HOUSE BILL REPORT
HB 2146
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. |
As Reported by House Committee On:
Local Government & Housing
Title: An act relating to contract requirements for water or sewer facilities.
Brief Description: Modifying contract requirements for water or sewer facilities.
Sponsors: Representatives Ericks, Johnson, Eddy and Liias.
Brief History:
Committee Activity:
Local Government & Housing: 2/18/09, 2/19/09 [DP].
Brief Summary of Bill |
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HOUSE COMMITTEE ON LOCAL GOVERNMENT & HOUSING |
Majority Report: Do pass. Signed by 8 members: Representatives Simpson, Chair; Nelson, Vice Chair; Angel, Ranking Minority Member; Miloscia, Springer, Upthegrove, White and Williams.
Minority Report: Do not pass. Signed by 3 members: Representatives Cox, Assistant Ranking Minority Member; Ericksen and Short.
Staff: Thamas Osborn (786-7129)
Background:
Cities, towns, and water-sewer districts are authorized to enter into contracts with developers and other property owners that create reimbursement procedures for the construction and/or funding of infrastructure improvements that exceed the scope or capacity necessary for a particular development or property. Such contracts may pertain to the construction or improvement of either street projects or water-sewer facilities.Typically, such contracts involve situations in which a new property development necessitates the construction of additional infrastructure, and the developer agrees to provide infrastructure improvements on a scale sufficient to service the current development project as well as future development that is likely to occur in the area. In return, the contract provides that the developer will receive pro rata reimbursement from other developers or property owners who later benefit from the excess capacity provided by the infrastructure improvements. Such reimbursement agreements are limited to a period of 15 years and are often referred to as "latecomer agreements."
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Summary of Bill:
The statutory time limit for infrastructure development reimbursement contracts, known as "latecomers agreements," is extended to 20 years.
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Appropriation: None.
Fiscal Note: Not requested.
Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.
Staff Summary of Public Testimony:
(In support) This is a good bill since it provides a tool for encouraging infrastructure development. Municipalities need the ability to enter into latecomer's agreements and the extension of the reimbursement period to 20 years is desirable. This increases the incentive for municipalities to participate in the building of needed infrastructure.
(Opposed) None.
Persons Testifying: Eric Baker, Kitsap County.
Persons Signed In To Testify But Not Testifying: None.