H-1664              _______________________________________________

 

                                                    HOUSE BILL NO. 918

                        _______________________________________________

 

State of Washington                              49th Legislature                              1985 Regular Session

 

By Representatives Dellwo and Barrett

 

 

Read first time 2/8/85 and referred to Committee on Ways & Means.

 

 


AN ACT Relating to public stadiums, convention, performing arts, and visual arts facilities; amending RCW 67.28.120, 67.28.150, 67.28.160, and 67.28.210; adding new sections to chapter 67.28 RCW; and recodifying RCW 67.28.220.

 

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

 

        Sec. 1.  Section 5, chapter 236, Laws of 1967 as last amended by section 1, chapter 222, Laws of 1979 ex. sess. and RCW 67.28.120 are each amended to read as follows:

          Any municipality is authorized either individually or jointly with any other municipality, or person, or any combination thereof, to acquire by purchase, gift or grant, to lease as lessee, and to construct, install, add to, improve, replace, repair, maintain, operate and regulate the use of public stadium facilities, convention center facilities, performing arts center facilities, and/or visual art center facilities, whether located within or without such municipality, including but not limited to buildings, structures, concession and service facilities, roads, bridges, walks, ramps and other access facilities, terminal and parking facilities for private vehicles and public transportation vehicles and systems, together with all lands, properties, property rights, equipment, utilities, sewers, accessories and appurtenances necessary for such public stadium facilities, convention center facilities, performing arts center facilities, or visual arts center facilities, and to pay for any engineering, planning, marketing, financial, legal and professional services incident to the development and operation of such public facilities.

 

        Sec. 2.  Section 8, chapter 236, Laws of 1967 as amended by section 56, chapter 186, Laws of 1984 and RCW 67.28.150 are each amended to read as follows:

          To carry out the purposes of this chapter any municipality shall have the power to issue general obligation bonds within the limitations now or hereafter prescribed by the laws of this state.  Such general obligation bonds shall be authorized, executed, issued and made payable as other general obligation bonds of such municipality:  PROVIDED, That the governing body of such municipality may provide that such bonds mature in not to exceed forty years from the date of their issue, may provide that such bonds also be made payable from any special taxes provided for in RCW 67.28.180 or section 5 of this 1985 act, and may provide that such bonds also be made payable from any otherwise unpledged revenue which may be derived from the ownership or operation of any properties.

 

        Sec. 3.  Section 9, chapter 236, Laws of 1967 as last amended by section 168, chapter 167, Laws of 1983 and RCW 67.28.160 are each amended to read as follows:

          (1) To carry out the purposes of this chapter the legislative body of any municipality shall have the power to issue revenue bonds without submitting the matter to the voters of the municipality:  PROVIDED, That the legislative body shall create a special fund or funds for the sole purpose of paying the principal of and interest on the bonds of each such issue, into which fund or funds the legislative body may obligate the municipality to pay all or part of amounts collected from the special taxes provided for in RCW 67.28.180 or section 5 of this 1985 act, and/or to pay such amounts of the gross revenue of all or any part of the facilities constructed, acquired, improved, added to, repaired or replaced pursuant to this chapter, as the legislative body shall determine:  PROVIDED, FURTHER, That the principal of and interest on such bonds shall be payable only out  of such special fund or funds, and the owners of such bonds shall have a lien and charge against the gross revenue pledged to such fund.

          Such revenue bonds and the interest thereon issued against such fund or funds shall constitute a claim of the owners thereof only as against such fund or funds and the revenue pledged therefor, and shall not constitute a general indebtedness of the municipality.

          Each such revenue bond shall state upon its face that it is payable from such special fund or funds, and all revenue bonds issued under this chapter shall be negotiable securities within the provisions of the law of this state.  Such revenue bonds may be registered either as to principal only or as to principal and interest as provided in RCW 39.46.030, or may be bearer bonds; shall be in such denominations as the legislative body shall deem proper; shall be payable at such time or times and at such places as shall be determined by the legislative body; shall be executed in such manner and bear interest at such rate or rates as shall be determined by the legislative body.

          Such revenue bonds shall be sold in such manner as the legislative body shall deem to be for the best interests of the municipality, either at public or private sale.

          The legislative body may at the time of the issuance of such revenue bonds make such covenants with the owners of said bonds as it may deem necessary to secure and guaranty the payment of the principal thereof and the interest thereon, including but not being limited to covenants to set aside adequate reserves to secure or guaranty the payment of such principal and interest, to pledge and apply thereto part or all of any lawfully authorized special taxes provided for in RCW 67.28.180 or section 5 of this 1985 act, to maintain rates, charges or rentals sufficient with other available moneys to pay such principal and interest and to maintain adequate coverage over debt service, to appoint a trustee or trustees for the bond owners, to safeguard the expenditure of the proceeds of sale of such bonds and to fix the powers and duties of such trustee or trustees and to make such other covenants as the legislative body may deem necessary to accomplish the most advantageous sale of such bonds.  The legislative body may also provide that revenue bonds payable out of the same source may later be issued on a parity with revenue bonds being issued and sold.

          The legislative body may include in the principal amount of any such revenue bond issue an amount for engineering, architectural, planning, marketing, financial, legal, and other services and charges incident to the acquisition ((or)), construction, or operation of public stadium facilities, convention center facilities, performing arts center facilities, and/or visual arts center facilities, an amount to establish necessary reserves, an amount for working capital and an amount necessary for interest during the period of construction of any facilities to be financed from the proceeds of such issue plus six months.  The legislative body may, if it deems it in the best interest of the municipality, provide in any contract for the construction or acquisition of any facilities or additions or improvements thereto or replacements or extensions thereof that payment therefor shall be made only in such revenue bonds.

          If the municipality shall fail to carry out or perform any of its obligations or covenants made in the authorization, issuance and sale of such bonds, the owner of any such bond may bring action against the municipality and compel the performance of any or all of such covenants.

          (2) Notwithstanding subsection (1) of this section, such bonds may be issued and sold in accordance with chapter 39.46 RCW.

 

        Sec. 4.  Section 14, chapter 236, Laws of 1967 as last amended by section 5, chapter 222, Laws of 1979 ex. sess. and RCW 67.28.210 are each amended to read as follows:

          All taxes levied and collected under RCW 67.28.180 or section 5 of this 1985 act shall be credited to a special fund in the treasury of the county or city imposing such tax.  Such taxes shall be levied only for the purpose of paying all or any part of the cost of acquisition, construction, or operating of stadium facilities, convention center facilities, performing arts center facilities, and/or visual arts center facilities or to pay or secure the payment of all or any portion of general obligation bonds or revenue bonds issued for such purpose or purposes under this chapter, or to pay for advertising, publicizing, or otherwise distributing information for the purpose of attracting visitors and encouraging tourist expansion when a county or city has imposed such tax for such purpose, or as one of the purposes hereunder, and until withdrawn for use, the moneys accumulated in such fund or funds may be invested in interest bearing securities by the county or city treasurer in any manner authorized by law.

 

          NEW SECTION.  Sec. 5.  A new section is added to chapter 67.28 RCW, to be numbered RCW 67.28.250, to read as follows:

          (1) In addition, or instead of, the excise tax authorized by RCW 67.28.180, the legislative body of any municipality is authorized, solely for the purpose of carrying out the powers granted by this chapter, to levy and collect a special excise tax not to exceed two-tenths of one percent of the selling price or value of the article used on all transactions which are taxable under chapter 82.14 RCW.

          (2) Any county ordinance or resolution adopted pursuant to this chapter shall contain, in addition to all other provisions required to conform to this chapter, a provision allowing a credit against the county tax for the full amount of any city tax imposed pursuant to this chapter upon the same taxable event.

          (3) This section shall only apply to class A counties located east of the Cascade Mountains.

 

          NEW SECTION.  Sec. 6.  A new section is added to chapter 67.28 RCW, to be numbered RCW 67.28.260, to read as follows:

          (1) Any city imposing the special excise tax authorized in section 5 of this act may contract with the state department of revenue for its collection and distribution, as provided in chapter 82.14 RCW, for the collection and distribution of general sales taxes imposed by cities.

          (2) This tax is in addition to the sales taxes that cities are authorized to impose in chapter 82.14 RCW and RCW 67.28.180.  The tax shall not be a deduction from sales taxes imposed by the state.

 

          NEW SECTION.  Sec. 7.  A new section is added to chapter 67.28 RCW, to be numbered RCW 67.28.270, to read as follows:

          Any municipality exercising the powers authorized by this chapter, either individually or jointly with any other municipality or person, or any combination thereof, may establish a commission to carry out the powers and duties of this chapter.

          The commission shall be established by ordinance or resolution by any municipality acting on its own, or by interlocal agreement by municipalities acting jointly.  The ordinance, resolution, or agreement shall provide:  (1) For a total number of commission members, not less than five, who shall be resident taxpayers of the municipalities involved; (2) for the terms to be served by the members and the compensation, if any; and (3) for the method of selection of each member.  Upon creation and appointment, the commission shall organize, select officers for terms to be fixed by ordinance, resolution, or agreement, and adopt, and from time to time, amend rules of procedure.

          The commission shall have all the powers granted by the municipalities subject to those set forth in RCW 67.28.120 and 67.28.130:  PROVIDED, That any condemnation actions must be instituted only by approval of, and in the name of, the governing bodies of the municipalities involved.  Real property acquired shall be held by the municipality if acting individually, or by municipalities acting jointly as tenants in common.

          For the purpose of providing funds for necessary expenditures in carrying out the provisions of this chapter, a special fund shall be created and maintained, into which each municipality involved shall deposit funds to carry out the powers under this chapter.  Such funds shall be provided by bond issues, taxes authorized by this chapter, and appropriations made by municipalities, along with revenues obtained from the ownership, control, and operation of the stadium, convention center, performing arts, or visual arts facilities.  Disbursements made from this fund shall be made by order of the commission in accordance with such rules and for such purposes as the appointing governing body, or governing bodies acting jointly, shall prescribe.

 

          NEW SECTION.  Sec. 8.  RCW 67.28.220 is recodified as RCW 67.28.320.