SENATE BILL REPORT

SHB 2889

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As Reported by Senate Committee On:

Local Government, February 27, 2020

Sponsors: House Committee on Local Government (originally sponsored by Representative Griffey).

Brief Summary of Amended Bill

Requires that any city or town that operates its own water, sewer or wastewater, or stormwater utility, and imposes a tax or fee on the operation of that utility, must disclose the tax or fee to its customers on its billing statements, a public website, or through other written or electronic communication made on an annual basis or within 30 days of the effective date of any rate change.

Majority Report: Do pass as amended.

Signed by Senators Takko, Chair; Short, Ranking Member; Honeyford and Lovelett.

Minority Report: That it be referred without recommendation.

Signed by Senator Salomon, Vice Chair.

Background: Cities and towns may operate municipal utilities, including utilities providing water, sewage, and stormwater services.

Cities and towns may impose license or excise taxes on business activities, including the provision of services by utilities. These taxes may be imposed by a city or town on the operation of its own utility.

Summary of Amended Bill: Any city or town that operates its own water, sewer or wastewater, or stormwater utility, and imposes a tax or fee on the gross revenue of the utility, must disclose the tax or fee to its utility customers. This disclosure can occur on a regular billing statement—either electronic or paper; on the city or town's website, if written notice is provided to customers or taxpayers that this information is available; or through an insert, mailer, or other communication provided to customers or taxpayers either annually or within 30 days of any subsequent tax rate change.

EFFECT OF LOCAL GOVERNMENT COMMITTEE AMENDMENT(S):

Closes a quotation of required tax or fee disclosure language.

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

Staff Summary of Public Testimony on Substitute House Bill: The committee recommended a different version of the bill than what was heard. PRO: There have been issues for constituents not being able to get an exact breakdown of what they are paying on their utility bills with a public records request. This is a good common sense, open government bill.

OTHER: We appreciate that this bill does not cause additional administrative work for the utility.

Persons Testifying: PRO: Representative Dan Griffey, Prime Sponsor. OTHER: Candice Bock, Association of Washington Cities.