HOUSE BILL REPORT

SSB 5599

BYSenate Committee on Human Services & Corrections (originally sponsored by Senators Owen, Wojahn and Kreidler)

Establishing receivership provisions for delinquent domestic water suppliers.

House Committe on Health Care

Majority Report:  Do pass.  (10)

      Signed by Representatives Braddock, Chair; Day, Vice Chair; Brooks, Bumgarner, Cantwell, Lewis, Lux, D. Sommers, Sprenkle and Vekich.

Minority Report:  Do not pass.  (1)

      Signed by Representative Bristow.

House Staff:Bill Hagens (786-7131)

AS REPORTED BY COMMITTEE ON HEALTH CARE APRIL 2, 1987

BACKGROUND:

Numerous health and safety standards exist to regulate domestic water suppliers.  However the Department of Social and Health Services has limited enforcement powers in situations where the water suppliers repeatedly violate regulations or refuse to correct ongoing violations.

SUMMARY:

The Department of Social and Health Services is allowed to petition the superior court for appointment of a receiver to assume operation of water systems in which the operator fails to correct a health and safety violation within 90 days after notice of the violation(s).  The appointed receiver has a duty to bring the water supply system into compliance with state and federal laws, and must conduct the ordinary business of the supply system, until the court dismisses the receiver.  A water supply system customer may bring an action against the department or the supply system to initiate the receivership process.

Water purveyors with ten or less connections are exempt from the receivership provisions.  The courts will review proposed rate revisions that result from costs of improvements made under the receivership and utilities and transportation regulations must be followed where applicable.

Fiscal Note:      Attached.

House Committee ‑ Testified For:    Cindy Manning, aide to Senator Owen; Eric Slagle, Department of Social and Health Services; Linda Craig, Highland Estates Homeowner's Association and Joe Daniels, Professional and Technical Engineers.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    There is currently little authority to force delinquent domestic water suppliers to come into compliance with regulations.  When there is a delinquent domestic water supplier homeowners have difficulty selling their homes.

House Committee - Testimony Against:      None Presented.