BILL REQ. #:  S-0240.1 

Read first time 01/14/2003.   Referred to Committee on Land Use & Planning.

     AN ACT Relating to assumptions of water-sewer districts by cities and towns; adding a new section to chapter 36.93 RCW; and adding new sections to chapter 35.13A RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   A new section is added to chapter 36.93 RCW to read as follows:
     For a proposal by a city to assume less than all of the area of a water-sewer district under chapter 35.13A RCW:
     (1) In addition to the factors of RCW 36.93.170, the board shall consider the following factors and the effect of the proposal on the following factors:
     (a) Rates and charges for the city and district systems;
     (b) Operation and maintenance of the city and district systems;
     (c) Staffing levels and employees of the city and district;
     (d) Condition, age, and type of system facilities in the city and district;
     (e) Water supply rights and contracts and sewer service contracts of the city and district; and
     (f) Financing of capital improvements to the city and district systems.
     (2) In accordance with the first paragraph of RCW 35.13A.050, the board shall identify the relevant facilities and determine as part of its decision the economically useful life, sufficient available capacity, and reasonable rates for the facilities.
     (3) The board shall determine as part of its decision a division of assets and liabilities between the city and district.
     (4) The board shall hire a consultant or consultants to prepare a report on the factors, identifications, and determinations of subsections (1), (2), and (3) of this section. The consultants shall consider any information or reports prepared by the city and district regarding the proposal. The cost of the consultant's report shall be borne by the city.

NEW SECTION.  Sec. 2   A new section is added to chapter 35.13A RCW to read as follows:
     When a city assumes less than all of the territory of a water-sewer district under this chapter, the city shall install and maintain, at its cost and expense, a water consumption meter on every line providing water between the district and the city. Each meter shall be located at the boundary between the city and district or as close thereto as physically possible, or as agreed to by the city and district.

NEW SECTION.  Sec. 3   A new section is added to chapter 35.13A RCW to read as follows:
     If a city desires to impose a utility business and occupation tax on water delivered to or sewer service provided in territory assumed under this chapter, it shall pass an ordinance specifically imposing the tax on the delivery or service, even if it has passed a general ordinance imposing the tax. The ordinance shall be deemed to impose the tax for the first time in the assumed territory for purposes of RCW 35.21.706, and shall be subject to referendum in accordance with RCW 35.21.706. The ordinance shall be effective before the filing of a notice of intention in counties with a boundary review board, or before the passage of the ordinance assuming the territory in counties without a boundary review board.

NEW SECTION.  Sec. 4   If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.