HOUSE BILL REPORT

HB 2539

BYRepresentatives Wood, Jacobsen, Ferguson, Nealey and Haugen

Amending water and sewer district provisions.

House Committe on Local Government

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (12)

      Signed by Representatives Haugen, Chair; Cooper, Vice Chair; Ferguson, Ranking Republican Member; Horn, Kirby, Nealey, Nelson, Nutley, Phillips, Raiter, Rayburn and Zellinsky.

House Staff:Steve Lundin (786-7127)

AS REPORTED BY COMMITTEE ON LOCAL GOVERNMENT

FEBRUARY 1, 1990

BACKGROUND:

Sewer district and water district commissioners may receive compensation at a rate of up to $50 per day, not to exceed $4,800 per year.  In addition, the commissioner who is the secretary of the board may receive a reasonable amount for clerical services.  No provisions of law exist concerning the provision of insurance benefits for sewer district or water district commissioners.

Sewer districts and water districts are authorized to hire staff and provide staff with compensation as well as health care services, group insurance, and term life insurance.

Whenever a sewer district or water district leases its real property, the district is required to secure the lease by a performance bond with a penalty of an amount equal to the larger of "one-sixth of the term of the lease" or one year's rental.

SUMMARY:

SUBSTITUTE BILL:  A sewer district, or water district, with 5,000 or more customers providing health, group, or life insurance benefits to its employees may provide its commissioners with the same coverage.

The board of commissioners of a sewer district or water district can require a reasonable security deposit, in lieu of a performance bond, whenever district property is leased.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  Only a district with 5,000 or more customers may provide its commissioners with coverage that is provided to its employees, instead of any district providing coverage to its commissioners, whether or not the district has employees or provides coverage to its employees.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Bert Lysen and Joe Daniels, Washington State Association of Water/Wastewater Districts; and Jim Salatino, Washington State Association of Sewer Districts.

House Committee - Testified Against:      No one.

House Committee - Testimony For:    These are needed benefits.  Port and PUD commissioners may receive similar benefits.  Only the larger districts will take advantage of this provision.

House Committee - Testimony Against:      None.