BILL REQ. #:  S-5088.2 

Read first time 02/06/08.   Referred to Committee on Government Operations & Elections.

     AN ACT Relating to disincorporation of cities and towns; amending RCW 35.07.010 and 35.07.090; and repealing RCW 35.07.020, 35.07.040, 35.07.050, 35.07.060, 35.07.070, 35.07.080, 35.07.100, 35.07.110, 35.07.130, 35.07.140, 35.07.150, 35.07.160, 35.07.170, 35.07.180, 35.07.190, 35.07.200, 35.07.210, 35.07.220, and 35.07.225.

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

Sec. 1   RCW 35.07.010 and 1994 c 81 s 10 are each amended to read as follows:
     (1) Cities and towns may disincorporate through a proposed petition for disincorporation. The petition for disincorporation must be signed by a majority of the registered voters thereof and filed with the city or town council. The council shall initiate an election to be heard on the proposition of disincorporation. Notice of such election shall be given as provided in RCW 29A.52.351.
     (2) The ballots for the election shall be printed with the words "for dissolution" in one line and the words "against dissolution" in another line. In all other respects the ballots shall be in conformity with the law regulating elections in such cities and towns. The municipality shall be responsible for the expense of printing the ballots.
     (3) The election shall be conducted as other elections are required by law to be conducted in the city or town except as otherwise provided in this chapter. The canvassing authority shall certify the results of the election, together with the ballots cast, to the council. The council shall meet within one week after certification and shall declare the result which shall be made a matter of record in the journal of the council proceedings. If the vote "for dissolution" is a majority of the registered voters of such city or town voting at such election, such corporation shall be deemed dissolved.

Sec. 2   RCW 35.07.090 and 1965 c 7 s 35.07.090 are each amended to read as follows:
     (1) Upon disincorporation of a city or town, its powers and privileges as such, are surrendered to the state and it is absolved from any further duty to the state or its own inhabitants ((and all the offices appertaining thereto shall cease to exist immediately upon the entry of the result: PROVIDED, That if a receiver is required, the officers shall continue in the exercise of all their powers until a receiver has qualified as such, and thereupon shall surrender to him all property, money, vouchers, records and books of the city or town including those in any manner pertaining to its business)). All assets, liabilities, and indebtedness of the previously incorporated city or town will revert back to the originating county. The originating county treasurer shall take possession of all the money, vouchers, records, and books of the former municipality.
     (2) Disincorporation shall not impair the obligation of any contract. If any franchise lawfully granted has not expired at the time of disincorporation, the disincorporation does not impair any right thereunder and does not imply any authority to interfere therewith to any greater extent than the city or town might have, if it had remained incorporated.
     (3) 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 district or annexed to adjoining districts as may be ordered by the board of county commissioners of the county embracing such city or town.

NEW SECTION.  Sec. 3   The following acts or parts of acts are each repealed:
     (1) RCW 35.07.020 (Petition -- Requisites) and 1965 c 7 s 35.07.020;
     (2) RCW 35.07.040 (Calling election -- Receiver) and 1997 c 361 s 4 & 1965 c 7 s 35.07.040;
     (3) RCW 35.07.050 (Notice of election) and 1965 c 7 s 35.07.050;
     (4) RCW 35.07.060 (Ballots) and 1965 c 7 s 35.07.060;
     (5) RCW 35.07.070 (Conduct of election) and 1965 c 7 s 35.07.070;
     (6) RCW 35.07.080 (Canvass of returns) and 1965 c 7 s 35.07.080;
     (7) RCW 35.07.100 (Effect of disincorporation -- Existing contracts) and 1965 c 7 s 35.07.100;
     (8) RCW 35.07.110 (Effect of disincorporation -- Streets) and 1965 c 7 s 35.07.110;
     (9) RCW 35.07.130 (Elected receiver -- Failure to qualify -- Court to appoint) and 1965 c 7 s 35.07.130;
     (10) RCW 35.07.140 (No receiver elected though indebtedness exists -- Procedure) and 1965 c 7 s 35.07.140;
     (11) RCW 35.07.150 (Duties of receiver -- Claims -- Priority) and 1965 c 7 s 35.07.150;
     (12) RCW 35.07.160 (Receiver may sue and be sued) and 1965 c 7 s 35.07.160;
     (13) RCW 35.07.170 (Receiver -- Power to sell property) and 1965 c 7 s 35.07.170;
     (14) RCW 35.07.180 (Receiver -- Power to levy taxes) and 1973 1st ex.s. c 195 s 11 & 1965 c 7 s 35.07.180;
     (15) RCW 35.07.190 (Receiver's compensation) and 1965 c 7 s 35.07.190;
     (16) RCW 35.07.200 (Receiver -- Removal for cause) and 1965 c 7 s 35.07.200;
     (17) RCW 35.07.210 (Receiver -- Successive appointments) and 1965 c 7 s 35.07.210;
     (18) RCW 35.07.220 (Receiver -- Final account and discharge) and 1965 c 7 s 35.07.220; and
     (19) RCW 35.07.225 (Applicability of general receivership law) and 2004 c 165 s 43.