Water and Sewer Authority Collection Enhancement Amendment Act of 1999
Bill 13-484

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A BILL IN THE COUNCIL OF THE DISTRICT OF COLUMBIA

Councilmember Phil Mendelson introduced the following bill, which was referred to the Committees on Public Works and the Environment with comments from the Committees on Consumer and Regulatory Affairs and the Judiciary.

To amend title 47 of the District of Columbia Code and the Clean Hands Act to require the payment of water and sewer bills as a condition to receiving a master business license or other license or permit; to amend the District of Columbia Public Works Act of 1954 to strengthen the receivership provision when water and sewer fees are unpaid; and to otherwise create penalties for the nonpayment of water and sewer bills.

BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this act may be cited as the "Water and Sewer Authority Collection Enhancement Amendment Act of 1999".

Sec. 2. Title 47 of the District of Columbia Code is amended as follows:

(a) Section 47-2851.11(a)(2) is amended to read as follows:

"The person or business is delinquent in taxes, periodic report fees, or penalties owing to the District, is delinquent in service fees owed to the Water and Sewer Authority, or is not validly registered in accordance with District law. The Office of Tax and Revenue and the Water and Sewer Authority shall cooperate with the business license center to determine if such taxes, fees, penalties or service fees are owing.".

(b) Section 47-2861(1) is amended as follows:

(A) Paragraph (1) is amended by adding at the end the phrase ", or the District of Columbia Water and Sewer Authority."; and

(B) by adding a new paragraph "(5)" to read as follows:

"(5) 'Water and Sewer Authority service fees' means the fees or charges for water and sewer service billed by the District of Columbia Water and Sewer Authority.".

(c) Section 47-2862 is amended as follows:

(1) Paragraph (3) is amended by striking the word "or";

(2) Paragraph (4) is amended by striking the period at the end and inserting a semi-colon at the end in its place; and

(3) A new paragraph''(5)" is added to read as follows:

"(5) Past due fees and charges for water and sewer service billed by the District of Columbia Water and Sewer Authority.".

Sec. 3. Section 1804 of the District of Columbia Public Works Act of 1954, approved May 18, 1954 (68 Stat. 101; D.C. Code §43-1654 et seq.) is amended as follows:

(1) Subsection (a)(1) is amended to read as follows:

"(a)(l)(A) Upon nonpayment of a delinquent account by the owner, agent, lessor, or manager of a rental property that is billed directly by the District of Columbia Water and Sewer Authority ("Authority") for water and sewer services, the Authority or a tenant who resides in the affected rental property may petition the Court for the appointment of a receiver for the rental payments in the same manner as for appointment of a receiver under section 4 of the Promotion of Electric and Gas Utility Service Termination to Master-Metered Apartment Buildings Act of 1980, effective September 13, 1980 (D.C. Law 3-94; D.C. Code §43-543), except as may be otherwise be provided in this subparagraph (a).

"(B) The receiver may take any action deemed necessary or appropriate to collect all rental payments from the tenants of the rental property and shall establish an escrow account with such funds. The receiver shall pay the Authority from such escrow account for services provided on or after the date of the receiver's appointment. If the owner, agent, lessor, or manager also is indebted to an electric or gas company for utility services, the receiver may order the rents collected to be equitably apportioned between the Authority and the electric or gas company. In addition, the receiver may use the rental payments collected to reduce delinquent water and sewer charges owed to the Authority.

Upon order of the court, the receiver shall become trustee of any escrow accounts or other funds established by the tenants or otherwise into which rents or payments for use and occupancy have been made.

"(C) The owner, agent, lessor or manager shall be liable for such reasonable fees and costs determined by the Court to be due the receiver, which may be recovered from the rental payments under control of the receiver, provided that no such fees or costs shall be turned over until after payment of current water and sewer charges has been made.".

"(D) The receiver may make payments in reasonable amounts to the Authority to reduce delinquent water and sewer charges until all such delinquent charges have been paid, and the receiver shall operate and maintain the structure to the best extent possible with the rents remaining after such payment. The receiver shall have the authority to recommend to the court a payment plan, which shall be binding if ordered by the court, to pay off any remaining delinquencies in water and sewer charges. Any monies remaining after the payments pursuant to this subsection shall be turned over to the owner, agent, lessor, or manager unless otherwise ordered by the court.

(2) Subsection (b) is amended to read as follows:

"(b) Any receivership established by subsection (a) of this section shall be terminated by the Court upon a finding that the arrearage which was the subject of the original petition has been satisfied or that the apartment house has been sold and the new owner has made satisfactory arrangements to pay the arrearages and has assumed liability for prospective water and sanitary sewer services.'"

(3) Subsection (c) is amended by adding the term "Authority" after the term "Mayor".

Sec. 4 Any person who knowingly fails to pay water and sewer charges to the District of Columbia Water and Sewer Authority, or to make satisfactory arrangements for the payment thereof, for more than 12 months is guilty of a misdemeanor, and upon conviction thereof, shall be fined not more than $500, or imprisoned not more than 30 days, or both. Any person who knowingly fails to pay water and sewer charges to the District of Columbia Water and Sewer Authority, or to make satisfactory arrangements for the payment thereof, in an amount of more than $10,000 and for more than 2 years is guilty of a felony, and upon conviction thereof, shall be fined up to 20% of the amount owed, but not less than $5,000, or imprisoned not more than 2 years, or both.

Sec. 4. Fiscal impact statement.

The Council adopts the fiscal impact statement in the committee report as the fiscal impact statement required by section 602(c)(3) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 813; D.C. Code §1-233(c)(3)).

Sec. 5. This act shall take effect following approval by the Mayor (or in the event of veto by the Mayor, action by the Council to override the veto), approval by the Financial Responsibility and Management Assistance Authority as provided in section 203(a) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995, approved April 17, 1995 (109 Stat. 116; D.C. Code §47-392.3(a)), a 30-day period of Congressional review as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 813; D.C. Code §1-233(c)(1)), and publication in the District of Columbia Register.