AN
ACT Relating to unrecorded utility liens; amending RCW 57.08.081 and 87.03.445;
and adding a new section to chapter 35.21 RCW.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1. A
new section is added to chapter 35.21 RCW to read as follows:
(1)
Prior to furnishing utility services, a city or town may require a deposit to
guarantee payment for services. However, failure to require a deposit does not
affect the validity of any lien authorized by RCW 35.21.290 or 35.67.200. A
city or town may determine how to apply partial payments on past due accounts.
(2)
A city or town may provide a real property owner or the owner's designee with
duplicates of tenant utility service bills, or may notify an owner or the
owner's designee that a tenant's utility account is delinquent. However, if an
owner or the owner's designee notifies the city or town in writing that a
property served by the city or town is a rental property, asks to be notified
of a tenant's delinquency, and has provided, in writing, a complete and
accurate mailing address, the city or town shall notify the owner or the
owner's designee of a tenant's delinquency at the same time and in the same
manner the city or town notifies the tenant of the tenant's delinquency or by
mail. When a city or town provides a real property owner or the owner's
designee with duplicates of tenant utility service bills or notice that a
tenant's utility account is delinquent, the city or town shall notify the
tenant that it is providing the duplicate bills or delinquency notice to the
owner or the owner's designee. After January 1, 1999, if a city or town fails
to notify the owner of a tenant's delinquency after receiving a written request
to do so and after receiving the other information required by this subsection,
the city or town shall have no lien against the premises for the tenant's
delinquent and unpaid charges.
Sec.
2. RCW
57.08.081 and 1997 c 447 s 19 are each amended to read as follows:
(1)
The commissioners of any district shall provide for revenues by fixing rates
and charges for furnishing sewer and drainage service and facilities to those
to whom service is available or for providing water, such rates and charges to
be fixed as deemed necessary by the commissioners, so that uniform charges will
be made for the same class of customer or service and facility. Rates and
charges may be combined for the furnishing of more than one type of sewer
service and facility, such as, but not limited to, storm
or surface water and sanitary.
(2)
In classifying customers of such water, sewer, or drainage system, the board of
commissioners may in its discretion consider any or all of the following
factors: The difference in cost to various customers; the location of the
various customers within and without the district; the difference in cost of
maintenance, operation, repair, and replacement of the various parts of the
system; the different character of the service furnished various customers; the
quantity and quality of the service and facility furnished; the time of its
use; the achievement of water conservation goals and the discouragement of
wasteful practices; capital contributions made to the system including but not
limited to assessments; and any other matters which present a reasonable
difference as a ground for distinction. Rates shall be established as deemed
proper by the commissioners and as fixed by resolution and shall produce
revenues sufficient to take care of the costs of maintenance and operation,
revenue bond and warrant interest and principal amortization requirements, and
all other charges necessary for efficient and proper operation of the system. Prior
to furnishing services, a district may require a deposit to guarantee payment
for services. However, failure to require a deposit does not affect the
validity of any lien authorized by this section.
(3)
The commissioners shall enforce collection of connection charges, and rates and
charges for water supplied against property owners connecting with the system
or receiving such water, and for sewer and drainage services charged against
property to which and its owners to whom the service is available, 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 connection charges or rates and charges for services 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 the prime lending rate of the district's bank plus
four percentage points per year shall be a lien against the property upon which
the service was received, subject only to the lien for general taxes.
(4)
The district may, at any time after the connection charges or rates and charges
for services supplied or available and penalties are delinquent for a period of
sixty days, bring suit in foreclosure by civil action in the superior court of
the county in which the real property is located. The court may allow, in
addition to the costs and disbursements provided by statute, attorneys' fees,
title search and report costs, and expenses as it adjudges reasonable. The
action shall be in rem, and may be brought in the name of the district against
an individual or against all of those who are delinquent in one action. The
laws and rules of the court shall control as in other civil actions.
(5)
In addition to the right to foreclose provided in this section, the district
may also cut off all or part of the service after charges for water or sewer
service supplied or available are delinquent for a period of ((sixty)) thirty
days.
(6)
A district may determine how to apply partial payments on past due accounts.
(7)
A district may provide a real property owner or the owner's designee with
duplicate bills for service to tenants, or may notify an owner or the owner's
designee that a tenant's service account is delinquent. However, if an owner
or the owner's designee notifies the district in writing that a property served
by the district is a rental property, asks to be notified of a tenant's delinquency,
and has provided, in writing, a complete and accurate mailing address, the
district shall notify the owner or the owner's designee of a tenant's
delinquency at the same time and in the same manner the district notifies the
tenant of the tenant's delinquency or by mail. When a district provides a real
property owner or the owner's designee with duplicates of tenant utility
service bills or notice that a tenant's utility account is delinquent, the
district shall notify the tenant that it is providing the duplicate bills or
delinquency notice to the owner or the owner's designee. After January 1,
1999, if a district fails to notify the owner of a tenant's delinquency after
receiving a written request to do so and after receiving the other information required
by this subsection (7), the district shall have no lien against the premises
for the tenant's delinquent and unpaid charges.
Sec.
3. 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, and the 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
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 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 the same powers and functions for the purpose of said levy as
possessed by it in case of levy to pay bonds of the district. The procedure
for the collection of assessments by such 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 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 schedule of rates or tolls and
charges shall be equalized pursuant to the same notice, in the same manner, at
the same time and with the same legal effect as in the case of assessments.
Such 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 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 to be
paid in advance of delivery of water and other service. All tolls and charges
levied shall also 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 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 no requirement
that the schedule referred to in the preceding paragraph 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 rates or tolls
and charges against property to which and its owners to whom the service is
available, such rates or tolls and charges being deemed charges against the
property to which the service is available. Prior to furnishing services, a
board may require a deposit to guarantee payment for services. However,
failure to require a deposit does not affect the validity of any lien
authorized by this section.
(6)
The board may provide by resolution that where such 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 penalties added thereto and interest thereon
at the rate not to exceed twelve percent per annum fixed by resolution shall be
a lien against the property to which the service was available, subject only to
the lien for general taxes. The district may, at any time after such rates or
tolls and charges and penalties provided for herein 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.
(7)
A board may determine how to apply partial payments on past due accounts.
(8)
A board may provide a real property owner or the owner's designee with
duplicate bills for service to tenants, or may notify an owner or the owner's
designee that a tenant's service account is delinquent. However, if an owner
or the owner's designee notifies the board in writing that a property served by
the board is a rental property, asks to be notified of a tenant's delinquency,
and has provided, in writing, a complete and accurate mailing address, the
board shall notify the owner or the owner's designee of a tenant's delinquency
at the same time and in the same manner the board notifies the tenant of the
tenant's delinquency or by mail. When a district provides a real property
owner or the owner's designee with duplicates of tenant utility service bills
or notice that a tenant's utility account is delinquent, the district shall
notify the tenant that it is providing the duplicate bills or delinquency
notice to the owner or the owner's designee. After January 1, 1999, if a board
fails to notify the owner of a tenant's delinquency after receiving a written
request to do so and after receiving the other information required by this
subsection (8), the board shall have no lien against the premises for the
tenant's delinquent and unpaid charges.
(9)
The court may allow, in addition to the costs and disbursements provided by
statute, such ((attorney's)) attorneys' 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. 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 proportion
as it may deem advisable for the best interest of the district.
(10)
The procedures herein provided for the collection and enforcement of rates,
tolls, and charges also shall be applicable and available to the
districts 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.
