HOUSE BILL REPORT

                 ESSB 5110

             As Reported By House Committee On:

                      Local Government

Title:  An act relating to water and sewer districts.

Brief Description:  Changing provisions relating to sewer and water districts.

Sponsors:  Senate Committee on Government Operations (originally sponsored by Senators Haugen, Drew and Winsley).

Brief History:

  Reported by House Committee on:

Local Government, March 25, 1993, DP.

HOUSE COMMITTEE ON LOCAL GOVERNMENT

Majority Report:  Do pass.  Signed by 11 members:  Representatives H. Myers, Chair; Bray, Vice Chair; Edmondson, Ranking Minority Member; Reams, Assistant Ranking Minority Member; Dunshee; R. Fisher; Horn; Rayburn; Romero; Van Luven; and Zellinsky.

Staff:  Bill Lynch (786-7092).

Background:  When considering competitive bids for contracts for work and material, water districts and sewer districts may reject bids that are "unsatisfactory."  It is not clear that this standard would include consideration of the past performance record of a contractor or changed circumstances since the advertisement for bids.

Water districts and sewer districts do not have authority to solicit voluntary contributions from their customers to assist indigent customers.  Public utility districts do have this authority.

Summary of Bill:  The language authorizing a water district or sewer district to reject bids is revised to provide that bids may only be rejected "for good cause."

Sewer and water districts may solicit voluntary contributions from customers to be paid with regular billing to assist indigent customers.  Money collected by the districts is transmitted to either community action agencies or charitable organizations within the service area.  The community action agencies and charitable organizations determine who is eligible for assistance and the amounts the recipients receive.  Agencies and organizations making distributions of moneys collected by water and sewer districts must make quarterly reports to the districts.

Fiscal Note:  Not requested.

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

Testimony For:  The bill clarifies language regarding the basis for rejecting competitive bids for contracts.  Some water districts and sewer districts want to assist indigent customers in the same way that PUD's provide assistance to these customers.

Testimony Against:  None.

Witnesses:  Joe Daniels, Washington Association of Water/ Wastewater Districts.