Revised          HOUSE OF REPRESENTATIVES

                      Olympia, Washington

Bill Analysis      Bill No. HB 1539

Regulating fire district associations                Public Hrg:  2/18/97

Brief Title

Reps. Honeyford/Fisher/Schoesler                Staff Contact: S. Lundin

Sponsor                                    Comm. on Govt. Admin.

                                           Phone: 786-7127

BACKGROUND:

1)Nonprofit corporation created by fire protection districts.

Fire commissioners of fire protection districts are authorized to adopt articles of association or articles of incorporation under private nonprofit corporation laws forming an association to secure information of value in suppressing and preventing fires and other district purposes, hold and attend meetings, and promote the more economical and efficient operation of associated fire protection districts.  Expenses of the nonprofit corporation are paid from funds paid by member fire protection districts.  Contributions by any member fire protection district may not exceed 2.5 cents per $1,000 of assessed valuation of the district in any calendar year.

A fire protection district with one or more employee is authorized to impose property taxes of up to 75 cents per $1,000 of assessed valuation per year to finance its activities.  A fire protection district without an employee is authorized to impose property taxes of up to 50 cents per $1,000 of assessed valuation per year to finance its activities.

2.Nature of a municipal corporation.

A municipal corporation is a unit of local government with specific boundaries and governing body that is authorized to perform various public functions.  Most municipal corporations are formed by voter approval and are governed by a governing body elected by voters.

A municipal corporation is subject to audit by the state auditor.  Meetings of the governing body of a municipal corporation are subject to the Open Public Meetings Act.  Records of a municipal corporation are subject to the Public Records Act.  Officers and employees of a municipal corporation are subject to the Code of Conduct for municipal officers.

                                                     Continued

HB 1539 - Page 2

Property owned by a municipal corporation is exempt from taxation, but is subject to the leasehold excise tax if leased to a taxable entity.

SUMMARY:

The nonprofit corporation that fire protection districts are authorized to create is declared to be a municipal corporation.

FISCAL NOTE:  Not requested.

EFFECTIVE DATE:  Ninety days after adjournment of session in which bill is passed.