BP BHEAD INT H [atlas:bill]

AN ACT Relating to community revitalization financing; amending RCW 84.52.043, 84.52.065, 84.52.067, 36.33.220, 36.79.140, 36.82.040, 46.68.124, 82.03.130, 35.87A.010, 82.14.050, and 35.80.030; adding a new section to chapter 82.14 RCW; adding a new section to chapter 27.12 RCW; adding a new section to chapter 35.61 RCW; adding a new section to chapter 36.32 RCW; adding a new section to chapter 36.68 RCW; adding a new section to chapter 36.69 RCW; adding a new section to chapter 36.75 RCW; adding a new section to chapter 52.12 RCW; adding a new section to chapter 53.08 RCW; adding a new section to chapter 54.16 RCW; adding a new section to chapter 67.38 RCW; adding a new section to chapter 68.52 RCW; adding a new section to chapter 70.44 RCW; adding a new section to chapter 86.15 RCW; adding a new section to chapter 84.55 RCW; adding a new section to chapter 35.80 RCW; adding a new chapter to Title 82 RCW; adding a new chapter to Title 39 RCW; creating a new section; and providing an expiration date.

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

NEW SECTION. Sec. 1. (1) It is declared to be the public policy of the state of Washington to promote and facilitate the orderly development and economic stability of its communities. The provision of adequate government services and the creation or retention of employment opportunities for all citizens depends upon the economic growth and strength of the tax base.

(2) In many areas of the state the lack of necessary infrastructure, deteriorated buildings, and vacant brownfield infill sites act as an impediment to economic growth.

(3) The construction of necessary public improvements in accordance with local economic development plans will encourage investment in job-producing private development and will expand the public tax base.

NEW SECTION. Sec. 2. It is the purpose of this chapter to provide financial resources for a limited time to assist local governments in the financing of public improvements which are needed to encourage private development of selected areas; to prevent or arrest the decay of selected areas due to the inability of existing financial methods to provide needed public improvements; and to encourage private investment designed to promote and facilitate the orderly redevelopment of selected areas. It is the further purpose of this chapter to strengthen existing law to remedy problems arising from substandard and deteriorating buildings.

PART I‑-COMMUNITY REVITALIZATION FINANCING

NEW SECTION. Sec. 3. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

(1) "Apportionment district" means the geographic area from which taxes are to be appropriated to finance a community revitalization project.

(2) "Taxes" means either excise taxes or property taxes.

(3) "Excise taxes" means:

(a) Retail sales tax levied under chapter 82.08 RCW;

(b) Use tax levied under chapter 82.12 RCW; or

"Excise taxes do not include sales and use taxes levied under RCW 82.14.340 and 82.14.350.

(4) "Property taxes" means regular property taxes as defined in RCW 84.04.140, including property taxes imposed by a port district or public utility district.

(5) "Local government" means any city or town located in a county with population densities greater than one hundred and one persons per square mile as determined by the office financial management and published each year by the department of revenue for the period July 1st to June 30th.

(6) "Ordinance" means any appropriate method of taking legislative action by a local government.

(7) "Project agreement" means an agreement between an owner and a municipality authorized under this chapter.

(8) "Sponsor" means a local government initiating and undertaking a community revitalization project.

(9) "Tax allocation revenues" means those tax revenues allocated to a sponsor under this chapter.

(10) "Taxing district" means a governmental entity that levies a tax that is collected within a proposed or approved apportionment district.

(11) "Community revitalization project" means:

(a) Infrastructure improvements within the apportionment district that include, but are not limited to:

(i) Street and road construction and maintenance;

(ii) Water and sewer system construction and improvements;

(iii) Sidewalks and streetlights;

(iv) Parking, terminal, and dock facilities;

(v) Public transportation facilities; and

(vi) Park facilities and recreational areas;

(b) Health and safety improvements authorized to be publicly financed under chapter 35.80 or 35.81 RCW;

(c) Publicly owned or leased facilities within the jurisdiction of a local government which the sponsor has authority to provide; and

(d) Expenditure for any of the following purposes:

(i) Providing environmental analysis, professional management, planning, and promotion within the apportionment district, including the management and promotion of retail trade activities in the apportionment district;

(ii) Providing maintenance and security for common or public areas in the apportionment district; or

(iii) Historic preservation activities authorized under RCW 35.21.395.

(12) "Community revitalization project costs" means: The costs of land use planning and associated environmental analysis, project design and planning, acquisition, site preparation, construction, reconstruction, rehabilitation, improvement, operation, and installation of the community revitalization project; the costs of relocation, maintenance, and operation of property pending construction of the community revitalization project; the costs of financing, including interest during construction, legal and other professional services, taxes, and insurance; the costs of apportioning the taxes and complying with this chapter and other applicable law; and the administrative costs reasonably necessary and related to these costs.

(13) "Community revitalization project ordinance" means the ordinance passed under section 6 of this act.

NEW SECTION. Sec. 4. The use of tax revenues to finance community revitalization projects is subject to the following limitations:

(1) Regardless of the total number of community revitalization projects approved by a local government, the aggregate total of revenue available from the state for apportionment as the state's contribution to an individual local government must not exceed five million dollars annually. All revenue in excess of five million dollars in any given year must be distributed to the appropriate taxing district as though an apportionment district had not been created;

(2) Regardless of the number of community revitalization projects approved by local governments, the aggregate total of revenue available from the state for apportionment as the state's contribution is annually limited to two-tenths of one percent of the state general fund annual budget;

(3) An apportionment district may not be established that includes a geographic area included within a previously established apportionment district that has outstanding bonds payable in whole or in part from tax revenues under this chapter, or section 13 of this act, or chapter 39.-- RCW (sections 14 through 24 of this act); and

(4) Only one of the following taxes may be appropriated under this chapter:

(a) The local retail sales and use tax offset imposed under section 13 of this act; or

(b) The incremental increase in excise taxes in an apportionment district approved under this chapter; or

(c) The incremental increase in property taxes in an apportionment district approved under chapter 39.-- RCW (sections 14 through 24 of this act).

NEW SECTION. Sec. 5. (1)(a) A community revitalization project may be undertaken and coordinated with other programs or efforts undertaken by the sponsor or others and may be funded in whole or in part from sources other than those provided by this chapter.

(b) The sponsor shall assume all risk if sources authorized by this chapter are not adequate to fund the community revitalization project.

(2) A sponsor may contract with a nonprofit business association operating within the boundaries of the apportionment district or a parking and business improvement area, created under chapter 35.87A RCW, to administer the community revitalization project. The administration of the community revitalization project must comply with all applicable provisions of federal, state, or local law.

NEW SECTION. Sec. 6. In order to establish an apportionment district and secure an allocation of excise taxes to finance a community revitalization project:

(1) A sponsor shall propose by ordinance a plan for the community revitalization project that includes a description of the contemplated community revitalization project, the estimated cost of the community revitalization project, the boundaries of the apportionment district, the estimated period during which tax revenue apportionment is contemplated, and ways in which the sponsor plans to use tax allocation revenues to finance the community revitalization project.

(2)(a) At least sixty days in advance of a public hearing at which the ordinance creating the apportionment district is first considered, the local government shall deliver notice of the hearing and the information required in subsection (1) of this section to the department of community, trade, and economic development and the department of revenue. The department of revenue shall review the information and determine whether there is sufficient revenue under the revenue apportionment cap in section 4 of this act to accommodate the proposed community revitalization project.

(b) No tax revenue generated from an apportionment district created under this chapter, section 13 of this act, or chapter 39.-- RCW (sections 14 through 24 of this act) may be used to finance a community revitalization project until the department of community, trade, and economic development, or a successor department, has reviewed and approved a feasibility study paid for and submitted to the department by the sponsor. The department's review process shall include the following criteria:

(i) The community revitalization project meets the requirements of this chapter or chapter 39.-- RCW (sections 14 through 24 of this act); and

(ii) The feasibility study demonstrates that:

(A) There is a reasonable likelihood that the present value return to the various taxing districts is in excess of forgone tax revenue as a result of the community revitalization project, using a discounted rate equal to the then current state borrowing rate;

(B) The community revitalization project is not feasible without the tax revenue generated from the apportionment district;

(C) The expected tax revenue generated from the apportionment district is likely to be sufficient to finance that portion of the public sources necessary to finance the community revitalization project;

(D) The community revitalization project will reasonably be expected to cause private investment within the apportionment district that probably would not have occurred without financing of the community revitalization project;

(E) The community revitalization project will result in a net increase in employment within the apportionment district; and

(F) There is sufficient management capacity and expertise of the organization responsible for the management of the community revitalization project; and

(iii) Other factors the department deems necessary to safeguard the state's contribution of tax revenue into the community revitalization project.

(3) The department of revenue and the department of community, trade, and economic development shall notify the sponsoring local government, and either the county legislative authority or, in a charter county, the county executive, of the results of the evaluation of the project at least fifteen days in advance of the public hearing required in subsection (1) of this section.

(4) If there are more projects proposed than apportioned revenue is available in a given year under the limit in section 4 of this act, the department of community, trade, and economic development shall establish rules to determine how the available revenue will be allocated among qualified projects.

(5) At the time and place fixed for the hearing under subsection (2) of this section, and at such times the hearing may be adjourned, a sponsor shall receive and consider all statements and materials as might be submitted, and objections and letters filed before and within ten days after the hearing. Any time during the process leading to the establishment of the apportionment district, the county legislative authority may notify the sponsor that it does not wish to participate in the district, and upon such notification all taxes due the county from the apportionment district shall remain the county's and may not be used for the community revitalization project without separate county approval.

(6) Within one hundred twenty days after completion of the public hearing, a sponsor shall pass an ordinance establishing the apportionment district and authorizing the proposed community revitalization project, including any modifications that in the sponsor's opinion the hearing indicated should be made, that includes the boundaries of the apportionment district, a description of the community revitalization project, the estimated cost of the community revitalization project, the method used to finance the state's portion of the community revitalization project under section 4 of this act, the portion of the estimated cost of the community revitalization project to be paid from tax allocation revenues, the estimated time during which the taxes are to be apportioned, the date when the apportionment of taxes is to commence, and a finding that the community revitalization project meets the conditions in section 4 of this act and this section.

NEW SECTION. Sec. 7. (1) Except as provided in subsection (5) of this section, upon the date established in the community revitalization project ordinance, but not sooner than the first day of the calendar year following the passage of the ordinance, the department shall allocate and pay to the sponsor, or the sponsor's designated agent, until all community revitalization project costs to be paid from the tax allocation revenues have been paid, the following amounts:

(a) That portion of the tax levied in each year under chapter 82.08 or 82.12 RCW upon any retail sale or any use of an article of tangible personal property within an apportionment district that is in excess of the tax imposed under chapter 82.08 or 82.12 RCW on sales or uses within the apportionment district in the year preceding the formation of the apportionment district;

(b) That portion of the tax levied in each year under RCW 82.14.030 upon any retail sale or any use of an article of tangible personal property within an apportionment district that is in excess of the tax imposed under RCW 82.14.030 on sales or uses within the apportionment district in the year preceding the formation of the apportionment district, less any amounts that the department is entitled to retain as provided in RCW 82.14.050 for administration and collection expenses incurred by the department.

(2) The date upon which the apportionment district was established is considered the date that the community revitalization project ordinance was enacted by the sponsor.

(3) The apportionment of taxes under this section must cease when the tax allocation revenues are no longer necessary or obligated to pay community revitalization project costs or to pay principal and interest on bonds issued to finance community revitalization project costs to which tax allocation revenues are pledged. At the time of termination of the apportionment, any excess money and any earnings held by the sponsor must be distributed to the taxing districts that were subject to the allocation in proportion to their tax receipts due for the year in which the funds are returned.

(4) The amount of taxes determined to be collected in the year preceding the formation of the apportionment district shall be adjusted upward or downward to reflect increases or decreases in the rate of taxation to determine the amount of excess taxes to be apportioned in accordance with subsection (1)(b) of this section.

(5) The sponsor may agree to receive less than the full amount provided in subsection (1) of this section, in which case the department shall distribute the balance to the respective taxing districts in accordance with law in the same manner as if this section did not exist.

NEW SECTION. Sec. 8. (1) Tax allocation revenues may be applied as follows:

(a) To pay community revitalization costs;

(b) To pay into bond redemption funds established to pay the principal and interest on general obligation or revenue bonds issued to finance a community revitalization project that is specified in the community revitalization project ordinance and constructed following the establishment of the apportionment district; or

(2) Tax allocation revenues may be pledged to the payment of bonds issued to finance a community revitalization project.

(3) No city may lower their tax rates after the creation of an apportionment district and using tax allocation revenues to finance a community revitalization project.

NEW SECTION. Sec. 9. The department of community, trade, and economic development, in consultation with the department of revenue, shall submit an annual report to appropriate legislative committees on the amount of tax revenue allocated to local governments under the community revitalization financing program created in this act. The report shall also contain information on: (1) The number, description, and location of requests for community revitalization projects, (2) the number of community revitalization projects approved by the department, and (3) an evaluation of how the community revitalization project is meeting criteria of the feasibility study required in section 6 of this act.

NEW SECTION. Sec. 10. This chapter supplements and neither restricts nor limits any powers that the state or any municipal corporation might otherwise have under laws of this state.

NEW SECTION. Sec. 11. The authority to establish an apportionment district under this chapter expires July 1, 2007.

NEW SECTION. Sec. 12. This chapter may be known and cited as the community revitalization financing act.

PART II‑-SALES AND USE TAX OFFSET FOR

COMMUNITY REVITALIZATION PROJECTS

NEW SECTION. Sec. 13. A new section is added to chapter 82.14 RCW to read as follows:

(1)(a) The legislative authority of a city located in a county with population densities between one hundred and one and three hundred and ninety-nine may impose a sales and use tax in accordance with terms of this chapter. The tax is in addition to 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 city. The rate of tax shall not exceed 0.033 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.

(b) The legislative authority of a city located in a county with population densities between four hundred and six hundred and ninety-nine may impose a sales and use tax in accordance with the terms of this chapter. The tax is in addition to 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 city. The rate of tax shall not exceed 0.025 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.

(c) The legislative authority of a city located in a county with population densities greater than seven hundred may impose a sales and use tax in accordance with the terms of this chapter. The tax is in addition to 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 city. The rate of tax shall not exceed 0.017 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.

(2) The tax imposed under subsection (1) of this section shall be deducted from the amount of tax otherwise required to be collected or paid over to the department of revenue under chapter 82.08 or 82.12 RCW. The department of revenue shall perform the collection of the taxes on behalf of the county at no cost to the county.

(3) Moneys collected under this section shall only be used as the state's contribution toward the financing of a community revitalization project under chapter 82.-- RCW (sections 1 through 12 of this act). Only those community revitalization projects approved under section 6 of this act may be financed with moneys collected under this section.

(4) No tax may be collected under this section before July 1, 2001. No tax may be collected under this section by a city more than twenty-five years after the date that a tax is first imposed under this section.

(5) For purposes of this section, "population density" means the number of persons per square mile as determined by the office of financial management and published each year by the department of community, trade, and economic development for the period July 1st to June 30th.

PART III‑-PROPERTY TAX INCREMENT FINANCING

SUBPART A-PROPERTY TAX INCREMENT FINANCING AUTHORIZED

NEW SECTION. Sec. 14. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

(1) "Assessed value of real property" means the valuation of real property as placed on the last completed assessment roll.

(2) "Local government" has the same meaning as in section 3 of this act.

(3) "Ordinance" has the same meaning as in section 3 of this act.

(4) "Public improvements" has the same meaning as "community revitalization project" in section 3 of this act.

(5) "Public improvement costs" means the costs of: (a) Design, planning, acquisition, site preparation, construction, reconstruction, rehabilitation, improvement, and installation of the public improvements; (b) relocating, maintaining, and operating property pending construction of the public improvements; (c) relocating utilities as a result of the public improvements; (d) financing the public improvements, including interest during construction, legal and other professional services, taxes, insurance, principal and interest costs on general indebtedness issued to finance the public improvements, and any necessary reserves for such general indebtedness; (e) the assessor that are incurred in revaluing real property for the purpose of determining the tax allocation base value that are in excess of costs incurred by the assessor in accordance with the revaluation plan under chapter 84.41 RCW, and the costs of apportioning the taxes and complying with this chapter and other applicable law; and (f) administrative costs and feasibility studies reasonably necessary and related to these costs, including such related costs that may have been incurred before adoption of the ordinance authorizing the public improvements and the use of tax increment financing to fund the costs of the public improvements.

(6) "Regular property taxes" means regular property taxes as now or hereafter defined in RCW 84.04.140, except: (a) Regular property taxes levied by port districts or public utility districts specifically for the purpose of making required payments of principal and interest on general indebtedness; and (b) regular property taxes levied by the state for the support of the common schools under RCW 84.52.065.

(7) "Tax allocation base value" means the true and fair value of real property located within a tax increment area for taxes imposed in the year in which the tax increment area is created, plus fifty percent of any increase in the true and fair value of real property located within a tax increment area that is placed on the assessment rolls after the tax increment area is created.

(8) "Tax allocation revenues" means those tax revenues derived from the imposition of regular property taxes on the tax increment value and distributed to finance public improvements.

(9) "Tax increment area" has the same meaning as "apportionment district" in section 3 of this act.

(10) "Tax increment value" means fifty percent of any increase in the true and fair value of real property in a tax increment area that is placed on the tax rolls after the tax increment area is created.

(11) "Taxing districts" means a governmental entity that levies or has levied for it regular property taxes upon real property located within a proposed or approved tax increment area.

(12) "Value of taxable property" means value of the taxable property as defined in RCW 39.36.015.

NEW SECTION. Sec. 15. A local government may finance public improvements using tax increment financing subject to the following conditions:

(1) The local government adopts an ordinance designating a tax increment area within its boundaries and specifying the public improvements proposed to be financed in whole or in part with the use of tax increment financing;

(2) The public improvements proposed to be financed in whole or in part using tax increment financing are expected to encourage private development within the tax increment area and increasing the fair market value of real property within the tax increment area;

(3) Private development that is anticipated to occur within the tax increment area, as a result of the public improvements, will be consistent with the county-wide planning policy adopted by the county under RCW 36.70A.210 and the local government's comprehensive plan and development regulations adopted under chapter 36.70A RCW;

(4) Every taxing district within which the tax increment area is located approves the tax increment financing of the project under section 17(1) of this act; and

(5) The combined amount of tax increment value in this tax increment area, and all other tax increment areas located in the same local government, constitute less than two percent of the assessed value of any taxing district within which the tax increment area is located.

NEW SECTION. Sec. 16. Public improvements that are financed with tax increment financing may be undertaken and coordinated with other programs or efforts undertaken by the local government and other taxing districts and may be funded in part from revenue sources other than tax increment financing.

NEW SECTION. Sec. 17. Before adopting an ordinance creating the tax increment area, a local government must:

(1) Obtain written agreement for the use of tax increment financing to finance all or a portion of the costs of the designated public improvements from each taxing district within which the tax increment area is located. Signing a written agreement constitutes concurrence in the public improvement and participation in the public improvement to the extent of providing limited funding under tax increment financing authorized under this chapter. The agreement must be authorized by the governing body of each taxing district and by the director of the office of financial management for the state;

(2) Hold a public hearing on the proposed financing of the public improvement in whole or in part with tax increment financing. Notice of the public hearing must be published in the official local government newspaper at least ten days before the public hearing and posted in at least six conspicuous public places located in the proposed tax increment area. Notices must describe the contemplated public improvements, estimate the costs of the public improvements, describe the portion of the costs of the public improvements to be borne by tax increment financing, describe any other sources of revenue to finance the public improvements, describe the boundaries of the proposed tax increment area, and estimate the period during which tax increment financing is contemplated to be used. The public hearing may be held by either the governing body of the local government, or a committee of the governing body that includes at least a majority of the whole governing body; and

(3) Adopt an ordinance establishing the tax increment area that describes the public improvements, describes the boundaries of the tax increment area, estimates the cost of the public improvements and the portion of these costs to be financed by tax increment financing, estimates the time during which regular property taxes are to be apportioned, provides the date when the apportionment of the regular property taxes will commence, and finds that the conditions of section 15 of this act are met.

NEW SECTION. Sec. 18. Within fifteen days after a local government adopts an ordinance creating the tax increment area and authorizing tax increment financing, the local government shall:

(1) Publish notice in a legal newspaper circulated within the tax increment area that describes the public improvement, describes the boundaries of the tax increment area, and identifies the location and times where the ordinance and other public information concerning the public improvement may be inspected; and

(2) Deliver a certified copy of the ordinance to the county treasurer, the county assessor, and the governing body of each taxing district within which the tax increment area is located.

NEW SECTION. Sec. 19. (1) Commencing on the later of either the date established in the ordinance creating the tax increment area, or the first day of the calendar year following the passage of the ordinance, the county treasurer shall distribute receipts from regular taxes imposed on real property located in the tax increment area as follows:

(a) Each taxing district shall receive that portion of its regular property taxes produced by the rate of tax levied by or for the taxing district on the tax allocation base value for that tax increment financing project in the taxing district, or upon the total assessed value of real property in the taxing district, whichever is smaller; and

(b) The local government that created the tax increment area shall receive an additional portion of the regular property taxes levied by or for each taxing district upon the tax increment value within the tax increment area. However, the local government that created the tax increment area may agree to receive less than the full amount of this portion as long as bond debt service, reserve, and other bond covenant requirements are satisfied, in which case the balance of these tax receipts shall be allocated to the taxing districts that imposed regular property taxes, or have regular property taxes imposed for them, in the tax increment area for collection that year in proportion to their regular tax levy rates for collection that year. The local government may request that the treasurer transfer this additional portion of the property taxes to its designated agent. The portion of the tax receipts distributed to the local government or its agent under this subsection (1)(b) may only be expended to finance public improvement costs associated with the public improvements financed in whole or in part by tax increment financing.

(2) The county assessor shall allocate fifty percent of any increased real property value occurring in the tax increment area to the tax allocation base value and the other fifty percent to the tax increment value. This section does not authorize revaluations of real property by the assessor for property taxation that are not made in accordance with the assessor's revaluation plan under chapter 84.41 RCW or under other authorized revaluation procedures.

(3) The apportionment of increases in assessed valuation in a tax increment area, and the associated distribution to the local government of receipts from regular property taxes that are imposed on the tax increment value, must cease when tax allocation revenues are no longer necessary or obligated to pay the costs of the public improvements. Any excess tax allocation revenues and earnings on the tax allocation revenues remaining at the time the apportionment of tax receipts terminates must be returned to the county treasurer and distributed to the taxing districts that imposed regular property taxes, or had regular property taxes imposed for it, in the tax increment area for collection that year, in proportion to the rates of their regular property tax levies for collection that year.

NEW SECTION. Sec. 20. (1) A local government designating a tax increment area and authorizing the use of tax increment financing may incur general indebtedness, and issue general obligation bonds, to finance the public improvements and retire the indebtedness in whole or in part from tax allocation revenues it receives, subject to the following requirements:

(a) The ordinance adopted by the local government creating the tax increment area and authorizing the use of tax increment financing indicates an intent to incur this indebtedness and the maximum amount of this indebtedness that is contemplated; and

(b) The local government includes this statement of the intent in all notices required by section 17 of this act.

(2) The general indebtedness incurred under subsection (1) of this section may be payable from other tax revenues, the full faith and credit of the local government, and nontax income, revenues, fees, and rents from the public improvements, as well as contributions, grants, and nontax money available to the local government for payment of costs of the public improvements or associated debt service on the general indebtedness.

(3) The ordinance creating the tax increment area and authorizing the use of tax increment financing is subject to potential referendum action by the voters of the local government if the ordinance authorizes the local government to incur non-voter-approved general indebtedness payable from tax increment receipts. If the voters of the local government otherwise possess the general power of referendum on local government matters, the ordinance is subject to that procedure. If the voters of the local government do not otherwise possess the general power of referendum on local government matters, the referendum shall conform to the requirements and procedures for referendum petitions provided for code cities in RCW 35A.11.100.

NEW SECTION. Sec. 21. A direct or collateral attack on a public improvement, public improvement ordinance, or tax increment area purported to be authorized or created in conformance with applicable legal requirements, including this chapter, may not be commenced more than thirty days after publication of notice as required by section 18 of this act.

NEW SECTION. Sec. 22. (1) In addition to other authorities, the state may provide public improvements as defined under section 14 of this act, but this additional authority is limited to participating in the financing of the public improvements by agreeing to the tax increment financing as provided under section 17 of this act.

This section does not limit the authority of the state to otherwise participate in the public improvements if that authority exists elsewhere.

(2) It is recognized, as provided by Article XI, section 1 of the state Constitution, that it is the paramount duty of the state to make ample provision for the education of all children residing in this state. Each year, the state property tax levy generates considerably less than one-half of the money that the legislature has appropriated for basic education that year, which is about one-quarter of the money the legislature has appropriated for all K-12 education purposes that year. Allowing a diversion of a small portion of the state property tax levy for purposes provided in this chapter does not alter or limit the paramount duty of the state to make ample provision for education of all children residing in the state.

NEW SECTION. Sec. 23. This chapter supplements and neither restricts nor limits any powers which the state or any local government might otherwise have under any laws of this state.

NEW SECTION. Sec. 24. This chapter expires July 1, 2005.

NEW SECTION. Sec. 25. Sections 14 through 24 of this act constitute a new chapter in Title 39 RCW.

SUBPART B-REFERENCES IN TAXING DISTRICTS' LAWS

NEW SECTION. Sec. 26. A new section is added to chapter 27.12 RCW to read as follows:

In addition to other authority that a rural county library district or intercounty rural library district possesses, a rural county library district or an intercounty rural library district may provide any public improvement as defined under section 14 of this act, but this additional authority is limited to participating in the financing of the public improvements by agreeing to the tax increment financing as provided under section 17 of this act.

This section does not limit the authority of a rural county library district or intercounty rural library district to otherwise participate in the public improvements if that authority exists elsewhere.

NEW SECTION. Sec. 27. A new section is added to chapter 35.61 RCW to read as follows:

In addition to other authority that a metropolitan park district possesses, a metropolitan park district may provide any public improvement as defined under section 14 of this act, but this additional authority is limited to participating in the financing of the public improvements by agreeing to the tax increment financing as provided under section 17 of this act.

This section does not limit the authority of a metropolitan park district to otherwise participate in the public improvements if that authority exists elsewhere.

NEW SECTION. Sec. 28. A new section is added to chapter 36.32 RCW to read as follows:

In addition to other authority that a county possesses, a county may provide any public improvement as defined under section 14 of this act, but this additional authority is limited to participating in the financing of the public improvements by agreeing to the tax increment financing as provided under section 17 of this act.

This section does not limit the authority of a county to otherwise participate in the public improvements if that authority exists elsewhere.

NEW SECTION. Sec. 29. A new section is added to chapter 36.68 RCW to read as follows:

In addition to other authority that a park and recreation service area possesses, a park and recreation service area may provide any public improvement as defined under section 14 of this act, but this additional authority is limited to participating in the financing of the public improvements by agreeing to the tax increment financing as provided under section 17 of this act.

This section does not limit the authority of a park and recreation service area to otherwise participate in the public improvements if that authority exists elsewhere.

NEW SECTION. Sec. 30. A new section is added to chapter 36.69 RCW to read as follows:

In addition to other authority that a park and recreation district possesses, a park and recreation district may provide any public improvement as defined under section 14 of this act, but this additional authority is limited to participating in the financing of the public improvements by agreeing to the tax increment financing as provided under section 17 of this act.

This section does not limit the authority of a park and recreation district to otherwise participate in the public improvements if that authority exists elsewhere.

NEW SECTION. Sec. 31. A new section is added to chapter 36.75 RCW to read as follows:

In addition to other authority that a road district possesses, a road district may provide any public improvement as defined under section 14 of this act, but this additional authority is limited to participating in the financing of the public improvements by agreeing to the tax increment financing as provided under section 17 of this act.

This section does not limit the authority of a road district to otherwise participate in the public improvements if that authority exists elsewhere.

NEW SECTION. Sec. 32. A new section is added to chapter 52.12 RCW to read as follows:

In addition to other authority that a fire protection district possesses, a fire protection district may provide any public improvement as defined under section 14 of this act, but this additional authority is limited to participating in the financing of the public improvements by agreeing to the tax increment financing as provided under section 17 of this act.

This section does not limit the authority of a fire protection district to otherwise participate in the public improvements if that authority exists elsewhere.

NEW SECTION. Sec. 33. A new section is added to chapter 53.08 RCW to read as follows:

In addition to other authority that a port district possesses, a port district may provide any public improvement as defined under section 14 of this act, but this additional authority is limited to participating in the financing of the public improvements by agreeing to the tax increment financing as provided under section 17 of this act.

This section does not limit the authority of a port district to otherwise participate in the public improvements if that authority exists elsewhere.

NEW SECTION. Sec. 34. A new section is added to chapter 54.16 RCW to read as follows:

In addition to other authority that a public utility district possesses, a public utility district may provide any public improvement as defined under section 14 of this act, but this additional authority is limited to participating in the financing of the public improvements by agreeing to the tax increment financing as provided under section 17 of this act.

This section does not limit the authority of a public utility district to otherwise participate in the public improvements if that authority exists elsewhere.

NEW SECTION. Sec. 35. A new section is added to chapter 67.38 RCW to read as follows:

In addition to other authority that a cultural arts, stadium, and convention center district possesses, a cultural arts, stadium, and convention center district may provide any public improvement as defined under section 14 of this act, but this additional authority is limited to participating in the financing of the public improvements by agreeing to the tax increment financing as provided under section 17 of this act.

This section does not limit the authority of a cultural arts, stadium, and convention center district to otherwise participate in the public improvements if that authority exists elsewhere.

NEW SECTION. Sec. 36. A new section is added to chapter 68.52 RCW to read as follows:

In addition to other authority that a cemetery district possesses, a cemetery district may provide any public improvement as defined under section 14 of this act, but this additional authority is limited to participating in the financing of the public improvements by agreeing to the tax increment financing as provided under section 17 of this act.

This section does not limit the authority of a cemetery district to otherwise participate in the public improvements if that authority exists elsewhere.

NEW SECTION. Sec. 37. A new section is added to chapter 70.44 RCW to read as follows:

In addition to other authority that a public hospital district possesses, a public hospital district may provide any public improvement as defined under section 14 of this act, but this additional authority is limited to participating in the financing of the public improvements by agreeing to the tax increment financing as provided under section 17 of this act.

This section does not limit the authority of a public hospital district to otherwise participate in the public improvements if that authority exists elsewhere.

NEW SECTION. Sec. 38. A new section is added to chapter 86.15 RCW to read as follows:

In addition to other authority that a flood control zone district possesses, a flood control zone district may provide any public improvement as defined under section 14 of this act, but this additional authority is limited to participating in the financing of the public improvements by agreeing to the tax increment financing as provided under section 17 of this act.

This section does not limit the authority of a flood control zone district to otherwise participate in the public improvements if that authority exists elsewhere.

SUBPART C-PROPERTY TAX INCREMENT FINANCING TECHNICAL PROVISIONS

NEW SECTION. Sec. 39. A new section is added to chapter 84.55 RCW to read as follows:

Limitations on regular property taxes that are provided in this chapter shall continue in a taxing district whether or not a tax increment area exists within the taxing district as provided under chapter 39.-- RCW (sections 14 through 24 of this act).

Sec. 40. RCW 84.52.043 and 1995 c 99 s 3 are each amended to read as follows:

Within and subject to the limitations imposed by RCW 84.52.050 as amended, the regular ad valorem tax levies upon real and personal property by the taxing districts hereafter named shall be as follows:

(1) Levies of the senior taxing districts shall be as follows: (a) The levy by the state shall not exceed three dollars and sixty cents per thousand dollars of assessed value adjusted to the state equalized value in accordance with the indicated ratio fixed by the state department of revenue to be used exclusively for the support of the common schools, except that a portion of this levy may be used as provided in chapter 39.-- RCW (sections 14 through 24 of this act); (b) the levy by any county shall not exceed one dollar and eighty cents per thousand dollars of assessed value; (c) the levy by any road district shall not exceed two dollars and twenty-five cents per thousand dollars of assessed value; and (d) the levy by any city or town shall not exceed three dollars and thirty-seven and one-half cents per thousand dollars of assessed value. However any county is hereby authorized to increase its levy from one dollar and eighty cents to a rate not to exceed two dollars and forty-seven and one-half cents per thousand dollars of assessed value for general county purposes if the total levies for both the county and any road district within the county do not exceed four dollars and five cents per thousand dollars of assessed value, and no other taxing district has its levy reduced as a result of the increased county levy.

(2) The aggregate levies of junior taxing districts and senior taxing districts, other than the state, shall not exceed five dollars and ninety cents per thousand dollars of assessed valuation. The term "junior taxing districts" includes all taxing districts other than the state, counties, road districts, cities, towns, port districts, and public utility districts. The limitations provided in this subsection shall not apply to: (a) Levies at the rates provided by existing law by or for any port or public utility district; (b) excess property tax levies authorized in Article VII, section 2 of the state Constitution; (c) levies for acquiring conservation futures as authorized under RCW 84.34.230; (d) levies for emergency medical care or emergency medical services imposed under RCW 84.52.069; (e) levies to finance affordable housing for very low-income housing imposed under RCW 84.52.105; and (f) the portions of levies by metropolitan park districts that are protected under RCW 84.52.120.

Sec. 41. RCW 84.52.065 and 1991 sp.s. c 31 s 16 are each amended to read as follows:

Subject to the limitations in RCW 84.55.010, in each year the state shall levy for collection in the following year for the support of common schools of the state a tax of three dollars and sixty cents per thousand dollars of assessed value upon the assessed valuation of all taxable property within the state adjusted to the state equalized value in accordance with the indicated ratio fixed by the state department of revenue, except that a portion of this levy may be used as provided in chapter 39.-- RCW (sections 14 through 24 of this act).

As used in this section, "the support of common schools" includes the payment of the principal and interest on bonds issued for capital construction projects for the common schools.

Sec. 42. RCW 84.52.067 and 1967 ex.s. c 133 s 2 are each amended to read as follows:

All property taxes levied by the state for the support of common schools, that are not diverted under chapter 39.-- RCW (sections 14 through 24 of this act), shall be paid into the general fund of the state treasury as provided in RCW 84.56.280.

Sec. 43. RCW 36.33.220 and 1973 1st ex.s. c 195 s 142 are each amended to read as follows:

The legislative authority of any county may budget, in accordance with the provisions of chapter 36.40 RCW, and expend any portion of the county road property tax revenues for any service to be provided in the unincorporated area of the county notwithstanding any other provision of law, including chapter 36.82 RCW and RCW 84.52.050 and 84.52.043. County road property tax revenues that are diverted under chapter 39.-- RCW (sections 14 through 24 of this act) may be expended as provided under chapter 39.-- RCW (sections 14 through 24 of this act).

Sec. 44. RCW 36.79.140 and 1997 c 81 s 6 are each amended to read as follows:

At the time the board reviews the six-year program of each county each even-numbered year, it shall consider and shall approve for inclusion in its recommended budget, as required by RCW 36.79.130, the portion of the rural arterial construction program scheduled to be performed during the biennial period beginning the following July 1st. Subject to the appropriations actually approved by the legislature, the board shall as soon as feasible approve rural arterial trust account funds to be spent during the ensuing biennium for preliminary proposals in priority sequence as established pursuant to RCW 36.79.090. Only those counties that during the preceding twelve months have spent all revenues collected for road purposes only for such purposes, including traffic law enforcement, as are allowed to the state by Article II, section 40 of the state Constitution are eligible to receive funds from the rural arterial trust account((~~: PROVIDED HOWEVER~~)), except that: (1) Counties with a population of less than eight thousand are exempt from this eligibility restriction((~~: AND PROVIDED FURTHER, That~~)); (2) counties expending revenues collected for road purposes only on other governmental services after authorization from the voters of that county under RCW 84.55.050 are also exempt from this eligibility restriction; and (3) this restriction shall not apply to any moneys diverted from the road district levy under chapter 39.-- RCW (sections 14 through 24 of this act). The board shall authorize rural arterial trust account funds for the construction project portion of a project previously authorized for a preliminary proposal in the sequence in which the preliminary proposal has been completed and the construction project is to be placed under contract. At such time the board may reserve rural arterial trust account funds for expenditure in future years as may be necessary for completion of preliminary proposals and construction projects to be commenced in the ensuing biennium.

The board may, within the constraints of available rural arterial trust funds, consider additional projects for authorization upon a clear and conclusive showing by the submitting county that the proposed project is of an emergent nature and that its need was unable to be anticipated at the time the six-year program of the county was developed. The proposed projects shall be evaluated on the basis of the priority rating factors specified in RCW 36.79.080.

Sec. 45. RCW 36.82.040 and 1973 1st ex.s. c 195 s 41 are each amended to read as follows:

For the purpose of raising revenue for establishing, laying out, constructing, altering, repairing, improving, and maintaining county roads, bridges, and wharves necessary for vehicle ferriage and for other proper county purposes, the board shall annually at the time of making the levy for general purposes make a uniform tax levy throughout the county, or any road district thereof, of not to exceed two dollars and twenty-five cents per thousand dollars of assessed value of the last assessed valuation of the taxable property in the county, or road district thereof, unless other law of the state requires a lower maximum levy, in which event such lower maximum levy shall control. All funds accruing from such levy shall be credited to and deposited in the county road fund except that revenue diverted under RCW 36.33.220 shall be placed in a separate and identifiable account within the county current expense fund and except that revenue diverted under chapter 39.-- RCW (sections 14 through 24 of this act) shall be expended as provided under chapter 39.-- RCW (sections 14 through 24 of this act).

Sec. 46. RCW 46.68.124 and 1990 c 33 s 586 are each amended to read as follows:

(1) The equivalent population for each county shall be computed as the sum of the population residing in the county's unincorporated area plus twenty-five percent of the population residing in the county's incorporated area. Population figures required for the computations in this subsection shall be certified by the director of the office of financial management on or before July 1st of each odd-numbered year.

(2) The total annual road cost for each county shall be computed as the sum of one twenty-fifth of the total estimated county road replacement cost, plus the total estimated annual maintenance cost. Appropriate costs for bridges and ferries shall be included. The county road administration board shall be responsible for establishing a uniform system of roadway categories for both maintenance and construction and also for establishing a single state-wide cost per mile rate for each roadway category. The total annual cost for each county will be based on the established state-wide cost per mile and associated mileage for each category. The mileage to be used for these computations shall be as shown in the county road log as maintained by the county road administration board as of July 1, 1985, and each two years thereafter. Each county shall be responsible for submitting changes, corrections, and deletions as regards the county road log to the county road administration board. Such changes, corrections, and deletions shall be subject to verification and approval by the county road administration board prior to inclusion in the county road log.

(3) The money need factor for each county shall be the county's total annual road cost less the following four amounts:

(a) One-half the sum of the actual county road tax levied upon the valuation of all taxable property within the county road districts pursuant to RCW 36.82.040, including any amount of such tax diverted under chapter 39.-- RCW (sections 14 through 24 of this act), for the two calendar years next preceding the year of computation of the allocation amounts as certified by the department of revenue;

(b) One-half the sum of all funds received by the county road fund from the federal forest reserve fund pursuant to RCW 28A.520.010 and 28A.520.020 during the two calendar years next preceding the year of computation of the allocation amounts as certified by the state treasurer;

(c) One-half the sum of timber excise taxes received by the county road fund pursuant to chapter 84.33 RCW in the two calendar years next preceding the year of computation of the allocation amounts as certified by the state treasurer;

(d) One-half the sum of motor vehicle license fees and motor vehicle and special fuel taxes refunded to the county, pursuant to RCW 46.68.080 during the two calendar years next preceding the year of computation of the allocation amounts as certified by the state treasurer.

(4) The state treasurer and the department of revenue shall furnish to the county road administration board the information required by subsection (3) of this section on or before July 1st of each odd-numbered year.

(5) The county road administration board, shall compute and provide to the counties the allocation factors of the several counties on or before September 1st of each year based solely upon the sources of information herein before required: PROVIDED, That the allocation factor shall be held to a level not more than five percent above or five percent below the allocation factor in use during the previous calendar year. Upon computation of the actual allocation factors of the several counties, the county road administration board shall provide such factors to the state treasurer to be used in the computation of the counties' fuel tax allocation for the succeeding calendar year. The state treasurer shall adjust the fuel tax allocation of each county on January 1st of every year based solely upon the information provided by the county road administration board.

Sec. 47. RCW 82.03.130 and 1998 c 54 s 1 are each amended to read as follows:

(1) The board shall have jurisdiction to decide the following types of appeals:

(a) Appeals taken pursuant to RCW 82.03.190.

(b) Appeals from a county board of equalization pursuant to RCW 84.08.130.

(c) Appeals by an assessor or landowner from an order of the director of revenue made pursuant to RCW 84.08.010 and 84.08.060, if filed with the board of tax appeals within thirty days after the mailing of the order, the right to such an appeal being hereby established.

(d) Appeals by an assessor or owner of an intercounty public utility or private car company from determinations by the director of revenue of equalized assessed valuation of property and the apportionment thereof to a county made pursuant to chapter 84.12 and 84.16 RCW, if filed with the board of tax appeals within thirty days after mailing of the determination, the right to such appeal being hereby established.

(e) Appeals by an assessor, landowner, or owner of an intercounty public utility or private car company from a determination of any county indicated ratio for such county compiled by the department of revenue pursuant to RCW 84.48.075: PROVIDED, That

(i) Said appeal be filed after review of the ratio under RCW 84.48.075(3) and not later than fifteen days after the mailing of the certification; and

(ii) The hearing before the board shall be expeditiously held in accordance with rules prescribed by the board and shall take precedence over all matters of the same character.

(f) Appeals from the decisions of sale price of second class shorelands on navigable lakes by the department of natural resources pursuant to RCW 79.94.210.

(g) ((~~Appeals from urban redevelopment property tax apportionment district proposals established by governmental ordinances pursuant to RCW 39.88.060.~~

~~(h)~~)) Appeals from interest rates as determined by the department of revenue for use in valuing farmland under current use assessment pursuant to RCW 84.34.065.

((~~(i)~~)) (h) Appeals from revisions to stumpage value tables used to determine value by the department of revenue pursuant to RCW 84.33.091.

((~~(j)~~)) (i) Appeals from denial of tax exemption application by the department of revenue pursuant to RCW 84.36.850.

((~~(k)~~)) (j) Appeals pursuant to RCW 84.40.038(3).

(2) Except as otherwise specifically provided by law hereafter, the provisions of RCW 1.12.070 shall apply to all notices of appeal filed with the board of tax appeals.

PART IV‑-MISCELLANEOUS

Sec. 48. RCW 35.87A.010 and 1993 c 429 s 1 are each amended to read as follows:

To aid general economic development and neighborhood revitalization, and to facilitate the cooperation of merchants, businesses, and residential property owners which assists trade, economic viability, and liveability, the legislature hereby authorizes all counties and all incorporated cities and towns, including unclassified cities and towns operating under special charters:

(1) To establish, after a petition submitted by the operators responsible for sixty percent of the assessments by businesses and multifamily residential or mixed-use projects within the area, parking and business improvement areas, hereafter referred to as area or areas, for the following purposes:

(a) The acquisition, construction or maintenance of parking facilities for the benefit of the area;

(b) Decoration of any public place in the area;

(d) Furnishing of music in any public place in the area;

(e) Providing professional management, planning, and promotion for the area, including the management and promotion of retail trade activities in the area; or

(f) Providing maintenance and security for common, public areas.

(2) To levy special assessments on all businesses and multifamily residential or mixed-use projects within the area and specially benefited by a parking and business improvement area to pay in whole or in part the damages or costs incurred therein as provided in this chapter.

(3) To enter into agreements with a legislative authority to administer community revitalization projects within an apportionment district established under sections 1 through 12 of this act.

Sec. 49. RCW 82.14.050 and 1999 c 165 s 14 are each amended to read as follows:

The counties, cities, and transportation authorities under RCW 82.14.045 and public facilities districts under chapter 36.100 and 35.57 RCW shall contract, prior to the effective date of a resolution or ordinance imposing a sales and use tax, the administration and collection to the state department of revenue, which shall deduct a percentage amount, as provided by contract, not to exceed two percent of the taxes collected for administration and collection expenses incurred by the department. Except as provided in section 7 of this act, the remainder of any portion of any tax authorized by this chapter which is collected by the department of revenue shall be deposited by the state department of revenue in the local sales and use tax account hereby created in the state treasury. Moneys in the local sales and use tax account may be spent only for distribution to counties, cities, transportation authorities, and public facilities districts imposing a sales and use tax. All administrative provisions in chapters 82.03, 82.08, 82.12, and 82.32 RCW, as they now exist or may hereafter be amended, shall, insofar as they are applicable to state sales and use taxes, be applicable to taxes imposed pursuant to this chapter. Except as provided in RCW 43.08.190, all earnings of investments of balances in the local sales and use tax account shall be credited to the local sales and use tax account and distributed to the counties, cities, transportation authorities, and public facilities districts monthly.

Sec. 50. RCW 35.80.030 and 1989 c 133 s 3 are each amended to read as follows:

(1) Whenever the local governing body of a municipality finds that one or more conditions of the character described in RCW 35.80.010 exist within its territorial limits, said governing body may adopt ordinances relating to such dwellings, buildings, structures, or premises. Such ordinances may provide for the following:

(a) That an "improvement board" or officer be designated or appointed to exercise the powers assigned to such board or officer by the ordinance as specified herein. Said board or officer may be an existing municipal board or officer in the municipality, or may be a separate board or officer appointed solely for the purpose of exercising the powers assigned by said ordinance.

If a board is created, the ordinance shall specify the terms, method of appointment, and type of membership of said board, which may be limited, if the local governing body chooses, to public officers as herein defined.

(b) If a board is created, a public officer, other than a member of the improvement board, may be designated to work with the board and carry out the duties and exercise the powers assigned to said public officer by the ordinance.

(c) That if, after a preliminary investigation of any dwelling, building, structure, or premises, the board or officer finds that it is unfit for human habitation or other use, he shall cause to be served either personally or by certified mail, with return receipt requested, upon all persons having any interest therein, as shown upon the records of the auditor's office of the county in which such property is located, and shall post in a conspicuous place on such property, a complaint stating in what respects such dwelling, building, structure, or premises is unfit for human habitation or other use. If the whereabouts of any of such persons is unknown and the same cannot be ascertained by the board or officer in the exercise of reasonable diligence, and the board or officer makes an affidavit to that effect, then the serving of such complaint or order upon such persons may be made either by personal service or by mailing a copy of the complaint and order by certified mail, postage prepaid, return receipt requested, to each such person at the address of the building involved in the proceedings, and mailing a copy of the complaint and order by first class mail to any address of each such person in the records of the county assessor or the county auditor for the county where the property is located. Such complaint shall contain a notice that a hearing will be held before the board or officer, at a place therein fixed, not less than ten days nor more than thirty days after the serving of said complaint; and that all parties in interest shall be given the right to file an answer to the complaint, to appear in person, or otherwise, and to give testimony at the time and place in the complaint. The rules of evidence prevailing in courts of law or equity shall not be controlling in hearings before the board or officer. A copy of such complaint shall also be filed with the auditor of the county in which the dwelling, building, structure, or ((~~premise [premises]~~)) premises is located, and such filing of the complaint or order shall have the same force and effect as other lis pendens notices provided by law.

(d) That the board or officer may determine that a dwelling, building, structure, or premises is unfit for human habitation or other use if it finds that conditions exist in such dwelling, building, structure, or premises which are dangerous or injurious to the health or safety of the occupants of such dwelling, building, structure, or premises, the occupants of neighboring dwellings, or other residents of such municipality. Such conditions may include the following, without limitations: Defects therein increasing the hazards of fire or accident; inadequate ventilation, light, or sanitary facilities, dilapidation, disrepair, structural defects, uncleanliness, overcrowding, or inadequate drainage. The ordinance shall state reasonable and minimum standards covering such conditions, including those contained in ordinances adopted in accordance with ((~~subdivision~~)) subsection (7)(a) ((~~herein~~)) of this section, to guide the board or the public officer and the agents and employees of either, in determining the fitness of a dwelling for human habitation, or building, structure, or premises for other use.

(e) That the determination of whether a dwelling, building, structure, or premises should be repaired or demolished, shall be based on specific stated standards on (i) the degree of structural deterioration of the dwelling, building, structure, or premises, or (ii) the relationship that the estimated cost of repair bears to the value of the dwelling, building, structure, or premises, with the method of determining this value to be specified in the ordinance.

(f) That if, after the required hearing, the board or officer determines that the dwelling is unfit for human habitation, or building or structure or premises is unfit for other use, it shall state in writing its findings of fact in support of such determination, and shall issue and cause to be served upon the owner or party in interest thereof, as is provided in ((~~subdivision (1)~~))(c) of this subsection, and shall post in a conspicuous place on said property, an order which (i) requires the owner or party in interest, within the time specified in the order, to repair, alter, or improve such dwelling, building, structure, or premises to render it fit for human habitation, or for other use, or to vacate and close the dwelling, building, structure, or premises, if such course of action is deemed proper on the basis of the standards set forth as required in ((~~subdivision (1)~~))(e) of this subsection; or (ii) requires the owner or party in interest, within the time specified in the order, to remove or demolish such dwelling, building, structure, or premises, if this course of action is deemed proper on the basis of said standards. If no appeal is filed, a copy of such order shall be filed with the auditor of the county in which the dwelling, building, structure, or premises is located.

(g) The owner or any party in interest, within thirty days from the date of service upon the owner and posting of an order issued by the board under the provisions of ((~~subdivision~~)) (c) of this subsection, may file an appeal with the appeals commission.

The local governing body of the municipality shall designate or establish a municipal agency to serve as the appeals commission. The local governing body shall also establish rules of procedure adequate to assure a prompt and thorough review of matters submitted to the appeals commission, and such rules of procedure shall include the following, without being limited thereto: (i) All matters submitted to the appeals commission must be resolved by the commission within sixty days from the date of filing therewith and (ii) a transcript of the findings of fact of the appeals commission shall be made available to the owner or other party in interest upon demand.

The findings and orders of the appeals commission shall be reported in the same manner and shall bear the same legal consequences as if issued by the board, and shall be subject to review only in the manner and to the extent provided in ((~~subdivision~~)) subsection (2) of this section.

If the owner or party in interest, following exhaustion of his rights to appeal, fails to comply with the final order to repair, alter, improve, vacate, close, remove, or demolish the dwelling, building, structure, or premises, the board or officer may direct or cause such dwelling, building, structure, or premises to be repaired, altered, improved, vacated, and closed, removed, or demolished.

(h) That the amount of the cost of such repairs, alterations or improvements; or vacating and closing; or removal or demolition by the board or officer, shall be assessed against the real property upon which such cost was incurred unless such amount is previously paid. Upon certification to him by the treasurer of the municipality in cases arising out of the city or town or by the county improvement board or officer, in cases arising out of the county, of the assessment amount being due and owing, the county treasurer shall enter the amount of such assessment upon the tax rolls against the property for the current year and the same shall become a part of the general taxes for that year to be collected at the same time and with interest at such rates and in such manner as provided for in RCW 84.56.020, as now or hereafter amended, for delinquent taxes, and when collected to be deposited to the credit of the general fund of the municipality. If the dwelling, building, structure, or premises is removed or demolished by the board or officer, the board or officer shall, if possible, sell the materials of such dwelling, building, structure, ((~~[or]~~)) or premises in accordance with procedures set forth in said ordinance, and shall credit the proceeds of such sale against the cost of the removal or demolition and if there be any balance remaining, it shall be paid to the parties entitled thereto, as determined by the board or officer, after deducting the costs incident thereto.

The assessment shall constitute a lien against the property which shall be of equal rank with state, county, and municipal taxes and shall have a first priority and shall be paid before the payment of other state, county, and municipal taxes from any tax payments collected or the proceeds of any sale of the property through foreclosure or sale by the county including, but not limited to, the proceeds of sales of any property acquired by the county by tax deed.

(2) Any person affected by an order issued by the appeals commission pursuant to ((~~subdivision~~)) subsection (1)(f) ((~~hereof~~)) of this section may, within thirty days after the posting and service of the order, petition to the superior court for an injunction restraining the public officer or members of the board from carrying out the provisions of the order. In all such proceedings the court is authorized to affirm, reverse, or modify the order and such trial shall be heard de novo.

(3) An ordinance adopted by the local governing body of the municipality may authorize the board or officer to exercise such powers as may be necessary or convenient to carry out and effectuate the purposes and provisions of this section. These powers shall include the following in addition to others herein granted: (a)(i) To determine which dwellings within the municipality are unfit for human habitation; (ii) to determine which buildings, structures, or premises are unfit for other use; (b) to administer oaths and affirmations, examine witnesses and receive evidence; and (c) to investigate the dwelling and other property conditions in the municipality or county and to enter upon premises for the purpose of making examinations when the board or officer has reasonable ground for believing they are unfit for human habitation, or for other use: PROVIDED, That such entries shall be made in such manner as to cause the least possible inconvenience to the persons in possession, and to obtain an order for this purpose after submitting evidence in support of an application which is adequate to justify such an order from a court of competent jurisdiction in the event entry is denied or resisted.

(4) The local governing body of any municipality adopting an ordinance pursuant to this chapter may appropriate the necessary funds to administer such ordinance.

(5) Nothing in this section shall be construed to abrogate or impair the powers of the courts or of any department of any municipality to enforce any provisions of its charter or its ordinances or regulations, nor to prevent or punish violations thereof; and the powers conferred by this section shall be in addition and supplemental to the powers conferred by any other law.

(6) Nothing in this section shall be construed to impair or limit in any way the power of the municipality to define and declare nuisances and to cause their removal or abatement, by summary proceedings or otherwise.

(7) Any municipality may (by ordinance adopted by its governing body) (a) prescribe minimum standards for the use and occupancy of dwellings throughout the municipality, or county, (b) prescribe minimum standards for the use or occupancy of any building, structure, or premises used for any other purpose, (c) prevent the use or occupancy of any dwelling, building, structure, or premises, which is injurious to the public health, safety, morals, or welfare, and (d) prescribe punishment for the violation of any provision of such ordinance.

NEW SECTION. Sec. 51. A new section is added to chapter 35.80 RCW to read as follows:

(1) The municipality, as an alternative or additional remedy, may acquire by negotiation the substandard building, structure, or premises and the land on which it is located, and after the acquisition may utilize public or other available funds to improve the property acquired and the property may be used or transferred, as authorized under chapter 35.80A RCW, as if the property were acquired under RCW 35.80A.010, if the owner or the owner's representative notifies the municipality in writing that the owner refuses or is unable to proceed or fails to: (a) Repair, alter, or improve a substandard building, structure, or premises; or (b) remove or demolish a substandard building, structure, or premises as required by the order of the board or officer under RCW 35.80.030.

(2) If the substandard building to be acquired is part of a community revitalization project, the municipality may acquire property adjacent to the substandard building, as necessary to provide for the implementation of the approved community revitalization project, upon a finding by resolution of the local governing body that the acquisition is necessary in order to cure the problems associated with the substandard building or buildings, and that redevelopment of the site is not feasible unless the adjacent property is acquired. This subsection provides supplemental and alternative authority for acquisition of property by a municipality.

(3)(a) If the owner of a substandard building presents evidence satisfactory to the municipality that the owner does not have available sufficient funds or is unable to obtain financing on reasonable terms to repair, alter, or improve a substandard building as required by the order of the board or officer, under RCW 35.80.030, and in a manner that will place the substandard building in a condition that will cure the functional obsolescence of the building for its intended use, then the municipality may, through its local governing body, approve a project agreement with the owner that may provide for:

(i) Repair, alterations, and improvement of the substandard building so as to comply with the order of the board or officer, under RCW 35.80.030, and with the terms and conditions of the project agreement;

(ii) The manner in which work under the project agreement will be accomplished and how payment will be made, that may include, but is not limited to, work let by the municipality and payment by the municipality for work completed on the substandard building in accordance with the project agreement; and

(iii) Repayment by the owner of the costs incurred by the municipality under the project agreement which repayment may be made in installments with interest on the unpaid portion as fixed by the local legislative body or paid in such other manner as may be provided in the project agreement.

(b) If not otherwise provided in the project agreement, the amount of costs incurred by the municipality in accordance with the project agreement must be treated as if it were an assessment on an approved final assessment roll for improvements constructed within a local improvement district, under chapter 35.44 RCW, and the costs shall be a lien on the property improved, in the same manner and to the same extent as a local improvement district assessment lien, and shall be collected in the same manner as assessments, installment payments, interest, and penalties are collected under chapter 35.49 RCW.

(c) The project agreement may provide that the lien for the repayment of all or a portion of the costs incurred by the municipality under the project agreement may be subordinated to a deed of trust securing the loan of private funds to the owner for payment of project costs incurred by the owner under the project agreement.

(4) The municipality or a public corporation created by a municipality under RCW 35.21.660 or 35.21.730 may provide for the payment of the costs and expenses incurred by the municipality under a project agreement by revenue or general obligation bonds or notes payable in whole or in part from the repayment of project costs by owners and through enforcement of the assessments against the property benefited or from any other federal, public, or private funds that may be made available for such purposes.

NEW SECTION. Sec. 52. Sections 1 through 12 of this act constitute a new chapter in Title 82 RCW.

NEW SECTION. Sec. 53. Part headings as used in this act do not constitute any part of the law.

NEW SECTION. Sec. 54. 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.