BILL REQ. #:  S-4144.2 

Read first time 01/26/10.   Referred to Committee on Government Operations & Elections.

     AN ACT Relating to allowing county treasurers to use electronic bill presentment and payment that includes an automatic electronic payment option for property taxes; amending RCW 84.56.020; reenacting and amending RCW 43.84.092; and adding a new section to chapter 84.56 RCW.

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

Sec. 1   RCW 84.56.020 and 2008 c 181 s 510 are each amended to read as follows:
     (1) The county treasurer ((shall)) must be the receiver and collector of all taxes extended upon the tax rolls of the county, whether levied for state, county, school, bridge, road, municipal or other purposes, and also of all fines, forfeitures or penalties received by any person or officer for the use of his or her county. No treasurer ((shall)) may accept tax payments or issue receipts for the same until the treasurer has completed the tax roll for the current year's collection and provided notification of the completion of the roll. Notification may be accomplished electronically, by posting a notice in the office, or through other written communication as determined by the treasurer. All taxes upon real and personal property made payable by the provisions of this title ((shall be)) are due and payable to the treasurer on or before the thirtieth day of April and, except as provided in this section, shall be delinquent after that date.
     (2) Each tax statement ((shall)) must include a notice that checks for payment of taxes may be made payable to "Treasurer of . . . . . . County" or other appropriate office, but tax statements ((shall)) may not include any suggestion that checks may be made payable to the name of the individual holding the office of treasurer nor any other individual.
     (3) When the total amount of tax or special assessments on personal property or on any lot, block or tract of real property payable by one person is fifty dollars or more, and if one-half of such tax be paid on or before the thirtieth day of April, the remainder of such tax ((shall be)) is due and payable on or before the thirty-first day of October following and shall be delinquent after that date.
     (4) When the total amount of tax or special assessments on any lot, block or tract of real property or on any mobile home payable by one person is fifty dollars or more, and if one-half of such tax be paid after the thirtieth day of April but before the thirty-first day of October, together with the applicable interest and penalty on the full amount of tax payable for that year, the remainder of such tax ((shall be)) is due and payable on or before the thirty-first day of October following and ((shall be)) is delinquent after that date.
     (5) Delinquent taxes under this section are subject to interest at the rate of twelve percent per annum computed on a monthly basis on the full year amount of tax unpaid from the date of delinquency until paid. Interest ((shall)) must be calculated at the rate in effect at the time of payment of the tax, regardless of when the taxes were first delinquent. In addition, delinquent taxes under this section are subject to penalties as follows:
     (a) A penalty of three percent of the full year amount of tax unpaid ((shall be)) is assessed on the tax delinquent on June 1st of the year in which the tax is due.
     (b) An additional penalty of eight percent ((shall be)) is assessed on the amount of tax delinquent on December 1st of the year in which the tax is due.
     (6) Subsection (5) of this section notwithstanding, no interest or penalties may be assessed during any period of armed conflict on delinquent taxes imposed on the personal residences owned by active duty military personnel who are participating as part of one of the branches of the military involved in the conflict and assigned to a duty station outside the territorial boundaries of the United States.
     (7) During a state of emergency declared under RCW 43.06.010(12), the county treasurer, on his or her own motion or at the request of any taxpayer affected by the emergency, may grant extensions of the due date of any taxes payable under this section as the treasurer deems proper.
     (8) For purposes of this chapter, "interest" means both interest and penalties.
     (9) All collections of interest on delinquent taxes ((shall)) must be credited to the county current expense fund; but the cost of foreclosure and sale of real property, and the fees and costs of distraint and sale of personal property, for delinquent taxes, ((shall)) must, when collected, be credited to the operation and maintenance fund of the county treasurer prosecuting the foreclosure or distraint or sale; and ((shall)) must be used by the county treasurer as a revolving fund to defray the cost of further foreclosure, distraint and sale for delinquent taxes without regard to budget limitations.
     (10) For the purposes of this chapter, subject to the provisions of this section, section 3 of this act, and RCW 36.29.190:
     (a) A county treasurer is authorized, but not required, to collect taxes, assessments, fees, rates, and charges by electronic bill presentment and payment.
     (b) Electronic bill payment is optional for the taxpayer and may not be required.
     (c) Electronic bill presentment and payment may be monthly or such other periodic basis as the county treasurer deems proper as a prepayment. All prepayments must be paid in full by the due date in (e) of this subsection.
     (d) The county treasurer must provide by electronic means a payment agreement, which must be approved by the taxpayer prior to the sending of an electronic bill.
     (e) All taxes upon real and personal property made payable by the provisions of this title are due and payable to the county treasurer on or before the thirtieth day of April and are delinquent after that date. The remainder of such tax is due and payable on or before the thirty-first day of October following and is delinquent after that date. All other assessments, fees, rates, and charges are delinquent after the due date.
     (f) The county treasurer must pay any collection costs and investment earnings on prepayments to the credit of a special interest account in the operation and maintenance fund of the county treasurer to be used only for the payment of expenses incurred in administering the system for collecting prepayments.
     (11) For the purposes of this section, the following definitions apply:
     (a) "Electronic bill presentment and payment" means statements, invoices, or bills that are created, delivered, and paid using the internet. The term includes an automatic electronic payment from a person's checking account, debit account, or credit card.
     (b) "Internet" has the same meaning as provided in RCW 19.270.010.

NEW SECTION.  Sec. 2   A new section is added to chapter 84.56 RCW to read as follows:
     (1) To the extent that funds are collected, the department of revenue must administer a grant program for counties to assist in the development and implementation of an electronic bill presentment and payment system and to assist in complying with the requirements of RCW 84.56.020(10).
     (2) Subject to the limits in subsection (3) of this section, the amount of the grant is equal to the amount paid by a county to:
     (a) Purchase computer hardware or software, or to repair or upgrade existing computer hardware or software, used for the electronic bill presentment and payment system to collect taxes, assessments, fees, rates, and charges; and
     (b) Make changes to existing software that are necessary to comply with the requirements of RCW 84.56.020(10).
     (3) No county is eligible for grants under this section totaling more than one hundred thousand dollars.
     (4) No more than three million nine hundred thousand dollars in grants may be awarded under this section.
     (5) The source of funds for this grant program is the electronic bill presentment and payment technology grant account created in subsection (6) of this section.
     (6) The electronic bill presentment and payment technology grant account is created in the state treasury. Moneys in the account may be spent only after appropriation. After July 1, 2011, expenditures from the account may be used only for grants authorized under RCW 84.56.020(10) in the manner provided for in this section and RCW 84.56.020(10).
     (7) Any funds remaining in the electronic bill presentment and payment technology grant account on July 1, 2016, must be deposited in the general fund.
     (8) The definitions in RCW 84.56.020 apply to this section.

Sec. 3   RCW 43.84.092 and 2009 c 479 s 31, 2009 c 472 s 5, and 2009 c 451 s 8 are each reenacted and amended to read as follows:
     (1) All earnings of investments of surplus balances in the state treasury shall be deposited to the treasury income account, which account is hereby established in the state treasury.
     (2) The treasury income account shall be utilized to pay or receive funds associated with federal programs as required by the federal cash management improvement act of 1990. The treasury income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for refunds or allocations of interest earnings required by the cash management improvement act. Refunds of interest to the federal treasury required under the cash management improvement act fall under RCW 43.88.180 and shall not require appropriation. The office of financial management shall determine the amounts due to or from the federal government pursuant to the cash management improvement act. The office of financial management may direct transfers of funds between accounts as deemed necessary to implement the provisions of the cash management improvement act, and this subsection. Refunds or allocations shall occur prior to the distributions of earnings set forth in subsection (4) of this section.
     (3) Except for the provisions of RCW 43.84.160, the treasury income account may be utilized for the payment of purchased banking services on behalf of treasury funds including, but not limited to, depository, safekeeping, and disbursement functions for the state treasury and affected state agencies. The treasury income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for payments to financial institutions. Payments shall occur prior to distribution of earnings set forth in subsection (4) of this section.
     (4) Monthly, the state treasurer shall distribute the earnings credited to the treasury income account. The state treasurer shall credit the general fund with all the earnings credited to the treasury income account except:
     The following accounts and funds shall receive their proportionate share of earnings based upon each account's and fund's average daily balance for the period: The aeronautics account, the aircraft search and rescue account, the budget stabilization account, the capitol building construction account, the Cedar River channel construction and operation account, the Central Washington University capital projects account, the charitable, educational, penal and reformatory institutions account, the cleanup settlement account, the Columbia river basin water supply development account, the common school construction fund, the county arterial preservation account, the county criminal justice assistance account, the county sales and use tax equalization account, the data processing building construction account, the deferred compensation administrative account, the deferred compensation principal account, the department of licensing services account, the department of retirement systems expense account, the developmental disabilities community trust account, the drinking water assistance account, the drinking water assistance administrative account, the drinking water assistance repayment account, the Eastern Washington University capital projects account, the education construction fund, the education legacy trust account, the election account, the electronic bill presentment and payment technology grant account, the energy freedom account, the energy recovery act account, the essential rail assistance account, The Evergreen State College capital projects account, the federal forest revolving account, the ferry bond retirement fund, the freight congestion relief account, the freight mobility investment account, the freight mobility multimodal account, the grade crossing protective fund, the public health services account, the health system capacity account, the personal health services account, the high capacity transportation account, the state higher education construction account, the higher education construction account, the highway bond retirement fund, the highway infrastructure account, the highway safety account, the high occupancy toll lanes operations account, the industrial insurance premium refund account, the judges' retirement account, the judicial retirement administrative account, the judicial retirement principal account, the local leasehold excise tax account, the local real estate excise tax account, the local sales and use tax account, the medical aid account, the mobile home park relocation fund, the motor vehicle fund, the motorcycle safety education account, the multimodal transportation account, the municipal criminal justice assistance account, the municipal sales and use tax equalization account, the natural resources deposit account, the oyster reserve land account, the pension funding stabilization account, the perpetual surveillance and maintenance account, the public employees' retirement system plan 1 account, the public employees' retirement system combined plan 2 and plan 3 account, the public facilities construction loan revolving account beginning July 1, 2004, the public health supplemental account, the public transportation systems account, the public works assistance account, the Puget Sound capital construction account, the Puget Sound ferry operations account, the Puyallup tribal settlement account, the real estate appraiser commission account, the recreational vehicle account, the regional mobility grant program account, the resource management cost account, the rural arterial trust account, the rural Washington loan fund, the site closure account, the small city pavement and sidewalk account, the special category C account, the special wildlife account, the state employees' insurance account, the state employees' insurance reserve account, the state investment board expense account, the state investment board commingled trust fund accounts, the state patrol highway account, the state route number 520 corridor account, the supplemental pension account, the Tacoma Narrows toll bridge account, the teachers' retirement system plan 1 account, the teachers' retirement system combined plan 2 and plan 3 account, the tobacco prevention and control account, the tobacco settlement account, the transportation 2003 account (nickel account), the transportation equipment fund, the transportation fund, the transportation improvement account, the transportation improvement board bond retirement account, the transportation infrastructure account, the transportation partnership account, the traumatic brain injury account, the tuition recovery trust fund, the University of Washington bond retirement fund, the University of Washington building account, the urban arterial trust account, the volunteer firefighters' and reserve officers' relief and pension principal fund, the volunteer firefighters' and reserve officers' administrative fund, the Washington fruit express account, the Washington judicial retirement system account, the Washington law enforcement officers' and firefighters' system plan 1 retirement account, the Washington law enforcement officers' and firefighters' system plan 2 retirement account, the Washington public safety employees' plan 2 retirement account, the Washington school employees' retirement system combined plan 2 and 3 account, the Washington state health insurance pool account, the Washington state patrol retirement account, the Washington State University building account, the Washington State University bond retirement fund, the water pollution control revolving fund, and the Western Washington University capital projects account. Earnings derived from investing balances of the agricultural permanent fund, the normal school permanent fund, the permanent common school fund, the scientific permanent fund, and the state university permanent fund shall be allocated to their respective beneficiary accounts. All earnings to be distributed under this subsection (4) shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.
     (5) In conformance with Article II, section 37 of the state Constitution, no treasury accounts or funds shall be allocated earnings without the specific affirmative directive of this section.