BILL REQ. #: H-1060.1
State of Washington | 62nd Legislature | 2011 Regular Session |
Read first time 01/27/11. Referred to Committee on Local Government.
AN ACT Relating to lien authority of public utility districts providing water or sewer service; amending RCW 60.80.005, 60.80.010, and 60.80.020; and adding a new section to chapter 54.24 RCW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 A new section is added to chapter 54.24 RCW
to read as follows:
(1) The commissioners may enforce collection of connection charges,
and rates and charges for water supplied against property owners
connecting with the system or receiving such water, and for sewer
services charged against property to which and its owners to whom the
service is available, such charges being deemed charges against the
property served, by addition of penalties of not more than ten percent
thereof in case of failure to pay the charges at times fixed by
resolution and interest at the rate of eight percent per annum on such
delinquent charges.
(2) Except as provided in subsection (3) of this section, the
commissioners may, in their discretion, provide by resolution that
where the rates and charges for services supplied are delinquent for
any specified period of time, the district shall certify the
delinquencies to the auditor of the county where the real property is
located, and the charges and interest thereon at a rate of eight
percent per annum, and penalties shall be a lien against the real
property upon which service was received, provided that said real
property is correctly described in the certification and subject only
to the lien for general taxes.
(3) No liens may be made on real property for charges as described
in subsection (1) of this section, if such charges are for services
provided to a residence occupied by the owner who is a person of low
income at time of certification by the district in subsection (2) of
this section. For the purposes of this section a person of low income
is a person who individually or as a family occupying the residence has
an income level that does not exceed one hundred twenty-five percent of
the federal poverty guidelines adopted by the United States department
of health and human services and published in the federal register.
(4) If the rates and charges remain unpaid after the certification
of the delinquencies to the auditor of the county in which the property
is located for thirty days after the certification, then the district
may bring suit in foreclosure by civil action in superior court in the
county in which the real property is located. The court shall allow,
in addition to the costs and disbursements provided by statute,
reasonable attorneys' fees, reasonable fees for title search, and other
such expenses and such other costs that the court determines to be
reasonable. This action shall be an action in rem and may be brought
in the name of the district against the individuals who are delinquent
and may be brought in one action. The laws and rules of the court
shall control as in other civil actions.
Sec. 2 RCW 60.80.005 and 2004 c 215 s 7 are each amended to read
as follows:
Unless the context clearly requires otherwise, the definitions in
this section apply throughout this chapter:
(1) Except as otherwise provided in this subsection (1), "charges"
include: (a) All lawful charges assessed by a utility operated under
chapter 35.21, 35.67, 36.36, 36.89, 36.94, 54.16, or 57.08 RCW, but not
evidenced by a recorded lien, recorded covenant, recorded agreement, or
special assessment roll filed with the city or county treasurer or
assessor, and not billed and collected with property taxes; and (b)
penalties and interest, and reasonable attorneys' fees and other costs
of foreclosure if foreclosure proceedings have been commenced.
(2) "Closing agent" means an escrow agent as defined in RCW
18.44.011(((6))) (7) or a person exempt from licensing requirements
under RCW 18.44.021, handling the escrow on the sale of the real
property.
(3) "Real estate agent" means a real estate broker, real estate
salesperson, associate real estate broker, or person as defined in RCW
18.85.010 (1) through (4).
(4) "Business day" means a day the offices of the county or
counties in which the utility in question provides service are open for
business.
Sec. 3 RCW 60.80.010 and 2004 c 215 s 8 are each amended to read
as follows:
(1) Unless otherwise stated and acknowledged in writing by the
purchaser, the seller of a fee interest in real property is responsible
for satisfying, upon closing, any lien provided for by RCW 35.21.290,
35.67.200, 36.36.045, ((36.89.090, or)) 36.89.065, 36.94.150, or
section 1 of this act.
(2) No closing agent may refuse a written request by the seller or
purchaser of a fee interest in real property to administer the
disbursement of closing funds necessary to satisfy unpaid charges as
charges are defined in RCW 60.80.005. Except as otherwise provided in
this subsection (2), a closing agent who refuses such a written request
is liable to the purchaser for unpaid charges for utility services
covered by the request. A closing agent is not liable if the closing
agent's refusal is based on the seller's inaccurate or incomplete
identification of utilities providing service to the property, or if a
utility fails to provide an estimated or actual final billing, or
written extension of the per diem rate, as required by RCW 60.80.020,
or if disbursement of closing funds necessary to satisfy the unpaid
charges would violate RCW 18.44.400.
(3) A closing agent may charge a fee for performing the services
required of the closing agent by this chapter, which fee may be in
addition to other fees or settlement charges collected in the course of
ordinary settlement practices.
Sec. 4 RCW 60.80.020 and 2004 c 215 s 9 are each amended to read
as follows:
(1) Unless the seller and purchaser waive, in writing, the services
of a closing agent in administering the disbursement of closing funds
necessary to satisfy unpaid charges as charges are defined in RCW
60.80.005, the seller shall, as a provision in a written agreement for
the purchase and sale of real estate, inform the closing agent for the
sale of the names and addresses of all utilities, including special
districts, providing service to the property under chapter 35.21,
35.67, 36.36, 36.89, 36.94, 54.16, or 57.08 RCW. The provision of the
information in a written agreement for the purchase and sale of real
estate constitutes a written request to the closing agent to administer
disbursement of closing funds necessary to satisfy unpaid charges.
Unless the seller and purchaser have waived the services of a
closing agent as provided in this subsection, the closing agent shall
submit a written request for a final billing to each utility identified
by the seller as providing service to the property under chapter 35.21,
35.67, 36.36, 36.89, 36.94, 54.16, or 57.08 RCW. Either the seller or
purchaser may submit a written request for a final billing to each
utility identified by the seller as providing service to the property
under chapter 35.21, 35.67, 36.36, 36.89, 36.94, 54.16, or 57.08 RCW.
The written request must identify the property by both legal
description and address. The closing agent, seller, or purchaser may
submit a written request to a utility by facsimile. In requesting
final billings for utility services, the closing agent may rely upon
information provided by the seller, and a closing agent or a real
estate agent who is not the seller is not liable for inaccurate or
incomplete information.
(2) After receiving a written request for a final billing for
utility services to real property to be sold, a utility operated under
chapter 35.21, 35.67, 36.36, 36.89, 36.94, 54.16, or 57.08 RCW shall
provide the requesting party with a written estimated or actual final
billing as provided in this section. If the utility is unable to
provide a written estimated or actual final billing or written
extension of the per diem rate, due to insufficient information to
identify the account, the utility shall notify the requesting party in
writing that the information is insufficient to identify the account.
The utility shall provide the written estimated or actual final
billing, or statement that the information in the request is
insufficient to identify the account, to the requesting party within
seven business days of receipt of the written request if the request
was mailed to the utility, or within three business days if the request
was sent to the utility by facsimile or delivered to the utility by
messenger. A utility may provide a written estimated or actual final
billing to the requesting party by facsimile.
(a) The final billing must include all outstanding charges and, in
addition to the estimated or actual final amount owing as of the stated
closing date, must state the average per diem rate for the utility or
utilities involved, including taxes and other charges, which shall
apply for up to thirty days beyond the stated closing date if the
closing date is delayed.
(b) If closing is delayed beyond thirty days, a new estimated or
actual final billing must be requested in writing. In lieu of
furnishing a written revised final billing, the utility may extend, in
writing, the number of days for which the per diem charge applies. The
utility shall respond within seven business days of receipt of the
written request for a new estimated or actual final billing if the
request was mailed to the utility, or within three business days if the
request was sent to the utility by facsimile or delivered to the
utility by messenger.
(c) If a utility fails to provide a written estimated or actual
final billing, written extension of the per diem rate, or statement
that the information in the request is insufficient to identify the
account, within seven business days of receipt of a written request if
the request was mailed to the utility, or within three business days if
the request was sent to the utility by facsimile or delivered to the
utility by messenger, an unrecorded lien provided for by RCW 35.21.290,
35.67.200, 36.36.045, ((36.89.090, or)) 36.89.065, 36.94.150, or
section 1 of this act for charges incurred prior to the closing date is
extinguished, and the utility may not recover the charges from the
purchaser of the property.
(d) A closing agent shall inform the seller and purchaser of all
applicable estimated and actual final billings furnished by utilities.
In performing his or her duties under this chapter, a closing agent
may rely upon information provided by utilities and is not liable if
information provided by utilities is inaccurate or incomplete.
(3) If closing occurs no later than the last date for which per
diem charges may be applied, full payment of the estimated or actual
final billing plus per diem charges extinguishes a lien of the utility
provided for by RCW 35.21.290, 35.67.200, 36.36.045, ((36.89.090, or))
36.89.065, 36.94.150, or section 1 of this act for charges incurred
prior to the closing date.
(4)(a) Except as otherwise provided in this subsection (4)(a), this
section does not limit the right of a utility to recover from the
purchaser of the property unpaid utility charges incurred prior to
closing, if the utility did not receive a written request for a final
billing or if the utility complied with subsection (2) of this section.
A utility may not recover from a purchaser unpaid utility charges
incurred prior to closing in excess of an estimated final billing.
(b) This section does not limit the right of a utility to recover
unpaid utility charges incurred prior to closing, including unpaid
utility charges in excess of an estimated final billing, from the
seller of the property, or from the person or persons who incurred the
charges.
(c) If an estimated final billing is in excess of the actual final
billing, unless otherwise directed in writing by the seller and
purchaser, a utility shall refund any overcharge to the seller of the
property by sending the refund in the seller's name to the last address
provided by the seller. A utility shall refund the overcharge within
fourteen business days of the date the utility receives payment for the
final billing, unless a county treasurer acts in an ex officio capacity
as the treasurer of a utility, in which case the utility shall refund
the overcharge within thirty business days of the date the utility
receives payment for the final billing.