AN ACT Relating to public utility districts; providing for the financing of sewage treatment; amending RCW 54.04.030 and 54.16.230; adding a new section to chapter 54.08 RCW; and adding new sections to chapter 54.24 RCW.

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

NEW SECTION. Sec. 1. A new section is added to chapter 54.24 RCW to read as follows:

A public utility district including one created under section 2 of this act may impose property taxes under RCW 54.16.080 on property within its boundaries, including property located within municipal corporations that provide water quality facilities or services, to finance all or part of the costs of water quality facilities or services if the governing body of every municipal corporation located within its boundaries that provides such services or facilities approves the initial imposition of the property tax. Tax moneys received by the public utility district for such purposes shall be distributed to a municipal corporation within its boundaries providing such services and facilities pursuant to an agreement between the public utility district and the individual municipal corporation.

As used in this chapter, "water quality facilities and services" includes sanitary sewage collection and treatment facilities, storm water collection and treatment facilities, combined sewer overflow facilities, and any services related to preventing or reducing the pollution of surface and ground waters.

NEW SECTION. Sec. 2. A new section is added to chapter 54.08 RCW to read as follows:

(1) In addition to other methods of creating a public utility district, a county legislative authority or the metropolitan council of a county-wide metropolitan municipal corporation may create, by resolution, a county-wide public utility district with authority limited to providing water quality facilities or services or financing all or a portion of the costs of such facilities or services. The resolution shall include a finding that a public utility district of limited authority is in the public interest. The county legislative authority shall be the governing body of a public utility district of limited authority created by the county, and a metropolitan council of a county-wide metropolitan municipal corporation shall be the governing body of a public utility district of limited authority created by the council. A public utility district of limited authority shall not engage in providing water, irrigation, or electrical power.

(2) A public utility district of limited authority may convert to a public utility district with full authority if a ballot proposition authorizing the provision of such additional authority is approved by simple majority of the public utility district voters voting on the proposition. At the election on such a proposition to increase the authority of a public utility district of limited purpose, there also shall be an election for three commissioners as provided in RCW 54.08.060: PROVIDED, That the election of commissioners shall be null and void if the proposition to add additional authority to the public utility district is not approved. Those persons initially elected under this procedure as public utility district commissioners shall take office immediately.

NEW SECTION. Sec. 3. A new section is added to chapter 54.08 RCW to read as follows:

Sec. 4. Section 12, chapter 1, Laws of 1931 and RCW 54.04.030 are each amended to read as follows:

This act shall not be deemed or construed to repeal or affect any existing act, or any part thereof, relating to the construction, operation and maintenance of public utilities by irrigation or water districts or other municipal corporations, but shall be supplemental thereto and concurrent therewith. Except for a public utility district created under section 2 of this 1986 act, no public utility district created hereunder shall include therein any municipal corporation, or any part thereof, where such municipal corporation already owns or operates all the utilities herein authorized: PROVIDED, that in case it does not own or operate all such utilities it may be included within such public utility district for the purpose of establishing or operating therein such utilities as it does not own or operate((~~: PROVIDED, FURTHER, That~~)). Except as provided in section 1 of this 1986 act, no property situated within any irrigation or water districts or other municipal corporations shall ever be taxed or assessed by a public utility district to pay for any utility, or part thereof, of like character to any utility, owned or operated by such irrigation or water districts or other municipal corporations.

Sec. 5. Section 1, chapter 57, Laws of 1975 1st ex. sess. and RCW 54.16.230 are each amended to read as follows:

A public utility district may acquire, construct, operate, maintain, and add to sewage systems, subject to and in compliance with the county comprehensive plan, under the general powers of Title 54 RCW or through the formation of local utility districts as provided in RCW 54.16.120 through 54.16.170: PROVIDED, That prior to engaging in any sewage system works as authorized by this section, the voters of the public utility district shall first approve by majority vote a referendum proposition authorizing such district to exercise the powers set forth in this section, which proposition shall be presented at a general election. The requirement for voter approval required by this section does not apply to a public utility district created under section 1 of this 1986 act.