HOUSE BILL REPORT

                  HB 1310

                      As Passed House:

                        March 5, 1999

Title:  An act relating to the authority of a public utility district to furnish water to persons outside of the district and the county where the district is located, and to establish local utility districts for water or sewer facilities outside of a district and the county where it is located.

Brief Description:  Changing the authority of public utility districts.

Sponsors:  Representatives Scott, Mulliken, Morris, Schoesler, Ericksen and Linville.

Brief History:

  Committee Activity:

Local Government:  2/15/99, 2/22/99 [DP].

Floor Activity:

Passed House:  3/5/99, 92-3.

                 Brief Summary of Bill

$Authorizes public utility districts to provide water and sewer service to an area partly or entirely outside the district or county where the district is located.

HOUSE COMMITTEE ON LOCAL GOVERNMENT

Majority Report:  Do pass.  Signed by 8 members:  Representatives Mulliken, Republican Co-Chair; Scott, Democratic Co-Chair; Doumit, Democratic Vice Chair; Mielke, Republican Vice Chair; Edwards; Ericksen; Fisher and Fortunato.

Staff:  Scott MacColl (786-7106).

Background:

Public utility districts (PUDs) are authorized to supply water to people within the county where the district is located, within or outside its district limits, and to sell, regulate, and control the use, distribution and price of such services.  The provision of water service outside the boundary of the public utility district is subject to review by the boundary review board.

PUDs may establish local assessment districts (known as local utility districts) to distribute water for domestic use, irrigation, and electric energy and for maintenance, extensions and improvements.  PUDs may levy and collect special assessments and issue local improvement bonds to pay for building, operating and maintaining water systems within the local improvement district.

A district may operate a sewage system through the creation of a local utility district, if the voters of the district approve by majority vote a referendum proposition authorizing a district to do so.

Summary of Bill:

Public utility districts are authorized to provide water for public and private purposes outside the limits of the district or county.

Public utility districts are also authorized to establish local utility districts to provide water for all public and private purposes partly or entirely outside the district or the county where the district is located.  Sewer facilities are authorized to provide services in the local utility district, subject to the statutory election authorization process.

Appropriation:  None.

Fiscal Note:  Not requested.

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

Testimony For: This bill clarifies a PUD's authority to serve outside the county boundaries.  Skagit PUD would serve residents of Lake Samish who requested the service and already has verbal approval from the Whatcom PUD to serve inside its service area. The service areas would be financed through a limited utility district for a proposed area in south Whatcom County.

Testimony Against:  None.

Testified:  Kristen Harte-Sawin, Washington Public Utility Districts Association; and Ken Kukulk, Public Utility District #1 of Skagit County.