Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Local Government Committee

SB 5122

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Description: Addressing insurance coverage for water-sewer district commissioners.

Sponsors: Senators Takko, Short, Honeyford and Hasegawa.

Brief Summary of Bill

  • Allows water-sewer districts, regardless of the number of customers the district has, to provide insurance coverage to its commissioners if it provides such coverage to employees.

Hearing Date: 3/26/19

Staff: Yvonne Walker (786-7841).

Background:

Water-sewer districts (districts), a type of special purpose district, were created to further public health and safety and to furnish water, sewerage, and drainage services.

Districts develop and operate systems of sewers and drainage and are authorized to create facilities, systems, and programs for the collection, interception, treatment, disposal, and control of pollution from wastewater. Districts may also fix rates and charge for services, enter into contracts, levy taxes, and issue bonds. Districts are governed by boards of elected commissioners consisting of three to seven members that are elected to six-year terms.

Insurance Coverage.

Upon approval of its board of commissioners, an individual district may enter into a contract to provide health care, life, and social security insurance coverage for the benefit of its employees. In addition, if deemed expedient, any two or more districts may jointly procure and pay for health care and life insurance for its employees.

A district with 5,000 or more customers that provides health, group, or life insurance to its employees may also provide its commissioners with the same insurance coverage. However, the amount paid for a commissioner cannot exceed the per person amount paid by the district for its employees.

Summary of Bill:

In all instances, a district that provides health, group, or life insurance to its employees may also provide the same coverage to its commissioners. The requirement that a district needs to have 5,000 or more customers is eliminated as a factor to providing insurance coverage to its commissioners.

Appropriation: None.

Fiscal Note: Not requested.

Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.