Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Local Government & Housing Committee

HB 1728

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Summary of Bill

Authorizes the board of a joint operating agency and the commission of a public utility district to adopt a policy for the payment of claims or obligations by either check or warrant.

Background:

A public utility district (PUD) is a type of special purpose district authorized for the purpose of generating and distributing electricity, providing water and sewer services, and providing telecommunications services. A PUD may operate on a countywide basis or may encompass a smaller jurisdiction. However, most PUDs have jurisdictional boundaries that are coextensive with a county and function as a regional governing body with respect to providing their statutorily authorized services to the public. There are currently 28 operating PUDs in this state, many of which provide a mix of services: 23 provide electrical services; 19 provide water and/or wastewater services; and 13 provide wholesale broadband telecommunications services. Public utility districts are governed by a board of either three or five elected commissioners.

Joint operating agencies (JOAs) are a type of municipal corporation jointly formed by cities and public utility districts in order to develop electricity generation projects. JOAs have broad authority to engage in projects involving the generation, production, transmission, purchase, or sale of electric energy.

Summary of Bill:

The board of a JOA and the commission of a PUD are each authorized to adopt a policy for the payment of claims or obligations by either check or warrant. Checks may only be used if the pertinent fund is solvent, otherwise the payment must be by warrant.