State senators on Monday gave an initial nod to a bill requiring county commission approval of annexations across county lines -- legislation stemming directly from a dispute over whether Helena, at the request of a developer, can annex a four-acre parcel adjacent to city limits but over the Jefferson County line.

The bill by Sen. Terry Murphy, R-Cardwell, won 29-20 approval on its second reading.

Helena city officials on Monday night said they want to review their options regarding future joint planning with Jefferson County. City commissioners also want to look over existing agreements with their southern neighbors and said they would hesitate to enter other working relationships with the county while waiting for the dust to settle on the annexation issue.

"I'd like to give a little more thought ... to what we do in northern Jefferson County," City Commissioner Sandy Oitzinger said.

City officials are concerned Murphy's bill, which would require any cross-county annexations meet approval of county commissioners, could open Helena to court action.

The proposed law doesn't set any methods by which a request could be rejected or denied, and city officials are unsure it can stand up to legal review.

"I've got real concerns about the legal standing of this bill," City Manager Tim Burton said. "If you're required to ask the permission of Jefferson County ... there's no criteria by which Jefferson County would ... approve or deny the request."

"Any decision they make is going to be potentially labeled as arbitrary," City Attorney David Neilsen said, though he doesn't think the city could be held liable if a developer sues over a rejected annexation.

Jefferson County Attorney Mathew Johnson said a rejection wouldn't be arbitrary.

"They'd have to have ... valid reasons why they would deny an option for a landowner to annex into the city of Helena," he said. "There are situations where it'd probably be the best thing to do with a parcel."

Johnson doesn't think the city would be liable if a request was denied because the city wouldn't be the entity making the decision.

"They'd have a pretty strong defense," he said.

Jefferson County Commission Chair Ken Weber was happy to hear the bill won initial approval.

"I do believe that it's a statewide issue and the Legislature needs to be involved in that," he said.

City commissioners said they want to make sure the city isn't held liable for rejected annexations, and they want to ensure the city doesn't entangle itself in more agreements with Jefferson County until all of the legal questions have been worked out.

"I don't want to burn bridges with Jefferson County, but if the line is so sacrosanct to Jefferson County commissioners, maybe we'd better rethink our relationship," City Commissioner Bob Throssell said.

"You don't pick fights with the neighbors," City Commissioner Paul Cartwright said. "At least, we don't."

Commissioners also made it clear they will not change a city ordinance that requires landowners to agree to annexation before water and sewer services are provided.

The commission hasn't yet considered the annexation requested by Jim and Jan Paulsen of Montana City.

Officials agreed the issue, which has already spawned an attorney general's opinion and a pending lawsuit, has been marred with misunderstanding. Testimony at the Capitol included stories of Helena forcing annexation over the protests of 100 homeowners. Helena officials said the story was false and said the city doesn't forcibly annex.

"I would like to put that to rest once and for all," Mayor Jim Smith said.

Nielsen said the city has filed a motion to dismiss Jefferson County's lawsuit. A district judge hasn't yet ruled on the motion.

City and county officials haven't yet agreed upon the creation of a joint planning board.

Officials on both sides said they want to continue to work together to resolve the issue, and they agree joint planning in northern Jefferson County is a worthy goal.

The bill is SB339.

Larry Kline can be reached

at 447-4075 or

larry.kline@helenair.com.