H-3251              _______________________________________________

 

                                           SUBSTITUTE HOUSE BILL NO. 557

                        _______________________________________________

 

State of Washington                              49th Legislature                              1986 Regular Session

 

By House Committee on Local Government (originally sponsored by Representative Haugen)

 

 

Read first time 1/20/86 and referred to Committee on Rules.

 

 


AN ACT Relating to special districts; amending RCW 53.48.010, 85.05.360, 85.06.330, 85.08.210, 85.08.320, 85.16.030, 85.16.180, 85.20.070, 85.20.120, 85.22.060, 85.24.160, 85.32.140, 86.09.157, 85.38.010, 85.38.070, 86.09.430, 86.09.439, 86.09.562, and 85.08.320; adding a new section to chapter 36.96 RCW; adding a new section to chapter 57.90 RCW; adding new sections to chapter 85.05 RCW; adding new sections to chapter 85.06 RCW; adding new sections to chapter 85.08 RCW; adding new sections to chapter 85.24 RCW; adding new sections to chapter 85.36 RCW; adding new sections to chapter 85.38 RCW; adding new sections to chapter 86.09 RCW; repealing RCW 85.05.290, 85.05.300, 85.05.310, 85.05.320, 85.05.330, 85.05.340, 85.05.480, 85.05.510, 85.05.520, 85.05.530, 85.06.170, 85.06.260, 85.06.270, 85.06.280, 85.06.290, 85.06.300, 85.06.310, 85.06.321, 85.06.322, 85.06.323, 85.06.324, 85.06.325, 85.06.326, 85.06.327, 85.06.328, 85.06.329, 85.08.240, 85.08.280, 85.09.010, 85.09.020, 85.09.030, 85.09.040, 85.09.050, 85.09.060, 85.09.070, 85.09.080, 85.09.090, 85.09.900, 85.20.080, 85.20.090, 85.20.100, 85.20.110, 85.20.120, 85.20.130, 85.22.070, 85.22.080, 85.22.090, 85.22.100, 85.22.110, 85.22.120, 85.24.230, 86.09.568, 86.09.571, 86.09.574, 86.09.577, 86.09.580, 86.09.583, 86.09.586, 86.09.589, 86.09.604, 86.09.607, 86.09.610, 86.09.613, 85.05.560, 85.05.570, 85.05.580, 85.05.590, 85.05.600, 85.06.510, 85.06.520, 85.06.530, 85.06.540, 85.07.020, 85.07.030, 85.08.580, 85.08.590, 85.08.600,  85.08.610, 85.08.620, 85.08.625, 85.36.010, 85.36.020, 85.36.030, 86.09.622, and 86.09.625; and declaring an emergency.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

 

          NEW SECTION.  Sec. 1.  A new section is added to chapter 85.38 RCW  to read as follows:

          (1) Territory that is contiguously located to a special district may be annexed by the special district as provided in this section under the petition and election, resolution and election, or direct petition method of annexation.

          (2) An annexation under the election method may be initiated by the filing of a petition requesting the action that is signed by at least ten owners of property in the area proposed to be annexed or the adoption of a resolution requesting such action by the governing body of the special district.  The petitions shall be filed with the governing body of the special district that is requested to annex the territory.  An election to authorize an annexation initiated under the petition and election method may be held only if the governing body approves the annexation.  An annexation under either election method shall be authorized if the voters of the area proposed to be annexed approve a ballot proposition favoring the annexation by a simple majority vote.  The annexation shall be effective when results of an election so favoring the annexation are certified by the county auditor or auditors.  The election, notice of the election, and eligibility to vote at the election shall be as provided for the creation of a special district.

          (3) An annexation under the direct petition method of annexation may be accomplished if the owners of a majority of the acreage proposed to be annexed sign a petition requesting the annexation, and the governing body of the special district approves the annexation.  The petition shall be filed with the governing body of the special district.  The annexation shall be effective when the governing body approves the annexation.

          (4) Whenever a special district annexes territory under this section, the exclusive method by which the special district measures and imposes special assessments upon real property within the entire enlarged area shall be as set forth in RCW 85.38.150 through 85.38.170.

 

          NEW SECTION.  Sec. 2.  A new section is added to chapter 85.38 RCW to read as follows:

          Two or more special districts that are contiguously located with each other, or which occupy all or part of the same territory, may consolidate as provided in this section.  The consolidation shall result in the creation of a flood control district.

          A consolidation may be initiated by:  (1) The filing of a petition requesting the action that is signed by eligible voters of each special district who constitute at least ten percent of the eligible voters of the special district, or who own at least a majority of the acreage in the special district; or (2) the adoption of a resolution requesting such action by the governing body of each special district.  The petitions shall be filed with, and the resolutions shall be submitted to, the county legislative authority of the county within which all or the largest portion of the special districts is located.  The auditor of the county, or auditors of the counties, within which these districts are located shall authenticate the signatures on the petitions and certify the results.  An election to authorize the consolidation shall be held not more than one hundred eighty days after the date of the filing of the resolutions, or the determination that sufficient valid signatures are included on the petition from the voters of each of the special districts.

          The consolidation shall be authorized if voters in each of the special districts approve a ballot proposition favoring the consolidation by a simple majority vote.   Members of the governing body of the consolidated special district shall be selected as provided in RCW 85.38.070 for a newly created special district and the consolidation shall be effective when these initial members of the governing body are so appointed.

          All moneys, rights, property, assets and liabilities of the consolidating special districts shall vest in and become the obligation of the new consolidated special district, except that any indebtedness of a consolidating special district shall remain an indebtedness of the original consolidating special district and lands within the original consolidating special district.  The governing body of the new consolidated special district shall impose special assessments on lands in the original consolidating special district to redeem this indebtedness.  However, the new consolidated special district may issue funding or refunding bonds or notes and fund or refund such indebtedness.  The new consolidated special district may continue imposing special assessments pursuant to the various systems of assessment used by the original consolidating special districts, or may establish a new system or systems of assessment in all or part of the new consolidated special district to finance its operations.

 

          NEW SECTION.  Sec. 3.  A new section is added to chapter 85.38 RCW to read as follows:

          Any special district may have its operations suspended as provided in this section.  The process of suspending a special district's operations may be initiated by:  (1) The adoption of a resolution proposing such action by the governing body of the special district; (2) the filing of a petition proposing such action with the county legislative authority of the county in which all or the largest portion of the special district is located, which petition is signed by voters of the special district who own at least ten percent of the acreage in the special district or is signed by ten or more voters of the special district; or (3) the adoption of a resolution proposing such action by the county legislative authority of the county in which all or the largest portion of the special district is located.

          A public hearing on the proposed action shall be held by the county legislative authority at which it shall inquire into whether such action is in the public interest.  Notice of the public hearing shall be published in a newspaper of general circulation in the special district, posted in at least four locations in the special district to attract the attention of the public, and mailed to the members of the governing body of the special district, if there are any.  After the public hearing, the county legislative authority may adopt a resolution suspending the operations of the special district if it finds such suspension to be in the public interest.  When a special district is located in more than one county, the legislative authority of each of such counties must so act before the operations of the special district are suspended.

          After holding a public hearing on the proposed reactivation of a special district that has had its operations suspended, the legislative authority or authorities of the county or counties in which the special district is located may reactivate the special district by adopting a resolution finding such action to be in the public interest.  Notice of the public hearing shall be posted and published as provided for the public hearing on a proposed suspension of a special district's operations.  The governing body of a reactivated special district shall be appointed as in a newly created special district.

          No special district that owns drainage or flood control improvements may be dissolved.  A special district that has had its operations suspended shall retain responsibility for its past actions and improvements.  Any judgments rendered against such a special district shall remain the responsibility of the special district and shall not be the responsibility or liability of the county.

 

          NEW SECTION.  Sec. 4.  A new section is added to chapter 85.05 RCW to read as follows:

          Diking districts may annex territory, consolidate with other special districts, and have their operations suspended and be reactivated, in accordance with chapter 85.38 RCW.

 

          NEW SECTION.  Sec. 5.  A new section is added to chapter 85.06 RCW to read as follows:

          Drainage districts may annex territory, consolidate with other special districts, and have their operations suspended and be reactivated, in accordance with chapter 85.38 RCW.

 

          NEW SECTION.  Sec. 6.  A new section is added to chapter 85.08 RCW to read as follows:

          Diking or drainage improvement districts may annex territory, consolidate with other special districts, and have their operations suspended and be reactivated, in accordance with chapter 85.38 RCW.

 

          NEW SECTION.  Sec. 7.  A new section is added to chapter 85.24 RCW to read as follows:

          Intercounty diking and drainage improvement districts may annex territory, consolidate with other special districts, and have their operations suspended and be reactivated, in accordance with chapter 85.38 RCW.

 

          NEW SECTION.  Sec. 8.  A new section is added to chapter 85.36 RCW to read as follows:

          Consolidated diking districts, drainage districts, diking improvement districts, and/or drainage improvement districts may annex territory, consolidate with other special districts, and have their operations suspended and be reactivated, in accordance with chapter 85.38 RCW.

 

          NEW SECTION.  Sec. 9.  A new section is added to chapter 86.09 RCW to read as follows:

          Flood control districts may annex territory, consolidate with other special districts, and have their operations suspended and be reactivated, in accordance with chapter 85.38 RCW.

 

          NEW SECTION.  Sec. 10.  A new section is added to chapter 57.90 RCW to read as follows:

          A special district, as defined in RCW 85.38.010 may not be dissolved under chapter 57.90 RCW if the special district owns flood control or drainage improvements.

 

          NEW SECTION.  Sec. 11.  A new section is added to chapter 36.96 RCW to read as follows:

          A special district, as defined in RCW 85.38.010, may not be dissolved under chapter 36.96 RCW if the special district owns flood control or drainage improvements.

 

          NEW SECTION.  Sec. 12.  A new section is added to chapter 86.09 RCW to read as follows:

          The provisions of section 3 of this act, relating to the suspension of the operations of a special district, shall apply to any flood control district that as of the effective date of this act has not completed the process of dissolution, including the filing of a statement on the full payment of the district's obligations under RCW 86.09.625.  Any dissolution process initiated but not completed as of the effective date of this act is null and void.

 

        Sec. 13.  Section 1, chapter 87, Laws of 1941 as amended by section 10, chapter 30, Laws of 1979 ex. sess. and RCW 53.48.010 are each amended to read as follows:

          The following words and terms shall, whenever used in this chapter, have the meaning set forth in this section:

          (1) The term "district" as used herein, shall include all municipal and quasi municipal corporations having a governing body, other than cities, towns, counties, and townships, such as port, school, water, fire protection, and all other districts of similar organization, but shall not include local improvement districts, diking, drainage and irrigation districts, special districts as defined in RCW 85.38.010, nor public utility districts.

          (2) The words "board of commissioners," as used herein, shall mean the governing authority of any district as defined in subdivision (1) of this section.

 

          NEW SECTION.  Sec. 14.  A new section is added to chapter 85.38 RCW to read as follows:

          A special district may issue special assessment bonds or notes to finance costs related to providing, improving, expanding, or enlarging improvements and facilities if the county legislative authority within which all or the major part of the special district is located authorizes the issuance of such bonds or notes.  The decision of a county legislative authority authorizing or failing to authorize a proposed issue of special assessment bonds or notes constitutes a discretionary function, and shall not give rise to a cause of action against the county, county legislative authority, or any member of the county legislative authority.

 

          NEW SECTION.  Sec. 15.  A new section is added to chapter 85.38 RCW to read as follows:

          (1) Special assessment bonds and notes issued by special districts shall be issued and sold in accordance with chapter 39.46 RCW, except as otherwise provided in this chapter.  The maximum term of any special assessment bond issued by a special district shall be twenty years.  The maximum term of any special assessment note issued by a special district shall be five years.

          (2) The governing body of a special district issuing special assessment bonds or notes shall create a special fund or funds, or use an existing special fund or funds, from which, along with any special assessment bond guaranty fund the special district has created, the principal of and interest on the bonds or notes exclusively are payable.

          (3) The governing body of a special district may provide such covenants as it may deem necessary to secure the payment of the principal of and interest on special assessment bonds or notes, and premiums on special assessment bonds or notes, if any.  Such covenants may include, but are not limited to, depositing certain special assessments into a special fund or funds, and establishing, maintaining, and collecting special assessments which are to be placed into the special fund or funds.  The special assessments covenanted to be placed into such a special fund or funds after the effective date of this act may include all or part of the new system of special assessments imposed for such purposes, pursuant to RCW 85.38.150 and 85.38.160.  However, the special assessments covenanted to be placed into the special fund or funds from which the funding or refunding special assessment bonds or notes to be funded or refunded were payable.

          (4) A special assessment bond or note issued by a special district shall not constitute an indebtedness of the state, either general or special, nor of the county, either general or special, within which all or any part of the special district is located.  A special assessment bond or note shall not constitute a general indebtedness of the special district issuing the bond or note, but is a special obligation of the special district and the interest on and principal of the bond or note shall be payable only from special assessments covenanted to be placed into the special fund or funds, and any special assessment bond guaranty fund the special district has created.

          The owner of a special assessment bond or note, or the owner of an interest coupon, shall not have any claim for the payment thereof against the special district arising from the special assessment bond or note, or interest coupon, except for payment from the special fund or funds, the special assessments covenanted to be placed into the special fund or funds, and any special assessment bond guaranty fund the special district has created.  The owner of a special assessment bond or note, or the owner of an interest coupon, issued by a special district shall not have any claim against the state, or any county within which all or part of the special district is located, arising from the special assessment bond, note, or interest coupon.  The special district issuing the special assessment bond or note shall not be liable to the owner of any special assessment bond or note, or owner of any interest coupon, for any loss occurring in the lawful operation of its special assessment bond guaranty fund.

          The substance of the limitations included in this subsection shall be plainly printed, written, engraved, or reproduced on:  (a) Each special assessment bond or note that is a physical instrument; (b) the official notice of sale; and (c) each official statement associated with the bonds or notes.

 

          NEW SECTION.  Sec. 16.  A new section is added to chapter 85.38 RCW to read as follows:

          The governing body of a special district issuing special assessment bonds or notes may create and pay money into a special assessment bond guaranty fund to guaranty special assessment bonds and notes issued by the special district.  A portion of the special assessments collected by a special district may be placed into its special assessment bond guaranty fund.

 

          NEW SECTION.  Sec. 17.  A new section is added to chapter 85.38 RCW to read as follows:

          A special district may issue funding or refunding special assessment bonds or notes to refund outstanding bonds or notes.  Such funding or refunding bonds or notes shall be subject to the provisions of law governing other special assessment bonds or notes.

 

          NEW SECTION.  Sec. 18.  A new section is added to chapter 85.38 RCW to read as follows:

          Special assessment bonds or notes issued by a special district prior to July 1, 1986, shall continue to be retired and be subject to the laws under which they were issued.

 

          NEW SECTION.  Sec. 19.  A new section is added to chapter 85.05 RCW to read as follows:

          Special assessment bonds and notes shall be issued and sold in accordance with chapter 85.38 RCW.

 

          NEW SECTION.  Sec. 20.  A new section is added to chapter 85.06 RCW to read as follows:

          Special assessment bonds and notes shall be issued and sold in accordance with chapter 85.38 RCW.

 

          NEW SECTION.  Sec. 21.  A new section is added to chapter 85.08 RCW to read as follows:

          Special assessment bonds and notes shall be issued and sold in accordance with chapter 85.38 RCW.

 

          NEW SECTION.  Sec. 22.  A new section is added to chapter 85.24 RCW to read as follows:

          Special assessment bonds and notes shall be issued and sold in accordance with chapter 85.38 RCW.

 

          NEW SECTION.  Sec. 23.  A new section is added to chapter 85.36 RCW to read as follows:

          Special assessment bonds and notes shall be issued and sold in accordance with chapter 85.38 RCW.

 

          NEW SECTION.  Sec. 24.  A new section is added to chapter 86.09 RCW to read as follows:

          Special assessment bonds and notes shall be issued and sold in accordance with chapter 85.38 RCW.

 

        Sec. 25.  Section 36, chapter 117, Laws of 1895 and RCW 85.05.360 are each amended to read as follows:

          All warrants issued under the provisions of this act shall be presented by the ((holders)) owners thereof to the county treasurer, who shall indorse thereon the day of presentation for payment, with the additional indorsement thereon, in case of nonpayment, that they are not paid for want of funds; and no warrant shall draw interest under the provisions of this act until it is so presented and indorsed by the county treasurer.  And it shall be the duty of such treasurer, from time to time, when he has sufficient funds in his hands for that purpose, to advertise in the newspaper doing the county printing for the presentation to him for payment of as many of the outstanding warrants as he may be able to pay:  PROVIDED, That thirty days after the first publication of said notice of the treasurer calling in any of said outstanding warrants, said warrants shall cease to bear interest, which shall be stated in the notice.  Said notice shall be published two weeks, consecutively, and said warrants shall be called in and paid in the order of their indorsement.

 

        Sec. 26.  Section 33, chapter 115, Laws of 1895 and RCW 85.06.330 are each amended to read as follows:

          All warrants issued under the provisions of this chapter shall be presented by the ((holders)) owners thereof to the county treasurer, who shall indorse thereon the day of presentation for payment, with the additional indorsement thereon, in case of nonpayment, that they are not paid for want of funds; and no warrant shall draw interest under the provisions of this chapter until it is so presented and indorsed by the county treasurer.  And it shall be the duty of such treasurer, from time to time, when he has sufficient funds in his hands for that purpose, to advertise in the newspaper doing the county printing for the presentation to him for payment of as many of the outstanding warrants as he may be able to pay:  PROVIDED, That thirty days after the first publication of said notice of the treasurer calling in any of said outstanding warrants said warrants shall cease to bear interest, which shall be stated in the notice.  Said notice shall be published two weeks consecutively, and said warrants shall be called in and paid in the order of their indorsement.

 

        Sec. 27.  Section 15, chapter 176, Laws of 1913 and RCW 85.08.210 are each amended to read as follows:

          Upon ((the settlement of the claims for damages as provided in RCW 85.08.170, or upon)) the entry of judgment as provided in RCW 85.08.200, the county auditor shall, under the direction of the ((board of county commissioners)) county legislative authority, draw ((his)) a warrant upon the county treasurer for the payment of the amount of damages agreed to or the amount of the judgment, as the case may be, to be paid out of the current expense fund of the county.

 

        Sec. 28.  Section 23, chapter 176, Laws of 1913 as last amended by section 46, chapter 396, Laws of 1985 and RCW 85.08.320 are each amended to read as follows:

          The compensation of the superintendent of construction, the board of appraisers hereinafter provided for, and any special engineer, attorney or agent employed by the district in connection with the improvement, the maximum wages to be paid, and the maximum price of materials to be used, shall be fixed by the district board of supervisors.  ((The compensation for)) Members of the board of supervisors may receive compensation up to twenty-five dollars for attending each official meeting of the district and for each day or major part thereof for all necessary services actually performed in connection with their duties as supervisors.  The level of compensation shall be fixed by the county legislative authority in which all or the major part of the district is located.  Each supervisor shall be entitled to reimbursement for reasonable expenses actually incurred in connection with business, including subsistence and lodging while away from the supervisor's place of residence and mileage for use of a privately owned vehicle in accordance with chapter 42.24 RCW.  ((Each member of the county legislative authority, except in counties of the first class, shall receive pay at the rate of four dollars per day for the number of days he is engaged in the performance of any duty under this chapter, which sum shall be additional to his salary in case he receive an annual salary; and none of the statutory provisions limiting the number of days that a member of the county legislative authority shall draw pay for or limiting the number of sessions for attendance upon which he shall be entitled to mileage shall apply to any proceedings under this chapter.))  All officers and members of boards performing duties under this chapter shall receive in addition to their fees or salaries their actual necessary expenses incurred in the performance of their duties hereinunder.  All costs of construction or maintenance done under the direction of the board of supervisors shall be paid upon vouchers or payrolls verified by two of the said supervisors.  All costs of construction and all other expenses, fees and charges on account of such improvement shall be paid by warrants drawn by the county auditor upon the county treasurer upon the proper fund, and shall draw interest at a rate determined by the county legislative authority until paid or called by the county treasurer as warrants of the county are called.

          ((If at the hearing provided for in RCW 85.08.160 the county legislative authority shall determine that bonds shall be issued to pay the costs of the improvement or warrants sold to procure funds with which to pay such cost, as therein provided, temporary warrants may be issued for any part or all of such costs, expenses, fees, and charges, and shall be paid in cash upon the issuance and sale of such bonds, or shall be exchanged for an equal amount par value of such bonds.  All such temporary warrants shall recite that they are temporary warrants and that they draw interest until called to be paid in cash or to be exchanged for bonds.  All warrants issued under the provisions of this chapter and sold by the county legislative authority, or issued to any contractor and by him sold or hypothecated for a valuable consideration, shall be claims and liens against the fund against which they are drawn, prior and superior to any right, lien or claim of any surety upon any bond or bonds given to secure the performance of the contract or to secure the payment of persons who have performed work thereon, furnished materials therefor or provisions and supplies for the carrying on of the work.))

 

        Sec. 29.  Section 3, chapter 26, Laws of 1949 as amended by section 197, chapter 167, Laws of 1983 and RCW 85.16.030 are each amended to read as follows:

          (((1))) In maintaining a system of improvements of any such district the supervisors thereof may at any time, with the approval of the county legislative authority and upon determination by such county legislative authority that an emergency exists, make expenditures in excess of the last annual maintenance ((levy)) assessments theretofore made, which excess amount or amounts shall in such event be included in the maintenance ((levy)) assessments for the succeeding year except as otherwise herein provided.

          ((When, owing to floods, earthquakes, inadequate maintenance or any other cause, it shall be found by the county legislative authority, after consideration of the supervisors' recommendations, plans and specifications and schedules of estimated costs of maintenance work required, that necessary maintenance work will require extraordinary maintenance expenditures and the county legislative authority shall have authorized such extraordinary maintenance work to be done as herein provided, the county legislative authority may provide that the levy to meet such extraordinary expenditures shall be spread over a term of years and warrants or bonds issued to meet the same.  Such terms shall not exceed five years if warrants are issued, and shall be either ten or fifteen years if bonds are issued, all as the county legislative authority shall determine.  The form, tenor, and amount of such bonds and warrants, the number of installments in which the assessments shall be paid, and the time and method of payment of assessments shall be the same as provided in RCW 85.08.240, for the original construction cost of a system of improvements:  PROVIDED HOWEVER, That said bonds and warrants may be in denominations of one thousand dollars.  Such bonds and warrants may be in any form, including bearer bonds or bearer warrants, or registered bonds or registered warrants as provided in RCW 39.46.030.  In case maintenance bonds  or warrants to cover extraordinary maintenance expenditures are issued as herein provided, then a maintenance bond or warrant redemption fund for each separate issue of bonds or warrants shall be created into which all moneys derived from assessments levied to pay each issue shall be paid.  Such redemption fund shall be applied first to the payment of the interest due upon such bonds or warrants and second to the payment of the principal thereof.  After payment in full of principal and interest of any such issue of bonds or warrants, any balance thereafter remaining in any such redemption fund shall be paid into the district's maintenance fund.

          (2) Notwithstanding subsection (1) of this section, such bonds and warrants may be issued and sold in accordance with chapter 39.46 RCW.))

 

        Sec. 30.  Section 13, chapter 26, Laws of 1949 as last amended by section 198, chapter 167, Laws of 1983 and RCW 85.16.180 are each amended to read as follows:

          (((1))) The county legislative authority shall thereupon enter an order authorizing the contemplated extraordinary maintenance work to be done and authorizing the issuance of temporary construction warrants to pay the cost of said work as it progresses, which warrants may bear interest at such rate or rates of interest as the county legislative authority shall determine.  ((Bonds or)) Warrants to pay the costs of such extraordinary maintenance may be issued and sold at one time or from time to time and in such series and amounts as may be found practicable and as determined by the board.

          (((2) Notwithstanding subsection (1) of this section, such bonds and warrants may be issued and sold in accordance with chapter 39.46 RCW.))

 

        Sec. 31.  Section 6, chapter 131, Laws of 1917 and RCW 85.20.070 are each amended to read as follows:

          Whenever in any district reorganized under the provisions of this chapter any bonds issued prior to such reorganization shall become payable and the ((board of county commissioners shall determine that it will be for the best interests of the owners of a majority of the acreage of lands included in such district to issue refunding bonds and to levy an assessment, payable in ten or fifteen years, instead of levying the annual assessments required by law to be levied to liquidate such outstanding bonds, they may levy such assessment and fix the time for the payment thereof at either ten or fifteen years, and fix the installments in which such assessment shall be paid as provided for the payment of assessments for the costs of construction under the provisions of chapter 176 of the Laws of 1913, and acts amendatory thereof; and they may issue refunding bonds of the district in the manner thereinafter provided, to provide funds with which to pay such outstanding bonds then payable)) county legislative authority determines that it is in the interest of the property owners of the district to have refunding bonds issued, the county legislative authority may authorize the district to issue refunding bonds in accordance with chapter 85.38 RCW.

 

        Sec. 32.  Section 11, chapter 131, Laws of 1917 and RCW 85.20.120 are each amended to read as follows:

          Upon the expiration of thirty days from the first publication of the notice given by the treasurer as provided herein, the ((board of county commissioners)) county legislative authority of the county in which all or the major part of the district is located may issue and sell refunding bonds of the district((, payable as determined by them in their resolution, in the manner provided for the issuance of bonds to pay the costs of construction in drainage improvement districts; and all the provisions of law governing the issuance, sale and payment of such bonds shall govern the issuance, sale and payment of the bonds herein provided for)) subject to chapter 85.38 RCW.

 

        Sec. 33.  Section 6, chapter 182, Laws of 1933 and RCW 85.22.060 are each amended to read as follows:

          Whenever in any district reorganized under the provisions of this chapter any bonds issued prior to such reorganization shall become payable and the ((board of county commissioners shall determine that it will be for the best interests of the owners of a majority of the acreage of lands included in such district to issue refunding bonds and to levy an assessment, payable in ten or fifteen years, instead of levying the annual assessments required by law to be levied to liquidate such outstanding bonds, they may levy such assessment and fix the time for the payment thereof at either ten or fifteen years, and fix the installments in which such assessment shall be paid as provided for the payment of assessments for the costs of construction under the provisions of chapter 176 of the Laws of 1913, and acts amendatory thereof; and they may issue refunding bonds of the district in the manner thereinafter provided, to provide funds with which to pay such outstanding bonds then payable)) county legislative authority determines that it is in the interest of the property owners of the district to have refunding bonds issued, the county legislative authority may authorize the district to issue refunding bonds in accordance with chapter 85.38 RCW.

 

        Sec. 34.  Section 17, chapter 225, Laws of 1909 as amended by section 199, chapter 167, Laws of 1983 and RCW 85.24.160 are each amended to read as follows:

          The owner of any lot or parcel of land charged with any assessment, as hereinbefore provided, may redeem the same from all liability by paying the entire assessment charged against such lot or parcel of land, or part thereof, without interest, within thirty days after notice to him of such assessment, as herein provided((, or may redeem same any time after the bonds authorized in RCW 85.24.230 shall have been issued by paying the full amount of all the principal and interest to the end of the interest year then expiring or next to expire.  The board shall pay the interest on the bonds authorized to be issued under this chapter out of the respective local improvement funds, from which they are payable, and whenever there shall be sufficient money in any of such funds against which bonds have been issued under provisions of this chapter, over and above the amount necessary for the payment of interest on all unpaid bonds, and sufficient to pay the principal of one or more bonds, the board shall call in and pay such bond:  PROVIDED, Said bonds shall be called in and paid in their numerical order:  PROVIDED FURTHER, That such call shall be made by publication in one or more newspapers on the day following the delinquencies of the installment of the assessment, or as soon thereafter as practicable and shall state that bonds Nos. ..... (giving serial number and numbers of the bonds called) will be paid on the day the interest payments on such bonds shall become due, and interest upon such bonds shall cease upon such date)).

 

        Sec. 35.  Section 15, chapter 131, Laws of 1961 and RCW 85.32.140 are each amended to read as follows:

          Any district choosing to operate under this chapter shall not use the processes provided for raising revenue under any other law:  PROVIDED, That if for any reason it is deemed more just and advisable by the board, any such other method or process for raising revenue as provided by law may be used concurrently against properties solely within the territorial limits of the district for the sole purpose of extinguishing indebtedness incurred before the district adopts the procedure of this chapter, in which event no funds raised under this chapter shall be used to pay such prior indebtedness.  However, when a drainage district issues special assessment bonds or notes after June 1, 1986, the process of raising revenue related to the bonds or notes shall be as specified in chapter 85.38 RCW.

 

        Sec. 36.  Section 53, chapter 72, Laws of 1937 and RCW 86.09.157 are each amended to read as follows:

          Said flood control districts shall also have authority to issue and sell special assessment bonds or notes of the district ((payable partially or exclusively from the income derived from said tolls above mentioned, as in this chapter provided)) in accordance with chapter 85.38 RCW.

 

        Sec. 37.  Section 2, chapter 396, Laws of 1985 and RCW 85.38.010 are each amended to read as follows:

          Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter:

          (1) "Governing body" means the board of commissioners, board of supervisors, or board of directors of a special district.

          (2) "Owner of land" means the record owner of at least a majority ownership interest in a separate and legally created lot or parcel of land, as determined by the records of the county auditor, except that if the lot or parcel has been sold under a real estate contract, the vendee or grantee shall be deemed to be the owner of such land for purposes of authorizing voting rights.  It is assumed, unless shown otherwise, that the name appearing as the owner of property on the property tax rolls is the current owner.

          (3) "Qualified voter of a special district" means a person who is either:  (a) A natural person who is a voter under general state election laws, registered to vote in the state of Washington for a period of not less than sixty days before the election, and the owner of land located in the special district for a period of not less than sixty days before the election; ((or)) (b) a corporation or partnership that has owned land located in the special district for a period of not less than sixty days before the election; or (c) the state, its agencies or political subdivisions that own land in the special district or lands proposed to be annexed into the special district except that the state, its agencies and political subdivisions shall not be eligible to vote to elect a member of the governing board of a special district.  If land is owned as community property, both spouses may vote if otherwise qualified.  If other multiple undivided interests exist in a lot or parcel, and no person owns a majority undivided interest, the owners of undivided interests at least equal to a majority interest may designate in writing which owner is eligible to vote.  A corporation ((or)), partnership or governmental entity shall designate a natural person to exercise its voting powers.  Except as provided in RCW 85.05.015 and 86.09.377, no owner of land may cast more than one vote, or have more than one vote cast for it, in a special district election.

          (4) "Special district" means:  (a) A diking district; (b) a drainage district; (c) a diking, drainage, and/or sewerage improvement district; (d) an intercounty diking and drainage district; (e) a consolidated diking district, drainage district, diking improvement district, and/or drainage improvement district; or (f) a flood control district.

          (5) "Special district general election" means the election of a special district regularly held on the second Tuesday of December in each odd-numbered year at which a member of the special district governing body is regularly elected.

 

        Sec. 38.  Section 8, chapter 396, Laws of 1985 and RCW 85.38.070 are each amended to read as follows:

          (1) Except as provided in RCW 85.38.090, each special district shall be governed by a three-member governing ((board)) body.  The term of office for each member of a special district governing body shall be six years and until his or her successor is elected and qualified.  One member of the governing body shall be elected at the time of special district general elections ind, each odd-numbered year for a term of six years beginning as provided in RCW 29.04.170 for assumption of office by elected officials of cities.

          (2) The terms of office of members of the governing bodies of special districts, who are holding office on July 28, 1985, shall be altered to provide staggered six-year terms as provided in this subsection.  The member who on July 28, 1985, has the longest term remaining shall have his or her term altered so that the position will be filled at the December, 1991, special district general election; the member with the second longest term remaining shall have his or her term altered so that the position will be filled at the December, 1989, special district general election; and the member with the third longest term of office shall have his or her term altered so that the position will be filled at the December, 1987, special district general election.

          (3) The initial members of the governing body of a newly created special district shall be appointed by the legislative authority of the county within which the special district, or the largest portion of the special district, is located.  These initial governing body members shall serve until their successors are elected and qualified at the next special district general election held at least ninety days after the special district is established.  At that election the first elected members of the governing body shall be elected.  No primary elections may be held.  Any voter of a special district may become a candidate for such a position by filing written notice of this intention with the governing body of the special district at least thirty, but not more than sixty, days before a special district general election.  The names of all candidates for such positions shall be listed alphabetically.  At this first election, the candidate receiving the greatest number of votes shall have a six-year term, the candidate receiving the second greatest number of votes shall have a four-year term, and the candidate receiving the third greatest number of votes shall have a two-year term of office.  The initially elected members of a governing body shall take office immediately when qualified as defined in RCW 29.01.135.  Thereafter the candidate receiving the greatest number of votes shall be elected for a six-year term of office.  Members of a governing body shall hold their office until their successors are elected and qualified, and assume office as provided in RCW 29.04.170.

          (4) Whenever a vacancy occurs in the governing body of a special district, the legislative authority of the county within which the special district, or the largest portion of the special district, is located, shall appoint a district voter to serve the remaining term of office.  A vacancy occurs upon the death, resignation, or incapacity of a governing body member or whenever the governing body member ceases being a qualified voter of the special district.

          (5) An elected or appointed member of a special district governing body must be a qualified voter of the special district:  PROVIDED, That the state, its agencies and political subdivisions, or their designees under RCW 85.38.010(3) shall not be eligible for election or appointment.

 

        Sec. 39.  Section 144, chapter 72, Laws of 1937 and RCW 86.09.430 are each amended to read as follows:

          Said notice of hearing on said determination of assessment ratios shall state that the base assessment map designating the classes in which the lands in the district have been placed for assessment purposes on the ratios authorized by law, has been prepared by the board of appraisers and is on file at the office of the district board and may be inspected at any time during office hours; that a hearing on said map will be held before the ((state supervisor of flood control)) county legislative authority at the office of the district board on .......... , the ..... day of .......... ,  .......... , at the hour of .......... o'clock (naming the time), where any person may appear and present such objections, if any, he may have to said map, and shall be signed by the secretary of the district.

 

        Sec. 40.  Section 147, chapter 72, Laws of 1937 and RCW 86.09.439 are each amended to read as follows:

          Upon the signing of said order by said ((state supervisor)) county legislative authority and the attachment of the same to said base assessment map, said base assessment map and all things set out on the face thereof shall be conclusive in all things upon all parties, unless appealed from to the superior court in the manner and within the time herein provided.

 

        Sec. 41.  Section 188, chapter 72, Laws of 1937 as amended by section 202, chapter 167, Laws of 1983 and RCW 86.09.562 are each amended to read as follows:

          Said county treasurer shall pay out the moneys received or deposited with him or any portion thereof upon warrants issued by the county auditor of the same county of which the district treasurer is an officer against the proper funds of the district except the sums to be paid out of the ((bond)) special funds for interest and principal payments on bonds or notes.

 

        Sec. 42.  Section 23, chapter 176, Laws of 1913 as last amended by section 46, chapter 396, Laws of 1985 and RCW 85.08.320 are each amended to read as follows:

          The compensation of the superintendent of construction, the board of appraisers hereinafter provided for, and any special engineer, attorney or agent employed by the district in connection with the improvement, the maximum wages to be paid, and the maximum price of materials to be used, shall be fixed by the district board of supervisors.  The compensation for members of the board of supervisors shall be ((fixed by the county legislative authority)) at a rate not to exceed twenty-five dollars for attending official meetings of the district and for each day or major part thereof for all necessary services actually performed in connection with their duties as supervisors.  Each supervisor shall be entitled to reimbursement for reasonable expenses actually incurred in connection with business, including subsistence and lodging while away from the supervisor's place of residence and mileage for use of a privately owned vehicle in accordance with chapter 42.24 RCW.  Each member of the county legislative authority, except in counties of the first class, shall receive pay at the rate of four dollars per day for the number of days he is engaged in the performance of any duty under this chapter, which sum shall be additional to his salary in case he receive an annual salary; and none of the statutory provisions limiting the number of days that a member of the county legislative authority shall draw pay for or limiting the number of sessions for attendance upon which he shall be entitled to mileage shall apply to any proceedings under this chapter.  All officers and members of boards performing duties under this chapter shall receive in addition to their fees or salaries their actual necessary expenses incurred in the performance of their duties hereinunder.  All costs of construction or maintenance done under the direction of the board of supervisors shall be paid upon vouchers or payrolls verified by two of the said supervisors.  All costs of construction and all other expenses, fees and charges on account of such improvement shall be paid by warrants drawn by the county auditor upon the county treasurer upon the proper fund, and shall draw interest at a rate determined by the county legislative authority until paid or called by the county treasurer as warrants of the county are called.

          If at the hearing provided for in RCW ((85.08.160)) 85.38.040 the county legislative authority shall determine that bonds shall be issued to pay the costs of the improvement or warrants sold to procure funds with which to pay such cost, as therein provided, temporary warrants may be issued for any part or all of such costs, expenses, fees, and charges, and shall be paid in cash upon the issuance and sale of such bonds, or shall be exchanged for an equal amount par value of such bonds.  All such temporary warrants shall recite that they are temporary warrants and that they draw interest until called to be paid in cash or to be exchanged for bonds.  All warrants issued under the provisions of this chapter and sold by the county legislative authority, or issued to any contractor and by him sold or hypothecated for a valuable consideration, shall be claims and liens against the fund against which they are drawn, prior and superior to any right, lien or claim of any surety upon any bond or bonds given to secure the performance of the contract or to secure the payment of persons who have performed work thereon, furnished materials therefor or provisions and supplies for the carrying on of the work.

 

          NEW SECTION.  Sec. 43.  The following acts or parts of acts are each repealed:

                   (1) Section 29, chapter 117, Laws of 1895, section 1, chapter 87, Laws of 1921, section 177, chapter 167, Laws of 1983 and RCW 85.05.290;

          (2) Section 30, chapter 117, Laws of 1895, section 43, chapter 232, Laws of 1969 ex. sess., section 87, chapter 56, Laws of 1970 ex. sess., section 178, chapter 167, Laws of 1983 and RCW 85.05.300;

          (3) Section 31, chapter 117, Laws of 1895 and RCW 85.05.310;

          (4) Section 32, chapter 117, Laws of 1895 and RCW 85.05.320;

          (5) Section 33, chapter 117, Laws of 1895 and RCW 85.05.330;

          (6) Section 34, chapter 117, Laws of 1895, section 179, chapter 167, Laws of 1983 and RCW 85.05.340;

          (7) Section 1, chapter 156, Laws of 1913, section 50, chapter 232, Laws of 1969 ex. sess., section 88, chapter 56, Laws of 1970 ex. sess., section 180, chapter 167, Laws of 1983 and RCW 85.05.480;

          (8) Section 1, chapter 69, Laws of 1925 ex. sess., section 181, chapter 167, Laws of 1983 and RCW 85.05.510;

          (9) Section 2, chapter 69, Laws of 1925 ex. sess., section 21, chapter 156, Laws of 1981, section 182, chapter 167, Laws of 1983 and RCW 85.05.520;

          (10) Section 3, chapter 69, Laws of 1925 ex. sess., section 183, chapter 167, Laws of 1983 and RCW 85.05.530;

          (11) Section 17, chapter 115, Laws of 1895 and RCW 85.06.170;

          (12) Section 26, chapter 115, Laws of 1895, section 184, chapter 167, Laws of 1983 and RCW 85.06.260;

          (13) Section 27, chapter 115, Laws of 1895, section 51, chapter 232, Laws of 1969 ex. sess., section 89, chapter 56, Laws of 1970 ex. sess., section 185, chapter 167, Laws of 1983 and RCW 85.06.270;

          (14) Section 28, chapter 115, Laws of 1895 and RCW 85.06.280;

          (15) Section 29, chapter 115, Laws of 1895 and RCW 85.06.290;

          (16) Section 30, chapter 115, Laws of 1895 and RCW 85.06.300;

          (17) Section 31, chapter 115, Laws of 1895, section 186, chapter 167, Laws of 1983 and RCW 85.06.310;

          (18) Section 1, part, chapter 174, Laws of 1927, section 52, chapter 232, Laws of 1969 ex. sess., section 90, chapter 56, Laws of 1970 ex. sess., section 187, chapter 167, Laws of 1983 and RCW 85.06.321;

          (19) Section 1, part, chapter 174, Laws of 1927 and RCW 85.06.322;

          (20) Section 1, part, chapter 174, Laws of 1927 and RCW 85.06.323;

          (21) Section 1, part, chapter 174, Laws of 1927, section 22, chapter 156, Laws of 1981 and RCW 85.06.324;

          (22) Section 1, part, chapter 174, Laws of 1927 and RCW 85.06.325;

          (23) Section 1, part, chapter 174, Laws of 1927 and RCW 85.06.326;

          (24) Section 1, part, chapter 174, Laws of 1927, section 188, chapter 167, Laws of 1983 and RCW 85.06.327;

          (25) Section 1, part, chapter 174, Laws of 1927 and RCW 85.06.328;

          (26) Section 1, part, chapter 174, Laws of 1927 and RCW 85.06.329;

          (27) Section 17, chapter 176, Laws of 1913, section 23, chapter 130, Laws of 1917, section 7, chapter 46, Laws of 1923, section 1, chapter 302, Laws of 1927, section 1, chapter 125, Laws of 1933, section 193, chapter 167, Laws of 1983 and RCW 85.08.240;

          (28) Section 18, chapter 176, Laws of 1913, section 24, chapter 130, Laws of 1917, section 194, chapter 167, Laws of 1983 and RCW 85.08.280;

          (29) Section 1, chapter 211, Laws of 1929, section 1, chapter 22, Laws of 1933, section 1, chapter 38, Laws of 1933 ex. sess., section 196, chapter 167, Laws of 1983 and RCW 85.09.010;

          (30) Section 2, chapter 211, Laws of 1929, section 2, chapter 22, Laws of 1933 and RCW 85.09.020;

          (31) Section 3, chapter 211, Laws of 1929 and RCW 85.09.030;

          (32) Section 4, chapter 211, Laws of 1929 and RCW 85.09.040;

          (33) Section 5, chapter 211, Laws of 1929, section 3, chapter 22, Laws of 1933 and RCW 85.09.050;

          (34) Section 6, chapter 211, Laws of 1929, section 4, chapter 22, Laws of 1933 and RCW 85.09.060;

          (35) Section 7, chapter 211, Laws of 1929, section 5, chapter 22, Laws of 1933 and RCW 85.09.070;

          (36) Section 8, chapter 211, Laws of 1929, section 6, chapter 22, Laws of 1933 and RCW 85.09.080;

          (37) Section 9, chapter 211, Laws of 1929, section 7, chapter 22, Laws of 1933 and RCW 85.09.090;

          (38) Section 8, chapter 22, Laws of 1933 and RCW 85.09.900;

          (39) Section 7, chapter 131, Laws of 1917 and RCW 85.20.080;

          (40) Section 8, chapter 131, Laws of 1917, section 78, chapter 469, Laws of 1985 and RCW 85.20.090;

          (41) Section 9, chapter 131, Laws of 1917 and RCW 85.20.100;

          (42) Section 10, chapter 131, Laws of 1917 and RCW 85.20.110;

          (43) Section 11, chapter 131, Laws of 1917 and RCW 85.20.120;

          (44) Section 12, chapter 131, Laws of 1917 and RCW 85.20.130;

          (45) Section 7, chapter 182, Laws of 1933, section 52, chapter 396, Laws of 1985 and RCW 85.22.070;

          (46) Section 8, chapter 182, Laws of 1933, section 80, chapter 469, Laws of 1985 and RCW 85.22.080;

          (47) Section 9, chapter 182, Laws of 1933 and RCW 85.22.090;

          (48) Section 10, chapter 182, Laws of 1933 and RCW 85.22.100;

          (49) Section 11, chapter 182, Laws of 1933 and RCW 85.22.110;

          (50) Section 12, chapter 182, Laws of 1933 and RCW 85.22.120;

          (51) Section 16, chapter 225, Laws of 1909, section 5, chapter 140, Laws of 1923, section 27, chapter 156, Laws of 1981, section 200, chapter 167, Laws of 1983 and RCW 85.24.230;

          (52) Section 190, chapter 72, Laws of 1937, section 76, chapter 396, Laws of 1985 and RCW 86.09.568;

          (53) Section 191, chapter 72, Laws of 1937, section 203, chapter 167, Laws of 1983 and RCW 86.09.571;

          (54) Section 192, chapter 72, Laws of 1937 and RCW 86.09.574;

          (55) Section 193, chapter 72, Laws of 1937, section 77, chapter 396, Laws of 1985 and RCW 86.09.577;

          (56) Section 194, chapter 72, Laws of 1937, section 44, chapter 232, Laws of 1969 ex. sess., section 93, chapter 56, Laws of 1970 ex. sess., section 204, chapter 167, Laws of 1983 and RCW 86.09.580;

          (57) Section 195, chapter 72, Laws of 1937, section 205, chapter 167, Laws of 1983 and RCW 86.09.583;

          (58) Section 196, chapter 72, Laws of 1937, section 206, chapter 167, Laws of 1983 and RCW 86.09.586;

          (59) Section 197, chapter 72, Laws of 1937 and RCW 86.09.589;

          (60) Section 202, chapter 72, Laws of 1937, section 208, chapter 167, Laws of 1983, section 80, chapter 396, Laws of 1985 and RCW 86.09.604;

          (61) Section 203, chapter 72, Laws of 1937, section 209, chapter 167, Laws of 1983, section 81, chapter 396, Laws of 1985 and RCW 86.09.607;

          (62) Section 204, chapter 72, Laws of 1937, section 82, chapter 396, Laws of 1985 and RCW 86.09.610; and

          (63) Section 205, chapter 72, Laws of 1937, section 210, chapter 167, Laws of 1983 and RCW 86.09.613.

 

          NEW SECTION.  Sec. 44.  The following acts or parts of acts are each repealed:

                   (1) Section 1, chapter 43, Laws of 1913, section 69, chapter 469, Laws of 1985 and RCW 85.05.560;

          (2) Section 2, chapter 43, Laws of 1913 and RCW 85.05.570;

          (3) Section 3, chapter 43, Laws of 1913, section 40, chapter 396, Laws of 1985 and RCW 85.05.580;

          (4) Section 4, chapter 43, Laws of 1913 and RCW 85.05.590;

          (5) Section 5, chapter 43, Laws of 1913 and RCW 85.05.600;

          (6) Section 1, chapter 42, Laws of 1913 and RCW 85.06.510;

          (7) Section 2, chapter 42, Laws of 1913 and RCW 85.06.520;

          (8) Section 3, chapter 42, Laws of 1913 and RCW 85.06.530;

          (9) Section 4, chapter 42, Laws of 1913 and RCW 85.06.540;

          (10) Section 1, chapter 165, Laws of 1907, section 1, chapter 14, Laws of 1915, section 73, chapter 469, Laws of 1985 and RCW 85.07.020;

          (11) Section 2, chapter 165, Laws of 1907 and RCW 85.07.030;

          (12) Section 1, chapter 130, Laws of 1917, section 14, chapter 46, Laws of 1923 and RCW 85.08.580;

          (13) Section 2, chapter 130, Laws of 1917 and RCW 85.08.590;

          (14) Section 3, chapter 130, Laws of 1917, section 15, chapter 46, Laws of 1923 and RCW 85.08.600;

          (15) Section 4, chapter 130, Laws of 1917, section 47, chapter 396, Laws of 1985 and RCW 85.08.610;

          (16) Section 5, chapter 130, Laws of 1917 and RCW 85.08.620;

          (17) Section 6, chapter 130, Laws of 1917 and RCW 85.08.625;

          (18) Section 2, chapter 154, Laws of 1967, section 55, chapter 396, Laws of 1985 and RCW 85.36.010;

          (19) Section 3, chapter 154, Laws of 1967 and RCW 85.36.020; and

          (20) Section 4, chapter 154, Laws of 1967, section 128, chapter 195, Laws of 1973 1st ex. sess. and RCW 85.36.030.

 

          NEW SECTION.  Sec. 45.  The following acts or parts of acts are each repealed:

                   (1) Section 208, chapter 72, Laws of 1937, section 83, chapter 396, Laws of 1985 and RCW 86.09.622; and

          (2) Section 209, chapter 72, Laws of 1937, section 84, chapter 396, Laws of 1985 and RCW 86.09.625.

 

          NEW SECTION.  Sec. 46.    Sections 3, 12, and 45 of this act are necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect immediately.

 

          NEW SECTION.  Sec. 47.    If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.