SENATE BILL REPORT

SJR 8210

BYSenators Barr, Talmadge, Hansen, Benitz and Williams

Modifying the Constitution to allow for entities engaged in water sale or distribution to undertake conservation.

Senate Committee on Agriculture

Senate Hearing Date(s):February 2, 1989; February 23, 1989

Majority Report:     Do pass.

     Signed by Senators Barr, Chairman; Anderson, Vice Chairman; Bailey, Gaspard, Hansen, Madsen, Newhouse.

Senate Staff:David Monthie (786-7198)

                March 14, 1989

AS PASSED SENATE, MARCH 13, 1989

BACKGROUND:

Article VIII, Section 7 of the State Constitution prohibits any county, city, town, or other municipal corporation from giving money or property, or loaning money or credit, to any private individual or organization.  In November 1979, the voters approved Amendment 70 to the Constitution permitting public entities, and any political subdivision of the state engaged in sale or distribution of energy, to assist in the financing of energy conservation measures.  The question has arisen as to whether public utilities that want to engage in the financing of water conservation and efficiency programs would be precluded from doing so by Section 7 without a similar constitutional amendment.

SUMMARY:

An amendment to add water conservation and efficiency measures to the provisions of Article VIII, Section 10, would be submitted for the approval of voters at the next general election.  Section 10 would permit any county, city, town, quasi-municipal corporation, municipal corporation, or political subdivision of the state engaged in the sale or distribution of water, as approved by the Legislature, to use public money or credit from operating revenues.  The money or credit would be used to finance the acquisition and installation of materials and equipment for conservation or more efficient use of water in structures or equipment.  Such loans or credit are to be charged back and become a lien against the structure or a security interest in the equipment.

Appropriation:  none

Revenue:   none

Fiscal Note:    available

Senate Committee - Testified:   Henry Yates, Seattle City Water (pro); John Kirner, Tacoma City Water (pro)