AN ACT Relating to penalties and interest on delinquent utility rates or charges; amending RCW 35.67.200, 35.67.250, 36.89.090, 36.94.150, 56.16.100, and 57.08.080; adding a new section to chapter 35.21 RCW; adding a new section to chapter 35.97 RCW; adding a new section to chapter 53.08 RCW; adding a new section to chapter 54.16 RCW; adding a new section to chapter 87.03 RCW; and repealing RCW 36.89.092.

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:

Cities and towns owning their own utility systems shall have a lien for delinquent rates or charges for utility service, and a lien for delinquent connection charges, against all the property that is subject to such delinquent rates or charges. Such a lien shall include a one-time penalty and interest that are imposed in the same manner as a one-time penalty and interest are imposed on delinquent rates and charges for sewer service, and shall be foreclosed in the same manner as liens for delinquent rates and charges for sewer service are foreclosed, as provided in chapter 35.67 RCW.

Sec. 2. Section 35.67.200, chapter 7, Laws of 1965 and RCW 35.67.200 are each amended to read as follows:

Cities and towns owning their own sewer systems shall have a lien for delinquent ((~~and unpaid~~)) rates and charges for sewer service, delinquent penalties levied pursuant to RCW 35.67.190, and delinquent connection charges, including: (1) A one-time penalty of not more than ten percent on the delinquent rates, charges, or penalties, that is imposed immediately upon delinquency on all property against which the delinquent rates, charges, or penalties were levied other than a residence or residences, and imposed sixty days after the date of delinquency if the property against which the delinquent rates, charges, or penalties were levied was a residence or residences and the delinquent amount remains unpaid at that time; and (2) interest ((~~thereon~~)) on both the delinquent rates, charges, or penalties, and the one-time penalty, at a rate of not more than twelve percent per annum, with the interest on the delinquent rates, charges, or penalties levied from the date of delinquency until paid, and the interest on the one-time penalty levied from the date the penalty is imposed until paid, against the premises to which such service has been furnished or is available((~~, which~~)). Such a lien shall be superior to all other liens and encumbrances except general taxes and ((~~local and~~)) special assessments. ((~~The city or town by ordinance may provide that delinquent charges shall bear interest at not exceeding eight percent per annum.~~))

Sec. 3. Section 35.67.250, chapter 7, Laws of 1965 and RCW 35.67.250 are each amended to read as follows:

A sewerage lien foreclosure action shall be tried before the court without a jury. The court may allow ((~~in addition to interest on the service charges at a rate not exceeding eight percent per year from date of delinquency,~~)) costs and disbursements as provided by statute and such attorneys' fees as the court may adjudge reasonable.

If the owners and parties interested in any particular tract default, the court may enter judgment of foreclosure and sale as to such parties and tracts and the action may proceed as to the remaining defendants and tracts. The judgment shall specify separately the amount of the sewerage charges, with interest, penalty and costs chargeable to each tract. The judgment shall have the effect of a separate judgment as to each tract described in the judgment, and any appeal shall not invalidate or delay the judgment except as to the property concerning which the appeal is taken. In the judgment the court shall order the tracts therein described sold at one general sale, and an order of sale shall issue pursuant thereto for the enforcement of the judgment. Judgment may be entered as to any one or more separate tracts involved in the action, and the court shall retain jurisdiction of other properties.

NEW SECTION. Sec. 4. A new section is added to chapter 35.97 RCW to read as follows:

Sec. 5. Section 8, chapter 30, Laws of 1970 ex. sess. as amended by section 1, chapter 241, Laws of 1987 and RCW 36.89.090 are each amended to read as follows:

The county shall have a lien for delinquent service charges, including: (1) A one-time penalty of not more than ten percent on the delinquent service charges, that is imposed immediately upon delinquency on all the property against which the delinquent service charges were levied other than a residence or residences, and imposed sixty days after the date of delinquency if the property against which the delinquent service charges were levied was a residence or residences and the delinquent amount remains unpaid at that time; and (2) interest ((~~thereon~~)) on both the delinquent service charges and one-time penalty, at a rate of not more than twelve percent per annum, with the interest on the delinquent service charges levied from the date of delinquency until paid, and the interest on the one-time penalty levied from the date the penalty is imposed until paid, against any property against which they were levied for storm water control facilities((~~, which~~)). Such a lien shall be superior to all other liens and encumbrances except general taxes and ((~~local and~~)) special assessments. Such lien shall be effective and shall be enforced and foreclosed in the same manner as provided for sewerage liens of cities and towns by RCW 35.67.200 through 35.67.290: PROVIDED, That a county may, by resolution or ordinance, adopt all or any part of the alternative ((~~interest rate,~~)) lien((,)) and foreclosure procedures as set forth in RCW ((~~36.89.092 through~~)) 36.89.093 and 36.89.094.

The court in any foreclosure action may allow costs and disbursements as provided by statute and such attorneys' fees as the court may adjudge reasonable.

Sec. 6. Section 15, chapter 72, Laws of 1967 as amended by section 3, chapter 188, Laws of 1975 1st ex. sess. and RCW 36.94.150 are each amended to read as follows:

All counties operating a system of sewerage and/or water shall have a lien for delinquent connection charges and charges for the availability of sewerage and/or water service, ((~~together with~~)) including: (1) A one-time penalty of not more than ten percent of the delinquent charges that is imposed immediately upon all property against which the delinquent charges were levied other than a residence or residences, and imposed sixty days after the date of delinquency if the property against which the delinquent charges were levied was a residence or residences and the delinquent amount remains unpaid at that time; and (2) interest ((~~fixed by resolution at eight~~)) on both the delinquent charges, and one-time penalty, at a rate of not more than twelve percent per annum with the interest on the delinquent charges levied from the date ((~~due~~)) of delinquency until paid((~~. Penalties of not more than ten percent of the amount due may be imposed in case of failure to pay the charges at times fixed by resolution~~)), and the interest on the one-time penalty levied from the date the penalty is imposed until paid. The lien shall be for all charges, interest, and penalties and shall attach to the premises to which the services were available. The lien shall be superior to all other liens and encumbrances, except general taxes and ((~~local and~~)) special assessments ((~~of the county~~)).

The county department established in RCW 36.94.120 shall certify periodically the delinquencies to the treasurer of the county at which time the lien shall attach.

Upon the expiration of sixty days after the attachment of the lien, the county may bring suit in foreclosure by civil action in the superior court of the county where the property is located. In addition to the costs and disbursements provided by statute, the court may allow the county a reasonable attorney's fee. The lien shall be foreclosed in the same manner as the foreclosure of real property tax liens.

NEW SECTION. Sec. 7. A new section is added to chapter 53.08 RCW to read as follows:

Port districts owning their own utility systems shall have a lien for delinquent rates or charges for utility service, and a lien for delinquent connection charges, against all the property that is subject to such delinquent rates or charges. Such a lien shall include a one-time penalty and interest that are imposed in the same manner as a one-time penalty and interest are imposed on delinquent rates and charges for sewer service by cities, and shall be foreclosed in the same manner as liens for delinquent rates and charges for sewer service by cities are foreclosed, as provided in chapter 35.67 RCW.

NEW SECTION. Sec. 8. A new section is added to chapter 54.16 RCW to read as follows:

Public utility districts owning their own utility systems shall have a lien for delinquent rates or charges for utility service, and a lien for delinquent connection charges, against all the property that is subject to such delinquent rates or charges. Such a lien shall include a one-time penalty and interest that are imposed in the same manner as a one-time penalty and interest are imposed on delinquent rates and charges for sewer service by cities, and shall be foreclosed in the same manner as liens for delinquent rates and charges for sewer service by cities are foreclosed, as provided in chapter 35.67 RCW.

Sec. 9. Section 23, chapter 210, Laws of 1941 as last amended by section 6, chapter 300, Laws of 1977 ex. sess. and RCW 56.16.100 are each amended to read as follows:

The commissioners shall enforce collection of the sewer connection charges and sewerage disposal service charges against property to which and its owners to whom the service is available, such charges being deemed charges against the property to which the service is available, by addition of ((~~penalties~~)): (1) A one-time penalty of not more than ten percent thereof ((~~in case of failure to pay the charges at times fixed by resolution~~)) that is imposed immediately upon delinquency on all property against which the delinquent charges were levied other than a residence or residences, and imposed sixty days after the date of delinquency if the property against which the delinquent charges were levied was a residence or residences and the delinquent amount remains unpaid at that time; and (2) interest on both the delinquent charges, and one-time penalty, at a rate of not more than twelve percent per annum, with the interest on the delinquent charges levied from the date of delinquency until paid, and interest on the one-time penalty levied from the date the penalty is imposed until paid. The commissioners may provide by resolution that where either sewer connection charges or sewer service charges are delinquent for any specified period of time, the district shall certify the delinquencies to the treasurer of the county in which the real property is located, and the charges and any penalties added thereto and interest thereon ((~~at the rate fixed by resolution,~~)) shall be a lien against the property to which the service was available, subject only to the lien for general taxes and special assessments.

Sec. 10. Section 2, chapter 108, Laws of 1959 as amended by section 12, chapter 17, Laws of 1982 1st ex. sess. and RCW 57.08.080 are each amended to read as follows:

The commissioners shall enforce collection of the water connection charges and rates and charges for water supplied against property owners connecting with the system and/or receiving such water, such charges being deemed charges against the property served, by addition of ((~~penalties~~)): (1) A one-time penalty of not more than ten percent thereof ((~~in case of failure to pay the charges at times fixed by resolution~~)) that is imposed immediately upon delinquency on all property against which the delinquent rates or charges were levied other than a residence or residences, and imposed sixty days after the date of delinquency if the property against which the delinquent rates or charges were levied was a residence or residences and the delinquent amount remains unpaid at that time; and (2) interest on both the delinquent rates or charges, and one-time penalty, at a rate of not more than twelve percent per annum, with the interest on the delinquent rates or charges levied from the date of delinquency until due, and the interest on the one-time penalty levied from the date the penalty is imposed until paid. The commissioners may provide by resolution that where either water connection charges or rates and charges for water supplied are delinquent for any specified period of time, the district shall certify the delinquencies to the treasurer of the county in which the real property is located, and the charges and any penalties added thereto and interest thereon ((~~at the rate of not more than eight percent per year~~)) shall be a lien against the property upon which the service was received, subject only to the lien for general taxes and special assessments.

NEW SECTION. Sec. 11. A new section is added to chapter 87.03 RCW to read as follows:

Irrigation districts owning their own utility systems shall have a lien for delinquent rates or charges for utility service, and a lien for delinquent connection charges, against all the property that is subject to such delinquent rates or charges. Such a lien shall include a one-time penalty and interest that are imposed in the same manner as a one-time penalty and interest are imposed on delinquent rates and charges for sewer service by cities, and shall be foreclosed in the same manner as liens for delinquent rates and charges for sewer service by cities are foreclosed, as provided in chapter 35.67 RCW.

NEW SECTION. Sec. 12. Section 2, chapter 241, Laws of 1987 and RCW 36.89.092 are each repealed.