SENATE 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

Senate Committee on Energy & Utilities

Senate Hearing Date(s):March 31, 1987

Majority Report:  Do pass as amended.

      Signed by Senators Williams, Chairman; Benitz, Nelson, Smitherman, Stratton.

Senate Staff:Paul Parker (786-7455)

                  March 31, 1987

AS REPORTED BY COMMITTEE ON ENERGY & UTILITIES, MARCH 31, 1987

BACKGROUND:

Public utility districts (PUDs) 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 to require that the territory to be annexed must have been located within the annexing PUD's electrical service area on January 1, 1987.

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 annexation; (e) the disposition of any assets of the districts in the area; and (f) the obligations to be assumed by the annexing district.  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.

SUMMARY OF PROPOSED SENATE AMENDMENT:

Voters in the area to be annexed are to be advised of possible rate impacts and liabilities assumed by changing PUDs.  The annexing PUD is required to continue the services provided by the PUD serving the annexed territory.  County officials are to coordinate elections, the levy and collection of taxes, and other duties, when annexation results in PUD boundaries that extend beyond one county.

Fiscal Note:      none requested

Senate Committee - Testified: Representative James Hargrove