1592-S AAS 4/17/97

1592-S AAS 4/17/97

SHB 1592 - S COMM AMD

By Committee on Ways & Means

ADOPTED 4/17/97

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. The legislature finds that encouraging water districts to better manage state water resources and encouraging satellite management of failing water systems is in the best interests of the people of Washington state. Continual updates of water quantity and quality, as mandated by federal and state agencies, have revealed that degradation of water quality exists in small water systems throughout the state and that satellite management and consolidation of small systems under a centralized management structure can best utilize existing resources available to assure safe, clean drinking water. The legislature further finds that costs involved in upgrading these small systems can be extremely burdensome to water customers and public water purveyors. With diminishing resources available to these small systems, the legislature finds that granting business and occupation and excise tax relief, under certain conditions, will assist smaller water districts to meet state and federal standards.

NEW SECTION. Sec. 2. A new section is added to chapter 82.04 RCW to read as follows:

(1) This chapter does not apply to amounts received for water services supplied by a water-sewer district established under Title 57 RCW that has been certified by the department of health as:

(a) Having less than one thousand five hundred connections; and

(b) Charging residential water rates that exceed one hundred twenty-five percent of the state-wide average water rate.

(2) This chapter does not apply to amounts received for water services supplied by a water system that has been certified by the department of health as:

(a) Being operated or owned by a qualified satellite management agency under RCW 70.116.134;

(b) Having less than two hundred connections; and

(3) To receive an exemption under this section, the water system shall supply to the department of health proof that an amount equal to at least 90 percent of the value of the exemption shall be expended to repair, equip, maintain, and upgrade the water system.

(4) The department of health shall certify to the department of revenue the eligibility of water districts and water systems under this section. In order to determine eligibility, the department of health may use rate information provided in surveys and reports produced by the association of Washington cities, an association of elected officials, or other municipal association to estimate a state-wide average residential water rate. The department of health shall update the estimated state-wide average residential water rate by July 1 of each year that this section remains in effect.

(5) This section expires July 1, 2003.

NEW SECTION. Sec. 3. A new section is added to chapter 82.16 RCW to read as follows: