S-3228

AN ACT Relating to acquisition of a professional sports franchise in King county; adding a new chapter to Title 67 RCW; making an appropriation; and declaring an emergency.

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

NEW SECTION. Sec. 1. The legislature finds and declares as the express purpose of this chapter:

(1) Professional sports franchises provide both direct and indirect civic and economic benefits to the people of the state of Washington.

(2) The acquisition of a professional sports franchise in King county will particularly benefit and increase the occupancy of hotels and other lodging facilities in King county.

(3) Imposing a special excise tax on the price of lodging in King county is an appropriate method of paying for a substantial part of the cost of acquiring a professional sports franchise.

NEW SECTION. Sec. 2. (1) The governor shall 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. Members of the board shall be compensated in accordance with RCW 43.03.250 and shall be reimbursed for travel expenses under RCW 43.03.050 and 43.03.060.

(2) The corporation is authorized to enter into a limited partnership as a limited partner for the acquisition of a professional sports franchise in King county. The corporation may accept gifts or grants, request the financing provided in section 3 of this act, and do whatever is necessary or appropriate to carry out these purposes.

(3) To allow the corporation flexibility in its personnel policies, the corporation is exempt from RCW 43.01.040 through 43.01.044, and chapters 41.06, 41.05, 41.04, and 41.40 RCW.

NEW SECTION. Sec. 3. For the purpose of providing funds for the purposes of this chapter, the state finance committee is authorized to issue, upon request of the corporation formed under section 2 of this act, in one or more offerings, general obligation bonds of the state of Washington in the sum of one hundred million dollars, or as much thereof as may be required, to finance this acquisition and all costs incidental thereto, and to reimburse the general fund for expenditures in support of the acquisition. The state finance committee may make such bond covenants as it deems necessary to carry out the purposes of this chapter. No bonds authorized in this section may be offered for sale without prior legislative appropriation.

NEW SECTION. Sec. 4. (1) The proceeds from the sale of the bonds authorized in section 3 of this act, proceeds of the tax imposed under section 9 of this act, and all other moneys received by the corporation from any public or private source which are intended to fund the acquisition of a professional sports franchise in King county, shall be deposited in the state sports franchise account hereby created in the state treasury.

(2) Moneys in the account, including unanticipated revenues under RCW 43.79.270, shall be used exclusively for the following purposes in the following priority:

(a) For reimbursement of the state general fund under section 6 of this act;

(b) After appropriation by statute:

(i) For payment of expenses incurred in the issuance and sale of the bonds issued under section 3 of this act;

(ii) To enter into a limited partnership to acquire a professional sports franchise in King county; and

(iii) For reimbursement of any expenditures from the state general fund in support of the corporation.

NEW SECTION. Sec. 5. The moneys deposited pursuant to section 4 of this act in the state sports franchise account shall be administered by the corporation formed under section 2 of this act, subject to legislative appropriation.

NEW SECTION. Sec. 6. The state general obligation bond retirement fund shall be used for the payment of the principal of and interest on the bonds authorized in section 3 of this act.

The state finance committee shall, on or before June 30th of each year, certify to the state treasurer the amount needed in the ensuing twelve months to meet the bond retirement and interest requirements. Not less than thirty days prior to the date on which any interest or principal and interest payment is due, the state treasurer shall withdraw from any general state revenues received in the state treasury and deposit in the state general obligation bond retirement fund an amount equal to the amount certified by the state finance committee to be due on that payment date. On each date on which any interest or principal and interest is due, the state treasurer shall cause an identical amount to be paid out of the state sports franchise account from the proceeds of the special excise tax imposed under section 9 of this act, income from the partnership, and bond proceeds and earnings on the investment of bond proceeds, for deposit in the general fund of the state treasury. Any deficiency in such transfer shall be made up as soon as special excise taxes are available for transfer and shall constitute a continuing obligation of the state sports franchise account until all deficiencies are fully paid.

Bonds issued under section 3 of this act shall state that they are a general obligation of the state of Washington, shall pledge the full faith and credit of the state to the payment of the principal thereof and the interest thereon, and shall contain an unconditional promise to pay the principal and interest as the same shall become due.

The owner and holder of each of the bonds or the trustee for the owner and holder of any of the bonds may by mandamus or other appropriate proceeding require the transfer and payment of funds as directed in this section.

NEW SECTION. Sec. 7. The legislature may increase the rate of tax imposed in section 9 of this act or may provide additional means for raising moneys for the payment of the principal of and interest on the bonds authorized in section 3 of this act, and section 6 of this act shall not be deemed to provide an exclusive method for the payment.

NEW SECTION. Sec. 8. The bonds authorized in section 3 of this act shall be a legal investment for all state funds or funds under state control and for all funds of any other public body.

NEW SECTION. Sec. 9. (1) Commencing on the first day of the next month that is at least thirty days after the sale of bonds authorized in section 3 of this act, there is imposed, and the department of revenue shall collect, in King county, a special excise tax on the sale of or charge made for the furnishing of lodging by a hotel, rooming house, tourist court, motel, or trailer camp, and the granting of any similar license to use real property, as distinguished from the renting or leasing of real property. It shall be presumed that the occupancy of real property for a continuous period of one month or more constitutes rental or lease of real property and not a mere license to use or enjoy the same. The legislature on behalf of the state pledges to maintain and continue this tax until the bonds authorized by this chapter are fully redeemed, both principal and interest.

(2) If the full amount of bonds authorized in section 3 of this act are issued, the rate of tax shall equal two and four-tenths percent. This rate shall be reduced by a rate of one-tenth of one percent on January 1st of each year the tax is in effect but not below one-tenth of one percent. No tax may be imposed after the bonds are retired.

If less than the full amount of bonds are issued, the rate of tax shall be reduced proportionately by the department of revenue. If some of the bonds are issued or retired at different times, the rate of tax shall be adjusted proportionately by the department of revenue effective on the first day of the next month that is at least thirty days after the sale or retirement.

(3) The proceeds of the special excise tax shall be deposited in the state sports franchise account.

(4) Chapter 82.32 RCW applies to the tax imposed under this section.

NEW SECTION. Sec. 10. (1) The tax levied by section 9 of this act shall not apply to emergency lodging provided for homeless persons for a period of less than thirty consecutive days under a shelter voucher program administered by an eligible organization.

(2) For the purposes of this exemption, an eligible organization includes only cities, towns, and counties, or their respective agencies, and groups providing emergency food and shelter services.

NEW SECTION. Sec. 11. 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. 12. The sum of one hundred million dollars, or as much thereof as may be necessary, is appropriated from the state sports franchise account fund to the corporation formed under section 2 of this act for the biennium ending June 30, 1993, to carry out the purposes of this act.

NEW SECTION. Sec. 13. 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.

NEW SECTION. Sec. 14. Sections 1 through 11 of this act shall constitute a new chapter in Title 67 RCW.