, if the estimated final billing is in excess of the amount owed as determined by an actual meter reading, the utility shall refund the amount to the former owner within seven working days of the actual reading by sending the refund in the owner's name to the last address given by the former owner.

    (g) For the purposes of this section, a "working day" is considered to be a day that the utility in question is open for business.

 

    NEW SECTION.  Sec. 8.  A new section is added to chapter 87.03 RCW to read as follows:

    (1) Unless otherwise stated in writing and separately acknowledged in writing by the purchaser, it is the responsibility of the seller of a fee interest in a single-family dwelling to satisfy upon closing the lien provided for by RCW 87.03.445.  No person serving as an escrow agent as defined in RCW 18.44.010(4), including persons authorized in RCW 18.44.020 to act without a certificate of registration, may refuse a request by the seller or purchaser of a fee interest in a single-family dwelling to administer the disbursement of closing funds necessary to satisfy a lien under RCW 87.03.445.  If an escrow agent, as specified above, handles the sale, the escrow agent shall timely request a final billing under subsection (2) of this section from all affected utilities, and inform the seller and the purchaser of all amounts for final estimated billings furnished by those utilities prior to closing.  Final billing shall include all outstanding charges.  "Charges" as used in this subsection includes all lawful charges assessed by the utility, including but not limited to consumption charges, connection charges, contributions provided for by state law, charges for meters and other equipment provided to the customer, and charges in connection with repair, replacement, or location of customer facilities.

    (2)(a) Upon request for a final billing with respect to real property that is to be sold, a utility operated by a city, town, or county that provides water, storm water, sewer, garbage, electricity, or natural gas service to the property shall provide the owner of the property or the closing agent for the sale with an estimated final billing under the conditions set forth in this section.

    (b) If the request for an estimated final billing is received by the billing office of the utility no less than seven working days before the closing date stated in the request, the utility shall provide the estimated final billing no less than one day before the stated closing date.  However, if the request is received less than seven working days before the stated closing date, the utility shall make reasonable efforts to provide the estimated final billing prior to the stated closing date.

    (c) The estimated final billing shall, in addition to stating the estimated final amount owing as of the date of the stated closing, state the average per diem rate for the utility or utilities involved, including taxes and other charges, which shall be applied for up to seven days beyond the stated date of closing in the event that the closing date is delayed.  If closing is delayed beyond seven days, a new estimated final billing must be requested.  In lieu of furnishing a revised billing, the utility may extend the number of days for which the per diem charge may be used.

    (d) If the utility fails to timely provide the estimated final billing in response to a request made no less than seven working days before the stated closing date, the utility shall forfeit the right it may have to collect from the purchaser outstanding utility charges of the former owner that were incurred before the stated closing date.

    (e) If closing occurs no later than the last date for which per diem charges may be applied, full payment of the amount plus per diem charges, shall extinguish the lien of the utility provided under RCW 87.03.445 for charges incurred prior to the date of closing.

    (f) This subsection (2) does not in any manner limit the right of a utility to obtain recovery from the former owner of the property for outstanding charges that are in excess of the estimated final billing.  However, if the estimated final billing is in excess of the amount owed as determined by an actual meter reading, the utility shall refund the amount to the former owner within seven working days of the actual reading by sending the refund in the owner's name to the last address given by the former owner.

    (g) For the purposes of this section, a "working day" is considered to be a day that the utility in question is open for business.

 


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