BILL REQ. #: S-0088.2
State of Washington | 62nd Legislature | 2011 Regular Session |
Read first time 01/10/11. Referred to Committee on Economic Development, Trade & Innovation.
AN ACT Relating to private infrastructure development; amending RCW 80.04.010, 80.04.110, 80.04.160, 80.04.250, 80.04.500, 80.28.010, 80.28.020, 80.28.030, 80.28.040, 80.28.050, 80.28.060, 80.28.080, 80.28.090, 80.28.100, 80.28.110, 80.28.120, 80.28.130, 80.28.185, 80.28.240, 80.28.270, 80.28.275, 7.60.025, and 36.94.110; adding new sections to chapter 80.28 RCW; adding a new section to chapter 80.04 RCW; creating new sections; and providing an effective date.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 The legislature recognizes the critical
importance of infrastructure to the development of industrial,
commercial, and residential properties and finds that infill
development is often limited by the lack of infrastructure. The
legislature further finds that in many areas, public funding to extend
infrastructure is not available. It is the purpose of this act to
allow private utilities to provide infrastructure needed for economic
development in a manner that minimizes development sprawl.
Sec. 2 RCW 80.04.010 and 1995 c 243 s 2 are each amended to read
as follows:
As used in this title, unless specifically defined otherwise or
unless the context indicates otherwise:
(1) "Automatic location identification" means a system by which
information about a caller's location, including the seven-digit number
or ten-digit number used to place a 911 call or a different seven-digit
number or ten-digit number to which a return call can be made from the
public switched network, is forwarded to a public safety answering
point for display.
(2) "Automatic number identification" means a system that allows
for the automatic display of the seven-digit or ten-digit number used
to place a 911 call.
(3) "Commission" means the utilities and transportation commission.
(4) "Commissioner" means one of the members of such commission.
(5) "Competitive telecommunications company" means a
telecommunications company which has been classified as such by the
commission pursuant to RCW 80.36.320.
(6) "Competitive telecommunications service" means a service which
has been classified as such by the commission pursuant to RCW
80.36.330.
(7) "Corporation" includes a corporation, company, association or
joint stock association.
(8) "Person" includes an individual, a firm or partnership.
(9) "Gas plant" includes all real estate, fixtures and personal
property, owned, leased, controlled, used or to be used for or in
connection with the transmission, distribution, sale or furnishing of
natural gas, or the manufacture, transmission, distribution, sale or
furnishing of other type gas, for light, heat or power.
(10) "Gas company" includes every corporation, company,
association, joint stock association, partnership and person, their
lessees, trustees or receiver appointed by any court whatsoever, and
every city or town, owning, controlling, operating or managing any gas
plant within this state.
(11) "Electric plant" includes all real estate, fixtures and
personal property operated, owned, used or to be used for or in
connection with or to facilitate the generation, transmission,
distribution, sale or furnishing of electricity for light, heat, or
power for hire; and any conduits, ducts or other devices, materials,
apparatus or property for containing, holding or carrying conductors
used or to be used for the transmission of electricity for light, heat
or power.
(12) "Electrical company" includes any corporation, company,
association, joint stock association, partnership and person, their
lessees, trustees or receivers appointed by any court whatsoever (other
than a railroad or street railroad company generating electricity
solely for railroad or street railroad purposes or for the use of its
tenants and not for sale to others), and every city or town owning,
operating or managing any electric plant for hire within this state.
"Electrical company" does not include a company or person employing a
cogeneration facility solely for the generation of electricity for its
own use or the use of its tenants or for sale to an electrical company,
state or local public agency, municipal corporation, or quasi municipal
corporation engaged in the sale or distribution of electrical energy,
but not for sale to others, unless such company or person is otherwise
an electrical company.
(13) "LATA" means a local access transport area as defined by the
commission in conformance with applicable federal law.
(14) "Private telecommunications system" means a telecommunications
system controlled by a person or entity for the sole and exclusive use
of such person, entity, or affiliate thereof, including the provision
of private shared telecommunications services by such person or entity.
"Private telecommunications system" does not include a system offered
for hire, sale, or resale to the general public.
(15) "Private shared telecommunications services" includes the
provision of telecommunications and information management services and
equipment within a user group located in discrete private premises in
building complexes, campuses, or high-rise buildings, by a commercial
shared services provider or by a user association, through privately
owned customer premises equipment and associated data processing and
information management services and includes the provision of
connections to the facilities of a local exchange and to interexchange
telecommunications companies.
(16) "Private switch automatic location identification service"
means a service that enables automatic location identification to be
provided to a public safety answering point for 911 calls originating
from station lines served by a private switch system.
(17) "Radio communications service company" includes every
corporation, company, association, joint stock association,
partnership, and person, their lessees, trustees, or receivers
appointed by any court, and every city or town making available
facilities to provide radio communications service, radio paging, or
cellular communications service for hire, sale, or resale.
(18) "Telecommunications company" includes every corporation,
company, association, joint stock association, partnership and person,
their lessees, trustees or receivers appointed by any court whatsoever,
and every city or town owning, operating or managing any facilities
used to provide telecommunications for hire, sale, or resale to the
general public within this state.
(19) "Noncompetitive telecommunications service" means any service
which has not been classified as competitive by the commission.
(20) "Facilities" means lines, conduits, ducts, poles, wires,
cables, cross-arms, receivers, transmitters, instruments, machines,
appliances, instrumentalities and all devices, real estate, easements,
apparatus, property and routes used, operated, owned or controlled by
any telecommunications company to facilitate the provision of
telecommunications service.
(21) "Telecommunications" is the transmission of information by
wire, radio, optical cable, electromagnetic, or other similar means.
As used in this definition, "information" means knowledge or
intelligence represented by any form of writing, signs, signals,
pictures, sounds, or any other symbols.
(22) "Water system" includes all real estate, easements, fixtures,
personal property, dams, dikes, head gates, weirs, canals, reservoirs,
flumes or other structures or appliances operated, owned, used or to be
used for or in connection with or to facilitate the supply, storage,
distribution, sale, furnishing, diversion, carriage, apportionment or
measurement of water for power, irrigation, reclamation, manufacturing,
municipal, domestic or other beneficial uses for hire.
(23)(a) "Water company" includes every corporation, company,
association, joint stock association, partnership and person, their
lessees, trustees or receivers appointed by any court whatsoever, and
every city or town owning, controlling, operating, or managing any
water system for hire within this state((: PROVIDED, That)).
(b) For purposes of commission jurisdiction ((it shall)), "water
company" does not include any water system serving less than one
hundred customers where the average annual gross revenue per customer
does not exceed three hundred dollars per year, which revenue figure
may be increased annually by the commission by rule adopted pursuant to
chapter 34.05 RCW to reflect the rate of inflation as determined by the
implicit price deflator of the United States department of commerce((:
AND PROVIDED FURTHER, That such)). The measurement of customers or
revenues ((shall)) must include all portions of water companies having
common ownership or control, regardless of location or corporate
designation.
(c) "Control" ((as used herein shall be)) is defined by the
commission by rule and ((shall)) does not include management by a
satellite agency as defined in chapter 70.116 RCW if the satellite
agency is not an owner of the water company.
(d) "Water company" also includes, for auditing purposes only,
nonmunicipal water systems which are referred to the commission
pursuant to an administrative order from the department, or the city or
county as provided in RCW 80.04.110. ((However,))
(e) Water companies exempt from commission regulation ((shall be))
are subject to the provisions of chapter 19.86 RCW. A water company
cannot be removed from regulation except with the approval of the
commission. Water companies subject to regulation may petition the
commission for removal from regulation if the number of customers falls
below one hundred or the average annual revenue per customer falls
below three hundred dollars. The commission is authorized to maintain
continued regulation if it finds that the public interest so requires.
(24) "Cogeneration facility" means any machinery, equipment,
structure, process, or property, or any part thereof, installed or
acquired for the primary purpose of the sequential generation of
electrical or mechanical power and useful heat from the same primary
energy source or fuel.
(25) "Public service company" includes every gas company,
electrical company, telecommunications company, wastewater company, and
water company. Ownership or operation of a cogeneration facility does
not, by itself, make a company or person a public service company.
(26) "Local exchange company" means a telecommunications company
providing local exchange telecommunications service.
(27) "Department" means the department of health.
((The term)) (28) "Service" is used in this title in its broadest
and most inclusive sense.
(29)(a) "Wastewater company" means a corporation, company,
association, joint stock association, partnership and person, their
lessees, trustees, or receivers that owns or proposes to develop and
own a system of sewerage that is designed for a peak daily flow of
twenty-seven thousand to one hundred thousand gallons per day if
treatment is by a large on-site sewage system, or to serve one hundred
or more customers.
(b) For purposes of commission jurisdiction, wastewater company
does not include (i) municipal, county, or other publicly owned systems
of sewerage; or (ii) wastewater companies service to customers outside
of an urban growth area as defined in RCW 36.70A.030.
(30) "System of sewerage" means collection, treatment, and disposal
facilities and services for sewage, or storm or surface water run-off.
NEW SECTION. Sec. 3 A new section is added to chapter 80.28 RCW
to read as follows:
(1) A wastewater company may not own and operate or contract to
operate a system of sewerage for compensation without first having
obtained from the commission a certificate declaring that the public
convenience and necessity requires such operation.
(2) Issuance of the certificate of public convenience and necessity
must be determined on, but not limited to, the following factors:
(a) A comprehensive business plan detailing the design,
construction, operation, and maintenance of the proposed service
system;
(b) Demonstration of sufficient financial resources to properly
operate and maintain the proposed system, and to replace and upgrade
capital assets;
(c) The need to develop a new stand alone system instead of
connecting to an existing system;
(d) A statement of prior experience, if any, in such field by the
petitioner, set out in an affidavit or declaration;
(e) A certification from the municipal corporation that it is not
willing and able to provide the sewerage services being proposed; and
(f) A certification from the municipal corporation that the
company's proposed service is consistent with the locally approved
general sewer plan.
(3) The commission may, after providing notice and an opportunity
for public comment, issue certificates, or for good cause shown refuse
to issue them, or issue them for the partial exercise only of the
privilege sought, and may attach to the exercise of the rights granted
such terms and conditions as, in its judgment, the public convenience
and necessity may require.
(4) No certificate may be transferred to any private or nonprofit
entity unless authorized by the commission.
(5)(a) Prior to the commission approving a wastewater company to
provide new service or extend existing service, the wastewater company
must file and continuously maintain in effect, a bond, or equivalent
surety as determined by the commission, with the commission to ensure
that there are sufficient funds to:
(i) Design, construct, operate, and maintain the proposed system;
(ii) Replace and upgrade capital assets as required by federal or
state law, department of health, or department of ecology order; and
(iii) Allow additional connections to the system, if approved by
the department of health or the department of ecology.
(b) The bond, or its equivalent, is payable under this section to
the commission upon:
(i) A finding under sections 5(1), 13(3), or 14(3) of this act; or
(ii) Notice that the company does not intend to renew the bond or
its equivalent surety or has failed to renew the bond or its equivalent
surety.
(c) The commission must hold the payment in trust until an
acquiring wastewater company is designated under section 5 of this act
or a receiving entity is designated under section 13(3) or 14(3) of
this act, at which point the funds will be made available to the
company or entity to expend as directed by the commission.
(6) For purposes of issuing certificates under this chapter, the
commission may adopt rules to implement this section.
(7) A wastewater company must obtain commission approval before
expanding an existing system beyond the approved capacity set forth in
its certificate or acquiring new systems, either by construction or
purchase.
NEW SECTION. Sec. 4 A new section is added to chapter 80.04 RCW
to read as follows:
(1) Every wastewater company subject to regulation by the
commission must, on or before the date specified by the commission for
filing annual reports under RCW 80.04.080, pay to the commission a
regulatory fee.
(2) The commission must assess such regulatory fees in amounts
sufficient for the commission to recover the commission's actual and
reasonable costs of supervising and regulating wastewater companies.
(3) Any payment of a fee assessed under this section made after the
due date must include a late fee of two percent of the amount due.
(4) Delinquent fees accrue interest at the rate of one percent per
month.
(5) The provisions of RCW 80.04.030, 80.04.040, and 80.04.050 apply
to regulatory fees for wastewater companies.
(6) The commission is authorized and empowered to adopt and issue
rules and regulations to implement this section, including establishing
the methodologies and procedures for developing, assessing, and
collecting fees under this section.
NEW SECTION. Sec. 5 A new section is added to chapter 80.28 RCW
to read as follows:
(1) If the commission determines, after providing notice and
opportunity for a hearing in the manner required for complaints under
RCW 80.04.110, that a wastewater company is unfit to provide wastewater
service on any system of sewerage under its ownership, the commission
may order the transfer of any such system or systems to a capable
wastewater company.
(2) In determining whether a wastewater company is unfit to provide
wastewater service on a system of sewerage in consultation with the
department of health or the department of ecology as appropriate to the
agencies' jurisdiction, the commission may consider the company's
technical and managerial expertise to operate the system of sewerage,
the company's financial soundness and the company's willingness and
ability to make ongoing investments necessary to maintain compliance
with statutory and regulatory standards for the safety, adequacy,
efficiency, and reasonableness of the service provided.
(3) Before ordering the transfer of a system of sewerage owned by
a wastewater company that is unfit to provide service, the commission
must first determine that:
(a) Alternatives to the transfer are impractical or not
economically feasible;
(b) The acquiring wastewater company is willing and able to acquire
the system or systems of sewerage, financially sound, and has the
technical and managerial expertise to own and operate the system or
systems of sewerage in compliance with applicable statutory and
regulatory standards; and
(c) Rates paid by existing customers served by the acquiring
wastewater company will not increase unreasonably because of the
acquisition of the system of sewerage, or because of expenditures that
may be necessary to assure compliance with applicable statutory and
regulatory standards for the safety, adequacy, efficiency, and
reasonableness of the service provided.
(4) The sale price for the unfit wastewater company's system or
systems of sewerage assets must be determined by agreement between the
unfit wastewater company and the acquiring capable wastewater company
subject to a finding by the commission that the agreed price is
reasonable. A price is deemed reasonable if it does not exceed the
original cost of plant in service, minus accumulated depreciation,
minus contributions in aid to construction. If the unfit wastewater
company and the acquiring capable wastewater company are unable to
agree on the sale price or the commission finds that the agreed sale
price is not reasonable, the acquiring capable wastewater company may
institute a condemnation proceeding in superior court in the manner
provided by chapter 8.04 RCW to determine the compensation to be paid
by the acquiring capable wastewater company for the failed system or
systems of sewerage assets.
(5) The capable wastewater company acquiring an unfit wastewater
company's system or systems shall have the same limited immunity from
liability as wastewater companies assuming substandard systems as set
forth in RCW 80.28.275.
(6) The commission must provide copies of the notice required by
subsection (1) of this section to the department of health or the
department of ecology, as appropriate to the agencies' jurisdiction,
and all proximate public entities providing wastewater utility service.
(7) Any capable wastewater company approved by the commission to
acquire the system or systems of sewerage of an unfit wastewater
company must submit to the commission, for approval, a financial plan,
including a timetable, for bringing the acquired system of sewerage
assets into compliance with applicable statutory and regulatory
standards. The capable wastewater company must also provide a copy of
the plan to the department of health or the department of ecology, as
appropriate to the agencies' jurisdiction, and other state or local
agency as the commission may direct. The commission must give the
department of health or the department of ecology, as appropriate to
the agencies' jurisdiction, adequate opportunity to comment on the plan
and must consider any comments submitted in deciding whether or not to
approve the plan.
(8) The legislature grants to any private entity the power of
eminent domain, for exercise only under the circumstances described in
this section, and only to the extent necessary to acquire the
wastewater system as described in this section. This subsection does
not limit eminent domain authority granted by any other provision of
law.
NEW SECTION. Sec. 6 A new section is added to chapter 80.28 RCW
to read as follows:
(1) The commission may petition the court pursuant to chapter 7.60
RCW to place a wastewater company in receivership. The petition must
include the names of one or more qualified candidates for receiver who
have consented to assume operation of the system of sewerage. The
petition must also include a list of interested and qualified
individuals, municipal corporations, and wastewater companies with
experience in providing wastewater service and a history of
satisfactory operation of a system of sewerage. If no other entity is
willing and able to be named as receiver, the court must appoint the
county or other municipal corporation whose geographic boundaries
include, in whole or in part, the system of sewerage at issue. The
municipal corporation may designate one of its agencies or divisions to
operate the system, or it may contract with another entity to operate
the system. The department of health or department of ecology,
whichever has jurisdiction, must provide regulatory oversight for
managing the sewerage system.
(2) In any petition for receivership under subsection (1) of this
section, the commission must recommend the court grant the receiver
full authority to act in the best interests of the customers served by
the system of sewerage. The receiver must assess the capability, in
conjunction with the department of health or ecology, whichever has
jurisdiction, and local government, for the system to operate in
compliance with health and safety standards, and must report to the
court and the commission its recommendations for the company's future
operation of the system, including the formation of a water-sewer
district or other public entity, or ownership by another existing
wastewater company capable of providing service.
(3) If a petition for receivership and verifying affidavit executed
by an appropriate official allege an immediate and serious danger to
residents constituting an emergency, the court must set the matter for
hearing within three days and may appoint a temporary receiver ex parte
upon the strength of such petition and affidavit pending a full
evidentiary hearing, which must be held within fourteen days after
receipt of the petition.
(4) If the court imposes a bond upon a receiver, the amount must
reasonably relate to the level of operating revenue generated by, and
the capital value of, the wastewater company. Any receiver appointed
pursuant to this section may not be held personally liable for any good
faith, reasonable effort to assume possession of, and to operate, the
system in compliance with the court's orders, subject to the provisions
of law governing clean water as referenced by the commission by rule.
(5) The court must authorize the receiver to impose reasonable
assessments on the customers of the system of sewerage to recover
expenditures for improvements necessary for the public health and
safety.
(6) The commission must develop a plan for transfer of the system
of sewerage to a new operator. The commission must develop the plan
after notice to, and an opportunity to participate by, the receiver,
the municipal corporations whose geographic boundaries, in whole or in
part, include the system of sewerage at issue, and the public. The
commission must complete the plan no later than twelve months after
appointment of a receiver.
(a) If the commission finds that no private entity is able or
willing to take over the system of sewerage and decides the system of
sewerage should be taken over by a municipal corporation whose
geographic boundaries include the system of sewerage at issue, in whole
or in part, the commission must issue an order to that effect, and the
municipal corporation shall promptly institute negotiations to purchase
the system. If within six months of the commission's order the
negotiations fail or otherwise do not result in a purchase, the
municipal corporation must promptly institute an action in eminent
domain to acquire the system. The court must terminate the
receivership once the purchase is complete.
(b) If the commission decides the system of sewerage should be
taken over by a private entity, such as an individual or business, the
commission must issue an order to that effect, and that private entity
must promptly institute negotiations to purchase the system. If within
six months of the commission's order the negotiations fail or otherwise
do not result in a purchase, the private entity must promptly exercise
the power of eminent domain granted by subsection (9) of this section
to acquire the system. The court must terminate the receivership once
the purchase is complete.
(7) Other than pursuant to subsection (6)(a) and (b) of this
section, the court may not terminate the receivership, and order the
return of the system to the owners, unless the commission approves that
action. The court may impose reasonable conditions upon the return of
the system to the owner, including the posting of a bond or other
security, routine performance and financial audits, employment of
qualified operators and other staff or contracted services, compliance
with financial viability requirements, or other measures sufficient to
ensure the ongoing proper operation of the system.
(8) If, as part of the ultimate disposition of the system, an
eminent domain action is commenced to acquire the system of sewerage,
the court shall oversee any appraisal of the system conducted under
Title 7 RCW to assure that the appraised value properly reflects any
reduced value because of the necessity to make improvements to the
system. The court must have the authority to approve the appraisal,
and to modify it based on any information provided at an evidentiary
hearing. The court's determination of the proper value of the system,
based on the appraisal, is final, and only appealable if not supported
by substantial evidence. If the appraised value is appealed, the court
may order that the system's ownership be transferred upon payment of
the approved appraised value.
(9) The legislature grants any municipal corporation, and any
private entity the power of eminent domain, under the circumstances
described in this section, and to the extent necessary to acquire the
system of sewerage as described in this section. This subsection does
not limit eminent domain authority granted by any other provision of
law.
Sec. 7 RCW 80.04.110 and 1995 c 376 s 12 are each amended to read
as follows:
(1)(a) Complaint may be made by the commission of its own motion or
by any person or corporation, chamber of commerce, board of trade, or
any commercial, mercantile, agricultural or manufacturing society, or
any body politic or municipal corporation, or by the public counsel
section of the office of the attorney general, or its successor, by
petition or complaint in writing, setting forth any act or thing done
or omitted to be done by any public service corporation in violation,
or claimed to be in violation, of any provision of ((law)) this title,
Title 81 RCW, or of any order or rule of the commission((: PROVIDED,
That)).
(b) No complaint ((shall)) may be entertained by the commission
except upon its own motion, as to the reasonableness of the schedule of
the rates or charges of any gas company, electrical company, water
company, wastewater company, or telecommunications company, unless the
same be signed by the mayor, council or commission of the city or town
in which the company complained of is engaged in business, or not less
than twenty-five consumers or purchasers of such gas, electricity,
water, wastewater company services, or telecommunications service, or
at least twenty-five percent of the consumers or purchasers of the
company's service((: PROVIDED, FURTHER, That)).
(c) When two or more public service corporations, (meaning to
exclude municipal and other public corporations) are engaged in
competition in any locality or localities in the state, either may make
complaint against the other or others that the rates, charges, rules,
regulations or practices of such other or others with or in respect to
which the complainant is in competition, are unreasonable,
unremunerative, discriminatory, illegal, unfair or intending or tending
to oppress the complainant, to stifle competition, or to create or
encourage the creation of monopoly, and upon such complaint or upon
complaint of the commission upon its own motion, the commission ((shall
have)) has power, after notice and hearing as in other cases, to, by
its order, subject to appeal as in other cases, correct the abuse
complained of by establishing such uniform rates, charges, rules,
regulations or practices in lieu of those complained of, to be observed
by all of such competing public service corporations in the locality or
localities specified as ((shall be)) is found reasonable, remunerative,
nondiscriminatory, legal, and fair or tending to prevent oppression or
monopoly or to encourage competition, and upon any such hearing it
((shall be)) is proper for the commission to take into consideration
the rates, charges, rules, regulations and practices of the public
service corporation or corporations complained of in any other locality
or localities in the state.
(2) All matters upon which complaint may be founded may be joined
in one hearing, and no motion ((shall)) may be entertained against a
complaint for misjoinder of complaints or grievances or misjoinder of
parties; and in any review of the courts of orders of the commission
the same rule shall apply and pertain with regard to the joinder of
complaints and parties as herein provided((: PROVIDED,)). However,
all grievances to be inquired into ((shall)) must be plainly set forth
in the complaint. No complaint ((shall)) may be dismissed because of
the absence of direct damage to the complainant.
(3) Upon the filing of a complaint, the commission ((shall)) must
cause a copy thereof to be served upon the person or corporation
complained of, which ((shall)) must be accompanied by a notice fixing
the time when and place where a hearing will be had upon such
complaint. The time fixed for such hearing ((shall)) may not be less
than ten days after the date of the service of such notice and
complaint, excepting as herein provided. The commission ((shall)) must
enter its final order with respect to a complaint filed by any entity
or person other than the commission within ten months from the date of
filing of the complaint, unless the date is extended for cause. Rules
of practice and procedure not otherwise provided for in this title may
be prescribed by the commission. Such rules may include the
requirement that a complainant use informal processes before filing a
formal complaint.
(4)(a) The commission ((shall)) may, as appropriate, audit a
nonmunicipal water system upon receipt of an administrative order from
the department, or the city or county in which the water system is
located, finding that the water delivered by a system does not meet
state board of health standards adopted under RCW 43.20.050(2)(a) or
standards adopted under chapters 70.116 and 70.119A RCW, and the
results of the audit ((shall)) must be provided to the requesting
department, city, or county. However, the number of nonmunicipal water
systems referred to the commission in any one calendar year shall not
exceed twenty percent of the water companies subject to commission
regulation as defined in RCW 80.04.010.
(b) Every nonmunicipal water system referred to the commission for
audit under this section shall pay to the commission an audit fee in an
amount, based on the system's twelve-month audited period, equal to the
fee required to be paid by regulated companies under RCW 80.24.010.
(5) Any customer or purchaser of service from a water system or
company that is subject to commission regulation may file a complaint
with the commission if he or she has reason to believe that the water
delivered by the system to the customer does not meet state drinking
water standards under chapter 43.20 or 70.116 RCW. The commission
((shall)) must investigate such a complaint, and ((shall)) must request
that the state department of health or local health department of the
county in which the system is located test the water for compliance
with state drinking water standards, and provide the results of such
testing to the commission. The commission may decide not to
investigate the complaint if it determines that the complaint has been
filed in bad faith, or for the purpose of harassment of the water
system or company, or for other reasons has no substantial merit. The
water system or company ((shall)) must bear the expense for the
testing. After the commission has received the complaint from the
customer and during the pendency of the commission investigation, the
water system or company ((shall)) may not take any steps to terminate
service to the customer or to collect any amounts alleged to be owed to
the company by the customer. The commission may issue an order or take
any other action to ensure that no such steps are taken by the system
or company. The customer may, at the customer's option and expense,
obtain a water quality test by a licensed or otherwise qualified water
testing laboratory, of the water delivered to the customer by the water
system or company, and provide the results of such a test to the
commission. If the commission determines that the water does not meet
state drinking water standards, it ((shall)) must exercise its
authority over the system or company as provided in this title, and
may, where appropriate, order a refund to the customer on a pro rata
basis for the substandard water delivered to the customer, and
((shall)) must order reimbursement to the customer for the cost
incurred by the customer, if any, in obtaining a water quality test.
Sec. 8 RCW 80.04.160 and 1961 c 14 s 80.04.160 are each amended
to read as follows:
The commission is hereby authorized and empowered to adopt,
promulgate and issue rules and regulations covering the transmission
and delivery of messages and conversations, and the furnishing and
supply of gas, electricity, wastewater company services, and water, and
any and all services concerning the same, or connected therewith; and
generally such rules as pertain to the comfort and convenience of the
public concerning the subjects treated of in this title. Such rules
and regulations ((shall)) must be promulgated and issued by the
commission on its own motion, and ((shall)) must be served on the
public service company affected thereby as other orders of the
commission are served. Any public service company affected thereby,
and deeming such rules and regulations, or any of them, improper,
unjust, unreasonable, or contrary to law, may within twenty days from
the date of service of such order upon it file objections thereto with
the commission, specifying the particular grounds of such objections.
The commission ((shall)) must, upon receipt of such objections, fix a
time and place for hearing the same, and after a full hearing may make
such changes or modifications thereto, if any, as the evidence may
justify. The commission ((shall have)) has, and it is hereby given,
power to adopt rules to govern its proceedings, and to regulate the
mode and manner of all investigations and hearings((: PROVIDED,)).
However, no person desiring to be present at such hearing ((shall)) may
be denied permission. Actions may be instituted to review rules and
regulations promulgated under this section as in the case of orders of
the commission.
Sec. 9 RCW 80.04.250 and 1991 c 122 s 2 are each amended to read
as follows:
(1) The commission ((shall have)) has power upon complaint or upon
its own motion to ascertain and determine the fair value for rate
making purposes of the property of any public service company used and
useful for service in this state and ((shall)) must exercise such power
whenever it shall deem such valuation or determination necessary or
proper under any of the provisions of this title. In determining what
property is used and useful for providing electric, gas, wastewater
company services, or water service, the commission may include the
reasonable costs of construction work in progress to the extent that
the commission finds that inclusion is in the public interest.
(2) The commission ((shall have)) has the power to make
revaluations of the property of any public service company from time to
time.
(3) The commission ((shall)) must, before any hearing is had,
notify the complainants and the public service company concerned of the
time and place of such hearing by giving at least thirty days' written
notice thereof, specifying that at the time and place designated a
hearing will be held for the purpose of ascertaining the value of the
company's property, used and useful as aforesaid, which notice
((shall)) must be sufficient to authorize the commission to inquire
into and pass upon the matters designated in this section.
Sec. 10 RCW 80.04.500 and 1985 c 450 s 13 are each amended to
read as follows:
Nothing in this title ((shall)) authorizes the commission to make
or enforce any order affecting rates, tolls, rentals, contracts or
charges or service rendered, or the adequacy or sufficiency of the
facilities, equipment, instrumentalities or buildings, or the
reasonableness of rules or regulations made, furnished, used, supplied
or in force affecting any telecommunications line, gas plant,
electrical plant, system of sewerage, or water system owned and
operated by any city or town, or to make or enforce any order relating
to the safety of any telecommunications line, electrical plant, system
of sewerage, or water system owned and operated by any city or town,
but all other provisions enumerated herein ((shall)) apply to public
utilities owned by any city or town.
Sec. 11 RCW 80.28.010 and 2008 c 299 s 35 are each amended to
read as follows:
(1) All charges made, demanded or received by any gas company,
electrical company, wastewater 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.
Reasonable charges necessary to cover the cost of administering the
collection of voluntary donations for the purposes of supporting the
development and implementation of evergreen community management plans
and ordinances under RCW 80.28.300 ((shall)) must be deemed as prudent
and necessary for the operation of a utility.
(2) Every gas company, electrical company, wastewater company, and
water company ((shall)) must 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, wastewater company, or water company, affecting or pertaining
to the sale or distribution of its product or service, ((shall)) must
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)) commerce, which administers federally funded
energy assistance programs. The grantee ((shall)) must 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)) must 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 15th and to pay for continued utility service. If
the past due bill is not paid by the following October 15, the customer
((shall)) is not ((be)) eligible for protections under this chapter
until the past due bill is paid. The plan ((shall)) may 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)) must 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 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 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 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) Every gas company, electrical company, wastewater company, and
water company ((shall)) must construct and maintain such facilities in
connection with the manufacture and distribution of its product, or
provision of its services, as will be efficient and safe to its
employees and the public.
(9) An agreement between the customer and the utility, whether oral
or written, ((shall)) does not waive the protections afforded under
this chapter.
(10) 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.
Sec. 12 RCW 80.28.020 and 1961 c 14 s 80.28.020 are each amended
to read as follows:
Whenever the commission shall find, after a hearing had upon its
own motion, or upon complaint, that the rates or charges demanded,
exacted, charged or collected by any gas company, electrical company,
wastewater company, or water company, for gas, electricity, wastewater
company services, or water, or in connection therewith, or that the
rules, regulations, practices or contracts affecting such rates or
charges are unjust, unreasonable, unjustly discriminatory or unduly
preferential, or in any wise in violation of the provisions of the law,
or that such rates or charges are insufficient to yield a reasonable
compensation for the service rendered, the commission ((shall)) must
determine the just, reasonable, or sufficient rates, charges,
regulations, practices or contracts to be thereafter observed and in
force, and ((shall)) must fix the same by order.
Sec. 13 RCW 80.28.030 and 1989 c 207 s 4 are each amended to read
as follows:
(1) Whenever the commission ((shall)) finds, after such hearing,
that the illuminating or heating power, purity or pressure of gas, the
efficiency of electric lamp supply, the voltage of the current supplied
for light, heat or power, the quality of wastewater company services,
or the purity, quality, volume, and pressure of water, supplied by any
gas company, electrical company, wastewater company, or water company,
as the case may be, is insufficient, impure, inadequate or inefficient,
it ((shall)) must order such improvement in the manufacture,
distribution or supply of gas, in the manufacture, transmission or
supply of electricity, in the operation of the services and facilities
of wastewater companies, or in the storage, distribution or supply of
water, or in the methods employed by such gas company, electrical
company, wastewater company, or water company, as will in its judgment
be efficient, adequate, just and reasonable. Failure of a water
company to comply with state board of health standards adopted under
RCW 43.20.050(2)(a) or department standards adopted under chapter
70.116 RCW for purity, volume, and pressure ((shall be)) is prima facie
evidence that the water supplied is insufficient, impure, inadequate,
or inefficient. Failure of a wastewater company to comply with
standards and permit conditions adopted and implemented under chapter
70.118B or 90.48 RCW for treatment and disposal of sewage, is prima
facie evidence that the system of sewerage is insufficient, inadequate,
or inefficient.
(2) In ordering improvements in the storage, distribution, or
supply of water, the commission ((shall)) must consult and coordinate
with the department of health. In the event that a water company fails
to comply with an order of the commission ((in a timely fashion))
within the deadline specified in the order, the commission may request
that the department petition the superior court of Thurston county to
place the company in receivership pursuant to chapter 7.60 RCW.
(3) In ordering improvements to the system of sewerage, the
commission must consult and coordinate with the department of health or
the department of ecology, as appropriate to the agencies'
jurisdiction. In the event that a wastewater company fails to comply
with an order of the commission within the deadline specified in the
order, the commission may petition the superior court of Thurston
county to place the company in receivership pursuant to chapter 7.60
RCW.
Sec. 14 RCW 80.28.040 and 1989 c 207 s 5 are each amended to read
as follows:
(1) Whenever the commission ((shall)) finds, after hearing, that
any rules, regulations, measurements or the standard thereof,
practices, acts or services of any such gas company, electrical
company, wastewater company, or water company are unjust, unreasonable,
improper, insufficient, inefficient or inadequate, or that any service
which may be reasonably demanded is not furnished, the commission
((shall)) must fix the reasonable rules, regulations, measurements or
the standard thereof, practices, acts or service to be thereafter
furnished, imposed, observed and followed, and ((shall)) must fix the
same by order or rule.
(2) In ordering improvements to the service of any water company,
the commission ((shall)) must consult and coordinate with the
department of health. In the event that a water company fails to
comply with an order of the commission within the deadline specified in
the order, the commission may request that the department petition the
superior court of Thurston county to place the company in receivership
pursuant to chapter 7.60 RCW.
(3) In ordering improvements to the service of any system of
sewerage, the commission must consult and coordinate with the
department of health or the department of ecology, as appropriate to
the agencies' jurisdiction. In the event that a wastewater company
fails to comply with an order of the commission within the deadline
specified in the order, the commission may petition the superior court
of Thurston county to place the company in receivership pursuant to
chapter 7.60 RCW.
Sec. 15 RCW 80.28.050 and 1961 c 14 s 80.28.050 are each amended
to read as follows:
Every gas company, electrical company, wastewater company, and
water company ((shall)) must file with the commission and ((shall))
must print and keep open to public inspection schedules in such form as
the commission may prescribe, showing all rates and charges made,
established or enforced, or to be charged or enforced, all forms of
contract or agreement, all rules and regulations relating to rates,
charges or service, used or to be used, and all general privileges and
facilities granted or allowed by such gas company, electrical company,
wastewater company, or water company.
Sec. 16 RCW 80.28.060 and 2008 c 181 s 402 are each amended to
read as follows:
(1) Unless the commission otherwise orders, no change ((shall)) may
be made in any rate or charge or in any form of contract or agreement
or in any rule or regulation relating to any rate, charge or service,
or in any general privilege or facility which shall have been filed and
published by a gas company, electrical company, wastewater company, or
water company in compliance with the requirements of RCW 80.28.050
except after thirty days' notice to the commission and publication for
thirty days, which notice ((shall)) must plainly state the changes
proposed to be made in the schedule then in force and the time when the
change will go into effect and all proposed changes ((shall)) must be
shown by printing, filing and publishing new schedules, or shall be
plainly indicated upon the schedules in force at the time and kept open
to public inspection. Proposed changes may be suspended by the
commission within thirty days or before the stated effective date of
the proposed change, whichever is later. The commission, for good
cause shown, may allow changes without requiring the thirty days'
notice by duly filing, in such manner as it may direct, an order
specifying the changes so to be made and the time when it ((shall))
takes effect. All such changes ((shall)) must be immediately indicated
upon its schedules by the company affected. When any change is made in
any rate or charge, form of contract or agreement, or any rule or
regulation relating to any rate or charge or service, or in any general
privilege or facility, the effect of which is to increase any rate or
charge, then in existence, attention ((shall)) must be directed on the
copy filed with the commission to such increase by some character
immediately preceding or following the item in such schedule, such
character to be in form as designated by the commission.
(2) During a state of emergency declared under RCW 43.06.010(12),
the governor may waive or suspend the operation or enforcement of this
section or any portion of this section or under any administrative
rule, and issue any orders to facilitate the operation of state or
local government or to promote and secure the safety and protection of
the civilian population.
Sec. 17 RCW 80.28.080 and 1985 c 427 s 2 are each amended to read
as follows:
(1)(a) Except as provided otherwise in this subsection, no gas
company, electrical company, wastewater company, or water company
((shall)) may charge, demand, collect or receive a greater or less or
different compensation for any service rendered or to be rendered than
the rates and charges applicable to such service as specified in its
schedule filed and in effect at the time, nor ((shall)) may any such
company directly or indirectly refund or remit in any manner or by any
device any portion of the rates or charges so specified, or furnish its
product at free or reduced rates except to its employees and their
families, and its officers, attorneys, and agents; to hospitals,
charitable and eleemosynary institutions and persons engaged in
charitable and eleemosynary work; to indigent and destitute persons; to
national homes or state homes for disabled volunteer soldiers and
soldiers' and sailors' homes((: PROVIDED, That the term)).
For the purposes of this subsection (1):
(i) "Employees" ((as used in this paragraph shall)) includes
furloughed, pensioned and superannuated employees, persons who have
become disabled or infirm in the service of any such company; and ((the
term))
(ii) "Families((,))" ((as used in this paragraph, shall)) includes
the families of those persons named in this proviso, the families of
persons killed or dying in the service, also the families of persons
killed, and the surviving spouse prior to remarriage, and the minor
children during minority of persons who died while in the service of
any of the companies named in this ((paragraph: PROVIDED FURTHER,
That)) subsection (1).
(b) Water companies may furnish free or at reduced rates water for
the use of the state, or for any project in which the state is
interested((: AND PROVIDED FURTHER, That)).
(c) Gas companies, electrical companies, wastewater companies, and
water companies may charge the defendant for treble damages awarded in
lawsuits successfully litigated under RCW 80.28.240.
(2) No gas company, electrical company, wastewater company, or
water company ((shall)) may extend to any person or corporation any
form of contract or agreement or any rule or regulation or any
privilege or facility except such as are regularly and uniformly
extended to all persons and corporations under like circumstances.
Sec. 18 RCW 80.28.090 and 1961 c 14 s 80.28.090 are each amended
to read as follows:
No gas company, electrical company, wastewater company, or water
company ((shall)) may make or grant any undue or unreasonable
preference or advantage to any person, corporation, or locality, or to
any particular description of service in any respect whatsoever, or
subject any particular person, corporation or locality or any
particular description of service to any undue or unreasonable
prejudice or disadvantage in any respect whatsoever.
Sec. 19 RCW 80.28.100 and 1961 c 14 s 80.28.100 are each amended
to read as follows:
No gas company, electrical company, wastewater company, or water
company ((shall)) may, directly or indirectly, or by any special rate,
rebate, drawback or other device or method, charge, demand, collect or
receive from any person or corporation a greater or less compensation
for gas, electricity, wastewater company services, or water, or for any
service rendered or to be rendered, or in connection therewith, except
as authorized in this chapter, than it charges, demands, collects or
receives from any other person or corporation for doing a like or
contemporaneous service with respect thereto under the same or
substantially similar circumstances or conditions.
Sec. 20 RCW 80.28.110 and 1990 c 132 s 5 are each amended to read
as follows:
Every gas company, electrical company, wastewater company, or water
company, engaged in the sale and distribution of gas, electricity or
water or the provision of wastewater company services, ((shall)) must,
upon reasonable notice, furnish to all persons and corporations who may
apply therefor and be reasonably entitled thereto, suitable facilities
for furnishing and furnish all available gas, electricity, wastewater
company services, and water as demanded, except that a water company
((shall)) may not furnish water contrary to the provisions of water
system plans approved under chapter 43.20 or 70.116 RCW and wastewater
companies may not provide services contrary to the approved general
sewer plan.
Sec. 21 RCW 80.28.120 and 1961 c 14 s 80.28.120 are each amended
to read as follows:
Every gas, water, wastewater, or electrical company owning,
operating or managing a plant or system for the distribution and sale
of gas, water or electricity, or the provision of wastewater company
services to the public for hire ((shall be)) is, and ((be)) is held to
be, a public service company as to such plant or system and as to all
gas, water, wastewater company services, or electricity distributed or
furnished therefrom, whether such gas, water, wastewater company
services, or electricity be sold wholesale or retail or be distributed
wholly to the general public or in part as surplus gas, water,
wastewater company services, or electricity to manufacturing or
industrial concerns or to other public service companies or
municipalities for redistribution. Nothing in this title ((shall)) may
be construed to prevent any gas company, electrical company or water
company from continuing to furnish its product or the use of its lines,
equipment or service under any contract or contracts in force on June
7, 1911, at the rates fixed in such contract or contracts((: PROVIDED,
That)). However, the commission ((shall have)) has power, in its
discretion, to direct by order that such contract or contracts
((shall)) be terminated by the company party thereto and thereupon such
contract or contracts ((shall)) must be terminated by such company as
and when directed by such order.
Sec. 22 RCW 80.28.130 and 1961 c 14 s 80.28.130 are each amended
to read as follows:
Whenever the commission ((shall)) finds, after hearing had upon its
own motion or upon complaint, that repairs or improvements, to, or
changes in, any gas plant, electrical plant, system of sewerage, or
water system ought to be made, or that any additions or extensions
should reasonably be made thereto, in order to promote the security or
convenience of the public or employees, or in order to secure adequate
service or facilities for manufacturing, distributing or supplying gas,
electricity, wastewater company services, or water, the commission may
enter an order directing that such reasonable repairs, improvements,
changes, additions or extensions of such gas plant, electrical plant,
system of sewerage, or water system be made.
Sec. 23 RCW 80.28.185 and 1989 c 207 s 6 are each amended to read
as follows:
The commission may develop and enter into an agreement with a
county to carry out the regulatory functions of this chapter with
regard to water companies or wastewater companies located within the
boundary of that county. The duration of the agreement, the duties to
be performed, and the remuneration to be paid by the commission are
subject to agreement by the commission and the county.
Sec. 24 RCW 80.28.240 and 1989 c 11 s 30 are each amended to read
as follows:
(1) A utility may bring a civil action for damages against any
person who commits, authorizes, solicits, aids, abets, or attempts to:
(a) Divert, or cause to be diverted, utility services by any means
whatsoever;
(b) Make, or cause to be made, any connection or reconnection with
property owned or used by the utility to provide utility service
without the authorization or consent of the utility;
(c) Prevent any utility meter or other device used in determining
the charge for utility services from accurately performing its
measuring function by tampering or by any other means;
(d) Tamper with any property owned or used by the utility to
provide utility services; or
(e) Use or receive the direct benefit of all or a portion of the
utility service with knowledge of, or reason to believe that, the
diversion, tampering, or unauthorized connection existed at the time of
the use or that the use or receipt was without the authorization or
consent of the utility.
(2) In any civil action brought under this section, the utility may
recover from the defendant as damages three times the amount of actual
damages, if any, plus the cost of the suit and reasonable attorney's
fees, plus the costs incurred on account of the bypassing, tampering,
or unauthorized reconnection, including but not limited to costs and
expenses for investigation, disconnection, reconnection, service calls,
and expert witnesses.
(3) Any damages recovered under this section in excess of the
actual damages sustained by the utility may be taken into account by
the utilities and transportation commission or other applicable rate-making agency in establishing utility rates.
(4) As used in this section:
(a) "Customer" means the person in whose name a utility service is
provided;
(b) "Divert" means to change the intended course or path of
electricity, gas, or water without the authorization or consent of the
utility;
(c) "Person" means any individual, partnership, firm, association,
or corporation or government agency;
(d) "Reconnection" means the commencement of utility service to a
customer or other person after service has been lawfully disconnected
by the utility;
(e) "Tamper" means to rearrange, injure, alter, interfere with, or
otherwise prevent from performing the normal or customary function;
(f) "Utility" means any electrical company, gas company, wastewater
company, or water company as those terms are defined in RCW 80.04.010,
and includes any electrical, gas, system of sewerage, or water system
operated by any public agency; and
(g) "Utility service" means the provision of electricity, gas,
water, wastewater company services, or any other service or commodity
furnished by the utility for compensation.
Sec. 25 RCW 80.28.270 and 1991 c 101 s 2 are each amended to read
as follows:
The commission's jurisdiction over the rates, charges, practices,
acts or services of any water company ((shall)) or wastewater company
include any aspect of line extension, service installation, or service
connection. If the charges for such services are not set forth by
specific amount in the company's tariff filed with the commission
pursuant to RCW 80.28.050, the commission ((shall)) must determine the
fair, just, reasonable, and sufficient charge for such extension,
installation, or connection. In any such proceeding in which there is
no specified tariffed rate, the burden ((shall be)) is on the company
to prove that its proposed charges are fair, just, reasonable, and
sufficient.
Sec. 26 RCW 80.28.275 and 1994 c 292 s 9 are each amended to read
as follows:
A water company or a wastewater company assuming responsibility for
a water system or system of sewerage that is not in compliance with
state or federal requirements ((for public drinking water systems)),
and its agents and employees, are immune from lawsuits or causes of
action, based on noncompliance with state or federal requirements ((for
public drinking water systems)), which predate the date of assuming
responsibility and continue after the date of assuming responsibility,
provided that the water company or wastewater company has submitted and
is complying with a plan and schedule of improvements approved by the
department of health or the department of ecology, as appropriate to
the agencies' jurisdiction. This immunity ((shall)) expires on the
earlier of the date the plan of improvements is completed or four years
from the date of assuming responsibility. This immunity does not apply
to intentional injuries, fraud, or bad faith and is subject to the
provisions of federal law governing clean water as referenced by the
commission by rule.
Sec. 27 RCW 7.60.025 and 2010 c 212 s 4 are each amended to read
as follows:
(1) A receiver may be appointed by the superior court of this state
in the following instances, but except in any case in which a
receiver's appointment is expressly required by statute, or any case in
which a receiver's appointment is sought by a state agent whose
authority to seek the appointment of a receiver is expressly conferred
by statute, or any case in which a receiver's appointment with respect
to real property is sought under (b)(ii) of this subsection, a receiver
shall be appointed only if the court additionally determines that the
appointment of a receiver is reasonably necessary and that other
available remedies either are not available or are inadequate:
(a) On application of any party, when the party is determined to
have a probable right to or interest in property that is a subject of
the action and in the possession of an adverse party, or when the
property or its revenue-producing potential is in danger of being lost
or materially injured or impaired. A receiver may be appointed under
this subsection (1)(a) whether or not the application for appointment
of a receiver is combined with, or is ancillary to, an action seeking
a money judgment or other relief;
(b) Provisionally, during the pendency of any action to foreclose
upon any lien against or for forfeiture of any interest in real or
personal property, or after notice of a trustee's sale has been given
under RCW 61.24.040, or after notice of forfeiture has been given under
RCW 61.30.040, on application of any person, when the interest in the
property that is the subject of foreclosure or forfeiture of the person
seeking the receiver's appointment is determined to be probable and
either:
(i) The property or its revenue-producing potential is in danger of
being lost or materially injured or impaired; or
(ii) The appointment of a receiver with respect to the real or
personal property that is the subject of the action, the notice of
trustee's sale or notice of forfeiture is provided for by agreement or
is reasonably necessary to effectuate or enforce an assignment of rents
or other revenues from the property;
(c) After judgment, in order to give effect to the judgment;
(d) To dispose of property according to provisions of a judgment
dealing with its disposition;
(e) To the extent that property is not exempt from execution, at
the instance of a judgment creditor either before or after the issuance
of any execution, to preserve or protect it, or prevent its transfer;
(f) If and to the extent that property is subject to execution to
satisfy a judgment, to preserve the property during the pendency of an
appeal, or when an execution has been returned unsatisfied, or when an
order requiring a judgment debtor to appear for proceedings
supplemental to judgment has been issued and the judgment debtor fails
to submit to examination as ordered;
(g) Upon an attachment of real or personal property when the
property attached is of a perishable nature or is otherwise in danger
of waste, impairment, or destruction, or where the abandoned property's
owner has absconded with, secreted, or abandoned the property, and it
is necessary to collect, conserve, manage, control, or protect it, or
to dispose of it promptly, or when the court determines that the nature
of the property or the exigency of the case otherwise provides cause
for the appointment of a receiver;
(h) In an action by a transferor of real or personal property to
avoid or rescind the transfer on the basis of fraud, or in an action to
subject property or a fund to the payment of a debt;
(i) In an action against any person who is not an individual if the
object of the action is the dissolution of that person, or if that
person has been dissolved, or if that person is insolvent or is not
generally paying the person's debts as those debts become due unless
they are the subject of bona fide dispute, or if that person is in
imminent danger of insolvency;
(j) In accordance with RCW 7.08.030 (4) and (6), in cases in which
a general assignment for the benefit of creditors has been made;
(k) In quo warranto proceedings under chapter 7.56 RCW;
(l) As provided under RCW 11.64.022;
(m) In an action by the department of licensing under RCW
18.35.220(3) with respect to persons engaged in the business of
dispensing of hearing aids, RCW 18.85.430 in the case of persons
engaged in the business of a real estate broker, associate real estate
broker, or real estate salesperson, or RCW 19.105.470 with respect to
persons engaged in the business of camping resorts;
(n) In an action under RCW 18.44.470 or 18.44.490 in the case of
persons engaged in the business of escrow agents;
(o) Upon a petition with respect to a nursing home in accordance
with and subject to receivership provisions under chapter 18.51 RCW;
(p) Under RCW 19.40.071(3), in connection with a proceeding for
relief with respect to a transfer fraudulent as to a creditor or
creditors;
(q) Under RCW 19.100.210(1), in an action by the attorney general
or director of financial institutions to restrain any actual or
threatened violation of the franchise investment protection act;
(r) In an action by the attorney general or by a prosecuting
attorney under RCW 19.110.160 with respect to a seller of business
opportunities;
(s) In an action by the director of financial institutions under
RCW 21.20.390 in cases involving actual or threatened violations of the
securities act of Washington or under RCW 21.30.120 in cases involving
actual or threatened violations of chapter 21.30 RCW with respect to
certain businesses and transactions involving commodities;
(t) In an action for or relating to dissolution of a business
corporation under RCW 23B.14.065, 23B.14.300, 23B.14.310, or
23B.14.320, for dissolution of a nonprofit corporation under RCW
24.03.271, for dissolution of a mutual corporation under RCW 24.06.305,
or in any other action for the dissolution or winding up of any other
entity provided for by Title 23, 23B, 24, or 25 RCW;
(u) In any action in which the dissolution of any public or private
entity is sought, in any action involving any dispute with respect to
the ownership or governance of such an entity, or upon the application
of a person having an interest in such an entity when the appointment
is reasonably necessary to protect the property of the entity or its
business or other interests;
(v) Under RCW 25.05.215, in aid of a charging order with respect to
a partner's interest in a partnership;
(w) Under and subject to RCW 30.44.100, 30.44.270, and 30.56.030,
in the case of a bank or trust company or, under and subject to RCW
32.24.070 through 32.24.090, in the case of a mutual savings bank;
(x) Under and subject to RCW 31.12.637 and 31.12.671 through
31.12.724, in the case of credit unions;
(y) Upon the application of the director of financial institutions
under RCW 31.35.090 in actions to enforce chapter 31.35 RCW applicable
to agricultural lenders, under RCW 31.40.120 in actions to enforce
chapter 31.40 RCW applicable to entities engaged in federally
guaranteed small business loans, under RCW 31.45.160 in actions to
enforce chapter 31.45 RCW applicable to persons licensed as check
cashers or check sellers, or under RCW 19.230.230 in actions to enforce
chapter 19.230 RCW applicable to persons licensed under the uniform
money services act;
(z) Under RCW 35.82.090 or 35.82.180, with respect to a housing
project;
(aa) Under RCW 39.84.160 or 43.180.360, in proceedings to enforce
rights under any revenue bonds issued for the purpose of financing
industrial development facilities or bonds of the Washington state
housing finance commission, or any financing document securing any such
bonds;
(bb) Under and subject to RCW 43.70.195, in an action by the
secretary of health or by a local health officer with respect to a
public water system;
(cc) As contemplated by RCW 61.24.030, with respect to real
property that is the subject of nonjudicial foreclosure proceedings
under chapter 61.24 RCW;
(dd) As contemplated by RCW 61.30.030(3), with respect to real
property that is the subject of judicial or nonjudicial forfeiture
proceedings under chapter 61.30 RCW;
(ee) Under RCW 64.32.200(2), in an action to foreclose upon a lien
for common expenses against a dwelling unit subject to the horizontal
property regimes act, chapter 64.32 RCW;
(ff) Under RCW 64.34.364(10), in an action by a unit owners'
association to foreclose a lien for nonpayment of delinquent
assessments against condominium units;
(gg) Upon application of the attorney general under RCW
64.36.220(3), in aid of any writ or order restraining or enjoining
violations of chapter 64.36 RCW applicable to timeshares;
(hh) Under RCW 70.95A.050(3), in aid of the enforcement of payment
or performance of municipal bonds issued with respect to facilities
used to abate, control, or prevent pollution;
(ii) Upon the application of the department of social and health
services under RCW 74.42.580, in cases involving nursing homes;
(jj) Upon the application of the utilities and transportation
commission under RCW 80.28.040, with respect to a water company or
wastewater company that has failed to comply with an order of such
commission within the time deadline specified therein;
(kk) Under RCW 87.56.065, in connection with the dissolution of an
irrigation district;
(ll) Upon application of the attorney general or the department of
licensing, in any proceeding that either of them are authorized by
statute to bring to enforce Title 18 or 19 RCW; the securities act of
Washington, chapter 21.20 RCW; the Washington commodities act, chapter
21.30 RCW; the land development act, chapter 58.19 RCW; or under
chapter 64.36 RCW relating to the regulation of timeshares;
(mm) Upon application of the director of financial institutions in
any proceeding that the director of financial institutions is
authorized to bring to enforce chapters 31.35, 31.40, and 31.45 RCW; or
(nn) In such other cases as may be provided for by law, or when, in
the discretion of the court, it may be necessary to secure ample
justice to the parties.
(2) The superior courts of this state shall appoint as receiver of
property located in this state a person who has been appointed by a
federal or state court located elsewhere as receiver with respect to
the property specifically or with respect to the owner's property
generally, upon the application of the person or of any party to that
foreign proceeding, and following the appointment shall give effect to
orders, judgments, and decrees of the foreign court affecting the
property in this state held by the receiver, unless the court
determines that to do so would be manifestly unjust or inequitable.
The venue of such a proceeding may be any county in which the person
resides or maintains any office, or any county in which any property
over which the receiver is to be appointed is located at the time the
proceeding is commenced.
(3) At least seven days' notice of any application for the
appointment of a receiver ((shall)) must be given to the owner of
property to be subject thereto and to all other parties in the action,
and to other parties in interest as the court may require. If any
execution by a judgment creditor under Title 6 RCW or any application
by a judgment creditor for the appointment of a receiver, with respect
to property over which the receiver's appointment is sought, is pending
in any other action at the time the application is made, then notice of
the application for the receiver's appointment also ((shall)) must be
given to the judgment creditor in the other action. The court may
shorten or expand the period for notice of an application for the
appointment of a receiver upon good cause shown.
(4) The order appointing a receiver in all cases ((shall)) must
reasonably describe the property over which the receiver is to take
charge, by category, individual items, or both if the receiver is to
take charge of less than all of the owner's property. If the order
appointing a receiver does not expressly limit the receiver's authority
to designated property or categories of property of the owner, the
receiver is a general receiver with the authority to take charge over
all of the owner's property, wherever located.
(5) The court may condition the appointment of a receiver upon the
giving of security by the person seeking the receiver's appointment, in
such amount as the court may specify, for the payment of costs and
damages incurred or suffered by any person should it later be
determined that the appointment of the receiver was wrongfully
obtained.
Sec. 28 RCW 36.94.110 and 1967 c 72 s 11 are each amended to read
as follows:
After adoption of the sewerage and/or water general plan, all
municipal corporations and private utilities within the plan area
((shall)) must abide by and adhere to the plan for the future
development of their systems. A municipal corporation or private
utility, including a wastewater company as defined in RCW 80.04.010,
may petition for amendments to the plan. Whenever the governing
authority of any county or counties or any municipal corporation deems
it to be for the public interest to amend the sewerage and/or water
general plan for such county or counties, notice shall be filed with
the board or boards of county commissioners. Upon such notice, the
board or boards ((shall)) must initiate consideration of any amendment
requested relating to the plan and proceed as provided in this chapter
for the adoption of an original plan.
NEW SECTION. Sec. 29 The commission is authorized to adopt rules
as required by this act before July 1, 2012, to ensure that this act is
implemented on its effective date.
NEW SECTION. Sec. 30 Nothing in this act supersedes federal,
state, or local government requirements to obtain a wastewater
discharge permit or a large on-site sewage system operating permit or
other permits or licenses required by law in the state of Washington.
NEW SECTION. Sec. 31 If any provision of this act or its
application to any person or circumstance is held invalid, the
remainder of the act or the application of the provision to other
persons or circumstances is not affected.
NEW SECTION. Sec. 32 Except for section 29 of this act, this act
takes effect July 1, 2012.