AN
ACT Relating to public facilities districts; amending RCW 35.57.010, 35.57.020,
82.14.390, and 35.21.280; and adding a new section to chapter 35.57 RCW.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
35.57.010 and 1999 c 165 s 1 are each amended to read as follows:
(1)(a)
The legislative authority of any town or city located in a county with a
population of less than one million may create a public facilities district.
(b)
The legislative authorities of any contiguous group of towns or cities located
in a county or counties each with a population of less than one million may
enter an agreement under chapter 39.34 RCW for the creation and joint operation
of a public facilities district.
(c)
The legislative authority of any town or city, or any contiguous group of towns
or cities, located in a county with a population of less than one million and
the legislative authority of a contiguous county, or the legislative authority
of the county or counties in which the towns or cities are located, may enter
into an agreement under chapter 39.34 RCW for the creation and joint operation
of a public facilities district.
(2)(a)
A public facilities district shall be coextensive with the boundaries of the
city or town or contiguous group of cities or towns that created the district.
(b)
A public facilities district created by an agreement between a town or city, or
a contiguous group of towns or cities, and a contiguous county or the county in
which they are located, shall be coextensive with the boundaries of the towns
or cities, and the boundaries of the county or counties as to the
unincorporated areas of the county or counties. The boundaries shall not
include incorporated towns or cities that are not parties to the agreement for
the creation and joint operation of the district.
(3)(a)
A public facilities district created by a single city or town shall be governed
by a board of directors consisting of five members selected as follows: (i)
Two members appointed by the legislative authority of the city or town; and
(ii) three members appointed by legislative authority based on recommendations
from local organizations. The members appointed under (a)(i) of this
subsection, shall not be members of the legislative authority of the city or
town. The members appointed under (a)(ii) of this subsection, shall be based
on recommendations received from local organizations that may include, but are
not limited to the local chamber of commerce, local economic development
council, and local labor council. The members shall serve four-year terms. Of
the initial members, one must be appointed for a one-year term, one must be
appointed for a two-year term, one must be appointed for a three-year term, and
the remainder must be appointed for four-year terms.
(b)
A public facilities district created by (([a])) a contiguous
group of cities and towns shall be governed by a board of directors consisting
of seven members selected as follows: (i) Three members appointed by the legislative
authorities of the cities and towns; and (ii) four members appointed by the
legislative authority based on recommendations from local organizations. The
members appointed under (b)(i) of this subsection shall not be members of the
legislative authorities of the cities and towns. The members appointed under
(b)(ii) of this subsection, shall be based on recommendations received from
local organizations that include, but are not limited to the local chamber of
commerce, local economic development council, local labor council, and a
neighborhood organization that is directly affected by the location of the
regional center in their area. The members of the board of directors shall be
appointed in accordance with the terms of the agreement under chapter 39.34 RCW
for the joint operation of the district and shall serve four-year terms. Of
the initial members, one must be appointed for a one-year term, one must be
appointed for a two-year term, one must be appointed for a three-year term, and
the remainder must be appointed for four-year terms.
(c)
A public facilities district created by a town or city, or a contiguous group
of towns or cities, and a contiguous county or the county or counties in which
they are located, shall be governed by a board of directors consisting of seven
members selected as follows: (i) Three members appointed by the legislative
authorities of the cities, towns, and county; and (ii) four members appointed
by the legislative authority based on recommendations from local organizations.
The members appointed under (c)(i) of this subsection shall not be members of
the legislative authorities of the cities, towns, or county. The members
appointed under (c)(ii) of this subsection shall be based on recommendations
received from local organizations that include, but are not limited to, the
local chamber of commerce, the local economic development council, the local
labor council, and a neighborhood organization that is directly affected by the
location of the regional center in their area. The members of the board of
directors shall be appointed in accordance with the terms of the agreement
under chapter 39.34 RCW for the joint operation of the district and shall serve
four-year terms. Of the initial members, one must be appointed for a one-year
term, one must be appointed for a two‑year term, one must be appointed
for a three-year term, and the remainder must be appointed for four-year terms.
(4)
A public facilities 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.
(5)
A public facilities 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, and to sue and be sued.
(6)
A public facilities district may acquire and transfer real and personal
property by lease, sublease, purchase, or sale. No direct or collateral attack
on any ((metropolitan [public])) public facilities district
purported to be authorized or created in conformance with this chapter may be
commenced more than thirty days after creation by the city and/or county
legislative authority.
Sec.
2. RCW
35.57.020 and 1999 c 165 s 2 are each amended to read as follows:
(1)
A public facilities district is authorized to acquire, construct, own, remodel,
maintain, equip, reequip, repair, finance, and operate one or more regional
centers. For purposes of this chapter, "regional center" means a
convention, conference, or special events center, or any combination of
facilities, and related parking facilities, serving a regional population
constructed, improved, or rehabilitated after July 25, 1999, at a cost of at
least ten million dollars, including debt service. "Regional center"
also includes an existing convention, conference, or special events center, and
related parking facilities, serving a regional population, that is improved or
rehabilitated after July 25, 1999, where the costs of improvement or rehabilitation
are at least ten million dollars, including debt service. A "special
events center" is a facility, available to the public, used for community
events, sporting events, trade shows, and artistic, musical, theatrical, or
other cultural exhibitions, presentations, or performances. A regional
center is conclusively presumed to serve a regional population if state and
local government investment in the construction, improvement, or rehabilitation
of the regional center is equal to or greater than ten million dollars.
(2)
A public facilities district may impose charges and fees for the use of its
facilities, and may accept and expend or use gifts, grants, and donations for
the purpose of a regional center.
(3)
A public facilities district may impose charges, fees, and taxes authorized in
RCW 35.57.040, and use revenues derived therefrom for the purpose of paying
principal and interest payments on bonds issued by the public facilities
district to construct a regional center.
(4)
Notwithstanding the establishment of a career, civil, or merit service system,
a public facilities district may contract with a public or private entity for
the operation or management of its public facilities.
(5)
A public facilities district is authorized to use the supplemental alternative
public works contracting procedures set forth in chapter 39.10 RCW in
connection with the design, construction, reconstruction, remodel, or
alteration of any regional center.
*NEW
SECTION. Sec. 3.
A new section is added to chapter 35.57 RCW to read as follows:
(1)
A public facilities district that has constructed a regional center after the
effective date of this section is eligible for a refund of the taxes paid under
chapters 82.08, 82.12, and 82.14 RCW on site preparation and construction of
buildings or other structures, and the acquisition of related machinery and
equipment, for the regional center, including labor and services rendered in
the planning, installation, and construction of the center and installation of
machinery and equipment. A public facilities district is not eligible for the
refund under this section unless an economic benefits analysis has been
completed for the regional center project.
(2)(a)(i)
The public facilities district shall notify the department in writing that the
regional center is operationally complete. The regional center is deemed
operationally complete if it has an occupancy permit and it is generating
revenues from use of the center. The taxes shall be refunded to the public
facilities district in four equal annual payments. Subject to (a)(ii) of this
subsection, the first payment shall occur no later than one hundred twenty days
after the department verifies that the regional center is operationally
complete. The three subsequent annual payments shall occur twelve months
later, respectively.
(ii)
In no event may any taxes be refunded before January 1, 2006.
(b)
The public facilities district shall provide the department of revenue with
invoice details and other information as required by the department in order to
determine the amount of tax to be refunded. The refund includes any interest
on taxes. The department of revenue shall be compensated for the administration
of this section out of the interest amount, such compensation not to exceed one
percent of the interest. The refund amounts shall be distributed from the
funds and accounts into which the taxes were deposited. The department of
revenue shall notify the state treasurer of the amounts to be distributed from
each specific state and local fund or account.
(3)
Applications and any other information received by the department of revenue
under this section are not confidential and are subject to disclosure. Chapter
82.32 RCW applies to the administration of this section.
*Sec. 3 was vetoed. See message at end of chapter.
Sec.
4. RCW
82.14.390 and 1999 c 165 s 13 are each amended to read as follows:
(1)
Except as provided in subsection (6) of this section, the governing body of a
public facilities district created before July 31, 2002, under chapter
35.57 or 36.100 RCW that commences construction of a new regional center, or
improvement or rehabilitation of an existing new regional center, before
January 1, ((2003)) 2004, 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 public facilities district. 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.
(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 such taxes on behalf of the county at no cost to the
public facilities district.
(3)
No tax may be collected under this section before August 1, 2000. The tax
imposed in this section shall expire when the bonds issued for the construction
of the regional center and related parking facilities are retired, but not more
than twenty-five years after the tax is first collected.
(4)
Moneys collected under this section shall only be used for the purposes set
forth in RCW 35.57.020 and must be matched with an amount from other public or
private sources equal to thirty-three percent of the amount collected under
this section, provided that amounts generated from nonvoter approved taxes
authorized under chapter 35.57 RCW or nonvoter approved taxes authorized under
chapter 36.100 RCW shall not constitute a public or private source. For the
purpose of this section, public or private sources includes, but is not limited
to cash or in-kind contributions used in all phases of the development or
improvement of the regional center, land that is donated and used for the
siting of the regional center, cash or in-kind contributions from public or
private foundations, or amounts attributed to private sector partners as part
of a public and private partnership agreement negotiated by the public
facilities district.
(5)
The combined total tax levied under this section shall not be greater than
0.033 percent. If both a public facilities district created under chapter
35.57 RCW and a public facilities district created under chapter 36.100 RCW
impose a tax under this section, the tax imposed by a public facilities
district created under chapter 35.57 RCW shall be credited against the tax
imposed by a public facilities district created under chapter 36.100 RCW.
(6)
A public facilities district created under chapter 36.100 RCW is not eligible
to impose the tax under this section if the legislative authority of the county
where the public facilities district is located has imposed a sales and use tax
under RCW 82.14.0485 or 82.14.0494.
Sec.
5. RCW
35.21.280 and 1999 c 165 s 19 are each amended to read as follows:
(1)
Every city and town may levy and fix a tax of not more than one cent on twenty
cents or fraction thereof to be paid by the person who pays an admission charge
to any place: PROVIDED, No city or town shall impose such tax on persons
paying an admission to any activity of any elementary or secondary school or
any public facility of a public facility district under chapter 35.57 or 36.100
RCW for which a tax is imposed under RCW 35.57.100 or 36.100.210((. This)),
except the city or town may impose a tax on persons paying an admission to any
activity of such public facility if the city or town uses the admission tax
revenue it collects on the admission charges to that public facility for the
construction, operation, maintenance, repair, replacement, or enhancement of
that public facility or to develop, support, operate, or enhance programs in
that public facility.
(2)
Tax authorization under this section includes a tax on persons who are
admitted free of charge or at reduced rates to any place for which other
persons pay a charge or a regular higher charge for the same privileges or
accommodations. A city that is located in a county with a population of one
million or more may not levy a tax on events in stadia constructed on or after
January 1, 1995, that are owned by a public facilities district under chapter
36.100 RCW and that have seating capacities over forty thousand. The city or
town may require anyone who receives payment for an admission charge to collect
and remit the tax to the city or town.
(3)
The term "admission charge" includes:
(((1)))
(a) A charge made for season tickets or subscriptions;
(((2)))
(b) A cover charge, or a charge made for use of seats and tables
reserved or otherwise, and other similar accommodations;
(((3)))
(c) A charge made for food and refreshment in any place where free
entertainment, recreation or amusement is provided;
(((4)))
(d) A charge made for rental or use of equipment or facilities for
purposes of recreation or amusement; if the rental of the equipment or
facilities is necessary to the enjoyment of a privilege for which a general
admission is charged, the combined charges shall be considered as the admission
charge;
(((5)))
(e) Automobile parking charges if the amount of the charge is determined
according to the number of passengers in the automobile.
