There are two ways in which a public hospital district might expand: (1) by annexation of additional territory, or (2) by consolidation. The section below describes annexation. (See Section L, “How To Expand A District: Consolidation” for a detailed review of the procedural steps relating to consolidation.)

The public hospital district statute allows hospital districts to annex additional territory not currently located in the district. Only property that is immediately adjacent to the current district boundaries may be annexed.

The annexation of territory can be graphically shown as the following:

As the sections below explain, if there are voters residing in the territory to be annexed, those voters must approve the annexation. This approval can happen in one of two ways: (1) all the registered voters in the territory to be annexed sign a petition, or (2) through the electoral process. If, on the other hand, there are no voters residing in the territory to be annexed, the annexation can be approved by a vote of the district commissioners. The next section describes the procedure if there are no registered voters or if all the registered voters sign the petition for annexation. Immediately following is the section describing the process to be followed when an election must be held.

Territory may be annexed by vote of the commissioners upon a citizen petition provided: (1) there are no qualified electors residing in the territory to be annexed, or (2) all the qualified electors in the territory to be annexed sign the citizen petition. There are a number of complicated procedural steps to be followed [RCW 70.44.200] and some of the steps are prescribed by another statutory provision [RCW 35A.01.040(9)].

RCW 70.44.200 states, “A public hospital district may annex territory outside then existing boundaries of such district and contiguous thereto, whether the territory lies in one or more counties ...” There are two important aspects to annexation which are noteworthy in this statement. First, that the territory to be annexed must be contiguous with the existing district boundaries. Second, that it is permissible to annex territories from different counties. Thus, it is permissible for an intra-county district or a county-wide district to, by annexing territory, transform itself into an inter-county district.

A petition must initiate the annexation of territory. The signers of the petition must be the owners of not less than sixty (60) percent of the area of land within the territory to be annexed. Again, for this process to apply, these owners either must not be “qualified electors” as defined in RCW 29, or the petition must be signed by all the qualified electors in the territory to be annexed. If there are qualified electors in the territory to be annexed who do not sign the petition, the annexation is governed by the process discussed in the section titled “When Qualified Electors Reside in the Territory and Not all Electors Sign the Petition for Annexation.”

If the petition is initiated by property owners, the following requirements apply:

(a) The signature of a record owner, as determined by the records of the county auditor, shall be sufficient without the signature of his or her spouse;

(b) In the case of mortgaged property, the signature of the mortgagor shall be sufficient, without the signature of his or her spouse;

(c) In the case of property purchased on contract, the signature of the contract purchaser, as shown by the records of the county auditor, shall be deemed sufficient, without the signature of his or her spouse;

(d) Any officer of a corporation owning land within the areas involved (in this example, the proposed territory to be annexed) who is duly may sign on behalf of such corporation, and shall attach to the petition a certified excerpt from the bylaws of such corporation showing such authority;

(e) When property stands in the name of a deceased person or any person for whom a guardian has been appointed, the signature of the executor, administrator, or guardian shall be equivalent to the signature of the owner of the property. [RCW 35A.01.040(9) (a) through (e)]

The petition by the property owners must be filed with the public hospital commission of the district to which the annexation is proposed. The petition must describe the boundaries of the territory proposed to be annexed and must be accompanied by a map which outlines the boundaries of the territory.

Whenever such a petition for annexation is filed with the commission of a public hospital district, the board of commissioners may entertain the petition and fix a date for a public hearing on the petition. If they decide to fix a date, they must ensure that notice of the hearing is published once a week for at least two (2) consecutive weeks in a newspaper of general circulation within the territory proposed to be annexed. Furthermore, they must cause to be posted notice in three (3) public places within the territory proposed to be annexed. This posted notice must contain a description of the boundaries of the territory to be annexed, and must specify the time and place of a hearing and invite any interested persons to appear at the hearing and voice approval or disapproval of the proposed annexation.

Further Legal Background

The law is very cryptic as to the requirements of the hearing. Clearly, any and all residents of the territory proposed for annexation may attend to voice their approval and disapproval. Presumably, any interested persons may also attend and participate. Upon hearing all of the comments from interested persons, the public hospital district commissioners must determine whether or not it wishes to accomplish the annexation. By what standards must the commissioners determine the desirability of annexing territory? The law is silent on this point. It is probably prudent to look at language in the other provision of the public hospital statute relating to annexation -- the provision governing annexation when there are qualified electors in the annexation territory who do not sign the petition for annexation. Here, the decision making standard used by county commissioners is the welfare and benefit of persons and property within the territory to be annexed and the welfare and benefit of persons and property within the district. [RCW 70.44.210]

The commissioners must accomplish annexation by resolution. The resolution may annex all or any portion of the proposed territory but it may not include in the annexation any property not described in the petition. Upon passage of the annexation resolution, the territory shall become part of the district and a certified copy of this resolution must be filed with the legislative authority of the county or counties in which the annexed property is located (i.e., the county commissioners.)

The commissioners may require that the petition for annexation (as well as the resolution approving the annexation) provide that the annexed property is to assume and be assessed and taxed to pay for all or any portion of the outstanding indebtedness of the district to which the property is annexed at the same rates as other property within the district. Again, it is the commissioners who may require this. Of course, it is the decision of the property owners of the proposed annexed territory whether or not they agree to this proviso. They demonstrate their acceptance by signing the petition that spells out this proviso.

Unless so provided in the petition and resolution, the property within the boundaries of the territory annexed shall not be assessed or taxed to pay for all or any portion of the indebtedness of the district to which it is annexed that was contracted prior to, or which existed at, the date of annexation.

In no event shall any annexed property be released from any assessments or taxes previously levied against it or from its existing liability for the payment of outstanding bonds or warrants issued prior to such annexation.

In the case where there are qualified electors residing in the territory to be annexed, and not all of the qualified electors sign the petition for annexation, the territory may not be annexed merely by vote of the commissioners upon a citizen petition. Instead, a vote of the qualified electors residing within the territory proposed for annexation is required (in a manner similar to the creation of public hospital district). There are a number of complicated procedural steps to be followed. [RCW 70.44.210 through 70.44.230]

As in the alternative process described above, a public hospital district may annex territory outside then existing boundaries of such district and contiguous thereto, whether the territory lies in one or more counties. The two important aspects to annexation are: (1) that the territory to be annexed must be contiguous with the existing district boundaries and (2) that it is permissible to annex territories from different counties. Thus, it is permissible for an intra-county district or a county-wide district to, by annexing territory, transform itself into an inter-county district.

The commissioners of the public hospital district to which the territory is to be annexed initiate the annexation process by adopting a resolution calling for a vote of the qualified electors residing within the territory to be annexed.

The resolution adopted by the commissioners must conform to the following requirements: (1) it must describe the boundaries of the territory to be annexed, (2) is must state that the annexation of the territory to the public hospital district will be conducive to the welfare and benefit of the persons or property within the district and within the territory proposed to be annexed, and, finally, (3) it must fix the date, time and place for a public hearing about the annexation. The hearing date cannot be more than sixty (60) nor less than forty (40) days following the adoption of the resolution.

The resolution adopted by the district commissioners must fix a date, time and place of a public hearing regarding the proposed annexation. Notice of this hearing must be published once a week for at least two (2) consecutive weeks in one (1) or more newspapers of general circulation within the proposed annexed territory. The published notice must contain: (1) a description of the boundaries of the territory proposed to be annexed, (2) a statement of the time and place of the hearing, and (3) a statement that any changes in the boundaries of the proposed territory will be considered by the board of commissioners at the hearing.

Any and all interested persons may attend the hearing, appear before the commissioners, and be heard on all matters relating to the proposed annexation.

The district commissioners may adjourn the hearing on the annexation from time to time not exceeding thirty (30) days in all.

The commissioners may consider any changes to the boundaries of the proposed area at the hearing. The commissioners may make such changes in the proposed boundaries as they deem “reasonable and proper.” This, then is the statutory statement of their standard of review for changes to the proposal. The commissioners may not delete any portion of the proposed areas which will create an “island” of included or excluded lands. As stated before, the areas to be annexed must be fully contiguous with the original district. If the board of commissioners determine that additional territory should be included in the territory to be annexed, then they must hold a second hearing and repeat the public input process. To hold this second hearing, the commissioners must proceed with the same notice requirements mentioned in the paragraph above.

At the next regular meeting of the board following the conclusion of the annexation hearing, the commissioners may adopt a resolution approving the annexation. Before entertaining a resolution, they must make a finding that the annexation of the territory will be conducive to the welfare and benefit of the persons and property within the territory and the welfare and benefit of the persons and property within the public hospital district. The adopted resolution must fix the boundaries of the territory to be annexed and must call for an election on the matter to be held not more then one hundred twenty (120) days nor less that sixty (60) days following the adoption of the resolution. This, obviously, implies a special election.

If a simple majority of those voting on the proposition vote in favor of the annexation, the annexation is approved.

The commissioners may require that the petition for annexation (as well as the resolution approving the annexation) provide that the annexed property is to assume and be assessed and taxed to pay for all or any portion of the outstanding indebtedness of the district to which the property is annexed at the same rates as other property within the district. Again, it is the commissioners who may require this. Of course, the voters in the special election decide whether or not they agree to this proviso. They demonstrate their acceptance by signing the petition that spells out this proviso.

Unless so provided in the petition and resolution, the property within the boundaries of the territory annexed shall not be assessed or taxed to pay for all or any portion of the indebtedness of the district to which it is annexed that was contracted prior to, or which existed at, the date of annexation.

In no event shall any annexed property be released from any assessments or taxes previously levied against it or from its existing liability for the payment of outstanding bonds or warrants issued prior to such annexation.