SENATE BILL REPORT

SHB 97

BYHouse Committee on Local Government (originally sponsored by Representatives Braddock, Haugen, Kremen and Ferguson)

Modifying provisions relating to sale of property by special districts.

House Committe on Local Government

Senate Committee on Governmental Operations

Senate Hearing Date(s):April 2, 1987

Majority Report:  Do pass as amended.

      Signed by Senators Halsan, Chairman; Garrett, Vice Chairman; DeJarnatt, McCaslin, Talmadge, Zimmerman.

Senate Staff:Walt Corneille (786-7452; Sam Thompson (786-7754)

                  April 2, 1987

AS REPORTED BY COMMITTEE ON GOVERNMENTAL OPERATIONS, APRIL 2, 1987

BACKGROUND:

Real property owned by a sewer district or water district may not be sold for less than 90 percent of its appraised value as established by three written appraisals made not more than six months before the date of the sale.

SUMMARY:

If after 90 days no purchaser can be obtained for property owned by a sewer district, at 90 percent or more of the appraised value, the district must obtain a second appraisal.  After the second appraisal, the district must attempt to sell the property for another 90-day period for at least 90 percent of the second appraisal value.

If a purchaser cannot be found after the second appraisal and 90-day period, the district may petition the county legislative authority to sell the property for less than 90 percent of the appraised value.  With this permission, a district may sell the property at the highest obtainable value.

SUMMARY OF PROPOSED SENATE AMENDMENT:

When a property is sold at the highest obtainable value the sale must be by public auction.

Fiscal Note:      none requested

Senate Committee - Testified: Joe Daniels, Washington Association of Water/Wastewater Districts