SB 5364 — Removing disincentives to the voluntary formation of regional fire protection service authorities by establishing parity, equalizing certain provisions with existing laws governing fire protection districts, and clarifying the formation process.

S-1398.2SUBSTITUTES-0792.1SENATE SENATE BILL 5364State of Washington65th Legislature2017 Regular SessionBy Senate Local Government (originally sponsored by Senators Palumbo, Angel, Takko, and Zeiger)READZeigerRead FIRSTfirst TIMEtime 02/15/17.AN01/20/17. ACT Relating to removing disincentives to the voluntary formation of regional fire protection service authorities by establishing parity, equalizing certain provisions with existing laws governing fire protection districts, and clarifying the formation process;

amendingReferred RCWto 52.26.220,Committee 52.26.230,on 84.55.092,Local 52.18.050,Government.AN 52.18.010,ACT 52.26.180,Relating 52.26.030,to 84.52.043,removing 84.52.043,disincentives 84.52.125,to the voluntary formation of regional fire protection service authorities by establishing parity, equalizing certain provisions with existing laws governing fire protection districts, and 52.26.070;clarifying the formation process;

amending RCW 52.26.220, 52.26.230, 84.55.092, 52.18.050, 52.18.010, 52.26.180, 52.26.030, 52.26.230, 84.52.043, 84.52.043, 84.52.125, and 84.55.092;

and declaring an emergency.BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:Sec. 1.  RCW 52.26.220 and 2006 c 200 s 12 are each amended to read as follows:(1) ((Notwithstanding any other provision in this chapter to the contrary, any)) (a) The initial imposition of a benefit charge authorized by this chapter ((is not effective unless a proposition to impose the benefit charge is approved by a)) must be approved by not less than sixty percent majority of the voters of the regional fire protection service authority voting at a general election or at a special election called by the authority for that purpose((, held within the authority)).

A benefit charge authorized by this chapter is not applicable to the personal property or improvements to real property of any individual, corporation, partnership, firm, organization, or association maintaining a fire department and whose fire protection and training system has been accepted by a fire insurance underwriter maintaining a fire protection engineering and inspection service authorized by the state insurance commissioner to do business in this state, but the property may be protected by the authority under a contractual agreement.(((3))) (5) For administrative purposes, the benefit charge imposed on any individual property may be compiled into a single charge, provided that the authority, upon request of the property owner, provide an itemized list of charges for each measurable benefit included in the charge.(((4)))charge.(((4)))(6)(a) (6)(a) At the annual review of the fire benefit charge mandated by RCW 52.26.230(2),52.18.060(2), if a fire service agency has identified:(i) A tax-exempt property under subsection (2)(b) of this section as having a substantial increase in requested emergency services over the previous year;

The community risk reduction plan may include but is not limited to wellness programs and community action plans.(b) At the subsequent annual review, if the heightened service requirements have not been reasonably addressed by the joint mitigation efforts, and the tax-exempt property owner has not acted in good faith:(i) The property is subject to assessment of the fire benefit charge in the subsequent year, subject to approval by the board of fire commissioners as outlined in RCW 52.26.230(2);52.18.060(2);

Any participating fire protection jurisdiction may withdraw upon thirty calendar days' written notice to the other jurisdictions.Sec. 9.  RCW 84.52.01052.26.230 and 20152004 3rdc sp.s.129 s 29 are each amended to read as follows:(1) Not fewer than ten days nor more than six months before the election at which the proposition to impose the benefit charge is submitted as provided in this chapter, the governing board of the regional fire protection service authority, or the planning committee if the benefit charge is proposed as part of the initial formation of the authority, shall hold a public hearing specifically setting forth its proposal to impose benefit charges for the support of its legally authorized activities that will maintain or improve the services afforded in the authority.

A report of the public hearing shall be filed with the county treasurer of each county in which the property is located and be available for public inspection.(2) Prior to November 15th of each year the governing board of the authority shall hold a public hearing to review and establish the regional fire protection service authority benefit charges for the subsequent year.(3) All resolutions imposing or changing the benefit charges must be filed with the county treasurer or treasurers of each county in which the property is located, together with the record of each public hearing, before November 30th immediately preceding the year in which the benefit charges are to be collected on behalf of the authority.(4) After the benefit charges have been established, the owners of the property subject to the charge must be notified of the amount of the charge.Sec. 10.  RCW 84.52.010 and 2015 3rd sp.s.

and(vii) Seventh, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates authorized for fire protection districts under RCW 52.16.130, regional fire protection service authorities under RCW 52.26.140(1)(a), library districts, metropolitan park districts created before January 1, 2002, under their first fifty cent per thousand dollars of assessed valuation levy, and public hospital districts under their first fifty cent per thousand dollars of assessed valuation levy, must be reduced on a pro rata basis or eliminated.Sec. 10.  RCWeliminated.Sec. 11.  RCW 84.52.010 and 2015 3rd sp.s.

and(vii) Seventh, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates authorized for fire protection districts under RCW 52.16.130, regional fire protection service authorities under RCW 52.26.140(1)(a), library districts, metropolitan park districts created before January 1, 2002, under their first fifty cent per thousand dollars of assessed valuation levy, and public hospital districts under their first fifty cent per thousand dollars of assessed valuation levy, must be reduced on a pro rata basis or eliminated.Sec. 11.  RCWeliminated.Sec. 12.  RCW 84.52.043 and 2015 3rd sp.s.

and (l) levies imposed by a regional transit authority under RCW 81.104.175.Sec. 12.  RCW81.104.175.Sec. 13.  RCW 84.52.043 and 2015 3rd sp.s.

and (l) levies imposed by a regional transit authority under RCW 81.104.175.Sec. 13.  RCW81.104.175.Sec. 14.  RCW 84.52.125 and 2005 c 122 s 1 are each amended to read as follows:A fire protection district or regional fire protection service authority may protect the district's or authority's tax levy from prorationing under RCW 84.52.010(((2))) (3)(b) by imposing up to a total of twenty-five cents per thousand dollars of assessed value of the tax levies authorized under RCW 52.16.140 and 52.16.160, or 52.26.140(1) (b) and (c) outside of the five dollars and ninety cents per thousand dollars of assessed valuation limitation established under RCW 84.52.043(2), if those taxes otherwise would be prorated under RCW 84.52.010(((2)(e))) (3)(b)(vi).Sec. 14.  RCW(3)(b)(vi).Sec. 15.  RCW 52.26.07084.55.092 and 20061998 c 20016 s 53 are each amended to read as follows:Iffollows:The regular property tax levy for each taxing district other than the votersstate approvemay be set at the plan,amount which would be allowed otherwise under this chapter if the regular property tax levy for the district for taxes due in prior years beginning with 1986 had been set at the full amount allowed under this chapter including creationany levy authorized under RCW 52.16.160 or 52.26.140(1)(c) that would have been imposed but for the limitation in RCW 52.18.065 or 52.26.240, applicable upon imposition of the benefit charge under chapter 52.18 RCW or RCW 52.26.180.The purpose of this section is to remove the incentive for a regionaltaxing firedistrict protectionto servicemaintain authorityits tax levy at the maximum level permitted under this chapter, and impositionto protect the future levy capacity of taxesa andtaxing benefitdistrict charges,that ifreduces any,its tax levy below the authoritylevel isthat formedit onotherwise could impose under this chapter, by removing the adverse consequences to future levy capacities resulting from such levy reductions.NEW SECTION.  Sec. 16.  Sections 5 and 6 of this act apply to benefit charges approved after the effective date asof setthis forthsection.NEW SECTION.  Sec. 17.  Section 10 of this act expires January 1, 2018.NEW SECTION.  Sec. 18.  Section 11 of this act takes effect January 1, 2018.NEW SECTION.  Sec. 19.  Sections 10 through 15 of this act apply to property taxes levied for collection in 2017 and thereafter.NEW SECTION.  Sec. 20.  Section 12 of this act expires January 1, 2018.NEW SECTION.  Sec. 21.  Section 13 of this act takes effect January 1, 2018.NEW SECTION.  Sec. 22.  Except for sections 11 and 13 of this act, this act is necessary for the planimmediate orpreservation of the nextpublic Januarypeace, 1sthealth, or Julysafety, 1st,or whicheversupport occursof first.the state government and its existing public institutions, and takes effect immediately.--- END ---

The appropriate county election officials shall, within fifteen days of the final certification of the election results, publish a notice in a newspaper or newspapers of general circulation in the authority declaring the authority formed.

A party challenging the procedure or the formation of a voter-approved authority must file the challenge in writing by serving the prosecuting attorney of each county within, or partially within, the regional fire protection service authority and the attorney general within thirty days after the final certification of the election.

Failure to challenge within that time forever bars further challenge of the authority's valid formation.NEW SECTION.  Sec. 15.  Sections 5 and 6 of this act apply to benefit charges approved after the effective date of this section.NEW SECTION.  Sec. 16.  Section 9 of this act expires January 1, 2018.NEW SECTION.  Sec. 17.  Section 10 of this act takes effect January 1, 2018.NEW SECTION.  Sec. 18.  Sections 9 through 13 of this act apply to property taxes levied for collection in 2018 and thereafter.NEW SECTION.  Sec. 19.  Section 11 of this act expires January 1, 2018.NEW SECTION.  Sec. 20.  Section 12 of this act takes effect January 1, 2018.NEW SECTION.  Sec. 21.  Except for sections 10 and 12 of this act, this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.--- END ---