FINAL BILL REPORT

HB 545

                                  C 145 L 87

BYRepresentatives Ferguson, Haugen, Nutley and O'Brien

Correcting the double amendment to RCW 35.92.070.

House Committe on Local Government

Senate Committee on Governmental Operations

SYNOPSIS AS ENACTED

BACKGROUND:

The ability of cities and towns to provide or make betterments to utility systems is restricted so that in certain circumstances voters must approve a ballot proposition on the matter before the city or town can proceed.  No other local government authorized to provide utility services, e.g., sewer districts or irrigation districts, is limited in a similar manner.

The statute so restricting city and town utility authority was inconsistently amended by two separate acts in 1985.

SUMMARY:

The double amendments are corrected on the law relating to voter approval of city utility system betterments.

Voter approval of a utility expansion by a city or town would be required if the project were characterized by each of the following: (1) a water system expansion also included the generation of electricity for sale in excess of the present or future needs related to the water system; (2) the city or town did not already own or operate an electrical utility system; (3) the work involved an ownership of greater than 25 percent of the combined water and electrical system; and (4) the electrical system has a capacity in excess of five megawatts.

Voter approval would be necessary if the extensions expanded previous capacity by more than 50 percent or if general obligation bonds were issued.

VOTES ON FINAL PASSAGE:

      House 96   0

      Senate    48     0

EFFECTIVE:July 26, 1987