AN ACT Relating to unincorporated activity districts; amending RCW 36.75.060, 35.02.140, 35.02.180, 35.02.220, 35.07.110, 35.13.270, 35A.14.310, 35A.14.801, 36.08.040, 36.16.110, 36.33.220, 36.75.240, 36.82.020, 36.82.030, 36.82.040, 36.83.010, 45.12.080, 45.72.030, 45.72.040, 45.72.050, 45.72.060, 46.68.080, 47.04.040, 54.28.010, 84.04.120, 84.40.090, 84.40.100, 84.52.010, 84.52.043, 84.52.052, 84.64.230, 84.69.010, 85.07.040, and 85.08.370; reenacting and amending RCW 46.68.124; and adding new sections to chapter 36.75 RCW.

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

Sec. 1. Section 36.75.060, chapter 4, Laws of 1963 as amended by section 3, chapter 182, Laws of 1969 ex. sess. and RCW 36.75.060 are each amended to read as follows:

For the purpose of efficient administration of ((~~the county~~)) roads ((~~of each county~~)) and other facilities and services, the ((~~board~~)) legislative authority of each county may, but not more than once in each year, form all of the unincorporated area of their ((~~respective counties, or any part thereof,~~)) county into a suitable and convenient ((~~road~~)) unincorporated activity district or districts, not exceeding nine in number, and cause a description thereof to be entered upon their records.

((Unless the board decides otherwise by majority vote, there shall be at least one road district in each county commissioner's district embracing territory outside of cities and towns and no road district shall extend into more than one county commissioner's district.))

An unincorporated activity district is a municipal corporation, an independent "taxing authority" within the meaning of Article VII, section 1 of the state Constitution, and a "taxing district" within the meaning of Article VII, section 2 of the state Constitution.

An unincorporated activity district shall constitute a body corporate and shall possess all the usual powers of a corporation for public purposes as well as all other powers that may now or hereafter be conferred specifically by statute, including, but not limited to, the authority to hire employees, staff, and services, to enter into contracts, and to sue and be sued.

The county legislative authority of the county in which an unincorporated activity district is located shall constitute the ex officio governing body of the unincorporated activity district. The county treasurer shall act as the ex officio treasurer of the unincorporated activity district. The electors of an unincorporated activity district are all registered voters residing within the unincorporated activity district.

The governing body of each unincorporated activity district shall provide for the establishment of a road fund, and accounts within the road fund, for its road activities.

NEW SECTION. Sec. 2. A new section is added to chapter 36.75 RCW to read as follows:

An unincorporated activity district may acquire, construct, repair, maintain roads, bridges, wharves, and other road improvements within its boundaries, or may contract with the county, and transfer funds to the county, for such purposes. Public works projects performed by employees of an unincorporated activity district shall be included within the limitations of the county as provided in RCW 36.77.065. Contracts let by an unincorporated activity district for public works road projects shall be let in the same manner as contracts for public works road projects that are let by a county.

An unincorporated activity district may contract with the county for the county to provide any nonroad services and facilities within the unincorporated activity district, including public safety, park, and health services and facilities, and to transfer property tax revenues of the unincorporated activity district for such purposes, if such revenues are diverted pursuant to RCW 36.33.220.

NEW SECTION. Sec. 3. A new section is added to chapter 36.75 RCW to read as follows:

An unincorporated activity district may issue general obligation bonds, not to exceed an amount, together with any other outstanding nonvoter approved general obligation indebtedness, equal to three-eighths of one percent of the value of taxable property within the district, as the term "value of taxable property" is defined in RCW 39.36.015. Additionally, an unincorporated activity district may issue general obligation bonds for capital purposes only, together with any other outstanding general obligation indebtedness, not to exceed an amount equal to one and one-fourth percent of the value of the taxable property within the district, as the term "value of taxable property" is defined in RCW 39.36.015, when authorized by the voters of the unincorporated activity district pursuant to Article VIII, section 6 of the state Constitution, and to provide for the retirement thereof by excess property tax levies as provided in RCW 36.82.030(3). General obligation bonds shall be issued and sold in accordance with chapter 39.46 RCW.

Sec. 4. Section 35.02.140, chapter 7, Laws of 1965 as amended by section 20, chapter 234, Laws of 1986 and RCW 35.02.140 are each amended to read as follows:

((~~Whenever in any territory forming a part of an incorporated city or town which is part of a road district, and road~~)) Unincorporated activity district regular property taxes that are collectable on any property located within ((~~such territory, the same shall, when collected by the county treasurer,~~)) a city or town shall be paid to such city or town when collected by the county treasurer and placed in the city or town street fund by the city or town: PROVIDED, That this section shall not apply to excess property tax levies securing general indebtedness or any special assessments due in behalf of such property.

Sec. 5. Section 17, chapter 234, Laws of 1986 and RCW 35.02.180 are each amended to read as follows:

The ownership of all county roads located within the boundaries of a newly incorporated city or town shall revert to the city or town and become streets as of the official date of incorporation. However, any special assessments attributable to these county roads shall continue to exist and be collected as if the incorporation had not occurred. Property within the newly incorporated city or town shall continue to be subject to any indebtedness attributable to these roads and any related property tax levies.

The territory included within the newly incorporated city or town shall be removed from the ((~~road~~)) unincorporated activity district or districts as of the official date of incorporation. The territory included within the newly incorporated city or town shall be removed from a fire protection district or districts or library district or districts in which it was located, as of the official date of incorporation, unless the fire protection district or districts have annexed the city or town during the interim period as provided in RCW ((~~52.04.160~~)) 52.04.061 through ((~~52.04.200~~)) 52.04.131, or the library district or districts have annexed the city or town during the interim period as provided in RCW ((~~27.12.260~~)) 27.12.360 through ((~~27.12.290~~)) 27.12.395.

Sec. 6. Section 1, chapter 143, Laws of 1985 as amended by section 22, chapter 234, Laws of 1986 and RCW 35.02.220 are each amended to read as follows:

The approval of an incorporation by the voters of a proposed city or town, and the existence of a transition period to become a city or town, shall not remove the responsibility of any county, ((~~road~~)) unincorporated activity district, library district, or fire district, within which the area is located, to continue providing services to the area until the official date of the incorporation.

A county and the unincorporated activity district or districts shall continue to provide the following services to a newly incorporated city or town, or that portion of the county within which the newly incorporated city or town is located, at the preincorporation level as follows:

(1) Law enforcement services shall be provided for a period not to exceed sixty days from the official date of the incorporation or until the city or town is receiving or could have begun receiving sales tax distributions under RCW 82.14.030(1), whichever is the shortest time period.

(2) Road maintenance shall be for a period not to exceed sixty days from the official date of the incorporation or until any tax distribution from ((~~the road~~)) unincorporated activity district tax ((~~levy is~~)) levies are made to the newly incorporated city or town pursuant to RCW 35.02.140, whichever is the shorter time period.

Sec. 7. Section 35.07.110, chapter 7, Laws of 1965 and RCW 35.07.110 are each amended to read as follows:

Upon disincorporation of a city or town, its streets and highways pass to the control of the state and shall remain public highways until closed in pursuance of law; and the territory embraced therein shall be made into a new ((~~road~~)) unincorporated activity district or annexed to an adjoining unincorporated activity district or districts as may be ordered by the ((~~board of~~)) county ((~~commissioners~~)) legislative authority of the county embracing such city or town.

Sec. 8. Section 35.13.270, chapter 7, Laws of 1965 and RCW 35.13.270 are each amended to read as follows:

Whenever any territory is annexed to a city which is part of ((~~a road~~)) an unincorporated activity district ((~~of the county~~)) and ((~~road~~)) unincorporated activity district taxes have been levied but not collected on any property within the annexed territory, the same shall when collected by the county treasurer be paid to the city or town and by the city or town placed in the city or town street fund: PROVIDED, That this section shall not apply to excess property tax levies securing general indebtedness.

Sec. 9. Section 35A.14.310, chapter 119, Laws of 1967 ex. sess. as amended by section 1, chapter 105, Laws of 1985 and RCW 35A.14.310 are each amended to read as follows:

A code city may annex an unincorporated area contiguous to the city that is owned by the federal government by adopting an ordinance providing for the annexation and which ordinance either acknowledges an agreement of the annexation by the government of the United States, or accepts a gift, grant, or lease from the government of the United States of the right to occupy, control, improve it or sublet it for commercial, manufacturing, or industrial purposes: PROVIDED, That this right of annexation shall not apply to any territory more than four miles from the corporate limits existing before such annexation. Whenever a code city proposes to annex territory under this section, the city shall provide written notice of the proposed annexation to the legislative authority of the county within which such territory is located. The notice shall be provided at least thirty days before the city proposes to adopt the annexation ordinance. The city shall not adopt the annexation ordinance, and the annexation shall not occur under this section, if within twenty-five days of receipt of the notice, the county legislative authority adopts a resolution opposing the annexation, which resolution makes a finding that the proposed annexation will have an adverse fiscal impact on the county or ((~~road~~)) an unincorporated activity district or districts.

Sec. 10. Section 14, chapter 251, Laws of 1971 ex. sess. and RCW 35A.14.801 are each amended to read as follows:

Whenever any territory is annexed to a code city which is part of ((~~a road~~)) an unincorporated activity district of the county and ((~~road~~)) unincorporated activity district taxes have been levied but not collected on any property within the annexed territory, the same shall when collected by the county treasurer be paid to the code city and by the city placed in the city street fund: PROVIDED, That this section shall not apply to excess property tax levies securing general indebtedness or any special assessments due in behalf of such property.

Sec. 11. Section 36.08.040, chapter 4, Laws of 1963 and RCW 36.08.040 are each amended to read as follows:

All township, precinct, and school((~~, and road district~~)) officers within the transferred territory shall continue to hold their respective offices within the county to which they may be transferred until their respective terms of office expire, and until their successors are elected and qualified. Any transferred territory shall be removed from the unincorporated activity district or districts of the county from which it is transferred, and shall be included in an unincorporated activity district or districts of the county to which it is transferred, as designated by the legislative authority of such county, when the county lines are changed.

Sec. 12. Section 36.16.110, chapter 4, Laws of 1963 and RCW 36.16.110 are each amended to read as follows:

The ((~~board of~~)) county ((~~commissioners~~)) legislative authority in each county shall, at its next regular or special meeting after being ((~~appraised~~)) apprised of any vacancy in any county, township, or precinct((~~, or road district~~)) office of the county, fill the vacancy by the appointment of some person qualified to hold such office, and the officers thus appointed shall hold office until the next general election, and until their successors are elected and qualified.

Sec. 13. Section 1, chapter 25, Laws of 1971 ex. sess. as last amended by section 142, chapter 195, Laws of 1973 1st ex. sess. and RCW 36.33.220 are each amended to read as follows:

The legislative authority of any county may budget, in accordance with the provisions of chapter 36.40 RCW, and expend any portion of the ((~~county road~~)) property tax revenues transferred to it by an unincorporated activity district or districts for any nonroad services and facilities, including public safety, park, and health services and facilities, to be provided in the unincorporated ((~~area of the county~~)) activity district from which the revenues were transferred notwithstanding any other provision of law, including chapter 36.82 RCW and RCW 84.52.050 and RCW 84.52.043.

Sec. 14. Section 36.75.240, chapter 4, Laws of 1963 as last amended by section 2, chapter 55, Laws of 1982 and RCW 36.75.240 are each amended to read as follows:

The ((~~boards~~)) county legislative authority of any county may expend funds credited to the county road fund from any county ((~~or road district~~)) tax levied for the construction of county roads, and any funds transferred from an unincorporated activity district to the county road fund, for the construction of sidewalks, bicycle paths, lanes, routes, and roadways, and pedestrian allocated paths or walks. Bicycle facilities constructed or modified after June 10, 1982, shall meet or exceed the standards of the state department of transportation.

Sec. 15. Section 36.82.020, chapter 4, Laws of 1963 and RCW 36.82.020 are each amended to read as follows:

Any funds ((~~accruing to and~~)) transferred from an unincorporated activity district to the county, in a county with more than one unincorporated activity district, that are to be deposited in the county road fund ((~~arising from any levy in any road district~~)), shall be placed into a separate account within the road fund and expended for proper county road purposes entirely within the limits of the ((~~road~~)) unincorporated activity district from which the same was ((~~or is collected~~)) transferred: PROVIDED, That nothing in this section shall prevent the loan or rental of equipment by one ((~~road~~)) unincorporated activity district to another ((~~road~~)) unincorporated activity district in the county or to the county.

Sec. 16. Section 36.82.030, chapter 4, Laws of 1963 and RCW 36.82.030 are each amended to read as follows:

The county auditor of each county shall set up within the county road fund of such county, a separate ((~~fund~~)) account for each ((~~road~~)) unincorporated activity district, if there is more than one unincorporated activity district in the county, and keep a separate and detailed accounting of all funds ((~~arising from any levy for proper county road purposes in each such road~~)) transferred from each unincorporated activity district and all expenditures made therefrom.

Sec. 17. Section 36.82.040, chapter 4, Laws of 1963 as last amended by section 41, chapter 195, Laws of 1973 1st ex. sess. and RCW 36.82.040 are each amended to read as follows:

((For the purpose of raising revenue for establishing, laying out, constructing, altering, repairing, improving, and maintaining county roads, bridges, and wharves necessary for vehicle ferriage and for other proper county purposes, the board shall annually at the time of making the levy for general purposes)) (1) The governing body of each unincorporated activity district shall make a uniform regular property tax levy throughout the ((~~county, or any road district thereof,~~)) unincorporated activity district of not to exceed two dollars and twenty-five cents per thousand dollars of assessed value of ((~~the last assessed valuation of the taxable property in the county, or road district thereof~~)) taxable property within the unincorporated activity district, unless other law of the state requires a lower maximum levy, in which event such lower maximum levy shall control. All funds accruing from such levy shall be ((~~credited to and deposited in the county road fund~~)) expended for road, bridge, wharf and other road purposes, except that revenue ((~~diverted~~)) from this property tax may be transferred under RCW 36.33.220. If revenue from this tax is so transferred, it shall be placed in a fund or account that is separate and identifiable ((~~account within the county current expense~~)) from the fund or account into which the revenue is otherwise placed for road purposes. The governing body of an unincorporated activity district may submit a ballot proposition to district voters under RCW 84.55.050, that limits the purpose for which a waiving of the one hundred six percent limitation may be authorized, to authorized nonroad purposes and bind itself to transferring such increased tax receipts under RCW 36.33.220.

(2) The governing body of an unincorporated activity district may levy a property tax, in excess of the one percent limitation, upon the taxable property within the district for a one-year period to be used for operating and capital purposes whenever authorized by the voters of the district pursuant to RCW 84.52.052 and Article VII, section 2(a) of the state Constitution. Receipts from such a levy may be transferred to the county to be used for nonroad purposes, pursuant to RCW 36.33.220, if such a transfer is specified in the ballot proposition approved by the voters.

(3) The governing body of an unincorporated activity district may provide for the retirement of voter approved general obligation bonds, issued for capital purposes only, by levying bond retirement property tax levies, in excess of the one percent limitation, whenever authorized by the voters of the district pursuant to RCW 84.52.056 and Article VII, section 2(b) of the state Constitution. Receipts from the bond issue may be transferred to the county to be used for nonroad purposes, pursuant to RCW 36.33.220, if such a transfer is specified in the ballot proposition approved by the voters.

Sec. 18. Section 1, chapter 130, Laws of 1983 as amended by section 2, chapter 400, Laws of 1985 and RCW 36.83.010 are each amended to read as follows:

The legislative authority of a county may establish one or more service districts within the county for the purpose of providing and funding capital and maintenance costs for any bridge or road improvement or for providing and funding capital costs for any state highway improvement a county or ((~~a road~~)) an unincorporated activity district has the authority to provide. A service district may not include any area within the corporate limits of a city or town unless the city or town governing body adopts a resolution approving inclusion of the area within its limits. A service district is a quasi municipal corporation, an independent taxing "authority" within the meaning of Article VII, section 1 of the state Constitution, and a "taxing district" within the meaning of Article VII, section 2 of the state Constitution.

A service district shall constitute a body corporate and shall possess all the usual powers of a corporation for public purposes as well as all other powers that may now or hereafter be specifically conferred by statute, including, but not limited to, the authority to hire employees, staff, and services, to enter into contracts, and to sue and be sued. All projects constructed by a service district pursuant to the provisions of this chapter shall be competitively bid and contracted.

The county legislative authority shall be the governing body of a service district. The county treasurer shall act as the ex officio treasurer of the service district. The electors of a service district are all registered voters residing within the district.

Sec. 19. Section 17, chapter 175, Laws of 1895 as last amended by section 3, chapter 13, Laws of 1923 and RCW 45.12.080 are each amended to read as follows:

There shall be elected at the annual town meeting in each town, one supervisor and there shall be elected at the annual town meeting in the odd-numbered years one town clerk, one treasurer, ((~~one assessor,~~)) one justice of the peace and one constable to hold office for the term of two years and until their successors are elected and qualified: PROVIDED, That at the first annual town meeting of every town hereafter organized there shall be elected three supervisors, one to hold office for the term of one year, one to hold office for the term of two years and one to hold office for the term of three years. The board of supervisors shall have power to employ and appoint and to fix the salary of an ((~~overseer of highways for said town or an overseer of highways for each road district in said town. Said overseer or overseers may or may not be a resident of said town or road district~~)) engineer to act within the town in the place of the county engineer.

Sec. 20. Section 116, chapter 175, Laws of 1895 and RCW 45.72.030 are each amended to read as follows:

In all townships after they become fully organized under this act, the election precinct or precincts, and ((~~road~~)) unincorporated activity district or districts theretofore organized by the county ((~~commissioners~~)) legislative authority shall be abolished, and election precincts and ((~~road~~)) unincorporated activity districts shall be established as provided in this act((; and there shall be no election for road overseers in the December following the general election at which township organization is voted, but the road overseers then holding office shall continue to hold their offices till the township road overseers have been elected or appointed and qualified. After townships have been organized, justices of the peace and constables shall not be elected at general elections, but at town meetings as herein provided. The assessment of property in any town made last before any township has been organized shall remain and continue in force till the next assessment has been made by the township assessor. The county assessor shall not assess any property within the limits of an organized township, and the assessment of property made by the township assessors shall have the same force and effect, when reviewed by the town board of review, as the assessment of property now made by county assessors, and shall be acted on and equalized by the county board of equalization as required by law)).

Sec. 21. Section 1, chapter 13, Laws of 1911 and RCW 45.72.040 are each amended to read as follows:

Whenever any county has heretofore, or shall hereafter, adopt and take upon itself township organization and government under the provisions of any law passed pursuant to the provisions of section 4, Article XI of the Constitution of this state, authorizing such organization and government, and at the time of the adoption of such form of government there shall exist against any ((~~road~~)) unincorporated activity district in such county, previously created and defined by the ((~~commissioners~~)) legislative authority of such county, any obligations for debts incurred in the construction or repair of any roads or bridges in such ((~~road~~)) unincorporated activity district or districts, such change in the government of said county shall not in any way affect such existing obligations of any such ((~~road~~)) unincorporated activity district or districts; but all such obligations shall remain and constitute a valid charge upon and against all of the taxable property included within the territorial limits of such ((~~road~~)) unincorporated activity district or districts as it existed at the time of the adoption of such township organization for the full amount of all of said obligations. For the purposes of ((~~this act~~)) RCW 45.72.040 through 45.72.060, the territory which comprised said ((~~road~~)) unincorporated activity district or districts shall thereafter comprise and constitute a ((~~road tax~~)) taxing district ((of)) or districts within said county, and said ((~~road tax~~)) unincorporated activity district or districts shall be designated by a like number or numbers by which said ((~~road~~)) unincorporated activity district or districts was theretofore known.

Sec. 22. Section 2, chapter 13, Laws of 1911 as amended by section 45, chapter 195, Laws of 1973 1st ex. sess. and RCW 45.72.050 are each amended to read as follows:

There shall be levied annually at the same time the levy for general county taxes is made, and by the officers levying the said county tax, a tax of not more than one dollar and twenty-five cents per thousand dollars of assessed value on all taxable property within the territorial limits of every such ((~~road~~)) unincorporated activity district or districts as the same existed at the time of the adoption of such township organization for the payment of and until the full amount of all indebtedness, together with all accrued and accruing interest thereon, existing against any such ((~~road~~)) unincorporated activity district or districts, shall have been paid in full.

Sec. 23. Section 3, chapter 13, Laws of 1911 and RCW 45.72.060 are each amended to read as follows:

The tax levied, as provided for in RCW 45.72.050, shall be extended upon the tax rolls of the county, and shall be collected by the county treasurer of said county at the same time and in the same manner as other taxes are collected, and said treasurer shall credit to the proper ((~~road tax~~)) unincorporated activity district or districts all sums collected from any such levy, and all sums so collected shall by the said treasurer be applied to the payment, in the order of their issue, of the outstanding warrants against the ((~~road~~)) unincorporated activity district or districts for the indebtedness of which said levy was made.

Sec. 24. Section 46.68.080, chapter 12, Laws of 1961 and RCW 46.68.080 are each amended to read as follows:

All motor vehicle license fees and all motor vehicle fuel tax directly or indirectly paid by the residents of those counties composed entirely of islands and which have neither a fixed physical connection with the mainland nor any state highways on any of the islands of which they are composed, shall be paid into the motor vehicle fund of the state of Washington and shall monthly, as they accrue, and after deducting therefrom the expenses of issuing such licenses and the cost of collecting such motor vehicle fuel tax, be paid to the county treasurer of each such county to be by him disbursed as hereinafter provided.

One-half of all motor vehicle license fees and motor vehicle fuel tax directly or indirectly paid by the residents of those counties composed entirely of islands and which have either a fixed physical connection with the mainland or state highways on any of the islands of which they are composed, shall be paid into the motor vehicle fund of the state of Washington and shall monthly, as they accrue, and after deducting therefrom the expenses of issuing such licenses and the cost of collecting such motor vehicle fuel tax, be paid to the county treasurer of each such county to be by him disbursed as hereinafter provided.

All funds paid to the county treasurer of the counties of either class above referred to as in this section provided, shall be by such county treasurer distributed and credited to the ((~~several road districts of each such~~)) county ((~~and~~)) road fund or paid to the city or town treasurer of each incorporated city and town within each such county, in the direct proportion that the assessed valuation of the unincorporated area of the county or each such ((~~road district and~~)) incorporated city and town shall bear to the total assessed valuation of each such county.

The amount of motor vehicle fuel tax paid by the residents of those counties composed entirely of islands shall, for the purposes of this section, be that percentage of the total amount of motor vehicle fuel tax collected in the state that the motor vehicle license fees paid by the residents of counties composed entirely of islands bears to the total motor vehicle license fees paid by the residents of the state.

Sec. 25. Section 3, chapter 33, Laws of 1982 as last amended by section 113, chapter 7, Laws of 1985 and by section 2, chapter 120, Laws of 1985 and RCW 46.68.124 are each reenacted and amended to read as follows:

(1) The equivalent population for each county shall be computed as the sum of the population residing in the county's unincorporated area plus twenty-five percent of the population residing in the county's incorporated area. Population figures required for the computations in this subsection shall be certified by the director of the office of financial management on or before July 1st of each odd-numbered year.

(2) The total annual road cost for each county shall be computed as the sum of one twenty-fifth of the total estimated county road replacement cost, plus the total estimated annual maintenance cost. Appropriate costs for bridges and ferries shall be included. The county road administration board shall be responsible for establishing a uniform system of roadway categories for both maintenance and construction and also for establishing a single state-wide cost per mile rate for each roadway category. The total annual cost for each county will be based on the established state-wide cost per mile and associated mileage for each category. The mileage to be used for these computations shall be as shown in the county road log as maintained by the county road administration board as of July 1, 1985, and each two years thereafter. Each county shall be responsible for submitting changes, corrections, and deletions as regards the county road log to the county road administration board. Such changes, corrections, and deletions shall be subject to verification and approval by the county road administration board prior to inclusion in the county road log.

(3) The money need factor for each county shall be the county's total annual road cost less the following four amounts:

(a) One-half the sum of the actual ((~~county road~~)) tax levied upon the valuation of all taxable property within the ((~~county road~~)) unincorporated activity districts pursuant to RCW 36.82.040 for the two calendar years next preceding the year of computation of the allocation amounts as certified by the department of revenue;

(b) One-half the sum of all funds received by the county road fund from the federal forest reserve fund pursuant to RCW 28A.02.300 and 28A.02.310 during the two calendar years next preceding the year of computation of the allocation amounts as certified by the state treasurer;

(c) One-half the sum of timber excise taxes received by the county road fund pursuant to chapter 84.33 RCW in the two calendar years next preceding the year of computation of the allocation amounts as certified by the state treasurer;

(d) One-half the sum of motor vehicle license fees and motor vehicle and special fuel taxes refunded to the county, pursuant to RCW 46.68.080 during the two calendar years next preceding the year of computation of the allocation amounts as certified by the state treasurer.

(4) The state treasurer and the department of revenue shall furnish to the county road administration board the information required by subsection (3) of this section on or before July 1st of each odd-numbered year.

(5) The county road administration board, shall compute and provide to the counties the allocation factors of the several counties on or before September 1st of each year based solely upon the sources of information herein before required: PROVIDED, That the allocation factor shall be held to a level not more than five percent above or five percent below the allocation factor in use during the previous calendar year. Upon computation of the actual allocation factors of the several counties, the county road administration board shall provide such factors to the state treasurer to be used in the computation of the counties' fuel tax allocation for the succeeding calendar year. The state treasurer shall adjust the fuel tax allocation of each county on January 1st of every year based solely upon the information provided by the county road administration board.

Sec. 26. Section 47.04.040, chapter 13, Laws of 1961 as amended by section 7, chapter 30, Laws of 1979 ex. sess. and RCW 47.04.040 are each amended to read as follows:

Upon and after April 1, 1937, all rights of way of any primary state highways, together with all appurtenances thereto, the right or interest in or to which was, or is, in any county, ((~~road~~)) unincorporated activity district, township, local improvement district, or other highway or ((~~road~~)) unincorporated activity district or political subdivision of the state of Washington shall be and the same is hereby transferred to and vested in the state of Washington for use in conjunction with such primary state highways under the department of transportation.

All public highways in the state of Washington which have been designated to be primary state highways or secondary state highways or classified as primary roads and which have been constructed and improved and maintained for a period of seven years prior to April 1, 1937, at the expense of the state shall operate to vest in the state of Washington all right, title, and interest to the right of ways thereof, including the roadway and ditches and existing drainage facilities, together with all appurtenances thereto and no informalities in the records of title to such public highways shall be construed to invalidate or vacate such public highways or to divest the state of Washington of any right, title and interest in the right of way thereof.

Sec. 27. Section 7, chapter 278, Laws of 1957 as last amended by section 1, chapter 366, Laws of 1977 ex. sess. and RCW 54.28.010 are each amended to read as follows:

As used in this chapter:

(1) "Operating property" means all of the property utilized by a public utility district in the operation of a plant or system for the generation, transmission, or distribution of electric energy for sale;

(2) "Taxing districts" means counties, cities, towns, school districts, and ((~~road~~)) unincorporated activity districts;

(3) "Distributes to consumers" means the sale of electric energy to ultimate consumers thereof, and does not include sales of electric energy for resale by the purchaser;

(4) "Wholesale value" means all costs of a public utility district associated with the generation and transmission of energy from its own generation and transmission system to the point or points of inter-connection with a distribution system owned and used by a district to distribute such energy to consumers, or in the event a distribution system owned by a district is not used to distribute such energy, then the term means the gross revenues derived by a district from the sale of such energy to consumers;

(5) "Thermal electric generating facility" means a steam-powered electrical energy producing facility utilizing nuclear or fossil fuels;

(6) "Placed in operation" means delivery of energy into a transmission or distribution system for use or sale in such a manner as to establish a value accruing to the power plant operator, except operation incidental to testing or startup adjustments;

(7) "Impacted area" for a thermal electric generating facility on a federal reservation means that area in the state lying within thirty-five statute miles of the most commonly used entrance of the federal reservation and which is south of the southern boundary of township fifteen north.

Sec. 28. Section 84.04.120, chapter 15, Laws of 1961 and RCW 84.04.120 are each amended to read as follows:

"Taxing district" shall be held and construed to mean and include the state and any county, city, town, township, port district, school district, ((~~road~~)) unincorporated activity district, metropolitan park district, water district or other municipal corporation, now or hereafter existing, having the power or authorized by law to impose burdens upon property within the district in proportion to the value thereof, for the purpose of obtaining revenue for public purposes, as distinguished from municipal corporations authorized to impose burdens, or for which burdens may be imposed, for such purposes, upon property in proportion to the benefits accruing thereto.

Sec. 29. Section 84.40.090, chapter 15, Laws of 1961 and RCW 84.40.090 are each amended to read as follows:

It shall be the duty of assessors, when assessing real or personal property, to designate the name or number of each taxing ((~~and road~~)) district in which each person and each description of property assessed is liable for taxes, which designation shall be made by writing the name or number of the districts opposite each assessment in the column provided for that purpose in the detail and assessment list. When the real and personal property of any person is assessable in several taxing districts ((~~and/or road districts~~)), the amount in each shall be assessed on separate detail and assessment lists, and all property assessable in incorporated cities or towns shall be assessed in consecutive books, where more than one book is necessary, separate from outside property and separately, and the name of the owner, if known, together with his post office address, placed opposite each amount.

Sec. 30. Section 84.40.100, chapter 15, Laws of 1961 and RCW 84.40.100 are each amended to read as follows:

The county ((~~commissioners~~)) legislative authority of each county shall furnish the assessor with a map of the county, showing the boundaries of each taxing ((~~and road~~)) district therein named or numbered. And the ((~~board of~~)) county ((~~commissioners~~)) legislative authority in fixing, changing or revising the boundaries of any ((~~road~~)) unincorporated activity district or districts, shall, wherever practicable, make the boundaries of such ((~~road~~)) unincorporated activity district or districts conform to the boundaries of the school district nearest coincident thereto, to the end that the several school and ((~~road~~)) unincorporated activity districts in each county shall correspond in territory one with the other: PROVIDED, That any ((~~road~~)) unincorporated activity district may include more than one school district.

Sec. 31. Section 84.52.010, chapter 15, Laws of 1961 as last amended by section 7, chapter 274, Laws of 1988 and RCW 84.52.010 are each amended to read as follows:

Except as is permitted under RCW 84.55.050, all taxes shall be levied or voted in specific amounts.

The rate percent of all taxes for state and county purposes, and purposes of taxing districts coextensive with the county, shall be determined, calculated and fixed by the county assessors of the respective counties, within the limitations provided by law, upon the assessed valuation of the property of the county, as shown by the completed tax rolls of the county, and the rate percent of all taxes levied for purposes of taxing districts within any county shall be determined, calculated and fixed by the county assessors of the respective counties, within the limitations provided by law, upon the assessed valuation of the property of the taxing districts respectively.

When a county assessor finds that the aggregate rate of tax levy on any property, that is subject to the limitations set forth in RCW 84.52.043 or 84.52.050, as now or hereafter amended, exceeds the limitations provided in either of these sections, the assessor shall recompute and establish a consolidated levy in the following manner:

(1) The full certified rates of tax levy for state, county, ((~~county road~~)) unincorporated activity district, and city or town purposes shall be extended on the tax rolls in amounts not exceeding the limitations established by law, subject to subsection (2)(e) of this section; however any state levy shall take precedence over all other levies and shall not be reduced for any purpose other than that required by RCW 84.55.010; and

(2) The certified rates of tax levy subject to these limitations by all junior taxing districts imposing taxes on such property shall be reduced or eliminated as follows to bring the consolidated levy of taxes on such property within the provisions of these limitations:

(a) First, the certified property tax levy rates of those junior taxing districts authorized under RCW 36.68.525, 36.69.145, and 67.38.130 shall be reduced on a pro rata basis or eliminated;

(b) Second, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates of flood control zone districts shall be reduced on a pro rata basis or eliminated;

(c) Third, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates of all other junior taxing districts, other than fire protection districts, public hospital districts, metropolitan park districts, and library districts, shall be reduced on a pro rata basis or eliminated;

(d) Fourth, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates authorized to fire protection districts under RCW 52.16.140 and 52.16.160 shall be reduced on a pro rata basis or eliminated;

(e) Fifth, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates authorized for cities and towns, fire protection districts under RCW 52.16.130, public hospital districts, metropolitan park districts, and library districts shall be adjusted as provided in RCW 84.52.0501; and

(f) Sixth, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates authorized to fire protection districts under RCW 52.16.130, and the certified property tax levy rates of public hospital districts, metropolitan park districts, and library districts, shall be reduced on a pro rata basis or eliminated.

Sec. 32. Section 134, chapter 195, Laws of 1973 1st ex. sess. as amended by section 5, chapter 274, Laws of 1988 and RCW 84.52.043 are each amended to read as follows:

Within and subject to the limitations imposed by RCW 84.52.050 as amended, the regular ad valorem tax levies upon real and personal property by the taxing districts hereafter named shall be as follows:

(1) Levies of the senior taxing districts shall be as follows: (a) The levy by the state shall not exceed three dollars and sixty cents per thousand dollars of assessed value adjusted to the state equalized value in accordance with the indicated ratio fixed by the state department of revenue to be used exclusively for the support of the common schools; (b) the levy by any county shall not exceed one dollar and eighty cents per thousand dollars of assessed value; (c) the levy by any ((~~road~~)) unincorporated activity district shall not exceed two dollars and twenty-five cents per thousand dollars of assessed value; and (d) the levy by any city or town shall not exceed three dollars and thirty-seven and one-half cents per thousand dollars of assessed value. However any county legislative authority is ((~~hereby~~)) authorized hereby to increase its levy from one dollar and eighty cents to a rate not to exceed two dollars and forty-seven and one-half cents per thousand dollars of assessed value for general county purposes if the total levies for both the county and any ((~~road~~)) unincorporated activity district within the county do not exceed four dollars and five cents per thousand dollars of assessed value, and no other taxing district has its levy reduced as a result of the increased county levy.

(2) Except as provided in RCW 84.52.100, the aggregate levies of junior taxing districts and senior taxing districts, other than the state, shall not exceed five dollars and fifty-five cents per thousand dollars of assessed valuation. The term "junior taxing districts" includes all taxing districts other than the state, counties, ((~~road~~)) unincorporated activity districts, cities, towns, port districts, and public utility districts. The limitations provided in this subsection shall not apply to: (a) Levies at the rates provided by existing law by or for any port or public utility district; (b) excess property tax levies authorized in Article VII, section 2 of the state Constitution; (c) levies for acquiring conservation futures as authorized under RCW 84.34.230; and (d) levies for emergency medical care or emergency medical services imposed under RCW 84.52.069.

(3) It is the intent of the legislature that the provisions of this section shall supersede all conflicting provisions of law including RCW 84.52.050.

Sec. 33. Section 18, chapter 1, Laws of 1988 ex. sess. and RCW 84.52.052 are each amended to read as follows:

The limitations imposed by RCW 84.52.050 through 84.52.056, and RCW 84.52.043 shall not prevent the levy of additional taxes by any taxing district except school districts in which a larger levy is necessary in order to prevent the impairment of the obligation of contracts. Any county, metropolitan park district, park and recreation service area, park and recreation district, sewer district, water district, solid waste disposal district, public facilities district, flood control zone district, county rail district, service district, public hospital district, ((~~road~~)) unincorporated activity district, rural county library district, island library district, intercounty rural library district, fire protection district, cemetery district, city, town, or cultural arts, stadium, and convention district may levy taxes at a rate in excess of the rate specified in RCW 84.52.050 through 84.52.056 and RCW 84.52.043, or RCW 84.55.010 through 84.55.050, when authorized so to do by the electors of such county, metropolitan park district, park and recreation service area, park and recreation district, sewer district, water district, solid waste disposal district, public facilities district, flood control zone district, county rail district, service district, public hospital district, ((~~road~~)) unincorporated activity district, rural county library district, island library district, intercounty rural library district, fire protection district, cemetery district, city, town, or cultural arts, stadium, and convention district in the manner set forth in Article VII, section 2(a) of the Constitution of this state, as amended by Amendment 64 and as thereafter amended, at a special or general election to be held in the year in which the levy is made.

A special election may be called and the time therefor fixed by the county legislative authority, or council, board of commissioners, or other governing body of any metropolitan park district, park and recreation service area, park and recreation district, sewer district, water district, solid waste disposal district, public facilities district, flood control zone district, county rail district, service district, public hospital district, ((~~road~~)) unincorporated activity district, rural county library district, island library district, intercounty rural library district, fire protection district, cemetery district, city, town, or cultural arts, stadium, and convention district, by giving notice thereof by publication in the manner provided by law for giving notices of general elections, at which special election the proposition authorizing such excess levy shall be submitted in such form as to enable the voters favoring the proposition to vote "yes" and those opposed thereto to vote "no."

Sec. 34. Section 84.64.230, chapter 15, Laws of 1961 and RCW 84.64.230 are each amended to read as follows:

No claims shall ever be allowed against the county from any municipality, school district, ((~~road~~)) unincorporated activity district or other taxing district for taxes levied on property acquired by the county by tax deed under the provisions of this chapter, but all taxes shall at the time of deeding said property be thereby canceled: PROVIDED, That the proceeds of any sale of any property acquired by the county by tax deed shall be justly apportioned to the various funds existing at the date of the sale, in the territory in which such property is located, according to the tax levies of the year last in process of collection.

Sec. 35. Section 84.69.010, chapter 15, Laws of 1961 and RCW 84.69.010 are each amended to read as follows:

As used in this chapter, unless the context indicates otherwise:

(1) "Taxing district" means any county, city, town, township, port district, school district, ((~~road~~)) unincorporated activity district, metropolitan park district, water district, or other municipal corporation now or hereafter authorized by law to impose burdens upon property within the district in proportion to the value thereof, for the purpose of obtaining revenue for public purposes, as distinguished from municipal corporations authorized to impose burdens, or for which burdens may be imposed, for such purposes, upon property in proportion to the benefits accruing thereto.

(2) "Tax" includes penalties and interest.

Sec. 36. Section 1, chapter 194, Laws of 1909 and RCW 85.07.040 are each amended to read as follows:

Whenever, upon the trial to fix and assess the benefits and damages resulting from the construction of any diking or drainage system under the laws of this state, the jury shall find by its verdict that any public or county road will be benefited from the construction of such improvement, the clerk of the court in which such trial is had shall, upon the entry of the judgment upon such verdict, certify to the ((~~board of~~)) county ((~~commissioners~~)) legislative authority of the county in which such road is situated the amount of benefits to such road so found and adjudged. The said county ((~~commissioners~~)) legislative authority shall, upon the receipt of such certified statement, allow the same as for other road work and shall order the amount thereof to be paid out of the county road ((~~and bridge~~)) fund ((~~of the road district~~)) in which the road so benefited is situated, and shall direct the auditor of said county to issue a warrant for the amount of such benefits against the road and bridge fund of such road district in favor of the county treasurer of said county. The said county treasurer shall, upon the payment of said warrant, place the proceeds therefrom to the credit of the drainage or diking district from which such benefits resulted.

Sec. 37. Section 26, chapter 176, Laws of 1913 as last amended by section 8, chapter 46, Laws of 1923 and RCW 85.08.370 are each amended to read as follows:

Whenever any system of improvement constructed under the provisions of this chapter will drain, protect or otherwise improve the whole or any part of any public road, roadbed or track thereof, or where any such system of improvement will furnish an outlet for or facilitate the construction or maintenance of any sewer system in any city or town, there shall be apportioned against the state, in the case of state primary and secondary highways, and against the county in which any other such state or county road outside of any incorporated city or town is located, or against the city or town in which any such public road is located, or against any such other road or part thereof so drained, protected or otherwise improved, or against the city or town for which an outlet for sewage will be furnished or wherein the construction or maintenance of a sewer system will be facilitated, the proper amount of the total sum to be apportioned. The ((~~board of~~)) county ((~~commissioners~~)) legislative authority may pay such portion as they deem proper of the amount assessed against the county on account of the drainage, protection or improvement of the roads, out of the ((~~funds of the road district in which such drainage, protection or improvement is made~~)) county road fund. The amount assessed against the state shall be paid out of the appropriate fund of the state.

NEW SECTION. Sec. 38. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.