HB 2069, sponsored by Rep. Jeremie Dufault (R–Selah) repeals statutes that provide cities and towns with the authority to attach liens to properties for a tenant’s unpaid utility bills. Additionally, the bill prohibits municipal utility providers from being able to collect on unpaid or delinquent accounts from a property owner when the account is in a tenant’s name.

HB 2069 was heard during the 2019 regular session. It was reintroduced and retained in current status at the beginning of the 2020 regular session.

The result of this bill would be fewer options for cities in collecting on delinquent accounts. That will result in more unpaid bills driving up costs for all other ratepayers. Cities maintain that it is appropriate for landlords to be responsible when a tenant has a delinquent bill because they have tools, like withholding a deposit, to help hold the tenant accountable.

In early November, AWC conducted a survey to gather city data regarding usage of lien authority. Cities overwhelmingly report that using lien authority is the only sure way to collect payments, as often they cannot shut off water or sewer services. Cities use a variety of steps before relying upon a lien to collect on delinquent accounts, including letters in the mail, door hangers, late fees and penalties, phone calls, and collection agencies. However, cities report that liens are the most effective way to collect delinquent payments on vacated or foreclosed properties without transferring the burden to the subsequent property owner. The loss of city lien authority would result in over $6 million in lost city revenue.

The loss of city lien authority would result in over $6 million in lost city revenue.

Last year Rep. Dufault worked with AWC’s Government Relations staff to discuss possible additional amendments to mitigate cities’ concerns. However, we were unable to find a compromise that addressed everyone’s concerns. As a result, cities strongly opposed the bill as drafted. We still need you to reach out to your local legislators and express your concerns with HB 2069 and ask them not to support the bill until all of cities’ concerns have been addressed.

Dates to remember

The bill is scheduled for public hearing in the House Civil Rights & Judiciary Committee at 10 am on January 24.