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Bill would extend reimbursement contract window for public improvements to 20 years; districts warn of administrative burden
Summary
Representative Brandy Donaghy introduced House Bill 1305 to set a 20‑year limit for reimbursement contracts for street, water and sewer improvements and to permit extensions during declared recessions or the COVID‑19 emergency under specified conditions.
Representative Brandy Donaghy described House Bill 1305 as a measure to extend the maximum period during which a developer who installs public improvements may seek reimbursement from later users. Committee staff Kellen Wright said current law generally limits reimbursement contracts to 15 years for water/sewer district extensions and 20 years for municipal contracts; HB 1305 would standardize the limit at 20 years and allow tolling for the duration of a recession declared by the National Bureau of Economic Research and, for contracts entered before COVID, for the period of the COVID‑19 state of emergency if the contract beneficiary requests an extension by March 31, 2026.
Kellen Wright also noted the bill would remove an existing requirement that property owners subject to reimbursement obligations be notified when an extension is filed — a provision that prompted questions from committee members about who would be informed of extended obligations.
Devin Gomboski of the Washington Association of Sewer and Water Districts testified in opposition. Gomboski said extending the reimbursement window from 15 to 20 years and introducing new filing and notification obligations would create “substantial administrative burden” for districts that already struggle to track long‑running agreements, particularly when businesses change ownership or go out of business. He urged the committee to oppose the bill unless administrative impacts can be addressed.
Representative Donaghy said the extension is intended to reduce risk for initial developers who install infrastructure in areas without municipal utilities so that future development can connect to existing improvements. Committee members asked for clarification about the provision removing notification requirements for property owners that may become subject to reimbursement obligations; staff and the sponsor said they would follow up on the language.
The item was presented as a public hearing; no committee vote was recorded in the transcript.
