H-4396.1          _______________________________________________

                                  HOUSE BILL 2973

                  _______________________________________________

State of Washington              52nd Legislature             1992 Regular Session

By Representative Haugen

Read first time 02/07/92.  Referred to Committee on Local Government.Affecting withdrawal of territory by special districts.

     AN ACT Relating to special districts; amending RCW 85.22.010; adding a new sections to chapter 85.38 RCW; and repealing RCW 85.07.080.

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

     Sec. 1.  RCW 85.22.010 and 1933 c 182 s 1 are each amended to read as follows:

     Any diking district ((organized under the provisions of chapter CXVII (117) of the Laws of 1895, and the acts amendatory thereof, which has been reorganized under the provisions of chapter 131 of the Laws of 1917, and the acts amendatory thereof, and any)); drainage district ((organized under the provisions of chapter CXV (115) of the Laws of 1895, and the acts amendatory thereof, whether the same has been organized as a drainage and irrigation improvement district or as a drainage district,)); irrigation district; intercounty diking and drainage district; diking, drainage, and/or sewerage improvement district; consolidated diking district, drainage district, diking improvement district, and/or drainage improvement district; or flood control district may reorganize as a drainage and irrigation improvement district or as a diking, drainage and irrigation improvement district in the manner provided in this chapter.

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

     A special district may withdraw area from its boundaries that is located within the boundaries of a city or town, or area that includes area both within and adjacent to the boundaries of any city or town, under this section.

     (1) The withdrawal of area is authorized upon the following conditions being met:  (a) Adoption of a resolution by the special district requesting withdrawal of the area from the district; (b) adoption of a resolution by the city or town council approving the withdrawal of the special district from the area; (c) assumption by the city or town of full responsibility for the maintenance, improvements, and collection of payment for the operation of the system previously operated by the special district in the area; (d) transfer by the special district of all rights-of-way or easements in the area to the city or town by quit claim or deed; and (e) adoption of an interlocal agreement between the special district and the city or town that reimburses the special district for lost assessment revenue from the withdrawn area, that transfers any facilities or improvements owned by the special district to the city or town as agreed between the parties, and that requires the city or town to maintain existing water run-off and water quality levels in the area.

     (2) Property in the territory withdrawn from the boundaries of a special district under this section shall remain liable for any special assessments of the special district from which it was withdrawn, if the special assessments are associated with bonds or notes used to finance facilities serving the property, to the same extent as if the withdrawal of property had not occurred.

NEW SECTION. Sec. 3.      RCW 85.07.080 and 1983 c 167 s 191 and 1935 c 103 s 3 are each repealed.