"Sec. 1   RCW 35A.14.295 and 1997 c 429 s 36 are each amended to read as follows:
     (1) The legislative body of a code city may resolve to annex territory ((containing residential property owners)) to the city if there is within the city, unincorporated territory:
     (a) Containing less than one hundred seventy-five acres and having ((at least eighty percent)) all of the boundaries of such area contiguous to the code city; or
     (b) Of any size and having at least eighty percent of the boundaries of such area contiguous to the city ((if such area existed before June 30, 1994)), and is within the same county and within the same urban growth area designated under RCW 36.70A.110, and the city ((was)) is planning under chapter 36.70A RCW ((as of June 30, 1994)).
     (2) The resolution shall describe the boundaries of the area to be annexed, state the number of voters residing therein as nearly as may be, and set a date for a public hearing on such resolution for annexation. Notice of the hearing shall be given by publication of the resolution at least once a week for two weeks prior to the date of the hearing, in one or more newspapers of general circulation within the code city and one or more newspapers of general circulation within the area to be annexed.
     (3) For purposes of subsection (1)(b) of this section, territory bounded by a river, lake, or other body of water is considered contiguous to a city that is also bounded by the same river, lake, or other body of water."