BILL REQ. #:  H-0583.5 

Read first time 02/26/2007.   Referred to Committee on Appropriations.

     AN ACT Relating to replacing school impact fees and providing additional revenue to high growth school districts; amending RCW 82.45.060 and 82.02.090; adding a new section to chapter 43.08 RCW; adding a new section to chapter 28A.300 RCW; and creating a new section.

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

Sec. 1   RCW 82.45.060 and 2005 c 450 s 1 are each amended to read as follows:
     There is imposed an excise tax upon each sale of real property at the rate of one and twenty-eight one-hundredths percent of the selling price. An amount equal to six and one-tenth percent of the proceeds of this tax to the state treasurer shall be deposited in the public works assistance account created in RCW 43.155.050. An amount equal to one and six-tenths percent of the proceeds of this tax to the state treasurer shall be deposited in the city-county assistance account created in RCW 43.08.290. By April 1st of each fiscal year, an amount equal to one hundred fifty million dollars and an additional amount determined under section 2 of this act shall be deposited in the high growth school district assistance account created in section 2 of this act.

NEW SECTION.  Sec. 2   A new section is added to chapter 43.08 RCW to read as follows:
     (1) The high growth school district assistance account is created in the state treasury. All receipts from RCW 82.45.060 must be deposited in the account. Moneys in the account may be spent only after appropriation. Expenditures from the account must be used solely for system improvements for school facilities within high growth districts.
     (2) By June 30th of each fiscal year, the state treasurer shall distribute money in the account in the following manner:
     (a) Fifty million dollars shall be distributed to each school district that received impact fees during the 2006-07 school year based on the amount of impact fees received that year as provided by the office of the superintendent of public instruction;
     (b) An additional amount shall be distributed to each high growth school district that received impact fees during the 2006-07 school year equal to twenty-five percent of the impact fees received that year as provided by the office of the superintendent of public instruction; and
     (c) An additional amount shall be distributed to any high growth school district that did not receive impact fees in the 2006-07 school year. The amount is equal to the total number of actual full-time equivalent students in the school district as of May 1st multiplied by the product of twenty-five percent and the average statewide impact fees per actual full-time equivalent students as of May 1st. This amount shall be based on the amount of impact fees collected in the preceding calendar year and the number of actual full-time equivalent students in the current school year as of May 1st.
     (3) For the purposes of this section, the following definitions apply:
     (a) "High growth" means actual enrollment, as provided by the office of the superintendent of public instruction, on May 1st of the current school year that is at least ten percent greater than enrollment on May 1st of the school year three years prior to the current school year.
     (b) "Impact fee" means a fee imposed pursuant to RCW 82.02.050 through 82.02.090 for system improvements for school facilities.
     (c) "System improvement" means the same as in RCW 82.02.090.

Sec. 3   RCW 82.02.090 and 1990 1st ex.s. c 17 s 48 are each amended to read as follows:
     Unless the context clearly requires otherwise, the following definitions shall apply in RCW 82.02.050 through 82.02.090:
     (1) "Development activity" means any construction or expansion of a building, structure, or use, any change in use of a building or structure, or any changes in the use of land, that creates additional demand and need for public facilities.
     (2) "Development approval" means any written authorization from a county, city, or town which authorizes the commencement of development activity.
     (3) "Impact fee" means a payment of money imposed upon development as a condition of development approval to pay for public facilities needed to serve new growth and development, and that is reasonably related to the new development that creates additional demand and need for public facilities, that is a proportionate share of the cost of the public facilities, and that is used for facilities that reasonably benefit the new development. "Impact fee" does not include a reasonable permit or application fee.
     (4) "Owner" means the owner of record of real property, although when real property is being purchased under a real estate contract, the purchaser shall be considered the owner of the real property if the contract is recorded.
     (5) "Proportionate share" means that portion of the cost of public facility improvements that are reasonably related to the service demands and needs of new development.
     (6) "Project improvements" mean site improvements and facilities that are planned and designed to provide service for a particular development project and that are necessary for the use and convenience of the occupants or users of the project, and are not system improvements. No improvement or facility included in a capital facilities plan approved by the governing body of the county, city, or town shall be considered a project improvement.
     (7) "Public facilities" means the following capital facilities owned or operated by government entities: (a) Public streets and roads; (b) publicly owned parks, open space, and recreation facilities; and (c) ((school facilities; and (d))) fire protection facilities in jurisdictions that are not part of a fire district.
     (8) "Service area" means a geographic area defined by a county, city, town, or intergovernmental agreement in which a defined set of public facilities provide service to development within the area. Service areas shall be designated on the basis of sound planning or engineering principles.
     (9) "System improvements" mean public facilities that are included in the capital facilities plan and are designed to provide service to service areas within the community at large, in contrast to project improvements.

NEW SECTION.  Sec. 4   A new section is added to chapter 28A.300 RCW to read as follows:
     By December 1, 2007, the superintendent of public instruction shall prepare a report to the appropriate committees of the house of representatives and senate on the amount of impact fees as defined in RCW 82.02.090 and mitigation fees pursuant to RCW 43.21C.060 received by each school district in the 2006-07 school year.

NEW SECTION.  Sec. 5   On or after the effective date of this act, cities and counties may not impose impact fees for system improvements for school facilities.