AN ACT Relating to
public facilities districts; amending RCW 36.100.010, 36.100.020, 36.100.030,
36.100.040, 36.100.060, and 82.14.048; and adding new sections to chapter
36.100 RCW.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 36.100.010 and 1989
1st ex.s. c 8 s 1 are each amended to read as follows:
(1) A public facilities
district may be created in any county ((with three hundred thousand or more
population that is located more than one hundred miles from any county in which
the state has constructed and owns a convention center. A public facilities
district)) 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 ((and the city council of the largest city
within such county)).
(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.
(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.
Sec. 2. RCW 36.100.020 and 1989
1st ex.s. c 8 s 2 are each amended to read as follows:
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) Two members appointed by
the county legislative authority to serve for four-year staggered terms; (2)
two members appointed by the city council of the largest city in the county
to serve for four-year staggered terms; and (3) 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 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.
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.
((One of the initial
members appointed by the county legislative authority shall have a term of
office of two years and the other initial member appointed by the county
legislative authority shall have a term of four years. One of the initial
members appointed by the city council shall have a term of two years and the
other initial member appointed by the city council shall have a term of four
years.)) 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.
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.
A director may be
removed from office for cause by action of at least two-thirds of the members
of the county legislative authority.
Sec. 3. RCW 36.100.030 and 1989
1st ex.s. c 8 s 3 are each amended to read as follows:
A public facilities
district is authorized to acquire, construct, own, remodel, maintain, equip,
reequip, repair, and operate sports ((and)) 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.
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.
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. ((The taxes that are
provided for in this chapter may only be imposed for such purposes.))
Sec. 4. RCW 36.100.040 and 1989
1st ex.s. c 8 s 4 are each amended to read as follows:
A public facilities
district may impose an 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, except that no such
tax may be levied on any premises having fewer than forty lodging units. However,
if a public facilities district has not imposed such an excise tax prior to
December 31, 1995, the public facilities district may only impose the excise
tax if a ballot proposition authorizing the imposition of the tax has been
approved by a simple majority vote of voters of the public facilities district
voting on the proposition.
The rate of the tax
shall not exceed two percent and the proceeds of the tax shall only be used for
the acquisition, design, ((and)) construction, remodeling,
maintenance, equipping, reequipping, repairing, and operation of ((sports
and entertainment)) its public facilities. This excise tax shall
not be imposed until the district has approved the proposal to acquire, design,
and construct the public facilities.
A public facilities
district may not impose the tax authorized in this section if, after the tax
authorized in this section was imposed, the effective combined rate of state
and local excise taxes, including sales and use taxes and excise taxes on
lodging, imposed on the sale of or charge made for furnishing of lodging in any
jurisdiction in the public facilities district exceeds eleven and one-half
percent.
Sec. 5. RCW 36.100.060 and 1989
1st ex.s. c 8 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 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 ((the sports and entertainment facility)) its
public facilities.
Sec. 6. RCW 82.14.048 and 1991 c
207 s 1 are each amended to read as follows:
The governing board of
a public facilities district under chapter 36.100 RCW may submit an authorizing
proposition to the voters of the district, and if the proposition is approved
by a majority of persons voting, fix and impose a sales and use tax in
accordance with the terms of this chapter.
The tax authorized in
this section shall be in addition to any other taxes authorized by law and
shall be collected from those persons who are taxable by the state under
chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event within
the public facilities district. The rate of 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.
Moneys received from
any tax imposed under this section shall be used for the purpose of providing
funds for the costs associated with the financing, design, acquisition,
construction, equipping, operating, maintaining, remodeling, repairing,
and reequipping of ((sports or entertainment)) its public
facilities ((and contiguous parking)).
NEW SECTION. Sec.
7. The treasurer of the
county in which a public facilities district is located shall be the ex officio
treasurer of the district.
NEW SECTION. Sec.
8. The board of directors of
the public facilities district shall adopt a resolution that may be amended
from time to time that shall establish the basic requirements governing methods
and amounts of reimbursement payable to such district officials and employees
for travel and other business expenses incurred on behalf of the district. The
resolution shall, among other things, establish procedures for approving such
expenses; the form of the travel and expense voucher; and requirements
governing the use of credit cards issued in the name of the district. The
resolution may also establish procedures for payment of per diem to board
members. The state auditor shall, as provided by general law, cooperate with the
public facilities district in establishing adequate procedures for regulating
and auditing the reimbursement of all such expenses.
NEW SECTION. Sec.
9. The board of directors of
the public facilities district may authorize payment of actual and necessary
expenses of officers and employees for lodging, meals, and travel-related costs
incurred in attending meetings or conferences on behalf of the public
facilities district and strictly in the public interest and for public purposes.
Officers and employees may be advanced sufficient sums to cover their
anticipated expenses in accordance with rules adopted by the state auditor,
which shall substantially conform to the procedures provided in RCW 43.03.150
through 43.03.210.
NEW SECTION. Sec.
10. Each member of the board
of directors of the public facilities district may receive compensation of
fifty dollars per day for attending meetings or conferences on behalf of the
district, not to exceed three thousand dollars per year. A director may waive
all or a portion of his or her compensation under this section as to a month or
months during his or her term of office, by a written waiver filed with the
public facilities district. The compensation provided in this section is in
addition to reimbursement for expenses paid to the directors by the public
facilities district.
NEW SECTION. Sec.
11. The board of directors of
the public facilities district may purchase liability insurance with such
limits as the directors may deem reasonable for the purpose of protecting and
holding personally harmless district officers and employees against liability
for personal or bodily injuries and property damage arising from their acts or
omissions while performing or in good faith purporting to perform their
official duties.
NEW SECTION. Sec.
12. Whenever an action,
claim, or proceeding is instituted against a person who is or was an officer or
employee of the public facilities district arising out of the performance of
duties for or employment with the district, the public facilities district may
grant a request by the person that the attorney of the district's choosing be
authorized to defend the claim, suit, or proceeding, and the costs of defense,
attorneys' fees, and obligation for payments arising from the action may be
paid from the district's funds. Costs of defense or judgment or settlement
against the person shall not be paid in a case where the court has found that
the person was not acting in good faith or within the scope of employment with
or duties for the public facilities district.
NEW SECTION. Sec.
13. The board of directors of
the public facilities district shall have authority to authorize the
expenditure of funds for the public purposes of preparing and distributing
information to the general public and promoting, advertising, improving,
developing, operating, and maintaining facilities of the district. Nothing
contained in this section may be construed to authorize preparation and
distribution of information to the general public for the purpose of
influencing the outcome of a district election.
NEW SECTION. Sec.
14. The public facilities
district shall have authority to create and fill positions, fix wages,
salaries, and bonds therefor, pay costs involved in securing or arranging to
secure employees, and establish benefits for employees, including holiday pay,
vacations or vacation pay, retirement benefits, medical, life, accident, or
health disability insurance, as approved by the board. Public facilities
district board members, at their own expense, shall be entitled to medical,
life, accident, or health disability insurance. Insurance for employees and
board members shall not be considered compensation. District coverage for the
board is not to exceed that provided public facilities district employees.
NEW SECTION. Sec.
15. The public facilities
district may secure services by means of an agreement with a service provider.
The public facilities district shall publish notice, establish criteria,
receive and evaluate proposals, and negotiate with respondents under
requirements set forth by district resolution.
NEW SECTION. Sec.
16. In addition to provisions
contained in chapter 39.04 RCW, the public facilities district is authorized to
follow procedures contained in RCW 43.19.1906 and 43.19.1911 for all purchases,
contracts for purchase, and sales.
NEW SECTION. Sec.
17. (1) A public facilities
district may issue revenue bonds to fund revenue generating facilities, or
portions of facilities, which it is authorized to provide or operate. Whenever
revenue bonds are to be issued, the board of directors of the district shall
create or have created a special fund or funds from which, along with any
reserves created pursuant to RCW 39.44.140, the principal and interest on such
revenue bonds shall exclusively be payable. The board may obligate the
district to set aside and pay into the special fund or funds a fixed proportion
or a fixed amount of the revenues from the public improvements, projects, or
facilities, and all related additions, that are funded by the revenue bonds.
This amount or proportion shall be a lien and charge against these revenues,
subject only to operating and maintenance expenses. The board shall have due
regard for the cost of operation and maintenance of the public improvements,
projects, or facilities, or additions, that are funded by the revenue bonds,
and shall not set aside into the special fund or funds a greater amount or
proportion of the revenues that in its judgment will be available over and
above the cost of maintenance and operation and the amount or proportion, if
any, of the revenue so previously pledged. The board may also provide that
revenue bonds payable out of the same source or sources of revenue may later be
issued on a parity with any revenue bonds being issued and sold.
(2) Revenue bonds
issued pursuant to this section shall not be an indebtedness of the district
issuing the bonds, and the interest and principal on the bonds shall only be
payable from the revenues lawfully pledged to meet the principal and interest
requirements and any reserves created pursuant to RCW 39.44.140. The owner or
bearer of a revenue bond or any interest coupon issued pursuant to this section
shall not have any claim against the district arising from the bond or coupon
except for payment from the revenues lawfully pledged to meet the principal and
interest requirements and any reserves created pursuant to RCW 39.44.140. The
substance of the limitations included in this subsection shall be plainly
printed, written, or engraved on each bond issued pursuant to this section.
(3) Revenue bonds with
a maturity in excess of thirty years shall not be issued. The board of
directors of the district shall by resolution determine for each revenue bond
issue the amount, date, form, terms, conditions, denominations, maximum fixed
or variable interest rate or rates, maturity or maturities, redemption rights,
registration privileges, manner of execution, manner of sale, callable
provisions, if any, and covenants including the refunding of existing revenue
bonds. Facsimile signatures may be used on the bonds and any coupons.
Refunding revenue bonds may be issued in the same manner as revenue bonds are
issued.
NEW SECTION. Sec.
18. Sections 7 through 17 of
this act are each added to chapter 36.100 RCW.
NEW SECTION. Sec.
19. 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.
