BILL REQ. #:  S-1365.2 

Read first time 02/13/13.   Referred to Committee on Governmental Operations.

     AN ACT Relating to dissolution of public hospital districts; and adding a new section to chapter 70.44 RCW.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 70.44 RCW to read as follows:
     (1) A public hospital district with a population exceeding two hundred eighty-five thousand persons, as determined by estimates compiled by the office of financial management, may be dissolved pursuant to the procedure specified in this section if a majority of district voters voting on a ballot proposition to dissolve the district approve the proposition. This section does not preclude dissolution of a public hospital district by any other authorized procedure.
     (2) A ballot proposition to dissolve a public hospital district must be submitted to district voters if:
     (a) The district board of commissioners adopts a resolution proposing dissolution of the district; or
     (b) District voters submit a petition complying with subsection (3) of this section proposing dissolution of the district.
     (3) A petition proposing dissolution of the public hospital district must be:
     (a) Signed by at least ten percent of qualified voters residing in the district;
     (b) Submitted to the auditor of the county in which the district is located or, if the district is located in more than one county, the auditor of the county in which the largest portion of the district is located; and
     (c) Reviewed by the auditor to certify that the petition includes sufficient valid signatures.
     (4) A ballot proposition to dissolve a public hospital district may only be voted upon by district voters at a general election occurring at least sixty days after adoption of a resolution or submission of a petition pursuant to subsection (2) of this section.
     (5) If a ballot proposition to dissolve a public hospital district is approved by district voters, the county legislative authority of the county in which the district is located or, if the district is located in more than one county, the county legislative authorities of the counties in which the district is located, must commence winding down the district's operations, including specifying the manner in which the district's assets will be liquidated and the district's outstanding indebtedness will be paid.
     (6) If proceeds of the sale of the public hospital district's assets and funds held by the district are sufficient to pay the district's outstanding indebtedness and any costs of liquidating district assets, excess funds must be disbursed to the county or, if the district is located in more than one county, disbursed to the counties in which the district is located on a per capita basis.
     (7) If proceeds of the sale of the public hospital district's assets and funds held by the district are insufficient to pay the district's outstanding indebtedness and any costs of liquidating district assets, the county legislative authority of the county in which the public hospital district is located or, if the district is located in more than one county, the county legislative authorities of the counties in which the district is located, must levy taxes in the district in the manner provided by law to pay the district's outstanding indebtedness and any costs of liquidating district assets.
     (8) The public hospital district shall be dissolved after final payment of the district's outstanding indebtedness and any costs of liquidating district assets.