5016-S AMH EN H4420.2

5016-S AMH EN H4420.2

SSB 5016 - H COMM AMD

By Committee on Energy & Utilities

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. A new section is added to chapter 35.21 RCW to read as follows:

(1) For residential premises only, the property of a landlord is not subject to a lien under RCW 35.21.290, 35.67.200, or 36.94.150 if, prior to the commencement of a rental agreement between a landlord and a tenant in which the tenant is responsible under the agreement for the payment of utility charges, the landlord notifies the affected utility in writing of the tenants' responsibility for such charges and provides such information as reasonably required by the utility. For this section to be in effect the landlord must also notify the utility in writing of the termination of the rental agreement prior to such termination, or upon the tenant's vacating the property, whichever occurs first.

(2) The provisions of this section only apply to utilities that operate a residential security deposit system. A "residential security deposit system" means a uniform system of screening customers, or a class of customers of which the tenant in question is a member, and setting and collecting deposit requirements based upon such screening.

Sec. 2. RCW 35.21.290 and 1965 c 7 s 35.21.290 are each amended to read as follows:

(1) Cities and towns owning their own waterworks, or electric light or power plants shall have a lien against the premises to which water, electric light, or power services were furnished for four months charges therefor due or to become due, but not for any charges more than four months past due: PROVIDED, That the owner of the premises or the owner of a delinquent mortgage thereon may give written notice to the superintendent or other head of such works or plant to cut off service to such premises accompanied by payment or tender of payment of the then delinquent and unpaid charges for such service against the premises together with the cut-off charge, whereupon the city or town shall have no lien against the premises for charges for such service thereafter furnished, nor shall the owner of the premises or the owner of a delinquent mortgage thereon be held for the payment thereof.

(2) A city or town electric or water utility shall furnish information relating to a customer's current billing status and payment history with the utility for the preceding twelve-month period, including any unpaid delinquencies to the customer within seven working days of receipt of the request from the customer. The utility may verify, upon request of a landlord, any utility information supplied by a prospective tenant to the landlord. The utility may in addition furnish the information to other public or private utilities or a utility information network, provided that the customer is timely mailed a copy of the information furnished and advised of the opportunity to dispute any of the information furnished by filing written objections with the utility. If objections are filed, the utility shall promptly investigate the objections and notify the utility or information network to whom the information was furnished if corrections are required. The utility may charge the customer who requests a current billing status, including any unpaid delinquencies a reasonable fee for providing the information but may at its discretion waive the fee. For the purposes of this section, the term "customer" shall include the owner of the property served if the owner would be held responsible for outstanding charges not paid by the person named in the utility account. Credit information and reports must be compiled, recorded, kept, and disseminated in accordance with chapter 19.182 RCW.

(3) A city or town furnishing service to a premises in the name of a tenant shall provide the tenant and landlord, if the latter so requests, a copy of unpaid delinquency notices and the final closing bill for the service. The request by a landlord must be in writing and shall remain effective until the utility is otherwise notified by the landlord. It is the responsibility of the landlord to notify the utility of a change of address. The utility shall provide a copy of the final closing bill within seven working days of the date of termination of the account or within seven working days of a landlord's request, if the request is made subsequent to termination of the account. Copies of the billing may be sent by mail or a more expeditious means to the last known address of the tenant or landlord.

(4) If a former customer has an outstanding utility charge from a prior account and subsequently applies to open or opens a new account with the utility, the utility may require payment of the outstanding charge prior to opening the account or may transfer the outstanding charge to the customer's new account. If a new account is opened and the outstanding charge or current service charges are not timely paid, the utility may exercise the authority it has to disconnect service as if the outstanding charge had been incurred on the new account. This section does not limit the former customer's right to contest whether the outstanding charges are lawfully owed and shall not be construed to transfer the prior obligations of the former customer to the owner of property subsequently rented by the former customer. This section does not apply to low-income customers. Low-income customers may be defined by the city or town or, if not, are households which have a total income below eighty percent of the median household income in the county or standard metropolitan statistical area where the household is located, whichever is greater.

(5) For residential property only, if a landlord establishes that a utility has not made a good faith effort to provide the information or notices requested by the landlord under subsections (2) and (3) of this section, then any lien imposed on that premises under subsection (1) of this section for charges assessed to the existing tenant during the time of noncompliance shall be dissolved. If the landlord becomes aware that information or a notice was not sent, the period of noncompliance shall not run longer than seven days after the landlord becomes so aware, unless the landlord notifies the utility within that period that the information or notice was not sent. "Good faith effort" may be established by record of electronic notation or any other reasonable evidence of efforts to comply.

(6) Liens created in this section are subject to section 1 of this act.

Sec. 3. RCW 35.67.200 and 1991 c 36 s 2 are each amended to read as follows:

(1) Cities and towns owning their own sewer systems shall have a lien for delinquent and unpaid rates and charges for sewer service, penalties levied pursuant to RCW 35.67.190, and connection charges, including interest thereon, against the premises to which such service has been furnished or is available, which 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 computed on a monthly basis: PROVIDED, That a city or town using the property tax system for utility billing may, by resolution or ordinance, adopt the alternative lien procedure as set forth in RCW 35.67.215.

(2) Cities and towns shall furnish information relating to a customer's current billing status and payment history with utility for the preceding twelve-month period, including any unpaid delinquencies to the customer within seven working days of receipt of the request from the customer. The utility may verify, upon request of a landlord, any utility information supplied by a prospective tenant to the landlord. Cities and towns may in addition furnish the information to public or private utilities or a utility information network, provided that the customer is timely mailed a copy of the information furnished and advised of the opportunity to dispute any of the information furnished by filing written objections with the city or town. If objections are filed, the city or town shall promptly investigate the objections and notify the utility or information network to whom the information was furnished if corrections are required. The city or town may charge the customer who requests a current billing status, including any unpaid delinquencies a reasonable fee for providing such information but may at its discretion waive the fee. For the purposes of this section, the term "customer" shall include the owner of the property served if the owner would be held responsible for outstanding charges not paid by the person named in the utility account. Credit information and reports must be compiled, recorded, kept, and disseminated in accordance with chapter 19.182 RCW.

(3) A city or town furnishing service to a premises in the name of a tenant shall provide the tenant and landlord, if the latter so requests, a copy of unpaid delinquency notices and the final closing bill for the service. The request by a landlord must be in writing and shall remain effective until the city or town is otherwise notified by the landlord. It is the responsibility of the landlord to notify the city or town of a change of address. The city or town shall provide a copy of the final closing bill within seven working days of the date of termination of the account or within seven working days of a landlord's request, if the request is made subsequent to termination of the account. Copies of the billing may be sent by mail or a more expeditious means to the last known address of the tenant or landlord.

(4) If a former customer has an outstanding utility charge from a prior account and subsequently applies to open or opens a new account with the utility, the utility may require payment of the outstanding charge prior to opening the account or may transfer the outstanding charge to the customer's new account. If a new account is opened and the outstanding charge or current service charges are not timely paid, the utility may exercise the authority it has as if the outstanding charge had been incurred on the new account. This section does not limit the former customer's right to contest whether the outstanding charges are lawfully owed and shall not be construed to transfer the prior obligations of the former customer to the owner of property subsequently rented by the former customer. This section does not apply to low-income customers. Low-income customers may be defined by the city or town or, if not, are households which have a total income below eighty percent of the median household income in the county or standard metropolitan statistical area where the household is located, whichever is greater.

(6) Liens created in this section are subject to section 1 of this act.

Sec. 4. RCW 36.94.150 and 1975 1st ex.s. c 188 s 3 are each amended to read as follows:

(1) 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 interest fixed by resolution at eight percent per annum from the date due 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. 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.

(2) Counties shall furnish information relating to a customer's current billing status and payment history with the utility for the preceding twelve-month period, including any unpaid delinquencies to the customer within seven working days of receipt of the request from the customer. The utility may verify, upon request of a landlord, any utility information supplied by a prospective tenant to the landlord. Counties may in addition furnish the information to public or private utilities or a utility information network, provided that the customer is timely mailed a copy of the information furnished and advised of the opportunity to dispute the information furnished by filing written objections with the county. If objections are filed, the county shall promptly investigate the objections and notify the utility or information network to whom the information was furnished if corrections are required. The county may charge the customer who requests a current billing status, including any unpaid delinquencies a reasonable fee for providing the information but may at its discretion waive the fee. For the purposes of this section, the term "customer" shall include the owner of the property served if the owner would be held responsible for outstanding charges not paid by the person named in the utility account. Credit information and reports must be compiled, recorded, kept, and disseminated in accordance with chapter 19.182 RCW.

(3) Counties furnishing service to a premises in the name of a tenant shall provide the tenant and landlord, if the latter so requests, a copy of unpaid delinquency notices and the final closing bill for the service. The request by a landlord must be in writing and shall remain effective until the county is otherwise notified by the landlord. It is the responsibility of the landlord to notify the county of a change of address. The county shall provide a copy of the final closing bill within seven working days of the date of termination of the account or within seven working days of a landlord's request, if the request is made subsequent to termination of the account. Copies of the billing may be sent by mail or a more expeditious means to the last known address of the tenant or landlord.

(4) If a former customer has an outstanding utility charge from a prior account and subsequently applies to open or opens a new account with the county, the county may require payment of the outstanding charge prior to opening the account or may transfer the outstanding charge to the customer's new account. If a new account is opened and the outstanding charge or current service charges are not timely paid, the county may exercise the authority it has to disconnect water service as if the outstanding charge had been incurred on the new account. This section does not limit the former customer's right to contest whether the outstanding charges are lawfully owed and shall not be construed to transfer the prior obligations of the former customer to the owner of property subsequently rented by the former customer. This section does not apply to low-income customers. Low-income customers may be defined by the city or town or, if not, are households which have a total income below eighty percent of the median household income in the county or standard metropolitan statistical area where the household is located, whichever is greater.

(6) Liens created in this section are subject to section 1 of this act.

NEW SECTION. Sec. 5. Sewer districts, established under Title 56 RCW, and water districts, established under Title 57 RCW, shall review customer billing information, and information sharing with landlords and other utilities, and other means of addressing delinquent payments by customers and report to the energy and utilities committees of the senate and house of representatives with recommendations by October 1, 1994.

NEW SECTION. Sec. 6. A new section is added to chapter 35.21 RCW to read as follows:

After the effective date of this section and except for charges to residential premises not subject to a shutoff lien pursuant to section 1 of this act, all unpaid charges at the time of real property sale for water, storm water, sewer, garbage, electricity, and natural gas furnished to that real property owed to a city, town, or county together with interest on the charges at the legal rate, are declared to be a lien for which no filing is required on the real property to which the services were furnished. The lien created by this section shall be in addition to any other lien provided by law and shall be satisfied after all other liens to which the real property is subject; however, the lien shall not affect the priority or validity of other liens against the real property for the utility services authorized under this section. A lien established under this section may be foreclosed by a civil action in the superior court of the county where the property is located, but only after a fee interest is conveyed for the real property. Unless otherwise stated in writing and separately acknowledged in writing by the purchaser of a fee interest in the real property, it is the responsibility of the seller of the fee interest to satisfy upon closing the lien created by this section. No person serving as an escrow agent, as defined in RCW 18.44.010(4), including persons authorized in RCW 18.44.020 to act without a certificate of registration, may refuse a request by the seller of a fee interest or purchaser of a fee interest to administer the disbursement of closing funds necessary to satisfy a lien under this section. If an escrow agent, as specified above, handles the sale, the escrow agent shall timely request a final billing under section 7 of this act from all affected utilities, and inform the seller and the purchaser of all amounts for final estimated billings furnished by those utilities prior to closing. Final billing shall include all outstanding charges. "Charges" as used in this section includes all lawful charges assessed by the utility, including but not limited to consumption charges, connection charges, contributions provided for by state law, charges for meters and other equipment provided to the customer, and charges in connection with repair, replacement, or location of customer facilities.

NEW SECTION. Sec. 7. A new section is added to chapter 35.21 RCW to read as follows:

(1) Upon request for a final billing with respect to real property that is to be sold, a utility operated by a city, town, or county that provides water, storm water, sewer, garbage, electricity, or natural gas service to the property shall provide the owner of the property or the closing agent for the sale with an estimated final billing under the conditions set forth in this section.

(2) If the request for an estimated final billing is received by the billing office of the utility no less than seven working days before the closing date stated in the request, the utility shall provide the estimated final billing no less than one day before the stated closing date. However, if the request is received less than seven working days before the stated closing date, the utility shall make reasonable efforts to provide the estimated final billing prior to the stated closing date.

(3) The estimated final billing shall, in addition to stating the estimated final amount owing as of the date of the stated closing, state the average per diem rate for the utility or utilities involved, including taxes and other charges, which shall be applied for up to seven days beyond the stated date of closing in the event that the closing date is delayed. If closing is delayed beyond seven days, a new estimated final billing must be requested. In lieu of furnishing a revised billing, the utility may extend the number of days for which the per diem charge may be used.

(4) If the utility fails to timely provide the estimated final billing in response to a request made no less than seven working days before the stated closing date, the utility shall forfeit the right it may have to collect from the purchaser outstanding utility charges of the former owner that were incurred before the stated closing date.

(5) If closing occurs no later than the last date for which per diem charges may be applied, full payment of the amount plus per diem charges, shall extinguish the lien of the utility provided under section 6 of this act for charges incurred prior to the date of closing.

(6) This section does not in any manner limit the right of a utility to obtain recovery from the former owner of the property for outstanding charges that are in excess of the estimated final billing. However, if the estimated final billing is in excess of the amount owed as determined by an actual meter reading, the utility shall refund the amount to the former owner within seven working days of the actual reading by sending the refund in the owner's name to the last address given by the former owner.

(7) For the purposes of this section, a "working day" is considered to be a day that the utility in question is open for business.

NEW SECTION. Sec. 8. This act shall take effect June 1, 1995.

NEW SECTION. Sec. 9. Utilities are encouraged to implement this act before June 1, 1995."