H-4678.1 _______________________________________________
SUBSTITUTE HOUSE BILL 2722
_______________________________________________
State of Washington 52nd Legislature 1992 Regular Session
By House Committee on Trade & Economic Development (originally sponsored by Representatives Jacobsen, Cantwell, Basich, Casada, G. Fisher, Ferguson, Wineberry, Neher, Appelwick, Paris, Heavey, Beck, Nelson, Brumsickle, Bray and J. Kohl)
Read first time 02/07/92.
AN ACT Relating to professional sports franchises; amending RCW 35.21.695; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 35.21.695 and 1987 c 32 s 2 are each amended to read as follows:
(1) The legislature finds that substantial public benefits result from the operation of professional sports franchises in Washington state, including tourism, creation of economic development and tax revenues, recreation opportunities for the citizens of the state, full utilization of public facilities, and urban development. The legislature also finds that counties and cities have expended substantial sums to attract and keep professional sports franchises, with much of these expenditures approved directly by the citizens through, for example, the approval of bonds to finance public stadiums and arenas. The risk of relocation of professional franchises outside the state exists despite the support provided to the franchises by counties, cities, and the citizens of this state. The legislature intends to authorize counties and cities to take an ownership interest in a professional sports franchise when the franchise owner announces the intention to sell or move the franchise, provided that the public ownership interest is consistent with limitations imposed by the state Constitution.
(2)
Any city, code city, or county, individually or collectively, may own and
operate an existing professional sports franchise or an interest in the
franchise when the owners of ((such franchises)) the franchise
announce their intention to sell or move ((a)) the franchise.
(((2)))
(3) If a city, code city, or county purchases a professional sports
franchise or an interest in the franchise, a public corporation shall be
created to manage and operate the franchise or the city's, code city's, or
county's interest in the franchise. The public corporation created under
this section shall have all of the authorities granted by RCW 35.21.730 through
35.21.757.
(4) The governing body of the city, code city, or county shall approve the purchase of a franchise or an ownership interest in a franchise by ordinance or resolution. The ordinance or resolution shall contain specific findings that the purchase has a public purpose and is the most reasonable alternative the city, code city, or county has to ensure that the professional sports franchise does not relocate.
(5) When a city, code city, or county purchases an ownership interest in a professional sports franchise: (a) Any benefit from the public purchase to other private owners or the franchise shall be incidental to achieving the public purpose; (b) the city, code city, or county shall receive adequate consideration for the public investment, and the public investment shall be restricted to an indebtedness proportionate to the participation of the city, code city, or county; (c) the city, code city, or county shall be severally liable for their own acts and shall not be assessed for the obligations of other owners or participants; and (d) the agreement shall be structured so as to not lend the public's credit.
NEW SECTION. Sec. 2. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.
NEW SECTION. Sec. 3. 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.