BILL REQ. #:  H-0766.2 

Read first time 01/30/2007.   Referred to Committee on Local Government.

     AN ACT Relating to water-sewer districts; adding a new section to chapter 35.13A RCW; and adding a new section to chapter 35.21 RCW.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 35.13A RCW to read as follows:
     (1) A city may not assume, under this chapter, the jurisdiction of all or part of a water-sewer district serving a population greater than one thousand residents and containing, within its boundaries, the territory of two or more cities, or one city and unincorporated territory, unless voters of the entire water-sewer district approve a ballot proposition authorizing the assumption under general election law. The cost of the election shall be borne by the city seeking approval to assume jurisdiction of a water-sewer district.
     (2) A city or town may assume jurisdiction over a water-sewer district located within its boundaries without seeking approval of the voters, as required under subsection (1) of this section, if the board of commissioners of the water-sewer district consent to the assumption of jurisdiction by the city or town. The feasibility study required under subsection (3) of this section is not required if the board of commissioners of the water-sewer district consents to the assumption of jurisdiction by the city or town.
     (3) Following the passage of a resolution by a city or town to assume all or part of a special purpose water-sewer district under this chapter, a feasibility study of such assumption shall be conducted, unless the board of commissioners of the water-sewer district consents to the assumption of jurisdiction by the city or town as provided under subsection (2) of this section. The study will be jointly and equally funded by the city and the district through a mutually agreed contract with a qualified independent consultant with professional expertise involving public water and sewer systems. The study shall address the impact of the proposed assumption on both the city and district. Issues to be considered shall be mutually agreed to by the city and the district and shall include, but not be limited to, engineering and operational impacts, costs of the assumption to the city and the district including potential impacts on future water-sewer rates, bond ratings and future borrowing costs, status of existing water rights, and other issues jointly agreed to. The findings of the joint study shall be presented as a public record that is available to the registered voters of the district, both within and without the boundary of the city conducting the assumption, prior to a vote on the proposed assumption by all the voters in the district. The study shall be completed within six months of the passage of the resolution to assume the district. No vote shall take place until such study has been completed and the results have been made available to the registered voters of the district.
     (4) This section is applicable to assumptions of jurisdiction of water-sewer districts by cities or towns that have been initiated prior to the effective date of this act and which are pending as of that date, as well as those assumptions of jurisdiction that are initiated on or after the effective date of this act.
     (5) Once the voters in a water-sewer district have approved or disapproved an assumption through the ballot proposition process required under subsection (1) of this section, a boundary review board does not have jurisdiction, under chapter 36.93 RCW, to conduct a review of such assumption where the attempted or completed assumption involves not more than one city.

NEW SECTION.  Sec. 2   A new section is added to chapter 35.21 RCW to read as follows:
     A city or town in which a water-sewer district operates works, plants, or facilities for the distribution and sale of water or sewer services has the power to levy and collect from the district a tax on the gross revenues derived by the district from the sale of water or sewer services within the city or town, exclusive of the revenues derived from the sale of water or sewer services for purposes of resale. The tax when levied shall be a debt of the district, and may be collected as such. The district has the power to add the amount of tax to the rates or charges it makes for water or sewer services sold within the limits of the city or town. A city or town shall not impose the tax under this section if the city or town is imposing any tax, fee, or charge on the water-sewer district pursuant to an interlocal agreement.