HOUSE BILL REPORT

                 SSB 6205

             As Reported By House Committee On:

                    Government Operations

Title:  An act relating to new counties.

Brief Description:  Providing procedures for creating new counties.

Sponsors:  Senate Committee on Government Operations (originally sponsored by Senators Haugen, Winsley, Quigley and Long).

Brief History:

  Committee Activity:

Government Operations:  2/21/96, 2/23/96 [DPA].

HOUSE COMMITTEE ON GOVERNMENT OPERATIONS

Majority Report:  Do pass as amended.  Signed by 15 members:  Representatives Reams, Chairman; Cairnes, Vice Chairman; Goldsmith, Vice Chairman; Rust, Ranking Minority Member; Scott, Assistant Ranking Minority Member; Conway; R. Fisher; Hargrove; Honeyford; Hymes; Mulliken; Scheuerman; D. Schmidt; Van Luven and Wolfe.

Staff:  Steve Lundin (786-7127).

Background:  Under constitutional provisions the procedure to create a new county involves the following steps:

!A petition proposing the creation of the new county must be signed by at least a majority of the voters residing in the portion of each county that is proposed to be included in the new county;

!Special legislation is enacted by the Legislature creating the new county, defining the boundaries of the new county, and altering the boundaries of the parent county or counties out of which territory was removed to create the new county; and

!Any other requirements that are established in general laws.

The population of a new county must be at least 2,000, and the population of a parent county from which territory is removed to create the new county may not be reduced to less than 4,000.  The territory removed from a county to create a new county is liable for a just proportion of the existing debts and liabilities of the county from which the territory was taken.

Very few general laws have been enacted relating to the creation of a new county.  These provisions relate to the distribution of the parent county's debts and liabilities between the new county and what remains of the parent county.  The auditors of the parent county and new county meet and attempt to agree upon the allocation of the parent county's liabilities.  If they cannot agree, then a third person is called to decide.  The property taxes of the parent county that are imposed, but not collected, are to be apportioned between the parent county and new county on the basis of the assessed valuation of property.

Summary of Amended Bill:  The process for creating a new county is clarified and new procedures are established.

Petition Requirements.  A petition proposing the new county must request the creation of the new county, include a description of the new county, and in addition to the signature of each petitioner include the printed name and address.  After January 1, 1997, petition signatures must be dated and must have been affixed within two years of submission of the petitions to the Secretary of State.

Filing and Validation of Petitions. A petition to create a new county is filed with the Secretary of State together with the names of up to five proponents who are the contact persons for the Secretary of State and county auditors.  Upon receipt of the petition, the Secretary of State forwards copies to the appropriate county auditor for validation of individual signatures and for certification of the number required to meet constitutional requirements.  Provisions are made for challenges over the determination of signature sufficiency, which are to be filed in the Thurston County Superior Court.

It is declared that the constitutional signature requirement on a petition proposing the creation of a new county is for the petition to be signed by registered voters residing in each portion of a county that is stricken to create the new county equal in number to at least one more than 50 percent of the number of votes cast for the office of Governor by voters residing in that area at the last regular gubernatorial election.

The Secretary of State must also request the Office of Financial Management to certify the population of the proposed new county and of the remnant parent county.

If the petitions do not have sufficient valid signatures, additional signatures may be collected and filed over a 90-day period.  The new signatures are reviewed using the same process.  If there still are insufficient valid signatures, the Secretary of State notifies the appropriate county auditors and the proponents of the new county.

If the petitions have sufficient valid signatures, the Secretary of State notifies the Legislature and requests special legislation to create the new county.

Special Legislation and Election. The Legislature may enact special legislation creating the new county subject to a vote of the residents of the proposed new county.  The special legislation must provide for the boundaries of the new county, must provide for a court system, must provide for financing the transition and establishment of the government of the new county, must designate the elected offices, and may provide any special requirements or standards for apportioning debts and assets or for the election creating the new county.

A new county must consist of a single contiguous area of land and water.

The Legislature shall request the Department of Community, Trade and Economic Development to prepare and file a report detailing the potential revenues and expenses of a proposed new county and the remnant parent county or counties.

If the Legislature enacts special legislation authorizing the creation of a new county, a ballot proposition to approve the creation of the new county is submitted to the voters of the proposed new county.  The ballot proposition is submitted at the next general election more than 60 days following the effective date of the special legislation.  The new county is created if the ballot proposition is approved by a simple majority vote of those who vote on the proposition and who reside in the proposed new county.

Interim transition period.  If voters approve the ballot proposition, a transition period follows, during which the initial officers of the new county are elected and the new county is organized.

The auditor or auditors of the county or counties from which territory is stricken to create the new county provide for the election of the initial officers of the new county.  A special filing period is opened for persons to file for the new county offices.  A primary is held to nominate candidates for these positions at the February special election date, in the year following the general election at which the new county was approved.  The initial officers are elected at the immediately following April special election date and assume office immediately upon certification of the election results.

After the initial county officials assume office, they adopt ordinances and budgets, provide for the assessment of taxes, and otherwise prepare for operations of the new county to commence at the end of the interim period.  The new county is officially created on January 1 in the year following the election of the initial county officials.  The term of office of all the initial county officials, other than the commissioner for position No. 3, are from the date of their election until the end of the next year in which the Governor is elected.  The term of office for the initial commissioner for position No. 3 is from the date of his or her election until the end of the next year that is two years prior to the year in which the governor is elected.  Thereafter, county officials are elected to four-year terms of office.

Distribution of Debts, Liabilities and Assets. During the interim transition period, the county auditors for the new county and each remnant parent county meet and negotiate an agreement apportioning the debts, liabilities, and assets of the parent county between the new county and the remnant parent county.  Real property is apportioned to the county in which it is located.  Existing debts associated with the purchase of county property or the construction of public buildings are apportioned to the county in which the property is located.

Road equipment owned by the parent county is apportioned between the parent county and the new county, so that the new county receives road equipment in the same proportion as the miles of county road from the parent county ceded to the new county is to the total miles of county roads in the parent county prior to the creation of the new county.  All other assets of the parent county are apportioned between the parent county and the new county, so that the new county receives assets in the same proportion as the assessed valuation of the new county from the parent county is to the total assessed valuation of the parent county prior to the creation of the new county.

If agreement cannot be reached within 90 days, either auditor may petition the state Court of Appeals to make a just apportionment.  The division of the Court of Appeals in which the largest population of the new county is resident has jurisdiction.  The Court of Appeals is authorized to appoint a special master who, in turn, may employ such professionals as may be required to assist the master in evaluating and recommending a just apportionment.  The Court of Appeals issues an order making a just apportionment, and that order is final.

Special Districts. Special districts are retained in the new county as if the new county is not created.  However, the road district or districts in the parent county or counties are altered to remove territory that is removed from the parent county or counties and included in the new county.

Court Jurisdiction.  All cases pending in the courts of the parent county involving residents or property of the new county remain in the courts of the parent county unless all parties stipulate to a change of venue.

Amended Bill Compared to Substitute Bill:  (1) Language was deleted providing that the Legislature may alter the boundaries of the proposed new county.  (2) Language was deleted providing that if a ballot proposition authorizing the creation of a new county is defeated, another ballot proposition to create another new county including any of the prior area may not be submitted to voters for at least four years.  (3) A process to challenge a determination of the sufficiency of signatures on a petition was added.  (4) Language was added to describe what the constitutionally required signature requirement is on petitions proposing a new county.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date of Amended Bill:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  The people should be able to vote.  This is a very important measure.  This is a good road map for creating a new county.

Testimony Against:  None.

Testified:  Senator Mary Margaret Haugen, prime sponsor; Glen and Joan Vermilion; Les Abbenhouse; and Gary Lowe, Washington Association of Counties.