H-0666.1                  _______________________________________________

                                                      HOUSE BILL 1362

                              _______________________________________________

State of Washington                              53rd Legislature                             1993 Regular Session

By Representatives H. Myers and Bray

Read first time 01/25/93.  Referred to Committee on Local Government.

Creating a uniform procedure for foreclosing government liens on real property.

          AN ACT Relating to lien foreclosure; amending RCW 84.64.050, 84.64.070, 84.64.080, 84.64.120, 84.64.180, 84.64.360, 84.64.380, 84.64.390, 84.64.420, 84.64.460, 35.50.010, 35.50.030, 35.50.220, 35.50.230, 87.03.265, 87.03.270, 87.03.271, 87.03.272, 87.03.445, 87.06.020, 87.06.080, 87.06.090, 87.06.100, 87.80.180, 56.20.120, and 57.16.150; adding new sections to chapter 84.64 RCW; creating new sections; and repealing RCW 84.64.040, 84.64.060, 84.64.200, 35.50.225, 35.50.240, 35.50.250, 35.50.260, 87.06.010, 87.06.030, 87.06.040, 87.06.050, 87.06.060, 87.06.070, 87.06.110, and 87.06.120.

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

                                                             PART I

                                                     PROPERTY TAXES

NEW SECTION. Sec. 1.  UNIFORM PROCEDURE.  The procedure in this chapter by which liens on real property arising from delinquent property taxes are foreclosed shall apply, unless specifically provided otherwise, to foreclosure of all liens on real property arising from taxes, assessments, rates, or charges imposed by a governmental entity.

NEW SECTION. Sec. 2.  DEFINITIONS.  Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

          (1) "Date of delinquency" means the date when property taxes first became delinquent.

          (2) "Description of the property" means a legal description, the parcel number, tax number, or other description of the real property that is part of official records and sufficiently describes the real property.

          (3) "Expenses" means the expenses incurred in foreclosing a lien and selling real property subject to the lien that are incurred until the lien is paid in full.  "Expenses" includes actual attorney's expenses based upon salaries and other factors, the expenses of preparing a certificate of delinquency, the expenses of conducting a title search, and the expenses in selling the property.

          (4) "Interested party" means any person with a record interest in the real property, including a financial interest of record in the real property.  "Interested party" does not include the holder of an easement on the real property or a covenant running with the real property.

          (6) "Treasurer" means the county treasurer.

        Sec. 3.  RCW 84.64.050 and 1991 c 245 s 25 are each amended to read as follows:

          ((After the expiration of three years from the date of delinquency, when any property remains on the tax rolls for which no certificate of delinquency has been issued,)) (1) The county treasurer shall ((proceed to)) issue certificates of delinquency on the property to the county for all years' taxes, interest, ((and costs:  PROVIDED, That the county treasurer,)) penalties, and expenses on real property after the expiration of three years from the initial date of delinquency.  With the consent of the county legislative authority, the treasurer may elect to issue a certificate for fewer than all years' delinquent taxes, interest, ((and costs to a minimum of the taxes, interest, and costs for)) penalties, and expenses, and issue a certificate of delinquency for only the earliest year's delinquent property taxes, interest, penalties, and expenses.

A general certificate of delinquencies may be issued in book form including some or all real properties that are subject to delinquent property taxes, and the proceedings to foreclose the liens against all the real properties that are included in the general certificate of delinquencies may be brought in one action with all interested parties being codefendants in the action.

(2) Each certificate shall contain the following information:  (a) A description of the real property and, if available, the street address of the real property, which is included for informational purposes only; (b) the name or names appearing on the treasurer's most current tax roll for the real property; (c) the years of delinquency; (d) the amount of delinquent property taxes; (e) a statement that the lien includes interest, penalties, and expenses; and (f) a statement that the lien will be foreclosed and the real property sold unless the lien is paid in full.

(3) As provided under section 8 of this act, a certificate of delinquency or general certificate of delinquencies may also include delinquent assessments, rates, or charges on the same real property or properties that are foreclosed together with the delinquent property taxes.

(4) Certificates of delinquency shall have the same effect as a lis pendens required under chapter 4.28 RCW and shall be prima facie evidence that:

          (((1))) (a) The real property described was subject to taxation at the time the ((same was assessed)) property taxes were levied;

          (((2))) (b) The real property was assessed as required by law;

          (((3))) (c) The property taxes ((or assessments)) were not paid at any time before the issuance of the certificate((;

          (4) Such certificate shall have the same force and effect as a lis pendens required under chapter 4.28 RCW.

          The county treasurer may include in the certificate of delinquency any assessments which are due on the property and are the responsibility of the county treasurer to collect.  For purposes of this chapter, "taxes, interest, and costs" include any assessments which are so included by the county treasurer)) of delinquency.

          The treasurer shall file the certificates when completed with the clerk of the court at no cost to the treasurer((, and the treasurer shall thereupon,)) or county and, with legal assistance from the county prosecuting attorney, ((proceed to)) shall foreclose, in the name of the county, the tax liens embraced in ((such)) the certificates.  ((Notice and summons must be served or notice given in a manner reasonably calculated to inform the owner or owners, and any person having a recorded interest in or lien of record upon the property, of the foreclosure action to appear within thirty days after service of such notice and defend such action or pay the amount due.  Either (a) personal service upon the owner or owners and any person having a recorded interest in or lien of record upon the property, or (b) publication once in a newspaper of general circulation, which is circulated in the area of the property and mailing of notice by certified mail to the owner or owners and any person having a recorded interest in or lien of record upon the property, or, if a mailing address is unavailable, personal service upon the occupant of the property, if any, is sufficient.  If such notice is returned as unclaimed, the treasurer shall send notice by regular first class mail.  The notice shall include the legal description on the tax rolls, the year or years for which assessed, the amount of tax and interest due, and the name of owner, or reputed owner, if known, and the notice must include the local street address, if any, for informational purposes only.  The certificates of delinquency issued to the county may be issued in one general certificate in book form including all property, and the proceedings to foreclose the liens against the property may be brought in one action and all persons interested in any of the property involved in the proceedings may be made codefendants in the action, and if unknown may be therein named as unknown owners, and the publication of such notice shall be sufficient service thereof on all persons interested in the property described therein, except as provided above.  The person or persons whose name or names appear on the treasurer's rolls as the owner or owners of the property shall be considered and treated as the owner or owners of the property for the purpose of this section, and if upon the treasurer's rolls it appears that the owner or owners of the property are unknown, then the property shall be proceeded against, as belonging to an unknown owner or owners, as the case may be, and all persons owning or claiming to own, or having or claiming to have an interest therein, are hereby required to take notice of the proceedings and of any and all steps thereunder:  PROVIDED, That prior to the sale of the property, the treasurer shall order or conduct a title search of the property to be sold to determine the legal description of the property to be sold and the record title holder, and if the record title holder or holders differ from the person or persons whose name or names appear on the treasurer's rolls as the owner or owners, the record title holder or holders shall be considered and treated as the owner or owners of the property for the purpose of this section, and shall be entitled to the notice provided for in this section.  Such title search shall be included in the costs of foreclosure.))

          The county treasurer shall not sell real property which is eligible for deferral of taxes under chapter 84.38 RCW ((but shall require)) unless the owner of the real property fails to file a declaration to defer taxes under chapter 84.38 RCW within ninety days of the county treasurer providing the property owner with special notice of the deferral program and ability to defer the sale of the real property if the property owner files the declaration to defer the taxes within this ninety-day period.

NEW SECTION. Sec. 4.  NOTICE AND SUMMONS, CONTENT.  The treasurer shall order a title search of the real property or properties included in a certificate of delinquency to determine or verify the description of the real property and interested parties.

          After the completion of the title search, the treasurer, in the name of the county, shall begin legal action to foreclose the property tax lien.  The treasurer shall give notice to all interested parties of application for judgment foreclosing the property tax lien and summons.  The notice and summons shall contain:

          (1) A statement that the county is applying to the superior court of the county in which the real property is located for a judgment foreclosing the lien against the real property for delinquent property taxes;

          (2) A description of the real property and, where available, the street address of the real property;

          (3) The name of each interested party;

          (4) A description of the lien amount due, which shall include (a) the amount of the delinquent property taxes, (b) interest on the amount of the delinquency accruing since the date of delinquency at a rate provided in RCW 84.56.020 until the lien is paid in full, (c) penalties under RCW 84.56.020, and (d) a statement that the lien also includes expenses that the county incurs, until the lien is paid in full, in foreclosing the lien and selling the real property, including, but not limited to, expenses for attorneys and a title search;

          (5) A direction to each interested party that summons the party to appear within the thirty-day period immediately following service of the notice and summons and defend the action or pay the full lien amount due;

          (6) If service is by publication, a direction that summons each interested party to appear within the thirty-day period immediately following the date of first publication of the notice and summons and defend the action or pay the amount due; and

          (7) A statement that, in case of failure to defend or pay the amount due, judgment will be rendered foreclosing the lien of the delinquent property taxes, interest, penalties, and expenses, and the real property will be sold.

          A summons and notice shall be worded substantially as follows:

                                                       "SUPERIOR COURT OF WASHINGTON

                                                                     FOR .......... COUNTY

......................,}               No.  .....  

             PLAINTIFF,}

          v.           }           SUMMONS AND NOTICE FOR

......................,}          FORECLOSURE OF DELINQUENT

             DEFENDANT.}             REAL PROPERTY TAXES

          To the Defendant:  A lawsuit has been started against you in the above entitled court by .........., plaintiff.  Plaintiff's claim is stated in the written complaint, a copy of which is served upon you with this summons and notice.  The purpose of this lawsuit is to foreclose a lien for delinquent property taxes on your interest in the following described real property:

                                                                       [legal description]

which is located at:

                                                                         [street address].

          The amount of delinquent property taxes that are due on the real property is ......., plus interest, penalties, and expenses of the county foreclosing the lien and selling the property.  The interest is twelve percent (12%) a year computed monthly from the date of delinquency until the full amount of the lien is paid.  The penalties are three percent (3%) of the amount of the taxes that are delinquent on June 1st of the year in which the taxes are due and an additional eight percent (8%) of the total amount of the tax delinquencies on December 1st of the year in which the taxes are delinquent.  The expenses of the county in pursuing the delinquency until the full amount is paid includes, but is not limited to, expenses for attorneys and a title search.

          In order to defend against this lawsuit, you must respond to the complaint by stating your defense in writing, and by serving a copy upon the person who signed this summons within the twenty-nine (29) day period immediately following service of this summons and notice, excluding the day of service, or a default judgment may be entered against you without further notice.  A default judgment is a judgment where plaintiff is entitled to what the plaintiff asks for because you have not responded.  If you serve a notice of appearance on the undersigned person, you are entitled to notice before a default judgment may be entered.

                                                    IMPORTANT NOTICE

          If judgment is taken against you, either by default or after hearing by the court, your real property will be sold at public auction.

          You may prevent the sale by paying the county treasurer the full amount of the lien before the close of regular business hours on the last business day before the day of the sale.  Payment must be made in United States currency, other form approved by the county treasurer, or, in limited circumstances, by credit card under RCW 84.56.023.

          If you wish to seek the advice of an attorney in this matter, you should do so promptly so that your written response, if any, may be served on time.

                                                   [signed]................................

                                                   ........................................

                                                                                       Print or Type Name

                                                   (  ) Plaintiff  (  ) Plaintiff's

                                                                                                                 Attorney

                                                   Mailing Address  .......................

Dated .............Telephone Number ......................."

NEW SECTION. Sec. 5.  SERVING A NOTICE AND SUMMONS.  The notice and summons shall be served in a manner reasonably calculated to inform each interested party of the foreclosure action.  At a minimum, service shall be accomplished by either: (1) Personal service upon an interested party under chapter 4.28 RCW; or (2) publication once in a newspaper of general circulation that is circulated in the area in which the real property is located and sending the notice by certified mail to the interested party, with a second notice sent to the interested party by regular first class mail if the notice that is sent by certified mail is returned as unclaimed.

          Within the fifteen-day period immediately following the first publication or service of the notice and summons, the treasurer shall mail a copy of the published notice to the treasurer of each city, town, sewer district, water district, irrigation district, public utility district, and port district within which any real property involved in the foreclosure is situated, but the treasurer's failure to do so shall not affect the jurisdiction of the court or the property tax lien sought to be foreclosed.  A copy of the notice need not be sent to the treasurer if the treasurer also acts as treasurer of another unit of government.

        Sec. 6.  RCW 84.64.070 and 1991 c 245 s 26 are each amended to read as follows:

          ((Real property upon which certificates of delinquency have been issued under the provisions of this chapter, may be redeemed at any time before the close of business the day before the day of the sale, by payment, as prescribed by the county treasurer, to the county treasurer of the proper county, of the amount for which the certificate of delinquency was issued, together with interest at the statutory rate per annum charged on delinquent general real and personal property taxes from date of issuance of the certificate of delinquency until paid.  The person redeeming such property shall also pay the amount of all taxes, interest and costs accruing after the issuance of such certificate of delinquency, together with interest at the statutory rate per annum charged on delinquent general real and personal property taxes on such payment from the day the same was made.  No fee shall be charged for any redemption.))  Before a foreclosure judgment is entered, any interested party may pay to the treasurer, in person or by agent, the total amount of the property tax lien.   If a foreclosure judgment has been entered, any interested party may pay to the treasurer, in person or by agent, the total amount of the property tax lien for which the judgment has been rendered, so long as payment is received by the treasurer during regular business hours on the last business day before the day of the foreclosure sale.  The property tax lien includes the delinquent property taxes, interest, penalties, and expenses.  Payment shall be in United States currency, other form as prescribed by the county treasurer, or in limited circumstances by credit card as provided under RCW 84.56.023.  The treasurer shall give a receipt for each payment received under this section.

A tenant((s)) in common or a joint tenant((s)) shall be allowed to redeem ((their)) an individual interest in real property that is segregated under RCW 84.56.340 and for which a certificate((s)) of delinquency ((have)) has been issued under ((the provisions of)) this chapter((, in the manner and under the terms specified in this section for the redemption of real property other than that of persons adjudicated to be legally incompetent or minors.  If)).  The action shall be dismissed against the redeeming tenant's interest but shall proceed against the interests of the remaining tenants in common or joint tenants.

The real property of any minor((,)) or any person adjudicated to be legally incompetent((, be)) that is sold for nonpayment of taxes((, the same)) may be redeemed at any time within three years after the date of sale upon the terms specified in this section, on the payment of interest at the statutory rate per annum charged on delinquent general real and personal property taxes on the amount for which the same was sold, from and after the date of sale, and in addition the redemptioner shall pay the reasonable value of all improvements made in good faith on the property, less the value of the use ((thereof, which)) of the improvements.  Redemption may be made by ((themselves)) the redemptioner or ((by any)) a person in ((their)) his or her behalf.

        Sec. 7.  RCW 84.64.080 and 1991 c 245 s 27 are each amended to read as follows:

(1) The superior court shall examine each application for judgment foreclosing a property tax lien((, and)).  If defense ((()), specifying in writing the particular cause of objection(() be)), is offered by any ((person interested in any of the lands or lots to the entry of judgment against the same)) interested party, the court shall hear and determine the matter in a summary manner((,)) without other pleadings((,)) and shall pronounce judgment as the right of the case may be((; or)).  The court may, in its discretion, continue ((such)) individual cases((, wherein)) in which 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 proceed to determine the matter in a summary manner as ((above)) specified in this subsection.

(2) In all judicial proceedings of any kind for the collection of delinquent property taxes, ((and interest and costs thereon,)) interest, penalties, and expenses, all amendments which by law can be made in any personal action pending in ((such)) the court shall be allowed((, and)).  No ((assessments of property or charge for any of the)) property taxes shall be considered illegal on account of any irregularity in the tax ((list or assessment)) rolls or on account of the ((assessment)) tax rolls ((or tax list)) not having been made, completed, or returned within the time required by law((,)) or on account of the real property having been charged or listed in the ((assessment or)) tax ((lists)) rolls 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,)) assessing the real property or levying or ((collection of)) collecting the taxes((,)) shall vitiate or in any manner affect the tax ((or the assessment thereof, and)).  Any irregularities or informality in the ((assessment)) tax rolls ((or tax lists)) or in any of the proceedings connected with ((the assessment or levy of such)) assessing the real property or levying the taxes or any omission or defective act of any officer or officers connected with ((the assessment)) assessing the real property or levying ((of such)) the taxes((,)) may be, in the discretion of the court, corrected, supplied, and made to conform to the law by the court.

(3) The court shall give judgment for ((such)) the delinquent taxes, interest, penalties, and ((costs as shall)) expenses that appear to be due upon the ((several)) parcels, lots, or tracts of real property described in the notice of application for judgment or complaint((, and such)).  The judgment shall be a several judgment against each parcel, tract, or lot or part of a parcel, tract, or lot for ((each kind of tax included therein)) all delinquent property taxes, including ((all)) interest, penalties, and ((costs, and)) expenses.  The court shall order ((and direct the clerk to make and enter an order for)) the sale of ((such)) the 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 be signed by the judge of the superior court((, shall)) and be delivered to the county treasurer((,)) and shall be full and sufficient authority for him or her to proceed to sell the real 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)) (4) Immediately after receiving the order and judgment of the court, the county treasurer shall proceed to sell the real property as provided in this chapter by auction to the highest and best bidder ((for cash)) payable in United States currency, other form approved by the county treasurer, or, in limited circumstances, by credit card under RCW 84.56.023.  The ((acceptable)) minimum acceptable bid shall be the total amount of delinquent taxes, interest, penalties, and ((costs)) expenses.  All sales shall 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 shall continue from day to day ((()), Saturdays, Sundays, and legal holidays excepted(())), during the same hours until all parcels, lots, or tracts are sold((, after first giving notice of the)).

Notice of the sale shall be made to each interested party in the same manner as the notice and summons of the lawsuit and shall also be posted in at least one conspicuous place in the treasurer's office.  Notices shall indicate the date, time, and place where ((such)) the sale is to take place ((for ten days successively by posting notice thereof in three public places in the county, one of which shall be in the office of the treasurer.  The notice shall be substantially in the following form:

                                                                  TAX JUDGMENT SALE

          Public notice is hereby given that pursuant to real property tax judgment of the superior court of the county of . . . . . . in the state of Washington, and an order of sale duly issued by the court, entered the . . . . day of . . . . . ., . . . ., in proceedings for foreclosure of tax liens upon real property, as per provisions of law, I shall on the . . . . day of . . . . . ., . . . ., at . . . . o'clock a.m., at . . . . . . in the city of . . . . . ., and county of . . . . . ., state of Washington, sell the real property to the highest and best bidder for cash, to satisfy the full amount of taxes, interest and costs adjudged to be due.

          In witness whereof, I have hereunto affixed my hand and seal this . . . . day of . . . . . ., . . . . .

                                                                           ........................................................................................................................

                                                                           Treasurer of .................................................................................................

                                                                           county.)), which must be at least ten days before the date of sale, describe the real property, state the minimum acceptable bid, and state that a purchase must be made in United States currency, other form prescribed by the county treasurer, or, in limited circumstances, by credit card as provided in RCW 84.56.023.  Notices provided to interested parties shall indicate that an interested party may redeem the real property at any time before the close of regular business hours on the last business day before the auction.

Notice of the sale that is provided to interested parties may be combined in the notice and summons of the foreclosure proceeding that is made to interested parties.

(5) No county officer or employee shall directly or indirectly be a purchaser of ((such)) real property at ((such)) a sale under this section.  If the lien of another local government is being foreclosed, no officer or employee of that local government shall directly or indirectly be a purchaser of the real property at the sale.

          If any buildings or improvements are upon an area encompassing more than one parcel, tract, or lot, ((the same)) they must be advertised and sold as a single unit.

          If the highest amount bid for any such separate unit, parcel, tract, or lot is in excess of the minimum acceptable bid ((due upon the whole property included in the certificate of delinquency)), the excess shall be refunded ((following payment of all water and sewer district liens)), on application ((therefor)), to the record owner of the real property after the record owner certifies that all liens on the real property held by any local government for assessments, rates, and charges have been paid.  The record owner of the real property is the person who held title on the date of issuance of the certificate of delinquency.  ((In the event)) If no claim for the excess is received by the county treasurer within three years after the date of the sale ((he or she shall at expiration of the three year period)), the treasurer shall deposit ((such)) the excess in the current expense fund of the county.

          The county treasurer shall execute to the purchaser of any ((piece or)) parcel, lot, or tract of ((land)) real property a tax deed.  The deed ((so)) made by the county treasurer, under the official seal of ((his or her)) the treasurer's office, shall be recorded in the same manner as other conveyances of real property((,)) and shall vest in the grantee((, his or her)) and the grantee's heirs and assigns the title to the property ((therein)) described((,)) in the tax deed without further acknowledgment or evidence of ((such)) the conveyance((, and)).  A tax deed shall be substantially in the following form:

"State of Washington                      B

C ss.

County of ...............................................................            D

          This indenture, made this . . . . day of . . . . . ., . . . . . ., between . . . . . ., as treasurer of . . . . . . county, state of Washington, party of the first part, and . . . . . ., party of the second part:

          Witnesseth, that, whereas, at a public sale of real property held on the . . . . day of . . . . . ., . . . ., pursuant to a real property tax judgment entered in the superior court in the county of . . . . . . on the . . . . day of . . . . . ., . . . ., in proceedings to foreclose tax liens upon real property and an order of sale duly issued by the court, . . . . . . duly purchased in compliance with the laws of the state of Washington, the following described real property, to wit:  (Here place description of real property conveyed) and that the . . . . . . has complied with the laws of the state of Washington necessary to entitle (him, or her or them) to a deed for the real property.

          Now, therefore, know ye, that, I . . . . . ., county treasurer of the county of . . . . . ., state of Washington, in consideration of the premises and by virtue of the statutes of the state of Washington, in such cases provided, do hereby grant and convey unto . . . . . ., his or her heirs and assigns, forever, the real property hereinbefore described.

          Given under my hand and seal of office this . . . . day of . . . . . ., A.D. . . . .

                                                                                       ........................................................................................................

                                                                                                               County Treasurer."

NEW SECTION. Sec. 8.  INCLUSION OF OTHER LIENS.  The treasurer may include, in a certificate of delinquency, any delinquent assessments, rates, and charges imposed by a local government which are liens on real property if the assessments, rates, or charges are the responsibility of the treasurer to collect or if the treasurer has agreed to include the delinquent assessments, rates, or charges in the foreclosure action.

          A certificate of delinquency that includes delinquent assessments, rates, or charges and all related notices and other documents shall clearly describe the additional liens that are being foreclosed, have the effect of a lis pendens under chapter 4.28 RCW, and be prima facie evidence that: (1) The real property described was subject  to the assessments, rates, or charges at the time the assessments, rates, or charges were imposed; (2) the assessments, rates, or charges were imposed as required by law; and (3) the assessments, rates, or charges were not paid at any time before the issuance of the certificate of delinquency.

          Except as provided in this section, the procedural and notice requirements to foreclose a lien on delinquent assessments, rates, or charges, to sell the real property, and appeal of a judgment of the superior court ordering the lien foreclosed and real property sold shall be the same as for delinquent property taxes when delinquent assessments, rates, or charges are foreclosed along with delinquent property taxes.  Where applicable, the presumptions provided under RCW 84.64.080(2) for delinquent property taxes shall apply to delinquent assessments, rates, or charges.

          For purposes of this chapter, "delinquent taxes, interest, penalties, and expenses" shall include any delinquent assessments, rates, or charges and the associated interest, penalties, and expenses which are foreclosed with the delinquent property taxes.  The foreclosure proceedings shall be in the name of the county and every other local government for which the delinquent assessments, rates, or charges are foreclosed.

          The county shall retain its additional expenses in foreclosing the delinquent assessments, rates, or charges along with the delinquent property taxes before distributing to other local governments any moneys obtained from the sale of the real property.

        Sec. 9.  RCW 84.64.120 and 1991 c 245 s 28 are each amended to read as follows:

          Appellate review of the judgment of the superior court may be sought as in other civil cases.  However, review must be sought within the thirty-day((s after the)) period immediately following entry of the judgment and the party taking ((such)) the appeal shall deposit a sum equal to all delinquent taxes, interest, penalties, and ((costs)) expenses with the clerk of the court, conditioned that the appellant shall prosecute the appeal with effect, and will pay the amount of any delinquent taxes, interest, penalties, and ((costs)) expenses which may be finally adjudged against the real property involved in the appeal by any court having jurisdiction of the cause.

          No appeal ((shall be)) is allowed from any judgment for the sale of ((land or lot)) real property for delinquent taxes unless the party taking ((such)) the appeal shall before the time of giving notice of ((such)) the appeal, and within thirty days ((herein)) allowed within which to appeal, deposit with the clerk of the court of the county in which the ((land or lots are)) real property is situated, an amount of money equal to the amount of the judgment ((and costs)) rendered in ((such)) the cause by the ((trial)) superior court.  If, in case of an appeal, the judgment of the lower court ((shall be)) is affirmed, in whole or in part, the supreme court or the court of appeals shall enter judgment for the amount of delinquent taxes, interest, penalties, and ((costs)) expenses, with damages not to exceed twenty percent, and shall order that the amount deposited with the clerk of the court, or ((so)) as much ((thereof)) of it as ((may be)) necessary, be credited upon the judgment so rendered, and execution shall issue for the balance of the judgment((,)) and damages ((and costs)).  The clerk of the supreme court or the clerk of the division of the court of appeals ((in which the appeal is pending)) shall transmit to the county treasurer of the county in which the ((land or lots are)) real property is situated a certified copy of the order of affirmance, and ((it shall be the duty of such county treasurer)) upon receiving the ((same to)) order of affirmance, the county treasurer shall apply ((so)) as much of the amount deposited with the clerk of the court((,)) as ((shall be)) is necessary to satisfy the amount of the judgment of the supreme court((,)) or court of appeals and ((to)) account for the ((same)) amount applied to the judgment as collected taxes.

          If the judgment of the superior court ((shall be)) is reversed and the cause remanded for a rehearing, and if, upon a rehearing, judgment ((shall be)) is rendered for the sale of the ((land or lots)) real property for delinquent taxes, or any part thereof, and ((such)) the judgment ((be)) is not appealed ((from, as herein provided)), the clerk of ((such)) the superior court shall certify to the county treasurer the amount of ((such)) the judgment((, and thereupon it shall be the duty of)).  The county treasurer ((to)) shall certify to the county clerk the amount deposited with the clerk of the court, and the county clerk shall credit ((such)) the judgment with the amount of ((such)) the deposit, or so much ((thereof)) of it as will satisfy the judgment((, and)).  The county treasurer ((shall be)) is chargeable and accountable for the amount ((so)) credited as collected taxes.

          Nothing ((herein)) in this section shall be construed as requiring an additional deposit in case of more than one appeal being prosecuted in (([the])) the proceeding.  If, upon a final hearing, judgment ((shall be)) is refused for the sale of the ((land or lots)) real property for the delinquent taxes, penalties, interest, and ((costs)) expenses, or any part thereof, in the proceedings, the county treasurer shall pay over to the party who ((shall have)) made ((such)) the deposit, or his or her legally authorized agent or representative, the amount of the deposit, or ((so much thereof as shall remain)) the balance remaining after the satisfaction of the judgment against the ((land or lots in)) real property with respect to which ((such)) the deposit ((shall have been)) was made.

        Sec. 10.  RCW 84.64.180 and 1961 c 15 s 84.64.180 are each amended to read as follows:

(1) Tax deeds executed by the county treasurer((, as aforesaid, shall be)) are prima facie evidence of the following facts in all controversies and suits in relation to the right of the purchaser((, his)) and the purchaser's heirs and assigns((,)) to the real property ((thereby)) conveyed ((of the following facts:  First, that)):

(a) The real property conveyed was subject to taxation at the time ((the same)) it was assessed((,)) and ((had been)) it was listed and assessed in the time and manner required by law; ((second, that))

(b) The taxes were not paid at any time before the issuance of deed; ((third, that))

(c) The real property conveyed had not been redeemed from the sale at the date of the deed; ((fourth, that))

(d) The real property was sold for delinquent taxes, interest, penalties, and ((costs)) expenses, as stated in the deed; ((fifth, that))

(e) The grantee in the deed was the purchaser((,)) or assignee of the purchaser; ((sixth, that)) and

(f) The sale was conducted in the manner required by law.  ((And any))

(2) A judgment for ((the)) a deed to real property sold for delinquent taxes ((rendered after January 9, 1926, except as otherwise provided in this section, shall)) estops all parties from raising any objections ((thereto,)) to it or to a tax title based ((thereon,)) on it which existed at or before the rendition of ((such)) the judgment((,)) and could have been presented as a defense to the application for ((such)) the judgment in the court ((wherein the same was)) which rendered((, and as to all such questions)) the judgment.  The judgment itself shall be conclusive evidence of its regularity and validity in all collateral proceedings, except in cases where the tax has been paid((,)) or the real property was not liable to the tax.

NEW SECTION. Sec. 11.  BIDS.  If no bid is received at the scheduled foreclosure sale equal to at least the minimum acceptable bid, the county shall be considered to have made the minimum acceptable bid for the full area of each parcel, tract, or lot and shall acquire title to the real property as absolutely as if purchased by an individual under this chapter but shall not be required to pay for the real property.  The person submitting the highest bid that is equal to at least the minimum acceptable bid shall pay the full bid amount to the county in United States currency, other form prescribed by the county treasurer, or, in limited circumstances, by credit card as provided under RCW 84.56.023.

        Sec. 12.  RCW 84.64.360 and 1961 c 15 s 84.64.360 are each amended to read as follows:

          Any person, firm, or corporation who or which may have been entitled to redeem the real property involved prior to the issuance of the treasurer's deed to the county, and ((his or its)) a successor in interest, ((shall have the right,)) may at any time after the commencement of((,)) and ((prior to the)) before judgment in the action authorized ((herein, to)) in this chapter redeem ((such)) the real property by paying to the county treasurer:  (1) The amount of the delinquent taxes for which the real property was sold to the county((, and)); (2) the amount of any other general taxes which may have accrued ((prior to)) before the issuance of ((said)) the treasurer's deed((, together with)); (3) interest on ((all such)) taxes under subsections (1) and (2) of this section from the date of delinquency ((thereof, respectively,)) at the rate of twelve percent per annum((, and by paying for the benefit of the assessment district concerned the amount of principal, penalty and interest of all special assessments, if any, which shall have been levied against such property and by paying such proportional part of the costs of the tax foreclosure proceedings and of the action herein authorized as the county treasurer shall determine)) computed monthly; (4) penalties as provided in RCW 84.56.020; (5) expenses; and (6) if applicable, special assessments that have been imposed on the property.

          Upon redemption of any real property before judgment as ((herein)) provided in this chapter, the county treasurer shall issue to the redemptioner a certificate specifying the amount of the delinquent taxes, special assessments, ((penalty,)) interest, penalties, and ((costs)) expenses charged describing the ((land)) real property and stating that the delinquent taxes, special assessments, ((penalty,)) interest, penalties, and ((costs)) expenses specified have been fully paid((,)) and the lien ((thereof)) discharged.  ((Such)) The certificate shall clear the ((land)) real property described ((therein)) from any claim of the county based on the treasurer's deed previously issued in the tax foreclosure proceedings.

        Sec. 13.  RCW 84.64.380 and 1961 c 15 s 84.64.380 are each amended to read as follows:

          The right of action of the county, its successors or assigns, under RCW 84.64.330 through 84.64.440 ((shall)) rests on the validity of the taxes involved((, and)).  The plaintiff ((shall be)) is required to prove only the amount of the former judgment foreclosing the lien ((thereof)), together with the ((costs)) interest, penalties, and expenses of the foreclosure and sale of each parcel, lot, or tract of ((land)) real property for ((said)) the delinquent taxes((, and)).  All the presumptions in favor of the tax foreclosure sale and issuance of treasurer's deed existing by law ((shall)) obtain in ((said)) the action.

        Sec. 14.  RCW 84.64.390 and 1961 c 15 s 84.64.390 are each amended to read as follows:

          ((Any)) A person filing a statement in ((such)) an action under RCW 84.64.330 through 84.64.440 shall pay the clerk of the court an appearance fee in the amount required by the county for appearances in civil actions((,)) and ((shall be)) is required to tender the amount of all delinquent property taxes, interest, penalties, and ((costs)) expenses charged against the real property to which he or she lays claim((, and)).  No further costs in ((such)) the action ((shall be)) are required or recovered.

        Sec. 15.  RCW 84.64.420 and 1961 c 15 s 84.64.420 are each amended to read as follows:

          Nothing in RCW 84.64.330 through 84.64.440 ((contained shall be construed to)) deprives any city ((or)), town, or other local government or a local improvement district or other special assessment district created by a local government of its right to reimbursement for special assessments out of any surplus over and above the delinquent property taxes, interest, penalties, and ((costs)) expenses involved.

        Sec. 16.  RCW 84.64.460 and 1961 c 15 s 84.64.460 are each amended to read as follows:

          The general property tax assessed on any tract, lot, or parcel of real property includes all easements appurtenant ((thereto, provided said)) and all covenants running with the land, including both affirmative and negative covenants, if the easements or covenants are a matter of public record in the auditor's office of the county in which ((said)) the real property is situated.  ((Any)) A foreclosure of delinquent property taxes on ((any)) a tract, lot, or parcel of real property subject to ((such)) an easement ((or)), easements, covenant, or covenants and ((any)) the tax deed ((issued pursuant thereto shall be)) are subject to ((such)) the easement ((or)), easements, ((provided such)) covenant, or covenants if the easement ((or)), easements, covenant, or covenants were established of record ((prior to)) before the year for which the ((tax was)) oldest property taxes were foreclosed.

                                                             PART II

                              CITY AND TOWN LOCAL IMPROVEMENT DISTRICTS

        Sec. 17.  RCW 35.50.010 and 1965 c 7 s 35.50.010 are each amended to read as follows:

          The ((charge assessed)) assessment imposed upon ((the respective lots, tracts, or parcels)) each lot, tract, or parcel of land and other property in the assessment roll, confirmed by ordinance of the city or town council for the purpose of paying the cost and expense in whole or in part of any local improvement, ((shall be)) is a lien upon the property assessed from the time the assessment roll is placed in the hands of the ((city or town treasurer for collection, but as)) officer authorized by law to collect the assessments.  Between the grantor and grantee, or vendor and vendee of any real property, ((when)) if there is no express agreement as to payment of the local improvement assessments against the real property, the lien of ((such)) the assessment ((shall attach)) attaches thirty days after the filing of the diagram or print and the estimated cost and expense of ((such)) the improvement to be borne by each lot, tract, or parcel of land or other property, as provided in RCW 35.50.005.  Interest ((and)), penalty, and expenses shall be included in and shall be a part of the assessment lien.

          The assessment lien ((shall be)) is paramount and superior to any other prior or later lien or encumbrance ((theretofore or thereafter created)) except a lien for general taxes and a lien for prior assessments.

        Sec. 18.  RCW 35.50.030 and 1983 c 303 s 18 are each amended to read as follows:

          If on the first day of January in any year, two installments of any local improvement assessment are delinquent, or if the final installment ((thereof)) has been delinquent for more than one year, the city or town shall proceed with the foreclosure of the delinquent assessment or delinquent installments ((thereof)) by proceedings brought in its own name in the superior court of the county in which the ((city or town)) property is ((situate)) situated.

          The proceedings shall be commenced on or before March 1st of that year or on or before ((such other)) another date in ((such)) the year as may be fixed by general ordinance((, but not before the city or town treasurer has notified by certified mail the persons whose names appear on the assessment roll as owners of the property charged with the assessments or installments which are delinquent, at the address last known to the treasurer, a notice thirty days before the commencement of the proceedings.  If the person whose name appears on the tax rolls of the county assessor as owner of the property, or the address shown for the owner, differs from that appearing on the city or town assessment roll, then the treasurer shall also mail a copy of the notice to that person or that address.

          The notice shall state the amount due upon each separate lot, tract, or parcel of land and the date after which the proceedings will be commenced.  The city or town treasurer shall file with the clerk of the superior court at the time of commencement of the foreclosure proceeding the affidavit of the person who mailed the notices)).

          This affidavit shall be conclusive proof of compliance with the requirements of this section.

Except as provided in this chapter and RCW 35.49.030, the lien shall be foreclosed and the property sold by the city or town in the name of the city or town with the assistance of an attorney representing the city or town using the same procedure as for the foreclosure of liens on real property for delinquent property taxes and sale of the real property.  If an assessment lien is foreclosed and property sold using this procedure, the city or town shall execute a warranty deed.

As an alternative, an assessment lien may be foreclosed by the county treasurer under an agreement provided in section 8 of this act.

        Sec. 19.  RCW 35.50.220 and 1982 c 91 s 2 are each amended to read as follows:

          ((In foreclosing local improvement assessment liens, a city or town shall proceed by filing a complaint in the superior court of the county in which the city or town is located.))  It ((shall be)) is sufficient to allege in the complaint (1) the passage of the ordinance authorizing the improvement, (2) the making of the improvement, (3) the levying of the assessment, (4) the confirmation ((thereof)) of the assessment, (5) the date of delinquency of the installment or installments of the assessment for the enforcement of which the action is brought, and (6) that ((they)) the installment or installments have not been paid ((prior to)) before delinquency or at all.

        Sec. 20.  RCW 35.50.230 and 1983 c 303 s 19 are each amended to read as follows:

          In foreclosing local improvement assessment liens, it is not necessary to bring a separate suit for each of the lots, tracts, or parcels of land or other property or for each separate local improvement district ((or utility local improvement district)).  All or any of the lots, tracts, or parcels of land or other property upon which local improvement assessments are delinquent under any and all local improvement assessment rolls in the city or town may be proceeded against in the same action.  ((For all lots, tracts, or parcels which contain a residential structure with an assessed value of at least two thousand dollars, all persons owning or claiming to own the property shall be made defendants thereto.  For all other lots, tracts, or parcels, the persons whose names appear on the assessment roll and property tax rolls as owners of the property charged with the assessments or taxes shall be made defendants thereto.))

                                                            PART III

                                                  IRRIGATION DISTRICTS

        Sec. 21.  RCW 87.03.265 and 1939 c 171 s 2 are each amended to read as follows:

          The assessment upon real property ((shall be)) is a lien against the real property assessed((,)) from and after the first day of January in the year in which it is levied((, but as)).  Between grantor and grantee ((such)) the lien ((shall)) does not attach until the fifteenth day of February of the year in which the assessment is payable, which lien ((shall be)) is paramount and superior to any other prior or later lien ((theretofore or thereafter created)), whether by mortgage or otherwise, except for a lien for general taxes and prior assessments, and ((such)) the lien shall not be removed until the assessments are paid or the property sold for the payment ((thereof)) of the assessments as provided by law.  ((And)) The lien for the bonds of any issue ((shall be)) are a preferred lien to that of any subsequent issue.  ((Also)) The lien for all payments due or to become due under any contract with the United States((,)) or the state of Washington, accompanying which bonds of the district have not been deposited with the United States or the state of Washington((,)) as provided in RCW 87.03.140 ((provided)), ((shall be)) are a preferred lien to any issue of bonds subsequent to the date of ((such)) the contract.

        Sec. 22.  RCW 87.03.270 and 1988 c 134 s 13 are each amended to read as follows:

          The assessment roll, before its equalization and adoption, shall be checked and compared as to descriptions and ownerships((,)) with the county treasurer's ((land)) tax rolls.  On or before the fifteenth day of January in each year, the secretary must deliver the assessment roll or the respective segregation ((thereof)) of it to the county treasurer of each respective county in which the lands ((therein)) described are located, and ((said)) the assessments ((shall become)) are due and payable on the fifteenth day of February following.

           All assessments on ((said)) the assessment roll ((shall become)) are delinquent on the first day of May following the filing of the roll unless the assessments are paid on or before the thirtieth day of April of ((said)) that year((:  PROVIDED, That)).  If an assessment is ten dollars or more for ((said)) the year and ((if)) one-half of the assessment is paid on or before the thirtieth day of April, the remainder ((shall be)) is due and payable on or before the thirty-first day of October following and ((shall be)) is delinquent after that date.  All delinquent assessments ((shall)) bear interest at the rate of twelve percent per annum, computed on a monthly basis and without compounding, from the date of delinquency until paid.

          Upon receiving the assessment roll, the county treasurer shall prepare ((therefrom)) an assessment book in which ((shall be)) is written the description of the land as it appears in the assessment roll, the name of the owner or owners where known, and, if assessed to ((the)) unknown owners, ((then)) the word "unknown", and the total assessment levied against each tract of land.  Proper space shall be left in ((said)) the book for the entry ((therein)) of all subsequent proceedings relating to the payment and collection of ((said)) the assessments.

          On or before April 1st of each year, the treasurer of the district shall send a statement of assessments due.  County treasurers who collect irrigation district assessments may send the statement of irrigation district assessments together with the statement of general taxes.

          Upon payment of any assessment the county treasurer must enter the date of ((said)) the payment in ((said)) the assessment book opposite the description of the land and the name of the person paying and give a receipt to ((such)) the person specifying the amount of the assessment and the amount paid with the description of the property assessed.

          ((It shall be the duty of)) The treasurer of the district ((to)) shall furnish upon request of the owner, or any person interested, a statement showing any and all assessments levied as shown by the assessment roll ((in his office)) upon land described in ((such)) the request.  All statements of irrigation district assessments covering any land in the district shall show the amount of the irrigation district assessment, the dates on which the assessment is due, the place of payment, and, if the property was sold for delinquent assessments in a prior year, the amount of the delinquent assessment and the notation "certificate issued((":  PROVIDED, That))."  The failure of the treasurer to render any statement ((herein)) required ((of him shall)) does not render invalid any assessments made by any irrigation district.

          ((It shall be the duty of)) The county treasurer of any county, other than the county in which the office of the board of directors is located, ((to)) shall make monthly remittances to the county treasurer of the county in which the office of the board of directors is located covering all amounts collected ((by him)) for the irrigation district during the preceding month.

          ((When)) Except as provided in this chapter, a lien on delinquent assessments shall be foreclosed and the property sold as provided in chapter 87.06 RCW.  If the treasurer collects a delinquent assessment, the treasurer shall collect any other amounts due by reason of the delinquency, including accrued costs, which shall be deposited to the treasurer's operation and maintenance fund.

        Sec. 23.  RCW 87.03.271 and 1988 c 134 s 14 are each amended to read as follows:

          The lien for delinquent assessments shall include ((the district's and treasurer's costs)) expenses that are attributable to the delinquency and interest at the rate of twelve percent ((per)) a year, computed monthly and without compounding, on the assessments and ((costs)) expenses.  ((The word "costs")) "Expenses," as used in this section, includes all ((costs of collection, including but not limited to reasonable attorneys' fees, publication costs, costs of preparing certificates of delinquency, title searches, and the costs of foreclosure proceedings)) expenses as defined in section 2 of this act.

        Sec. 24.  RCW 87.03.272 and 1982 c 102 s 2 are each amended to read as follows:

          Notwithstanding the provisions of RCW 87.03.260, 87.03.270, 87.03.440, and 87.03.445, the board of directors of any district acting as fiscal agent for the United States or the state of Washington for the collection of any irrigation charges may authorize the secretary of the district to act as the exclusive collection agent for the collection of all nondelinquent irrigation assessments of the district ((pursuant to such)) under rules ((and regulations as)) the board of directors may adopt.

          When the secretary acts as collection agent, his or her official bond shall be of a sufficient amount as determined by the board of directors of the district to cover any amounts he or she may be handling while acting as collection agent, in addition to any other amount required by reason of ((his)) other duties.

          The assessment roll of ((such)) the district shall be delivered to the county treasurer in accordance with ((the provisions of)) RCW 87.03.260 and 87.03.270 and the assessment roll shall be checked and verified by the county treasurer as provided in RCW 87.03.270.

          After the assessment roll has been checked and verified by the county treasurer, the secretary of the district shall proceed to publish the notice as required under RCW 87.03.270((; except that)).  The notice shall provide that until the assessments and tolls become delinquent on November 1st they shall be due and payable in the office of the secretary of the district.

          When the secretary of ((such)) the district receives payments, he or she shall issue a receipt for ((such)) the payments and ((shall)) be accountable on ((his)) the official bond for the safekeeping of ((such)) the funds ((and)).  The secretary shall remit the ((same)) payments, along with an itemized statement of receipts, at least once each month to the county treasurer ((wherein)) of the county in which the ((land)) real property is located on which the payment was made.

          When the county treasurer receives the monthly statement of receipts from the secretary, he or she shall enter the payments shown ((thereon)) on the assessment roll maintained in his or her office.

          On the fifteenth day of November of each year ((it shall be the duty of)), the secretary ((to)) shall transmit to the county treasurer the delinquency list which shall include the names, amounts, and such other information as the county treasurer ((shall)) requires, and ((thereafter)) afterward the secretary shall not accept any payment on the delinquent portion of any account.  Upon receipt of the list of delinquencies, the county treasurer shall proceed under ((the provisions of)) this chapter and chapter 87.06 RCW as though he or she were the collection agent for ((such)) the district to the extent of ((such)) the delinquent accounts.

        Sec. 25.  RCW 87.03.445 and 1979 ex.s. c 185 s 5 are each amended to read as follows:

(1) The cost and expense of purchasing and acquiring property, ((and)) construction, reconstruction, extension, and betterment of the works and improvements ((herein)) provided for in this chapter, ((and the)) incidental expenses ((incidental thereto, and)), indebtedness to the United States for district lands assumed by the district, and for ((the)) carrying out ((of)) the purposes of this chapter((,)) may be paid for by the board of directors out of the funds received from bond sales as well as other district funds.

(2) For the purpose of defraying the costs and expenses of the organization of the district, ((and of)) the care, operation, management, maintenance, repair, and improvement of the district and its irrigation water, domestic water, electric power, drainage, or sewer facilities or ((of)) any portion ((thereof, or for)) of them, the payment of any indebtedness due the United States or the state of Washington, or for the payment of district bonds, the board may either fix rates or tolls and charges((,)) and collect the same from all persons for whom district service is made available for irrigation water, domestic water, electric power, drainage or sewerage, and other purposes, or it may provide for the payment of ((said)) the costs and expenses by a levy of assessment ((therefor,)) or by both ((said)) rates or tolls and charges and assessment.

(3) If the assessment method is utilized, the levy of assessments shall be made on the completion and equalization of the assessment roll each year, and the board ((shall have)) has the same powers and functions for the purpose of ((said)) the levy as possessed by it in case of levy to pay bonds of the district.  The procedure for the collection of assessments by ((such)) the levy shall in all respects conform with ((the provisions of)) this chapter((,)) relating to the collection of assessments for the payment of principal and interest of bonds ((herein provided for,)) and shall be made at the same time.

(4) If the rates or tolls and charges method is adopted in whole or in part, the secretary shall deliver to the board of directors, within the time for filing the assessment roll, a schedule containing the names of the owners or reputed owners, as shown on the rolls of the county treasurer as of the first Tuesday in November of each year ((such a)) the schedule is filed, of the various parcels of land against which rates or tolls and charges are to be levied, the description of each ((such)) parcel of land and the amount to be charged against each parcel for irrigation water, domestic water, electric power, drainage, sewerage, and other district costs and expenses.  ((Said)) The schedule of rates or tolls and charges shall be equalized ((pursuant to)) under the same notice, in the same manner, at the same time, and with the same legal effect as in the case of assessments.  ((Such)) The schedule of rates or tolls and charges for a given year shall be filed with the proper county treasurer within the same time as that provided by law for the filing of the annual assessment roll, and the county treasurer shall collect and receipt for the payment of ((said)) the rates or tolls and charges and credit them to the proper funds of the district.  The board may designate the time and manner of making ((such)) collections and shall require ((the same)) them to be paid in advance of delivery of water and other service.  All tolls and charges levied ((shall also)) are at once ((become and constitute)) an assessment upon and against the lands for which they are levied, with the same force and effect, ((and)) the same manner of enforcement, and ((with)) the same rate of interest from date of delinquency, in case of nonpayment, as other district assessments.

(5) As an alternative method of imposing, collecting, and enforcing ((such)) rates or tolls and charges, the board may also base ((such)) the rates or tolls and charges upon the quantity of irrigation water, domestic water, or electric power delivered((,)) or drainage or sewage disposed of((,)) and may fix a minimum rate or toll and charge to be paid by each parcel of land or use within the district for the delivery or disposal of a stated quantity of each ((such)) service with a graduated charge for additional quantities of ((such)) services delivered or disposed of.  If the board elects to utilize this alternative method of imposing, collecting, and enforcing such rates or tolls and charges, there ((shall be)) is no requirement that the schedule referred to in ((the preceding paragraph)) subsection (4) of this section be prepared, ((be)) filed with the board of directors by the secretary, be equalized, or ((be)) filed with a county treasurer.  The board shall enforce collection of ((such)) the rates or tolls and charges against property to which ((and its owners to whom)) the service is available((, such)) and its owners.  The rates or tolls and charges ((being deemed)) are charges against the property to which the service is available.  The board may provide by resolution that where ((such)) the rates or tolls and 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 added penalties ((added thereto)) and interest ((thereon)) at ((the)) a rate not to exceed twelve percent ((per annum)) a year fixed by resolution ((shall be)) is a lien against the property to which the service was available, subject only to the lien for general taxes and the lien for prior assessments.  The district may, at any time after ((such)) the rates or tolls and charges and penalties provided for ((herein)) in this subsection are delinquent for a period of one year, bring suit in foreclosure by civil action in the superior court of the county in which the real property is situated.  ((The court may allow, in addition to the costs and disbursements provided by statute, such attorney's fees as it may adjudge reasonable.))  The action shall be in rem against the property((,)) and in addition may be brought in the name of the district against an individual((,)) or against all of those who are delinquent((,)) in one action, and ((the rules of the court shall control as in other civil actions)) shall conform with the process by which irrigation district assessments are foreclosed and property is sold.  The board may in the same year use the assessment method for part of the lands in the district and the rates or tolls and charges method for the remaining lands in the district in ((such)) a proportion ((as)) it ((may)) deems advisable for the best interest of the district.

(6) The procedures ((herein)) provided in this section for the collection and enforcement of rates((,)) or tolls and charges also shall be applicable and available to ((the districts)) a district's board of directors for the collection and enforcement of charges for water imposed by contract entered into or administered by the district's board of directors.

        Sec. 26.  RCW 87.06.020 and 1988 c 134 s 2 are each amended to read as follows:

          (((1))) After thirty-six calendar months from the month of the date of delinquency, the treasurer shall prepare certificates of delinquency on ((the property)) properties for the unpaid irrigation district assessments((, and for costs and interest.  An individual certificate of delinquency may be prepared for each property or the individual certificates may be compiled and issued in one general certificate including all delinquent properties.  Each certificate shall contain the following information:

          (a) Description of the property assessed;

          (b) Street address of property, if available;

          (c) Years for which assessed;

          (d) Amount of delinquent assessments, costs, and interest;

          (e) Name appearing on the treasurer's most current assessment roll for the property; and

          (f) A statement that interest will be charged on the amount listed in (d) of this subsection at a rate of twelve percent per year, computed monthly and without compounding, from the date of the issuance of the certificate and that additional costs, incurred as a result of the delinquency, will be imposed, including the costs of a title search;

          (2))).  Except as provided in this chapter and RCW 87.03.265, 87.03.270, 87.03.271, and 87.03.272, an assessment lien shall be foreclosed and the property sold by the irrigation district in the name of the irrigation district with the assistance of an attorney representing the irrigation district using the same procedure as for the foreclosure of liens on real property for delinquent property taxes and sale of the property.  If an assessment lien is foreclosed and property sold using this procedure, the irrigation district shall execute a warranty deed to the purchaser.

As an alternative, an assessment lien may be foreclosed by the county treasurer under an agreement provided in section 8 of this act.  The treasurer may provide for the posting of the certificates or other measures designed to advertise the certificates and encourage the payment of the amounts due.

        Sec. 27.  RCW 87.06.080 and 1988 c 134 s 8 are each amended to read as follows:

          (((1) The treasurer shall post notice of the foreclosure sale, at least ten days before the sale, at the following locations:  At the courthouse of the county in which the property is located, at the district office, and at a public place in the district.  The treasurer shall also publish, at least once and not fewer than ten days before the sale, the notice in any daily or weekly legal newspaper of general circulation in the district.

          (2) The notice shall be in substantially the following form:

                                                 IRRIGATION ASSESSMENT JUDGMENT SALE

          Public notice is hereby given that pursuant to judgment, rendered on . . . . . ., of the superior court of the county of . . . . . . in the state of Washington, that I shall sell the property described below, at a foreclosure sale beginning at . . . . . . (time), on . . . . . . (date), at . . . . . . (location), in the city of . . . . . . . . . . ., and county of . . . . . . . . . . ., state of Washington.  This sale is made in order to pay for delinquent assessments, costs, and interest owed to . . . . . . . . . . .  The property will be sold to the highest and best bidder but bids will not be accepted for less than the minimum sale price set by the superior court.  The minimum sale price is listed on the bid sheet, a copy of which is provided at the treasurer's office.  Payment must be made at time of sale and must be by cash, bank cashier's check, or a negotiable instrument of equivalent security.

          Description of property:  ..................................................................................................................................................................

          Interested parties and members of the public are invited to participate in this sale.  This sale will not take place if by . . . . . . (time), on . . . . . . (date), the amount due . . . ., is paid in the manner specified by law.

                                                   ........................................................................................................................................................

                                                    Treasurer for ..............................................................................................................................

                                                    Irrigation District

                                                    Date signed: ................................................................................................................................

          (3) The treasurer shall conduct the sale in conformance with the notice and this chapter.  If the sale is conducted by the county treasurer, no county or district officer or employee may directly or indirectly be a purchaser.  If the irrigation district treasurer conducts the sale, no officer or employee of the district may directly or indirectly be a purchaser.

          (4))) If the bid amount paid for the property ((is in excess of)) exceeds the lien amount for which the judgment has been rendered((,)) plus any additional assessments, costs, and interest which have become due after the date of preparation of the certificate of delinquency and before the date of sale, then the excess shall be remitted, on application ((therefor)), to the owner of the property.  If no claim for the excess is received by the treasurer within three years after the date of the sale, the treasurer, at expiration of the three-year period, shall deposit the excess in the current expense fund of the district.

        Sec. 28.  RCW 87.06.090 and 1988 c 134 s 9 are each amended to read as follows:

          (((1) The treasurer shall execute a treasurer's deed to any person who purchases property at the foreclosure sale.  The deed shall vest title to the property therein described, without further acknowledgment or evidence of such conveyance, in the grantee or his or her heirs and assigns.  The treasurer's deed shall be substantially in the following form:

                                                                   TREASURER'S DEED

State of Washington

County of . . . . . .

          This indenture, made this . . . . . . day of . . . . . . . . . . ., . . . . . . . . . . ., between . . . . . . . . . . ., as treasurer of . . . . . . . . . . . irrigation district, state of Washington, party of the first part, and . . . . . . . . . . ., party of the second part:

          Witnesseth, that whereas, at the public sale of real property held on the . . . . . . day of . . . . . . . . . . ., . . . . . . . . . . ., pursuant to an irrigation assessment judgment entered in the superior court in the county of . . . . . . . . . . . on the . . . . . . . . . . . day of . . . . . . . . . . ., . . . . . ., in proceedings to foreclose assessment liens upon real property and an order of sale duly issued by the court, . . . . . . . . . . . duly purchased in compliance with the laws of the state of Washington, for and in consideration of the sum of . . . . . . . . . . . dollars the following described real property, to wit:  (Here place description of real property conveyed) and that . . . . . . . . . . . has complied with the laws of the state of Washington necessary to entitle (him, her, or them) to a deed for the real property.

          Now, therefore know ye, that, I . . . . . . . . . . ., treasurer of said irrigation district of . . . . . . . . . . ., state of Washington, in consideration of the premises and by virtue of the statutes of the state of Washington, in such cases provided, do hereby grant and convey unto . . . . . . . . . . ., his or her heirs and assigns, forever, the real property hereinbefore described, as fully and completely as said party of the first part can by virtue of the premises convey the same.

          Given under my hand and seal of office this . . . . . . day of . . . . . . . . . . ., A.D. . . . . . . . . . . .

                                                   ........................................................................................................................................................

                                                    Treasurer for ..............................................................................................................................

                                                    Irrigation District

          (2))) The title ((shall be)) on property sold by an irrigation district as the result of foreclosing on delinquent assessments is free from all encumbrances except for the following taxes and assessments if they are not due at the time of the foreclosure sale:  Property taxes, drainage or diking district assessments, drainage or diking improvement district assessments, ((and)) irrigation district assessments, and assessments imposed in a local improvement district by a local government.

        Sec. 29.  RCW 87.06.100 and 1988 c 134 s 10 are each amended to read as follows:

          (((1) Prior to the treasurer executing and conveying the deed, all persons or entities acquiring property at the foreclosure sale shall be required to pay the full amount of all assessments, costs, and interest for which judgment is rendered; and the full amount of the following if due at the time of the foreclosure sale:  Property taxes, drainage or diking district assessments, drainage or diking district improvement assessments, irrigation district assessments, and costs and interests relating to such taxes or assessments.  This subsection does not apply to the irrigation district's acquisition of property.

          (2))) At all sales of property, if no other bids are received, title to the property ((shall)) vests in the irrigation district and the district shall pay to the county any costs that may have been incurred by the county under this chapter for the foreclosure action.  The district's acquisition of the title shall be as absolute as if the property had been purchased by an individual under the provisions of this chapter((.  The deed provided for in RCW 87.06.090 shall be conveyed)) and a warranty deed shall be executed to the irrigation district for the property.

          (((3))) All property deeded to the district under the provisions of this chapter shall be stricken from the tax rolls as district property and exempt from taxation and shall not be taxed while property of the district.

          (((4))) If the irrigation district sells any property it has acquired under this chapter, then it shall not provide a deed to the purchaser until the purchaser pays all drainage or diking district assessments, drainage or diking improvement district assessments, irrigation district assessments, property taxes, costs, and interest that were due at the time the irrigation district acquired title to the property.

        Sec. 30.  RCW 87.80.180 and 1949 c 56 s 17 are each amended to read as follows:

          When ((said)) a budget has been finally adopted, the secretary of the board shall forthwith mail or deliver a copy of the budget showing the apportionment and charge to the representative on the board of joint control of each tract of land under the jurisdiction of the board((,)) but not in an irrigation district((, and such)).  The charge shall be in the nature of a special assessment against ((said)) the land and a lien against ((the same,)) it from and after January first following, superior to any other lien except that for general taxes((, and said)) and prior assessments.  The special assessment ((shall be)) is payable to the county treasurer at the same time and shall be collected and enforced by the county treasurer in the same manner as general taxes.  Collections of ((said)) special assessments shall be placed by the county treasurer in the control fund of the board of joint control ((hereinafter)) provided for in RCW 87.80.200.

        Sec. 31.  RCW 56.20.120 and 1987 c 449 s 7 are each amended to read as follows:

          Judgments foreclosing special assessments ((pursuant to RCW 35.50.260)) under section 4 of this act may also allow to sewer districts, in addition to delinquent installments, interest, penalties, and costs, such attorneys' fees as the court may find reasonable.

        Sec. 32.  RCW 57.16.150 and 1987 c 449 s 16 are each amended to read as follows:

          Judgments foreclosing local improvement assessments ((pursuant to RCW 35.50.260)) under section 4 of this act may also allow to water districts, in addition to delinquent installments, interest, penalties, and costs, such attorneys' fees as the court may adjudge reasonable.

NEW SECTION. Sec. 33.  The following acts or parts of acts are each repealed:

(1) RCW 84.64.040 and 1961 c 15 s 84.64.040;

(2) RCW 84.64.060 and 1963 c 88 s 1 & 1961 c 15 s 84.64.060;

(3) RCW 84.64.200 and 1981 c 322 s 6 & 1961 c 15 s 84.64.200;

(4) RCW 35.50.225 and 1982 c 91 s 6;

(5) RCW 35.50.240 and 1982 c 91 s 4 & 1965 c 7 s 35.50.240;

(6) RCW 35.50.250 and 1983 c 303 s 20, 1982 c 91 s 5, & 1965 c 7 s 35.50.250;

(7) RCW 35.50.260 and 1983 c 303 s 21, 1982 c 91 s 7, 1971 c 81 s 93, & 1965 c 7 s 35.50.260;

(8) RCW 87.06.010 and 1988 c 134 s 1;

(9) RCW 87.06.030 and 1988 c 134 s 3;

(10) RCW 87.06.040 and 1988 c 134 s 4;

(11) RCW 87.06.050 and 1988 c 134 s 5;

(12) RCW 87.06.060 and 1988 c 134 s 6;

(13) RCW 87.06.070 and 1988 c 134 s 7;

(14) RCW 87.06.110 and 1988 c 134 s 11; and

(15) RCW 87.06.120 and 1988 c 134 s 12.

NEW SECTION. Sec. 34.  Sections 2, 4, 5, 8, and 11 of this act are each added to chapter 84.64 RCW.

NEW SECTION. Sec. 35.  Part and section headings used in this act do not constitute any part of the law.

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