Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Community & Economic Development & Trade Committee

HB 2525

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Description: Concerning public facilities districts created by at least two city or county legislative authorities.

Sponsors: Representatives Nealey, Klippert, Chandler and Haler.

Brief Summary of Bill

  • Allows all Public Facilities Districts (PFDs), including multi-city/county PFDs, to construct and operate a regional center.

  • Requires approval by a majority of board members from each jurisdiction within a recreational facility PFD only when submitting a tax proposition to the voters.

Hearing Date: 1/27/10

Staff: Brian Kilgore (786-7119) and Chris Cordes (786-7103).

Background:

A Public Facilities District (PFD) is a municipal corporation with independent taxing authority and is a taxing district under the State Constitution. A PFD may be created by a city, group of cities, county, or a group of cities and a county. A PFD is governed by an appointed board of directors with varying composition and appointing authority.

City PFDs may develop and operate regional centers. A "regional center" is a convention, conference, or special events center, or any combination of facilities, and related parking facilities, serving a regional population. A "special events center" is a facility, available to the public, used for community events, sporting events, trade shows, and artistic, musical, theatrical, or other cultural exhibitions, presentations, or performances. Recreational facilities are not included in the definition of "regional center" or "special events center."

County PFDs may develop and operate sports facilities, entertainment facilities, convention facilities, and regional centers. Districts formed after January 1, 2000, may also develop and operate recreational facilities, other than ski areas.

In 2009, multi-city/county public facilities districts (PFDs) were authorized in jurisdictions that already had a PFD. These new PFDs were only allowed to develop and operate recreational facilities other than ski resorts. To approve a proposition, a majority of board members representing each city or county participating in the additional PFD must approve the proposition.

A PFD may impose a variety of taxes to fund its regional facility. For example, a PFD may levy an admissions tax not exceeding 5 percent, a vehicle parking tax not exceeding 10 percent, and a voter-approved 0.2 percent sales tax. A county PFD may also impose a voter-approved 2 percent lodging tax.

Summary of Bill:

All Public Facilities Districts (PFDs) are allowed to develop and operate a regional center.

Multi-city/county PFDs which are created by jurisdictions that already had a PFD only require the approval of a majority of board members from each participating jurisdiction when submitting tax propositions to the voters.

Appropriation: None.

Fiscal Note: Requested on 1/20/2010.

Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.