SENATE BILL REPORT

SHB 2544

BYHouse Committee on Local Government (originally sponsored by Representatives Nelson and Jacobsen)

Providing an alternate lien and foreclosure process for sewer charges.

House Committe on Local Government

Senate Committee on Governmental Operations

Senate Hearing Date(s):February 22, 1990

Majority Report:  Do pass.

      Signed by Senators McCaslin, Chairman; Thorsness, Vice Chairman; DeJarnatt, Patrick, Sutherland.

Senate Staff:Rod McAulay (786-7754)

                  February 26, 1990

AS REPORTED BY COMMITTEE ON GOVERNMENTAL OPERATIONS, FEBRUARY 22, 1990

BACKGROUND:

Cities and towns are authorized to provide a number of utility systems, including sewers.

Cities or towns providing sewer service have liens on the premises served by the sewer service for delinquent sewer rates and charges.  The delinquent sewer rates and charges are subject to penalties and interest on both the penalty and delinquent rates and charges, with the interest rate not to exceed 8 percent per annum.  The sewerage lien is limited to a total of not to exceed six months' delinquent rates and charges without the city filing the lien.  In order to make the lien effective for more than six months' rates and charges, the lien must be filed for record in the superior court.

SUMMARY:

The maximum interest rate that may be imposed by a city or town on delinquent sewer service rates and charges is 8 percent per year computed on a monthly basis.

A city or town using the property tax system for utility billing may adopt an ordinance providing that the sewerage lien is effective for a total of not to exceed one year, instead of six months, without the necessity of recording the lien with the county auditor.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: Charles Shell, Henry Yates, City of Seattle