BILL REQ. #:  S-3853.1 

Read first time 01/25/2006.   Referred to Committee on Water, Energy & Environment.

     AN ACT Relating to payment responsibility for utility service; and amending RCW 35.21.290, 35.67.200, 36.94.150, 57.08.081, and 80.28.010.

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

Sec. 1   RCW 35.21.290 and 1965 c 7 s 35.21.290 are each amended to read as follows:
     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)). However, 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)). Consequently, 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.
     All charges made for utility services must be charged to the customer who contracts for the services. In cases where the service contract is with the tenant of a property, collection of charges must be made from the tenant, and liens against the property owner are prohibited. A city or town may not refuse to provide service to a residential customer who is a tenant based on the nonpayment for services by the prior customer. The city or town may refuse to provide service if the prior nonpaying customer continues to reside in the premises.

Sec. 2   RCW 35.67.200 and 1991 c 36 s 2 are each amended to read as follows:
     Cities and towns owning their own sewer systems shall have a lien for delinquent and unpaid rates and charges for sewer service, penalties levied ((pursuant to)) under 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)) no more than eight percent per annum computed on a monthly basis((: PROVIDED, That)). However, 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.
     All charges made for utility services must be charged to the customer who contracts for the services. In cases where the service contract is with the tenant of a property, collection of charges must be made from the tenant, and liens against the property owner are prohibited. A city or town may not refuse to provide service to a residential customer who is a tenant based on the nonpayment for services by the prior customer. The city or town may refuse to provide service if the prior nonpaying customer continues to reside in the premises.

Sec. 3   RCW 36.94.150 and 1997 c 393 s 9 are each amended to read as follows:
     All counties operating a system of sewerage ((and/))or water, or both, 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)) not exceeding 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 auditor 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. Costs associated with the foreclosure of the lien, including, but not limited to, advertising, title report, and personnel costs, shall be added to the lien upon filing of the foreclosure action. 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.
     All charges made for utility services must be charged to the customer who contracts for the services. In cases where the service contract is with the tenant of a property, collection of charges must be made from the tenant, and liens against the property owner are prohibited. A county may not refuse to provide service to a residential customer who is a tenant based on the nonpayment for services by the prior customer. The county may refuse to provide service if the prior nonpaying customer continues to reside in the premises.

Sec. 4   RCW 57.08.081 and 2003 c 394 s 6 are each amended to read as follows:
     (1) Subject to RCW 57.08.005(6), 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)) to furnish more than one type of sewer or drainage service and facilities.
     (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 auditor 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) All charges made for utility services must be charged to the customer who contracts for the services. In cases where the service contract is with the tenant of a property, collection of charges must be made from the tenant, and liens against the property owner are prohibited. A district may not refuse to provide service to a residential customer who is a tenant based on the nonpayment for services by the prior customer. The district may refuse to provide service if the prior nonpaying customer continues to reside in the premises.
     (5) 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))) (6) In addition to the right to foreclose ((provided in)) under 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 thirty days.
     (((6))) (7) A district may determine how to apply partial payments on past due accounts.
     (((7))) (8) 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))) (8), the district shall have no lien against the premises for the tenant's delinquent and unpaid charges.

Sec. 5   RCW 80.28.010 and 1995 c 399 s 211 are each amended to read as follows:
     (1) All charges made, demanded, or received by any gas company, electrical company, or water company for gas, electricity, or water, or for any service rendered or to be rendered in connection therewith, shall be just, fair, reasonable, and sufficient. To meet the requirements of this subsection, all charges made for utility services must be charged to the customer who contracts for the services. In cases where the service contract is with the tenant of a property, collection of charges must be made from the tenant, and liens against the property owner are prohibited.
     (2) Every gas company, electrical company and water company shall furnish and supply such service, instrumentalities and facilities ((as shall be safe, adequate and efficient, and)) in all respects just and reasonable.
     (3) All rules and regulations issued by any gas company, electrical company, or water company, affecting or pertaining to the sale or distribution of its product, shall be just and reasonable.
     (4) Utility service for residential space heating shall not be terminated between November 15 through March 15 if the customer:
     (a) Notifies the utility of the inability to pay the bill, including a security deposit. This notice should be provided within five business days of receiving a payment overdue notice unless there are extenuating circumstances. If the customer fails to notify the utility within five business days and service is terminated, the customer can, by paying reconnection charges, if any, and fulfilling the requirements of this section, receive the protections of this chapter;
     (b) Provides self-certification of household income for the prior twelve months to a grantee of the department of community, trade, and economic development which administers federally funded energy assistance programs. The grantee shall determine that the household income does not exceed the maximum allowed for eligibility under the state's plan for low-income energy assistance under 42 U.S.C. 8624 and shall provide a dollar figure that is seven percent of household income. The grantee may verify information provided in the self-certification;
     (c) Has applied for home heating assistance from applicable government and private sector organizations and certifies that any assistance received will be applied to the current bill and future utility bills;
     (d) Has applied for low-income weatherization assistance to the utility or other appropriate agency if such assistance is available for the dwelling;
     (e) Agrees to a payment plan and agrees to maintain the payment plan. The plan will be designed both to pay the past due bill by the following October 15 and to pay for continued utility service. If the past due bill is not paid by the following October 15, the customer shall not be eligible for protections under this chapter until the past due bill is paid. The plan shall not require monthly payments in excess of seven percent of the customer's monthly income plus one-twelfth of any arrearage accrued from the date application is made and thereafter during November 15 through March 15. A customer may agree to pay a higher percentage during this period, but shall not be in default unless payment during this period is less than seven percent of monthly income plus one-twelfth of any arrearage accrued from the date application is made and thereafter. If assistance payments are received by the customer subsequent to implementation of the plan, the customer shall contact the utility to reformulate the plan; and
     (f) Agrees to pay the moneys owed even if he or she moves.
     (5) The utility shall:
     (a) Include in any notice that an account is delinquent and that service may be subject to termination, a description of the customer's duties in this section;
     (b) Assist the customer in fulfilling the requirements under this section;
     (c) Be authorized to transfer an account to a new residence when a customer who has established a plan under this section moves from one residence to another within the same utility service area;
     (d) Be permitted to disconnect service if the customer fails to honor the payment program. Utilities may continue to disconnect service for those practices authorized by law other than for nonpayment ((as provided for in)) under this subsection. Customers who qualify for payment plans under this section who default on their payment plans and are disconnected can be reconnected and maintain the protections afforded under this chapter by paying reconnection charges, if any, and by paying all amounts that would have been due and owing under the terms of the applicable payment plan, absent default, on the date on which service is reconnected; and
     (e) Advise the customer in writing at the time it disconnects service that it will restore service if the customer contacts the utility and fulfills the other requirements of this section.
     (6) A payment plan implemented under this section ((is)) must be consistent with RCW 80.28.080.
     (7) Every gas company and electrical company shall offer residential customers the option of a budget billing or equal payment plan. The budget billing or equal payment plan shall be offered to low-income customers eligible under the state's plan for low-income energy assistance prepared in accordance with 42 U.S.C. 8624(C)(1) without limiting availability to certain months of the year, without regard to the length of time the customer has occupied the premises, and without regard to whether the customer is the tenant or owner of the premises occupied.
     (8) A gas company, electric company, or water company may not refuse to provide service to a residential customer who is a tenant based on the nonpayment for services by the prior customer. Either company may refuse to provide service if the prior nonpaying customer continues to reside in the premises.
     (9) Every gas company, electrical company, and water company shall construct and maintain such facilities in connection with the manufacture and distribution of its product as will be efficient and safe to its employees and the public.
     (((9))) (10) An agreement between the customer and the utility, whether oral or written, shall not waive the protections afforded under this chapter.
     (((10))) (11) In establishing rates or charges for water service, water companies as defined in RCW 80.04.010 may consider the achievement of water conservation goals and the discouragement of wasteful water use practices.