BILL REQ. #:  H-3448.1 

Read first time 01/22/14.   Referred to Committee on Judiciary.

     AN ACT Relating to county electronic public auctions; amending RCW 84.64.080 and 84.64.200; reenacting and amending RCW 36.16.140; and adding new sections to chapter 84.64 RCW.

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

Sec. 1   RCW 84.64.080 and 2004 c 79 s 7 are each amended to read as follows:
     The court ((shall)) must examine each application for judgment foreclosing tax lien, and if defense (specifying in writing the particular cause of objection) be offered by any person interested in any of the lands or lots to the entry of judgment against the same, the court ((shall)) must hear and determine the matter in a summary manner, without other pleadings, and ((shall)) must pronounce judgment as the right of the case may be; or the court may, in its discretion, continue such individual cases, wherein defense is offered, to such time as may be necessary, in order to secure substantial justice to the contestants therein; but in all other cases the court ((shall)) must proceed to determine the matter in a summary manner as above specified. In all judicial proceedings of any kind for the collection of taxes, and interest and costs thereon, all amendments which by law can be made in any personal action pending in such court ((shall)) must be allowed, and no assessments of property or charge for any of the taxes ((shall)) may be considered illegal on account of any irregularity in the tax list or assessment rolls or on account of the assessment rolls or tax list not having been made, completed or returned within the time required by law, or on account of the property having been charged or listed in the assessment or tax lists without name, or in any other name than that of the owner, and no error or informality in the proceedings of any of the officers connected with the assessment, levying or collection of the taxes, ((shall)) must vitiate or in any manner affect the tax or the assessment thereof, and any irregularities or informality in the assessment rolls or tax lists or in any of the proceedings connected with the assessment or levy of such taxes or any omission or defective act of any officer or officers connected with the assessment or levying of such taxes, may be, in the discretion of the court, corrected, supplied and made to conform to the law by the court. The court ((shall)) must give judgment for such taxes, interest and costs as shall appear to be due upon the several lots or tracts described in the notice of application for judgment or complaint, and such judgment ((shall)) must be a several judgment against each tract or lot or part of a tract or lot for each kind of tax included therein, including all interest and costs, and the court ((shall)) must order and direct the clerk to make and enter an order for the sale of such real property against which judgment is made, or vacate and set aside the certificate of delinquency or make such other order or judgment as in the law or equity may be just. The order ((shall)) must be signed by the judge of the superior court, ((shall)) must be delivered to the county treasurer, and ((shall)) must be full and sufficient authority for him or her to proceed to sell the property for the sum as set forth in the order and to take such further steps in the matter as are provided by law. The county treasurer ((shall)) must immediately after receiving the order and judgment of the court proceed to sell the property as provided in this chapter to the highest and best bidder ((for cash)). The acceptable minimum bid ((shall)) must be the total amount of taxes, interest, and costs. All sales ((shall)) must be made at a location in the county on a date and time (except Saturdays, Sundays, or legal holidays) as the county treasurer may direct and/or including the electronic address if the intended sale is by public auction via the internet or other electronic media, and ((shall)) must continue from day to day (Saturdays, Sundays, and legal holidays excepted) during the same hours until all lots or tracts are sold, after first giving notice of the time, and place where such sale is to take place for ten days successively by posting notice thereof in three public places in the county, one of which ((shall)) must be in the office of the treasurer. The treasurer may require a good faith deposit in order for an individual to participate in the auction. Deposits from a winning bidder must be applied to the balance due. If the winning bidder does not follow the terms of sale, the deposit would be forfeited and credited to the treasurer's operations and maintenance fund. Deposits for all nonwinning bids must be refunded within ten business days. The notice ((shall)) must be substantially in the following form:

NEW SECTION.  Sec. 2   A new section is added to chapter 84.64 RCW to read as follows:
     (1) The county treasurer may at his or her discretion accept electronic funds transfers under RCW 82.32.085 in payment for a purchase at a tax sale of any tax, assessment, fees or charges. A public auction conducted by electronic media, including internet, to sell property under this chapter must have at least the following operational components:
     (a) A component that allows bids to be submitted by computer;
     (b) A component that authorizes the county treasurer to accept bids for as long as he or she deems necessary.
     (2) All property sold under this chapter is offered and sold as is. The county treasurer in preparing, conducting, and executing a sale of property under this chapter is not liable for any of the following:
     (a) Known or unknown conditions of this property including, but not limited to, errors in the assessor's records;
     (b) The failure of a device that is not owned, operated, and managed by the county, that prevents a person from participating in any sale under this chapter. For purposes of this subsection (2)(b), "device" includes, but is not limited to, telephone, computer hardware, a computer network, a computer software application, and a computer web site.

NEW SECTION.  Sec. 3   A new section is added to chapter 84.64 RCW to read as follows:
     The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Auction" means a sale transaction conducted by means of oral or written exchanges, which include exchanges made in person or through electronic media, between an auctioneer and the members of his or her audience in person, or through the internet, which exchanges consist of a series of invitations for offers for the purchase of goods made by the auctioneer and offers to purchase made by the members of the audience and/or internet and culminate in the acceptance by the auctioneer of the highest or most favorable offer made. Bids are placed using a computer and a web browser.
     (2) "Close of auction" means the date and time for which the county treasurer, or his or her designee, provides public notice that bidding for that public auction will end.
     (3) "Date of the sale" means the date upon which a public auction begins.
     (4) "Internet tax sale" means an online public auction of tax deeds used to collect delinquent real property taxes due to a county or other taxing authority.
     (5) "Public auction" means any venue or medium to sell property under this chapter that provides reasonable access to the public to bid on and purchase tax foreclosed property.

Sec. 4   RCW 84.64.200 and 2007 c 295 s 7 are each amended to read as follows:
     ((All lots, tracts and parcels of land upon which taxes levied prior to January 9, 1926 remain due and unpaid at the date when such taxes would have become delinquent as provided in the act under which they were levied shall be deemed to be delinquent under the provisions of this title, and the same proceedings may be had to enforce the payment of such unpaid taxes, with interest and costs, and payment enforced and liens foreclosed under and by virtue of the provisions of this chapter. )) For the purposes of foreclosure under this chapter, the date of delinquency ((shall)) must be construed to mean the date when the taxes first became delinquent. At all sales of property for which certificates of delinquency are held by the county, if no other bids are received, the county ((shall)) must be considered a bidder for the full area of each tract or lot to the amount of all taxes, interest and costs due thereon, and where no bidder appears, acquire title in trust for the taxing districts as absolutely as if purchased by an individual under the provisions of this chapter; all bidders except the county at sales of property for which certificates of delinquency are held by the county ((shall)) must pay the full amount of taxes, interest and costs for which judgment is rendered, together with all taxes, interest and costs which are delinquent at the time of sale, regardless of whether the taxes, interest, or costs are included in the judgment.

Sec. 5   RCW 36.16.140 and 1991 c 363 s 50 and 1991 c 245 s 3 are each reenacted and amended to read as follows:
     Other than property tax lien sales under this chapter, public auction sales of property conducted by or for the county ((shall)) must be held at such places as the county legislative authority may direct.