H-750                _______________________________________________

                                                    HOUSE BILL NO. 348

                        _______________________________________________

State of Washington                              50th Legislature                              1987 Regular Session

By Representatives Haugen, Ferguson, Nutley, P. King and Unsoeld

Read first time 1/26/87 and referred to Committee on Local Government.

AN ACT Relating to special purpose districts; amending RCW 87.03.010, 87.03.013, 87.03.045, 87.03.115, 87.03.200, 87.03.215, 87.03.260, 87.03.310, 87.03.490, 87.03.495, 87.03.505, 87.03.720, 87.03.725, 87.04.010, 87.04.030, 87.04.040, 87.22.230, 87.28.010, and 86.15.162; adding new sections to chapter 87.03 RCW; adding a new chapter to Title 87 RCW; repealing RCW 87.03.005, 87.03.020, 87.03.035, 87.03.040, 87.03.015, 87.03.016, 87.03.017, 87.03.018, 87.03.120, 87.03.125, 87.03.137, 87.03.138, 87.03.051, 87.03.071, 87.03.315, 87.03.320, 87.03.325, 87.03.330, 87.03.335, 87.03.340, 87.03.345, 87.03.350, 87.03.355, 87.03.360, 87.03.370, 87.03.500, 87.03.515, and 87.03.522; and providing an effective date.

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

NEW SECTION. Sec. 1.     A petition calling for the creation of an irrigation district, which is signed by fifty percent or a majority of the holders of title to, or evidence of title to, contiguously located land susceptible of "irrigation" and located within the proposed irrigation district, shall be filed with the county legislative authority of the county within which the proposed irrigation district, or the greatest portion of the irrigation district, is located.  If the proposed irrigation district is proposed to be located within more than one county, the county legislative authority receiving the petitions shall notify the other county legislative authorities of the proposal.  The petition shall set forth in general terms:  (1) A general statement of the probable source or sources of irrigation water and a brief outline of the plan of irrigation improvement; (2) the boundaries of the proposed irrigation district, which may be stated in terms of sections, townships, and ranges; and (3) any other matters deemed material by the petitioners.  The jurisdiction of the county legislative authority to proceed with consideration of the creation of the proposed irrigation district shall not be affected by the form of the petition or allegations on the petition.  The petition shall be accompanied by proof of land ownership that is sufficient in the opinion of the county legislative authority to evidence the ownership of land by the petitioners within the proposed irrigation district.  A petition calling for the creation of an irrigation district shall be accompanied by a sufficient bond, to be approved by the county legislative authority, in double the amount of the probable cost of organizing the irrigation district, and conditioned that the surety will pay all of the cost in case such organization shall not be effective.

          An irrigation district shall not be created within which a single property owner owns more than twenty percent of the total acreage within the proposed irrigation district.

NEW SECTION. Sec. 2.     Upon the filing of a valid petition calling for the creation of an irrigation district, the county legislative authority shall notify the director of the department of ecology of the proposal at least one hundred twenty days before the date scheduled for the public hearing on the proposal.  The department of ecology shall investigate the sufficiency of the source or sources of irrigation water supply and investigate the proposed boundaries of the irrigation district and the feasibility of the proposed irrigation projects.  The department of ecology shall make its report on these matters to the county legislative authority at least thirty-five days prior to the public hearing on the proposed irrigation district.  The expenses of the department of ecology in making this report shall be at the expense of the irrigation district if it is created, or otherwise at the expense of the surety.

NEW SECTION. Sec. 3.     The county legislative authority shall schedule a public hearing on the proposed irrigation district if the department of ecology's report indicates that the proposed irrigation projects are feasible.  If such a proposed irrigation district is located within more than one county, the county legislative authorities shall schedule a joint public hearing on the proposed irrigation district.  The county legislative authority may, on its own initiative, schedule a public hearing on the proposed irrigation district if the department of ecology's report indicates that  the proposed irrigation projects are not feasible.  The county legislative authorities of counties within which a proposed irrigation district is located may, on their own initiative, schedule a joint public hearing on the proposed irrigation district if the department of ecology's reports indicate that the proposed irrigation projects are not feasible.

          Notice of the public hearing shall be published in a newspaper in general circulation within the proposed irrigation district.  The notice shall be purchased in the manner of a general advertisement, not to be included with legal advertisements or with classified advertisements, and shall be published at least once, not more than ten nor less than three days before public hearing.  Notice of the public hearing also shall be posted in at least four conspicuous places within the proposed irrigation district at least ten days prior to the public hearing.  Additional notice shall be made as required in RCW 87.03.025.

          The notice shall contain the following:  (1) The date, time, and place of the public hearing; (2) a statement that an irrigation district is proposed to be created; (3) a general description of the proposed irrigation projects to be completed by the irrigation district; (4) a general description of the proposed irrigation district boundaries; and (5) a statement that all affected persons may appear and present their comments in favor of or against the creation of the proposed irrigation district.

NEW SECTION. Sec. 4.     The county legislative authority or authorities shall conduct the public hearing at the date, time, and place indicated in the notice.  Public hearings may be continued to other dates, times, and places specified by the county legislative authority or authorities before the adjournment of the public hearing.  Each county legislative authority may alter those portions of boundaries of the proposed irrigation district that are located within the county, but if territory is added that was not described in the original proposed boundaries, an additional hearing on the proposal shall be held with notice being made as provided in section 3 of this act.  The boundary alterations may not result in a proposed irrigation district constituting other than one contiguous area of territory.

          After receiving the public testimony, the county legislative authority may give the proposed irrigation district a name, determine whether the proposed irrigation district shall have a three or five-member board of directors, and cause an election to be held to authorize the creation of the irrigation district and elect the initial board of directors if it finds:

          (1) That creation of the irrigation district will be conducive to the public health, convenience and welfare;

          (2) That the creation of the irrigation district will be of special benefit to the lands included within the irrigation district; and

          (3) That the proposed irrigation improvements are feasible and economical, and that the benefits of these irrigation improvements exceed costs for the irrigation improvements.

          If the proposed irrigation district is located within two or more counties, the county legislative authorities may give the proposed irrigation district a name, determine whether the proposed irrigation district shall have a three or five-member board of directors, and cause an election to be held to authorize the creation of the irrigation district and elect the initial board of directors, upon making the findings set forth in subsections (1) through (3) of this section.

          The county legislative authority or authorities may choose not to allow such an election to be held by either failing to act or finding that one or more of these factors are not met.

NEW SECTION. Sec. 5.     The county legislative authority or authorities shall cause an election to be held on the question of creating the irrigation district and to elect the initial board of directors if findings as provided in section 4 of this act are made.  The county legislative authority or authorities shall designate a date for such election, which shall be an election by mailed ballot.  The persons allowed to vote on the creation of an irrigation district and on the initial board of directors shall be those persons who, if the irrigation district were created, would be qualified electors of the irrigation district.  The auditor or auditors of the counties within which the proposed irrigation district is located shall conduct the election and prepare a list of presumed eligible electors.

          Notices for the election shall be published and posted as provided in section 3 of this act.  Ballots shall be mailed to each of the eligible electors at least fourteen days before the date of the election.  To be valid, a ballot must be postmarked on or before the date of the election.  The irrigation district shall be created if the proposition to create the irrigation district is approved by at least a two-thirds majority vote of the electors voting on the proposition and the irrigation district may assume operations whenever the results of the election on the ballot proposition are certified and the initial board of directors assumes office.  At this election candidates for the office of irrigation district director shall run for director positions.  Each elector may cast one vote for a candidate for each of the three positions if a three-member board is to be created, or one vote for a candidate for each of the five positions if a five-member board is to be created.  The  candidate for   each position who receives the greatest number of votes for that position shall be elected to the initial board of directors and shall assume office immediately upon his or her election and qualification.

          If the irrigation district is created, the county or counties shall charge the irrigation district for the costs incurred in conducting the public hearings and the costs of the auditor or auditors related to preparing the list of presumed eligible electors, and conducting the elections to authorize the creation of the irrigation district and elect the initial board of directors pursuant to this section.  Such county actions shall be deemed to be special benefits of the property located within the irrigation district that are paid through the imposition of special assessments.  If the irrigation district is not created these costs shall be the expense of the surety.

NEW SECTION. Sec. 6.  A new section is added to chapter 87.03 RCW to read as follows:

          On and after January 1, 1989, irrigation districts may only operate irrigation, and related drainage and hydroelectric, systems.  Any irrigation district which operates other systems and improvements prior to January 1, 1989, shall divest itself of such systems and improvements, or it shall become a utility district as of January 1, 1989, subject to the provisions of chapter 87.-- RCW (sections 7 through 9 of this act).

          Irrigation districts may convey or transfer their systems and improvements to other units of local government authorized to provide the particular type of system and improvements so conveyed or transferred, and these other units of local government are authorized to acquire these other systems and improvements and operate these systems and improvements pursuant to their own laws.  Whenever bonds or warrants are associated with the systems and improvements so acquired, the local government acquiring the systems and improvements shall operate the systems and improvements under the laws and authorities of irrigation districts under which these systems and improvements were operated until the bonds or warrants are redeemed.

NEW SECTION. Sec. 7.     Any irrigation district which as of January 1, 1989, retains systems and improvements that were required by section 6 of this act to be conveyed or transferred, shall cease being an irrigation district and shall become a utility district operating pursuant to chapter 87.-- RCW (sections 7 through 9 of this act).  The utility district shall have the same boundaries as the irrigation district from which it was created.

          A utility district shall be governed by a three-member board of directors.  Utility districts shall operate pursuant to general election laws in Title 29 RCW.

          The county legislative authority of the county within which all or the greatest portion of a utility district is located shall appoint three persons to be the initial board of directors of the utility district.  The members of the initial board of directors of a utility district shall assume office immediately and shall serve until their successors are elected and qualified and assume office in accordance with RCW 29.04.170.

          Three persons shall be elected to the board of directors of each utility district at the 1989 state general election.  Candidates shall  run for three separate director positions.  The winning candidate receiving the greatest number of votes shall be elected to a six-year term of office, the winning candidate receiving the next greatest number of votes shall be elected to a four-year term of office, and the winning candidate receiving the least number of votes shall be elected to a two-year term of office.  Thereafter, directors shall be elected for six-year terms.

          Whenever a vacancy arises on the board of directors, the remaining two directors shall appoint a voter of the district to fill the remainder of the unexpired term.  If two or more vacancies occur, the county legislative authority of the county, in which all or the greatest portion of the utility district lies, shall appoint either one or two voters to serve as directors until two directors sit on the board of directors, and these two directors shall fill the final vacancy.

NEW SECTION. Sec. 8.     A utility district may provide the following services and improvements within its boundaries:

          (1) Irrigation;

          (2) Drainage;

          (3) Domestic water;

          (4) Sanitary sewer systems;

          (5) Street lighting;

          (6) Fire hydrants;

          (7) Assisting the owners of residential structures in financing the acquisition and installation of materials and equipment for the conservation or more efficient use of energy in such structures; and

          (8) The generation and sale of hydroelectric power, but the utility district may only distribute hydroelectric power on a retail basis if the utility district when it operated as an irrigation district distributed hydroelectric power on a retail basis.

NEW SECTION. Sec. 9.     A utility district may impose rates, charges, and fees for the provision of its activities and services, and issue revenue bonds payable from such rates, charges, and fees, in the same manner that an irrigation district imposes rates, charges, and fees, and issues revenue bonds.  A utility district may impose special assessments for the financing of its activities and services, and issue special assessment bonds payable from such special assessments, in the same manner authorized for special districts in chapter 85.36 RCW.

          A utility district shall assume the bonds and warrants of the irrigation district from which it was created and shall have the authority to impose special assessments to redeem these bonds and warrants under the laws in effect for irrigation districts when the bonds and warrants were issued.

        Sec. 10.  Section 2, chapter 138, Laws of 1923 and RCW 87.03.010 are each amended to read as follows:

          An irrigation district may be organized or maintained for any or all the following purposes within the district:

          (1) The construction or purchase of works, or parts of same, for the irrigation of lands ((within the operation of the district)) and related drainage needs.

          (2) The reconstruction, repair or improvement of existing irrigation works and related drainage works.

          (3) The operation or maintenance of existing irrigation works and related drainage works.

          (4) The construction, reconstruction, repair or maintenance of a system of diverting conduits from a natural source of water supply to the point of individual distribution for irrigation purposes.

          (5) The execution and performance of any contract authorized by law with any department of the federal government or of the state of Washington, for reclamation and irrigation purposes.

          (6) The performance of all things necessary to enable the district to exercise the powers herein granted.

        Sec. 11.  Section 1, chapter 185, Laws of 1979 ex. sess. and RCW 87.03.013 are each amended to read as follows:

          The legislature finds that a significant potential exists for the development of the hydroelectric generation capabilities of present and future irrigation systems serving irrigation districts.  The legislature also finds that the development of such hydroelectric generation capabilities is beneficial to the present and future electrical needs of the citizens of the state of Washington, furthers a state purpose and policy, and is in the public interest.  The legislature further finds that it is necessary to revise and add to the authority of irrigation districts to obtain the most favorable interest rates possible in the financing of irrigation district projects which serve the agricultural community and hydroelectric facilities.  It is the intent of the legislature to provide irrigation districts with the authority to develop these hydroelectric generation capabilities in connection with irrigation facilities.  Further, it is the intent of the legislature that the development of hydroelectric generation capabilities ((pursuant to this 1979 act)) not become ((the sole purpose or function of irrigation districts in existence on May 14, 1979, nor become)) a major function of an irrigation district((s created after that date.  Nothing herein shall authorize an irrigation district to sell electric power or energy to any)), providing more than twenty-five percent of the total revenues of the irrigation district.  The hydroelectric energy or power may only be used by the irrigation district for its needs or may be sold to private corporations, or municipal corporations ((not)), engaged in the distribution of electric power or energy.

        Sec. 12.  Section 4, chapter 57, Laws of 1955 as last amended by section 1, chapter 66, Laws of 1985 and RCW 87.03.045 are each amended to read as follows:

          ((In districts with two hundred thousand acres or more,)) A person eighteen years old, being a citizen of the United States and a resident of the state and who holds title or evidence of title to land in ((the)) an irrigation district or a proposed irrigation district shall be entitled to vote therein and shall be an elector of the district.  ((He shall be entitled to one vote)) Public corporations, partnerships, and domestic or foreign corporations, holding title or evidence of title to land in an irrigation district or proposed irrigation district shall be entitled to vote therein and shall be electors of the district.  Each eligible landowner shall receive two votes for the first ten acres of said land or fraction thereof, and ((one)) two additional votes for ((all of said land over)) each additional ten acres of said land or fraction thereof, not to exceed either one hundred votes or thirty percent of the entire eligible vote.  "Ownership" shall mean the aggregate of all acres owned by an elector, individually or jointly, within the district.  Where land has been sold under a real estate contract, the vendee or grantee shall be deemed to be the owner of such land for purposes of authorizing rights.

          A majority of the directors shall be residents of the county or counties in which the district is situated and all shall be electors of the district.  If more than one elector residing outside the county or counties is voted for as director, only that one who receives the highest number of votes shall be considered in ascertaining the result of the election.

          ((Where)) If there are multiple owners or joint owners of a single ownership, the owners shall decide among themselves what their votes shall be.  If the land is community property both the husband and wife may vote, and each shall be entitled to one-half of the eligible vote, if otherwise qualified.  An agent of a public or private corporation ((owning land in)) that is an elector of the district, duly authorized in writing, may vote on behalf of the corporation by filing with the election officers his or her instrument of authority.

          An elector resident in the district shall vote in the precinct in which he or she resides((,)); all others shall vote in the precinct nearest their residence.

No director may be qualified to take or remain in office unless he or she holds title or evidence of title to land within the irrigation district.

        Sec. 13.  Section 11, page 677, Laws of 1889-90 as last amended by section 1, chapter 262, Laws of 1983 and RCW 87.03.115 are each amended to read as follows:

          The directors of the district shall organize as a board and shall elect a president from their number, and appoint a secretary, who shall keep a record of their proceedings.  The office of the directors and principal place of business of the district shall be at some place in the county in which the organization was effected, to be designated by the directors.  The directors serving districts of five thousand acres or more shall hold a regular monthly meeting at their office on the first Tuesday in every month, or on such other day in each month as the board shall direct in its bylaws, and may adjourn any meeting from time to time as may be required  for the proper transaction of business.  Directors serving districts of less than five thousand acres shall hold at least quarterly meetings on a day designated by the board's bylaws, and may adjourn any meeting from time to time as may be required for the proper transaction of business.  Special meetings shall be called and conducted in the manner required by chapter 42.30 RCW.  All meetings of the directors must be public.  A majority of the directors shall constitute a quorum for the transaction of business, and in all matters requiring action by the board there shall be a concurrence of at least a majority of the directors.  All records of the board shall be open to the inspection of any electors during business hours.  The board shall have the power, and it shall be its duty, to adopt a seal of the district, to manage and conduct the business and affairs of the district, to make and execute all necessary contracts, to employ and appoint such agents, officers and employees as may be necessary and prescribe their duties, and to establish equitable bylaws, rules and regulations for the government and management of the district, and for the equitable distribution of water to the lands within the district, upon the basis of the beneficial use thereof, and generally to perform all such acts as shall be necessary to fully carry out the provisions of this chapter:  PROVIDED, That all water, the right to the use of which is acquired by the district under any contract with the United States shall be distributed and apportioned by the district in accordance with the acts of congress, and rules and regulations of the secretary of the interior until full reimbursement has been made to the United States, and in accordance with the provisions of said contract in relation thereto.  The bylaws, rules and regulations must be on file and open to inspection of any elector during regular business hours.  All leases, contracts, or other form of holding any interest in any state or other public lands shall be, and the same are hereby declared to be title to and evidence of title to lands and for all purposes within this act, shall be treated as the private property of the lessee or owner of the contractual or possessory interest:  PROVIDED, That nothing in this section shall be construed to affect the title of the state or other public ownership, nor shall any lien for such assessment attach to the fee simple title of the state or other public ownership.  The board of directors shall have authority to develop and to sell, lease, or rent the use of((:  (1))) water derived from the operation of the district water facilities to such municipal and quasi municipal entities, the state of Washington, and state entities and agencies, public and private corporations and individuals located within and outside the boundaries of the district and on such terms and conditions as the board of directors shall determine((; and (2) power derived from hydroelectric facilities authorized by RCW 87.03.015(1) as now or hereafter amended, to such municipal or quasi municipal corporations and cooperatives authorized to engage in the business of distributing electricity, electrical companies subject to the jurisdiction of the utilities and transportation commission, and other irrigation districts and on such terms and conditions as the board of directors shall determine)):  PROVIDED, No water shall be furnished for use outside of said district until all demands and requirements for water for use in said district are furnished and supplied by said district:  AND PROVIDED FURTHER, That as soon as any public lands situated within the limits of the district shall be acquired by any private person, or held under any title of private ownership, the owner thereof shall be entitled to receive his proportion of water as in case of other land owners, upon payment by him of such sums as shall be determined by the board, and at the time to be fixed by the board, which sums shall be such equitable amount as such lands should pay having regard to placing said lands on the basis of equality with other lands in the district as to benefits received, and giving credit if equitable for any sums paid as water rent by the occupant of said lands prior to the vesting of private ownership, and such lands shall also become subject to all taxes and assessments of the district thereafter imposed.

        Sec. 14.  Section 15, page 679, Laws of 1889-90 as last amended by section 213, chapter 167, Laws of 1983 and RCW 87.03.200 are each amended to read as follows:

          (1) At the election provided for in RCW 87.03.190, there shall be submitted to the electors of said district possessing the qualifications prescribed by law the question of whether or not the bonds of said district in the amount and of the maturities determined by the board of directors shall be issued.  If approved, bonds issued under the provisions of this act shall be ((serial bonds payable in legal currency of the United States in such series and amounts as shall be determined and declared by the board of directors in the resolution calling the election:  PROVIDED, That the first series)) issued and sold in accordance with chapter 39.46 RCW and shall mature not later than ((ten years and the last series not later than)) forty years from the date thereof:  PROVIDED ((FURTHER)), That bonds, authorized by a special election held in the district under the provisions of a former statute, which has subsequent to said authorization been amended, but not issued prior to the amendment of said former statute, may be issued in the form provided in said former statute, and any such bonds heretofore or hereafter so issued and sold are hereby confirmed and validated.

          Notice of such bond election must be given by publication of such notice in some newspaper published in the county where the office of the board of directors of such district is required to be kept, once a week for at least two weeks (three times).  Such notices must specify the time of holding the election, and the amount and maturities of bonds proposed to be issued; and said election must be held and the results thereof determined and declared in all respects as nearly as practicable in conformity with the provisions of law governing the election of the district officers:  PROVIDED, That no informality in conducting such election shall invalidate the same, if the election shall have been otherwise fairly conducted.  At such election the ballots shall contain the words "Bonds Yes" and "Bonds No," or words equivalent thereto.  If a majority of the votes cast are cast "Bonds Yes," the board of directors shall thereupon have authority to cause bonds in said amount and maturities to be issued.  If the majority of the votes cast at any bond election are "Bonds No," the result of such election shall be so declared and entered of record; but if contract is made or is to be made with the United States as in RCW 87.03.140 provided, and bonds are not to be deposited with the United States in connection with such contract, the question submitted at such special election shall be whether contract shall be entered into with the United States.  The notice of election shall state under the terms of what act or acts of congress contract is proposed to be made, and the maximum amount of money payable to the United States for construction purposes exclusive of penalties and interest.  The ballots for such election shall contain the words "Contract with the United States Yes" and "Contract with the United States No," or words equivalent thereto.  And whenever thereafter said board, in its judgment, deems it for the best interest of the district that the question of issuance of bonds for said amount, or any amount, or the question of entering into a contract with the United States, shall be submitted to said electors, it shall so declare, by resolution recorded in its minutes, and may thereupon submit such question to said electors in the same manner and with like effect as at such previous election.

          (2) ((All bonds issued under this act shall bear interest at such rate or rates as the board of directors may determine, payable semiannually on the first day of January and of July of each year.  The principal and interest shall be payable at the office of the county treasurer of the county in which the office of the board of directors is situated, or if the board of directors shall so determine at the fiscal agency of the state of Washington in New York City, said place of payment to be designated in the bond.  The bonds may be in such denominations as the board of directors may in its discretion determine, except that bonds other than bond number one of any issue shall be in a denomination that is a multiple of one hundred dollars.  Such bonds may be in any form, including bearer bonds or registered bonds as provided in RCW 39.46.030.  Said bonds shall be negotiable in form, signed by the president and secretary, and the seal of the district shall be affixed thereto.  The printed, engraved, or lithographed facsimile signatures of the president and secretary of the district's board of directors shall be sufficient signatures on the bonds or any coupons:  PROVIDED, That such facsimile signatures on the bonds may be used only after the filing, by the officer whose facsimile signature is to be used, with the secretary of state of his manual signature certified by him under oath, whereupon that officer's facsimile signature has the same legal effect as his manual signature:  PROVIDED, FURTHER, That either the president of the board of directors' or the secretary's signature on the bonds shall be manually subscribed:  AND PROVIDED FURTHER, That whenever such facsimile reproduction of the signature of any officer is used in place of the manual signature of such officer, the district's board of directors shall specify in a written order or requisition to the printer, engraver, or lithographer the number of bonds or any coupons upon which such facsimile signature is to be printed, engraved, or lithographed and the manner of numbering the bonds or any coupons upon which such signature shall be placed.  Within ninety days after the completion of the printing, engraving, or lithographing of such bonds or any coupons, the plate or plates used for the purpose of affixing the facsimile signature shall be destroyed, and it shall be the duty of the district's board of directors, within ninety days after receipt of the completed bonds or any coupons, to ascertain that such plate or plates have been destroyed.  Every printer, engraver, or lithographer who, with the intent to defraud, prints, engraves, or lithographs a facsimile signature upon any bond or any coupon without written order of the district's board of directors, or fails to destroy such plate or plates containing the facsimile signature upon direction of such issuing authority, shall be guilty of felony.

          (3))) Whenever the electors shall vote to authorize the issuance of bonds of the district such authorization shall nullify and cancel all unsold bonds previously authorized, and if the question is submitted to and carried by the electors at the bond election, any bond issue may be exchanged in whole or in part, at par, for any or all of a valid outstanding bond issue of the district when mutually agreeable to the owner or owners thereof and the district, and the amount of said last bond issue in excess, if any, of that required for exchange purposes, may be sold as in the case of an original issue.  The bonds of any issue authorized to be exchanged in whole or in part for outstanding bonds shall state on their face the amount of such issue so exchanged, and shall contain a certificate of the treasurer of the district as to the amount of the bonds exchanged, and that said outstanding bonds have been surrendered and canceled:  PROVIDED FURTHER, That where bonds have been authorized and unsold, the board of directors may submit to the qualified voters of the district the question of canceling said previous authorization, which question shall be submitted upon the same notice and under the same regulations as govern the submission of the original question of authorizing a bond issue.  At such election the ballots shall contain the words "Cancellation Yes," and "Cancellation No," or words equivalent thereto.  If at such election a majority of the votes shall be "Cancellation Yes," the said issue shall be thereby canceled and no bonds may be issued thereunder.  If the majority of said ballots shall be "Cancellation No," said original authorization shall continue in force with like effect as though said cancellation election had not been held:  PROVIDED, That bonds deposited with the United States in payment or in pledge may call for the payment of such interest at such rate or rates, may be of such denominations, and call for the repayment of the principal at such times as may be agreed upon between the board and the secretary of the interior.

          (((4) Each issue shall be numbered consecutively as issued, and the bonds of each issue shall be numbered consecutively and bear date at the time of their issue.  The bonds may be in any form, including bearer bonds or registered bonds as provided in RCW 39.46.030.  Said bonds shall express upon their face that they were issued by authority of this act, stating its title and date of approval, and shall also state the number of issue of which such bonds are a part.  In case the money received by the sale of all bonds issued be insufficient for the completion of plans of the canals and works adopted, and additional bonds be not voted, or a contract calling for additional payment to the United States be not authorized and made, as the case may be, it shall be the duty of the board of directors to provide for the completion of said plans by levy of assessments therefor.  It shall be lawful for any irrigation districts which have heretofore issued and sold bonds under the law then in force, to issue in place thereof an amount of bonds not in excess of such previous issue, and to sell the same, or any part thereof, as hereinafter provided, or exchange the same, or any part thereof, with the owners of such previously issued bonds which may be outstanding, upon such terms as may be agreed upon between the board of directors of the district and the holders of such outstanding bonds:  PROVIDED, That the question of such reissue of bonds shall have been previously voted upon favorably by the legally qualified electors of such district, in the same manner as required for the issue of original bonds, and the said board shall not exchange any such bonds for a less amount in par value of the bonds received; all of such old issue in place of which new bonds are issued shall be destroyed whenever lawfully in possession of said board.  Bonds issued under the provisions of this section may, when so authorized by the electors, include a sum sufficient to pay the interest thereon for a period not exceeding the first four years.  Whenever an issue of bonds shall have been authorized pursuant to law, and any of the earlier series shall have been sold, and the later series, or a portion thereof, remain unsold, the directors may sell such later series pursuant to law, or such portion thereof as shall be necessary to pay the earlier series, or said directors may exchange said later series for the earlier series at not less than the par value thereof, said sale or exchange to be made not more than six months before the maturity of said earlier series and upon said exchange being made the maturing bonds shall be disposed of as hereinbefore provided in the case of bonds authorized to be exchanged in whole or in part for outstanding bonds.

          (5) Notwithstanding subsections (1) through (4) of this section, such bonds may be issued and sold in accordance with chapter 39.46 RCW.))

        Sec. 15.  Section 17, page 681, Laws of 1889-90 as last amended by section 215, chapter 167, Laws of 1983 and RCW 87.03.215 are each amended to read as follows:

          Said bonds and interest thereon and all payments due or to become due to the United States or the state of Washington under any contract between the district and the United States or the state of Washington accompanying which bonds of the district have not been deposited with the United States or the state of Washington, as in RCW 87.03.140 provided, shall be paid by revenue derived from an annual assessment upon the real property ((of)) within the district, ((and all the real property in the district shall be and remain liable to be assessed for such payments until fully paid as hereinafter provided.  And)) as provided in RCW 87.03.260.

In addition to this provision and the other provisions herein made for the payment of said bonds and interest thereon as the same may become due, said bonds, or the contract with the United States or the state of Washington accompanying which bonds have not been deposited with the United States or the state of Washington, shall become a lien upon all the water rights and other property acquired by any irrigation district formed under the provisions of this chapter, and upon any canal or canals, ditch or ditches, flumes, feeders, storage reservoirs, machinery and other works and improvements acquired, owned or constructed by said irrigation district, and if default shall be made in the payment of the principal of said bonds or interest thereon, or any payment required by the contract with the United States, or the state of Washington, according to the terms thereof, the owner of said bonds, or any part thereof or the United States or the state of Washington as the case may be, shall have the right to enter upon and take possession of all the water rights, canals, ditches, flumes, feeders, storage reservoirs, machinery, property and improvements of said irrigation district, and to hold and control the same, and enjoy the rents, issues and profits thereof, until the lien hereby created can be enforced in a civil action in the same manner and under the same proceedings as given in the foreclosure of a mortgage on real estate.  This section shall apply to all bonds heretofore issued or any contract heretofore made with the United States, or which may hereafter be issued or made by any district:  PROVIDED, That when any such contract made after December 1, 1981, between any district and the United States or the state of Washington covers only the real property in a portion or portions of the district, all payments due or to become due to the United States or the state of Washington shall be paid by revenue derived from an annual assessment upon the real property only in that portion or portions of the district covered by the contract and the real property shall be and remain liable to be assessed for such payments until fully paid and any assessment  lien which attaches thereto shall be the exclusive lien notwithstanding other liens provided for in this section.  In the event of a contract between the district and the United States or the state of Washington accompanying which bonds of the district have not been deposited with the United States or the state of Washington as provided in RCW 87.03.140 and the contract covers real property in only a portion or portions of the district, the question of whether the district should enter the contract shall be submitted only to those qualified electors who hold title or evidence of title to real property within that portion or portions of the district and in the same manner as provided in RCW 87.03.200.

        Sec. 16.  Section 22, page 683, Laws of 1889-90 as last amended by section 216, chapter 167, Laws of 1983 and RCW 87.03.260 are each amended to read as follows:

          The board of directors shall, in each year before said roll is delivered by the secretary to the respective county treasurers, ((levy an)) impose special assessments sufficient ((to raise)) for: (1) The ensuing ((annual)) year's interest and redemption costs on the outstanding bonds, and all payments due or to become due in the ensuing year to the United States or the state of Washington under any contract between the district and the United States or the state of Washington accompanying which bonds of the district have not been deposited with the United States or the state of Washington as in this act provided((.  Beginning in the year preceding the maturity of the first series of the bonds of any issue, the board must from year to year increase said assessment for the ensuing years in an amount sufficient to pay and discharge the outstanding bonds as they mature.  Similar levy and assessment shall be made for the expense fund which shall include operation and maintenance costs for the ensuing year.  The board shall also at the time of making the annual levy, estimate the amount of all probable delinquencies on said levy and shall thereupon levy a sufficient amount to cover the same and a further amount sufficient to cover any deficit that may have resulted from delinquent assessments for any preceding year.  The board shall also, at the time of making the annual levy, estimate the amount of the assessments to be made against lands owned by the district, including local improvement assessments, and shall levy a sufficient amount to pay said assessments)), which special assessments shall be placed into the appropriate fund or funds; (2) the ensuing year's operating, maintenance, and capital costs that are not financed by borrowing, which special assessments shall be placed into the expense fund; (3) where applicable, local improvement district special assessments or installments, which shall be placed into the appropriate fund or funds; and (4) maintaining a surplus fund, where special assessments for such purpose do not exceed twenty-five percent of the remainder of the special assessments for that year.  Money in the surplus fund may be used for any of the irrigation district's authorized purposes.

The "last acre" doctrine is hereby abolished.  No property may have its special assessments for any year or years increased by more than twenty-five percent as a result of the failure of the owners of other property to pay their special assessments and the acquisition of property by the irrigation district.

Special assessments to be used for irrigation purposes may not be imposed on land that is not capable of being irrigated by the district's irrigation facilities or proposed irrigation facilities.  Special asessments to be used for drainage purposes may not be imposed on land that is not capable of being served by the district's drainage facilities or proposed drainage facilities.

          All lands owned by the district shall be exempt from ((general state and county)) property taxes:  PROVIDED, HOWEVER, That in the event any lands, and any improvements located thereon, acquired by the district by reason of the foreclosure of irrigation district assessments, shall be by said district resold on contract, then and in that event, said land, and any such improvements, shall be by the county assessor immediately placed upon the tax rolls for taxation as real property and shall become subject to general property taxes from and after the date of said contract, and the secretary of the said irrigation district shall be required to immediately report such sale within ten days from the date of said contract to the county assessor who shall cause the property to be entered on the tax rolls as of the first day of January following.

          ((The board may also at the time of making the said annual levy, levy an amount not to exceed twenty-five percent of the whole levy for the said year for the purpose of creating a surplus fund.  This fund may be used for any of the district purposes authorized by law.))  The special assessments, when collected by the county treasurer, shall constitute a special fund, or funds, as the case may be, to be called respectively, the "Bond Fund of .......... Irrigation District," the "Contract Fund of .......... Irrigation District," the "Expense Fund of .......... Irrigation District," the " Warrant Fund of .......... Irrigation District," the "Surplus Fund of .......... Irrigation District".

          If the annual assessment roll of any district has not been delivered to the county treasurer on or before the 15th day of January in the year 1927, and in each year thereafter, ((he)) the treasurer shall notify the secretary of the district by registered mail that said assessment roll must be delivered to the office of the county treasurer forthwith.  If said assessment roll is not delivered within ten days from the date of mailing of said notice to the secretary of the district, or if said roll when delivered is not equalized and the required assessments levied as required by law, or if for any reason the required assessment or levy has not been made, the county treasurer shall immediately notify the legislative authority of the county in which the office of the board of directors is situated, and said county legislative authority shall cause an assessment roll for the said district to be prepared and shall equalize the same if necessary and ((make the levy)) impose the special assessments required by this chapter in the same manner and with like effect as if the same had been equalized and made by the said board of directors, and all expenses incident thereto shall be borne by the district.  In case of neglect or refusal of the secretary of the district to perform the duties imposed by law, then the treasurer of the county in which the office of the board of directors is situated must perform such duties, and shall be accountable therefor, on his or her official bond, as in other cases.

          ((At the time of making the annual levy in the year preceding the final maturity of any issue of district bonds, the board of directors shall levy a sufficient amount to pay and redeem all bonds of said issue then remaining unpaid.  All surplus remaining in any bond fund after all bonds are paid in full must be transferred to the surplus fund of the district.))

          Any surplus moneys in the surplus fund or any surplus moneys in ((the bond)) any other fund, when so requested by the board of directors, shall be invested by the treasurer of said county ((under the direction of said board of directors in United States bonds or bonds of the state of Washington, or any bonds pronounced by the treasurer of the state of Washington as valid security for the deposit of public funds, and in addition thereto any bonds or warrants of said district, all of which shall be kept in the surplus fund until needed by the district for the purposes authorized by law)) as provided in RCW 36.29.020, or transferred to the state treasurer for investment as provided in chapter 43.250 RCW.

        Sec. 17.  Section 25, page 684, Laws of 1889-90 as last amended by section 87, chapter 469, Laws of 1985 and RCW 87.03.310 are each amended to read as follows:

          On or before the thirty-first day of December of each year, the treasurer of each county shall post and publish the delinquency list, which shall contain the names of persons to whom the property is assessed and a description of the property delinquent and the amount of the assessment and costs due, opposite each name and description.

           The treasurer shall append to and post with the list a notice, at least twenty days before the sale, that unless the assessments together with costs and accrued interest are paid, the property will be sold at public auction.  One copy thereof shall be posted in the county courthouse, and the treasurer shall provide four copies to the irrigation district in which the property is located.  The irrigation district shall post one copy in the irrigation district office and three copies in public places in the district.  The notice shall be published once a week for three successive weeks in a newspaper of general circulation in the county.  Notices shall indicate that liens on the delinquent property shall be foreclosed, describe the procedure by which such liens will be foreclosed, and designate the time and place of ((sale.  The time of sale)) foreclosure action which shall be not less than twenty-one nor more than thirty-five days from the date of posting and from the date of the first publication of the notice thereof((, and the place of the sale shall be at some point designated by the treasurer.  At least ten days prior to the date of the public auction, the treasurer shall send by first class mail a notice to the taxpayer or owner of record of the land having a delinquent assessment.  The notice shall contain a statement of the amount of the delinquent assessment plus interest as provided in RCW 87.03.270, as now or hereafter amended, accruing from the date of delinquency; a ten dollar delinquency charge owing on the land; the time, date, and place of the sale of properties having delinquent assessments; and a statement that failure to pay the assessment prior to the date of sale will result in a sale of the property)).  In all other aspects the foreclosure shall be in accordance with foreclosures on delinquent special assessments imposed by a city under chapter 35.50 RCW.

        Sec. 18.  Section 12, chapter 162, Laws of 1917 as last amended by section 223,  chapter 167, Laws of 1983 and RCW 87.03.490 are each amended to read as follows:

          (((1))) If decision shall be rendered in favor of the improvement, the board shall enter an order establishing the boundaries of the said improvement district and shall adopt plans for the proposed improvement and determine the number of annual installments not exceeding fifty in which the cost of said improvement shall be paid.  The cost of said improvement shall be provided for by the issuance of local improvement district bonds of the district from time to time, therefor, either directly for the payment of the labor and material or for the securing of funds for such purpose, or by the irrigation district entering into a contract with the United States or the state of Washington, or both, to repay the cost of said improvement.  Said bonds shall ((bear interest at a rate or rates determined by the board, payable semiannually, and shall state upon their face that they are issued as bonds of the irrigation district; that all lands within said local improvement district shall be primarily liable to assessment for the principal and interest of said bonds and that said bonds are also a general obligation of the said district.  The bonds may be in such denominations as the board of directors may in its discretion determine, except that bonds other than bond number one of any issue shall be in a denomination that is a multiple of one hundred dollars, and no bond shall be sold for less than par)) be issued and sold in accordance with chapter 39.46 RCW.  Special assessments, or installments on the special assessments, shall be collected by the treasurer together with other special assessments, as provided in RCW 87.03.260, and shall be placed in a special fund from which these bonds exclusively are payable.  Property outside of the local improvement district shall not be liable for these special assessments or installments on the special assessments.

          Any contract entered into for said local improvement by the district with the United States or the state of Washington, or both although all the lands within said local improvement district shall be primarily liable to assessment for the principal and interest thereon, shall be a general obligation of the irrigation district. Such bonds may be in any form, including bearer bonds or registered bonds as provided in RCW 39.46.030.

          No election shall be necessary to authorize the issuance of such local improvement bonds or the entering into of such a contract.  ((Such bonds, when issued, shall be signed by the president and secretary of the irrigation district with the seal of said district affixed.  The printed, engraved, or lithographed facsimile signatures of the president and secretary of the district's board of directors shall be sufficient signatures on the bonds or any coupons:  PROVIDED, That such facsimile signatures on the bonds may be used only after the filing, by the officer whose facsimile signature is to be used, with the secretary of state of his manual signature certified by him under oath, whereupon that officer's facsimile signature has the same legal effect as his manual signature:  PROVIDED, FURTHER, That either the president of the board of directors' or the secretary's signature on the bonds shall be manually subscribed:  AND PROVIDED FURTHER, That whenever such facsimile reproduction of the signature of any officer is used in place of the manual signature of such officer, the district's board of directors shall specify in a written order or requisition to the printer, engraver, or lithographer the number of bonds or any coupons upon which such facsimile signature is to be printed, engraved, or lithographed and the manner of numbering the bonds or any coupons upon which such signature shall be placed.  Within ninety days after the completion of the printing, engraving, or lithographing of such bonds or any coupons, the plate or plates used for the purpose of affixing the facsimile signature shall be destroyed, and it shall be the duty of the district's board of directors, within ninety days after receipt of the completed bonds or any coupons, to ascertain that such plate or plates have been destroyed.  Every printer, engraver, or lithographer who, with the intent to defraud, prints, engraves, or lithographs a facsimile signature upon any bond or coupon without written order of the district's board of directors, or fails to destroy such plate or plates containing the facsimile signature upon direction of such issuing authority, shall be guilty of felony.))

          The proceeds from the sale of such bonds shall be deposited with the treasurer of the district, who shall place them in a special fund designated "Construction fund of local improvement district number ______."

          Whenever such improvement district has been organized, the boundaries thereof may be enlarged to include other lands which can be served or will be benefited by the proposed improvement upon petition of the owners thereof and the consent of the United States or the state of Washington, or both, in the event the irrigation district has contracted with the United States or the state of Washington, or both, to repay the cost of the improvement:  PROVIDED, That at such time the lands so included shall pay their equitable proportion upon the basis of benefits of the improvement theretofore made by the said local improvement district and shall be liable for the indebtedness of the said local improvement district in the same proportion and same manner and subject to assessment as if said lands had been incorporated in said improvement district at the beginning of its organization.

          (((2) Notwithstanding subsection (1) of this section, such bonds may be issued and sold in accordance with chapter 39.46 RCW.))

        Sec. 19.  Section 13, chapter 162, Laws of 1917 as last amended by section 3, chapter 70, Laws of  1970 ex. sess. and RCW 87.03.495 are each amended to read as follows:

          The cost of the improvement and of the operation and maintenance thereof, if any, shall be especially assessed against the lands within such local improvement district in proportion to the benefits accruing thereto, and shall be levied and collected in the manner provided by law for the levy and collection of land assessments or toll assessments or both such form of assessments.

          All provisions for the assessment, equalization, levy and collection of special assessments for irrigation district purposes, including RCW 87.03.260, shall be applicable to special assessments and installments for local improvements except that no election shall be required to authorize said improvement or the expenditures therefor or the bonds issued to meet the cost thereof or the contract authorized in RCW 87.03.485 to repay the cost thereof.  Special assessments when collected by the county treasurer for the payment for the improvement of any local improvement district shall constitute a special fund to be called "bond redemption or contract repayment fund of local improvement district No. ______."

          Bonds issued under this chapter shall be eligible for disposal to and purchase by the director of the department of ((conservation and development)) ecology under the provisions of the state reclamation act.

          The cost or any unpaid portion thereof, of any such improvement, charged or to be charged or assessed against any tract of land may be paid in one payment under and pursuant to such rules as the board of directors may adopt, and all such amounts shall be paid over to the county treasurer who shall place the same in the appropriate fund.  No such payment shall thereby release such tract from liability to assessment for deficiencies or delinquencies of the levies in such improvement district, subject to the limitations provided in RCW 87.03.260, until all of the bonds or the contract, both principal and interest, issued or entered into for such local improvement district have been paid in full.  The receipt given for any such payment shall have the foregoing provision printed thereon.  The amount so paid shall be included on the annual assessment roll for the current year, provided, such roll has not then been delivered to the treasurer, with an appropriate notation by the secretary that the amount has been paid.  If the roll for that year has been delivered to the treasurer then the payment so made shall be added to the next annual assessment roll with appropriate notation that the amount has been paid.

        Sec. 20.  Section 1, chapter 128, Laws of 1935 as amended by section 5, chapter 70, Laws of 1970 ex. sess. and RCW 87.03.505 are each amended to read as follows:

          Whenever, by reason of the sale of land within a local improvement district for unpaid taxes or special assessments, or for any other reason, it may appear apparent that the remaining lands within any such local improvement district are and will be unable to pay out the cost of such improvement or the bond issue or contract indebtedness therefor, the landowners of the local improvement district may petition the directors of the irrigation district or the directors of the district may upon their own initiative, and either upon receipt of such petition or the passing of such resolution the directors of the irrigation district shall cause a complete survey to be made of the affairs of the local improvement district pertaining to the payment of the cost of said improvement, and shall determine the amount of property remaining in the hands of private owners that is still subject to assessment for the improvement, the amount of land standing in the name of the district which is subject to assessment for said improvement and the amount of any lands which may have been entirely removed from the liability of any such special assessments,  and such other and pertinent data as may be necessary, in order to determine the ability of said remaining private property to pay the remaining balance of the cost of said improvement, and if as a result thereof it shall appear that the remaining private property will be unable to pay the said remaining cost of the improvement, subject to the limitations provided in RCW 87.03.260, the said board of directors shall determine what amount and to what extent the remaining private property will be able to equitably pay on the cost of said improvement which shall include the privately owned property and district owned property and such remaining portion of the cost of said improvement which the directors find said land can equitably pay and in such amounts as in the judgment of the directors shall appear equitable after taking all circumstances into consideration, subject to the limitations provided in RCW 87.03.260, shall be assessed against the lands within such local improvement district and shall be levied and collected in the manner as in this act provided for the assessment and collection of construction costs and shall be payable over a period of not more than twenty years.  Notwithstanding all provisions in this chapter contained for the assessment, equalization, levy and collection of special assessments no election shall be required to authorize the issue of bonds or the entering into a contract to cover the cost thereof.  Special assessments when collected by the county treasurer for the payment shall constitute a special fund to be called "bond redemption or contract repayment fund of local improvement district No. ..... ."

          The costs or any unpaid portion thereof, of any such special assessment, charged or to be charged or assessed against any tract of land may be paid in one payment by the owner or by any one acting for such owner, under and pursuant to such rules as the board of directors may adopt, and all such amounts shall be paid to the county treasurer who shall place the same in the appropriate fund.  Upon the payment in full of the amount charged or to be charged or assessed against any particular tract of land, said tract of land shall be thereupon entirely, fully and finally released of any and all further liability by reason of such improvement and the amount charged or to be charged and assessed against each tract of land as designated by said board shall be the limit of the liability of said tract of land for the costs of said improvement((, except insofar as said land may be additionally liable by reason of being within the irrigation district and being liable for its portion of the general obligation of the district)).  The determination of the amount charged or to be charged or assessed against any tract of land may be appealed by the owner of said tract from the decision of the board of directors to the superior court of the county in which the property is located at any time within twenty days from the date of the passage of a resolution by the board of directors with reference thereto:  PROVIDED, HOWEVER, That in the event said irrigation district shall have borrowed or have an application on file for the borrowing of money from the reconstruction finance corporation, or its successor, or has entered into a contract with the United States or the state of Washington, or both, then in that event before any such reassessment shall be made it shall first receive the approval of said reconstruction finance corporation, or its successor or the United States or the state of Washington, or both, as the case may be.

        Sec. 21.  Section 10, chapter 94, Laws of 1957 as amended by section 1, chapter 208, Laws of 1977 ex. sess. and RCW 87.03.720 are each amended to read as follows:

          The board of directors of an irrigation district shall, after being notified by the legislative authority of the county or counties within which the irrigation district lies of the filing of the petition therefor, have the power to assent to the proposed merger with the irrigation district of that portion of a drainage improvement district, joint drainage improvement district,  or consolidated drainage improvement district, ((or sewer district)) within its boundaries at a hearing duly called by the board to consider the proposed merger if sufficient objections thereto have not been presented, as hereinafter provided.

        Sec. 22.  Section 11, chapter 94, Laws of 1957 as amended by section 2, chapter 208, Laws of 1977 ex. sess. and RCW 87.03.725 are each amended to read as follows:

          The secretary of the board of directors shall cause a notice of the proposed merger to be posted and published in the same manner and for the same time as notice of a special election for the issue of bonds.  The notice shall state that a petition has been filed with the  legislative authority of the county or counties within which the irrigation districts lies by the board of supervisors of the drainage improvement district, joint drainage improvement district, or consolidated drainage improvement district ((or by the board of commissioners of a sewer district)) requesting that the drainage improvement district, joint drainage improvement district, or consolidated drainage improvement district((, or sewer district)) be merged with the irrigation district or irrigation districts, the names of the petitioners and the prayer thereof, and it shall notify all persons interested in the irrigation district to appear at the office of the board at the time named in the notice, and show cause in writing why the proposed merger should not take place.  The time to show cause shall be the regular meeting of the board of directors of the irrigation district next after the expiration of the time for the publication of the notice.

        Sec. 23.  Section 1, chapter 13, Laws of 1939 as amended by section 1, chapter 192, Laws of 1961 and RCW 87.04.010 are each amended to read as follows:

          An irrigation district comprising two hundred thousand or more acres, or irrigation districts comprising less than two hundred thousand acres which have followed the optional procedure specified in this ((amendatory act)) chapter, shall be divided into divisions of as nearly equal area as practical, consistent with being fair and equitable to the electors of the district.  The division of an irrigation district into director divisions shall be done by the county legislative authority of the county in which all or the greatest portion of the irrigation district is located.  The number of divisions shall be the same as the number of directors, which shall be numbered first, second, third, etc.  One director, who shall be an elector of the division, shall be elected for each division of the district by the electors of his or her division.  A district elector shall be considered an elector of the division in which he or she holds title to or evidence of title to land.  An elector holding title to or evidence of title to land in more than one division shall be considered an elector of the division nearest his or her place of residence.

        Sec. 24.  Section 3, chapter 13, Laws of 1939 as amended by section 3, chapter 192, Laws of 1961 and RCW 87.04.030 are each amended to read as follows:

          When a new irrigation district comprising more than two hundred thousand acres has been authorized, pursuant to law, the ((board of)) county ((commissioners)) legislative authority of the county within which all or the greatest portion of the irrigation district is located shall, within thirty days from the ((canvassing of the returns)) certification of the results of the election creating the irrigation district, divide the district into director divisions equal to the number of directors, and in the resolution organizing the district, ((they)) the county legislative authority shall include an order designating the director divisions and describing the boundaries thereof.  When a petition for the formation of a new irrigation district comprising less than two hundred thousand acres has been filed pursuant to law and ((said)) the petition includes a request that the district be divided into director divisions, the ((board of)) county ((commissioners)) legislative authority of the county within which all or the greatest portion of the irrigation district is located shall divide the district into director divisions as provided in this section unless objections to director divisions are made at the public hearing on the creation of the proposed irrigation district that is held ((pursuant to RCW 87.03.020; and)) by the county legislative authority.  In the event objections to director divisions are made and not withdrawn, the ((board of)) county ((commissioners)) legislative authority may deny the request for director divisions or if it determines that it is to the best interests of the district that director divisions be established, it may, in its order calling an election for organization of the district, include a separate proposition on the question of director divisions; and if a majority of the votes cast on ((said)) the proposition are in favor of director divisions, then the resolution organizing the district shall include an order designating the director divisions and describing the boundaries thereof.

        Sec. 25.  Section 4, chapter 13, Laws of 1939 as amended by section 4, chapter 192, Laws of 1961 and RCW 87.04.040 are each amended to read as follows:

          Proceedings to divide or redivide a district comprising less than two hundred thousand acres into director divisions, or to redivide the director divisions heretofore established for districts comprising more than two hundred thousand acres, may be initiated by a petition filed with the county ((commissioners)) legislative authority of the county in which ((the principal office of the district is situated)) all or the greatest portion of the irrigation district is located.  The petition shall designate the name of the district and pray that it be divided into director divisions, or that existing director divisions be redivided, and shall be signed by at least two-thirds of the directors of the district or in lieu thereof by at least the lesser of twenty electors or ten percent of the electors of the district.  A petition to divide or redivide a district shall not be filed more than once in each five-year period except for redivisions necessitated by reason of a change in the total number of directors of the district.  The county legislative authority of the county in which all or the greatest portion of the irrigation district is located shall hold a public hearing on the proposal, and divide or redivide the director divisions as it sees fit consistent with RCW 87.04.010.

        Sec. 26.  Section 31, chapter 120, Laws of 1929 as amended by section 4, chapter 42, Laws of 1931 and RCW 87.22.230 are each amended to read as follows:

          No tract of land shall be assessed by the district during the life of the proposed bonds when issued for the purpose of paying the principal of or interest on said bonds in an aggregate amount in excess of ((double)) the amount determined in the decree fixing maximum benefits under subdivision (1) of RCW 87.22.040, together with the interest on the principal computed at the rates specified in the bond, except as provided in RCW 87.03.260, and any assessment in excess thereof shall be void.  ((In addition to its regular normal assessment for the principal or interest of said bonds, no tract of land shall be assessed in any one year to make up past or anticipated delinquencies of assessments or both levied or to be levied against the lands in the district for said purposes, in excess of fifty percent of its regular normal assessment for said bonds.))

        Sec. 27.  Section 1, chapter 57, Laws of 1949 as last amended by section 8, chapter 185, Laws of 1979 ex. sess. and RCW 87.28.010 are each amended to read as follows:

          The board of directors of any irrigation district in this state which is furnishing or may furnish irrigation water, ((domestic water,)) electric power, or drainage ((or sewerage)) services for which rates or tolls and charges are imposed or contract payments made, or any combination of such services, shall have authority to issue and sell bonds of the district payable from revenues derived from district rates or tolls and charges or contract payments for such service or services, and to pledge such revenues from one or more of such services for the payment and retirement of bonds issued for irrigation water, ((domestic water,)) electric power, and drainage ((or sewer)) improvements:  PROVIDED, That nothing in this section shall authorize a district which is not on March 8, 1973, engaged in providing electrical service permission to pledge revenue from water and sewer service to support the issuance of revenue bonds for the acquisition or construction of electrical power facilities other than those authorized by RCW 87.03.015(1), as now or hereafter amended.

        Sec. 28.  Section 7, chapter 315, Laws of 1983 and RCW 86.15.162 are each amended to read as follows:

          If the delinquent assessment remains unpaid on the date fixed for the sale under RCW 86.09.496 and 86.09.499, the parcel shall be sold in the same manner as provided under RCW 87.03.310 ((through 87.03.330.  If the district reconveys the land under RCW 87.03.325 due to accident, inadvertence, or misfortune, however, interest shall accrue not at the rate provided in RCW 87.03.270, but at the rate provided in RCW 86.09.505)).

NEW SECTION. Sec. 29.    Sections 1 through 5 of this act shall be added to chapter 87.03 RCW.

NEW SECTION. Sec. 30.    Sections 7 through 9 of this act shall constitute a new chapter in Title 87 RCW.

NEW SECTION. Sec. 31.  The following acts of parts of acts are each repealed:

                   (1) Section 1, page 671, Laws of 1889-90, section 1, chapter 165, Laws of 1895, section 1, chapter 179, Laws of 1915, section 1, chapter 162, Laws of 1917, section 1, chapter 138, Laws of 1923 and RCW 87.03.005;

          (2) Section 2, page 671, Laws of 1889-90, section 2, chapter 165, Laws of 1895, section 1, chapter 165, Laws of 1913, section 2, chapter 179, Laws of 1915, section 1, chapter 180, Laws of 1919, section 1, chapter 129, Laws of 1921, section 3, chapter 138, Laws of 1923 and RCW 87.03.020;

          (3) Section 2, chapter 57, Laws of 1955 and RCW 87.03.035; and

          (4) Section 3, chapter 57, Laws of 1955 and RCW 87.03.040.

NEW SECTION. Sec. 32.  The following acts or parts of acts are each repealed:

                   (1) Section 2, chapter 138, Laws of 1923, section 1, chapter 31, Laws of 1933, section 1, chapter 143, Laws of 1941, section 1, chapter 57, Laws of 1943, section 1, chapter 141, Laws of 1965, section 1, chapter 206, Laws of 1967, section 2, chapter 185, Laws of 1979 ex. sess. and RCW 87.03.015;

          (2) Section 1, chapter 168, Laws of 1984 and RCW 87.03.016;

          (3) Section 1, chapter 42, Laws of 1982 and RCW 87.03.017;

          (4) Section 1, chapter 62, Laws of 1981, section 5, chapter 168, Laws of 1984 and RCW 87.03.018;

          (5) Section 5, chapter 138, Laws of 1923, section 3, chapter 141, Laws of 1965 and RCW 87.03.120;

          (6) Section 5, chapter 138, Laws of 1923, section 4, chapter 141, Laws of 1965 and RCW 87.03.125;

          (7) Section 4, chapter 185, Laws of 1979 ex. sess. and RCW 87.03.137; and

          (8) Section 3, chapter 48, Laws of 1983 1st ex. sess. and RCW 87.03.138.

NEW SECTION. Sec. 33.  The following acts or parts of acts are each repealed:

                   (1) Section 2, chapter 66, Laws of 1985 and RCW 87.03.051; and

          (2) Section 3, chapter 66, Laws of 1985 and RCW 87.03.071.

NEW SECTION. Sec. 34.  The following acts or parts of acts are each repealed:

                   (1) Section 26, page 685, Laws of 1889-90, section 13, chapter 165, Laws of 1895, section 14, chapter 165, Laws of 1913, section 18, chapter 129, Laws of 1921, section 3, chapter 181, Laws of 1929, section 4, chapter 60, Laws of 1931, section 7, chapter 43, Laws of 1933, section 3, chapter 209, Laws of 1981 and RCW 87.03.315;

          (2) Section 2, chapter 58, Laws of 1955, section 4, chapter 209, Laws of 1981 and RCW 87.03.320;

          (3) Section 3, chapter 58, Laws of 1955, section 5, chapter 209, Laws of 1981 and RCW 87.03.325;

          (4) Section 4, chapter 58, Laws of 1955, section 6, chapter 209, Laws of 1981 and RCW 87.03.330;

          (5) Section 28, page 686, Laws of 1889-90, section 15, chapter 165, Laws of 1895, section 16, chapter 165, Laws of 1913, section 20, chapter 129, Laws of 1921, section 10, chapter 43, Laws of 1933, section 7, chapter 209, Laws of 1981 and RCW 87.03.335;

          (6) Section 1, chapter 172, Laws of 1941 and RCW 87.03.340;

          (7) Section 2, chapter 172, Laws of 1941 and RCW 87.03.345;

          (8) Section 3, chapter 172, Laws of 1941, section 8, chapter 209, Laws of 1981 and RCW 87.03.350;

          (9) Section 29, page 687, Laws of 1889-90, section 16, chapter 165, Laws of 1895, section 5, chapter 13, Laws of 1913, section 17, chapter 165, Laws of 1913, section 16, chapter 179, Laws of 1915, section 7, chapter 162, Laws of 1917, section 21, chapter 129, Laws of 1921, section 12, chapter 138, Laws of 1923, section 2, chapter 185, Laws of 1929, section 11, chapter 43, Laws of 1933, section 5, chapter 171, Laws of 1939, section 5, chapter 58, Laws of 1955, section 9, chapter 209, Laws of 1981 and RCW 87.03.355;

          (10) Section 6, chapter 171, Laws of 1939, section 10, chapter 209, Laws of 1981 and RCW 87.03.360; and

          (11) Section 30, page 687, Laws of 1889-90, section 17, chapter 165, Laws of 1895, section 1, chapter 101, Laws of 1935, section 1, chapter 256, Laws of 1943, section 1, chapter 131, Laws of 1945, section 11, chapter 209, Laws of 1981 and RCW 87.03.370.

NEW SECTION. Sec. 35.  The following acts or parts of acts are each repealed:

                   (1) Section 14, chapter 162, Laws of 1917, section 29, chapter 129, Laws of 1921, section 4, chapter 70, Laws of 1970 ex. sess. and RCW 87.03.500;

          (2) Section 15, chapter 162, Laws of 1917, section 30, chapter 129, Laws of 1921, section 225, chapter 167, Laws of 1983 and RCW 87.03.515; and

          (3) Section 8, chapter 70, Laws of 1970 ex. sess., section 226, chapter 167, Laws of 1983 and RCW 87.03.522.

NEW SECTION. Sec. 36.    Sections 8 through 11, 13, 21, 22, 27, 30, and 32 of this act shall take effect January 1, 1989.