BILL ANALYSIS

HB 2116

TITLE OF THE BILL:  Relating to public utility district disposition of property.

WHAT THIS BILL DOES: Authorizes a public utility district to transfer equipment or materials to specified entities without voter approval.

SPONSORS:  Representatives  Scott, Mielke, Mulliken, Edwards, Fortunato, Cooper and Reardon

HEARING DATE: Thursday, February 25, 1999

FISCAL NOTE:  Not requested.

ANALYSIS PREPARED BY:  Scott MacColl (786-7106)

BACKGROUND:

Public utility districts (PUDs) may sell and convey, lease, or otherwise dispose of all or any part of its works, plants, systems, utilities and properties, after proceedings and supermajority voter approval by the voters of the district.  PUDs may dispose of property outside its boundaries to another PUD, city or town without voter approval.

PUDs may dispose of any property within or outside its boundaries that is obsolete, unserviceable, inadequate, obsolete, worn out or unfit to be used in the operations of the system and which is no longer necessary and transfer it to any person or public body without voter approval.

SUMMARY:

Public utility districts are authorized to sell, convey, lease or otherwise dispose of items of equipment or materials from the district=s stores to any other districts without voter approval or a resolution of a district=s board.  This authority is granted only if the items or materials cannot be obtained on a timely basis from any other source and if the district receives fair market value for the equipment or materials.

Entities to which the PUD may sell, convey, lease or otherwise dispose of property include any cooperative, mutual, consumer owned or investor owned utility; any federal, state, or local government agency; any contractor employed by the district or any other district, utility, or agency; or any customer of the district or of any other district or utility.