5016-S

AN ACT Relating to municipal utility liens; amending RCW 35.21.290, 35.67.200, 36.94.150, 56.16.100, and 57.08.080; adding new sections to Title 35 RCW; creating a new section; and providing an effective date.

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

NEW SECTION. Sec. 1. A new section is added to chapter Title 35 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, 36.94.150, 56.16.100, or 57.08.080 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 classes of customers, 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, 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.

(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 transferring the outstanding charge to the customer's new account. If a new account is opened and the outstanding charge is 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.

(5) For residential property only, if a landlord establishes that a utility has not made a good faith effort to comply with subsections (2) through (4) of this section, then any lien imposed on that premises under subsection (1) of this section during the time of noncompliance shall be dissolved. "Good faith effort" is established by record of electronic notation or any other reasonable evidence of compliance.

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, 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.

(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 city or town, the city or town may require payment of the outstanding charge prior to opening the account or transferring the outstanding charge to the customer's new account. If a new account is opened and the outstanding charge is not timely paid, the city or town 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.

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, 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.

(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 transferring the outstanding charge to the customer's new account. If a new account is opened and the outstanding charge is not timely paid, the county 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.

Sec. 5. RCW 56.16.100 and 1977 ex.s. c 300 s 6 are each amended to read as follows:

(1) The commissioners shall enforce collection of the sewer connection charges and sewerage disposal service charges against property to which and its owners to whom the service is available, such charges being deemed charges against the property to which the service is available, by addition of penalties of not more than ten percent thereof in case of failure to pay the charges at times fixed by resolution. The commissioners may provide by resolution that where either sewer connection charges or sewer service charges are delinquent for any specified period of time, the district shall certify the delinquencies to the treasurer of the county in which the real property is located, and the charges and any penalties added thereto and interest thereon at the rate fixed by resolution, shall be a lien against the property to which the service was available, subject only to the lien for general taxes.

(2) The district shall furnish information relating to a customer's current billing status, 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 district 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 district. If the objections are filed, the district shall promptly investigate the objections and notify the utility or information network to whom the information was furnished if corrections are required. The district may charge the customer who requests a current billing status, including any unpaid delinquencies a reasonable fee for providing the information but may at their 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.

(3) A district 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 district is otherwise notified by the landlord. It is the responsibility of the landlord to notify the district of a change of address. The district 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 district, the district may require payment of the outstanding charge prior to opening the account or transferring the outstanding charge to the customer's new account. If a new account is opened and the outstanding charge is not timely paid, the district 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.

Sec. 6. RCW 57.08.080 and 1982 1st ex.s. c 17 s 12 are each amended to read as follows:

(1) The commissioners shall enforce collection of the water connection charges and rates and charges for water supplied against property owners connecting with the system and/or receiving such water, such charges being deemed charges against the property served, by addition of penalties of not more than ten percent thereof in case of failure to pay the charges at times fixed by resolution. The commissioners may provide by resolution that where either water connection charges or rates and charges for water supplied are delinquent for any specified period of time, the district shall certify the delinquencies to the treasurer of the county in which the real property is located, and the charges and any penalties added thereto and interest thereon at the rate of not more than eight percent per year shall be a lien against the property upon which the service was received, subject only to the lien for general taxes.

(2) The district shall furnish information relating to a customer's current billing status, 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 district 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 district. If objections are filed, the district shall promptly investigate the objections and notify the utility or information network to whom the information was furnished if corrections are required. The district may charge the customer who requests a current billing status, including any unpaid delinquencies a reasonable fee for providing the information but may at their 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.

(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 district, the district may require payment of the outstanding charge prior to opening the account or transferring the outstanding charge to the customer's new account. If a new account is opened and the outstanding charge is not timely paid, the district may exercise the authority it has to disconnect service as if the outstanding charge had been incurred on the new account. This section shall not in any manner 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.

NEW SECTION. Sec. 7. A new section is added to Title 35 RCW to read as follows:

All charges for water, storm water, sewer, garbage, electricity, and natural gas that after the effective date of this act may be assessed by a political subdivision of the state, together with interest on the charge, are declared to be a lien for which no filing is required on the real property to which the services were furnished. The lien 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 only after a fee interest is conveyed in the subject property. Unless otherwise expressly stated in writing and specifically acknowledged by the purchaser of a fee interest in the subject 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 under chapter 18.44 RCW 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.

NEW SECTION. Sec. 8. A new section is added to Title 35 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 political subdivision of the state 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 that 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. 9. This act shall take effect June 1, 1995.

NEW SECTION. Sec. 10. Utilities are encouraged to implement this act before June 1, 1995.