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AN ACT Relating to new counties; amending RCW 36.09.010, 36.09.020, 36.09.035, 36.09.040, 36.09.050, and 84.09.030; adding new sections to chapter 36.09 RCW; adding a new section to chapter 47.01 RCW; adding a new section to chapter 36.57A RCW; creating new sections; and recodifying RCW 36.09.010, 36.09.020, 36.09.035, 36.09.040, and 36.09.050.

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

NEW SECTION. Sec. 1. PURPOSES. The purposes of this act are to: (1) Clarify the procedures under chapter 36.09 RCW and Article XI, section 3 of the state Constitution, by which new counties are created; (2) assist the legislature with its obligations under Article XI, section 3 of the state Constitution; and (3) provide for a just apportionment of the debts, liabilities, and assets of the parent county or counties between the new county and the remaining parent county or counties.

NEW SECTION. Sec. 2. DEFINITIONS. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Assets" means all: (a) Real estate owned by the parent county; (b) intangible personal property owned by the parent county, such as cash, securities, accounts receivable, leases, other monetary instruments, and surplus moneys held by the parent county on the last day of the interim period that are not allocated for a specific purpose; and (c) tangible personal property owned by the parent county, such as vehicles and office equipment.

(2) "Citizens' oversight committee" means a committee of citizens appointed by the county auditor of not less than three nor more than nine petitioners whose names have been submitted by the proponents to the county auditor of the parent county.

(3) "Interim period" means the period of transition when territory is stricken from a county or counties and included in a newly created county, commencing when the governor appoints two of the interim county commissioners and ending on the date the new county is officially created, as provided in the special legislation creating the new county.

(4) "New county" means the county that is created by striking territory from a parent county or counties as provided under Article XI, section 3 of the state Constitution.

(5) "Parent county or counties" means the existing county or counties out of which territory is stricken to create a new county.

(6) "Petitioner" means a signer of the new county petition who is deemed a valid signer of the petition by means of residence and voter registration.

(7) "Proponents" means the person or persons submitting the petitions for creation of a new county to the secretary of state who are named in the receipt for the petitions that is provided by the office of the secretary of state.

NEW SECTION. Sec. 3. PETITIONS PROPOSING THE CREATION OF A NEW COUNTY. (1) A petition proposing to create a new county must be signed by at least a majority of registered voters residing in the portion of each parent county that is proposed to be stricken and included in the new county.

(2) Proponents shall file petitions proposing the creation of a new county with the office of the secretary of state. The office of the secretary of state shall provide a written receipt to the proponents that lists the names of the proponents. A petition must include: (a) A prayer to create the new county and the name of the proposed new county; (b) a map of the proposed new county; (c) a legal description of the proposed new county; (d) a warning clause requiring the signer to be both a resident of the proposed new county and a registered voter, that they not sign the petition with other than their true name as registered, that they not knowingly sign more than one petition, and that they make no false statements; (e) identification of the proponents; and (f) lines and spaces for petitioners' signatures, printed names, street addresses, cities, and counties. A petition may include space for identifying the precinct in which a petitioner resides and the petitioner's phone number. Honoring the goodwill intent of the signature gathering process under this subsection and subsection (1) of this section, a new county petition circulated and differing from the information under this subsection is deemed acceptable as to these form requirements.

(3) The office of the secretary of state shall copy the petitions and forward a copy of the petitions to the county auditor of each parent county for validation and shall give a copy of the petitions to the proponents.

(4) The county auditor of each parent county shall review the petitions and validate or invalidate each petitioner's signature. The county auditor shall appoint a citizens' oversight committee to oversee the certification process. The auditor shall consider the signature of a petitioner valid if it is clearly the signature of a registered voter residing in a portion of the parent county that is proposed to be stricken from that county to create the new county. For any petitioner, a variation between the signature of the petitioner on the petition and that in the registration files due to the substitution of initials or the use of common nicknames is permitted so long as the surname and handwriting are clearly the same.

(5) The county auditor of each parent county shall review the signatures contained on the petitions. If the petition contains the valid signatures of at least a majority of the registered voters of the county residing in the territory proposed to be stricken from that county and included in the new county, the county auditor shall return the copy of the petitions to the secretary of state and certify both: (a) The number of registered voters residing within the territory of the parent county that is proposed to be stricken and included in the new county; and (b) the number of signatures on the petitions that are determined to be the valid signatures of registered voters residing within the territory in that parent county proposed to be stricken and included in the new county.

If the county auditor of a parent county from which territory is proposed to be stricken and included in the new county finds that the petitions do not contain sufficient valid signatures of registered voters residing in that territory, the county auditor shall notify the proponents of the number of additional valid signatures required to meet a majority of registered voters residing in the territory proposed to be stricken from that county and included in the new county. The proponents may file additional petitions proposing the creation of the new county with the secretary of state that contain additional signatures of registered voters residing in the territory proposed to be stricken from the county and included in the new county. The secretary of state shall copy the additional petitions and forward a copy to the proponents and the county auditor of each parent county for validation and shall give a copy of the petitions to the proponents. The county auditor shall review the signatures and, together with the prior petitions that were reviewed, certify the results to the secretary of state, as provided in this subsection.

The secretary of state shall certify whether the petitions contain sufficient valid signatures. If the petitions are certified as having sufficient valid signatures, the secretary of state shall provide written notice of the certification to the proponents, the chief clerk of the house of representatives, and the secretary of the senate.

NEW SECTION. Sec. 4. SPECIAL LEGISLATION TO CREATE A NEW COUNTY. If the secretary of state certifies to the legislature under section 3 of this act that petitions proposing the creation of a new county have been filed containing sufficient valid signatures, as authorized in Article II, section 28(15) of the state Constitution, the legislature may then enact special legislation striking territory from a county or counties and creating and organizing a new county.

The special legislation creating a new county must name the county, define the boundaries of the new county, redefine the boundaries of the parent county or counties to reflect the territory that is stricken to create the new county, specify a date when the new county is officially created, and declare the population of the new county that is determined by the office of financial management. RCW 84.09.030, establishing the boundaries of taxing districts for purposes of imposing property taxes, must be considered when specifying the date the new county is officially created.

The special legislation creating the new county must include a finding that the population of the new county, and the population or populations of the parent county or counties after the striking of territory to create the new county, and the number of valid signatures on the petitions, meet the population requirements and signature requirements established under Article XI, section 3 of the state Constitution.

NEW SECTION. Sec. 5. BOUNDARIES. (1) The special legislation creating a new county may not change the boundaries of the proposed new county, as specified in the petitions, except to correct clerical errors or uncertainties, which must not be appreciable or significant in scope, and as provided in subsection (2) of this section.

(2) The legislature may include additional territory in the proposed new county if the additional territory is adjacently located to any portion of the territory proposed to be included in the new county by the initial petitions and other petitions proposing the addition of this territory to the proposed new county are submitted to the secretary of state and certified by the secretary of state as having sufficient valid signatures. The additional territory that is proposed to be included may be located in the same parent county or counties, as in the initial petitions, or another county or counties. These other petitions must be signed by at least a majority of the registered voters residing in the additional territory described in the petition that is proposed to be stricken from a county and included in the new county. The review and certification of sufficiency of the signatures on these other petitions must follow the same process as the original petitions.

(3) A new county must include a single contiguous area and each parent county must include a single contiguous area after the creation of a new county.

NEW SECTION. Sec. 6. INTERIM OFFICERS. Within thirty days after the enactment of special legislation creating a new county, the governor shall appoint two petitioners to the positions of interim county commissioners for the new county. The petitioners who are appointed must be from a list of from five to ten names submitted to the governor by the proponents, who submitted to the secretary of state the largest number of signatures of petitions, within ten days after the enactment of the special legislation creating the new county. The two interim county commissioners who are appointed by the governor shall assume office immediately and, as a first order of business, shall appoint a third interim county commissioner who shall assume office immediately. The three interim county commissioners constitute the first board of county commissioners. Each of the interim county commissioners must have been a resident of the territory included in the new county for at least three years. The interim county commissioners shall remain in office until successors have been elected and qualified, as provided in section 9 of this act.

The interim board of county commissioners shall appoint all of the remaining county officials required by general law for a county with the population of the new county. These appointed county officials shall be interim officials and shall serve until successors have been elected and qualified, as provided in section 9 of this act.

The interim county commissioners and all other interim county officials must be appointed without regard to party affiliation.

NEW SECTION. Sec. 7. ANNUAL SALARIES. The director of the department of community, trade, and economic development shall designate the same annual salary for each of the interim county commissioners of a new county that will be payable on a monthly basis. The annual salary for each interim county commissioner must be the lowest annual salary that exists for a county commissioner in any of the four noncharter counties with the closet populations to the population of the new county.

The interim county commissioners shall establish annual salaries for other interim county officials at the time the appointments are made.

NEW SECTION. Sec. 8. COUNTY SEAT. (1) Within thirty days of the appointment of the third interim county commissioner, the interim board of county commissioners shall designate an initial county seat for the new county. The county voters shall make the selection of the permanent county seat at the first election of county officials under section 9 of this act.

(2) A city, town, or other commonly named area within the new county may be nominated as the permanent county seat in a petition that has been signed by at least one percent of the number of registered voters residing in the new county and filed with the interim county auditor during the filing period for candidates for the first elected county officials.

(3) The ballot proposition to select the county seat must list the names of the nominated cities, towns, and commonly named area alphabetically. Each voter may select a single nominee. The nominee receiving the most number of votes is the permanent county seat until removed under general law.

NEW SECTION. Sec. 9. ELECTION OF COUNTY OFFICIALS. (1) Within thirty days of when the third interim county commissioner is appointed, the interim board of county commissioners shall divide the county into three county commissioner districts and, where necessary, voting precincts. The voting precincts within the new county that a parent county created remain in effect until changed by the interim board of county commissioners. The interim board shall alter the boundaries of these voting precincts only as is necessitated by the removal of territory from the parent county or counties to create the new county. The newly created county commissioner districts must be used for the election of the first elected county commissioners and may not apply to the interim county commissioners.

(2) Each of the county elected official offices must be filled at the state general election held in the same year as the official date the new county is created if the official date is on or before the fifteenth day of June in a year, or at the state general election held in the year after the official date the new county is created if the county is created after the fifteenth day of June in a year. The election must be held in accordance with general election laws and a special filing period may be called if necessary. A primary must be held at the primary immediately preceding the state general election to nominate candidates for these offices.

The persons who are elected to every position other than a county commissioner must be elected to a four-year term of office if the state general election is held in an even-numbered year, or to a three-year term of office if the state general election is held in an odd-numbered year, and shall take office on the first day of January in the year following the election. Their successors must be elected to four-year terms of office.

The terms of office of the three persons who are elected as county commissioners must be staggered so that the two persons who are elected receiving the two largest numbers of votes are elected to four-year terms of office and the other person who is elected is elected to a two-year term of office if the election is held in an even-numbered year, or the two persons who are elected receiving the two largest numbers of votes are elected to three-year terms of office and the other person who is elected is elected to a one-year term of office if the election is held in an odd-numbered year. The persons who are first elected as county commissioners shall take office immediately when elected and qualified and their terms of office must be calculated from the first day in January in the year following their elections.

NEW SECTION. Sec. 10. SPECIAL DISTRICTS. The creation of a new county may not affect the boundaries of a city, town, or special district including, but not limited to, a fire protection district, school district, port district, public utility district, or public hospital district.

Unless the interim board of county commissioners provides otherwise, a single road district must exist in the new county composed of all the unincorporated area within the new county. Territory that is stricken from a parent county to create a new county must also be stricken from the road district or districts of the parent county effective on the official date of creating the new county.

An area in a new county that was included in a county rural library district must remain part of that county rural library district. The trustees of such a library district must be appointed by joint action of the members of the county legislative authorities of the parent county and new county, with the vote on each appointment distributed among the members of the county legislative authorities so that the combined vote of all the members of a single county legislative authority is in direct proportion to the percentage of population within the library district residing in that county and each member of that county legislative authority receiving an equal portion of that vote.

NEW SECTION. Sec. 11. COURTS. The special legislation creating the new county must provide for a separate superior court for the new county or include the new county as part of a superior court with another county or counties. The special legislation creating the new county shall provide for a justice court in the new county.

NEW SECTION. Sec. 12. TRANSFER OF CASES. (1) If a separate superior court is provided for the new county, all actions and proceedings that are pending in the superior court of a parent county at the date the new county is officially created affecting the title or possession of real property in the new county, or in which all the parties are residents of the new county, must be transferred to the superior court of the new county, and all proceedings in these lawsuits must be held in the new county as if originally commenced in that county. All other civil or criminal proceedings pending in the superior court of a parent county must be prosecuted to their termination in that court.

All pleadings, process, documents, and files in the office of the county clerk and other officers of the superior court of a parent county affecting actions and proceedings transferred to the superior court of the new county must be certified and transferred to the county clerk or other officers of the superior court of the new county.

(2) All actions and proceedings that are pending in the district court of a parent county at the date the new county is officially created affecting real property located in the new county, or in which all parties are residents of the new county, must be transferred to the district court of the new county, and all proceedings in these lawsuits must be held in the new county as if originally commenced in that county. All other civil or criminal proceedings pending in the district court of a parent county must be prosecuted to their termination in that court.

All pleadings, process, documents, and files in the district court of a parent county affecting actions and proceedings transferred to the district court of the new county must be certified and transferred to the district court of the new county.

NEW SECTION. Sec. 13. TRANSFER OF RECORDS. Within ninety days of appointment of the third interim county commissioner of the new county, all records, documents, and papers in the offices of county auditor, county assessor, county treasurer, and other county offices of a parent county affecting the title or possession of real property in the new county, assessed valuation of property located in the new county, the registration of voters residing in the new county, or other appropriate matters, must be copied, certified as being correct copies, and transferred to the appropriate county officials and officers of the new county. The new county shall provide proper and suitable record books and computer or otherwise electronic, mechanical, photocopying, recording, and retrieval systems, to which the records, documents, and papers must be transferred.

The parent county shall bear all costs of collecting, transcribing or copying, and transferring the records, documents, and papers. The appropriate officials of the parent county shall certify each book of records as being correct copies or the correct original records.

NEW SECTION. Sec. 14. INTERIM TRANSITION PERIOD. (1) During the interim period the interim county officials of a new county may provide for the transition of the area into a new county, including the authority of the interim board of county commissioners to adopt ordinances effective on or after the date the new county is officially created and to enter into contracts and agreements facilitating the transition of the area into a new county and ensuring a continuation of governmental services during the interim period and after the new county is officially created.

The two interim county commissioners who are appointed by the governor shall establish a date, time, and place within the new county for the first meeting of the interim board of county commissioners, at which meeting they shall appoint the third interim county commissioner, elect a chair of the board of county commissioners, and transact other business. The interim board of county commissioners shall appoint the other interim county officials at the first meeting or at the next meeting. The county commissioners shall cause to be published a notice of this first meeting in a newspaper of general circulation in the new county at least once ten days before the meeting.

(2) During the interim period the interim county officials may employ staff and acquire required facilities, supplies, equipment, insurance, and bonds, as if the new county were in existence. During the interim period, the interim board of county commissioners may:

(a) Cause tax anticipation or revenue anticipation notes or warrants or other short-term obligations to be issued. Funds may be borrowed in these instruments as provided in chapter 39.50 RCW;

(b) Authorize the borrowing money from state and federal agencies as if the new county were already created;

(c) Submit to voters of the new county ballot propositions authorizing a single-year excess levy to be imposed, as provided in RCW 84.52.052;

(d) Submit to voters of the new county ballot propositions authorizing both voter approved general indebtedness to be issued and bond retirement excess levies to be imposed, as provided RCW 84.52.056 and 39.36.050;

(e) Impose property taxes to be collected after the county is officially created; and

(f) Adopt ordinances imposing excise taxes that counties are allowed to impose to be collected after the new county is created, including, but not limited to, sales and use taxes authorized in chapter 82.14 RCW and excise taxes for sale of real estate authorized in chapter 82.46 RCW. These excise taxes must begin to be collected on the date the new county is officially created, if the ordinances imposing the excise taxes are adopted in a timely manner.

During the interim period, RCW 82.14.036 applies. During the interim period, the interim board of county commissioners may adopt resolutions establishing moratoria on the filing permit applications.

(3) During this interim period, the new county that will be created and the interim county elected officials are subject to the following as though the county were officially created: RCW 36.16.050 relating to the filing of bonds; RCW 4.24.470 relating to immunity; chapter 42.17 RCW relating to open government; chapter 40.14 RCW relating to the preservation and disposition of public records; chapters 42.20, 42.22, and 42.23 RCW relating to ethics and conflicts of interest; chapters 42.30 and 42.32 RCW relating to open public meetings and minutes; RCW 36.72.075 relating to the designation of an official newspaper, except that the interim board of county commissioners may designate its official county newspaper at a meeting during the interim period; RCW 36.16.138 relating to liability insurance; RCW 36.32.240 through 36.32.267, chapter 36.77 RCW, and statutes referenced in RCW 36.32.240 through 36.32.267 and chapter 36.77 RCW, relating to public contracts and bidding; and chapter 39.34 RCW relating to interlocal cooperation.

NEW SECTION. Sec. 15. PARENT COUNTY ORDINANCES REMAIN IN EFFECT. All ordinances, rules, and regulations of a parent county that were in effect in an area included in a new county before the official date of creating the new county remain in effect in that area until the effective date of an amendment or repeal of these ordinances, rules, or regulations by the board of county commissioners of the new county.

NEW SECTION. Sec. 16. ASSISTANCE BY PARENT COUNTY OR COUNTIES. The parent county or counties shall assist the new county during the interim period, including, but not limited to, providing services, work staff, materials, supplies, equipment, and other property and loaning money to the new county. The value of the assistance that is provided by the parent county to the new county during the interim period must be included in the calculations under RCW 36.09.010 through 36.09.050 (as recodified in this act) and section 23 of this act.

The parent county or counties shall continue financing the maintenance and construction of county facilities and providing county services in the new county during the interim period as if the new county were not created. The new county shall not be required to reimburse the parent county or counties for these costs. During the interim period each county official of the parent county or counties retains joint authority with the similar interim county officials of the new county in that portion of the parent county from which new county was formed.

NEW SECTION. Sec. 17. BUDGETS. (1) Budgets for the interim period and the initial budget for the county effective for the remainder of the calendar year after the interim period ends must be adopted as provided in this section. Chapter 36.40 RCW does not apply to the adoption of budgets under this section.

(2) The interim board of county commissioners shall adopt a budget or budgets for the interim period in consultation with the division of municipal corporations of the office of the state auditor. The initial interim budget may authorize the expenditure of moneys in a general sense without specific detail.

(3) The interim board of county commissioners shall adopt a budget for the new county for the period commencing on the first day of the official date the new county is created through the remainder of that calendar year ending on December 31st. A public hearing must be held on the proposed budget for this budget before its adoption. A budget message must be prepared for the proposed budget that contains an explanation of the budget document, an outline of the recommended financial policies and programs of the county for the ensuing full or partial fiscal year, and a statement of the relationship of the recommended appropriation to these policies and programs. Immediately following the release of the preliminary budget the interim board of county commissioners shall cause a notice of the public hearing of the budget to be published once each week for two consecutive weeks before the public hearing. The public hearing must be held at least twenty days before the date the new county is officially created and operating. A taxpayer may appear to be heard for or against any part of the budget. The interim board of county commissioners may make such adjustments and changes as it deems necessary and may adopt the final budget at the conclusion of the public hearing or at any time before the new county is officially created and operating.

NEW SECTION. Sec. 18. ASSISTANCE BY LOCAL GOVERNMENTS AND STATE AGENCIES. Counties, cities, towns, special districts, and state agencies may provide staff, equipment, and technical and financial assistance to a new county during the interim period to facilitate its transition. The assistance may be provided without compensation.

The department of community, trade, and economic development shall prepare and file with the legislature a report detailing the potential revenues and expenses of a proposed new county whenever the secretary of state certifies that petitions proposing the creation of a new county have sufficient valid signatures. The potential revenues of the proposed new county must include both tax revenue of the new county itself and distributions of state and federal moneys to the new county.

NEW SECTION. Sec. 19. BORROWING MONEY FROM THE COUNTY SALES AND USE TAX EQUALIZATION ACCOUNT. During the interim period, the interim board of county commissioners of a new county may by resolution borrow money from the county sales and use tax equalization account up to one hundred thousand dollars or five dollars per capita based on a population estimate of the new county made by the office of financial management, whichever is less.

The loan authorized by this section must be repaid over a three-year period. The state treasurer shall withhold moneys from the funds otherwise payable to the new county that has obtained the loan, either from the county sales and use tax equalization account or from sales and use tax entitlements otherwise distributable to the new county, so that the account is fully reimbursed over the three-year period. The state treasurer shall adopt by rule procedures to accomplish the purpose of this section on a reasonable and equitable basis over the three-year period.

NEW SECTION. Sec. 20. A new section is added to chapter 47.01 RCW to read as follows:

TRANSPORTATION FUNDING. The department of transportation shall adjust the allocations of transportation moneys made to counties to reflect the creation of a new county based upon its information of the number of registered vehicles, truck highway mileage, total county road placement costs, annual maintenance costs, assessed valuation, or other relevant factors.

Sec. 21. RCW 36.09.010 and 1963 c 4 s 36.09.010 are each amended to read as follows:

APPORTIONMENT OF DEBTS, OBLIGATIONS, AND ASSETS. Whenever a new county shall be or shall have been ((~~organized~~)) created out of the territory which was ((~~included within the limits of any other~~)) stricken from another county or counties, the new county shall be liable for a ((~~reasonable~~)) just proportion of the debts and obligations of the parent county ((~~from which it was taken, and entitled to its proportion of the property of the county~~)) or counties and shall receive a just proportion of the assets of the parent county or counties.

Sec. 22. RCW 36.09.020 and 1963 c 4 s 36.09.020 are each amended to read as follows:

PROCEDURE TO APPORTION DEBTS, LIABILITIES, AND ASSETS. (1) The auditor of the ((~~old~~)) parent county shall give the auditor of the new county reasonable notice to meet ((~~him~~)) together on a certain day at the county seat of the ((~~old~~)) parent county, or at some other convenient place, to settle ((~~upon and fix the amount which the new county shall pay~~)) the apportionment of debts and liabilities, if any, as provided in subsection (2) of this section and apportionment of assets under section 23 of this act.

(2) In ((~~doing so~~)) apportioning the debts and liabilities, they shall not charge either county with any share of debts ((~~arising from the erection of~~)) or liabilities then existing incurred in the purchase of any county property, or in the purchase or construction of any public buildings then in use or under construction, or ((~~out of the construction of~~)) any roads or bridges ((which shall be and remain, after the division, within the limits of the other county, and of the other debts they shall apportion to each county such a share of the indebtedness as may be just and equitable, taking into consideration the population of such portion of territory so forming a part of the said counties while so united, and also the relative advantages, derived from the old county organization)) then in use or under construction, that are located within the other county.

The remaining debts and liabilities of the parent county must be apportioned so that the new county is assigned an amount of these debts and liabilities that is in the same proportion as the assessed valuation of the new county, that was part of that parent county, is to the total assessed valuation in the parent county before the creation of the new county. The assessed valuations must be those used for taxes imposed in the year before the effective date of the creation of the new county.

This section may not be construed to effect the rights of creditors.

NEW SECTION. Sec. 23. ASSETS. The parent county shall retain ownership of real property it owns that remains in its boundaries after the creation of the new county. At the effective date of the creation of the new county, the new county shall acquire ownership of real property that was owned by the parent county that is located in the new county.

All equipment owned by the parent county that is used in the construction or maintenance of roads or bridges must be apportioned between the new county and parent county so that the new county receives a portion of this equipment that is in the same proportion as the number of miles of county roads in the new county, that were part of that parent county, is to the total number of miles of county roads in the parent county before the creation of the new county.

All other assets of the parent county, the apportionment of which is not otherwise provided for, must be apportioned between the parent county and new county so that the new county receives a portion of these assets that is in the same proportion as the assessed valuation of the new county, that was part of the parent county, is to the total assessed valuation of the parent county before the creation of the new county. The assessed valuations must be those used for taxes imposed in the year before the effective date of the creation of the new county.

Sec. 24. RCW 36.09.035 and 1963 c 4 s 36.09.035 are each amended to read as follows:

MEDIATION. In case the two auditors cannot agree to the apportionment of debts, liabilities, and assets, they shall call ((a third person, not a citizen of either county, or in any other manner interested, whose decision shall be binding. In case they cannot agree upon such third person, they shall each name one and decide by lot which it shall be)) the state auditor to mediate. The state auditor shall mediate over any other disputes on the transfer of records, documents, and papers under sections 12 and 13 of this act. The decision of the state auditor is binding on the parent county and new county.

Sec. 25. RCW 36.09.040 and 1963 c 4 s 36.09.040 are each amended to read as follows:

PAYMENT OF INDEBTEDNESS. The auditor of the county indebted upon ((~~such~~)) the decision apportioning debts, liabilities, and assets shall give to the auditor of the other county his or her order upon the treasurer for the amount to be paid out of the proper fund, as in other cases, and also make out a transfer of such property as shall be assigned to either county. The auditors shall establish a method of transfer or payment within sixty calendar days after the final apportionment is made.

Sec. 26. RCW 36.09.050 and 1963 c 4 s 36.09.050 are each amended to read as follows:

COLLECTION AND APPORTIONMENT OF TAX REVENUES. When a county is divided or the boundary is altered, all property taxes levied by the county and road district or districts before the division was made or boundaries changed, must be collected by the officers of the parent county ((~~in which the territory was situated before the division or change~~)) or counties. ((~~And~~)) The auditor or auditors of the county or counties so divided or having boundaries changed, shall apportion the amount of the real property taxes so collected after division or change of boundary to the ((~~old~~)) parent county or counties and the new county or counties, ((in the ratio of the assessed value of such property situated in the territory of each county or counties respectively, and the old county that may have been divided or whose boundaries may have been changed,)) so that each new county receives a portion of these tax receipts that is in the same proportion as the assessed valuation of that county, that was part of a parent county, is to the total assessed valuation of that parent county before the creation of the new county multiplied by a fraction, the numerator of which is the number of days remaining in the calendar year and the denominator of which is the number of days in that calendar year. The assessed valuations must be those that were used for taxes imposed in the year before the effective date of the creation of the new county. The parent county shall retain all of the personal property taxes on ((~~the said~~)) its tax rolls, as compensation for cost of collection of the entire taxes((~~: PROVIDED, That~~)). However, in such accounting neither county shall be charged with any debt or liability then existing incurred in the purchase of any county property, or in the purchase or construction of any county buildings then in use or under construction, which shall fall within and be retained by the county((~~: PROVIDED FURTHER, That~~)). Nothing in this section shall ((~~not~~)) be construed to affect the rights of creditors((: AND PROVIDED FURTHER, That any such county property or buildings shall be the property of and owned by the county wherein the same is situated. In case the auditors of the interested counties are not able to agree upon the proportion to be awarded to each county, the same shall be determined by the judge of the superior court of the district in which all of the interested counties are situated, if they be in one district, and have one common judge, and if not, by the judges sitting en banc of the superior courts of the counties involved. Said auditors shall make said apportionment within sixty days after the creation of any new county or the changing of boundaries of any old county, and if they do not, within said time, agree upon said apportionment, thereafter either or any county affected may petition the judge or judges of any court given jurisdiction by this section, and upon ten days' notice to any other county affected, the same may be brought on for hearing and summarily disposed of by said judge or judges, after allowing each side an opportunity to be heard)).

Each parent county shall continue imposing sales and use taxes throughout its entire boundaries until the effective date of the creation of the new county. Before the effective date of creating the new county, each parent county shall continue receiving federal and state moneys allocated to it as if the new county did not exist. State moneys must be allocated to the new county on whatever basis these moneys are distributed commencing on the effective date of creating the new county.

NEW SECTION. Sec. 27. CONSTRUCTION. The rule of strict construction does not apply to this chapter. This chapter must be liberally construed to provide for the creation of a new county and removal of territory from a parent county forming all or part of the new county. A continuation of government remains in both the new county and the remaining parent county or counties.

The interim board of county commissioners of a new county is granted broad authority to provide for a transition to a new county during the interim period so that, to the greatest extent possible, a new county will be able to fully function as a complete county government at the date the new county is officially created. Should a situation arise where it appears that technically the new county is unable to act, the interim board of county commissioners is granted the full authority to take necessary actions.

NEW SECTION. Sec. 28. A new section is added to chapter 36.57A RCW to read as follows:

PUBLIC TRANSPORTATION BENEFIT AREAS. Effective on the first day after the interim period for the creation of a new county, a public transportation benefit area that includes territory located in both the remaining parent county and new county shall have its boundaries reduced to eliminate any territory located in the new county.

Sec. 29. RCW 84.09.030 and 1994 c 292 s 4 are each amended to read as follows:

ESTABLISHING BOUNDARIES FOR PURPOSES OF IMPOSING PROPERTY TAXES. Except as follows, the boundaries of counties, cities and all other taxing districts, for purposes of property taxation and the levy of property taxes, shall be the established official boundaries of such districts existing on the first day of March of the year in which the property tax levy is made.

The official boundaries of a newly incorporated taxing district shall be established at a different date in the year in which the incorporation occurred as follows:

(1) Boundaries for a newly incorporated city shall be established on the last day of March of the year in which the initial property tax levy is made, and the boundaries of a road district, library district, or fire protection district or districts, that include any portion of the area that was incorporated within its boundaries shall be altered as of this date to exclude this area, if the budget for the newly incorporated city is filed pursuant to RCW 84.52.020 and the levy request of the newly incorporated city is made pursuant to RCW 84.52.070. Whenever a proposed city incorporation is on the March special election ballot, the county auditor shall submit the legal description of the proposed city to the department of revenue on or before the first day of March;

(2) Boundaries for a newly incorporated port district shall be established on the first day of October if the boundaries of the newly incorporated port district are coterminous with the boundaries of another taxing district, as they existed on the first day of March of that year;

(3) Boundaries of any other newly incorporated taxing district shall be established on the first day of June of the year in which the property tax levy is made if the taxing district has boundaries coterminous with the boundaries of another taxing district, as they existed on the first day of March of that year;

(4) Boundaries for a newly incorporated water district shall be established on the fifteenth of June of the year in which the proposition under RCW 57.04.050 authorizing a water district excess levy is approved; and

(5) Boundaries of a new county, the counties from which territory is stricken to create the new county, any road districts in the counties from which the territory is stricken, and road districts in the newly created county shall be established on the date special legislation is enacted creating the new county.

The boundaries of a taxing district shall be established on the first day of June if territory has been added to, or removed from, the taxing district after the first day of March of that year with boundaries coterminous with the boundaries of another taxing district as they existed on the first day of March of that year. However, the boundaries of a road district, library district, or fire protection district or districts, that include any portion of the area that was annexed to a city or town within its boundaries shall be altered as of this date to exclude this area. In any case where any instrument setting forth the official boundaries of any newly established taxing district, or setting forth any change in such boundaries, is required by law to be filed in the office of the county auditor or other county official, said instrument shall be filed in triplicate. The officer with whom such instrument is filed shall transmit two copies to the county assessor.

No property tax levy shall be made for any taxing district whose boundaries are not established as of the dates provided in this section.

NEW SECTION. Sec. 30. Captions as used in this act do not constitute any part of the law.

NEW SECTION. Sec. 31. If necessary, the code reviser shall recodify RCW 36.09.010, 36.09.020, 36.09.035, 36.09.040, and 36.09.050 to conform with the reorganization of chapter 36.09 RCW as provided in this act and provide for a logical order of sections.

NEW SECTION. Sec. 32. Sections 2 through 19, 23, and 27 of this act are each added to chapter 36.09 RCW.