S 0506

S‑0506.1 _____________________________________________

SENATE BILL 5514

_____________________________________________

State of Washington 57th Legislature 2001 Regular Session

By Senators Spanel, Carlson, Hale, Gardner, Rasmussen, Winsley, Regala, Costa and Fraser

Read first time 01/25/2001. Referred to Committee on State & Local Government.

_1 AN ACT Relating to public facilities districts; amending RCW

_2 35.57.010, 35.57.020, and 82.14.390; and adding a new section to

_3 chapter 36.100 RCW.

_4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

_5 Sec. 1. RCW 35.57.010 and 1999 c 165 s 1 are each amended to read

_6 as follows:

_7 (1) The legislative authority of any town or city located in a

_8 county with a population of less than one million may create a

_9 public facilities district. The legislative authorities of any

10 contiguous group of towns or cities located in a county or

11 counties each with a population of less than one million may enter

12 an agreement under chapter 39.34 RCW for the creation and joint

13 operation of a public facilities district. The legislative

14 authority of any town or city, or any contiguous group of towns or

15 cities, located in a county with a population of less than one

16 million and the legislative authority of the county or counties in

17 which the towns or cities are located may enter into an agreement

18 under chapter 39.34 RCW for the creation and joint operation of a

p. 1 SB 5514

_1 public facilities district.

_2 (2) A public facilities district shall be coextensive with the

_3 boundaries of the city or town or contiguous group of cities or

_4 towns that created the district. A public facilities district

_5 created by an agreement between a town or city, or a contiguous

_6 group of towns or cities, and the county in which they are located

_7 shall be coextensive with the boundaries of the towns or cities,

_8 and the boundaries of the county or counties as to the

_9 unincorporated areas of the county or counties. The boundaries

10 shall not include incorporated towns or cities that are not

11 parties to the agreement for the creation and joint operation of

12 the district.

13 (3)(a) A public facilities district created by a single city or

14 town shall be governed by a board of directors consisting of five

15 members selected as follows: (i) Two members appointed by the

16 legislative authority of the city or town; and (ii) three members

17 appointed by legislative authority based on recommendations from

18 local organizations. The members appointed under (a)(i) of this

19 subsection, shall not be members of the legislative authority of

20 the city or town. The members appointed under (a)(ii) of this

21 subsection, shall be based on recommendations received from local

22 organizations that may include, but are not limited to the local

23 chamber of commerce, local economic development council, and local

24 labor council. The members shall serve four-year terms. Of the

25 initial members, one must be appointed for a one-year term, one

26 must be appointed for a two-year term, one must be appointed for a

27 three-year term, and the remainder must be appointed for four-year

28 terms.

29 (b) A public facilities district created by ((~~[a]~~)) a

30 contiguous group of cities and towns shall be governed by a board

31 of directors consisting of seven members selected as follows: (i)

32 Three members appointed by the legislative authorities of the

33 cities and towns; and (ii) four members appointed by the

34 legislative authority based on recommendations from local

35 organizations. The members appointed under (b)(i) of this

36 subsection shall not be members of the legislative authorities of

37 the cities and towns. The members appointed under (b)(ii) of this

38 subsection, shall be based on recommendations received from local

SB 5514 p. 2

_1 organizations that include, but are not limited to the local

_2 chamber of commerce, local economic development council, local

_3 labor council, and a neighborhood organization that is directly

_4 affected by the location of the regional center in their area. The

_5 members of the board of directors shall be appointed in accordance

_6 with the terms of the agreement under chapter 39.34 RCW for the

_7 joint operation of the district and shall serve four-year terms. Of

_8 the initial members, one must be appointed for a one- year term,

_9 one must be appointed for a two-year term, one must be appointed

10 for a three-year term, and the remainder must be appointed for

11 four-year terms.

12 (c) A public facilities district created by a town or city, or

13 a contiguous group of towns or cities, and the county or counties

14 in which they are located shall be governed by a board of

15 directors consisting of seven members selected as follows: (i)

16 Three members appointed by the legislative authorities of the

17 cities, towns, and county; and (ii) four members appointed by the

18 legislative authority based on recommendations from local

19 organizations. The members appointed under (c)(i) of this

20 subsection shall not be members of the legislative authorities of

21 the cities, towns, or county. The members appointed under (c)(ii)

22 of this subsection shall be based on recommendations received from

23 local organizations that include, but are not limited to, the

24 local chamber of commerce, local economic development council,

25 local labor council, and a neighborhood organization that is

26 directly affected by the location of the regional center in their

27 area. The members of the board of directors shall be appointed in

28 accordance with the terms of the agreement under chapter 39.34 RCW

29 for the joint operation of the district and shall serve four-year

30 terms. Of the initial members, one must be appointed for a one-year

31 term, one must be appointed for a two-year term, one must be

32 appointed for a three-year term, and the remainder must be

33 appointed for four-year terms.

34 (4) A public facilities district is a municipal corporation, an

35 independent taxing "authority" within the meaning of Article VII,

36 section 1 of the state Constitution, and a "taxing district"

37 within the meaning of Article VII, section 2 of the state

38 Constitution.

p. 3 SB 5514

_1 (5) A public facilities district shall constitute a body

_2 corporate and shall possess all the usual powers of a corporation

_3 for public purposes as well as all other powers that may now or

_4 hereafter be specifically conferred by statute, including, but not

_5 limited to, the authority to hire employees, staff, and services,

_6 to enter into contracts, and to sue and be sued.

_7 (6) A public facilities district may acquire and transfer real

_8 and personal property by lease, sublease, purchase, or sale. No

_9 direct or collateral attack on any ((~~metropolitan~~)) public

10 facilities district purported to be authorized or created in

11 conformance with this chapter may be commenced more than thirty

12 days after creation by the city and/or county legislative

13 authority.

14 Sec. 2. RCW 35.57.020 and 1999 c 165 s 2 are each amended to read

15 as follows:

16 (1) A public facilities district is authorized to acquire,

17 construct, own, remodel, maintain, equip, reequip, repair,

18 finance, and operate one or more regional centers. For purposes of

19 this chapter, "regional center" means a convention, conference, or

20 special events center, or any combination of facilities, and

21 related parking facilities, serving a regional population

22 constructed, improved, or rehabilitated after July 25, 1999, at a

23 cost of at least ten million dollars, including debt service. A

24 "special events center" is a facility or combination of

25 facilities, the primary purpose of which is the presentation of

26 events, activities, performances, or exhibits for the enjoyment of

27 the general public. "Regional center" also includes an existing

28 convention, conference, or special events center, and related

29 parking facilities, serving a regional population, that is

30 improved or rehabilitated after July 25, 1999, where the costs of

31 improvement or rehabilitation are at least ten million dollars,

32 including debt service. A regional center is conclusively presumed

33 to serve a regional population if state and local government

34 investment in the construction, improvement, or rehabilitation of

35 the regional center is equal to or greater than ten million

36 dollars.

SB 5514 p. 4

_1 (2) A public facilities district may impose charges and fees

_2 for the use of its facilities, and may accept and expend or use

_3 gifts, grants, and donations for the purpose of a regional center.

_4 (3) A public facilities district may impose charges, fees, and

_5 taxes authorized in RCW 35.57.040, and use revenues derived

_6 therefrom for the purpose of paying principal and interest

_7 payments on bonds issued by the public facilities district to

_8 construct a regional center.

_9 (4) Notwithstanding the establishment of a career, civil, or

10 merit service system, a public facilities district may contract

11 with a public or private entity for the operation or management of

12 its public facilities.

13 (5) A public facilities district is authorized to use the

14 supplemental alternative public works contracting procedures set

15 forth in chapter 39.10 RCW in connection with the design,

16 construction, reconstruction, remodel, or alteration of any

17 regional center.

18 Sec. 3. RCW 82.14.390 and 1999 c 165 s 13 are each amended to read

19 as follows:

20 (1) Except as provided in subsection (6) of this section, the

21 governing body of a public facilities district created under

22 chapter 35.57 or 36.100 RCW that commences construction of a new

23 regional center, or improvement or rehabilitation of an existing

24 new regional center, before January 1, ((~~2003~~)) 2004, may impose a

25 sales and use tax in accordance with the terms of this chapter. The

26 tax is in addition to other taxes authorized by law and shall be

27 collected from those persons who are taxable by the state under

28 chapters 82.08 and 82.12 RCW upon the occurrence of any taxable

29 event within the public facilities district. The rate of tax shall

30 not exceed 0.033 percent of the selling price in the case of a

31 sales tax or value of the article used in the case of a use tax.

32 (2) The tax imposed under subsection (1) of this section shall

33 be deducted from the amount of tax otherwise required to be

34 collected or paid over to the department of revenue under chapter

35 82.08 or 82.12 RCW. The department of revenue shall perform the

36 collection of such taxes on behalf of the county at no cost to the

37 public facilities district.

p. 5 SB 5514

_1 (3) No tax may be collected under this section before August 1,

_2 2000. The tax imposed in this section shall expire when the bonds

_3 issued for the construction of the regional center and related

_4 parking facilities are retired, but not more than twenty-five

_5 years after the tax is first collected.

_6 (4) Moneys collected under this section shall only be used for

_7 the purposes set forth in RCW 35.57.020 and must be matched with

_8 an amount from other public or private sources equal to thirty-

_9 three percent of the amount collected under this section, provided

10 that amounts generated from nonvoter approved taxes authorized

11 under chapter 35.57 RCW or nonvoter approved taxes authorized

12 under chapter 36.100 RCW shall not constitute a public or private

13 source. For the purpose of this section, public or private sources

14 includes, but is not limited to cash or in-kind contributions used

15 in all phases of the development or improvement of the regional

16 center, land that is donated and used for the siting of the

17 regional center, cash or in-kind contributions from public or

18 private foundations, or amounts attributed to private sector

19 partners as part of a public and private partnership agreement

20 negotiated by the public facilities district.

21 (5) The combined total tax levied under this section shall not

22 be greater than 0.033 percent. If both a public facilities district

23 created under chapter 35.57 RCW and a public facilities district

24 created under chapter 36.100 RCW impose a tax under this section,

25 the tax imposed by a public facilities district created under

26 chapter 35.57 RCW shall be credited against the tax imposed by a

27 public facilities district created under chapter 36.100 RCW.

28 (6) A public facilities district created under chapter 36.100

29 RCW is not eligible to impose the tax under this section if the

30 legislative authority of the county where the public facilities

31 district is located has imposed a sales and use tax under RCW

32 82.14.0485 or 82.14.0494.

33 NEW SECTION. Sec. 4. A new section is added to chapter 36.100

34 RCW to read as follows:

35 (1) A public facilities district may apply for deferral of

36 taxes on site preparation, construction of buildings or other

37 structures, and acquisition of related machinery and equipment,

SB 5514 p. 6

_1 for a regional center. Application shall be made to the department

_2 of revenue in a form and manner prescribed by the department of

_3 revenue. The application shall contain information regarding the

_4 location of the regional center, estimated or actual costs, time

_5 schedules for completion and operation, and other information

_6 required by the department of revenue. The department of revenue

_7 shall approve the application within sixty days if it meets the

_8 requirements of this section.

_9 (2) The department of revenue shall issue a sales and use tax

10 deferral certificate for state and local sales and use taxes due

11 under chapters 82.08, 82.12, and 82.14 RCW on the public

12 facility. The use of the certificate shall be governed by rules

13 established by the department of revenue.

14 (3) The public facilities district shall begin paying the

15 deferred taxes in the fifth year after the date certified by the

16 department of revenue as the date on which the regional center is

17 operationally complete. The first payment is due on December 31st

18 of the fifth calendar year after such certified date, with

19 subsequent annual payments due on December 31st of the following

20 nine years. Each payment shall equal ten percent of the deferred

21 tax.

22 (4) The department of revenue may authorize an accelerated

23 repayment schedule upon request of the public facilities district.

24 (5) Interest shall not be charged on any taxes deferred under

25 this section for the period of deferral, although all other

26 penalties and interest applicable to delinquent excise taxes may

27 be assessed and imposed for delinquent payments under this

28 section. The debt for deferred taxes is not extinguished by

29 insolvency or other failure of the public facilities district.

30 (6) Applications and any other information received by the

31 department of revenue under this section are not confidential and

32 are subject to disclosure. Chapter 82.32 RCW applies to the

33 administration of this section.

‑‑‑ END ‑‑‑

p. 7 SB 5514