[atlas:bill]

AN ACT Relating to installment payments for connection charges for storm water and sewer services; amending RCW 35.67.360 and 35.92.025; adding a new section to chapter 43.63A RCW; and making an appropriation.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1. RCW 35.67.360 and 1998 c 31 s 2 are each amended to read as follows:

Any city, code city, town, county, special purpose district, municipal corporation, or quasi-municipal corporation that is engaged in the sale or distribution of storm water services or sewer services may use public moneys or credit derived from operating revenues from the sale of storm water services or sewer services to assist the owners of structures or equipment in financing the acquisition and installation of materials and equipment, including any connection charges, for compensation or otherwise, for the conservation or more efficient use of storm water services or sewer services in such structures or equipment. Except for the necessary support of the poor and infirm, an appropriate charge-back shall be made for the extension of public moneys or credit. The charge-back shall be a lien against the structure benefited or a security interest in the equipment benefited.

Sec. 2. RCW 35.92.025 and 1985 c 445 s 6 are each amended to read as follows:

(1) Cities and towns are authorized to charge property owners seeking to connect to the water system or ((~~sewerage~~)) sewer system of the city or town as a condition to granting the right to so connect, in addition to the cost of such connection, such reasonable connection charge as the legislative body of the city or town shall determine proper in order that such property owners shall bear their equitable share of the cost of such system. The equitable share may include interest charges applied from the date of construction of the water system or sewer system until the connection, or for a period not to exceed ten years, at a rate commensurate with the rate of interest applicable to the city or town at the time of construction or major rehabilitation of the water system or sewer system, or at the time of installation of the water or sewer lines to which the property owner is seeking to connect but not to exceed ten percent per year: PROVIDED, That the aggregate amount of interest shall not exceed the equitable share of the cost of the system allocated to such property owners. Connection charges collected shall be considered revenue of such system.

(2) Cities and towns may provide a mechanism for property owners to pay the connection charge authorized in subsection (1) of this section in installments over a specified period of time as authorized in RCW 35.67.360.

NEW SECTION. Sec. 3. A new section is added to chapter 43.63A RCW to read as follows:

(1) Subject to appropriation, the department shall distribute grants to allow local governments, special districts, and other municipal corporations to finance connection charges under RCW 35.67.360 and 35.92.025.

(2) A local government, special district, or other municipal corporation that receives funds under this section, shall establish a local revolving fund for the repayment of loans to individuals to finance connection charges under RCW 35.67.360 and 35.92.025.

(3) The department shall develop criteria for the award of funds under this section.

NEW SECTION. Sec. 4. (1) The sum of five hundred thousand dollars, or as much thereof as may be necessary, is appropriated for the fiscal year ending June 30, 2000, from the general fund to the department of community, trade, and economic development for the purposes of section 3 of this act.

(2) The sum of five hundred thousand dollars, or as much thereof as may be necessary, is appropriated for the fiscal year ending June 30, 2001, from the general fund to the department of community, trade, and economic development for the purposes of section 3 of this act.