SENATE BILL REPORT

SHB 523

BYHouse Committee on Environmental Affairs (originally sponsored by Representatives Hine and Allen)

Providing for the financing of pollution control facilities.

House Committe on Environmental Affairs

Senate Committee on Parks & Ecology

Senate Hearing Date(s):March 24, 1987

Majority Report:  Do pass as amended.

      Signed by Senators Kreidler, Chairman; Bluechel, Kiskaddon.

Senate Staff:Henry Yates (786-7708)

                  March 24, 1987

AS REPORTED BY COMMITTEE ON PARKS & ECOLOGY, MARCH 24, 1987

BACKGROUND:

Last session SSB 4717 passed allowing local governments to "privatize" the construction and operation of sewage treatment facilities.  Through specific procedures, local governments are allowed to enter into contracts with private entities and use grants or loans to construct the facilities built by those entities.  The grants or loans must be used either for public ownership interest or to defray payments made by the public body to the private entity.

Grant and loan monies are available from the Centennial Clean Water Act, passed last session.  It provides $40-$45 million for local water quality projects.  Monies may also be communities to effectively use privatization.

Even though the privatization law allowed grants or loans for privatized projects, current Referendum 39 and the Centennial Clean Water Act may prohibit grants or loans for obtained from Referendum 39, a 1980 water quality program.

An Attorney General's Opinion last year indicated that the Department of Ecology was not allowed to provide grant money for privatized projects.  Also, several "housekeeping" changes in the statute were noted as being necessary in order to allow these projects.

SUMMARY:

Forms provided by the State Treasurer to authenticate and certify that services have been rendered or the materials have been furnished when state funds are disbursed are to be applicable in the case of loans or grants.  Forms for loan or grant fund disbursements are to provide authentication and certification that the loans or grants are authorized by law.

Referendum 39 funds may be used for funding privatized wastewater projects.  Payments of Referendum 39 or Centennial Clean Water Act funds may be made either periodically or in a lump sum and must be equivalent in value to a grant or a loan which would otherwise be made.  The definition of waste disposal and management facilities is changed to allow for privatized projects to use grant monies and provide consistency with other statutes.  Monies in the Centennial Clean Water Act are to be used for assisting public bodies to obtain ownership interest in privatized wastewater facilities.

First Class cities (20,000 or more) are to be excluded from statutory bidding requirements when entering agreements under the Water Quality Joint Development Act.  Counties are excluded from specific bidding requirements when entering agreements under the authority of the Joint Development Act.

Fiscal Note:      none requested

Effective Date:The bill contains an emergency clause and takes effect immediately.

SUMMARY OF PROPOSED SENATE AMENDMENT:

Public bodies are not allowed to advance grant or loan funds to private service providers until services have been rendered or materials furnished.

Senate Committee - Testified: No one