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                             ENGROSSED HOUSE BILL 2977

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State of Washington              52nd Legislature             1992 Regular Session

By Representatives Appelwick, Padden, Hargrove, Van Luven, Riley, Schmidt, Jacobsen, Paris, Heavey, Brough, Rasmussen, R. King, Leonard, G. Fisher, May, Ludwig, Anderson, Peery, H. Myers, Neher, Horn, Fuhrman, Betrozoff, Tate, Vance, Ballard, P. Johnson, Wang, Ferguson and J. Kohl

Read first time 02/07/92.  Referred to Committee on Revenue.Creating a cause of action for wrongful removal of a professional sports franchise.

     AN ACT Relating to wrongful removal of a professional sports franchise; adding new sections to chapter 4.24 RCW; creating a new section; prescribing penalties; and declaring an emergency.

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

NEW SECTION. Sec. 1.      The legislature finds that:

     (1) Professional sports franchises are unique economic entities and, though privately owned, have great public value.

     (2) Awarding a professional sports franchise vests rights and economic benefits in the state and in political subdivisions of the state.

     (3) Removal of a professional sports franchise from a state causes economic damages to the state and its political subdivisions.

     Therefore, it is vital to protect the state and its political subdivisions from economic loss from wrongful removal of a professional sports franchise.

NEW SECTION. Sec. 2.      The state and its political subdivisions shall have a cause of action for economic damages against any person, corporation, state, or other entity responsible for a decision or action, or inaction, resulting in the wrongful removal of a professional sports franchise from this state.

NEW SECTION. Sec. 3.      The removal of a professional sports franchise is wrongful upon the occurrence of any one or more of the following elements:

     (1) The removal occurs after the rejection of a purchaser on the basis of residence, race, color, creed, or nationality;

     (2) The removal is a violation of the Washington state franchise act;

     (3) The removal results in a violation of any contract or lease between the franchise and an entity of government; or

     (4) Other circumstances amounting to bad faith.

NEW SECTION. Sec. 4.      The measure of damages to the state or its political subdivisions shall be the loss of direct or indirect tax revenues as demonstrated by normal revenue forecast procedures, expert analysis, or historic collections for a period of six years from the date the franchise is removed from the state.  The court may award punitive damages upon finding that the defendant's actions giving rise to the liability were taken in bad faith.  The court shall award the prevailing party reasonable attorneys' fees and costs.

NEW SECTION. Sec. 5.      The legislature finds that any professional sports league granting a franchise in this state is doing business in this state and that the league and its member owners, commissioners, and officers have submitted to jurisdiction in the state courts of the state of Washington.

NEW SECTION. Sec. 6.      Venue for litigation of professional sports franchise issues shall be the county in which the primary home facility of the franchise team is located.

NEW SECTION. Sec. 7.      If more than one person is found liable on a claim under section 2 of this act, the liability of such persons shall be joint and several.

NEW SECTION. Sec. 8.      Sections 1 through 7 of this act are each added to chapter 4.24 RCW.

NEW SECTION. Sec. 9.      This act shall apply to all actions taken on or after the effective date of this act that give rise to an action under section 2 of this act.

NEW SECTION. Sec. 10.     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 shall take effect immediately.