FINAL BILL REPORT

HB 1162

                                   C 76 L 89

BYRepresentatives Hine, G. Fisher, Horn, Ferguson and Haugen

Changing provisions relating to cities annexed by fire protection districts.

House Committe on Local Government

Senate Committee on Governmental Operations

SYNOPSIS AS ENACTED

BACKGROUND:

Whenever a city or town annexes or incorporates territory that is located in a fire protection district, the territory is removed from the fire protection district.  On the other hand, a special annexation procedure exists to annex all the territory in a city or town under which all of a city or town is annexed to a fire protection district.

If territory located in a fire protection district that constitutes at least 60 percent of the assessed valuation of the fire protection district were annexed by, or incorporated into, a city or town, then all the assets of the fire protection district vest in the city or town upon the city or town paying to the district an amount equal to the total assets of the fire protection district multiplied by the percentage of the district's assessed valuation that remains outside of the city or town.  Such payments must be made in one year and may be in the form of cash, properties, or contracts for fire protection services.

If territory located in a fire protection district that constitutes less than 60 percent of the assessed valuation of the fire protection district were annexed by, or incorporated into, a city or town, then the district retains ownership of its own assets and the district must pay the city or town an amount equal to the total assets of the fire protection district multiplied by the percentage of the district's assessed valuation that is located in the area so annexed or incorporated.  Such payments must be made in one year and may be in the form of cash, properties, or contracts for fire protection services.

However, no payments are made if:  (1) the area so annexed to a non-code city or town or incorporated as a city includes less than 5 percent of the assessed valuation of the district, or (2) the area so annexed to a code city includes less than 5 percent of the area of the district.

SUMMARY:

The law is clarified that when a city or town has been annexed by a fire protection district, and the city or town then annexes territory, the territory so annexed to the city or town additionally is annexed to the fire protection district that previously had annexed the city or town.

A fire protection district that has annexed a city or town is put in the same position as the city or town, concerning the transfer of assets and payments for such assets, upon a subsequent annexation by the city or town of territory located in another fire protection district.

VOTES ON FINAL PASSAGE:

      House 97   0

      Senate    43     0

EFFECTIVE:July 23, 1989