AN ACT Relating to fiscal matters; amending RCW 67.40.020; adding new sections to chapter 67.40 RCW; creating a new section; making an appropriation; providing expiration dates; and declaring an emergency.

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

NEW SECTION. Sec. 1. A new section is added to chapter 67.40 RCW to read as follows:

(1) The corporation may borrow from excess balances of the state treasury to pay cash deficiencies resulting from project completion costs. However, the corporation shall not borrow from the excess balances of the agricultural permanent fund, the Millersylvania park permanent fund, the state university permanent fund, the normal school permanent fund, the permanent common school fund, or the scientific permanent fund. The moneys authorized to be borrowed under this subsection are limited to the amounts appropriated under section 5 of this act, less any payments received by the corporation under an agreement and settlement with Industrial Indemnity Co. or sale of private development rights by the corporation.

(2) For the purposes of this section, project completion costs include (a) all remaining development, construction, and administrative costs related to completion of the convention center; (b) demolition costs of the McKay apartment building as well as limited additional construction costs to make the Eagles building and retail and parking spaces ready for occupancy and use; and (c) project reserves and contingency funds.

(3) The borrowing authority provided in this section is in addition to the authority to borrow from the general fund to meet the bond retirement and interest requirements set forth in RCW 67.40.060.

(4) This section expires June 30, 1992.

NEW SECTION. Sec. 2. A new section is added to chapter 67.40 RCW to read as follows:

(1) The corporation may borrow from excess balances of the state treasury to pay cash deficiencies resulting from on-going operational costs. However, the corporation shall not borrow from the excess balances of the agricultural permanent fund, the Millersylvania park permanent fund, the state university permanent fund, the normal school permanent fund, the permanent common school fund, or the scientific permanent fund. The moneys authorized to be borrowed under this subsection are limited to amounts appropriated for corporation operations.

(2) Borrowing from the state treasury for on-going operational costs shall be permissible only during such periods when debt service principal plus interest payments and operating costs exceed revenues available to the corporation from all sources.

(3) The borrowing authority provided in this section is in addition to the authority to borrow from the general fund to meet the bond retirement and interest requirements set forth in RCW 67.40.060.

(4) This section expires June 30, 1999.

NEW SECTION. Sec. 3. A new section is added to chapter 67.40 RCW to read as follows:

The corporation shall repay all moneys borrowed under sections 1 and 2 of this act, together with interest at a rate equal to the return on investments of the state treasury during the period of the loan.

Sec. 4. Section 2, chapter 34, Laws of 1982 as last amended by section 1, chapter 210, Laws of 1984 and RCW 67.40.020 are each amended to read as follows:

The governor is authorized to form a public nonprofit corporation in the same manner as a private nonprofit corporation is formed under chapter 24.03 RCW. The public corporation shall be an instrumentality of the state and have all the powers and be subject to the same restrictions as are permitted or prescribed to private nonprofit corporations, but shall exercise those powers only for carrying out the purposes of this chapter and those purposes necessarily implied therefrom. The governor shall appoint a board of nine directors for the corporation who shall serve terms of six years, except that two of the original directors shall serve for two years and two of the original directors shall serve for four years. The directors may provide for the payment of their expenses. The corporation may cause a state convention and trade center with an overall size of approximately three hundred thousand square feet to be designed and constructed on a site in the city of Seattle. In acquiring, designing, and constructing the state convention and trade center, the corporation shall consider the recommendations and proposals issued on December 11, 1981, by the joint select committee on the state convention and trade center.

The corporation may acquire and transfer real and personal property by lease, sublease, purchase, or sale, and further acquire property by condemnation of privately owned property or rights to and interests in such property pursuant to the procedure in chapter 8.04 RCW, or gift, accept grants, request the financing provided for in RCW 67.40.030, cause the state convention and trade center facilities to be constructed, and do whatever is necessary or appropriate to carry out those purposes. The corporation may enter into lease and sublease contracts for a term exceeding the fiscal period in which such lease and sublease contracts are made: PROVIDED, That such contracts are approved by the director of financial management in consultation with the chairpersons of the ways and means committees of the house of representatives and the senate. The terms of sale or lease of properties acquired by the corporation on February 9, 1987, pursuant to the property purchase and settlement agreement entered into by the corporation on June 12, 1986, excepting the McKay parcel which the corporation is contractually obligated to sell under that agreement, shall also be subject to the approval of the director of financial management in consultation with the chairpersons of the ways and means committees of the house of representatives and the senate. In order to allow the corporation flexibility to secure appropriate insurance by negotiation, the corporation is exempt from RCW 48.30.270. The corporation shall maintain, operate, promote, and manage the state convention and trade center.

In order to allow the corporation flexibility in its personnel policies, the corporation is exempt from chapter 41.06 RCW, chapter 41.05 RCW, RCW 43.01.040 through 43.01.044, chapter 41.04 RCW and chapter 41.40 RCW.

NEW SECTION. Sec. 5. There is appropriated to the state convention and trade center corporation from the state convention and trade center account the sum of $63,040,000 as follows:

(1) For all remaining development, construction, and administrative costs related to completion of the convention center:

(a) $20,000,000 to be borrowed from the state treasury to be repaid to the treasury to the extent that moneys are received from the sale of private development rights by the corporation;

(b) $1,070,000 contribution to the corporation from the city of Seattle; and

(2) $12,720,000 for the McKay building demolition, the Eagles building rehabilitation, construction of rentable retail space, construction of an operable parking garage, and project reserves and contingency funds. Moneys may be expended from this amount by the corporation only after approval of the director of financial management.

NEW SECTION. Sec. 6. In recognition that the Washington state convention and trade center is nearing completion and will commence operation in 1988, the legislature desires to consider alternative systems of governance for the convention center. The joint select committee created by 1987 Senate Concurrent Resolution No. 8412 shall review, evaluate, and report to the legislature by January 1, 1988, on the operational, managerial, and financial feasibility and the advantages and disadvantages of alternative systems of governance and funding that would (1) separate the convention center to the maximum extent practicable from state responsibility and control; (2) provide for maximum practicable state control of the convention center; or (3) continue or modify the existing public nonprofit corporation and instrumentality of the state as enacted in chapter 67.40 RCW.

NEW SECTION. Sec. 7. This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect immediately.