Washington SB 5930: Concerning irrigation district director beneficial interests in contracts.

Bill Text

AN  ACT  Relating  to  irrigation  district  director  beneficial 1
interests  in  contracts;  amending  RCW 42.23.030;  and  creating  a  new 2
section.3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
NEW  SECTION.   Sec.  1.   The  legislature  finds  that  the  current 5
statute  pertaining  to  municipal  officers'  beneficial  interest  in 6
contracts  has  resulted  in  inadvertent  impacts  especially  in  rural 7
communities,  by  reaching  too  far  and  inadvertently  precluding 8
otherwise  qualified  individuals  from  serving  as  irrigation  district 9
directors.
10
Therefore,  it  is  the  intent  of  the  legislature  to  clarify  the 11
statutes pertaining to irrigation district directors and contracts to 12
ensure  reasonable  protections  against  inappropriate  conflicts  of 13
interest  exist,  while  acknowledging  the  challenges  such  laws  may 14
present in small rural communities.15
Sec.  2.   RCW  42.23.030  and  2023  c  153  s  1  are  each  amended  to 16
read as follows:17
No  municipal  officer  shall  be  beneficially  interested,  directly 18
or indirectly, in any contract which may be made by, through or under 19
the supervision of such officer, in whole or in part, or which may be 20
S-3551.1
SENATE BILL 5930
State of Washington69th Legislature2026 Regular Session
By Senators Goehner and Chapman
Prefiled 12/22/25.
p. 1SB 5930

made  for  the  benefit  of  his  or  her  office,  or  accept,  directly  or 1
indirectly,  any  compensation,  gratuity  or  reward  in  connection  with 2
such contract from any other person beneficially interested therein. 3
This section shall not apply in the following cases:4
(1) The furnishing of electrical, water or other utility services 5
by  a  municipality  engaged  in  the  business  of  furnishing  such 6
services, at the same rates and on the same terms as are available to 7
the public generally;8
(2) The designation of public depositaries for municipal funds;9
(3)  The  publication  of  legal  notices  required  by  law  to  be 10
published  by  any  municipality,  upon  competitive  bidding  or  at  rates 11
not higher than prescribed by law for members of the general public;12
(4)  The  designation  of  a  school  director  as  clerk  or  as  both 13
clerk and purchasing agent of a school district;14
(5) The employment of any person by a municipality for unskilled 15
day  labor  at  wages  not  exceeding  $1,000  in  any  calendar  month.  The 16
exception provided in this subsection does not apply to a county with 17
a  population  of  125,000  or  more,  a  city  with  a  population  of  more 18
than  1,500,  an  irrigation  district  encompassing  more  than  50,000 19
acres, or a first-class school district;20
(6)(a)  The  letting  of  any  other  contract  in  which  the  total 21
amount  received  under  the  contract  or  contracts  by  the  municipal 22
officer or the municipal officer's business does not exceed $3,000 in 23
any calendar month.24
(b)  However,  in  the  case  of  a  particular  officer  of  a  second-25
class city or town, or a noncharter optional code city, or a member 26
of  any  county  fair  board  in  a  county  which  has  not  established  a 27
county  purchasing  department  pursuant  to  RCW 36.32.240,  the  total 28
amount  of  such  contract  or  contracts  authorized  in  this  subsection 29
(6)  may  exceed  $3,000  in  any  calendar  month  but  shall  not  exceed 30
$36,000 in any calendar year.31
(c)(i)  In  the  case  of  a  particular  officer  of  a  rural  public 32
hospital district, as defined in RCW 70.44.460, the total amount of 33
such  contract  or  contracts  authorized  in  this  subsection (6)  may 34
exceed $1,500 in any calendar month, but shall not exceed $24,000 in 35
any calendar year.36
(ii) At the beginning of each calendar year, beginning with the 37
2006  calendar  year,  the  legislative  authority  of  the  rural  public 38
hospital  district  shall  increase  the  calendar  year  limitation 39
described in this subsection (6)(c) by an amount equal to the dollar 40
p. 2SB 5930

amount for the previous calendar year multiplied by the change in the 1
consumer  price  index  as  of  the  close  of  the  12-month  period  ending 2
December  31st  of  that  previous  calendar  year.  If  the  new  dollar 3
amount  established  under  this  subsection  is  not  a  multiple  of  $10, 4
the increase shall be rounded to the next lowest multiple of $10. As 5
used  in  this  subsection,  "consumer  price  index"  means  the  consumer 6
price index compiled by the bureau of labor statistics, United States 7
department  of  labor  for  the  state  of  Washington.  If  the  bureau  of 8
labor  statistics  develops  more  than  one  consumer  price  index  for 9
areas  within  the  state,  the  index  covering  the  greatest  number  of 10
people,  covering  areas  exclusively  within  the  boundaries  of  the 11
state, and including all items shall be used.12
(d) Th