FINAL BILL REPORT

SB 5907

                              C 267 L 89

BYSenators Hansen, Barr and Benitz

Changing provisions relating to annexations and incorporations involving a portion of a fire protection district.

Senate Committee on Governmental Operations

House Committe on Local Government

SYNOPSIS AS ENACTED

BACKGROUND:

When a city or town annexes territory within a fire protection district, the district must often transfer some of its assets to the annexing city or town.  The same is true when a new city incorporates into fire protection district territory.  The transfer of assets reflects the new or increased fire suppression responsibilities the city or town has assumed.  The percentage of district assets that are transferred is dictated by a formula specified in statute.

A transfer of assets is not required in some circumstances.  The standards vary for annexations or incorporations of district territory by cities that have adopted the optional municipal code and annexations or incorporations of district territory by other classes of cities or towns.  No transfer of assets is required when less than 5 percent of the area of a district is annexed or incorporated by a city that has adopted the optional municipal code.  For other classes of cities and towns, no transfer is required when less than 5 percent of the assessed value of the real property of a district is annexed or incorporated.

SUMMARY:

If any city or town annexes or incorporates into less than 5 percent of the area of a fire protection district, no transfer of district assets to the city or town is required, except in a specified circumstance.  A transfer of assets will occur if the city or town adopts a resolution within 60 days of the annexation or incorporation finding that it will incur a significant increase in fire suppression responsibilities, with a corresponding reduction of district responsibilities, and the district concurs in the finding.  An agreement for the transfer of assets must be entered into within 90 days of the district's concurrence.  The agreement will take the increase and decrease of responsibilities into account, and will consider the impact of any debt obligation of the annexed or incorporated area.  If the district does not concur in the city or town's finding, or if an agreement is not reached within 90 days of the district's concurrence in the finding, the matter will be decided in arbitration.  The arbitrators will decide whether a significant increase and decrease in responsibilities occurred and, if so, the percentage of district assets that will be transferred to the city or town.

VOTES ON FINAL PASSAGE:

     Senate   45    0

     House 97  0 (House amended)

     Senate   43    1 (Senate concurred)

EFFECTIVE:July 23, 1989