HOUSE BILL REPORT

HB 545

BYRepresentatives Ferguson, Haugen, Nutley and O'Brien

Correcting the double amendment to RCW 35.92.070.

House Committe on Local Government

Majority Report:     Do pass.  (13)

     Signed by Representatives Haugen, Chair; Cooper, Vice Chair; Beck, Bumgarner, Ferguson, Hine, Madsen, Nealey, Nelson, Nutley, Rayburn, L. Smith and Zellinsky.

House Staff:Steve Lundin (786-7127)

AS PASSED HOUSE MARCH 4, 1987

BACKGROUND:

The ability of cities and towns to provide or make betterments to utility systems is restricted so that in certain circumstances voters must approve a ballot proposition on the matter before the city or town can proceed.  No other local government authorized to provide utility services, e.g., sewer districts or irrigation districts, is limited in a similar manner.

The statute so restricting city and town utility authority was inconsistently amended by two separate acts 1985.

SUMMARY:

The double amendments are corrected on the law relating to voter approval of city utility system betterments.

Voter approval of a utility expansion by a city or town would be required if the project were characterized by each of the following: (1) a water system expansion also included the generation of electricity for sale in excess of the present or future needs related to the water system; (2) the city or town did not already own or operated an electrical utility system; (3) the work involved an ownership of greater than 25% of the combined water and electrical system; and (4) the electrical system has a capacity in excess of five megawatts.

Voter approval would be necessary if the extensions expanded previous capacity by more than 50%, or if general obligation bonds were issued.

Fiscal Note:    Not Requested.

House Committee ‑ Testified For:     Chuck Mize, City of Bellevue; and Randy Scott, Seattle City Light.

House Committee - Testified Against: None Presented.

House Committee - Testimony For:     This corrects potentially conflicting and confusing direction given by this double amendment.

House Committee - Testimony Against: None Presented.