AN ACT Relating to school district organization; amending RCW 36.70A.035; adding new sections to chapter 28A.315 RCW; adding a new section to chapter 28A.300 RCW; adding new chapters to Title 28A RCW; recodifying RCW 28A.315.020, 28A.315.220, 28A.315.210, 28A.315.690, 28A.315.700, 28A.315.710, 28A.315.720, 28A.315.040, 28A.315.050, 28A.315.060, 28A.315.070, 28A.315.080, 28A.315.090, 28A.315.100, 28A.315.350, 28A.315.360, 28A.315.370, 28A.315.380, 28A.315.390, 28A.315.400, 28A.315.410, 28A.315.420, 28A.315.430, 28A.315.440, 28A.315.450, 28A.315.650, 28A.315.470, 28A.315.480, 28A.315.490, 28A.315.500, 28A.315.530, 28A.315.510, 28A.315.520, 28A.315.540, 28A.315.570, 28A.315.460, 28A.315.600, 28A.315.610, 28A.315.620, 28A.315.630, 28A.315.670, 28A.315.680, 28A.315.550, 28A.315.560, 28A.315.580, 28A.315.590, 28A.315.593, 28A.315.660, 28A.315.597, and 28A.315.640; and repealing RCW 28A.305.150, 28A.315.010, 28A.315.030, 28A.315.110, 28A.315.120, 28A.315.130, 28A.315.140, 28A.315.150, 28A.315.160, 28A.315.170, 28A.315.180, 28A.315.190, 28A.315.200, 28A.315.230, 28A.315.240, 28A.315.250, 28A.315.260, 28A.315.270, 28A.315.280, 28A.315.290, 28A.315.300, 28A.315.310, 28A.315.320, 28A.315.330, 28A.315.340, and 28A.315.900.

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

NEW SECTION. Sec. 1. (1) Under the constitutional framework and the laws of the state of Washington, the governance structure for the state's public common school system is comprised of the following bodies: The legislature, the governor, the superintendent of public instruction, the state board of education, the educational service district boards of directors, and local school district boards of directors. The respective policy and administrative roles of each body are determined by the state Constitution and statutes.

(2) Local school districts are political subdivisions of the state and the organization of such districts, including the powers, duties, and boundaries thereof, may be altered or abolished by laws of the state of Washington.

PART 1

PURPOSE AND POLICY

NEW SECTION. Sec. 101. PURPOSE‑-POLICY. (1) It is the purpose of this chapter to:

(a) Incorporate into a single, comprehensive, school district organization law all essential provisions governing:

(i) The formation and establishment of new school districts;

(ii) The alteration of the boundaries of existing districts; and

(iii) The adjustment of the assets and liabilities of school districts when changes are made under this chapter; and

(b) Establish methods and procedures whereby changes in the school district system may be brought about by the people concerned and affected.

(2) It is the state's policy that decisions on proposed changes in school district organization should be made, whenever possible, by negotiated agreement between the affected school districts. If the districts cannot agree, the decision shall be made by the regional committees on school district organization, based on the committees' best judgment, taking into consideration the following factors and factors under section 402 of this act:

(a) A balance of local petition requests and the needs of the state-wide community at large in a manner that advances the best interest of public education in the affected school districts and communities, the educational service district, and the state;

(b) Responsibly serving all of the affected citizens and students by contributing to logical service boundaries and recognizing a changing economic pattern within the educational service districts of the state;

(c) Enhancing the educational opportunities of pupils in the territory by reducing existing disparities among the affected school districts' ability to provide operating and capital funds through an equitable adjustment of the assets and liabilities of the affected districts;

(d) Promoting a wiser use of public funds through improvement in the school district system of the educational service districts and the state; and

(e) Other criteria or considerations as may be established in rule by the state board of education.

(3) It is neither the intent nor purpose of this chapter to apply to organizational changes and the procedure therefor relating to capital fund aid by nonhigh school districts as provided for in chapter 28A.540 RCW.

PART 2

GENERAL PROVISIONS

NEW SECTION. Sec. 201. REORGANIZATION OF DISTRICTS. (1) A new school district may be formed comprising contiguous territory lying in either a single county or in two or more counties. The new district may comprise:

(a) Two or more whole school districts;

(b) Parts of two or more school districts; and/or

(c) Territory that is not a part of any school district if such territory is contiguous to the district to which it is transferred.

(2) The boundaries of existing school districts may be altered:

(a) By the transfer of territory from one district to another district;

(b) By the consolidation of one or more school districts with one or more school districts; or

(c) By the dissolution and annexation to a district of a part or all of one or more other districts or of territory that is not a part of any school district: PROVIDED, That such territory shall be contiguous to the district to which it is transferred or annexed.

(3) Territory may be transferred or annexed to or consolidated with an existing school district without regard to county boundaries.

NEW SECTION. Sec. 202. A new section is added to chapter 28A.300 RCW to read as follows:

CLASSIFICATION‑-NUMBERING SYSTEM‑-CHANGE OF CLASSIFICATION. (1) The superintendent of public instruction is responsible for the classification and numbering system of school districts.

(2) Any school district in the state that has a student enrollment in its public schools of two thousand pupils or more, as shown by evidence acceptable to the educational service district superintendent and the superintendent of public instruction, is a school district of the first class. Any other school district is a school district of the second class.

(3) Whenever the educational service district superintendent finds that the classification of a school district should be changed, and upon the approval of the superintendent of public instruction, the educational service district superintendent shall make an order in conformity with his or her findings and alter the records of his or her office accordingly. Thereafter, the board of directors of the district shall organize in the manner provided by law for the organization of the board of a district of the class to which the district then belongs.

(4) Notwithstanding any other provision of chapter 43, Laws of 1975, the educational service district superintendent, with the concurrence of the superintendent of public instruction, may delay approval of a change in classification of any school district for a period not exceeding three years when, in fact, the student enrollment of the district within any such time period does not exceed ten percent, either in a decrease or increase thereof.

NEW SECTION. Sec. 203. CONFLICTING OR INCORRECTLY DESCRIBED SCHOOL DISTRICT BOUNDARIES‑-CHANGES. In case the boundaries of any of the school districts are conflicting or incorrectly described, the educational service district board of directors, after due notice and a public hearing, shall change, harmonize, and describe them and shall so certify, with a complete transcript of boundaries of all districts affected, such action to the state board for its approval or revision. Upon receipt of notification of state board action, the educational service district superintendent shall transmit to the county legislative authority of the county or counties in which the affected districts are located a complete transcript of the boundaries of all districts affected.

NEW SECTION. Sec. 204. DISTRICT BOUNDARY CHANGES‑-SUBMISSION TO COUNTY AUDITOR. (1) Any district boundary changes shall be submitted to the county auditor by the educational service district superintendent within thirty days after the changes have been approved in accordance with this chapter. The superintendent shall submit both legal descriptions and maps.

(2) Any boundary changes submitted to the county auditor after the fourth Monday in June of odd-numbered years does not take effect until the following calendar year.

NEW SECTION. Sec. 205. EFFECT OF CHANGES‑-EXISTING PROVISIONS NOT AFFECTED. (1) Any proposed change in school district organization initiated before the effective date of this act shall be considered under the laws and rules in effect before the effective date of this act. This act applies to any proposed change in school district organization initiated on or after the effective date of this act.

(2) For purposes of this section, "initiated" means the filing of a petition, the motion of a school board, or the report of an educational service district. This section does not preclude the filing of a new petition on or after the effective date of this act where the same or a similar proposal was filed before the effective date of this act.

NEW SECTION. Sec. 206. PERSONNEL AND SUPPLIES‑-EXPENSES‑-REIMBURSEMENT. (1) The superintendent of public instruction shall furnish to the state board and to regional committees the services of employed personnel and the materials and supplies necessary to enable them to perform the duties imposed upon them by this chapter and shall reimburse the members thereof for expenses necessarily incurred by them in the performance of their duties, such reimbursement for regional committee members to be in accordance with RCW 28A.315.090 (as recodified by this act), and such reimbursement for state board members to be in accordance with RCW 28A.305.120.

(2) Costs that may be incurred by an educational service district in association with school district negotiations under section 401 of this act and supporting the regional committee under section 402 of this act shall be reimbursed by the state from such funds as are appropriated for these purposes.

PART 3

REGIONAL COMMITTEES ON SCHOOL DISTRICT ORGANIZATION

NEW SECTION. Sec. 301. REGIONAL COMMITTEES‑-POWERS AND DUTIES. The powers and duties of each regional committee are to:

(1) Hear and approve or disapprove proposals for changes in the organization and extent of school districts in the educational service districts when a hearing on a proposal has been requested under section 401 of this act;

(2) Act on notices and proposals from the educational service district under section 501 of this act;

(3) Make an equitable adjustment of the property and other assets and of the liabilities, including bonded indebtedness and excess tax levies as otherwise authorized under this section, as to the old school districts and the new district or districts, if any, involved in or affected by a proposed change in the organization and extent of the school districts;

(4) Make an equitable adjustment of the bonded indebtedness outstanding against any of the old and new districts whenever in its judgment such adjustment is advisable, as to all of the school districts involved in or affected by any change heretofore or hereafter effected;

(5) Provide that territory transferred from a school district by a change in the organization and extent of school districts shall either remain subject to, or be relieved of, any one or more excess tax levies that are authorized for the school district under RCW 84.52.053 before the effective date of the transfer of territory from the school district;

(6) Provide that territory transferred to a school district by a change in the organization and extent of school districts shall either be made subject to, or be relieved of, any one or more excess tax levies that are authorized for the school district under RCW 84.52.053 before the effective date of the transfer of territory to the school district;

(7) Establish the date by which a committee-approved transfer of territory shall take effect;

(8) Hold and keep a record of a public hearing or public hearings (a) on every proposal for the formation of a new school district or for the transfer from one existing district to another of any territory in which children of school age reside or for annexation of territory when the conditions set forth in RCW 28A.315.290 or 28A.315.320 prevail; and (b) on every proposal for adjustment of the assets and of the liabilities of school districts provided for in this chapter. Three members of the regional committee or two members of the committee and the educational service district superintendent may be designated by the committee to hold any public hearing that the committee is required to hold. The regional committee shall cause notice to be given, at least ten days prior to the date appointed for any such hearing, in one or more newspapers of general circulation within the geographical boundaries of the school districts affected by the proposed change or adjustment. In addition notice may be given by radio and television, or either thereof, when in the committee's judgment the public interest will be served thereby; and

(9) Prepare and submit to the superintendent of public instruction from time to time or, upon his or her request, reports and recommendations respecting the urgency of need for school plant facilities, the kind and extent of the facilities required, and the development of improved local school administrative units and attendance areas in the case of school districts that seek state assistance in providing school plant facilities.

NEW SECTION. Sec. 302. POWERS AND DUTIES OF STATE BOARD. The powers and duties of the state board with respect to this chapter shall be:

(1) To aid regional committees in the performance of their duties by furnishing them with plans of procedure, standards, data, maps, forms, and other necessary materials and services essential to a study and understanding of the problems of school district organization in their respective educational service districts.

(2) To hear appeals as provided in section 402 of this act.

NEW SECTION. Sec. 303. ANNUAL TRAINING. To the extent funds are appropriated, the superintendent of public instruction, in cooperation with the educational service districts and the Washington state school directors' association, shall conduct an annual training meeting for the regional committees, state board members, educational service district superintendents, and local school district superintendents and boards of directors. Training may also be provided upon request.

PART 4

TRANSFER OF TERRITORY

NEW SECTION. Sec. 401. TRANSFER OF TERRITORY‑-REQUIREMENTS‑-RESPONSIBILITIES OF SCHOOL DISTRICT BOARD OF DIRECTORS. (1) A proposed change in school district organization by transfer of territory from one school district to another may be initiated by a petition in writing presented to the educational service district superintendent:

(a) Signed by at least ten percent of the registered voters residing in the territory proposed to be transferred; or

(b) Signed by a majority of the members of the board of directors of one of the districts affected by a proposed transfer of territory.

(2) The petition shall state the name and number of each district affected, describe the boundaries of the territory proposed to be transferred, and state the reasons for desiring the change and the number of children of school age, if any, residing in the territory.

(3) The educational service district superintendent shall not complete any transfer of territory under this section that involves ten percent or more of the common school student population of the entire district from which the transfer is proposed, unless the educational service district superintendent has first called and held a special election of the voters of the entire school district from which the transfer of territory is proposed. The purpose of the election is to afford those voters an opportunity to approve or reject the proposed transfer. A simple majority shall determine approval or rejection.

(4) The state board may establish rules limiting the frequency of petitions that may be filed pertaining to territory included in whole or in part in a previous petition.

(5) Upon receipt of the petition, the educational service district superintendent shall notify in writing the affected districts that:

(a) Each school district board of directors, whether or not initiating a proposed transfer of territory, is required to enter into negotiations with the affected district or districts;

(b) In the case of a citizen-initiated petition, the affected districts must negotiate on the entire proposed transfer of territory;

(d) The districts may request and shall be granted by the educational service district superintendent one thirty-day extension to try to reach agreement; and

(e) Any district involved in the negotiations may at any time during the ninety-day period notify the educational service district superintendent in writing that agreement will not be possible.

(6) If the negotiating school boards cannot come to agreement about the proposed transfer of territory, the educational service district superintendent, if requested by the affected districts, shall appoint a mediator. The mediator has thirty days to work with the affected school districts to see if an agreement can be reached on the proposed transfer of territory.

(7) If the affected school districts cannot come to agreement about the proposed transfer of territory, and the districts do not request the services of a mediator or the mediator was unable to bring the districts to agreement, either district may file with the educational service district superintendent a written request for a hearing by the regional committee.

(8) If the affected school districts cannot come to agreement about the proposed transfer of territory initiated by citizen petition, and the districts do not request the services of a mediator or the mediator was unable to bring the districts to agreement, the district in which the citizens who filed the petition reside shall file with the educational service district superintendent a written request for a hearing by the regional committee, unless a majority of the citizen petitioners request otherwise.

(9) Upon receipt of a notice under subsection (7) or (8) of this section, the educational service district superintendent shall notify the chair of the regional committee in writing within ten days.

(10) Costs incurred by school districts under this section shall be reimbursed by the state from such funds as are appropriated for this purpose.

NEW SECTION. Sec. 402. TRANSFER OF TERRITORY‑-REGIONAL COMMITTEE‑-RESPONSIBILITIES. (1) The chair of the regional committee shall schedule a hearing on the proposed transfer of territory at a location in the educational service district within sixty calendar days of being notified under section 401 (7) or (8) of this act.

(2) Within thirty calendar days of the hearing under subsection (1) of this section, or final hearing if more than one is held by the committee, the committee shall issue its written findings and decision to approve or disapprove the proposed transfer of territory. The educational service district superintendent shall transmit a copy of the committee's decision to the superintendents of the affected school districts within ten calendar days.

(3) In carrying out the purposes of section 101 of this act and in making decisions as authorized under section 301(1) of this act, the regional committee shall base its judgment upon whether and to the extent the proposed change in school district organization complies with section 101(2) of this act and rules adopted by the state board under chapter 34.05 RCW.

(4) State board rules under subsection (3) of this section shall provide for giving consideration to all of the following:

(a) The annual school performance reports required under RCW 28A.320.205 in the affected districts and improvement of the educational opportunities of pupils in the territory proposed for a change in school district organization;

(b) The safety and welfare of pupils. For the purposes of this subsection, "safety" means freedom or protection from danger, injury, or damage and "welfare" means a positive condition or influence regarding health, character, and well being;

(c) The history and relationship of the property affected to the students and communities affected, including, for example, inclusion within a single school district, for school attendance and corresponding tax support purposes, of entire master planned communities that were or are to be developed pursuant to an integrated commercial and residential development plan with over one thousand dwelling units;

(d) Whether or not geographic accessibility warrants a favorable consideration of a recommended change in school district organization, including remoteness or isolation of places of residence and time required to travel to and from school; and

(e) All funding sources of the affected districts, equalization among school districts of the tax burden for general fund and capital purposes through a reduction in disparities in per pupil valuation when all funding sources are considered, improvement in the economies in the administration and operation of schools, and the extent the proposed change would potentially reduce or increase the individual and aggregate transportation costs of the affected school districts.

(5)(a)(i) A petitioner or school district may appeal a decision by the regional committee to approve a change in school district organization to the state board based on the claim that the regional committee failed to follow the applicable statutory and regulatory procedures or acted in an arbitrary and capricious manner. Any such appeal shall be based on the record and the appeal must be filed within thirty days of the final decision of the regional committee.

(ii) If the state board finds that all applicable procedures were not followed or that the regional committee acted in an arbitrary and capricious manner, it shall refer the matter back to the regional committee with an explanation of the board's findings. The regional committee shall rehear the proposal.

(iii) If the state board finds that all applicable procedures were followed or that the regional committee did not act in an arbitrary and capricious manner, depending on the appeal, the educational service district shall be notified and directed to implement the changes.

(b) Any school district or citizen petitioner affected by a final decision of the regional committee may seek judicial review of the committee's decision in accordance with RCW 34.05.570.

NEW SECTION. Sec. 403. TRANSFER OF TERRITORY‑-APPROVAL OF PROPOSED TRANSFER‑-ORDER. (1) Upon receipt by the educational service district superintendent of a written agreement by two or more school districts to the transfer of territory between the affected districts, the superintendent shall make an order establishing all approved changes involving the alteration of the boundaries of the affected districts. The order shall also establish all approved terms of the equitable adjustment of assets and liabilities involving the affected districts. The superintendent shall certify his or her action to each county auditor, each county treasurer, each county assessor, and the superintendents of all school districts affected by the action.

(2) Upon receipt by the educational service district superintendent of a written order by the regional committee approving the transfer of territory between two or more school districts, the superintendent shall make an order establishing all approved changes involving the alteration of the boundaries of the affected districts. The order may not be implemented before the period of appeal authorized under section 402(5)(a)(i) of this act has ended. The order shall also establish all approved terms of the equitable adjustment of assets and liabilities involving the affected districts. The superintendent shall certify his or her action to each county auditor, each county treasurer, each county assessor, and the superintendents of all school districts affected by the action.

PART 5

DISSOLUTION AND ANNEXATION OF TERRITORY

NEW SECTION. Sec. 501. DISSOLUTION AND ANNEXATION OF CERTAIN DISTRICTS‑-ANNEXATION OF NONDISTRICT PROPERTY. In case any school district has an average enrollment of fewer than five kindergarten through eighth grade pupils during the preceding school year or has not made a reasonable effort to maintain, during the preceding school year at least the minimum term of school required by law, the educational service district superintendent shall report that fact to the regional committee, which committee shall dissolve the school district and annex the territory thereof to some other district or districts. For the purposes of this section, in addition to any other finding, "reasonable effort" shall be deemed to mean the attempt to make up whatever days are short of the legal requirement by conducting of school classes on any days to include available holidays, though not to include Saturdays and Sundays, prior to June 15th of that year. School districts operating an extended school year program, most commonly implemented as a 45‑15 plan, shall be deemed to be making a reasonable effort. In the event any school district has suffered any interruption in its normal school calendar due to a strike or other work stoppage or slowdown by any of its employees that district shall not be subject to this section. In case any territory is not a part of any school district, the educational service district superintendent shall present to the regional committee a proposal for the annexation of the territory to some contiguous district or districts.

PART 6

CONSOLIDATION OF TERRITORY

NEW SECTION. Sec. 601. CONSOLIDATION‑-PETITION. (1) A proposed change in school district organization by consolidation of territory from two or more school districts to form a new school district may be initiated by:

(a) A written petition presented to the educational service district superintendent signed by ten or more registered voters residing:

(i) In each whole district and in each part of a district proposed to be included in any single new district; or

(ii) In the territory of a proposed new district that comprises a part of only one or more districts and approved by the boards of directors of the affected school districts;

(b) A written petition presented to the educational service district superintendent signed by ten percent or more of the registered voters residing in such affected areas or area without the approval of the boards of directors of the affected school districts.

(2) The petition shall state the name and number of each district involved in or affected by the proposal to form the new district and shall describe the boundaries of the proposed new district. No more than one petition for consolidation of the same two school districts or parts thereof shall be considered during a school fiscal year.

(3) The educational service district superintendent may not complete any consolidation of territory under this section unless he or she has first called and held a special election of the voters of the affected districts to afford those voters an opportunity to approve or reject the proposed consolidation. A simple majority shall determine approval or rejection.

(4) If a proposed change in school district organization by consolidation of territory has been approved under this section, the educational service district superintendent shall make an order establishing all approved changes involving the alteration of the boundaries of the affected districts. The order shall also establish all approved terms of the equitable adjustment of assets and liabilities involving the affected districts. The superintendent shall certify his or her action to each county auditor, each county treasurer, each county assessor, and the superintendents of all school districts affected by the action.

PART 7

ADJUSTMENT OF ASSETS AND LIABILITIES‑-

BONDED INDEBTEDNESS‑-SPECIAL ELECTIONS

NEW SECTION. Sec. 701. ADJUSTMENT OF ASSETS AND LIABILITIES. In determining an equitable adjustment of assets and liabilities, the negotiating school districts and the regional committee shall consider the following factors:

(1) The number of school age children residing in each school district and in each part of a district involved or affected by the proposed change in school district organization;

(2) The assessed valuation of the property located in each school district and in each part of a district involved or affected by the proposed change in school district organization;

(3) The purpose for which the bonded indebtedness of any school district involved or affected by the proposed change in school district organization was incurred;

(4) The history and relationship of the property affected to the students and communities affected by the proposed change in school district organization;

(5) Additional burdens to the districts affected by the proposed change in school district organization as a result of the proposed organization;

(6) The value, location, and disposition of all improvements located in the school districts involved or affected by the proposed change in school district organization;

(7) The consideration of all other sources of funding; and

(8) Any other factors that in the judgment of the school districts or regional committee are important or essential to the making of an equitable adjustment of assets and liabilities.

NEW SECTION. Sec. 702. ADJUSTMENT OF INDEBTEDNESS. (1) The fact of the issuance of bonds by a school district, heretofore or hereafter, does not prevent changes in the organization and extent of school districts, regardless of whether or not such bonds or any part thereof are outstanding at the time of change.

(2) In case of any change:

(a) The bonded indebtedness outstanding against any school district involved in or affected by such change shall be adjusted equitably among the old school districts and the new district or districts, if any, involved or affected; and

(b) The property and other assets and the liabilities other than bonded indebtedness of any school district involved in or affected by any such change shall also be adjusted in the manner and to the effect provided for in this section, except if all the territory of an old school district is included in a single new district or is annexed to a single existing district, in which event the title to the property and other assets and the liabilities other than bonded indebtedness of the old district vests in and becomes the assets and liabilities of the new district or of the existing district, as applicable.

NEW SECTION. Sec. 703. ADJUSTMENT OF BONDED INDEBTEDNESS‑-SPECIAL ELECTIONS. If adjustments of bonded indebtedness are made between or among school districts in connection with the alteration of the boundaries of the school districts under this chapter, the order of the educational service district superintendent establishing the terms of adjustment of bonded indebtedness shall provide and specify:

(1) In every case where bonded indebtedness is transferred from one school district to another school district:

(a) That such bonded indebtedness is assumed by the school district to which it is transferred;

(b) That thereafter such bonded indebtedness shall be the obligation of the school district to which it is transferred;

(c) That, if the terms of adjustment so provide, any bonded indebtedness thereafter incurred by such transferee school district through the sale of bonds authorized before the date its boundaries were altered shall be the obligation of such school district including the territory added thereto; and

(d) That taxes shall be levied thereafter against the taxable property located within such school district as it is constituted after its boundaries were altered, the taxes to be levied at the times and in the amounts required to pay the principal of and the interest on the bonded indebtedness assumed or incurred, as the same become due and payable.

(2) In computing the debt limitation of any school district from which or to which bonded indebtedness has been transferred, the amount of transferred bonded indebtedness at any time outstanding:

(a) Shall be an offset against and deducted from the total bonded indebtedness, if any, of the school district from which the bonded indebtedness was transferred; and

(b) Shall be deemed to be bonded indebtedness solely of the transferee school district that assumed the indebtedness.

(3) In every case where adjustments of bonded indebtedness do

not provide for transfer of bonded indebtedness from one school district to another school district:

(a) That the existing bonded indebtedness of each school district, the boundaries of which are altered and any bonded indebtedness incurred by each such school district through the sale of bonds authorized before the date its boundaries were altered is the obligation of the school district in its reduced or enlarged form, as the case may be; and

(b) That taxes shall be levied thereafter against the taxable property located within each such school district in its reduced or enlarged form, as the case may be, at the times and in the amounts required to pay the principal of and interest on such bonded indebtedness as the same become due and payable.

(4) If a change in school district organization approved by the regional committee concerns a proposal to form a new school district or a proposal for adjustment of bonded indebtedness involving an established school district and one or more former school districts now included therein pursuant to a vote of the people concerned, a special election of the voters residing within the territory of the proposed new district, or of the established district involved in a proposal for adjustment of bonded indebtedness as the case may be, shall be held for the purpose of affording those voters an opportunity to approve or reject such proposals as concern or affect them.

(5) In a case involving both the question of the formation of a new school district and the question of adjustment of bonded indebtedness, the questions may be submitted to the voters either in the form of a single proposition or as separate propositions, whichever seems expedient to the educational service district superintendent. When the regional committee has passed appropriate resolutions for the questions to be submitted and the educational service district superintendent has given notice thereof to the county auditor, the special election shall be called and conducted, and the returns canvassed as in regular school district elections.

NEW SECTION. Sec. 704. NOTICE OF ELECTIONS. Notice of special elections as provided for in section 703 of this act shall be given by the county auditor as provided in RCW 29.27.080. The notice of election shall state the purpose for which the election has been called and contain a description of the boundaries of the proposed new district and a statement of any terms of adjustment of bonded indebtedness on which to be voted.

NEW SECTION. Sec. 705. VOTE--DETERMINATION‑-ORDER‑-CERTIFICATION. (1) If a special election is held to vote on a proposal or alternate proposals to form a new school district, the votes cast by the registered voters in each component district shall be tabulated separately. Any such proposition shall be considered approved only if it receives a majority of the votes cast in each separate district voting thereon.

(2) If a special election is held to vote on a proposal for adjustment of bonded indebtedness, the entire vote cast by the registered voters of the proposed new district or of the established district as the case may be shall be tabulated. Any such proposition shall be considered approved if sixty percent or more of all votes cast thereon are in the affirmative.

(3) In the event of approval of a proposition or propositions voted on at a special election, the educational service district superintendent shall:

(a) Make an order establishing such new school district or such terms of adjustment of bonded indebtedness or both, as were approved by the registered voters and shall also order such other terms of adjustment, if there are any, of property and other assets and of liabilities other than bonded indebtedness as have been approved by the state council; and

(b) Certify his or her action to the county and school district officials specified in section 403 of this act. The educational service district superintendent may designate, with the approval of the superintendent of public instruction, a name and number different from that of any component thereof, but must designate the new district by name and number different from any other district in existence in the county.

(4) The educational service district superintendent shall fix as the effective date of any order or orders he or she is required to make by this chapter, the date specified in the order of final approval of any change in the organization and extent of school districts or of any terms of adjustment of the assets and liabilities of school districts subject, for taxing purposes, to the redrawing of taxing district boundaries under RCW 84.09.030, by the regional committee.

(5) Upon receipt of certification under this section, the superintendent of each school district that is included in the new district shall deliver to the superintendent of the new school district those books, papers, documents, records, and other materials pertaining to the territory transferred.

NEW SECTION. Sec. 706. REJECTION OF PROPOSAL‑-PROCEDURE. If a proposal for the formation of a new school district and for adjustment of bonded indebtedness, or either, is rejected by the registered voters at a special election, the matter is terminated.

NEW SECTION. Sec. 707. CORPORATE EXISTENCE‑-PAYMENT OF BONDED INDEBTEDNESS‑-LEVY AUTHORITY. (1) Each school district involved in or affected by any change made in the organization and extent of school districts under this chapter retains its corporate existence insofar as is necessary for the purpose, until the bonded indebtedness outstanding against it on and after the effective date of the change has been paid in full. This section may not be construed to prevent, after the effective date of the change, such adjustments of bonded indebtedness as are provided for in this chapter.

(2) The county legislative authority shall provide, by appropriate levies on the taxable property of each school district, for the payment of the bonded indebtedness outstanding against it after any of the changes or adjustments under this chapter have been effected.

(3) In case any such changes or adjustments involve a joint school district, the tax levy for the payment of any bonded indebtedness outstanding against the joint district, after the changes or adjustments are effected, shall be made and the proceeds thereof shall be transmitted, credited, and paid out in conformity with the provisions of law applicable to the payment of the bonded indebtedness of joint school districts.

Sec. 708. RCW 36.70A.035 and 1997 c 429 s 9 are each amended to read as follows:

(1) The public participation requirements of this chapter shall include notice procedures that are reasonably calculated to provide notice to property owners and other affected and interested individuals, tribes, government agencies, businesses, school districts, and organizations of proposed amendments to comprehensive plans and development regulation. Examples of reasonable notice provisions include:

(a) Posting the property for site-specific proposals;

(b) Publishing notice in a newspaper of general circulation in the county, city, or general area where the proposal is located or that will be affected by the proposal;

(c) Notifying public or private groups with known interest in a certain proposal or in the type of proposal being considered;

(d) Placing notices in appropriate regional, neighborhood, ethnic, or trade journals; and

(e) Publishing notice in agency newsletters or sending notice to agency mailing lists, including general lists or lists for specific proposals or subject areas.

(2)(a) Except as otherwise provided in (b) of this subsection, if the legislative body for a county or city chooses to consider a change to an amendment to a comprehensive plan or development regulation, and the change is proposed after the opportunity for review and comment has passed under the county's or city's procedures, an opportunity for review and comment on the proposed change shall be provided before the local legislative body votes on the proposed change.

(b) An additional opportunity for public review and comment is not required under (a) of this subsection if:

(i) An environmental impact statement has been prepared under chapter 43.21C RCW for the pending resolution or ordinance and the proposed change is within the range of alternatives considered in the environmental impact statement;

(ii) The proposed change is within the scope of the alternatives available for public comment;

(iii) The proposed change only corrects typographical errors, corrects cross-references, makes address or name changes, or clarifies language of a proposed ordinance or resolution without changing its effect;

(iv) The proposed change is to a resolution or ordinance making a capital budget decision as provided in RCW 36.70A.120; or

(v) The proposed change is to a resolution or ordinance enacting a moratorium or interim control adopted under RCW 36.70A.390.

(3) This section is prospective in effect and does not apply to a comprehensive plan, development regulation, or amendment adopted before July 27, 1997.

PART 8

MISCELLANEOUS PROVISIONS

NEW SECTION. Sec. 801. The following acts or parts of acts are each repealed:

(1) RCW 28A.305.150 (Classification, numbering system of school districts--Rules and regulations for) and 1971 c 54 s 1 & 1969 ex.s. c 223 s 28A.04.130;;

(2) RCW 28A.315.010 (Purpose) and 1990 c 33 s 292 & 1969 ex.s. c 223 s 28A.57.010;

(3) RCW 28A.315.030 (County regional committee members--Assignment of committee member position numbers) and 1993 c 416 s 1, 1990 c 33 s 294, & 1985 c 385 s 30;

(4) RCW 28A.315.110 (Regional committees--Powers and duties) and 1991 c 288 s 2;

(5) RCW 28A.315.120 (Regional committees--Recommendations--Standards) and 1990 c 33 s 299, 1985 c 385 s 10, & 1969 ex.s. c 223 s 28A.57.055;

(6) RCW 28A.315.130 (Changing conflicting or incorrectly described school district boundaries) and 1985 c 385 s 11 & 1971 ex.s. c 282 s 26;

(7) RCW 28A.315.140 (Powers and duties of state board, generally) and 1990 c 33 s 300, 1987 c 100 s 2, 1985 c 385 s 12, & 1969 ex.s. c 223 s 28A.57.060;

(8) RCW 28A.315.150 (Action upon board's report) and 1990 c 33 s 301, 1985 c 385 s 13, 1975 1st ex.s. c 275 s 84, 1969 ex.s. c 176 s 121, & 1969 ex.s. c 223 s 28A.57.070;

(9) RCW 28A.315.160 (Adjustment of bonded indebtedness--Special election in certain cases) and 1985 c 385 s 14, 1975 1st ex.s. c 275 s 85, 1969 ex.s. c 176 s 122, & 1969 ex.s. c 223 s 28A.57.075;

(10) RCW 28A.315.170 (Notice of election--Contents) and 1990 c 33 s 302, 1985 c 385 s 15, 1975 1st ex.s. c 275 s 86, 1971 c 48 s 26, & 1969 ex.s. c 223 s 28A.57.080;

(11) RCW 28A.315.180 (Vote, how determined--ESD superintendent's order--Certification--Effective date) and 1990 c 33 s 303, 1985 c 385 s 16, 1975 1st ex.s. c 275 s 87, 1969 ex.s. c 176 s 123, & 1969 ex.s. c 223 s 28A.57.090;

(12) RCW 28A.315.190 (Procedure upon rejection of proposal) and 1985 c 385 s 17 & 1969 ex.s. c 223 s 28A.57.100;

(13) RCW 28A.315.200 (Personnel and supplies to be furnished by state superintendent--Expenses reimbursed) and 1990 c 33 s 304, 1985 c 385 s 18, & 1969 ex.s. c 223 s 28A.57.110;

(14) RCW 28A.315.230 (Classes of districts--Change of classification) and 1991 c 116 s 25, 1990 c 33 s 306, & 1975-'76 2nd ex.s. c 15 s 3;

(15) RCW 28A.315.240 (Classes of districts--Change of classification--Delay of authorized) and 1975 c 43 s 35;

(16) RCW 28A.315.250 (City or town districts) and 1997 c 47 s 1, 1985 c 385 s 19, 1975 1st ex.s. c 275 s 90, 1969 ex.s. c 176 s 126, & 1969 ex.s. c 223 s 28A.57.150;

(17) RCW 28A.315.260 (Reorganization of districts by transfer of territory or annexation) and 1969 ex.s. c 223 s 28A.57.160;

(18) RCW 28A.315.270 (Petition for reorganization--Conditions) and 1985 c 385 s 20, 1982 c 191 s 1, 1975 1st ex.s. c 275 s 91, 1969 ex.s. c 176 s 127, & 1969 ex.s. c 223 s 28A.57.170;

(19) RCW 28A.315.280 (Transfer of territory--By petition--By ESD superintendent--When election required) and 1985 c 385 s 21, 1975 1st ex.s. c 275 s 92, 1969 ex.s. c 176 s 128, & 1969 ex.s. c 223 s 28A.57.180;

(20) RCW 28A.315.290 (Annexation of district bounded on three sides by high school district) and 1985 c 385 s 22, 1975 1st ex.s. c 275 s 93, 1969 ex.s. c 176 s 129, & 1969 ex.s. c 223 s 28A.57.190;

(21) RCW 28A.315.300 (Single school district for certain United States military reservations--Mandated) and 1990 c 33 s 307 & 1972 ex.s. c 63 s 1;

(22) RCW 28A.315.310 (Single school district for certain United States military reservations--Procedure--Limitations) and 1990 c 33 s 308, 1985 c 385 s 23, & 1972 ex.s. c 63 s 2;

(23) RCW 28A.315.320 (Dissolution and annexation of certain districts--Annexation of nondistrict property) and 1985 c 385 s 24 & 1975-'76 2nd ex.s. c 15 s 4;

(24) RCW 28A.315.330 (Adjustment of indebtedness--Basis) and 1969 ex.s. c 223 s 28A.57.210;

(25) RCW 28A.315.340 (Corporate existence retained to pay bonded indebtedness--Tax levies--Joint school districts) and 1969 ex.s. c 223 s 28A.57.220; and

(26) RCW 28A.315.900 (Proceedings as of July 28, 1985--Effect of 1985 c 385) and 1990 c 33 s 329 & 1985 c 385 s 38.

NEW SECTION. Sec. 802. (1) RCW 28A.315.020 and 28A.315.220 are recodified as new sections in chapter 28A.315 RCW, to be codified in Part 2 of this act before section 201.

(2) RCW 28A.315.210 is recodified as a new section in chapter 28A.315 RCW, to be codified after section 707 of this act.

(3) RCW 28A.315.690, 28A.315.700, 28A.315.710, and 28A.315.720, are recodified as new sections in chapter 28A.315 RCW, to be codified after section 206 of this act.

(4) RCW 28A.315.040, 28A.315.050, 28A.315.060, 28A.315.070, 28A.315.080, 28A.315.090, and 28A.315.100 are recodified as new sections in chapter 28A.315 RCW, to be codified in Part 3 of this act after section 301 of this act.

NEW SECTION. Sec. 803. The following sections are each recodified as a new chapter in Title 28A RCW:

RCW 28A.315.350

RCW 28A.315.360

RCW 28A.315.370

RCW 28A.315.380

RCW 28A.315.390

RCW 28A.315.400

RCW 28A.315.410

RCW 28A.315.420

RCW 28A.315.430

RCW 28A.315.440

NEW SECTION. Sec. 804. The following sections are each recodified as a new chapter in Title 28A RCW:

RCW 28A.315.450

RCW 28A.315.650

RCW 28A.315.470

RCW 28A.315.480

RCW 28A.315.490

RCW 28A.315.500

RCW 28A.315.530

RCW 28A.315.510

RCW 28A.315.520

RCW 28A.315.540

NEW SECTION. Sec. 805. The following sections are each recodified as a new chapter in Title 28A RCW:

RCW 28A.315.570

RCW 28A.315.460

RCW 28A.315.600

RCW 28A.315.610

RCW 28A.315.620

RCW 28A.315.630

RCW 28A.315.670

RCW 28A.315.680

RCW 28A.315.550

NEW SECTION. Sec. 806. The following sections are each recodified as a new chapter in Title 28A RCW:

RCW 28A.315.560

RCW 28A.315.580

RCW 28A.315.590

RCW 28A.315.593

RCW 28A.315.660

RCW 28A.315.597

RCW 28A.315.640

*NEW SECTION. Sec. 807. MORATORIUM ON PETITIONS. The state board may, at its discretion, declare a moratorium on new petitions until such time as the rules have been adopted to implement chapter . . ., Laws of 1999 (this act). The state board shall adopt emergency rules necessary to begin consideration of changes initiated after the effective date of this act.

*Sec. 807 was vetoed. See message at end of chapter.

NEW SECTION. Sec. 808. PART HEADINGS AND SECTION CAPTIONS NOT LAW. Part headings and section captions used in this act are not any part of the law.

NEW SECTION. Sec. 809. Sections 1, 101, 201, 203 through 206, 301 through 303, 401 through 403, 501, 601, 701 through 707, 807, and 808 of this act are each added to chapter 28A.315 RCW.