6026-S AMS WEST S2482.2

SSB 6026 - S AMD 243

By Senator West

ADOPTED 03/18/2003

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 35.87A.010 and 2000 c 201 s 1 are each amended to read as follows:

To aid general economic development and neighborhood revitalization, and to facilitate the cooperation of merchants, businesses, and residential property owners which assists trade, economic viability, and liveability, the legislature hereby authorizes all counties and all incorporated cities and towns, including unclassified cities and towns operating under special charters:

(1) To establish, after a petition submitted by the operators responsible for sixty percent of the assessments by businesses and multifamily residential or mixed-use projects within the area, parking and business improvement areas, hereafter referred to as area or areas, for the following purposes:

(a) The acquisition, construction or maintenance of parking facilities for the benefit of the area;

(b) Decoration of any public place in the area;

(d) Furnishing of music in any public place in the area;

(e) Providing professional management, planning, and promotion for the area, including the management and promotion of retail trade and tourism activities in the area; ((or))

(f) Providing maintenance and security for common, public areas.

(2) To levy special assessments on all businesses and multifamily residential or mixed-use projects within the area and specially benefited by a parking and business improvement area to pay in whole or in part the damages or costs incurred therein as provided in this chapter.

(3) To impose a convention and tourism promotion charge in the parking and business improvement area as authorized under section 3 of this act, the proceeds of which shall be used for the purpose of funding convention and tourism promotion.

Sec. 2. RCW 35.87A.020 and 1993 c 429 s 2 are each amended to read as follows:

Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Business" means all types of business, including professions.

(2) "Convention and tourism promotion" means (a) activities and expenditures designed to increase tourism and convention business, including but not limited to advertising, publicizing, or otherwise distributing information for the purpose of attracting and welcoming tourists; developing strategies to expand tourism; and operating tourism destination marketing organizations; and (b) the activities under (a) of this subsection that are located in a county with a population greater than four hundred thousand, but less than one million.

(3) "Legislative authority" means the legislative authority of any city or town, including unclassified cities or towns operating under special charters, or the legislative authority of any county.

(((3))) (4) "Multifamily residential or mixed-use project" means any building or buildings containing four or more residential units or a combination of residential and commercial units, whether title to the entire property is held in single or undivided ownership or title to individual units is held by owners who also, directly or indirectly through an association, own real property in common with the other unit owners.

(((4))) (5) "Residential operator" means the owner or operator of a multifamily residential or mixed-use project if title is held in single or undivided ownership, or, if title is held in a form of common interest ownership, the association of unit owners, condominium association, homeowners' association, property owners' association, or residential cooperative corporation.

NEW SECTION. Sec. 3. A new section is added to chapter 35.87A RCW to read as follows:

(1) A legislative authority that has created a parking and business improvement area under this chapter may impose a convention and tourism promotion charge on the furnishing of lodging in the parking and business improvement area, as provided in this section. The charge shall be in addition to any other assessments, fees, or taxes authorized by law, including the special assessment already authorized under this chapter prior to the effective date of this act.

(2) The legislative authority may not provide for more than six classifications upon which the charge shall be imposed. Classifications can be based on the number of rooms, room revenue, or location within the area. Each classification may have its own rate, which shall be expressed in terms of nights of stay. In no case may the rate under this section be in excess of two dollars per night of stay. The legislative authority shall provide for exemptions from the charge that parallels any exemptions in regard to furnishing lodging under chapter 82.08 RCW.

(3)(a) For administrative ease the charge shall be administered by the department of revenue and shall be collected from those persons who are taxable by the state under chapter 82.08 RCW.

(b) Chapter 82.32 RCW applies to the charge imposed under this section.

(c) The legislative authority shall contract for, at least seventy- five days prior to the effective date of a resolution or ordinance imposing the charge, the administration and collection by the department of revenue. The remainder of any portion of any charge authorized by this chapter that is collected by the department of revenue shall be deposited by the department of revenue in the convention and tourism promotion account hereby created as an account in the custody of the state treasurer. The state treasurer shall distribute the moneys in the account on a monthly basis to the legislative authority on whose behalf the money was collected.

(4) Moneys received from any charge imposed under this section shall be used to fund convention and tourism promotion.

(5) The charge imposed under this section is not a tax on the "sale of lodging" as that term is defined in RCW 82.14.410.

Sec. 4. RCW 43.79A.040 and 2002 c 322 s 5, 2002 c 204 s 7, and 2002 c 61 s 6 are each reenacted and amended to read as follows:

(1) Money in the treasurer's trust fund may be deposited, invested, and reinvested by the state treasurer in accordance with RCW 43.84.080 in the same manner and to the same extent as if the money were in the state treasury.

(2) All income received from investment of the treasurer's trust fund shall be set aside in an account in the treasury trust fund to be known as the investment income account.

(3) The investment income account may be utilized for the payment of purchased banking services on behalf of treasurer's trust funds including, but not limited to, depository, safekeeping, and disbursement functions for the state treasurer or affected state agencies. The investment income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for payments to financial institutions. Payments shall occur prior to distribution of earnings set forth in subsection (4) of this section.

(4)(a) Monthly, the state treasurer shall distribute the earnings credited to the investment income account to the state general fund except under (b) and (c) of this subsection.

(b) The following accounts and funds shall receive their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The Washington promise scholarship account, the college savings program account, the Washington advanced college tuition payment program account, the agricultural local fund, the American Indian scholarship endowment fund, the basic health plan self-insurance reserve account, the Washington state combined fund drive account, the Washington international exchange scholarship endowment fund, the developmental disabilities endowment trust fund, the energy account, the fair fund, the fruit and vegetable inspection account, the game farm alternative account, the grain inspection revolving fund, the juvenile accountability incentive account, the convention and tourism promotion account, the rural rehabilitation account, the stadium and exhibition center account, the youth athletic facility account, the self-insurance revolving fund, the sulfur dioxide abatement account, and the children's trust fund. However, the earnings to be distributed shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.

(c) The following accounts and funds shall receive eighty percent of their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The advanced right of way revolving fund, the advanced environmental mitigation revolving account, the city and county advance right-of-way revolving fund, the federal narcotics asset forfeitures account, the high occupancy vehicle account, the local rail service assistance account, and the miscellaneous transportation programs account.

(5) In conformance with Article II, section 37 of the state Constitution, no trust accounts or funds shall be allocated earnings without the specific affirmative directive of this section."

SSB 6026 - S AMD 243

By Senator West

ADOPTED 03/18/2003

On page 1, line 2 of the title, after "promotion;" strike the remainder of the title and insert "amending RCW 35.87A.010 and 35.87A.020; reenacting and amending RCW 43.79A.040; and adding a new section to chapter 35.87A RCW."

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