HOUSE BILL REPORT

HB 1857

BYRepresentatives Rasmussen, Miller, Nelson, Hankins and Fraser

Regulating public water systems.

House Committe on Energy & Utilities

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (12)

      Signed by Representatives Nelson, Chair; Todd, Vice Chair; Hankins, Ranking Republican Member; Brooks, Cooper, Gallagher, Jacobsen, Jesernig, May, R. Meyers, H. Myers and S. Wilson.

House Staff:Harry Reinert (786-7110)

AS REPORTED BY THE COMMITTEE ON ENERGY & UTILITIES

FEBRUARY 28, 1989

BACKGROUND:

The State Board of Health, among many duties, has responsibility for regulating domestic water supply.  The Board is directed to adopt standards and procedures for the design, construction, and operation of water supply systems for domestic use.

The Utilities and Transportation Commission has regulatory authority over any person or entity operating a water system for hire.  Water systems include those systems supplying water for power, irrigation, reclamation, manufacturing, municipal, or domestic purposes.  The Commission's authority does not extend to any system serving fewer than 100 customers if the annual gross revenue per customer does not exceed a specified level that may be adjusted by the Commission to account for inflation.

The Commission may initiate a complaint on its own motion or on motion of any other person alleging that a regulated utility is violating the law or a rule of the Commission.  The complaint must be served on the utility and a time set for a hearing on the complaint.  If the Commission determines that, for water utilities, the purity, volume or pressure of water does not meet the appropriate standards, the Commission may order the utility to correct the problem.  The Commission may also order a utility to correct any rules, regulations, measurements, practices, acts, or services which it determines are inadequate.

Any utility subject to regulation by the Commission may appeal a commission order.  The court may stay the Commission's order if the utility shows that great or irreparable damage will result if the order is not stayed pending judicial review.

SUMMARY:

SUBSTITUTE BILL:  The State Board of Health regulation over domestic water service is modified.  The Board shall adopt rules to assure safe and reliable drinking water.  The rules should include standards concerning the design and construction of water systems, water quality standards, reporting requirements, planning and emergency response requirements, and standards for the management of existing but inadequate water systems.

The Commission must either audit a water company or issue a complaint against a water company subject to an administrative order from the Department of Social and Health Services finding the company in violation of the Board of Health standards.

If the Commission finds the quality of water supplied by a water company is inadequate it shall order corrective measures.  Failure of a company to comply with Board of Health regulations is prima facie evidence that the water supply is insufficient.  In ordering improvements, the Commission must consult with the Department of Social and Health Services.  If a company fails to comply with the Commission's order, it may request the Department to place the company in receivership.

The Commission may enter into an agreement with a county to have the county exercise the Commission's regulatory authority over water companies located in the county.

A water company which appeals a Commission order must be in compliance with the Board of Health water quality standards in order to obtain a stay of the Commission's order during judicial review.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The substitute removes a provision which would have given the Commission jurisdiction over small water companies which are out of compliance with water quality standards.  The substitute also requires a water company to be in compliance with water quality standards in order to obtain a stay of a Commission order during judicial review.

Fiscal Note:      Requested February 24, 1989.

House Committee ‑ Testified For:    Eric Slagle, Department of Social & Health Services; Steve McLellan and Tony Cook, Utilities & Transportation Commission.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    There is a confusion of authority between the Department of Social & Health Services and the Utilities & Transportation Commission over the regulation of water companies.  This bill will clarify the authority of each and provide the tools to assure safe and adequate water supplies.

House Committee - Testimony Against:      None Presented.