SENATE BILL REPORT

                  SHB 1643

              As Reported By Senate Committee On:

             Government Operations, March 30, 1995

Title:  An act relating to new counties.

Brief Description:  Providing procedures for creating new counties.

Sponsors:  House Committee on Government Operations (originally sponsored by Representatives Stevens, Cairnes, Koster, L. Thomas, Dyer, Cooke, B. Thomas, Thompson, D. Schmidt, Boldt, Lambert and Backlund).

Brief History:

Committee Activity:  Government Operations:  3/29/95, 3/30/95 [DPA, DNP].

SENATE COMMITTEE ON GOVERNMENT OPERATIONS

Majority Report:  Do pass as amended.

  Signed by Senators Haugen, Chair; Sheldon, Vice Chair; Drew, Hale, Heavey and McCaslin.

Minority Report:  Do not pass.

  Signed by Senator Winsley.

Staff:  Rod McAulay (786-7754)

Background: The procedure to create a new county involves the following steps:

!A petition proposing the creation of the new county must be signed by at least a majority of the voters residing in the portion of each county that is proposed to be included in the new county;

!Special legislation is enacted by the Legislature creating the new county, defining the boundaries of the new county, and altering the boundaries of the parent county or counties out of which territory was removed to create the new county; and

!Any other requirements that are established in general laws.

The population of a new county must be at least 2,000 and the population of a parent county from which territory is removed to create the new county may not be reduced to less than 4,000.

The Legislature has enacted very few general laws relating to the creation of a new county.  These provisions relate to the distribution of the parent county's debts and liabilities between the new county and what remains of the parent county.  The auditors of the parent county and new county meet and attempt to agree upon the allocation of the parent county's liabilities.  If they cannot agree, then a third person is called to decide.  The property taxes of the parent county that are imposed, but not collected, are to be apportioned between the parent county and new county on the basis of the assessed valuation of property.

By implication from these provisions, it appears that the parent county's buildings, roads and bridges that are located in the new county are transferred to the new county.

Summary of Amended Bill:  The process for creating a new county is clarified.

Petition requirements. A petition proposing the new county must request the creation of the new county, include a description of the new county, and in addition to the signature of each petitioner include their printed name and address.  After January 1, 1997, petitions signatures must be dated and must have been affixed within two years of submission of the petitions to the Secretary of State.

Filing and validation of petitions. A petition to create a new county is filed with the Secretary of State together with the names of up to 15 proponents who are the contact persons for the Secretary of State and county auditors.  Upon receipt of the petition, the Secretary of State forwards copies to the appropriate county auditor for validation of individual signatures and for certification of the number required to meet constitutional requirements.  The percentage of signatures required is calculated on the basis of the number of votes cast in the preceding gubernatorial election.  The Secretary of State must also request the Office of Financial Management to certify the population of the proposed new county and of the remnant parent county.

If the petitions do not have sufficient signatures, additional signatures may be collected and filed over a 90 day period.  The new signatures are reviewed using the same process.  If there still are insufficient valid signatures, the Secretary of State notifies the appropriate county auditors and the proponents of the new county.

If the petitions have sufficient signatures, the Secretary of State notifies the Legislature and requests special legislation to create the new county.

Special legislation and election. The Legislature may enact special legislation creating the new county subject to a vote of the residents of the proposed new county.  The special legislation must provide for the boundaries of the new county, must provide for a court system, must provide for financing the transition and establishment of the government of the new county, must designate the elected offices, and may provide any special requirements or standards for apportioning debts and assets or for the election creating the new county. The question of creating the new county is placed on the ballot at the next general election more than 60 days following the effective date of the special legislation.

Initial county officers. The initial officer for the county, as designated in the special election, is elected at the same election at which the question of formation of the county is voted on.  If formation of the new county is not approved, the votes on county officers are not counted.  If formation is approved, the officers take office on January 1, following the election.

Interim period and formal formation. If formation of the new county receives a favorable vote, a one-year interim period commences on January 1, following the election.  During this interim period, the initial county officers establish a county government, adopt ordinances and budgets, provide for the assessment of taxes and otherwise prepare for operations to commence at the end of the interim period.

Distribution of debts, liabilities and assets. During the interim period, the county auditors for the new county and the remnant parent county meet and negotiate an agreement apportioning the debts, liabilities and assets of the parent county between the new county and the remnant parent county.  If agreement cannot be reached within 90 days, either auditor may petition the state court of appeals to make a just apportionment.  The division of the Court of Appeals in which the largest population of the new county is resident has jurisdiction.  The Court of Appeals is authorized to appoint a special master who, in turn, may employ such professionals as may be required to assist him or her in  evaluating and recommending a just apportionment.  The Court of Appeals shall issue an order making a just apportionment, which order shall be final.

Special districts. Special districts are retained in the new county as if the new county had not been created.  The road district or districts in the parent county or counties are altered to remove territory that was removed from the parent county or counties and included in the new county.

Court jurisdiction. All cases pending in the courts of the parent county involving residents or property of the new county remain in the courts of the parent county unless all parties stipulate to a change of venue.

Amended Bill Compared to Substitute Bill:  The substitute bill differed from the amended bill in the following respects:

The substitute bill does not require an election.

The substitute bill does not require the dating of petition signatures nor require that they be affixed to the petitions within two years of submission of the petitions to the Secretary of State.

The substitute bill defines "proponents" to include all persons appearing at the Office of the Secretary of State to submit petitions rather than a fixed list of up to 15 persons.

The substitute bill does not permit the Legislature to modify the boundaries of the proposed new county other than to correct minor errors.

The substitute bill provides that the initial county officers are appointed.  The Governor will appoint two county commissioners from among the "proponents."  These two shall, in turn, appoint a third commissioner and the three shall appoint the remaining county officials who shall serve until successors are elected and take office.

The substitute bill provides that the parent county must absorb the expense of copying and transferring records and documents and shall otherwise provide financial support for the new county.

The substitute bill provides that if the county auditors cannot agree to an apportionment of debts, liabilities and assets, the state auditor shall mediate and decide.

The substitute bill provides that any cases in the courts of the parent county affecting title or possession of real property in the new county or in which all parties are residents of the new county must be transferred to the courts of the new county.  It is not stated when this transfer must occur.

Appropriation:  None.

Fiscal Note:  Requested on February 16, 1995.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  The process for formation of a new county is clarified.  Signatures should not be restricted to active registered voters.  The striker makes a good bill better.  An election is essential.

Testimony Against:  This will result in costly additional governments.  The vote should be before special legislation.  There is a need to "vest" existing petitions.  This is a recipe for chaos.

Testified:  David Guadalupe, Freedom County (con); Gary Lowe, Assn. of Counties; Fred Holden, Assn. of Forming Now Counties (pro); Mary Butler; Arnold Hansen, Skykomish County Comm. (pro); Ray Radke, Pioneer County Comm. (pro); Peter Poeschel, Frank Bell, Freedom County (pro); Ted Cowan, Cedar County (pro); D. Ingram (con); Les Abberhouse (con).