HOUSE BILL REPORT

SJR 8210

BYSenators Barr, Talmadge, Hansen, Benitz and Williams

Modifying the Constitution to allow for entities engaged in water sale or distribution to undertake conservation.

House Committe on Natural Resources & Parks

Majority Report:  Do pass.  (11)

      Signed by Representatives Belcher, Chair;K. Wilson, Vice Chair; Beck, Ranking Republican Member; Brumsickle, Dellwo, Ferguson,R. Fisher, Fuhrman, Hargrove, Raiter and Sayan.

House Staff:Bill Koss (786-7129)

AS PASSED HOUSE APRIL 13, 1989

BACKGROUND:

Article VIII, Section 7 of the State Constitution prohibits any county, city, town, or other municipal corporation from giving money or property, or loaning money or credit, to any private individual or organization.  In November 1979, the voters approved Amendment 70 to the Constitution permitting public entities, and any political subdivision of the state engaged in sale or distribution of energy, to assist in the financing of energy conservation measures.  The question has arisen as to whether public utilities that want to engage in the financing of water conservation and efficiency programs would be precluded from doing so by Section 7 without a similar constitutional amendment.

SUMMARY:

An amendment to add water conservation and efficiency measures to the provisions of Article VIII, Section 10, would be submitted for the approval of voters at the next general election.  Section 10 would permit any county, city, town, quasi-municipal corporation, municipal corporation, or political subdivision of the state engaged in the sale or distribution of water, as approved by the Legislature, to use public money or credit from operating revenues.  The money or credit would be used to finance the acquisition and installation of materials and equipment for conservation or more efficient use of water in structures or equipment.  Such loans or credit are to be charged back and become a lien against the structure or a security interest in the equipment.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Merle Gibbens, South Columbia Basin Irrigation District; Tom Mortimer, PUD Association; Lloyd Warner, Washington Water Utilities Council; Henry Yates, Seattle Water Department.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    The constitutional amendment and the enabling legislation (SSB 5889) allow municipalities, irrigation districts, water districts, and public utility districts to provide assistance for water conservation.  The assistance may go generally to residences, commercial buildings, industrial facilities, and irrigation.

House Committee - Testimony Against:      None Presented.