HOUSE OF REPRESENTATIVES

                      Olympia, Washington

Bill Analysis      Bill No. SSB 5401

                                           (See SHB 1415)

Compensation for PUD Commissioners                   Public Hrg: 3/25/97  

Brief Title

Comm. Govt Op. (Sen. Sellar/Snyder/Haugen)      Staff Contact: S. Lundin

Sponsor                                    Comm. on Govt. Admin.

                                           Phone: 786-7127

Background:

Public utility districts (PUDs) are municipal corporations authorized to generate and distribute electrical energy, provide potable water, and provide sewer service.

PUD=s are governed by an elected board of commissioners composed of either three or five members.  The commissioners receive per diem compensation at a rate of $50 for each day or major portion thereof devoted to business of the PUD or for attending meetings, but not to exceed $7,000 in any year.

In addition, PUD commissioners receive salaries as follows:

oEach commissioner of a PUD with gross electrical revenues of over $15 million in the preceding fiscal year ending on June 30 receives a salary of $500 per month;

oEach commissioner of a PUD with gross electrical revenues of from $2 million to $15 million in the preceding fiscal year ending on June 30 receives a salary of $350 per month; and

oThe commissioners of any other PUD serve without salary, but the board of commissioners of a PUD may provide for a salary of $200 per month for each commissioner.

The state constitution prohibits elected officials who set their own salaries from increasing their salaries during their current terms of office.

                                                     Continued

SSB 5401- Page 2

SUMMARY:  A variety of changes are made to salaries for public utility district (PUD) commissioners.

The basis upon which PUDs are classified, to determine monthly salaries for commissioners, is altered from using the amount of their gross receipts from electrical utilities to using the amount of all their total gross revenues from any source.

PUD commissioner salaries are increased and PUDs are given the authority to increase these salaries to an even higher specified amount by action of the board of commissioners, as follows:

oThe salary of a commissioner of a PUD that received gross revenue of more than $15 million in the previous fiscal year ending June 30, is increased from $500 to $1,000 per month.  The board of commissioners of such a PUD may pass a resolution increasing this salary to $1,300 per month.

oThe salary of a commissioner of a PUD that received gross revenue of from $2 million to $15 million in the previous fiscal year ending June 30, is increased from $350 to $700 per month.  The board of commissioners of such a PUD may pass a resolution increasing this salary to $900  per month.

oThe amount of salary that the board of commissioners of any other PUD may by resolution provide for its members is increased from $200 to $400 per month.

FISCAL NOTE:  Not requested.

EFFECTIVE DATE:  Ninety days after adjournment to session in which bill is passed.