BILL REQ. #:  H-2858.1 

Read first time 01/16/14.   Referred to Committee on Local Government.

     AN ACT Relating to voter approval of assumptions of water-sewer districts by cities and towns; adding new sections to chapter 35.13A RCW; and creating a new section.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 35.13A RCW to read as follows:
     (1) A city or town may not assume, under this chapter, the jurisdiction of all or part of a water-sewer district serving a population greater than one thousand residents and containing, within its boundaries, the territory of two or more cities or towns, or one city or town and unincorporated territory, unless voters of the entire water-sewer district approve a ballot proposition authorizing the assumption under general election law. The cost of the election must be borne by the city or town seeking approval to assume jurisdiction of a water-sewer district.
     (2) A city or town may assume jurisdiction over a water-sewer district located within its boundaries without seeking approval of the voters, as required under subsection (1) of this section, if the board of commissioners of the water-sewer district consent to the assumption of jurisdiction by the city or town. The feasibility study required under subsection (3) of this section is not required if the board of commissioners of the water-sewer district consents to the assumption of jurisdiction by the city or town.
     (3) Following the passage of a resolution by a city or town to assume all or part of a special purpose water-sewer district under this chapter, a feasibility study of the assumption must be conducted, unless the board of commissioners of the water-sewer district consents to the assumption of jurisdiction by the city or town as provided under subsection (2) of this section. The study must be jointly and equally funded by the city or town and the district through a mutually agreed contract with a qualified independent consultant with professional expertise involving public water and sewer systems. The study must address the impact of the proposed assumption on both the city or town and district. Issues to be considered must be mutually agreed to by the city or town and the district and must include, but not be limited to, engineering and operational impacts, costs of the assumption to the city or town and the district including potential impacts on future water-sewer rates, bond ratings and future borrowing costs, status of existing water rights, and other issues jointly agreed to. The findings of the joint study must be presented as a public record that is available to the registered voters of the district, both within and without the boundary of the city or town conducting the assumption, prior to a vote on the proposed assumption by all the voters in the district. The study must be completed within six months of the passage of the resolution to assume the district. No vote may take place until the study has been completed and the results have been made available to the registered voters of the district.
     (4) This section is applicable to assumptions of jurisdiction of water-sewer districts by cities or towns that have been initiated prior to the effective date of this section and that are pending as of that date, as well as those assumptions of jurisdiction that are initiated on or after the effective date of this section.
     (5) Once the voters in a water-sewer district have approved or disapproved an assumption through the ballot proposition process required under subsection (1) of this section, a boundary review board does not have jurisdiction, under chapter 36.93 RCW, to conduct a review of the assumption where the attempted or completed assumption involves not more than one city or town.

NEW SECTION.  Sec. 2   A new section is added to chapter 35.13A RCW to read as follows:
     (1) If a city or town assumes jurisdiction over a water-sewer district without seeking approval of the voters pursuant to section 2(1) of this act, the assumption is subject to referendum for forty-five days after its passage. Upon the filing of a timely and sufficient referendum petition with the board of commissioners, signed by registered voters in number equal to not less than ten percent of the registered voters in the area to be assumed who voted in the last municipal general election, the question of assumption must be submitted to the voters of the area in a general election if one is to be held within ninety days or at a special election called for that purpose by the board of commissioners in accordance with RCW 29A.04.330. The election must be conducted in accordance with the general election laws of the state. The assumption is deemed approved by the voters unless a majority of the votes cast on the proposition are in opposition thereto.
     (2) After the expiration of the forty-fifth day from but excluding the date the board of commissioners of the water-sewer district consented to the assumption of jurisdiction by the city or town, if no timely and sufficient referendum petition has been filed, the city or town assumes jurisdiction over the water-sewer district.

NEW SECTION.  Sec. 3   Nothing in this act may be construed to preempt or modify any existing interlocal agreement, franchise, or contract between a city or town and a water-sewer district in effect on the effective date of this section.