HOUSE BILL REPORT

RESSB 6074

As Amended by the House

BYSenate Committee on Ways & Means (originally sponsored by Senators West, Stratton, McCaslin and Saling)

Revising provisions on public facilities districts.

House Staff:Bill Robinson (786-7136)

AS PASSED HOUSE MAY 7, 1989

BACKGROUND:

In 1988, the Legislature enacted Chapter 36.100 RCW, authorizing the creation, by public vote, of public facility districts to acquire or construct and operate convention, sports, entertainment, trade, and related parking facilities. Methods of financing the facilities include a hotel/motel tax on premises exceeding 40 units, an admissions tax on publicly owned assembly facilities, a property tax, and general obligation bonds.

The 1988 act also appropriated $1,000,000 from the state building construction account to the Department of Community Development for a Spokane trade, sports, and convention facility. The appropriation is contingent on creation of a Spokane public facility district.  If construction bonds are not issued by December 31, 1991, repayment of the appropriation, with interest, is required.  The appropriation expires on June 30, 1989 unless the Legislature reapproriates the $1,000,000 or some other amount.

SUMMARY:

A public vote to create a public facility district is not required.  The district may be formed by resolution of the county legislative authority and the city council of the largest city.  However, no taxes may be levied without a public vote validating the creation of the district.  The district board of directors must include at least one representative of the hotel industry.  The public facility to be constructed is limited to sports and entertainment facilities with related parking facilities.  The public admissions tax authorization is also removed.

Fiscal Note:      Available.