2950 AMH GRAN H4818.3

2950 AMH GRAN H4818.3

HB 2950 - H AMD

By Representative Grant

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 82.08.150 and 1998 c 126 s 16 are each amended to read as follows:

(1) There is levied and shall be collected a tax upon each retail sale of spirits, or strong beer in the original package at the rate of fifteen percent of the selling price. The tax imposed in this subsection shall apply to all such sales including sales by the Washington state liquor stores and agencies, but excluding sales to spirits, beer, and wine restaurant licensees.

(2) There is levied and shall be collected a tax upon each sale of spirits, or strong beer in the original package at the rate of ten percent of the selling price on sales by Washington state liquor stores and agencies to spirits, beer, and wine restaurant licensees.

(3) There is levied and shall be collected an additional tax upon each retail sale of spirits in the original package at the rate of one dollar and seventy-two cents per liter. The additional tax imposed in this subsection shall apply to all such sales including sales by Washington state liquor stores and agencies, and including sales to spirits, beer, and wine restaurant licensees.

(4) An additional tax is imposed equal to fourteen percent multiplied by the taxes payable under subsections (1), (2), and (3) of this section.

(5) An additional tax is imposed upon each retail sale of spirits in the original package at the rate of seven cents per liter. The additional tax imposed in this subsection shall apply to all such sales including sales by Washington state liquor stores and agencies, and including sales to spirits, beer, and wine restaurant licensees. All revenues collected during any month from this additional tax shall be deposited in the violence reduction and drug enforcement account under RCW 69.50.520 by the twenty-fifth day of the following month.

(6)(a) An additional tax is imposed upon retail sale of spirits in the original package at the rate of one and seven-tenths percent of the selling price through June 30, 1995, two and six-tenths percent of the selling price for the period July 1, 1995, through June 30, 1997, and three and four-tenths of the selling price thereafter. This additional tax applies to all such sales including sales by Washington state liquor stores and agencies, but excluding sales to spirits, beer, and wine restaurant licensees.

(b) An additional tax is imposed upon retail sale of spirits in the original package at the rate of one and one-tenth percent of the selling price through June 30, 1995, one and seven-tenths percent of the selling price for the period July 1, 1995, through June 30, 1997, and two and three-tenths of the selling price thereafter. This additional tax applies to all such sales to spirits, beer, and wine restaurant licensees.

(c) An additional tax is imposed upon each retail sale of spirits in the original package at the rate of twenty cents per liter through June 30, 1995, thirty cents per liter for the period July 1, 1995, through June 30, 1997, and forty-one cents per liter thereafter. This additional tax applies to all such sales including sales by Washington state liquor stores and agencies, and including sales to spirits, beer, and wine restaurant licensees.

(d) All revenues collected during any month from additional taxes under this subsection shall be deposited in the health services account created under RCW 43.72.900 by the twenty-fifth day of the following month.

(7)(a) An additional tax is imposed upon each retail sale of spirits in the original package at the rate of two percent of the selling price, including sales by Washington state liquor stores and agencies, but excluding sales to spirits, beer, and wine restaurant licensees.

(b) An additional tax is imposed upon each retail sale of spirits in the original package at the rate of forty-one cents per liter. This additional tax applies to all such sales including sales by Washington state liquor stores and agencies, and including sales to spirits, beer, and wine restaurant licensees.

(c) All revenues collected during any month from additional taxes under this subsection (7) shall be deposited in the distressed local government assistance account under section 3 of this act by the twenty-fifth day of the following month.

(8) The tax imposed in RCW 82.08.020 shall not apply to sales of spirits or strong beer in the original package.

((~~(8)~~)) (9) The taxes imposed in this section shall be paid by the buyer to the seller, and each seller shall collect from the buyer the full amount of the tax payable in respect to each taxable sale under this section. The taxes required by this section to be collected by the seller shall be stated separately from the selling price and for purposes of determining the tax due from the buyer to the seller, it shall be conclusively presumed that the selling price quoted in any price list does not include the taxes imposed by this section.

((~~(9)~~)) (10) As used in this section, the terms, "spirits," "strong beer," and "package" shall have the meaning ascribed to them in chapter 66.04 RCW.

Sec. 2. RCW 66.24.210 and 2001 c 124 s 1 are each amended to read as follows:

(1) There is hereby imposed upon all wines except cider sold to wine distributors and the Washington state liquor control board, within the state a tax at the rate of twenty and one-fourth cents per liter. There is hereby imposed on all cider sold to wine distributors and the Washington state liquor control board within the state a tax at the rate of three and fifty-nine one-hundredths cents per liter: PROVIDED, HOWEVER, That wine sold or shipped in bulk from one winery to another winery shall not be subject to such tax. The tax provided for in this section shall be collected by direct payments based on wine purchased by wine distributors. Every person purchasing wine under the provisions of this section shall on or before the twentieth day of each month report to the board all purchases during the preceding calendar month in such manner and upon such forms as may be prescribed by the board, and with such report shall pay the tax due from the purchases covered by such report unless the same has previously been paid. Any such purchaser of wine whose applicable tax payment is not postmarked by the twentieth day following the month of purchase will be assessed a penalty at the rate of two percent a month or fraction thereof. The board may require that every such person shall execute to and file with the board a bond to be approved by the board, in such amount as the board may fix, securing the payment of the tax. If any such person fails to pay the tax when due, the board may forthwith suspend or cancel the license until all taxes are paid.

(2) An additional tax is imposed equal to the rate specified in RCW 82.02.030 multiplied by the tax payable under subsection (1) of this section. All revenues collected during any month from this additional tax shall be transferred to the state general fund by the twenty-fifth day of the following month.

(3) An additional tax is imposed on wines subject to tax under subsection (1) of this section, at the rate of one-fourth of one cent per liter for wine sold after June 30, 1987. After June 30, 1996, such additional tax does not apply to cider. An additional tax of five one-hundredths of one cent per liter is imposed on cider sold after June 30, 1996. All revenues collected under this subsection (3) shall be disbursed quarterly to the Washington wine commission for use in carrying out the purposes of chapter 15.88 RCW.

(4) An additional tax is imposed on all wine subject to tax under subsection (1) of this section. The additional tax is equal to twenty-three and forty-four one-hundredths cents per liter on fortified wine as defined in RCW 66.04.010(38) when bottled or packaged by the manufacturer, one cent per liter on all other wine except cider, and eighteen one-hundredths of one cent per liter on cider. All revenues collected during any month from this additional tax shall be deposited in the violence reduction and drug enforcement account under RCW 69.50.520 by the twenty-fifth day of the following month.

(5) An additional tax is imposed on fortified wine as defined in RCW 66.04.010(38) equal to twenty cents per liter when bottled or packaged by the manufacturer. All revenues collected during any month from this additional tax shall be deposited in the distressed local government assistance account under section 3 of this act by the twenty-fifth day of the following month.

(6)(a) An additional tax is imposed on all cider subject to tax under subsection (1) of this section. The additional tax is equal to two and four one-hundredths cents per liter of cider sold after June 30, 1996, and before July 1, 1997, and is equal to four and seven one-hundredths cents per liter of cider sold after June 30, 1997.

(b) All revenues collected from the additional tax imposed under this subsection ((~~(5)~~)) (6) shall be deposited in the health services account under RCW 43.72.900.

((~~(6)~~)) (7) For the purposes of this section, "cider" means table wine that contains not less than one-half of one percent of alcohol by volume and not more than seven percent of alcohol by volume and is made from the normal alcoholic fermentation of the juice of sound, ripe apples or pears. "Cider" includes, but is not limited to, flavored, sparkling, or carbonated cider and cider made from condensed apple or pear must.

NEW SECTION. Sec. 3. A new section is added to chapter 82.14 RCW to read as follows:

The distressed local government assistance account is created in the custody of the state treasurer. The account is subject to allotment procedures under chapter 43.88 RCW, but no appropriation is required for expenditures or distributions.

NEW SECTION. Sec. 4. (1) For the remainder of the 2001-2003 fiscal biennium, on the first day of each month the state treasurer shall distribute a portion of the funds deposited in the distressed local government assistance account to certain counties and to certain cities as provided in this section.

(2) The state treasurer shall distribute an amount from the account equal to fifty-six and two-tenths percent of the funds in the account to certain counties. The amount shall be allocated according to the percentages shown in the table in this subsection, not to exceed a specified maximum annual total. The maximum annual total that may be distributed to a jurisdiction is also indicated in the table in this subsection.

Monthly Maximum

Percentage Annual

County Allocation Distribution

Adams 6.04% 556,282

Asotin 6.53% 601,603

Columbia 8.86% 816,440

Douglas 6.94% 639,378

Ferry 4.53% 417,177

Garfield 8.98% 827,048

Lincoln 5.03% 463,126

Mason 12.55% 1,156,589

Okanogan 7.43% 684,757

Pacific 5.16% 475,333

Pend Oreille 4.94% 454,992

Stevens 9.00% 828,832

Wahkiakum 6.51% 599,584

Walla Walla 7.51% 692,201

Totals 100.00% 9,213,342

(3) The state treasurer shall distribute an amount from the account equal to forty-three and eight-tenths percent of the funds in the account to certain cities. The amount shall be allocated according to the percentages shown in the table in this subsection, not to exceed a specified maximum annual total. The maximum annual total that may be distributed to a jurisdiction is also specified in the table in this subsection.

Monthly Maximum

Percentage Annual

City Allocation Distribution

Airway Heights 0.24% $ 17,186

Albion 0.57% $ 40,990

Almira 0.03% $ 1,934

Asotin 0.25% $ 17,802

Benton City 0.48% $ 34,410

Black Diamond 0.55% $ 39,343

Bridgeport 1.62% $ 116,295

Brier 4.58% $ 328,719

Bucoda 0.45% $ 32,671

Carbonado 0.49% $ 35,086

Cashmere 0.26% $ 18,660

Cheney 0.68% $ 48,552

Chewelah 0.14% $ 10,308

Clyde Hill 0.29% $ 21,128

Colfax 0.16% $ 11,535

College Place 4.53% $ 325,301

Colton 0.12% $ 8,488

Conconully 0.12% $ 8,450

Concrete 0.06% $ 4,172

Connell 0.71% $ 50,960

Coulee Dam 0.13% $ 9,486

Covington 2.97% $ 213,431

Creston 0.06% $ 3,987

Cusick 0.02% $ 1,443

Darrington 0.13% $ 9,243

Davenport 0.14% $ 10,249

Dayton 0.20% $ 14,317

Des Moines 3.19% $ 228,943

Edgewood 7.76% $ 557,183

Electric City 0.75% $ 53,906

Elma 0.18% $ 13,080

Elmer City 0.26% $ 18,419

Endicott 0.25% $ 17,769

Entiat 0.25% $ 17,994

Everson 0.15% $ 10,429

Fairfield 0.04% $ 2,864

Farmington 0.05% $ 3,730

Fircrest 1.66% $ 119,296

Forks 0.24% $ 17,102

Garfield 0.39% $ 27,967

George 0.04% $ 2,984

Gold Bar 0.58% $ 41,562

Grandview 0.55% $ 39,598

Granger 0.74% $ 53,476

Hamilton 0.08% $ 5,387

Harrah 0.40% $ 29,008

Harrington 0.04% $ 2,797

Hartline 0.10% $ 7,039

Hatton 0.10% $ 7,523

Hoquiam 0.81% $ 57,911

Index 0.01% $ 646

Ione 0.04% $ 2,713

Kahlotus 0.17% $ 12,487

Kenmore 4.73% $ 339,647

Kettle Falls 0.14% $ 9,951

Kittitas 0.31% $ 22,459

Krupp 0.02% $ 1,373

Lacrosse 0.09% $ 6,222

Lake Forest Park 3.86% $ 277,407

Lake Stevens 0.31% $ 21,980

Lakewood 6.36% $ 456,476

Lamont 0.06% $ 4,629

Latah 0.05% $ 3,695

Lyman 0.07% $ 5,172

Mabton 1.23% $ 88,042

Malden 0.19% $ 13,339

Mansfield 0.23% $ 16,525

Maple Valley 0.77% $ 55,529

Marcus 0.12% $ 8,728

Mattawa 0.43% $ 30,914

McCleary 0.46% $ 32,688

Medical Lake 0.25% $ 17,660

Mesa 0.04% $ 2,601

Metaline 0.07% $ 4,769

Metaline Falls 0.03% $ 2,186

Mossyrock 0.04% $ 2,556

Mountlake Terrace 1.53% $ 109,857

Moxee 0.09% $ 6,248

Napavine 0.41% $ 29,668

Nespelem 0.15% $ 10,883

Newcastle 0.63% $ 44,920

Nooksack 0.25% $ 17,974

Normandy Park 2.10% $ 151,107

North Bonneville 0.07% $ 4,723

Northport 0.20% $ 14,513

Oakesdale 0.07% $ 4,798

Oakville 0.19% $ 13,412

Orting 0.41% $ 29,536

Palouse 0.24% $ 17,012

Pateros 0.06% $ 4,328

Pe Ell 0.47% $ 33,860

Pomeroy 0.11% $ 8,107

Prescott 0.03% $ 1,908

Pullman 1.26% $ 90,312

Rainier 0.48% $ 34,453

Raymond 0.18% $ 13,178

Reardan 0.16% $ 11,797

Republic 0.05% $ 3,875

Riverside 0.23% $ 16,809

Rock Island 0.16% $ 11,285

Rockford 0.04% $ 2,930

Rosalia 0.16% $ 11,344

Roslyn 0.28% $ 19,949

Royal City 0.29% $ 20,593

Ruston 0.22% $ 15,542

Sammamish 10.16% $ 729,541

Shoreline 3.19% $ 229,409

Soap Lake 0.44% $ 31,754

South Bend 0.16% $ 11,713

South Cle Elum 0.20% $ 14,473

South Prairie 0.04% $ 2,902

Sprague 0.05% $ 3,542

Springdale 0.02% $ 1,712

Starbuck 0.08% $ 5,530

Steilacoom 0.61% $ 44,149

Tekoa 0.11% $ 7,627

Tenino 0.15% $ 10,631

Tieton 0.32% $ 23,018

Toppenish 1.91% $ 137,011

Uniontown 0.09% $ 6,119

University Place 8.13% $ 583,869

Vader 0.35% $ 25,112

Waitsburg 0.35% $ 25,054

Wapato 0.99% $ 71,298

Warden 0.23% $ 16,314

Washtucna 0.18% $ 12,761

Waterville 0.31% $ 22,516

Waverly 0.09% $ 6,337

West Richland 2.11% $ 151,304

White Salmon 0.12% $ 8,302

Wilbur 0.05% $ 3,648

Wilkeson 0.04% $ 2,898

Wilson Creek 0.08% $ 5,685

Yacolt 0.08% $ 5,659

Zillah 0.22% $ 15,573

Statewide Total

for Cities 100.00% $ 7,180,889

(4)(a) By the first day of the fifty-eighth legislature, the Washington state association of counties shall submit proposed legislation to the governor and the fiscal committees of the legislature that provides a permanent distribution mechanism for fifty-six and two-tenths percent of the moneys received in the distressed local government assistance account.

(b) By the first day of the fifty-eighth legislature, the association of Washington cities shall submit proposed legislation to the governor and the fiscal committees of the legislature that provides a permanent distribution mechanism for forty-three and eight-tenths percent of the moneys received in the distressed local government assistance account.

NEW SECTION. Sec. 5. A new section is added to chapter 36.01 RCW to read as follows:

(1) A county legislative authority may impose a tax on the privilege of conducting any of the following businesses within the territorial boundaries of the county.

(a) An electrical energy business;

(b) A natural or manufactured gas distribution business;

(d) A sewer business;

(e) A water distribution business;

(f) A solid waste collection business; and

(g) A telephone business.

(2)(a) The rate of the tax shall not exceed two and one-half percent in a county with a population of one million or more. The rate of the tax shall not exceed one percent in other counties. Except as provided in (b) of this subsection, the tax shall be imposed on the gross revenues derived by businesses from sales made within the county, exclusive of sales for resale. The rate imposed by a county on each business must be uniform as to all businesses in that class.

(b) A county may not impose a tax on the gross revenues derived by a telephone business which represents charges to another telecommunications company, as defined in RCW 80.04.010, for connecting fees, switching charges, or carrier access charges relating to intrastate toll telephone services, or for access to, or charges for, interstate services, or charges for network telephone service that is purchased for the purpose of resale. By a vote of the people the county may include the gross revenues derived from sales for resale made by any business except for a telephone business in the gross revenues subject to tax.

(c) A county legislative authority may submit an authorizing proposition to the county voters before imposing a tax under this section. If the county legislative authority does not submit an authorizing proposition before imposing a tax under this section, the tax is subject to repeal by referendum, using the procedures provided in RCW 82.14.036. The referendum procedure provided in RCW 82.14.036 is the exclusive method for subjecting a tax ordinance or resolution under this section to a referendum vote after enactment.

(3) In addition to the provisions for levying and collecting a tax, the ordinance must include, but is not limited to, the following provisions:

(a) Exemptions, deductions, and credits;

(b) Place of sale; and

(4)(a) In a county with a population of one million or more, money received under this section shall be allocated as follows:

(i) Thirty percent shall be used by the county.

(ii) Seventy percent shall be shared between the county and the incorporated cities in the county as follows: (A) Seventy-five percent shall be retained by the county, and (B) twenty-five percent shall be distributed to incorporated cities in the county under an interlocal agreement between the cities and the county that includes a formula that is determined by the cities in the county in consultation with the association of Washington cities.

(b) In a county with a population of less than one million, money received under this section shall be shared between the county and the cities under one of the following options:

(i)(A) Seventy-five percent shall be retained by the county, and (B) twenty-five percent shall be distributed to incorporated cities in the county under an interlocal agreement between the cities and the county that includes a formula that is determined by the cities in the county in consultation with the association of Washington cities; or

(ii) An allocation determined by formula pursuant to an interlocal agreement between the county and a group of incorporated cities that represent at least fifty percent of the total population in the county.

(5) In a county with a population of one million or more, money received under this section shall be used exclusively for any of the following purposes:

(a) Providing for the regional justice system, including but not limited to court operations, police protection, relief for overcrowded jails, drug and mental health treatment, preventative juvenile justice programs, domestic violence services, community and legal advocates, hearings and ancillary services related to at-risk youth, truancy, children in need of services, and other authorized activities of the county; or

(b) Facilitating annexation by cities of urban unincorporated areas. The county legislative authority may designate up to ten percent of the money collected under this section to be used for infrastructure improvements for areas within the county's urban growth areas, as defined in RCW 36.70A.110, that have been annexed by a city after March 31, 2002, pursuant to agreement between the county and the city.

(6) Money collected under this section may be transferred by the recipient county to another unit of local government pursuant to a government service agreement as provided in RCW 36.115.040 and 36.115.050.

(7) The tax authorized by this section is in addition to other taxes and does not prevent any city or town within the taxing county, when authorized by law, from imposing within its corporate limits a tax of the same or similar kind.

(8) For the purposes of this section, unless the context clearly requires otherwise, the following definitions apply.

(a) "Electrical energy business" means the business of providing electrical energy to end-use retail customers, and includes the commodity, delivery, transportation, metering, billing, and other ancillary or related services.

(b) "Natural or manufactured gas distribution business" means the business of providing natural or manufactured gas to end-use retail customers, and includes the commodity, delivery, transportation, metering, billing, and other ancillary or related services.

(c) "Steam energy business" means the business of providing steam to customers, and includes the commodity, delivery, transportation, metering, billing, and other ancillary or related services.

(d) "Sewer business" means the business of providing sewage collection and disposal services, or storm or surface water drainage services to end-use retail customers.

(e) "Water distribution business" means the business of providing water through a network of distribution pipelines.

(f) "Solid waste collection business" means the business of providing solid waste collection or disposal services, but not including recycling, yard waste collection and composting, and/or waste reduction services. "Solid waste collection business" does not include a solid waste collection business operating under a contract with a city or town in effect January 1, 2002, and for the duration of that contract.

(g) "Telephone business" means the business of providing network telephone service as that phrase is defined in RCW 82.04.065 and includes cooperative or farmer line telephone companies or associations operating an exchange.

NEW SECTION. Sec. 6. A new section is added to chapter 82.14 RCW to read as follows:

(1) A county legislative authority in a county with a population of less than one million may impose a sales and use tax in accordance with the terms of this chapter. The rate of tax under this subsection shall not exceed two-tenths 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. A county legislative authority may submit an authorizing proposition to the county voters before imposing a tax under this section. If the county legislative authority does not submit an authorizing proposition before imposing a tax under this section, the tax is subject to repeal by referendum, using the procedures provided in RCW 82.14.036. The referendum procedure provided in RCW 82.14.036 is the exclusive method for subjecting a tax ordinance or resolution under this section to a referendum vote after enactment.

(2) 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 county.

(3) Money received under this section shall be shared between the county and the cities under one of the following options:

(a)(i) Seventy-five percent shall be retained by the county, and (ii) twenty-five percent shall be distributed to incorporated cities in the county under an interlocal agreement between the cities and the county that includes a formula that is determined by the cities in the county in consultation with the association of Washington cities; or

(b) An allocation determined by formula pursuant to an interlocal agreement between the county and a group of incorporated cities that represent at least fifty percent of the total population in the county.

Sec. 7. RCW 35.92.010 and 1991 c 347 s 18 are each amended to read as follows:

A city or town may construct, condemn and purchase, purchase, acquire, add to, alter, maintain and operate waterworks, including fire hydrants as an integral utility service incorporated within general rates, within or without its limits, for the purpose of furnishing the city and its inhabitants, and any other persons, with an ample supply of water for all purposes, public and private, including water power and other power derived therefrom, with full power to regulate and control the use, distribution, and price thereof: PROVIDED, That the rates charged must be uniform for the same class of customers or service. Such waterworks may include facilities for the generation of electricity as a byproduct and such electricity may be used by the city or town or sold to an entity authorized by law to distribute electricity. Such electricity is a byproduct when the electrical generation is subordinate to the primary purpose of water supply.

In classifying customers served or service furnished, the city or town governing body may in its discretion consider any or all of the following factors: The difference in cost of service to the various customers; location of the various customers within and without the city or town; the difference in cost of maintenance, operation, repair, and replacement of the various parts of the system; the different character of the service furnished various customers; the quantity and quality of the water furnished; the time of its use; the achievement of water conservation goals and the discouragement of wasteful water use practices; capital contributions made to the system including, but not limited to, assessments; and any other matters which present a reasonable difference as a ground for distinction. No rate shall be charged that is less than the cost of the water and service to the class of customers served.

For such purposes any city or town may take, condemn and purchase, purchase, acquire, and retain water from any public or navigable lake or watercourse, surface or ground, and, by means of aqueducts or pipe lines, conduct it to the city or town; and it may erect and build dams or other works across or at the outlet of any lake or watercourse in this state for the purpose of storing and retaining water therein up to and above high water mark; and for all the purposes of erecting such aqueducts, pipe lines, dams, or waterworks or other necessary structures in storing and retaining water, or for any of the purposes provided for by this chapter, the city or town may occupy and use the beds and shores up to the high water mark of any such watercourse or lake, and acquire the right by purchase, or by condemnation and purchase, or otherwise, to any water, water rights, easements or privileges named in this chapter, or necessary for any of said purposes, and the city or town may acquire by purchase or condemnation and purchase any properties or privileges necessary to be had to protect its water supply from pollution. Should private property be necessary for any such purposes or for storing water above high water mark, the city or town may condemn and purchase, or purchase and acquire such private property. For the purposes of waterworks which include facilities for the generation of electricity as a byproduct, nothing in this section may be construed to authorize a city or town that does not own or operate an electric utility system to condemn electric generating, transmission, or distribution rights or facilities of entities authorized by law to distribute electricity, or to acquire such rights or facilities without the consent of the owner.

Sec. 8. RCW 35.92.050 and 1985 c 445 s 9 are each amended to read as follows:

A city or town may also construct, condemn and purchase, purchase, acquire, add to, alter, maintain and operate works, plants, facilities for the purpose of furnishing the city or town and its inhabitants, and any other persons, with gas, electricity, and other means of power and facilities for lighting, including streetlights as an integral utility service incorporated within general rates, heating, fuel, and power purposes, public and private, with full authority to regulate and control the use, distribution, and price thereof, together with the right to handle and sell or lease, any meters, lamps, motors, transformers, and equipment or accessories of any kind, necessary and convenient for the use, distribution, and sale thereof; authorize the construction of such plant or plants by others for the same purpose, and purchase gas, electricity, or power from either within or without the city or town for its own use and for the purpose of selling to its inhabitants and to other persons doing business within the city or town and regulate and control the use and price thereof.

NEW SECTION. Sec. 9. A new section is added to Title 36 RCW to read as follows:

(1) Counties may create by resolution a transitional benefit district for the purpose of management, control, improvement, and maintenance of infrastructure and assets, including water and sewer systems, but excluding streets and highways, of cities that are making the transition from incorporated to unincorporated status subject to the terms in this section. No transitional benefit district may be formed until after the terms of disincorporation under chapter 35.07 RCW have been met.

(2) A transitional benefit 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.

(3) A transitional benefit district shall be governed by the legislative authority of the county in which the district is located. A transitional benefit 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, to sue and be sued, and to issue bonds. All the powers and authorities granted to cities pursuant to Title 35 RCW, Title 35A RCW, and all the powers and authorities granted to counties pursuant to this title necessary to meet its purpose are granted to transitional benefit districts.

(4) A transitional benefit district may acquire and transfer real and personal property by lease, sublease, purchase, or sale.

(5) A transitional benefit district may receive the assets of a city or a former portion of a city, unless there are remaining debts and obligations. If such debts and obligations exist, a district may not receive the assets until the completion of the disincorporation process in chapter 35.07 RCW.

(6) A transitional benefit district is authorized to levy taxes on all taxable property only when the debts and obligations of the city have been satisfied under the disincorporation process in chapter 35.07 RCW.

(7) The powers and authorities granted to a transitional benefit district under this section shall terminate twenty-five years from the date of the formation of the transitional benefit district.

NEW SECTION. Sec. 10. The following acts or parts of acts are each repealed:

(1) RCW 81.100.030 (Employer tax) and 1991 c 363 s 153 & 1990 c 43 s 14; and

(2) RCW 82.80.010 (Motor vehicle and special fuel tax) and 1998 c 176 s 86, 1991 c 339 s 12, & 1990 c 42 s 201.

NEW SECTION. Sec. 11. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 12. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect May 1, 2002."

Correct the title.