Read first time 01/14/2003.   Referred to Committee on Natural Resources, Energy & Water.

     AN ACT Relating to watershed management; amending RCW 39.34.020 and 35.21.210; adding new sections to chapter 39.34 RCW; adding a new section to chapter 36.01 RCW; adding a new section to chapter 36.94 RCW; adding a new section to chapter 36.89 RCW; adding a new section to chapter 35.67 RCW; adding a new section to chapter 57.08 RCW; adding a new section to chapter 54.16 RCW; adding a new section to chapter 87.03 RCW; adding a new section to chapter 53.08 RCW; adding a new section to chapter 85.38 RCW; adding a new section to chapter 86.09 RCW; adding a new section to chapter 86.15 RCW; and creating a new section.

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

NEW SECTION.  Sec. 1   The legislature finds that throughout Washington state there are many active efforts to protect, manage, and restore watersheds. The state's river systems provide a variety of benefits for society's many needs, so efforts to protect these watersheds should reflect the diversity of social, environmental, and economic factors that make the state unique.
     Yet, there is a conflict between the natural flow of river systems and the way watersheds are governed. From a hydrological standpoint, a watershed is a single, integrated system. But these systems usually flow through a number of cities, counties, and other municipalities as they move from their source to the sea. As a result, many are subject to the full range of management interests, including multiple government entities with jurisdiction over water. In many cases, the political boundaries of government do not align with the hydrological boundaries of watersheds and may actually hinder the implementation of coordinated, cooperative plans. Cooperative watershed management actions by local governments, special districts, and utilities can help maintain healthy watershed function and support the beneficial use of water by these entities and protect the quality of the resource that they use or affect. By participating in cooperative watershed management actions, local governments, special districts, and utilities are acting in the public interest and in a manner that is intended to sustain maximum beneficial use and high quality of water over time and to maintain the services that these entities provide.
     Therefore, it is the intent of this act to remove statutory barriers that may prevent local governments from working together in the creation and implementation of cooperative, coordinated watershed plans. In addition, it is the further intent of this act to provide additional authorities to assist in such implementation.

NEW SECTION.  Sec. 2   A new section is added to chapter 39.34 RCW to read as follows:
     (1) The legislative authority of a city or county and the governing body of any special purpose district enumerated in subsection (2) of this section may authorize up to ten percent of its water-related revenues to be expended in the implementation of watershed management plan projects or activities that are in addition to the county's, city's, or district's existing water-related services or activities. Such limitation on expenditures shall not apply to additional revenues for watershed plan implementation that are authorized by voter approval under section 5 of this act or to water-related revenues of a public utility district organized according to Title 54 RCW. Water-related revenues include rates, charges, and fees for the provision of services relating to water supply, treatment, distribution, and management generally, and those general revenues of the local government that are expended for water management purposes. A local government may not expend for this purpose any revenues that were authorized by voter approval for other specified purposes or that are specifically dedicated to the repayment of municipal bonds or other debt instruments.
     (2) The following special purpose districts may exercise the authority provided by this section:
     (a) Water districts, sewer districts, and water-sewer districts organized under Title 57 RCW;
     (b) Public utility districts organized under Title 54 RCW;
     (c) Irrigation, reclamation, conservation, and similar districts organized under Titles 87 and 89 RCW;
     (d) Port districts organized under Title 53 RCW;
     (e) Diking, drainage, and similar districts organized under Title 85 RCW;
     (f) Flood control and similar districts organized under Title 86 RCW;
     (g) Lake management districts organized under chapter 36.61 RCW;
     (h) Aquifer protection areas organized under chapter 36.36 RCW; and
     (i) Shellfish protection districts organized under chapter 90.72 RCW.
     (3) The authority for expenditure of local government revenues provided by this section shall be applicable broadly to the implementation of watershed management plans addressing water supply, water transmission, water quality treatment or protection, or any other water-related purposes. Such plans include but are not limited to plans developed under the following authorities:
     (a) Watershed plans developed under chapter 90.82 RCW;
     (b) Salmon recovery plans developed under chapter 77.85 RCW;
     (c) Watershed management elements of comprehensive land use plans developed under the growth management act, chapter 36.70A RCW;
     (d) Watershed management elements of shoreline master programs developed under the shoreline management act, chapter 90.58 RCW;
     (e) Nonpoint pollution action plans developed under the Puget Sound water quality management planning authorities of chapter 90.71 RCW and chapter 400-12 WAC;
     (f) Other comprehensive management plans addressing watershed health at a WRIA level or sub-WRIA basin drainage level;
     (g) Coordinated water system plans under chapter 70.116 RCW and similar regional plans for water supply; and
     (h) Any combination of the foregoing plans in an integrated watershed management plan.
     (4) The authority provided by this section to expend revenues for watershed management plan implementation shall be construed broadly to include, but not be limited to:
     (a) The coordination and oversight of plan implementation, including funding a watershed management partnership for this purpose;
     (b) Technical support, monitoring, and data collection and analysis;
     (c) The design, development, construction, and operation of projects included in the plan; and
     (d) Conducting activities and programs included as elements in the plan.

Sec. 3   RCW 39.34.020 and 1985 c 33 s 1 are each amended to read as follows:
     ((For the purposes of this chapter, the term)) Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
     (1) "Public agency" ((shall)) means any agency, political subdivision, or unit of local government of this state including, but not limited to, municipal corporations, quasi municipal corporations, special purpose districts, and local service districts; any agency of the state government; any agency of the United States; any Indian tribe recognized as such by the federal government; and any political subdivision of another state.
     ((The term)) (2) "State" ((shall)) means a state of the United States.
     (3) "Watershed management partnership" means an interlocal cooperation agreement formed under the authority of section 4 of this act.
     (4) "WRIA" has the definition in RCW 90.82.020.

NEW SECTION.  Sec. 4   A new section is added to chapter 39.34 RCW to read as follows:
     Any two or more public agencies may enter into agreements with one another to form a watershed management partnership for the purpose of implementing any portion or all elements of a watershed management plan, including the coordination and oversight of plan implementation. The plan may be any plan or plan element described in section 2(3) of this act. The watershed partnership agreement shall include the provisions required of all interlocal agreements under RCW 39.34.030(3). The agreement shall be filed pursuant to RCW 39.34.040 with the county auditor of each county lying within the geographical watershed area to be addressed by the partnership. The public agencies forming the partnership shall designate a treasurer for the deposit, accounting, and handling of the funds of the partnership. The treasurer shall be either a county treasurer or a city treasurer of a county or city participating in the agreement to form the partnership.

     *NEW SECTION.  Sec. 5   A new section is added to chapter 39.34 RCW to read as follows:
     The public agencies forming a watershed management partnership under the authority of section 4 of this act may develop and implement a plan for financing all or one or more elements of a watershed management plan. These public agencies may propose raising additional revenues for this purpose from one or more sources under the existing revenue authorities of those public agencies financing plan implementation. The agencies shall attempt as nearly as practicable to develop a proposal under which the total burden will be distributed equitably upon those persons within the watershed plan area who will be benefited by the project, program, or activity. The revenue proposal shall include provisions to ensure that persons or parcels within the watershed plan area will not be taxed or assessed by more than one public agency for a specific watershed management plan project, program, or activity. The revenue proposal shall be submitted at a special or general election on the same day in all jurisdictions in which one or more elements of the proposal are to be applicable, and shall not be implemented unless the proposal receives a majority vote of the votes cast within each city, county, and special purpose district participating in the proposal.
     *Sec. 5 was vetoed. See message at end of chapter.

NEW SECTION.  Sec. 6   A new section is added to chapter 39.34 RCW to read as follows:
     Where a watershed management partnership formed under the authority of section 4 of this act establishes a separate legal entity to conduct the cooperating undertaking of the partnership, such legal entity is authorized for the purpose of carrying out such undertaking to contract indebtedness and to issue and sell general obligation bonds pursuant to and in the manner provided for general county bonds in chapters 36.67 and 39.46 RCW and other applicable statutes, and to issue revenue bonds pursuant to and in the manner provided for revenue bonds in chapter 36.67 RCW and other applicable statutes. The joint board established by the partnership agreement shall perform the functions referenced in chapter 36.67 RCW to be performed by the county legislative authority in the case of county bonds.

NEW SECTION.  Sec. 7   A new section is added to chapter 39.34 RCW to read as follows:
     The amendments by chapter . . ., Laws of 2003 (this act) to the interlocal cooperation act authorities are intended to provide additional authority to public agencies for the purposes of implementing watershed management plans, and do not affect any agreements among public agencies existing on the effective date of this section.

NEW SECTION.  Sec. 8   A new section is added to chapter 36.01 RCW to read as follows:
     A county may, acting through the county legislative authority, participate in and expend revenue on cooperative watershed management actions, including watershed management partnerships under section 6 of this act and other intergovernmental agreements, for purposes of water supply, water quality, and water resource and habitat protection and management.

NEW SECTION.  Sec. 9   A new section is added to chapter 36.94 RCW to read as follows:
     In addition to the authority provided in RCW 36.94.020, a county may, as part of maintaining a system of sewerage and/or water, participate in and expend revenue on cooperative watershed management actions, including watershed management partnerships under section 6 of this act and other intergovernmental agreements, for purposes of water supply, water quality, and water resource and habitat protection and management.

NEW SECTION.  Sec. 10   A new section is added to chapter 36.89 RCW to read as follows:
     In addition to the authority provided in RCW 36.89.030, a county may, as part of maintaining a system of storm water control facilities, participate in and expend revenue on cooperative watershed management actions, including watershed management partnerships under section 6 of this act and other intergovernmental agreements, for purposes of water supply, water quality, and water resource and habitat protection and management.

Sec. 11   RCW 35.21.210 and 1965 c 7 s 35.21.210 are each amended to read as follows:
     Any city or town shall have power to provide for the sewerage, drainage, and water supply thereof, and to establish, construct, and maintain a system or systems of sewers and drains and a system or systems of water supply, within or without the corporate limits of such city or town, and to control, regulate, and manage the same. In addition, any city or town may, as part of maintaining a system of sewers and drains or a system of water supply, or independently of such a system or systems, participate in and expend revenue on cooperative watershed management actions, including watershed management partnerships under section 6 of this act and other intergovernmental agreements, for purposes of water supply, water quality, and water resource and habitat protection and management.

NEW SECTION.  Sec. 12   A new section is added to chapter 35.67 RCW to read as follows:
     In addition to the authority provided in RCW 35.67.020, a city may, as part of maintaining a system sewerage, participate in and expend revenue on cooperative watershed management actions, including watershed management partnerships under section 6 of this act and other intergovernmental agreements, for purposes of water supply, water quality, and water resource and habitat protection and management.

NEW SECTION.  Sec. 13   A new section is added to chapter 57.08 RCW to read as follows:
     In addition to the authority provided in RCW 57.08.005, a water district, sewer district, or water-sewer district may participate in and expend revenue on cooperative watershed management actions, including watershed management partnerships under section 6 of this act and other intergovernmental agreements, for purposes of water supply, water quality, and water resource and habitat protection and management.

NEW SECTION.  Sec. 14   A new section is added to chapter 54.16 RCW to read as follows:
     In addition to the authority provided in RCW 54.16.030 relating to water supply, a public utility district may participate in and expend revenue on cooperative watershed management actions, including watershed management partnerships under section 6 of this act and other intergovernmental agreements, for purposes of water supply, water quality, and water resource and habitat protection and management.

NEW SECTION.  Sec. 15   A new section is added to chapter 87.03 RCW to read as follows:
     In addition to the authority provided throughout this title, an irrigation district, reclamation district, and similar districts organized pursuant to the authority of this title may participate in and expend revenue on cooperative watershed management actions, including watershed management partnerships under section 6 of this act and other intergovernmental agreements, for purposes of water supply, water quality, and water resource and habitat protection and management.

NEW SECTION.  Sec. 16   A new section is added to chapter 53.08 RCW to read as follows:
     In addition to the authority provided in this chapter, a port district may participate in and expend revenue on cooperative watershed management actions, including watershed management partnerships under section 6 of this act and other intergovernmental agreements, for purposes of water supply, water quality, and water resource and habitat protection and management.

NEW SECTION.  Sec. 17   A new section is added to chapter 85.38 RCW to read as follows:
     In addition to the authority provided throughout this title, diking, drainage, sewerage improvement, and similar districts organized pursuant to this title may participate in and expend revenue on cooperative watershed management actions, including watershed management partnerships under section 6 of this act and other intergovernmental agreements, for purposes of water supply, water quality, and water resource and habitat protection and management.

NEW SECTION.  Sec. 18   A new section is added to chapter 86.09 RCW to read as follows:
     In addition to the authority provided in this chapter, flood control districts may participate in and expend revenue on cooperative watershed management actions, including watershed management partnerships under section 6 of this act and other intergovernmental agreements, for purposes of water supply, water quality, and water resource and habitat protection and management.

NEW SECTION.  Sec. 19   A new section is added to chapter 86.15 RCW to read as follows:
     In addition to the authority provided in this chapter, flood control zone districts may participate in and expend revenue on cooperative watershed management actions, including watershed management partnerships under section 6 of this act and other intergovernmental agreements, for purposes of water supply, water quality, and water resource and habitat protection and management.