HOUSE BILL REPORT

                  HB 1641

             As Reported By House Committee On:

                  Government Administration

Title:  An act relating to conforming the authority for water system development charges with a city's authority.

Brief Description:  Conforming a water district's authority for development charges with a city's authority.

Sponsors:  Representatives Dunn, D. Sommers, Scott, Wolfe, D. Schmidt, Wensman and Reams.

Brief History:

Committee Activity:

Government Administration:  2/14/97, 2/25/97 [DP].

HOUSE COMMITTEE ON GOVERNMENT ADMINISTRATION

Majority Report:  Do pass.  Signed by 11 members:  Representatives D. Schmidt, Chairman; D. Sommers, Vice Chairman; Scott, Ranking Minority Member; Gardner, Assistant Ranking Minority Member; Doumit; Dunn; Dunshee; Reams; L. Thomas; Wensman and Wolfe.

Staff:  Michael Spiro (786-5793).

Background:  A water-sewer district may charge a property owner seeking to connect to the district=s water, sewer, or drainage system a reasonable connection charge.  The connection charge may include interest, which is to be applied from the date of construction of the system until the connection is made or for a period not to exceed 10 years, whichever is shorter.

A city or town may charge a property owner seeking to connect to its water or sewer system a reasonable connection charge.  The connection charge may include interest, which is to be applied from the date of construction of the system until the connection is made or for a period not to exceed 10 years.

Summary of Bill:  More flexibility is provided for a water-sewer district to calculate connection charge interest on property owners who seek to connect to the district=s water, sewer, or drainage system.  A water-sewer district no longer must choose between charging interest from the date of construction of the system until the connection is made or for a period not to exceed 10 years, whichever is shorter.  Instead, the water-sewer district now may charge interest from the date of construction of the system until the connection is made. 

Appropriation:  None.

Fiscal Note:  Not requested.

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

Testimony For:  There should be a level playing field so that all people are paying the same proportionate amount for connecting to a water or sewer system.  The 10-year limit is arbitrary and should be removed.  This bill would put water-sewer districts on the same footing as others who provide the same services. 

Testimony Against:  None.

Testified:   Steve Lindstrom, Sno-King Water District Coalition; and Joe Daniels, Washington Association of Sewer/Water Districts.