AN ACT
Relating to financing of public stadiums used by professional sports teams;
amending RCW 36.100.010, 36.100.020, 36.100.030, 36.100.060, 35.21.280,
36.38.010, and 67.28.180; adding new sections to chapter 36.100 RCW; adding a
new section to chapter 82.14 RCW; providing an effective date; and declaring an
emergency.
BE IT ENACTED BY THE LEGISLATURE
OF THE STATE OF WASHINGTON:
Sec.
1. RCW
36.100.010 and 1995 c ... (Substitute Senate Bill No. 5127) s 1 are each
amended to read as follows:
(1) A
public facilities district may be created in any county and shall be
coextensive with the boundaries of the county.
(2) A
public facilities district shall be created upon adoption of a resolution
providing for the creation of such a district by the county legislative
authority in which the proposed district is located.
(3) A
public facilities district is a municipal corporation, an independent taxing
"authority" within the meaning of Article VII, section 1 of the state
Constitution, and a "taxing district" within the meaning of Article
VII, section 2 of the state Constitution.
(4) No
taxes authorized under this chapter may be assessed or levied unless a majority
of the voters of the public facilities district has ((validated the creation
of the public facilities district at a general or special election. A single
ballot proposition may both authorize the creation of a public facilities
district and the imposition of the sales and use tax under RCW 82.14.048 or
both the creation of a public facilities district and the imposition of the
excise tax under RCW 36.100.040)) approved such tax at a general or
special election. A single ballot proposition may both validate the imposition
of the sales and use tax under RCW 82.14.048 and the excise tax under RCW
36.100.040.
(5) A
public facilities district shall constitute a body corporate and shall possess
all the usual powers of a corporation for public purposes as well as all other
powers that may now or hereafter be specifically conferred by statute,
including, but not limited to, the authority to hire employees, staff, and
services, to enter into contracts, and to sue and be sued.
(6)
The county legislative authority may transfer property to the public facilities
district as part of the process of creating the public facilities district
under this chapter.
Sec.
2. RCW
36.100.020 and 1995 c ... (Substitute Senate Bill No. 5127) s 2 are each
amended to read as follows:
(1)
A public facilities district shall be governed by a board of directors
consisting of five or seven members as provided in this section. If the
largest city in the county has a population that is at least forty percent of
the total county population, the board of directors of the public facilities
district shall consist of five members selected as follows: (((1))) (a)
Two members appointed by the county legislative authority to serve for four-year
staggered terms; (((2))) (b) two members appointed by the city
council of the largest city in the county to serve for four-year staggered
terms; and (((3))) (c) one person to serve for a four-year term
who is selected by the other directors. If the largest city in the county has
a population of less than forty percent of the total county population, the
county legislative authority shall establish in the resolution creating the
public facilities district whether the board of directors of the public facilities
district ((have)) has either five or seven members, and the
county legislative authority shall appoint the members of the board of
directors to reflect the interests of cities and towns in the county, as well
as the unincorporated area of the county. However, if the largest city in
the county has a population of less than forty percent of the total county
population, and the county operates under a county charter, which provides for
an elected county executive, the members shall be appointed by the county
executive subject to confirmation by the county legislative authority.
(2)
At least one member on the board of directors shall be representative of the
lodging industry in the public facilities district before the public facilities
district imposes the excise tax under RCW 36.100.040.
(3)
Members of the board of directors shall serve four-year terms of office, except
that two of the initial five board members or three of the initial seven board
members shall serve two-year terms of office.
(4)
A vacancy shall be filled in the same manner as the original appointment was
made and the person appointed to fill a vacancy shall serve for the remainder
of the unexpired term of the office for the position to which he or she was
appointed.
(5)
A director may be removed from office ((for cause)) by action of at
least two-thirds of the members of the ((county legislative)) authority which
made the appointment.
Sec.
3. RCW
36.100.030 and 1995 c ... (Substitute Senate Bill No. 5127) s 3 are each
amended to read as follows:
(1)
A public facilities district is authorized to acquire, construct, own, remodel,
maintain, equip, reequip, repair, and operate sports facilities, entertainment
facilities, or convention facilities, or any combination of such facilities,
together with contiguous parking facilities. The taxes that are provided for
in this chapter may only be imposed for these purposes.
(2)
A public facilities district may enter into agreements under chapter 39.34 RCW
for the joint provision and operation of such facilities and may enter into
contracts under chapter 39.34 RCW where any party to the contract provides and
operates such facilities for the other party or parties to the contract.
(3)
Notwithstanding the establishment of a career, civil, or merit service system,
a public facility district may contract with a public or private entity for the
operation or management of its public facilities.
(4)
A public facilities district is authorized to use the supplemental alternative
public works contracting procedures set forth in chapter 39.10 RCW in
connection with the design, construction, reconstruction, remodel, or
alteration of any of its public facilities.
(5)
A public facilities district may impose charges and fees for the use of its
facilities, and may accept and expend or use gifts, grants, and donations.
Sec.
4. RCW
36.100.060 and 1995 c ... (Substitute Senate Bill No. 5127) s 5 are each
amended to read as follows:
(1) To
carry out the purpose of this chapter, a public facilities district may issue
general obligation bonds, not to exceed an amount, together with any
outstanding nonvoter approved general obligation indebtedness, equal to ((three-eighths))
one-half of one percent of the value of taxable property within the
district, as the term "value of taxable property" is defined in RCW
39.36.015. A facilities district additionally may issue general obligation
bonds for capital purposes only, together with any outstanding general
obligation indebtedness, not to exceed an amount equal to one and one-fourth
percent of the value of the taxable property within the district, as the term
"value of taxable property" is defined in RCW 39.36.015, when
authorized by the voters of the public facilities district pursuant to Article
VIII, section 6 of the state Constitution, and to provide for the retirement
thereof by excess property tax levies as provided in this chapter.
(2)
General obligation bonds may be issued with a maturity of up to thirty years,
and shall be issued and sold in accordance with the provisions of chapter 39.46
RCW.
(3)
The general obligation bonds may be payable from the operating revenues of the
public facilities district in addition to the tax receipts of the district.
(4)
The excise tax imposed pursuant to RCW 36.100.040 shall terminate upon final
payment of all bonded indebtedness for its public facilities.
NEW
SECTION. Sec. 5. No direct
or collateral attack on any public facilities district purported to be
authorized or created in conformance with this chapter may be commenced more
than thirty days after creation by the county legislative authority.
NEW
SECTION. Sec. 6. (1) The
governing board of a public facilities district may apply for deferral of taxes
on the construction of buildings, site preparation, and the acquisition of
related machinery and equipment for a new public facility. Application shall
be made to the department of revenue in a form and manner prescribed by the
department of revenue. The application shall contain information regarding the
location of the public facility, estimated or actual costs, time schedules for
completion and operation, and other information required by the department of
revenue. The department of revenue shall approve the application within sixty
days if it meets the requirements of this section.
(2)
The department of revenue shall issue a sales and use tax deferral certificate
for state and local sales and use taxes due under chapters 82.08, 82.12, and
82.14 RCW on the public facility. The use of the certificate shall be governed
by rules established by the department of revenue.
(3)
The public facilities district shall begin paying the deferred taxes in the
fifth year after the date certified by the department of revenue as the date on
which the public facility is operationally complete. The first payment is due
on December 31st of the fifth calendar year after such certified date, with
subsequent annual payments due on December 31st of the following nine years.
Each payment shall equal ten percent of the deferred tax.
(4)
The department of revenue may authorize an accelerated repayment schedule upon
request of the public facilities district.
(5)
Interest shall not be charged on any taxes deferred under this section for the
period of deferral, although all other penalties and interest applicable to
delinquent excise taxes may be assessed and imposed for delinquent payments
under this section. The debt for deferred taxes is not extinguished by
insolvency or other failure of the public facilities district.
(6)
Applications and any other information received by the department of revenue
under this section are not confidential and are subject to disclosure. Chapter
82.32 RCW applies to the administration of this section.
(7) As
used in this section, "public facility" means a baseball stadium with
a retractable roof or canopy and natural turf.
NEW
SECTION. Sec. 7. A new
section is added to chapter 82.14 RCW to read as follows:
(1)
The legislative authority of a county with a population of one million or more
operating under a county charter may impose a special stadium sales and use tax
by resolution adopted on or before December 31, 1995, for collection following
its approval by a majority of the voters in the county at a general or special
election.
(2)
The rate of the tax shall equal one-tenth of one percent of the selling price
in the case of a sales tax, or value of the article used in the case of a use
tax. The tax imposed under this section shall not be credited against any
other tax imposed upon the same taxable event.
(3)
The revenue from the tax imposed under this section shall be used for the
purpose of principal and interest payments on bonds issued by a public
facilities district, created within the county under chapter 36.100 RCW, to
acquire, construct, own, remodel, maintain, equip, reequip, repair, and operate
a baseball stadium with a retractable roof or canopy and natural turf. If the
revenue from the tax imposed under this section exceeds the amount needed for
such principal and interest payments in any year, the excess shall be used
solely for either or both: (a) Early retirement of the bonds issued for the
baseball stadium; or (b) retirement of bonds issued for expanding, remodelling,
repairing, or reequipping of a multipurpose stadium that has a seating capacity
over forty-five thousand.
(4) The
tax authorized under this section may be collected only after the county
executive has certified to the department of revenue that a professional major
league baseball team has made a binding and legally enforceable contractual
commitment to:
(a)
Play at least ninety percent of its home games in the stadium for a period of
time not shorter than the term of the bonds issued to finance the initial
construction of the stadium;
(b)
Contribute principal of forty-five million dollars toward the bonded cost of
construction of the stadium, which contribution shall be made during a term not
to exceed the term of the bonds issued to finance the initial construction of
the stadium. If all or part of the contribution is made after the date of
issuance of the bonds, the team shall contribute an additional amount equal to
the accruing interest on the deferred portion of the contribution, calculated
at the interest rate on the bonds maturing in the year in which the deferred
contribution is made; and
(c)
Share a portion of the profits generated by the baseball team from the
operation of the professional franchise for a period of time equal to the term
of the bonds issued to finance the initial construction of the stadium, after
offsetting any losses incurred by the baseball team after the effective date of
this act. Such profits and the portion to be shared shall be defined by
agreement between the public facilities district and the baseball team. The
shared profits shall be used to retire the bonds issued to finance the initial
construction of the stadium. If the bonds are retired before the expiration of
their term, the shared profits shall be paid to the public facilities district.
(5)
The tax imposed under this section shall expire when the bonds issued for the
construction of the new public facilities are retired, but not later than
twenty years after the tax is first collected.
Sec.
8. RCW
35.21.280 and 1965 c 7 s 35.21.280 are each amended to read as follows:
Every
city and town may levy and fix a tax of not more than one cent on twenty cents
or fraction thereof to be paid by the person who pays an admission charge to
any place: PROVIDED, No city or town shall impose such tax on persons paying
an admission to any activity of any elementary or secondary school. This
includes a tax on persons who are admitted free of charge or at reduced rates
to any place for which other persons pay a charge or a regular higher charge
for the same privileges or accommodations. A city that is located in a
county with a population of one million or more may not levy a tax on events in
stadia constructed on or after January 1, 1995, that are owned by county
government or a public facilities district under chapter 36.100 RCW and that
have seating capacities over forty thousand. The city or town may require
anyone who receives payment for an admission charge to collect and remit the
tax to the city or town.
The
term "admission charge" includes:
(1) A
charge made for season tickets or subscriptions;
(2) A
cover charge, or a charge made for use of seats and tables reserved or
otherwise, and other similar accommodations;
(3) A
charge made for food and refreshment in any place where free entertainment,
recreation or amusement is provided;
(4) A
charge made for rental or use of equipment or facilities for purposes of
recreation or amusement; if the rental of the equipment or facilities is
necessary to the enjoyment of a privilege for which a general admission is
charged, the combined charges shall be considered as the admission charge;
(5)
Automobile parking charges if the amount of the charge is determined according
to the number of passengers in the automobile.
Sec.
9. RCW
36.38.010 and 1963 c 4 s 36.38.010 are each amended to read as follows:
(1)
Any county may by ordinance enacted by its ((board of)) county ((commissioners))
legislative authority, levy and fix a tax of not more than one cent on
twenty cents or fraction thereof to be paid for county purposes by persons who
pay an admission charge to any place, including a tax on persons who are
admitted free of charge or at reduced rates to any place for which other
persons pay a charge or a regular higher charge for the same or similar
privileges or accommodations; and require that one who receives any admission
charge to any place shall collect and remit the tax to the county treasurer of
the county: PROVIDED, No county shall impose such tax on persons paying an
admission to any activity of any elementary or secondary school.
(2)
As used in this chapter, the term "admission charge" includes a
charge made for season tickets or subscriptions, a cover charge, or a charge
made for use of seats and tables, reserved or otherwise, and other similar
accommodations; a charge made for food and refreshments in any place where any
free entertainment, recreation, or amusement is provided; a charge made for rental
or use of equipment or facilities for purpose of recreation or amusement, and
where the rental of the equipment or facilities is necessary to the enjoyment
of a privilege for which a general admission is charged, the combined charges
shall be considered as the admission charge. It shall also include any
automobile parking charge where the amount of such charge is determined
according to the number of passengers in any automobile.
(3)
The tax herein authorized shall not be exclusive and shall not prevent any city
or town within the taxing county, when authorized by law, from imposing within
its corporate limits a tax of the same or similar kind: PROVIDED, That
whenever the same or similar kind of tax is imposed by any such city or town,
no such tax shall be levied within the corporate limits of such city or town by
the ((board of)) county ((commissioners)), except that the
legislative authority of a county with a population of one million or more may
exclusively levy a tax on events in stadiums constructed on or after January 1,
1995, that are owned by county government or a public facilities district under
chapter 36.100 RCW and that have seating capacities over forty thousand at the
rate of not more than one cent on twenty cents or fraction thereof.
(4)
By contract, the county shall obligate itself to provide the revenue from the
tax authorized by this section on events in stadia owned, managed, or operated
by a public facilities district, having seating capacities over forty thousand,
and constructed on or after January 1, 1995, to the public facilities district.
Sec.
10. RCW
67.28.180 and 1995 c ... (Engrossed Substitute Senate Bill No. 5943) s 8 are
each amended to read as follows:
(1)
Subject to the conditions set forth in subsections (2) and (3) of this section,
the legislative body of any county or any city, is authorized to levy and
collect a special excise tax of not to exceed two percent on the sale of or
charge made for the furnishing of lodging by a hotel, rooming house, tourist
court, motel, trailer camp, and the granting of any similar license to use real
property, as distinguished from the renting or leasing of real property:
PROVIDED, That it shall be presumed that the occupancy of real property for a
continuous period of one month or more constitutes a rental or lease of real
property and not a mere license to use or to enjoy the same.
(2)
Any levy authorized by this section shall be subject to the following:
(a)
Any county ordinance or resolution adopted pursuant to this section shall
contain, in addition to all other provisions required to conform to this
chapter, a provision allowing a credit against the county tax for the full
amount of any city tax imposed pursuant to this section upon the same taxable
event.
(b) In
the event that any county has levied the tax authorized by this section and
has, prior to June 26, 1975, either pledged the tax revenues for payment of
principal and interest on city revenue or general obligation bonds authorized
and issued pursuant to RCW 67.28.150 through 67.28.160 or has authorized and
issued revenue or general obligation bonds pursuant to the provisions of RCW
67.28.150 through 67.28.160, such county shall be exempt from the provisions of
(a) of this subsection, to the extent that the tax revenues are pledged for
payment of principal and interest on bonds issued at any time pursuant to the
provisions of RCW 67.28.150 through 67.28.160: PROVIDED, That so much of such
pledged tax revenues, together with any investment earnings thereon, not
immediately necessary for actual payment of principal and interest on such
bonds may be used: (i) In any county with a population of one million or more,
for repayment either of limited tax levy general obligation bonds or of any
county fund or account from which a loan was made, the proceeds from the bonds
or loan being used to pay for constructing, installing, improving, and
equipping stadium capital improvement projects, and to pay for any engineering,
planning, financial, legal and professional services incident to the
development of such stadium capital improvement projects, regardless of the
date the debt for such capital improvement projects was or may be incurred; or
(ii) in other counties, for county-owned facilities for agricultural
promotion. A county is exempt under this subsection in respect to city revenue
or general obligation bonds issued after April 1, 1991, only if such bonds
mature before January 1, 2013.
As
used in this subsection (2)(b), "capital improvement projects" may
include, but not be limited to a stadium restaurant facility, restroom
facilities, artificial turf system, seating facilities, parking facilities and
scoreboard and information system adjacent to or within a county owned stadium,
together with equipment, utilities, accessories and appurtenances necessary
thereto. The stadium restaurant authorized by this subsection (2)(b) shall be
operated by a private concessionaire under a contract with the county.
(c) No
city within a county exempt under subsection (2)(b) of this section may levy
the tax authorized by this section so long as said county is so exempt:
PROVIDED, That in the event that any city in such county has levied the tax
authorized by this section and has, prior to June 26, 1975, authorized and
issued revenue or general obligation bonds pursuant to the provisions of RCW
67.28.150 through 67.28.160, such city may levy the tax so long as the tax
revenues are pledged for payment of principal and interest on bonds issued at
any time pursuant to the provisions of RCW 67.28.150 through 67.28.160.
(3)
Any levy authorized by this section by a county that has levied the tax
authorized by this section and has, prior to June 26, 1975, either pledged the
tax revenues for payment of principal and interest on city revenue or general
obligation bonds authorized and issued pursuant to RCW 67.28.150 through
67.28.160 or has authorized and issued revenue or general obligation bonds
pursuant to the provisions of RCW 67.28.150 through 67.28.160 shall be subject
to the following:
(a)
Taxes collected under this section in any calendar year in excess of five
million three hundred thousand dollars shall only be used as follows:
(i)
Seventy-five percent from January 1, 1992, through December 31, 2000, and
seventy percent from January 1, 2001, through December 31, 2012, for art
museums, cultural museums, heritage museums, the arts, and the performing
arts. Moneys spent under this subsection (3)(a)(i) shall be used for the purposes
of this subsection (3)(a)(i) in all parts of the county.
(ii)
Twenty-five percent from January 1, 1992, through December 31, 2000, and thirty
percent from January 1, 2001, through December 31, 2012, for the following
purposes and in a manner reflecting the following order of priority: Stadium
capital improvements, as defined in subsection (2)(b) of this section;
acquisition of open space lands; youth sports activities; and tourism
promotion.
(b) At
least seventy percent of moneys spent under (a)(i) of this subsection for the
period January 1, 1992, through December 31, 2000, shall be used only for the
purchase, design, construction, and remodeling of performing arts, visual arts,
heritage, and cultural facilities, and for the purchase of fixed assets that
will benefit art, heritage, and cultural organizations. For purposes of this
subsection, fixed assets are tangible objects such as machinery and other
equipment intended to be held or used for ten years or more. Moneys received
under this subsection (3)(b) may be used for payment of principal and interest
on bonds issued for capital projects. Qualifying organizations receiving
moneys under this subsection (3)(b) must be financially stable and have at
least the following:
(i) A
legally constituted and working board of directors;
(ii) A
record of artistic, heritage, or cultural accomplishments;
(iii)
Been in existence and operating for at least two years;
(iv)
Demonstrated ability to maintain net current liabilities at less than thirty
percent of general operating expenses;
(v)
Demonstrated ability to sustain operational capacity subsequent to completion
of projects or purchase of machinery and equipment; and
(vi)
Evidence that there has been independent financial review of the organization.
(c) At
least forty percent of the revenues distributed pursuant to (a)(i) of this
subsection for the period January 1, 2001, through December 31, 2012, shall be
deposited in an account and shall be used to establish an endowment. Principal
in the account shall remain permanent and irreducible. The earnings from
investments of balances in the account may only be used for the purposes of
(a)(i) of this subsection.
(d)
School districts and schools shall not receive revenues distributed pursuant to
(a)(i) of this subsection.
(e)
Moneys distributed to art museums, cultural museums, heritage museums, the
arts, and the performing arts, and moneys distributed for tourism promotion
shall be in addition to and may not be used to replace or supplant any other
funding by the legislative body of the county.
(f) As
used in this section, "tourism promotion" includes activities
intended to attract visitors for overnight stays, arts, heritage, and cultural
events, and recreational, professional, and amateur sports events. Moneys
allocated to tourism promotion in a class AA county shall be allocated to
nonprofit organizations formed for the express purpose of tourism promotion in
the county. Such organizations shall use moneys from the taxes to promote
events in all parts of the class AA county.
(g) No
taxes collected under this section may be used for the operation or maintenance
of a public stadium that is financed directly or indirectly by bonds to which
the tax is pledged. Expenditures for operation or maintenance include all
expenditures other than expenditures that directly result in new fixed assets
or that directly increase the capacity, life span, or operating economy of
existing fixed assets.
(h) No
ad valorem property taxes may be used for debt service on bonds issued for a
public stadium that is financed by bonds to which the tax is pledged, unless
the taxes collected under this section are or are projected to be insufficient
to meet debt service requirements on such bonds.
(i) If
a substantial part of the operation and management of a public stadium that
is financed directly or indirectly by bonds to which the tax is pledged is
performed by a nonpublic entity or if a public stadium is sold that is
financed directly or indirectly by bonds to which the tax is pledged, any bonds
to which the tax is pledged shall be retired. This subsection (3)(i) does
not apply in respect to a public stadium transferred to, owned by, or
constructed by a public facilities district under chapter 36.100 RCW.
(j)
The county shall not lease a public stadium that is financed directly or
indirectly by bonds to which the tax is pledged to, or authorize the use of the
public stadium by, a professional major league sports franchise unless the
sports franchise gives the right of first refusal to purchase the sports
franchise, upon its sale, to local government. This subsection (3)(j) does not
apply to contracts in existence on April 1, 1986.
If a
court of competent jurisdiction declares any provision of this subsection (3)
invalid, then that invalid provision shall be null and void and the remainder
of this section is not affected.
NEW
SECTION. Sec. 11. Sections
5 and 6 of this act are each added to chapter 36.100 RCW.
NEW
SECTION. Sec. 12. 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. 13. (1)
Sections 1 through 9 and 11 of this act are 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 July 1,
1995.
(2)
Sections 10 and 12 of this act are 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.
