FINAL BILL REPORT

                  SSB 5781

                           FULL VETO

                     As Passed Legislature

Brief Description:  Requiring voter approval of city assumption of water or sewer systems.

Sponsors:  Senate Committee on Government Operations (originally sponsored by Senators McCaslin, Haugen, Morton, Rasmussen, Anderson, Swecker and Schow).

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. 

Summary:  A city may only assume the operations of a water-sewer district outside of the city if (a) the area where such operations are assumed is contiguous to the city, and (b) the voters of the district who reside in that area approve a ballot proposition authorizing the assumption.  Any rates that the city charges outside of its boundaries must be reasonable to all parties.

If a city assumes the operations of the portion of a water-sewer district that is located within the boundaries of the city, voters of the district who reside outside of the city may approve a ballot proposition requiring the city to assume responsibility to operate and maintain the district=s facilities in that area.  The area outside the city must be contiguous to the city, and not located in another city.

Votes on Final Passage:

Senate 43 0

House     98 0 (House amended)

Senate        (Senate refused to concur)

House         (House refused to recede)

Senate        (Senate refused to concur)

House     97 0 (House receded)