SENATE BILL REPORT

SB 6495

As Reported By Senate Committee On:

State & Local Government, February 4, 2002

Title:  An act relating to the joint funding of municipal projects by public agencies.

Brief Description:  Authorizing public agencies to jointly fund certain municipal projects.

Sponsors:  Senators Kline, Thibaudeau, Long and McCaslin.

Brief History:

Committee Activity:  State & Local Government:  1/31/02, 2/4/02 [DPS].

SENATE COMMITTEE ON STATE & LOCAL GOVERNMENT

Majority Report:  That Substitute Senate Bill No. 6495 be substituted therefor, and the substitute bill do pass.

Signed by Senators Gardner, Chair; Hale, Keiser, Kline, McCaslin and Swecker.

Staff:  Eugene Green (786‑7405)

Background:  The purpose of the Interlocal Cooperation Act is to permit local governmental units to make the most efficient use of their powers by enabling them to cooperate with other localities on a basis of mutual advantage.  Any two or more public agencies ( as defined) may enter into joint agreements with one another for joint or cooperative action.  Any power or powers, privileges, or authority exercised or capable of exercise by a public agency of this state may be exercised and enjoyed jointly with any other public agency of this state having the power or powers, privilege, or authority, and jointly with any public agency of any other state or the United States.

Summary of Substitute Bill:  Any one or more public agencies may cooperate with any one or more other public agencies for the performance of a government service, activity, or undertaking involving public infrastructure of local and regional significance that the contracting party which is to perform the service, activity or undertaking is authorized by law to perform, as long as the contract is in writing and approved by the governing body of each party.  The contract must contain a finding that any public agency contributing funds pursuant to the public infrastructure contract, but not authorized to perform the undertaking itself, is reasonably likely to recover its investment through the collection of taxes resulting from the economic activity expected to occur from the public investment.

Substitute Bill Compared to Original Bill:  The original bill was not considered.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  This bill will be a helpful tool to induce private investment.  It heads us in the direction of community redevelopment financing.

Testimony Against:  None.

Testified:  Jay Reich, Preston Gates and Ellis, LLP (pro).