SENATE BILL REPORT

                           SSB 5858

               AS PASSED SENATE, MARCH 12, 1993

Brief Description:  Forbidding requiring financial security devices for permits for local government units' construction projects.

SPONSORS: Senate Committee on Government Operations (originally sponsored by Senator Cantu)

SENATE COMMITTEE ON GOVERNMENT OPERATIONS

Majority Report:  That Substitute Senate Bill No. 5858 be substituted therefor, and the substitute bill do pass. 

     Signed by Senators Haugen, Chairman; Drew, Vice Chairman; Loveland, Oke, Owen, von Reichbauer, and Winsley.

Staff:  Rod McAulay (786‑7754)

Hearing Dates: March 2, 1993; March 3, 1993

HOUSE COMMITTEE ON LOCAL GOVERNMENT

BACKGROUND:

Counties, cities and towns, as a condition of issuing a building permit, may require the owner of the project to provide a surety bond or other financial security to assure that financial resources are available to complete the project. 

Such conditions have, on occasion, been unnecessarily imposed upon other units of local government which have a tax base providing sufficient assurance of financial responsibility.

SUMMARY:

Counties, code cities, non-code cities and towns may not require another unit of local government or state agency to secure the performance of a permit requirement with a surety bond or other financial security device as a condition of issuing a permit for a building construction project. 

Appropriation:  none

Revenue:  none

Fiscal Note:  none requested

TESTIMONY FOR:

Unnecessary costs to taxpayers will be reduced.

TESTIMONY AGAINST:  None

TESTIFIED:  Senator Cantu, prime sponsor

HOUSE AMENDMENT(S):

The reference to "board of county commissioners" is changed to "county legislative authority."