BILL REQ. #:  H-3549.2 

Read first time 01/23/14.   Referred to Committee on Local Government.

     AN ACT Relating to annexations by code cities in counties with four hundred thousand or more residents; and amending RCW 35A.14.297, 35A.14.299, 35A.14.460, 35A.14.470, and 35A.14.480.

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

Sec. 1   RCW 35A.14.297 and 1967 ex.s. c 119 s 35A.14.297 are each amended to read as follows:
     (1) On the date set for hearing as provided in RCW 35A.14.295, residents or property owners of the area included in the resolution for annexation shall be afforded an opportunity to be heard. The legislative body may provide by ordinance for annexation of the territory described in the resolution, but the effective date of the ordinance shall be not less than forty-five days after the passage thereof. The legislative body shall cause notice of the proposed effective date of the annexation, together with a description of the property to be annexed, to be published at least once each week for two weeks subsequent to passage of the ordinance, in one or more newspapers of general circulation within the city and in one or more newspapers of general circulation within the area to be annexed. If the annexation ordinance provides for assumption of indebtedness or adoption of a proposed zoning regulation, the notice shall include a statement of such requirements. Such annexation ordinance shall be subject to referendum for forty-five days after the passage thereof. Upon the filing of a timely and sufficient referendum petition as provided in RCW 35A.14.299 below, a referendum election shall be held as provided in RCW 35A.14.299, and the annexation shall be deemed approved by the voters unless a majority of the votes cast on the proposition are in opposition thereto. Except as provided in subsection (2) of this section, after the expiration of the forty-fifth day from, but excluding the date of passage of the annexation ordinance, if no timely and sufficient referendum petition has been filed, as provided by RCW 35A.14.299 below, the area annexed shall become a part of the code city upon the date fixed in the ordinance of annexation.
     (2) For areas within a county with a population that equals or exceeds four hundred thousand and that is bordered by the Columbia river, the question of annexation must be submitted to the voters of the area, if the area contains at least one hundred voters, in a general election if one is to be held within ninety days or at a special election called for that purpose according to RCW 29A.04.330. Notice of the election must be given as provided in RCW 35A.14.070 and the election must be conducted as provided in the general election law. If the area to be annexed contains less than one hundred voters, at least a majority of the voters in the area to be annexed must give their written consent to the annexation. The annexation is deemed approved by the voters unless a majority of the votes cast on the proposition are in opposition to the annexation, or unless less than a majority of voters provide their written consent to the annexation.

Sec. 2   RCW 35A.14.299 and 2006 c 344 s 25 are each amended to read as follows:
     (1) Such annexation ordinance as provided for in RCW 35A.14.297 shall be subject to referendum for forty-five days after the passage thereof. Upon the filing of a timely and sufficient referendum petition with the legislative body, signed by qualified electors in number equal to not less than ten percent of the votes cast in the last general state election in the area to be annexed, the question of annexation shall be submitted to the voters of such area in a general election if one is to be held within ninety days or at a special election called for that purpose according to RCW 29A.04.330. Notice of such election shall be given as provided in RCW 35A.14.070 and the election shall be conducted as provided in RCW 35A.29.151. The annexation shall be deemed approved by the voters unless a majority of the votes cast on the proposition are in opposition thereto.
     Except as provided in subsection (2) of this section, after the expiration of the forty-fifth day from but excluding the date of passage of the annexation ordinance, if no timely and sufficient referendum petition has been filed, the area annexed shall become a part of the code city upon the date fixed in the ordinance of annexation. From and after such date, if the ordinance so provided, property in the annexed area shall be subject to the proposed zoning regulation prepared and filed for such area as provided in RCW 35A.14.330 and 35A.14.340. If the ordinance so provided, all property within the area annexed shall be assessed and taxed at the same rate and on the same basis as the property of such annexing code city is assessed and taxed to pay for any then outstanding indebtedness of such city contracted prior to, or existing at, the date of annexation.
     (2) For areas within a county with a population that equals or exceeds four hundred thousand and that is bordered by the Columbia river, the question of annexation must be submitted to the voters of the area, if the area contains at least one hundred voters, in a general election if one is to be held within ninety days or at a special election called for that purpose according to RCW 29A.04.330. Notice of the election must be given as provided in RCW 35A.14.070 and the election must be conducted as provided in the general election law. If the area to be annexed contains less than one hundred voters, at least a majority of the voters in the area to be annexed must give their written consent to the annexation. The annexation is deemed approved by the voters unless a majority of the votes cast on the proposition are in opposition to the annexation, or unless less than a majority of voters provide their written consent to the annexation.

Sec. 3   RCW 35A.14.460 and 2003 c 299 s 3 are each amended to read as follows:
     (1) The legislative body of a county or code city planning under chapter 36.70A RCW and subject to the requirements of RCW 36.70A.215 may initiate an annexation process for unincorporated territory by adopting a resolution commencing negotiations for an interlocal agreement as provided in chapter 39.34 RCW between a county and any code city within the county. The territory proposed for annexation must meet the following criteria: (a) Be within the code city urban growth area designated under RCW 36.70A.110, and (b) at least sixty percent of the boundaries of the territory proposed for annexation must be contiguous to the annexing code city or one or more cities or towns.
     (2) If the territory proposed for annexation has been designated in an adopted county comprehensive plan as part of an urban growth area, urban service area, or potential annexation area for a specific city, or if the urban growth area territory proposed for annexation has been designated in a written agreement between a city and a county for annexation to a specific city or town, the designation or designations shall receive full consideration before a city or county may initiate the annexation process provided for in RCW 35A.14.470.
     (3) The agreement shall describe the boundaries of the territory to be annexed. A public hearing shall be held by each legislative body, separately or jointly, before the agreement is executed. Each legislative body holding a public hearing shall, separately or jointly, publish the agreement at least once a week for two weeks before the date of the hearing in one or more newspapers of general circulation within the territory proposed for annexation.
     (4) Except as provided in subsection (5) of this section, following adoption and execution of the agreement by both legislative bodies, the city legislative body shall adopt an ordinance providing for the annexation of the territory described in the agreement. The legislative body shall cause notice of the proposed effective date of the annexation, together with a description of the property to be annexed, to be published at least once each week for two weeks subsequent to passage of the ordinance, in one or more newspapers of general circulation within the city and in one or more newspapers of general circulation within the territory to be annexed. If the annexation ordinance provides for assumption of indebtedness or adoption of a proposed zoning regulation, the notice shall include a statement of the requirements. Any territory to be annexed through an ordinance adopted under this section is annexed and becomes a part of the city upon the date fixed in the ordinance of annexation, which date may not be fewer than forty-five days after adoption of the ordinance.
     (5) For areas within a county with a population that equals or exceeds four hundred thousand and that is bordered by the Columbia river, the question of annexation must be submitted to the voters of the area, if the area contains at least one hundred voters, in a general election if one is to be held within ninety days or at a special election called for that purpose according to RCW 29A.04.330. Notice of the election must be given as provided in RCW 35A.14.070 and the election must be conducted as provided in the general election law. If the area to be annexed contains less than one hundred voters, at least a majority of the voters in the area to be annexed must give their written consent to the annexation. The annexation is deemed approved by the voters unless a majority of the votes cast on the proposition are in opposition to the annexation, or unless less than a majority of voters provide their written consent to the annexation.

Sec. 4   RCW 35A.14.470 and 2006 c 344 s 26 are each amended to read as follows:
     (1) The legislative body of any county planning under chapter 36.70A RCW and subject to the requirements of RCW 36.70A.215 may initiate an annexation process with the legislative body of any other cities or towns that are contiguous to the territory proposed for annexation in RCW 35A.14.460 if:
     (a) The county legislative body initiated an annexation process as provided in RCW 35A.14.460; and
     (b) The affected city legislative body adopted a responsive resolution rejecting the proposed annexation or declined to create the requested interlocal agreement with the county; or
     (c) More than one hundred eighty days have passed since adoption of a county resolution as provided for in RCW 35A.14.460 and the parties have not adopted or executed an interlocal agreement providing for the annexation of unincorporated territory. The legislative body for either the county or an affected city may, however, pass a resolution extending the negotiation period for one or more six-month periods if a public hearing is held and findings of fact are made prior to each extension.
     (2) Any county initiating the process provided for in subsection (1) of this section must do so by adopting a resolution commencing negotiations for an interlocal agreement as provided in chapter 39.34 RCW between the county and any city or town within the county. The annexation area must be within an urban growth area designated under RCW 36.70A.110 and at least sixty percent of the boundaries of the territory to be annexed must be contiguous to one or more cities or towns.
     (3) The agreement shall describe the boundaries of the territory to be annexed. A public hearing shall be held by each legislative body, separately or jointly, before the agreement is executed. Each legislative body holding a public hearing shall, separately or jointly, publish the agreement at least once a week for two weeks before the date of the hearing in one or more newspapers of general circulation within the territory proposed for annexation.
     (4) Following adoption and execution of the agreement by both legislative bodies, the city or town legislative body shall adopt an ordinance providing for the annexation. The legislative body shall cause notice of the proposed effective date of the annexation, together with a description of the property to be annexed, to be published at least once each week for two weeks subsequent to passage of the ordinance, in one or more newspapers of general circulation within the city and in one or more newspapers of general circulation within the territory to be annexed. If the annexation ordinance provides for assumption of indebtedness or adoption of a proposed zoning regulation, the notice shall include a statement of the requirements. Any area to be annexed through an ordinance adopted under this section is annexed and becomes a part of the city or town upon the date fixed in the ordinance of annexation, which date may not be less than forty-five days after adoption of the ordinance.
     (5) Except as provided in subsection (8) of this section, the annexation ordinances provided for in RCW 35A.14.460(4) and subsection (4) of this section are subject to referendum for forty-five days after passage. Upon the filing of a timely and sufficient referendum petition with the legislative body, signed by registered voters in number equal to not less than fifteen percent of the votes cast in the last general state election in the area to be annexed, the question of annexation shall 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 according to RCW 29A.04.330. Notice of the election shall be given as provided in RCW 35A.14.070 and the election shall be conducted as provided in the general election law. The annexation shall be deemed approved by the voters unless a majority of the votes cast on the proposition are in opposition thereto.
     After the expiration of the forty-fifth day from but excluding the date of passage of the annexation ordinance, if no timely and sufficient referendum petition has been filed, the area annexed shall become a part of the city or town upon the date fixed in the ordinance of annexation.
     (6) Except as provided in subsection (8) of this section, if more than one city or town adopts interlocal agreements providing for annexation of the same unincorporated territory as provided by this section, an election shall be held in the area to be annexed pursuant to RCW 35A.14.070. In addition to the provisions of RCW 35A.14.070, the ballot shall also contain a separate proposition allowing voters to cast votes in favor of annexation to any one city or town participating in an interlocal agreement as provided by this section. If a majority of voters voting on the proposition vote against annexation, the proposition is defeated. If, however, a majority of voters voting in the election approve annexation, the area shall be annexed to the city or town receiving the highest number of votes among those cast in favor of annexation.
     (7) Costs for an election required under subsection (6) of this section shall be borne by the county.
     (8) For areas within a county with a population that equals or exceeds four hundred thousand and that is bordered by the Columbia river, the question of annexation must be submitted to the voters of the area, if the area contains at least one hundred voters, in a general election if one is to be held within ninety days or at a special election called for that purpose according to RCW 29A.04.330. Notice of the election must be given as provided in RCW 35A.14.070 and the election must be conducted as provided in the general election law. If the area to be annexed contains less than one hundred voters, at least a majority of the voters in the area to be annexed must give their written consent to the annexation. The annexation is deemed approved by the voters unless a majority of the votes cast on the proposition are in opposition to the annexation, or unless less than a majority of voters provide their written consent to the annexation.

Sec. 5   RCW 35A.14.480 and 2013 2nd sp.s. c 27 s 2 are each amended to read as follows:
     (1)(a) An annexation by a code city proposing to annex territory served by one or more fire protection districts may be accomplished by ordinance after entering into an interlocal agreement as provided in chapter 39.34 RCW with the county and the fire protection district or districts that have jurisdiction over the territory proposed for annexation.
     (b) A code city proposing to annex territory shall initiate the interlocal agreement process by sending notice to the fire protection district representative and county representative stating the code city's interest to enter into an interlocal agreement negotiation process. The parties have forty-five days to respond in the affirmative or negative. A negative response must state the reasons the parties do not wish to participate in an interlocal agreement negotiation. A failure to respond within the forty-five day period is deemed an affirmative response and the interlocal agreement negotiation process may proceed. The interlocal agreement process may not proceed if any negative responses are received within the forty-five day period.
     (c) The interlocal agreement must describe the boundaries of the territory proposed for annexation and must be consistent with the boundaries identified in an ordinance describing the boundaries of the territory proposed for annexation and setting a date for a public hearing on the ordinance. If the boundaries of the territory proposed for annexation are agreed to by all parties, a notice of intention must be filed with the boundary review board created under RCW 36.93.030. However, the jurisdiction of the board may not be invoked as described in RCW 36.93.100 for annexations that are the subject of such agreement.
     (2) An interlocal annexation agreement under this section must include the following:
     (a) A statement of the goals of the agreement. Goals must include, but are not limited to:
     (i) The transfer of revenues and assets between the fire protection district and the code city;
     (ii) A consideration and discussion of the impact to the level of service of annexation on the unincorporated area, and an agreement that the impact on the ability of fire protection and emergency medical services within the incorporated area must not be negatively impacted at least through the budget cycle in which the annexation occurs;
     (iii) A discussion with fire protection districts regarding the division of assets and its impact to citizens inside and outside the newly annexed area;
     (iv) Community involvement, including an agreed upon schedule of public meetings in the area or areas proposed for annexation;
     (v) Revenue sharing, if any;
     (vi) Debt distribution;
     (vii) Capital facilities obligations of the code city, county, and fire protection districts;
     (viii) An overall schedule or plan on the timing of any annexations covered under this agreement; and
     (ix) A description of which of the annexing code cities' development regulations will apply and be enforced in the area.
     (b) The subject areas and policies and procedures the parties agree to undertake in annexations. Subject areas may include, but are not limited to:
     (i) Roads and traffic impact mitigation;
     (ii) Surface and storm water management;
     (iii) Coordination and timing of comprehensive plan and development regulation updates;
     (iv) Outstanding bonds and special or improvement district assessments;
     (v) Annexation procedures;
     (vi) Distribution of debt and revenue sharing for annexation proposals, code enforcement, and inspection services;
     (vii) Financial and administrative services; and
     (viii) Consultation with other service providers, including water-sewer districts, if applicable.
     (c) A term of at least five years, which may be extended by mutual agreement of the code city, the county, and the fire protection district.
     (3) Except as provided in subsection (4) of this section, if the fire protection district, annexing code city, and county reach an agreement on the enumerated goals, or if only the annexing code city and county reach an agreement on the enumerated goals, the code city may adopt an annexation ordinance, but the annexation ordinance provided for in this section is subject to referendum for forty-five days after its passage, provided that no referendum shall be allowed for an annexation under this section if the fire protection district, annexing code city, and the county reach agreement on an annexation for which a code city has initiated the interlocal agreement process by sending notice to the fire protection district representative and county representative prior to July 28, 2013. Upon the filing of a timely and sufficient referendum petition with the legislative body of the code city, signed by qualified electors in a number not less than ten percent of the votes cast in the last general state election in the area to be annexed, the question of annexation 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 according to RCW 29A.04.330. Notice of the election must be given as provided in RCW 35A.14.070, and the election must be conducted as provided in the general election laws under Title 29A RCW. The annexation must be deemed approved by the voters unless a majority of the votes cast on the proposition are in opposition to the annexation.
     After the expiration of the forty-fifth day from, but excluding, the date of passage of the annexation ordinance, if a timely and sufficient referendum petition has not been filed, the area annexed becomes a part of the code city upon the date fixed in the ordinance of annexation.
     (4) For areas within counties with a population that equals or exceeds four hundred thousand and that is bordered by the Columbia river, the question of annexation shall be submitted to the voters of the area, if the area contains at least one hundred voters, in a general election if one is to be held within ninety days or at a special election called for that purpose according to RCW 29A.04.330. Notice of the election shall be given as provided in RCW 35A.14.070 and the election shall be conducted as provided in the general election law. If the area to be annexed contains less than one hundred voters, at least a majority of the voters in the area to be annexed must give their written consent to the annexation. The annexation shall be deemed approved by the voters unless a majority of the votes cast on the proposition are in opposition to the annexation or unless less than a majority provide their written consent to the annexation.