HOUSE BILL REPORT

SHB 1012

BYHouse Committee on Local Government (originally sponsored by Representatives Hargrove and Fisch)

Changing provisions relating to the annexation of areas by public utility districts.

House Committe on Local Government

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (13)

      Signed by Representatives Haugen, Chair; Cooper, Vice Chair; Beck, Bumgarner, Ferguson, Hine, Madsen, Nealey, Nelson, Nutley, Rayburn, L. Smith and Zellinsky.

House Staff:Steve Lundin (786-7127)

AS PASSED HOUSE MARCH 11, 1987

BACKGROUND:

Public utility districts (PUD's) are authorized to be incorporated in all or part of a county.

A PUD may annex territory contiguous to a portion of its boundaries if the territory was not located in another PUD and if the territory was located within the annexing PUD's electrical service area by following the petition/election, resolution/election, or direct petition procedures by which cities annex contiguous territory.  This contiguous area may be located in the same, or a different, county as the annexing PUD.

SUMMARY:

The statute authorizing a public utility district (PUD) to annex contiguous territory that is in the PUD's electrical service area is altered as follows:

(1)  The territory to be annexed must have been located within the annexing PUD's electrical service area on January 1, 1987;

(2)  An area located in another PUD may be annexed by a PUD, and removed from this other PUD, under the petition/election method of annexation if both boards of commissioners adopt identical resolutions stating: (a) the boundaries of the area to be annexed; (b) that the annexation is in the public interest of both the residents of the area, and the residents of both districts; (c) their approval of the action; (d) the boundaries of both PUD's after he annexation; (e) the disposition of any assets of the districts in the area; and (f) the obligations to be assumed by the annexing district; and

(3)  The ability to annex territory under the direct petition method is removed.

The possibility of a PUD including territory in more than one county is recognized for purposes of creating PUD commissioner districts.

EFFECT OF SENATE AMENDMENT(S):  (1) The identical resolutions that must be adopted by both PUD boards must state:  (a) the apportionment of the election costs, and (b) that the voters of the area must be advised of possible lawsuits that may impose liability on the annexed territory and the possible impact of the annexation on taxes and utility rates.  (2)  The PUD annexing the area must assume responsibility to provide the area with services that were provided in the area by the PUD from which it is being withdrawn.  (3)  When territory is annexed by a PUD, the county officials of the county within which the annexing PUD is located shall coordinate the duties of county officials in other counties as these duties relate to the PUD.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Dave Rogers, Washington PUD Association; and Dan Scott, Mason County PUD No. 1.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    A few areas are located in one PUD, but are served by electricity in another PUD.  This allows territory between the two PUD's to be switched if approved by both PUD boards of commissioners and the voters of the area.  These people want to be able to vote for the commissioners.  Only a few areas are effected.

House Committee - Testimony Against:      None Presented.

VOTE ON FINAL PASSAGE:

      Yeas 93; Nays 2; Absent 1; Excused 2

Voting Nay: Representatives Belcher and Miller

Absent:     Representative B. Williams

Excused:    Representatives Chandler and Padden