FINAL BILL REPORT

SHB 1012

                                  C 292 L 87

BYHouse Committee on Local Government (originally sponsored by Representatives Hargrove and Fisch)

Changing provisions relating to the annexation of areas by public utility districts.

House Committe on Local Government

Senate Committee on Energy & Utilities

SYNOPSIS AS ENACTED

BACKGROUND:

Public utility districts (PUD's) are authorized to be incorporated in all or part of a county.

A PUD may annex territory contiguous to a portion of its boundaries if the territory was not located in another PUD and if the territory was located within the annexing PUD's electrical service area by following the petition/election, resolution/election, or direct petition procedures by which cities annex contiguous territory.  This contiguous area may be located in the same or a different county as the annexing PUD.

SUMMARY:

The law authorizing a public utility district (PUD) to annex contiguous territory that is in the PUD's electrical service area is altered:

The territory to be annexed must have been located within the annexing PUD's electrical service area on January 1, 1987;

An area located in another PUD may be annexed by a PUD and removed from this other PUD under the petition/election method of annexation if both boards of commissioners adopt identical resolutions stating:  (1) the boundaries of the area to be annexed; (2) that the annexation is in the public interest of both the residents of the area and the residents of both districts; (3) their approval of the action; (4) the boundaries of both PUD's after the annexation; (5) the disposition of any assets of the districts in the area; (6) the obligations to be assumed by the annexing district; (7) the apportionment of the election costs, and (8) that the voters of the area must be advised of possible lawsuits that may impose liability on the annexed territory and the possible impact of the annexation on taxes and utility rates.

The ability to annex territory under the direct petition method is removed.

The PUD annexing the area must assume responsibility to provide the area with services that were provided in the area by the PUD from which it is being withdrawn.

When territory is annexed by a PUD, the county officials of the county within which the annexing PUD is located must coordinate the duties of county officials in other counties as these duties relate to the PUD.

The possibility of a PUD including territory in more than one county is recognized for purposes of creating PUD commissioner districts.

VOTES ON FINAL PASSAGE:

      House 98   0

      Senate    49     0(Senate amended)

      House 96   0(House concurred)

EFFECTIVE:July 26, 1987