*1 the Bar of costs claimed the statement confirm We 7.1, et seq. to DRA pursuant Hamilton, C.J., Hunter, Rosellini, Finley,

Hale, JJ., concur. Brachtenbach, Utter, Wright, 4, 1973.] 42603. En Banc. October [No. al., Respondents, Public v. et Public Schools

Brewster Douglas Utility County, Appellant. 1 of District No. Hughes, & Richard G. Jeffers, Jeffers Jeffers appellant. Danielson, James *2 Lowry Thomp- Thompson, by Donald

Lee, Krilich, & H. respondents. son H. Frank Crawford, for Utility (appellant), Public J . The defendant Hunter, County, judgment Douglas appeals District No. 1 of from a by holding acquired the trial the court the land lying District, con- defendant, within the Brewster School in stitutes an term is used RCW as that pay the and that the defendant was thus liable plaintiff required proportion of the of bonded indebtedness pursuant (respondent), to the District, Brewster School above mentioned statute. stipulated

This case was submitted to the trial court on may be as follows. The defendant facts which summarized acquired property certain in connection with the construc- Hydroelec- tion, and maintenance of the Wells installation Project portion prop- A tric on the Columbia River. erty acquired of a for location and maintenance the property upstream was, Dam. This reservoir from the Wells variety purposes acquisition, utilized for a at the time of by primary agricultural The use was individual owners. property acquired the defendant and in no case was purpose operat- private being for the used owner system ing plant for the transmission or or energy for sale. distribution of electric clearing construction, and other extensive After purposes. property question for reservoir in was flooded years place flooding after took over several resulting flooding, question. in Since operating plant purpose of used for the reservoir has been system generation, transmission and distribution for the pro- energy reservoir, the for sale. Without electric energy accomplished- could not be of electric duction controversy in this case centers around whether the “operating property acquired the defendant constitutes property” court, as used in RCW 54.28.080.The trial after a history 54.28, concluded that review question property in falls within the ambit of RCW 54.28.080.

The defendant contends that the trial court in erred question holding “operating prop- agree. erty” in RCW 54.28.080.We as used analysis requires An of this contention consideration of following statutes: provides part: 54.28.010,which “Operating property” all of the means utilized by public utility system of operation district in the of a generation, transmission, for the or distribution energy sale;

electric provides: 54.28.080,which *3 any acquires operating property district an Whenever any private person, corporation por- firm, and a from tion of the boundaries of operating property is situated within the any school district and at the time of such outstanding there is an bonded indebtedness public utility then district, the school district shall, imposed by chapter, pay in tax addition di- rectly proportion to the school district a of all subse- payments quent principal the school district of and pay- indebtedness, interest on said bonded said additional computed paid ments to be as follows: The amount principal required paid by and interest to be multiplied by percentage school district shall be property acquired which the assessed value of the bore to the assessed value of the total in the school acquisition. district at time such Such additional paid by public utility amounts shall be district to the days prior school district not less than fifteen to the date principal payments required that be interest are paid any public addition, school district. In utility any private person, district which from corporation firm, or an situated voluntary district, within a school is authorized to make and benefit for the use payments to such school district district. of the school ours.)

(Italics there is provided in RCW the definition Under inconsistency the defini- under 54.28.080,as an with RCW applicable only 54.28.080 tion the time RCW would utility acquired public district would be when a operation utility public aof district “utilized system transmission, or distri- for the private person. energy for from a of electric sale” bution inconsistency in in statutes the above There is a further per- if it need for 54.28.080 would be no there utility op- purchasing only public an district tained to one erating property fourteenth amendment from another. The exempts municipal Washington Constitution State utility corporations are mu- from taxation. Public districts nicipal corporations. if one Thus, 54.12.010. merely purchasing operating prop- were district erty another, this would affect school 54.28.080. there be no need for RCW We levies and would conceivably there a situation that the above do note that designed where a could have been to cover. That is statute acquires private property it has been energy using generate, distribute or transmit electrical interpretation However, this strict would effect sale. read into nonexistence. RCW 54.28.080 exactly legisla- did the question what becomes then — property” “operating it used the term mean when ture 54.28.080? *4 Daly, 241, 81 Wn.2d v. of Amburn case In the recent pages 245-46: (1972), on we stated 178 501P.2d of purpose the function underlying inherent in statutory to effec- interpretation enactments is judicial tuate of legislature. objective . . . or intent of the the construing acts of connected statutes and revised In necessary great repeal, to observe it is and amendment giving to these acts which was an effect to avoid caution legislature. contemplated by the

843 pursuance general object giving of courts, in legislature, not con- effect to the intention of the are meaning language trolled the literal spirit prevails statute, over the letter given or intention of the law but the no should thereof, and construction be injustice gross to a or ab- statute which leads surdity. . . . Legislative purpose, intent, ascertained will, or is to be statutory interpreted in whole, text terms as a object general purpose . . and of the act. . judicial upon placing In construction relating sequence enactment, entire of all statutes subject the same be . . matter should considered. . original

An act and amendment to should be read passed and at time. construed as one law the same (Citations omitted.) Krystad (1965), Lau,

In 72 827, 844, v. Wn.2d 400 P.2d we stated: uncertainty

[W]here doubt or arises from the words used, the section under construction should read in context with the entire act.

(Citations omitted.) statutory

Applying these rules of construction to the stat- question, orig- in utes inally note we p. §

defined Laws of 1941, 245, 1, ch. 809. In that “operating property” act, words were on at used least complete two occasions with reference to a functional facil- ity. 2(a) imposes upon Section of the act a tax the act or privilege engaging operation within the state plants works, or facilities for the distribution and sale of energy. (b) (2) speaks electric Section in terms reproduction depreciation operat- cost new and less of such ing property. speaks Section 3a of constructing the act maintaining operating properties upon the streets, al- leys, public places city within a or town.

The same basic references in Laws of were maintained p. 1947, 259, 1949, ch. Then in both 1079. the 1941and 1947 p. § 1(g), 1949, 803, were amended. Laws of ch. acts p. pres'ent RCW 54.28.080.In Laws *5 844 laws and codified. the above were amended of 13

54.28.080 was enacted without amendment. Section provides: act, 54.28.110, now RCW property the tax Whenever, hereafter, is removed from property acquisition operating rolls as a result of of by generating plant public a or the a construction of utility untary payments entity utility may public make vol- such district, any municipal corporation or

to other levy an amount authorized to collect taxes in and being not to by of tax received exceed amount revenues entity municipal corporation at time or other such acquisition are lost of said or said construction which entity municipal corporation a or other result operating plant or the construc- utility generating tion a district: apply taxing dis- Provided, That section shall in and: Provided 54.28.010, tricts as defined fur- operating property any so ther, That in the event partially or rolls is dismantled removed tax paid payment may be hereunder dismantled the shall be correspondingly reduced. ours.)

(Italics inconsistency no here. There would be The same exists acquired tax a need for relief where operating property operating property, definition an by public district for the is one a utilized energy for transmission, of electrical sale. or distribution stronger provided legislature much in- However, has by distinguishing, of its intent dication operating property acquisition of and the con- between plant. generating dis- use the words struction of operating partially with reference dismantled mantled that the used a further indication is facility property” “operating with reference to the words transmitting, distributing generating, capable that is energy upon acquisition. electrical meaning upon “operat place the literal To narrow ing property” 54.28.080would render as used RCW say “operating property” meaningless. in To statute generation in the that will be utilized cludes all energy ignore references electrical express language past and the statutory construction Established rules of RCW 54.28.080. meaning require phrase given that each word and County v. 400 P.2d 609 Fellers, effect. Chelan Wn.2d *6 (1965), and cases cited therein. preceding the “an” the

Moreover, use of the word “operating property” 54.28.080,indicates a words in RCW to a intent to limit the effect of this statute property by public utility acquired certain class property negates including It the all ac districts. idea quired districts within ambit legislature property statute. If the all had wished include acquired transmission, defendants distribu generation energy, tion, or it electrical could have used property.” question the words “all The then becomes what legislature referring class was the it to when “operating property” used the terms in RCW 54.28.080.We legislature “operating property” believe the used the words facility capable generating, with reference to a transmit ting, distributing energy upon acquisition. electrical It is designed grant obvious to us that RCW 54.28.080is relief special public utility situation which results when a operating facility private from a com pany. of such a creates a loss of a large they taxable item for the school districts which relied upon issuing bonds.

Compensation nonoperating to the school districts where provided is removed from the tax rolls is for in imposes upon privilege 54.28.020, a tax engaging operating plants, in the business of works, facilities for the distribution and sale electric energy. requires per- RCW 54.28.090 that a minimum of 35 apportioned cent of said taxes be to the school districts county having properties within the within their great generated by priv- limits. The increase in revenue ilege imposed conceivably tax in RCW 54.28.020 would nonoperating resulting

offset the loss of revenues properties being from tax rolls. removed entirety,

Considering satisfied, we RCW 54.28in its are “operating stated, heretofore that the intended complete property,” as used in RCW mean utility facility. acquired functional electrical Since question not otherwise, we hold does respondent ,and come statute, within the ambit of the payments school district therefore is entitled provided for therein. title of also contends that defendant p. 799, 2,

Laws of is in violation of article 227, disagree. of our state constitution. We section 19 provides: of our state constitution Article section subject, one more than and that “No bill embrace shall expressed in the title.” shall jurisdiction that article in this

It is established well *7 complied if the constitution is with 19 of our state section gives its so to reasona notice of contents of act title the Lounsbery, bly inquiry contents. State v. into its lead to an (1968). estab 445 1017 It is also well 659, P.2d 74 Wn.2d may general, act and all the title to an that lished may germane incidental or thereto be written into matters body Lounsbery, supra. the of the law. State v. p. provides

The title of the Laws part: relating privilege against, to . taxes and

An Act . . obligations by, public utility payment the certain . . districts . 54.28.080), (now the (g) which of the act

Section scope title, re- of the the is outside contends defendant propor- utility pay public a districts certain quires that the when the school districts indebtedness of the bonded tion acquire utility an public districts the The title the the school district. the boundaries within payment obligations specifically the certain mentions act put utility is and sufficient to by public districts inquire on into the district notice to contents act. judgment of the trial court is reversed. JJ., con-

Hale, C.J., Rosellini, Hamilton, Stafford, and cur. (dissenting) public utility J.

Brachtenbach, —When by private acquires property previously held inter- Recognizing ests, that is taken from the tax rolls. potential burden to school districts which had issued now-exempt legisla- property, on bonds in reliance provided protection ture, in to the districts public utility requiring pay the same principal amount of and interest that the would produced private ownership. have simple, logical

To me the intent of the statute is that majority by holding clear. Yet the thwarts that intent property by private it is the nature use prior governs application owner statute. majority opinion leads the anomalous result acquisition by district of was in what ownership

private nongenerating property a valuable re- quires payment acquisi- no the school district while equally generating property requires tion of an valuable Obviously payment. the result to the school district ex- actly deprived in either the same case—it has been of bond moneys payment on the tax rolls when Considering bonds were authorized. the relevant sections of I cannot attribute to 54.28, *8 illogical unreasonable intent. pertinent portion

The of RCW 54.28.080 “When- reads: any utility] [public acquires operating ever district any private person, corporation firm, from or majority legislature . .” . The contends that if the had the intended to include within ambit of RCW 54.28.080all by public utility gener- property acquired districts for the ation, energy, or of electric transmission distribution is as just But it could have used the words “all property.” had to legislature to that if the intended logical argue a the only by public the statute trigger upon for facility previously used such pur- district a utility it could have said so. poses, in RCW

Moreover, the overlooks the fact majority the for (which chapter 54.28) 54.28.010 all controlling is as “all did define “operating property” utilized a by public utility operation or transmission, system or for . . .” (Italics of electric sale energy distribution is majority, not issue, The dealt with mine.) pivotal of “utilized” in RCW 54.28.010. meaning inconsistency be- out a majority potential points If one assumes —as 54.28.010 and RCW 54.28.080. tween RCW in RCW does—that “utilized” majority implicitly use to property prior 54.28.010 is restricted to be two cannot utility district sections public acquisition, if one this definition incorporates read For together. .080, into literally “utilized” from RCW 54.28.010 it would only utility public mean that .080 when a applies firm person, corporation prop- private dis- used erty which was previously transmission or distribution trict for the generation, reading for sale. Such narrow energy electrical at intent strained best. is stipulated have without parties of electric could herein, energy the production question 54.28.010 believe that “utilized” in RCW I accomplished. this, property, intended include the its acquisition be so utilized after “uti- Indeed, the common definitions of word district. in use: an element change lize” suggest useful: turn to account profitable make Utilize: convert use. make use of: use: Dictionary (1963). New International Third Webster’s

849 Applying “utilized,” this broader definition in- 54.28.010is consistent with 54.28.080.Indeed terpretation logical to result that which leads exempt proportionate becomes from taxation bear its must standpoint existing share bonded indebtedness. From the pay obligation of the school to indebt- district’s its bonded part it its edness matters little whether loses revenue by generating acquiring district’s a taxed by public utility acquiring district’s extensive equal purposes. farmlands of value for Conceiva- reservoir bly majority the dollar loss could be but the identical, grants reimbursement case and it in one denies statutory other. We should avoid construction leads gross injustice Daly, ato or absurd results. Amburn v. 81 (1972). 241, Wn.2d 501 P.2d 178 The must have property acquired intended that the term “utilized” include future creation of a facility. generating arguments remaining majority sup- offered

port illogical unpersuasive. its result are The contention part privilege allocation school districts of of the public utility tax levied on districts RCW 54.28.020 resulting could offset the loss revenue from removal nonoperating property from the tax rolls is erroneous purely makeweight. nothing There is record drastically show a correlation between these different In fact, sources revenue. the school distribution formula requires percent a reduction in state funds of 85 of re- ceipts public utility pur- district funds distributed redemption paid suant to RCW while bond funds pursuant 54.28.080 are used to reduce state Attorney Opinion, Aug. fund distributions. General 1963. impact upon ap- The difference in fiscal the local district is parent majority’s justify and refutes effort to its result on that basis. majority’s tracing legislative history absolutely nothing legis- adds to a

statute determination of 850 “operating property” has intent. The definition of

lative exactly throughout enact- remained same several § 54.28.080resulted from Laws ments. RCW any (g). here- enacted it read “Whenever As then operating property, section after defined *10 portion omitted act . . .” The underlined language § The omitted was sur- 8. Laws plusage that definitions mandates its as RCW 54.28.010 provisions chapter. apply that Thus, I submit to all history. no is to the issue aid rendered majority engaged speculation is final only apply when the statute to intended large does of a item. record there is a loss taxable herein. The involved the value indicate language no intent. The sur- of the statute indicates conjecture recog- disappears appeal one when face may just redemption as funds nizes that loss of bond acquires great thousands a when purposes when for reservoir of valuable farmlands acres facility generating acquires line. In or a transmission a majority’s opinion require acquisi- can be read fact, facility applies. There tion of an entire before the statute holding. nothing under create such Even in the statute to interpretation, apply majority’s the statute should substation, for when private utility. example, from a require the defendant the trial court and I would affirm comply with RCW 54.28.080. JJ., Utter, concur with Brachten- Wright, Finley, bach, J. rehearing denied November 1973.

Petition for