FINAL BILL REPORT

                  SSB 5127

                          C 396 L 95

                      Synopsis as Enacted

Brief Description:  Changing provisions regarding public facilities districts.

Sponsors:  Senate Committee on Government Operations (originally sponsored by Senators West, Haugen, Morton, Prince, Moyer and McCaslin).

Senate Committee on Government Operations

House Committee on Government Operations

House Committee on Finance

Background:  Public facilities districts are corporate municipal bodies, established by statute as independent taxing authorities.  They may be created in any county with a population of 300,000 or more, and must be located more than 100 miles from any county in which the state has constructed and owns a convention center.  They are authorized to acquire, build, own and operate sports and entertainment facilities.

Public facilities districts may impose excise taxes at a rate of not exceeding 2 percent on the sale or charge for furnishing lodging by a hotel, motel, trailer camp, or tourist court with 40 or more lodging units.  With voter approval, public facilities districts may impose a .1 percent sales and use taxes.  With voter approval, public facilities districts may impose both single year excess property tax levies and multiple year excess levies to retire general obligation bonds issued for capital purposes.

Public facilities districts may issue general obligation bonds.

Summary:  The public facilities districts are given powers and administrative mechanisms similar to those of other special districts.  The board is given authority to promulgate rules for the day-to-day operation of the district, within the guidelines of the statute.  The district is not given condemnation powers.  The district is given the authority to issue revenue bonds and to pay compensation not to exceed $3,000 per year, at the rate of $50 per day for attendance at meetings or conferences.  This compensation does not need to be authorized by board resolution.

A public facilities district may be created in any county.  A public facilities district may be created without the approval of the governing body of the largest city in the county.  The potential size of the governing body and the process by which members are appointed are altered in a county that does not have a city with 40 percent or more of the total county population.  A public facilities district may provide convention facilities.  A public facilities district may not impose its excise tax on the sale or furnishing of lodging if, after imposing this tax, the effective compound rate of state and local excise taxes on such sales or charges is 11.5 percent or more in any jurisdiction within its boundaries.  Earnings on public facilities district moneys that are invested by the county treasurer are handled like earnings on moneys of other local governments that the county treasurer invests.

Votes on Final Passage:

Senate    44 0

House     70 26 (House amended)

Senate    42 1 (Senate concurred)

Effective:  July 23, 1995