SENATE BILL REPORT

                  SSB 5127

              As Passed Senate, February 17, 1995

Title:  An act relating to public facilities districts.

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).

Brief History:

Committee Activity:  Government Operations:  1/25/95, 1/31/95 [DPS].

Passed Senate, 2/17/95, 44-0.

SENATE COMMITTEE ON GOVERNMENT OPERATIONS

Majority Report:  That Substitute Senate Bill No. 5127 be substituted therefor, and the substitute bill do pass. 

  Signed by Senators Haugen, Chair; Sheldon, Vice Chair; Drew, Hale, Heavey, McCaslin and Winsley.

Staff:  Diane Smith (786-7410)

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.

Summary of Bill:  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.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  The bill completes the intent of the original statute which authorizes the creation of public facilities districts.  The districts are given necessary operating authority.

Testimony Against:  None.

Testified:  J.D. Ray, Spokane PFD.

House Amendment(s):  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 and process by which members of the governing body 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.