H-1250              _______________________________________________

                                                    HOUSE BILL NO. 643

                        _______________________________________________

                                                                            C 169 L 87

State of Washington                              50th Legislature                              1987 Regular Session

By Representatives Beck and Haugen

Read first time 2/4/87 and referred to Committee on Local Government.

AN ACT Relating to payment of special assessments prior to the issuance and sale of bonds; and amending RCW 56.20.010 and 57.16.050.

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

        Sec. 1.  Section 26, chapter 210, Laws of 1941 as amended by section 8, chapter 272, Laws of 1971 ex. sess. and RCW 56.20.010 are each amended to read as follows:

          Any sewer district shall have the power to establish utility local improvement districts within its territory as hereinafter provided, and to levy special assessments under a mode of annual installments extending over a period not exceeding twenty years on all property specially benefited by any local improvement, on the basis of the special benefits to pay in whole or in part the damages or costs of any improvements ordered in such sewer district.  The levying, collection and enforcement of all ((public)) special assessments hereby authorized shall be in the manner now and hereafter provided by law for the levying, collection and enforcement of ((local improvement)) special assessments by cities ((of the first class)) and towns, insofar as the same shall not be inconsistent with the provisions of this title.  The duties devolving upon the city or town treasurer under said laws are imposed upon the county treasurer of each county in which the real property is located for the purposes of this title.  The mode of assessment shall be in the manner to be determined by the sewer commissioners by resolution.  It must be specified in any petition for the establishment of a utility local improvement district and in the approved general comprehensive ((scheme or)) plan or approved amendment thereto ((previously duly ratified at an election)), that, except as provided in this section, the special assessments shall be for the sole purpose of payment into the revenue bond fund for the payment of revenue bonds.  Special assessments in any utility local improvement district may be made on the basis of special benefits up to but not in excess of the total cost of any comprehensive scheme or plan payable by issuance of revenue bonds.  No warrants or bonds shall be issued in any such utility local improvement district, but the collection of interest and principal on all special assessments in such utility local improvement district, when collected, shall be paid into the revenue bond fund, except that special assessments paid before the issuance and sale of bonds may be deposited in a fund for the payment of costs of improvements in the utility local improvement district.

        Sec. 2.  Section 9, chapter 114, Laws of 1929 as last amended by section 161, chapter 167, Laws of 1983 and RCW 57.16.050 are each amended to read as follows:

          (1) A district may establish local improvement districts within its territory; levy special assessments under the mode of annual installments extending over a period not exceeding twenty years, on all property specially benefited by a local improvement, on the basis of special benefits to pay in whole or in part the damage or costs of any improvements ordered in the district; and issue local improvement bonds in the local improvement district to be repaid by the collection of ((local improvement)) special  assessments.  Such bonds may be of any form, including bearer bonds or registered bonds as provided in RCW 39.46.030.  The levying, collection and enforcement of such special assessments and issuance of bonds shall be as provided for the levying, collection, and enforcement of ((local improvement)) special assessments and the issuance of local improvement district bonds by cities and towns insofar as consistent herewith.  The duties devolving upon the city or town treasurer are hereby imposed upon the county treasurer of the county in which the real property is located for the purposes hereof.  The mode of assessment shall be determined by the water commissioners by resolution.  When in the petition or resolution for the establishment of a local improvement district, and in the approved comprehensive plan or approved amendment thereto or plan providing for additions and betterments to the original plan, previously adopted, it is provided that, except as set forth in this section, the special assessments shall be for the sole purpose of payment into the revenue bond fund for the payment of revenue bonds, then the local improvement district shall be designated as a "utility local improvement district."  No warrants or bonds shall be issued in a utility local improvement district, but the collection of interest and principal on all special assessments in the utility local improvement district shall be paid into the revenue bond fund, except that special assessments paid before the issuance and sale of bonds may be deposited in a fund for the payment of costs of improvements in the utility local improvement district.

          (2) Such bonds  may also be issued and sold in accordance with chapter 39.46 RCW.

                                                                                                                           Passed the House March 9, 1987.

                                                                                                                                         Speaker of the House.

                                                                                                                           Passed the Senate April 14, 1987.

                                                                                                                                       President of the Senate.