_______________________________________________
SUBSTITUTE
HOUSE BILL 2592
_______________________________________________
Passed
Legislature - 2002 Regular Session
State
of Washington 57th Legislature 2002 Regular Session
By
Read
first time 02/05/2002. Referred to Committee on .
Modifying community revitalization financing.
AN
ACT Relating to community revitalization financing under chapter 39.89 RCW;
amending RCW 39.89.030 and 39.89.040; adding a new section to chapter 39.89
RCW; and repealing RCW 39.89.901.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
39.89.030 and 2001 c 212 s 3 are each amended to read as follows:
A
local government may finance public improvements using community revitalization
financing subject to the following conditions:
(1)
The local government adopts an ordinance designating an increment area within
its boundaries and specifying the public improvements proposed to be financed
in whole or in part with the use of community revitalization financing;
(2)
The public improvements proposed to be financed in whole or in part using
community revitalization financing are expected to encourage private
development within the increment area and to increase the fair market value of
real property within the increment area;
(3)
Private development that is anticipated to occur within the increment area, as
a result of the public improvements, will be consistent with the countywide
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)
Taxing districts, in the aggregate, that levy at least seventy-five percent of
the regular property tax within which the increment area is located approves
the community revitalization financing of the project under RCW 39.89.050(1);
and
(5)
In an increment area that includes any portion of a fire protection district as
defined in Title 52 RCW, the fire protection district must ((approve their
participation)) agree to participate in the community revitalization
financing of the project under chapter 212, Laws of 2001, for the project to
proceed. Approval by the fire protection district shall be considered as
part of the required participation by taxing districts under subsection (4) of
this section.
Sec.
2. RCW
39.89.040 and 2001 c 212 s 4 are each amended to read as follows:
(1)
Public improvements that are financed with community revitalization 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 community revitalization financing.
(2)
Public improvements that are constructed by a private developer must meet all
applicable state and local laws.
NEW
SECTION. Sec. 3. A
new section is added to chapter 39.89 RCW to read as follows:
(1)
A local government may issue revenue bonds to fund revenue‑generating
public improvements, or portions of public improvements, that are located
within an increment area and that it is authorized to provide or operate.
Whenever revenue bonds are to be issued, the legislative authority of the local
government shall create or have created a special fund or funds from which,
along with any reserves created pursuant to RCW 39.44.140, the principal and
interest on these revenue bonds shall exclusively be payable. The legislative
authority of the local government may obligate the local government to set
aside and pay into the special fund or funds a fixed proportion or a fixed
amount of the revenues from the public improvements that are funded by the
revenue bonds. This amount or proportion is a lien and charge against these
revenues, subject only to operating and maintenance expenses. The local
government shall have due regard for the cost of operation and maintenance of
the public improvements that are funded by the revenue bonds, and shall not set
aside into the special fund or funds a greater amount or proportion of the
revenues that in its judgment will be available over and above the cost of
maintenance and operation and the amount or proportion, if any, of the revenue
previously pledged. The local government may also provide that revenue bonds
payable out of the same source or sources of revenue may later be issued on a
parity with any revenue bonds being issued and sold.
(2)
Revenue bonds issued pursuant to this section are not an indebtedness of the
local government issuing the bonds, and the interest and principal on the bonds
shall only be payable from the revenues lawfully pledged to meet the principal
and interest requirements and any reserves created pursuant to RCW 39.44.140.
The owner or bearer of a revenue bond or any interest coupon issued pursuant to
this section shall not have any claim against the local government arising from
the bond or coupon except for payment from the revenues lawfully pledged to
meet the principal and interest requirements and any reserves created pursuant
to RCW 39.44.140. The substance of the limitations included in this subsection
shall be plainly printed, written, or engraved on each bond issued pursuant to
this section.
(3)
Revenue bonds with a maturity in excess of thirty years shall not be issued.
The legislative authority of the local government shall by resolution determine
for each revenue bond issue the amount, date, form, terms, conditions,
denominations, maximum fixed or variable interest rate or rates, maturity or
maturities, redemption rights, registration privileges, manner of execution,
manner of sale, callable provisions, if any, and covenants including the
refunding of existing revenue bonds. Facsimile signatures may be used on the
bonds and any coupons. Refunding revenue bonds may be issued in the same
manner as revenue bonds are issued.
NEW
SECTION. Sec. 4. RCW
39.89.901 (Expiration of chapter) and 2001 c 212 s 29 are each
repealed.
