HOUSE BILL REPORT

                      HB 2269

                              As Passed House

                             February 18, 1992

Title:  An act relating to interlocal cooperation agreements.

Brief Description:  Allowing nonprofit corporations incorporated by the state of Washington to join interlocal cooperation agreements.

Sponsor(s):  Representatives Haugen, Edmondson and Bray.

Brief History:

   Reported by House Committee on:

Local Government, January 24, 1992, DP;

Passed House, February 18, 1992, 96-0.

HOUSE COMMITTEE ON

LOCAL GOVERNMENT

Majority Report: Do pass.  Signed by 15 members:  Representatives Haugen, Chair; Cooper, Vice Chair; Ferguson, Ranking Minority Member; Mitchell, Assistant Ranking Minority Member; Bray; Edmondson; Franklin; Horn; Nealey; Nelson; Rayburn; Roland; Wood; Wynne; and Zellinsky.

Staff:  Steve Lundin (786-7127).

Background:  The Interlocal Cooperation Act permits any state agency or local government to enter into contracts with other public agencies to perform any governmental service, activity, or undertaking which each public agency is authorized by law to perform under an interlocal contract.  Under an interlocal contract, one entity performs a service for another entity.

The Interlocal Cooperation Act also permits any state agency or local government to enter into agreements with other public agencies for the joint performance of any power, privilege, or authority that each of the public agencies are authorized to perform.  An interlocal agreement must specify its duration, purpose, manner of financing the joint undertaking, method of terminating the agreement, and organization of a separate legal entity that is created to perform the joint power, privilege, or authority.  This new entity that is created may include a nonprofit corporation.

The term public agency is defined in the Interlocal Cooperation Act to include the following governmental entities: (1) local governments of this state; (2) agencies of this state; (3) federal agencies; (4) Indian tribes; and (5) political subdivisions of other states.

Summary of Bill:  The definition of the term "public agency" in the Interlocal Cooperation Act is amended to include nonprofit corporations incorporated by the state or an agency of the state.

This definition change would permit a local government or state agency to enter into agreements under the Interlocal Cooperation Act with a nonprofit corporation created by the state.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  Only a few, nonprofit corporations have been created by the state, one of which is the Export Assistance Center.  This will allow port districts to enter into agreements under the Interlocal Cooperation Act with the Export Assistance Center.

Testimony Against:  None.

Witnesses:  Dave Rogers, Washington Public Ports Association.