BILL REQ. #:  S-1675.3 

Read first time 03/06/2003.   Referred to Committee on Ways & Means.

     AN ACT Relating to authorizing special assessments to fund convention and trade promotion; and amending RCW 35.87A.010, 35.87A.020, 35.87A.030, 35.87A.050, 35.87A.080, 35.87A.090, 35.87A.110, 35.87A.130, and 35.87A.140.

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

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;
     (c) Sponsorship or promotion of public events which are to take place on or in public places 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 levy an additional special assessment on the sale of or charge made for the furnishing of lodging that is subject to tax under chapter 82.08 RCW for the purpose of funding convention and tourism promotion. This additional special assessment amount shall be a fixed amount not to exceed two dollars on the sale of or charge made for the furnishing of lodging.

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, including but not limited to advertising, publicizing, or otherwise distributing information for the purpose of attracting and welcoming tourists; developing strategies to expand tourism; operating tourism promotion agencies; and funding marketing of special events and festivals designed to attract tourists; and (b) the activities under (a) of this subsection 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.

Sec. 3   RCW 35.87A.030 and 1993 c 429 s 3 are each amended to read as follows:
     For the purpose of establishing a parking and business improvement area, an initiation petition may be presented to the legislative authority having jurisdiction of the area in which the proposed parking and business improvement area is to be located or the legislative authority may by resolution initiate a parking and business improvement area. The initiation petition or resolution shall contain the following:
     (1) A description of the boundaries of the proposed area;
     (2) The proposed uses and projects to which the proposed special assessment revenues shall be put and the total estimated cost thereof;
     (3) The estimated rate of levy of special assessment under RCW 35.87A.010(2) with a proposed breakdown by class of business and multifamily residential or mixed-use project if such classification is to be used.
     (4) The estimated levy rate of special assessments under RCW 35.87A.010(3) with a proposed graduated assessment rate based on location and the revenue that lodging businesses will receive from the convention and trade promotion.
     The initiating petition shall also contain the signatures of the persons who operate businesses and residential operators in the proposed area which would pay fifty percent of the proposed special assessments.

Sec. 4   RCW 35.87A.050 and 1993 c 429 s 4 are each amended to read as follows:
     Notice of a hearing held under the provisions of this chapter shall be given by:
     (1) One publication of the resolution of intention in a newspaper of general circulation in the city; and
     (2) Mailing a complete copy of the resolution of intention to each business and multifamily residential or mixed-use project or lodging businesses in the proposed, or established, area. Publication and mailing shall be completed at least ten days prior to the time of the hearing.

Sec. 5   RCW 35.87A.080 and 1993 c 429 s 6 are each amended to read as follows:
     (1) For purposes of the special assessments to be imposed ((pursuant to this chapter)) under RCW 35.87A.010(2), the legislative authority may make a reasonable classification of businesses and multifamily residential or mixed-use projects, giving consideration to various factors such as business and occupation taxes imposed, square footage of the business, number of employees, gross sales, or any other reasonable factor relating to the benefit received, including the degree of benefit received from parking. Whenever it is proposed that a parking and business improvement area provide more than one of the purposes listed in RCW 35.87A.010, special assessments may be imposed in a manner that measures benefit from each of the separate purposes, or any combination of the separate purposes.
     (2) For the purposes of the additional special assessment under RCW 35.87A.010(3), the assessment amount charged for the furnishing of lodging by businesses shall reflect the location and the revenue that the lodging business will receive from the convention and trade promotion.
     (3) Special assessments shall be imposed and collected annually, or on another basis specified in the ordinance establishing the parking and business improvement area.

Sec. 6   RCW 35.87A.090 and 1993 c 429 s 7 are each amended to read as follows:
     (1) The special assessments need not be imposed on different classes of business and multifamily residential or mixed-use projects, as determined pursuant to RCW 35.87A.080(1), on the same basis or the same rate. The special assessments imposed for the purpose of the acquisition, construction or maintenance of parking facilities for the benefit of the area shall be imposed on the basis of benefit determined by the legislative authority after giving consideration to the total cost to be recovered from the businesses and multifamily residential or mixed-use projects upon which the special assessment is to be imposed, the total area within the boundaries of the parking and business improvement area, the assessed value of the land and improvements within the area, the total business volume generated within the area and within each business, and such other factors as the legislative authority may find and determine to be a reasonable measure of such benefit.
     (2) The special assessments on lodging businesses under RCW 35.87A.010(3) must reflect the location and the revenue that the lodging business will derive from the convention and trade promotion, as well as factors such as increased business volume or other factors the legislative authority determines to be a reasonable measure of the benefit received.

Sec. 7   RCW 35.87A.110 and 1971 ex.s. c 45 s 11 are each amended to read as follows:
     Subject to the provisions of this chapter, the legislative authority of each city or town or county shall have sole discretion as to how the revenue derived from the special assessments is to be used ((within the scope of the purposes)); however, the legislative authority may appoint existing advisory boards or commissions to make recommendations as to its use, or the legislative authority may create a new advisory board or commission for the purpose.
     The legislative authority may contract with a chamber of commerce or other similar business association operating primarily within the boundaries of the legislative authority to administer the operation of a parking and business improvement area, including any funds derived pursuant thereto: PROVIDED, That such administration must comply with all applicable provisions of law including this chapter, with all county, city, or town resolutions and ordinances, and with all regulations lawfully imposed by the state auditor or other state agencies.

Sec. 8   RCW 35.87A.130 and 1971 ex.s. c 45 s 13 are each amended to read as follows:
     Collections of assessments imposed pursuant to this chapter shall be made at the same time and in the same manner as otherwise prescribed by Title 35 RCW or in such other manner as the legislative authority shall determine. The special assessment under RCW 35.87A.010(3) shall be collected at the same time and in a similar manner as sales and use taxes are collected under chapter 82.14 RCW. The department of revenue shall administer the collection of this special assessment at no cost to the city, town, or county.

Sec. 9   RCW 35.87A.140 and 1993 c 429 s 9 are each amended to read as follows:
     Changes may be made in the rate or additional rate of special assessment as specified in the ordinance establishing the area, by ordinance adopted after a hearing before the legislative authority.
     The legislative authority shall adopt a resolution of intention to change the rate or additional rate of special assessment at least fifteen days prior to the hearing required by this section. This resolution shall specify the proposed change and shall give the time and place of the hearing. Proceedings to change the rate or impose an additional rate of special assessments shall terminate if protest is made by businesses or multifamily residential or mixed-use projects or lodging businesses in the proposed area which would pay a majority of the proposed increase or additional special assessments.