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

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_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

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_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.

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_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.

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_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.

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_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,

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_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.

 

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