BILL REQ. #:  H-1158.1 

Read first time 02/21/2003.   Referred to Committee on Local Government.

     AN ACT Relating to assumption of water-sewer district functions by an association; and adding a new section to chapter 57.04 RCW.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 57.04 RCW to read as follows:
     (1)(a) If the board of commissioners of a water-sewer district find it more conducive to the public health, safety, welfare, or convenience that water-sewer services be provided by a cooperative or mutual association or corporation organized under Title 24 RCW or chapter 23.86 RCW, the board may adopt a resolution calling for disincorporation of the district and the transfer to such association or corporation of all the property constituting its system of sewerage, system of water, or combined water and sewerage system, together with any of its other real or personal property used or useful in connection with the operation, maintenance, repair, or replacement of that system, and the association or corporation may acquire such property on such terms as may be mutually agreed upon by the association or corporation and the board of commissioners. Such resolution shall contain the written agreement setting forth the terms and conditions of the transfer and shall be filed with the county.
     (b) In consideration of a transfer of property by a district to an association or corporation in a manner provided in this section, the association or corporation must assume and agree to pay or provide for the payment of all of the indebtedness of a district including the payment and retirement of outstanding general obligation and revenue bonds issued by a district. The association or corporation may cause service and other charges to be collected from such property or owners or occupants thereof and enforce such collection.
     The association or corporation and the district must execute a written agreement setting forth the terms and conditions upon which they have agreed and finding the transfer and acquisition of property pursuant to such agreement to be in the public interest and conducive to the public health, safety, welfare, or convenience. Such written agreement may include provisions, by way of description and not by way of limitation, for the rights, powers, duties, and obligations of such association or corporation and district with regard to the use and ownership of property, the providing of services, the maintenance and operation of facilities, the disposition of liabilities and indebtedness, the performance of contractual obligations, and any other matters relating to the proposed transfer of property. The agreement may provide for a period of time during which the district may continue to exercise certain rights, privileges, powers, and functions authorized to it by law. Such agreement must be presented to the registered voters of the district as part of the resolution to transfer and disincorporate the district. Upon passage of the resolution, the president of the board of commissioners of the district and the person or persons vested with the management of the affairs of the association shall sign and formalize the agreement.
     (2)(a) Upon the filing with the county in which the district is located of the resolution calling for the disincorporation of the district and transfer of functions to an association or corporation, the county legislative authority shall hold a public hearing to determine whether or not the best interests of all persons concerned will be served by the proposed disincorporation of the district and transfer of functions to an association or corporation.
     (b) If the county legislative authority finds that the best interests of all persons concerned will be served by disincorporating the district and transferring functions to an association or corporation, it shall order an election under subsection (4) of this section, specify the manner in which it is to be accomplished, and supervise the liquidation of any assets and the satisfaction of any outstanding indebtedness.
     (3) After all transfers to the association or corporation have been made as required by the written agreement, and the district has been disincorporated, any remaining property shall be sold or liquidated and the proceeds of the sale, together with money on hand in the treasury of the district, shall, after payment of all costs and expenses and all outstanding indebtedness, be placed to the credit of the school district, or districts, in which such district is situated.
     (4) Upon entry of the findings of the hearing by the county that the proposed disincorporation and transfer of assets will be conducive to the public health, welfare, and convenience and will benefit the land therein, the county legislative authority shall present a resolution to the county auditor calling for a special election to be held at a date specified under RCW 29.13.020, that occurs forty-five or more days after the resolution is presented, at which a ballot proposition authorizing the transfer of assets and disincorporation of the district shall be submitted to the voters of the district for their approval or rejection. The commissioners shall cause to be published a notice of the election for four successive weeks in a newspaper of general circulation in the district, which notice shall state the hours during which the polls will be open and the object of the election, and the notice shall also be posted ten days in ten public places in the district. The transfer of assets shall be executed as provided in the written agreement and the district shall be disincorporated if the ballot proposition is approved by a majority of the voters voting on the proposition.