SENATE BILL REPORT

HB 545

BYRepresentatives Ferguson, Haugen, Nutley and O'Brien

Correcting the double amendment to RCW 35.92.070.

House Committe on Local Government

Senate Committee on Governmental Operations

Senate Hearing Date(s):March 24, 1987

Majority Report:     Do pass.

     Signed by Senators Halsan, Chairman; Garrett, Vice Chairman; DeJarnatt, McCaslin, Talmadge, Zimmerman.

Senate Staff:Sam Thompson (786-7754); Walt Corneille (786-7452)

                March 24, 1987

AS REPORTED BY COMMITTEE ON GOVERNMENTAL OPERATIONS, MARCH 24, 1987

BACKGROUND:

The ability of cities and towns to provide for or make extensions to utility systems is restricted.  In certain circumstances voters must approve a ballot proposition on the matter before the city or town can proceed.  No other local government authorized to provide utility services (e.g., sewer districts or irrigation districts) is limited in a similar manner.

The statute requiring voter approval of city and town utility systems was inconsistently amended by two separate acts in 1985.

SUMMARY:

The double amendments are rectified in the statute requiring voter approval of city and town utility systems.

Voter approval of a utility expansion by a city or town is required if all of the following conditions are met:  (1) the project may produce the generation of electricity for sale in excess of the present or future needs of the city or town water system; (2) the city or town does not already own or operate an electrical utility system; (3) the work involves an ownership of greater than 25 percent in a new combined water and electrical facility; and (4) the combined facility has a capacity in excess of five megawatts.

Voter approval is also necessary when an extension expands previous capacity by more than 50 percent, and is financed by the issuance of general obligation bonds.

Fiscal Note:    none requested

Senate Committee - Testified:   Representative Roy Ferguson; Chuck Mize, City of Bellevue; Randy Scott, City of Seattle