H-4085.1  _______________________________________________

 

                    SUBSTITUTE HOUSE BILL 2691

          _______________________________________________

 

State of Washington      57th Legislature     2002 Regular Session

 

By House Committee on Technology, Telecommunications & Energy (originally sponsored by Representative Crouse)

 

Read first time 02/05/2002.  Referred to Committee on .

Reducing a property owner's liability for tenant's delinquent charges.


    AN ACT Relating to a property owner's liability for delinquent and unpaid water and electric utility charges; and amending RCW 35.21.217 and 35.21.300.

 

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

 

    Sec. 1.  RCW 35.21.217 and 1998 c 285 s 1 are each amended to read as follows:

    (1) Prior to furnishing utility services, a city or town may require a deposit to guarantee payment for services.  However, failure to require a deposit does not affect the validity of any lien authorized by RCW 35.21.290 or 35.67.200.  A city or town may determine how to apply partial payments on past due accounts.

    (2) A city or town may provide a real property owner or the owner's designee with duplicates of tenant utility service bills, or may notify an owner or the owner's designee that a tenant's utility account is delinquent.  However, if an owner or the owner's designee notifies the city or town in writing that a property served by the city or town is a rental property, asks to be notified of a tenant's delinquency, and has provided, in writing, a complete and accurate mailing address, the city or town shall notify the owner or the owner's designee of a tenant's delinquency at the same time and in the same manner the city or town notifies the tenant of the tenant's delinquency or by mail.  When a city or town provides a real property owner or the owner's designee with duplicates of tenant utility service bills or notice that a tenant's utility account is delinquent, the city or town shall notify the tenant that it is providing the duplicate bills or delinquency notice to the owner or the owner's designee.  After January 1, 1999, if a city or town fails to notify the owner of a tenant's delinquency after receiving a written request to do so and after receiving the other information required by this subsection, the city or town shall have no lien against the premises for the tenant's delinquent and unpaid charges.

    (3) After January 1, 2003, a city or town may not collect from the property owner in any manner for more than four months of a tenant's delinquent and unpaid utility charges for water or electric utility services if the city or town has received a written request for notice of delinquency from the property owner and has received all other information required under this section.  If, as of the effective date of this act, a city or town bills customers for providing water or electric utility service on a cycle of once every two months, the total delinquent tenant charges that a city or town may collect in any manner from the property owner shall not exceed six months of a tenant's delinquent and unpaid utility charges.

 

    Sec. 2.  RCW 35.21.300 and 1995 c 399 s 36 are each amended to read as follows:

    (1) The lien for charges for service by a city waterworks, or electric light or power plant, may be enforced only by cutting off the service until the delinquent and unpaid charges are paid((, except that)).  However, until June 30, 1991, utility service for residential space heating may be terminated between November 15 and March 15 only as provided in subsections (2) and (4) of this section and, after January 1, 2003, unpaid utility charges for services provided to a tenant may be collected from the property owner only as provided in RCW 35.21.217(3).  In the event of a disputed account and tender by the owner of the premises of the amount the owner claims to be due before the service is cut off, the right to refuse service to any premises shall not accrue until suit has been entered by the city and judgment entered in the case.

    (2) Utility service for residential space heating shall not be terminated between November 15 through March 15 if the customer:

    (a) Notifies the utility of the inability to pay the bill, including a security deposit.  This notice should be provided within five business days of receiving a payment overdue notice unless there are extenuating circumstances.  If the customer fails to notify the utility within five business days and service is terminated, the customer can, by paying reconnection charges, if any, and fulfilling the requirements of this section, receive the protections of this chapter;

    (b) Provides self-certification of household income for the prior twelve months to a grantee of the department of community, trade, and economic development which administers federally funded energy assistance programs.  The grantee shall determine that the household income does not exceed the maximum allowed for eligibility under the state's plan for low-income energy assistance under 42 U.S.C. 8624 and shall provide a dollar figure that is seven percent of household income.  The grantee may verify information in the self-certification;

    (c) Has applied for home heating assistance from applicable government and private sector organizations and certifies that any assistance received will be applied to the current bill and future utility bills;

    (d) Has applied for low-income weatherization assistance to the utility or other appropriate agency if such assistance is available for the dwelling;

    (e) Agrees to a payment plan and agrees to maintain the payment plan.  The plan will be designed both to pay the past due bill by the following October 15 and to pay for continued utility service.  If the past due bill is not paid by the following October 15, the customer shall not be eligible for protections under this chapter until the past due bill is paid.  The plan shall not require monthly payments in excess of seven percent of the customer's monthly income plus one-twelfth of any arrearage accrued from the date application is made and thereafter during November 15 through March 15.  A customer may agree to pay a higher percentage during this period, but shall not be in default unless payment during this period is less than seven percent of monthly income plus one-twelfth of any arrearage accrued from the date application is made and thereafter.  If assistance payments are received by the customer subsequent to implementation of the plan, the customer shall contact the utility to reformulate the plan; and

    (f) Agrees to pay the moneys owed even if he or she moves.

    (3) The utility shall:

    (a) Include in any notice that an account is delinquent and that service may be subject to termination, a description of the customer's duties in this section;

    (b) Assist the customer in fulfilling the requirements under this section;

    (c) Be authorized to transfer an account to a new residence when a customer who has established a plan under this section moves from one residence to another within the same utility service area;

    (d) Be permitted to disconnect service if the customer fails to honor the payment program.  Utilities may continue to disconnect service for those practices authorized by law other than for nonpayment as provided for in this section.  Customers who qualify for payment plans under this section who default on their payment plans and are disconnected can be reconnected and maintain the protections afforded under this chapter by paying reconnection charges, if any, and by paying all amounts that would have been due and owing under the terms of the applicable payment plan, absent default, on the date on which service is reconnected; and

    (e) Advise the customer in writing at the time it disconnects service that it will restore service if the customer contacts the utility and fulfills the other requirements of this section.

    (4) All municipal utilities shall offer residential customers the option of a budget billing or equal payment plan.  The budget billing or equal payment plan shall be offered low-income customers eligible under the state's plan for low-income energy assistance prepared in accordance with 42 U.S.C. 8624(C)(1) without limiting availability to certain months of the year, without regard to the length of time the customer has occupied the premises, and without regard to whether the customer is the tenant or owner of the premises occupied.

    (5) An agreement between the customer and the utility, whether oral or written, shall not waive the protections afforded under this chapter.

 


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