FINAL BILL REPORT

                   SB 5650

                          C 426 L 97

                      Synopsis as Enacted

Brief Description:  Allowing cities to assume jurisdiction over water or sewer districts.

Sponsors:  Senator McDonald.

Senate Committee on Government Operations

House Committee on Government Administration

Background:  When all of the territory of a water or sewer district is included in a city's corporate boundaries, the city may assume jurisdiction over the district.  If 60 percent of a water or sewer district is included within a city, the city may assume full control over the entire district, as long as it is not included within another city.  The city may also choose to assume control over the portion of the district contained in the city, and make provision to serve any portion of the district outside of the corporate limits of the city.  The district may then vote that the city assume jurisdiction over the entire district.  This latter method may also be used when less than 60 percent of a water or sewer district is included within the corporate boundaries of a city.

Under any of these circumstances, the city or district, or both, may initiate dissolution proceedings for the dissolution of the district.

Summary:  By resolution, the board of commissioners of a water-sewer district with fewer than 120 customers when this act becomes effective may determine that it is in the district's best interest for a city to assume jurisdiction of the district.  None of the territory or assessed valuation of the district need be included within the city's corporate boundaries.  The city must have a population greater than 100,000 on the effective date of this act.

If the city legislative body agrees to assume jurisdiction, the district and the city enter into a contract to divide up assets and liabilities.  The assumption must occur by December 31, 1998.

Assessments for local improvements in a local improvement district may be pledged and applied to the payment of public loans.  This authority is supplemental to any other authority of municipalities to levy, pledge, and apply special assessments.

Votes on Final Passage:

Senate 48 0

House     98 0 (House amended)

Senate        (Senate refused to concur)

House         (House refused to recede)

Conference Committee

House     97 0

Senate    45 0

Effective:  July 27, 1997