HOUSE BILL REPORT

SHB 2539

BYHouse Committee on Local Government (originally sponsored by Representatives Wood, Jacobsen, Ferguson, Nealey and Haugen)

Amending water and sewer district provisions.

House Committe on Local Government

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (12)

      Signed by Representatives Haugen, Chair; Cooper, Vice Chair; Ferguson, Ranking Republican Member; Horn, Kirby, Nealey, Nelson, Nutley, Phillips, Raiter, Rayburn and Zellinsky.

House Staff:Steve Lundin (786-7127)

AS PASSED HOUSE FEBRUARY 9, 1990

BACKGROUND:

Sewer district and water district commissioners may receive compensation at a rate of up to $50 per day, not to exceed $4,800 per year.  In addition, the commissioner who is the secretary of the board may receive a reasonable amount for clerical services.  No provisions of law exist concerning the provision of insurance benefits for sewer district or water district commissioners.

Sewer districts and water districts are authorized to hire staff and provide staff with compensation as well as health care services, group insurance, and term life insurance.

Whenever a sewer district or water district leases its real property, the district is required to secure the lease by a performance bond with a penalty of an amount equal to the larger of "one-sixth of the term of the lease" or one year's rental.

SUMMARY:

A sewer district, or water district, with 5,000 or more customers providing health, group, or life insurance benefits to its employees may provide its commissioners with the same coverage.

The board of commissioners of a sewer district or water district can require a reasonable security deposit, in lieu of a performance bond, whenever district property is leased.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Bert Lysen and Joe Daniels, Washington State Association of Water/Wastewater Districts; and Jim Salatino, Washington State Association of Sewer Districts.

House Committee - Testified Against:      No one.

House Committee - Testimony For:    These are needed benefits.  Port and PUD commissioners may receive similar benefits.  Only the larger districts will take advantage of this provision.

House Committee - Testimony Against:      None.