ANALYSIS OF HB 2717

House Agriculture & Ecology Committee                                        January 26, 1998

BACKGROUND:

The voters approved House Joint Resolution 4209 in the 1997 general election.  This joint resolution amended the Washington State Constitution to allow local governments engaged in the sale or distribution of storm water or sewer services, to provide low cost financing to assist owners of structures or equipment in acquiring and installing materials and equipment which will conserve or allow for more efficient use of the storm water or sewer services.  The low cost financing must be repaid and becomes a lien on the structure unless the assistance is considered to constitute  necessary support of the poor or infirm. 

Although the voters approved this constitutional amendment, implementing legislation is considered to be necessary before some local governments can provide this assistance.

SUMMARY:

Any city, code city, town, county, special purpose district, municipal corporation, or quasi-municipal corporation engaged in the sale or distribution of storm water or sewer services, may use public moneys or credit derived from operating revenues from the sale of storm water or sewer services to assist the owners of structures or equipment in acquiring and installing materials and equipment which will conserve or allow for more efficient use of the storm water or sewer services.  Unless the assistance is provided for the necessary support of the poor or infirm, a charge-back must be made for the assistance.  The charge-back is a lien against the structure or a security interest against the equipment which is benefitted.    The statutory authority for this assistance becomes effective on July 1, 1998.