BILL REQ. #:  S-3382.4 

READ FIRST TIME 04/16/07.   

     AN ACT Relating to public facilities; amending RCW 36.100.010, 36.100.030, 82.14.0485, 82.14.0494, 82.14.360, 67.28.180, 82.14.049, 36.100.090, 36.38.010, and 67.28.1815; reenacting and amending RCW 82.29A.130; adding new sections to chapter 36.100 RCW; and creating new sections.

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

Sec. 101   RCW 36.100.010 and 2002 c 218 s 26 are each amended to read as follows:
     (1) ((A)) One or more public facilities districts may be created in any county and shall be coextensive with the boundaries of the county.
     (2) A public facilities district shall be created upon adoption of a resolution providing for the creation of such a district by the county legislative authority in which the proposed district is located. The scope and authority of the public facilities district may be defined and limited by the resolution providing for the creation of the public facilities district.
     (3) 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.
     (4) No taxes authorized under this chapter may be assessed or levied unless a majority of the voters of the public facilities district has approved such tax at a general or special election. A single ballot proposition may both validate the imposition of the sales and use tax under RCW 82.14.048 and the excise tax under RCW 36.100.040.
     (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 enter into contracts with a county for the purpose of exercising any powers of a community renewal agency under chapter 35.81 RCW.
     (7) The county legislative authority or the city council may transfer property to the public facilities district created under this chapter. No property that is encumbered with debt or that is in need of major capital renovation may be transferred to the district without the agreement of the district and revenues adequate to retire or defease the existing indebtedness.

Sec. 102   RCW 36.100.030 and 2003 c 376 s 1 are each amended to read as follows:
     (1) A public facilities district is authorized to acquire, construct, own, remodel, maintain, equip, reequip, repair, lease, finance, and operate (a) sports facilities, entertainment facilities, convention facilities, or regional centers as defined in RCW 35.57.020, and (b) for districts formed after January 1, 2000, recreational facilities other than ski areas, together with contiguous parking facilities. The taxes that are provided for in this chapter may only be imposed for these purposes.
     (2) A public facilities district may enter into agreements under chapter 39.34 RCW for the joint provision and operation of such facilities and may enter into contracts under chapter 39.34 RCW where any party to the contract provides and operates such facilities for the other party or parties to the contract.
     (3) Notwithstanding the establishment of a career, civil, or merit service system, a public facilities district may contract with a public or private entity, including a prospective tenant of a proposed or existing facility, for the site acquisition, development, design, construction, lease, financing, operation, or management of its public facilities, including without limitation:
     (a) For the provision of design and other professional services, including with respect to the site evaluation and selection, design options, required environmental studies, other required studies, and necessary permitting;
     (b) To control development of the facility, including determining bidding specifications and requirements, procurement procedures, and all other aspects of development, select and engage an architect or architects, other design professionals, and a contractor or contractors for design and construction;
     (c) For a master lease whereby the public or private entity becomes the sole master tenant of the facility.
     (4) 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 of its public facilities.
     (5) A public facilities district may: (a) Impose charges and fees for the use of its facilities((,)); (b) structure the financing of the facility in consultation with the county in which the public facilities district is located; (c) incur debt from any source on an interim basis to finance the cost of public facilities district operations, which debt may be repaid out of bond proceeds or other sources; and ((may)) (d) accept and expend or use gifts, grants, and donations.

Sec. 201   RCW 82.14.0485 and 1995 3rd sp.s. c 1 s 101 are each amended to read as follows:
     (1) The legislative authority of a county with a population of one million or more 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 county. The rate of tax shall not exceed 0.017 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 county.
     (3) Moneys collected under this section shall only be used for the purpose of paying the principal and interest payments on bonds issued by a county to construct a baseball stadium, and for the purposes set forth in section 301 of this act.
     (4) ((No tax may be collected under this section before January 1, 1996, and no tax may be collected under this section unless the taxes under RCW 82.14.360 are being collected.)) The tax imposed in this section shall expire when the bonds issued for the construction of the baseball stadium are retired or defeased, but not more than twenty years after the tax is first collected, unless extended pursuant to subsection (6) of this section.
     (5) As used in this section, "baseball stadium" means a baseball stadium with natural turf and a retractable roof or canopy, together with associated parking facilities, constructed in the largest city in a county with a population of one million or more.
     (6) The legislative authority of a county with a population of one million or more may extend the tax under this section if bonds have been issued for construction of a regional center under section 302 of this act. Until the date that is the earlier of the date the bonds issued for the construction of a baseball stadium are retired or defeased or twenty years after the date the tax imposed in this section is first collected, moneys collected under this section shall only be used for the purpose of paying the principal and interest payments on bonds issued by a county to construct a baseball stadium. After the date that is the earlier of the date the bonds issued for the construction of a baseball stadium are retired or defeased or twenty years after the date the tax imposed in this section is first collected, money collected under this section shall be used for the purposes set forth in section 301 of this act.

Sec. 202   RCW 82.14.0494 and 1997 c 220 s 204 are each amended to read as follows:
     (1) The legislative authority of a county that has created a public stadium authority to develop a stadium and exhibition center under RCW 36.102.050 may impose a sales and use tax in accordance with 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 county. The rate of tax shall be 0.016 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 county.
     (3) ((Before the issuance of bonds in RCW 43.99N.020, all revenues collected on behalf of the county under this section shall be transferred to the public stadium authority.)) After bonds are issued under RCW 43.99N.020, all revenues collected on behalf of the county under this section shall be deposited in the stadium and exhibition center account under RCW 43.99N.060, until the date that is the earlier of the date the bonds issued for the construction of a stadium and exhibition center are retired or defeased or twenty-three years after the date the tax in this section is first imposed.
     (4) The definitions in RCW 36.102.010 apply to this section.
     (5) This section expires on the earliest of the following dates, unless extended pursuant to subsection (6) of this section:
     (a) December 31, 1999, if the conditions for issuance of bonds under RCW 43.99N.020 have not been met before that date;
     (b) The date on which all bonds issued under RCW 43.99N.020 have been retired or defeased; or
     (c) Twenty-three years after the date the tax under this section is first imposed.
     (6) The legislative authority of a county with a population of one million or more may extend the tax under this section if bonds have been issued for construction of a regional center under section 302 of this act. Until the date that is the earlier of the date the bonds issued for the construction of a stadium and exhibition center are retired or defeased or twenty-three years after the date the tax in this section is first imposed, all revenues collected on behalf of the county under this section shall be deposited in the stadium and exhibition center account under RCW 43.99N.060. After the date that is the earlier of the date the bonds issued for the construction of a stadium and exhibition center are retired or defeased or twenty-three years after the date the tax in this section is first imposed, money collected under this section shall be used for the purposes set forth in section 301 of this act.

Sec. 203   RCW 82.14.360 and 2000 c 103 s 10 are each amended to read as follows:
     (1) The legislative authority of a county with a population of one million or more may impose a special stadium sales and use tax upon the retail sale or use within the county by restaurants, taverns, and bars of food and beverages that are taxable by the state under chapters 82.08 and 82.12 RCW. The rate of the tax shall not exceed five-tenths of one 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. The tax imposed under this subsection is in addition to any other taxes authorized by law and shall not be credited against any other tax imposed upon the same taxable event. As used in this section, "restaurant" does not include grocery stores, mini-markets, or convenience stores.
     (2) The legislative authority of a county with a population of one million or more may impose a special stadium sales and use tax upon retail car rentals within the county that are taxable by the state under chapters 82.08 and 82.12 RCW. The rate of the tax shall not exceed two percent of the selling price in the case of a sales tax, or rental value of the vehicle in the case of a use tax. The tax imposed under this subsection is in addition to any other taxes authorized by law and shall not be credited against any other tax imposed upon the same taxable event.
     (3) Until the date that is the earlier of the date on which bonds issued for the construction of a baseball stadium are retired or defeased or twenty years after the taxes in this section are first collected, the revenue from the taxes imposed under this section shall be used for the purpose of principal and interest payments on bonds, issued by the county, to acquire, construct, own, remodel, maintain, equip, reequip, repair, and operate a baseball stadium. Revenues from the taxes authorized in this section may be used for design and other preconstruction costs of the baseball stadium until bonds are issued for the baseball stadium. The county shall issue bonds, in an amount determined to be necessary by the public facilities district, for the district to acquire, construct, own, and equip the baseball stadium. The county shall have no obligation to issue bonds in an amount greater than that which would be supported by the tax revenues under this section, RCW 82.14.0485, and 36.38.010(4) (a) and (b).
     (4) Until the date that is the earlier of the date on which bonds issued for the construction of a baseball stadium are retired or defeased or twenty years after the taxes in this section are first collected, if the revenue from the taxes imposed under this section exceeds the amount needed for such principal and interest payments in any year, the excess shall be used solely:
     (a) For early retirement or defeasement of the bonds issued for the baseball stadium; and
     (b) If the revenue from the taxes imposed under this section exceeds the amount needed for the purposes in (a) of this subsection in any year, the excess shall be placed in a contingency fund which may only be used to pay unanticipated capital costs on the baseball stadium, excluding any cost overruns on initial construction.
     (((4))) (5) The taxes authorized under this section shall not be collected after June 30, 1997, unless the county executive has certified to the department of revenue that a professional major league baseball team has made a binding and legally enforceable contractual commitment to:
     (a) Play at least ninety percent of its home games in the stadium for a period of time not shorter than the term of the bonds issued to finance the initial construction of the stadium;
     (b) Contribute forty-five million dollars toward the reasonably necessary preconstruction costs including, but not limited to architectural, engineering, environmental, and legal services, and the cost of construction of the stadium, or to any associated public purpose separate from bond-financed property, including without limitation land acquisition, parking facilities, equipment, infrastructure, or other similar costs associated with the project, which contribution shall be made during a term not to exceed the term of the bonds issued to finance the initial construction of the stadium. If all or part of the contribution is made after the date of issuance of the bonds, the team shall contribute an additional amount equal to the accruing interest on the deferred portion of the contribution, calculated at the interest rate on the bonds maturing in the year in which the deferred contribution is made. No part of the contribution may be made without the consent of the county until a public facilities district is created under chapter 36.100 RCW to acquire, construct, own, remodel, maintain, equip, reequip, repair, and operate a baseball stadium. To the extent possible, contributions shall be structured in a manner that would allow for the issuance of bonds to construct the stadium that are exempt from federal income taxes; and
     (c) Share a portion of the profits generated by the baseball team from the operation of the professional franchise for a period of time equal to the term of the bonds issued to finance the initial construction of the stadium, after offsetting any losses incurred by the baseball team after ((the effective date of chapter 14, Laws of 1995 1st sp. sess)) June 14, 1995. Such profits and the portion to be shared shall be defined by agreement between the public facilities district and the baseball team. The shared profits shall be used to retire or defease the bonds issued to finance the initial construction of the stadium. If the bonds are retired or defeased before the expiration of their term, the shared profits shall be paid to the public facilities district.
     (((5))) (6) If bonds have been issued for construction of a regional center under section 302 of this act, the following condition applies: After the earlier of the date the bonds issued for the construction of a baseball stadium are retired or defeased or twenty years after the taxes in this section are first collected, through and until December 31, 2015, money collected under subsections (1) and (2) of this section shall be used for the purposes set forth in section 301 of this act.
     (7) No tax may be collected under this section before January 1, 1996. Before collecting the taxes under this section or issuing bonds for a baseball stadium, the county shall create a public facilities district under chapter 36.100 RCW to acquire, construct, own, remodel, maintain, equip, reequip, repair, and operate a baseball stadium.
     (((6))) (8) The county shall assemble such real property as the district determines to be necessary as a site for the baseball stadium. Property which is necessary for this purpose that is owned by the county on October 17, 1995, shall be contributed to the district, and property which is necessary for this purpose that is acquired by the county on or after October 17, 1995, shall be conveyed to the district.
     (((7))) (9) The proceeds of any bonds issued for ((the)) a baseball stadium shall be provided to the public facilities district that owns the baseball stadium.
     (((8))) (10) As used in this section, "baseball stadium" means "baseball stadium" as defined in RCW 82.14.0485.
     (((9))) (11) The taxes imposed under this section shall expire ((when)) on the later of the following dates:
     (a) The earlier of the date on which the bonds issued for the construction of the baseball stadium are retired or defeased, but not later than twenty years after the taxes are first collected; or
     (b) If bonds are issued for construction of a regional center under section 302 of this act, December 31, 2015.

Sec. 204   RCW 67.28.180 and 2002 c 178 s 2 are each amended to read as follows:
     (1) Subject to the conditions set forth in subsections (2) and (3) of this section, the legislative body of any county or any city, is authorized to levy and collect a special excise tax of not to exceed two percent on the sale of or charge made for the furnishing of lodging that is subject to tax under chapter 82.08 RCW.
     (2) Any levy authorized by this section shall be subject to the following:
     (a) Any county ordinance or resolution adopted pursuant to this section shall contain, in addition to all other provisions required to conform to this chapter, a provision allowing a credit against the county tax for the full amount of any city tax imposed pursuant to this section upon the same taxable event.
     (b) In the event that any county has levied the tax authorized by this section and has, prior to June 26, 1975, either pledged the tax revenues for payment of principal and interest on city revenue or general obligation bonds authorized and issued pursuant to RCW 67.28.150 through 67.28.160 or has authorized and issued revenue or general obligation bonds pursuant to the provisions of RCW 67.28.150 through 67.28.160, such county shall be exempt from the provisions of (a) of this subsection, to the extent that the tax revenues are pledged for payment of principal and interest on bonds issued at any time pursuant to the provisions of RCW 67.28.150 through 67.28.160: PROVIDED, That so much of such pledged tax revenues, together with any investment earnings thereon, not immediately necessary for actual payment of principal and interest on such bonds may be used: (i) In any county with a population of one million or more, for repayment either of limited tax levy general obligation bonds or of any county fund or account from which a loan was made, the proceeds from the bonds or loan being used to pay for constructing, installing, improving, and equipping stadium capital improvement projects, and to pay for any engineering, planning, financial, legal and professional services incident to the development of such stadium capital improvement projects, regardless of the date the debt for such capital improvement projects was or may be incurred; (ii) in any county with a population of one million or more, for repayment or refinancing of bonded indebtedness incurred prior to January 1, 1997, for any purpose authorized by this section or relating to stadium repairs or rehabilitation, including but not limited to the cost of settling legal claims, reimbursing operating funds, interest payments on short-term loans, and any other purpose for which such debt has been incurred if the county has created a public stadium authority to develop a stadium and exhibition center under RCW 36.102.030; or (iii) in other counties, for county-owned facilities for agricultural promotion. A county is exempt under this subsection in respect to city revenue or general obligation bonds issued after April 1, 1991, only if such bonds mature before January 1, 2013.
     As used in this subsection (2)(b), "capital improvement projects" may include, but not be limited to a stadium restaurant facility, restroom facilities, artificial turf system, seating facilities, parking facilities and scoreboard and information system adjacent to or within a county owned stadium, together with equipment, utilities, accessories and appurtenances necessary thereto. The stadium restaurant authorized by this subsection (2)(b) shall be operated by a private concessionaire under a contract with the county.
     (c)(i) No city within a county exempt under subsection (2)(b) of this section may levy the tax authorized by this section so long as said county is so exempt.
     (ii) If bonds have been issued under RCW 43.99N.020 and any necessary property transfers have been made under RCW 36.102.100, no city within a county with a population of one million or more may levy the tax authorized by this section before January 1, 2021. If bonds for construction of a regional center have been issued under section 302 of this act, no city within a county with a population of one million or more may levy the tax authorized by this section.
     (iii) However, in the event that any city in a county described in (i) or (ii) of this subsection (2)(c) has levied the tax authorized by this section and has, prior to June 26, 1975, authorized and issued revenue or general obligation bonds pursuant to the provisions of RCW 67.28.150 through 67.28.160, such city may levy the tax so long as the tax revenues are pledged for payment of principal and interest on bonds issued at any time pursuant to the provisions of RCW 67.28.150 through 67.28.160.
     (3) Any levy authorized by this section by a county that has levied the tax authorized by this section and has, prior to June 26, 1975, either pledged the tax revenues for payment of principal and interest on city revenue or general obligation bonds authorized and issued pursuant to RCW 67.28.150 through 67.28.160 or has authorized and issued revenue or general obligation bonds pursuant to the provisions of RCW 67.28.150 through 67.28.160 shall be subject to the following:
     (a) Taxes collected under this section in any calendar year before 2013 in excess of five million three hundred thousand dollars shall only be used as follows:
     (i) Seventy-five percent from January 1, 1992, through December 31, 2000, and seventy percent from January 1, 2001, through December 31, 2012, for art museums, cultural museums, heritage museums, heritage and preservation programs, the arts, and the performing arts. Moneys spent under this subsection (3)(a)(i) shall be used for the purposes of this subsection (3)(a)(i) in all parts of the county.
     (ii) Twenty-five percent from January 1, 1992, through December 31, 2000, and thirty percent from January 1, 2001, through December 31, 2012, for the following purposes and in a manner reflecting the following order of priority: Stadium purposes as authorized under subsection (2)(b) of this section; acquisition of open space lands; youth sports activities; and tourism promotion. If all or part of the debt on the stadium is refinanced, all revenues under this subsection (3)(a)(ii) shall be used to retire or defease the debt.
     (b) From January 1, 2013, through December 31, 2015, in a county with a population of one million or more, all revenues under this section shall be used to retire or defease the debt on the stadium, or deposited in the stadium and exhibition center account under RCW 43.99N.060 after the debt on the stadium is retired or defeased.
     (c) From January 1, 2016, through December 31, 2020, in a county with a population of one million or more, all revenues under this section shall be deposited in the stadium and exhibition center account under RCW 43.99N.060.
     (d) From January 1, 2021, until all bonds described in section 302 of this act are retired or defeased, if bonds for construction of a regional center have been issued under section 302 of this act, in a county with a population of one million or more all revenues under this section shall be used for the purposes set forth in section 301 of this act.
     (e) At least seventy percent of moneys spent under (a)(i) of this subsection for the period January 1, 1992, through December 31, 2000, shall be used only for the purchase, design, construction, and remodeling of performing arts, visual arts, heritage, and cultural facilities, and for the purchase of fixed assets that will benefit art, heritage, and cultural organizations. For purposes of this subsection, fixed assets are tangible objects such as machinery and other equipment intended to be held or used for ten years or more. Moneys received under this subsection (3)(((d))) (e) may be used for payment of principal and interest on bonds issued for capital projects. Qualifying organizations receiving moneys under this subsection (3)(((d))) (e) must be financially stable and have at least the following:
     (i) A legally constituted and working board of directors;
     (ii) A record of artistic, heritage, or cultural accomplishments;
     (iii) Been in existence and operating for at least two years;
     (iv) Demonstrated ability to maintain net current liabilities at less than thirty percent of general operating expenses;
     (v) Demonstrated ability to sustain operational capacity subsequent to completion of projects or purchase of machinery and equipment; and
     (vi) Evidence that there has been independent financial review of the organization.
     (((e))) (f) At least forty percent of the revenues distributed pursuant to (a)(i) of this subsection for the period January 1, 2001, through ((December 31, 2012,)) the effective date of this section shall be deposited in ((an)) a reserve account ((and shall be used to establish an endowment. Principal in the account shall remain permanent and irreducible)). The ((earnings from investments of balances in the)) account may only be used for the purposes of (a)(i) of this subsection.      (((f))) (g) School districts and schools shall not receive revenues distributed pursuant to (a)(i) or (d) of this subsection.
     (((g))) (h) Moneys distributed ((to art museums, cultural museums, heritage museums, the arts, and the performing arts,)) under (a)(i) of this subsection and moneys distributed for tourism promotion shall be in addition to and may not be used to replace or supplant any other funding by the legislative body of the county.
     (((h))) (i) As used in this section, "tourism promotion" includes activities intended to attract visitors for overnight stays, arts, heritage, and cultural events, and recreational, professional, and amateur sports events. Moneys allocated to tourism promotion in a class AA county shall be allocated to nonprofit organizations formed for the express purpose of tourism promotion in the county. Such organizations shall use moneys from the taxes to promote events in all parts of the class AA county.
     (((i))) (j) No taxes collected under this section may be used for the operation or maintenance of a public stadium that is financed directly or indirectly by bonds to which the tax is pledged. Expenditures for operation or maintenance include all expenditures other than expenditures that directly result in new fixed assets or that directly increase the capacity, life span, or operating economy of existing fixed assets.
     (((j))) (k) No ad valorem property taxes may be used for debt service on bonds issued for a public stadium that is financed by bonds to which the tax is pledged, unless the taxes collected under this section are or are projected to be insufficient to meet debt service requirements on such bonds.
     (((k))) (l) If a substantial part of the operation and management of a public stadium that is financed directly or indirectly by bonds to which the tax is pledged is performed by a nonpublic entity or if a public stadium is sold that is financed directly or indirectly by bonds to which the tax is pledged, any bonds to which the tax is pledged shall be retired or defeased. This subsection (3)(((k))) (l) does not apply in respect to a public stadium under chapter 36.102 RCW transferred to, owned by, or constructed by a public facilities district under chapter 36.100 RCW ((or)), a stadium and exhibition center, or a regional center as defined in RCW 35.57.020 which is acquired, developed, constructed, owned, leased, financed, or operated by a public facilities district pursuant to RCW 36.100.030.
     (((l))) (m) The county shall not lease a public stadium that is financed directly or indirectly by bonds to which the tax is pledged to, or authorize the use of the public stadium by, a professional major league sports franchise unless the sports franchise gives the right of first refusal to purchase the sports franchise, upon its sale, to local government. This subsection (3)(((l))) (m) does not apply to contracts in existence on April 1, 1986, or to the lease or use of a regional center as defined in RCW 35.57.020 which is acquired, developed, constructed, owned, leased, financed, or operated by a public facilities district pursuant to RCW 36.100.030.
     If a court of competent jurisdiction declares any provision of this subsection (3) invalid, then that invalid provision shall be null and void and the remainder of this section is not affected.

Sec. 205   RCW 82.14.049 and 1997 c 220 s 502 are each amended to read as follows:
     The legislative authority of any county may impose a sales and use tax, in addition to the tax authorized by RCW 82.14.030, upon retail car rentals within the county that are taxable by the state under chapters 82.08 and 82.12 RCW. The rate of tax shall be one percent of the selling price in the case of a sales tax or rental value of the vehicle in the case of a use tax. Proceeds of the tax ((shall not be used to subsidize any professional sports team and)) shall be used solely for the following purposes:
     (1) Acquiring, constructing, maintaining, financing, or operating public sports stadium facilities or regional centers, as defined in RCW 35.57.020;
     (2) Engineering, planning, financial, legal, or professional services incidental to public sports stadium facilities or regional centers, as defined in RCW 35.57.020;
     (3) Youth or amateur sport activities or facilities; ((or))
     (4) Debt or refinancing debt issued for the purposes of subsection (1) of this section; or
     (5) If bonds for construction of a regional center have been issued under section 302 of this act, the following condition applies in a county with a population of one million or more: Following the retirement or defeasement of bonded indebtedness incurred prior to January 1, 1997, or refinancing of such bonded indebtedness, for any purpose authorized by RCW 67.28.180 or relating to stadium repairs or rehabilitation, including but not limited to the cost of settling legal claims, reimbursing operating funds, interest payments on short-term loans, and any other purpose for which such debt has been incurred, at least seventy-five percent of the proceeds of the tax may be used only for the purposes set forth in section 301 of this act.
     (6) Except as provided in subsection (5) of this section, at least seventy-five percent of the tax imposed under this section shall be used for the purposes of subsections (1), (2), and (4) of this section.

Sec. 206   RCW 36.100.090 and 1995 1st sp.s. c 14 s 6 are each amended to read as follows:
     (1) The governing board of a public facilities district may apply for deferral of taxes on the construction of buildings, site preparation, and the acquisition of related machinery and equipment for a new public facility. Application shall be made to the department of revenue in a form and manner prescribed by the department of revenue. The application shall contain information regarding the location of the public facility, estimated or actual costs, time schedules for completion and operation, and other information required by the department of revenue. The department of revenue shall approve the application within sixty days if it meets the requirements of this section.
     (2) The department of revenue shall issue a sales and use tax deferral certificate for state and local sales and use taxes due under chapters 82.08, 82.12, and 82.14 RCW on the public facility. The use of the certificate shall be governed by rules established by the department of revenue.
     (3) The public facilities district shall begin paying the deferred taxes in the fifth year after the date certified by the department of revenue as the date on which the public facility is operationally complete. The first payment is due on December 31st of the fifth calendar year after such certified date, with subsequent annual payments due on December 31st of the following nine years. Each payment shall equal ten percent of the deferred tax.
     (4) The department of revenue may authorize an accelerated repayment schedule upon request of the public facilities district.
     (5) Interest shall not be charged on any taxes deferred under this section for the period of deferral, although all other penalties and interest applicable to delinquent excise taxes may be assessed and imposed for delinquent payments under this section. The debt for deferred taxes is not extinguished by insolvency or other failure of the public facilities district.
     (6) 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.
     (7) As used in this section, "public facility" means a baseball stadium with a retractable roof or canopy and natural turf, or a regional center financed under section 302 of this act.

Sec. 207   RCW 82.29A.130 and 2005 c 514 s 601 and 2005 c 170 s 1 are each reenacted and amended to read as follows:
     The following leasehold interests shall be exempt from taxes imposed pursuant to RCW 82.29A.030 and 82.29A.040:
     (1) All leasehold interests constituting a part of the operating properties of any public utility which is assessed and taxed as a public utility pursuant to chapter 84.12 RCW.
     (2) All leasehold interests in facilities owned or used by a school, college or university which leasehold provides housing for students and which is otherwise exempt from taxation under provisions of RCW 84.36.010 and 84.36.050.
     (3) All leasehold interests of subsidized housing where the fee ownership of such property is vested in the government of the United States, or the state of Washington or any political subdivision thereof but only if income qualification exists for such housing.
     (4) All leasehold interests used for fair purposes of a nonprofit fair association that sponsors or conducts a fair or fairs which receive support from revenues collected pursuant to RCW 67.16.100 and allocated by the director of the department of agriculture where the fee ownership of such property is vested in the government of the United States, the state of Washington or any of its political subdivisions: PROVIDED, That this exemption shall not apply to the leasehold interest of any sublessee of such nonprofit fair association if such leasehold interest would be taxable if it were the primary lease.
     (5) All leasehold interests in any property of any public entity used as a residence by an employee of that public entity who is required as a condition of employment to live in the publicly owned property.
     (6) All leasehold interests held by enrolled Indians of lands owned or held by any Indian or Indian tribe where the fee ownership of such property is vested in or held in trust by the United States and which are not subleased to other than to a lessee which would qualify pursuant to this chapter, RCW 84.36.451 and 84.40.175.
     (7) All leasehold interests in any real property of any Indian or Indian tribe, band, or community that is held in trust by the United States or is subject to a restriction against alienation imposed by the United States: PROVIDED, That this exemption shall apply only where it is determined that contract rent paid is greater than or equal to ninety percent of fair market rental, to be determined by the department of revenue using the same criteria used to establish taxable rent in RCW 82.29A.020(2)(b).
     (8) All leasehold interests for which annual taxable rent is less than two hundred fifty dollars per year. For purposes of this subsection leasehold interests held by the same lessee in contiguous properties owned by the same lessor shall be deemed a single leasehold interest.
     (9) All leasehold interests which give use or possession of the leased property for a continuous period of less than thirty days: PROVIDED, That for purposes of this subsection, successive leases or lease renewals giving substantially continuous use of possession of the same property to the same lessee shall be deemed a single leasehold interest: PROVIDED FURTHER, That no leasehold interest shall be deemed to give use or possession for a period of less than thirty days solely by virtue of the reservation by the public lessor of the right to use the property or to allow third parties to use the property on an occasional, temporary basis.
     (10) All leasehold interests under month-to-month leases in residential units rented for residential purposes of the lessee pending destruction or removal for the purpose of constructing a public highway or building.
     (11) All leasehold interests in any publicly owned real or personal property to the extent such leasehold interests arises solely by virtue of a contract for public improvements or work executed under the public works statutes of this state or of the United States between the public owner of the property and a contractor.
     (12) All leasehold interests that give use or possession of state adult correctional facilities for the purposes of operating correctional industries under RCW 72.09.100.
     (13) All leasehold interests used to provide organized and supervised recreational activities for ((disabled)) persons with disabilities of all ages in a camp facility and for public recreational purposes by a nonprofit organization, association, or corporation that would be exempt from property tax under RCW 84.36.030(1) if it owned the property. If the publicly owned property is used for any taxable purpose, the leasehold excise taxes set forth in RCW 82.29A.030 and 82.29A.040 shall be imposed and shall be apportioned accordingly.
     (14) All leasehold interests in the public or entertainment areas of a baseball stadium with natural turf and a retractable roof or canopy that is in a county with a population of over one million, that has a seating capacity of over forty thousand, and that is constructed on or after January 1, 1995. "Public or entertainment areas" include ticket sales areas, ramps and stairs, lobbies and concourses, parking areas, concession areas, restaurants, hospitality and stadium club areas, kitchens or other work areas primarily servicing other public or entertainment areas, public rest room areas, press and media areas, control booths, broadcast and production areas, retail sales areas, museum and exhibit areas, scoreboards or other public displays, storage areas, loading, staging, and servicing areas, seating areas and suites, the playing field, and any other areas to which the public has access or which are used for the production of the entertainment event or other public usage, and any other personal property used for these purposes. "Public or entertainment areas" does not include locker rooms or private offices exclusively used by the lessee.
     (15) All leasehold interests in the public or entertainment areas of a stadium and exhibition center, as defined in RCW 36.102.010, that is constructed on or after January 1, 1998. For the purposes of this subsection, "public or entertainment areas" has the same meaning as in subsection (14) of this section, and includes exhibition areas.
     (16) All leasehold interests in public facilities districts, as provided in chapter 36.100 or 35.57 RCW.
     (17) All leasehold interests in property that is: (a) Owned by a municipal corporation; (b) listed on any federal or state register of historical sites; and (c) wholly contained within a designated national historic reserve under 16 U.S.C. Sec. 461.
     (18) All leasehold interests in the public or entertainment areas of an amphitheater if a private entity is responsible for one hundred percent of the cost of constructing the amphitheater which is not reimbursed by the public owner, both the public owner and the private lessee sponsor events at the facility on a regular basis, the lessee is responsible under the lease or agreement to operate and maintain the facility, and the amphitheater has a seating capacity of over seventeen thousand reserved and general admission seats and is in a county with a population of over three hundred fifty thousand, but less than four hundred twenty-five thousand. For the purposes of this subsection, "public or entertainment areas" include box offices or other ticket sales areas, entrance gates, ramps and stairs, lobbies and concourses, parking areas, concession areas, restaurants, hospitality areas, kitchens or other work areas primarily servicing other public or entertainment areas, public rest room areas, press and media areas, control booths, broadcast and production areas, retail sales areas, museum and exhibit areas, scoreboards or other public displays, storage areas, loading, staging, and servicing areas, seating areas including lawn seating areas and suites, stages, and any other areas to which the public has access or which are used for the production of the entertainment event or other public usage, and any other personal property used for these purposes. "Public or entertainment areas" does not include office areas used predominately by the lessee.
     (19) All leasehold interests in the public or entertainment areas of a regional center financed under section 302 of this act. For the purposes of this subsection, "public or entertainment areas" has the same meaning as in subsection (14) of this section, and includes exhibition areas.

Sec. 208   RCW 36.38.010 and 1999 c 165 s 20 are each amended to read as follows:
     (1) Any county may by ordinance enacted by its county legislative authority, levy and fix a tax of not more than one cent on twenty cents or fraction thereof to be paid for county purposes by persons who pay an admission charge to any place, including 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 or similar privileges or accommodations; and require that one who receives any admission charge to any place shall collect and remit the tax to the county treasurer of the county: PROVIDED, No county 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.
     (2) As used in this chapter, the term "admission charge" includes a charge made for season tickets or subscriptions, a cover charge, or a charge made for use of seats and tables, reserved or otherwise, and other similar accommodations; a charge made for food and refreshments in any place where any free entertainment, recreation, or amusement is provided; a charge made for rental or use of equipment or facilities for purpose of recreation or amusement, and where 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. It shall also include any automobile parking charge where the amount of such charge is determined according to the number of passengers in any automobile.
     (3) Subject to subsections (4) and (5) of this section, the tax herein authorized shall not be exclusive and shall not prevent any city or town within the taxing county, when authorized by law, from imposing within its corporate limits a tax of the same or similar kind: PROVIDED, That whenever the same or similar kind of tax is imposed by any such city or town, no such tax shall be levied within the corporate limits of such city or town by the county.
     (4) Notwithstanding subsection (3) of this section, the legislative authority of a county with a population of one million or more may exclusively levy taxes on events in baseball stadiums 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 at the rates of:
     (a) Not more than one cent on twenty cents or fraction thereof, to be used for the purpose of paying the principal and interest payments on bonds issued by a county to construct a baseball stadium as defined in RCW 82.14.0485. If the revenue from the tax exceeds the amount needed for that purpose, the excess shall be placed in a contingency fund which may only be used ((to pay unanticipated capital costs on the baseball stadium, excluding any cost overruns on initial construction)) by the public facilities district to fund repair, reequipping, and capital improvement of the baseball stadium; and
     (b) Not more than one cent on twenty cents or fraction thereof, to be used for the purpose of paying the principal and interest payments on bonds issued by a county to construct a baseball stadium as defined in RCW 82.14.0485. The tax imposed under this subsection (4)(b) shall expire when the bonds issued for the construction of the baseball stadium are retired, but not later than twenty years after the tax is first collected.
     (5) Notwithstanding subsection (3) of this section, the legislative authority of a county that has created a public stadium authority to develop a stadium and exhibition center under RCW 36.102.050 may levy and fix a tax on charges for admission to events in a stadium and exhibition center, as defined in RCW 36.102.010, constructed in the county on or after January 1, 1998, that is owned by a public stadium authority under chapter 36.102 RCW. The tax shall be exclusive and shall preclude the city or town within which the stadium and exhibition center is located from imposing a tax of the same or similar kind on charges for admission to events in the stadium and exhibition center, and shall preclude the imposition of a general county admissions tax on charges for admission to events in the stadium and exhibition center. For the purposes of this subsection, "charges for admission to events" means only the actual admission charge, exclusive of taxes and service charges and the value of any other benefit conferred by the admission. The tax authorized under this subsection shall be at the rate of not more than one cent on ten cents or fraction thereof. Revenues collected under this subsection shall be deposited in the stadium and exhibition center account under RCW 43.99N.060 until the bonds issued under RCW 43.99N.020 for the construction of the stadium and exhibition center are retired. After the bonds issued for the construction of the stadium and exhibition center are retired, the tax authorized under this section shall be used exclusively to fund repair, reequipping, and capital improvement of the stadium and exhibition center. The tax under this subsection may be levied upon the first use of any part of the stadium and exhibition center but shall not be collected at any facility already in operation as of July 17, 1997.

NEW SECTION.  Sec. 300   It is the intent of the legislature that revenues sufficient to support the funding of a new regional center in a county with a population of one million or more will be provided from the following sources: Continuing the 0.5 percent food and beverage tax and the two percent car rental taxes until expiration at the end of 2015, using the existing 0.75 percent car rental tax for the new regional center beginning in 2015, and using the existing two percent hotel and motel tax for the new regional center beginning in 2021. The existing sales tax credit of .017 percent is made available to the county beyond its expected expiration date of 2012, for the purpose of renovation and repair of existing public facilities including youth ball fields. This revenue will also be available for funding arts and cultural activities, as well as coverage on bonds issued for the new regional center, if needed. The existing sales tax credit of .016 percent is made available to the county beyond its expected expiration date of 2021, for the purpose of funding arts and cultural activities. All of these funding sources are limited to the county and must be enacted by county ordinance.

NEW SECTION.  Sec. 301   A new section is added to chapter 36.100 RCW to read as follows:
     (1) For the purposes of sections 301 through 303 of this act, "debt service" means: (a) Principal, interest, premium, if any, or purchase price of a bond; (b) amounts due to a credit enhancement provider, trustee, paying agent, or remarketing agent; (c) amounts necessary to fund bond debt service reserves; and (d) amounts due under a payment agreement entered into pursuant to chapter 39.96 RCW.
     (2) From January 1, 2013, through December 31, 2020, revenues identified for the purposes of this section in RCW 82.14.0485, 82.14.0494, 82.14.360, 67.28.180, and 82.14.049 may be used only for the following purposes in the following order of priority:
     (a) To fund art museums, cultural museums, heritage museums, heritage and preservation programs, the arts, and the performing arts in annual amounts as determined by the county legislative authority;
     (b) An annual amount as determined by the county legislative authority shall be paid to and held in a dedicated account created by such county to be called the "major facilities account," to be used in accordance with section 303 of this act; and
     (c) The excess of such public facilities revenues after application of (a) and (b) of this subsection, shall be paid to and held by the treasurer of the county in which the revenue sources are collected, to be held in a segregated fund created by such county to be called the "regional center account." Upon satisfaction of any conditions precedent to the financing, site acquisition, development, design, construction, furnishing, or equipping of a regional center as defined in RCW 35.57.020 that are imposed by the legislative authority of the county, which creates a public facilities district to develop such a regional center, public facilities revenues collected in any calendar year after application of (a) and (b) of this subsection, together with funds then held in the regional center account, shall be retained by the county, or transferred to a city in which such a regional center is to be located or a public facilities district that is created by the county to develop such a regional center, and used in accordance with section 302 of this act to pay for the costs and expenses described in subsection (4) of this section.
     (3) On and after January 1, 2021:
     (a) Revenues identified for the purposes of this section in RCW 82.14.360, 67.28.180, and 82.14.049 shall be deposited in the regional center account created under subsection (2) of this section.
     (b) Revenues identified for the purposes of this section in RCW 82.14.0494 may be used only to fund art museums, cultural museums, heritage museums, heritage and preservation programs, the arts, and the performing arts, in all parts of the county.
     (c) Revenues identified for the purposes of this section in RCW 82.14.0485 may be used only for:
     (i) Payment of debt service for bonds issued under section 302 of this act during a calendar year, if the revenues under (a) of this subsection collected during that calendar year are inadequate to pay that debt service;
     (ii) Funding art museums, cultural museums, heritage museums, heritage and preservation programs, the arts, and the performing arts, in all parts of the county, in annual amounts as determined by the county legislative authority; or
     (iii) Deposit in the major facilities account created under subsection (2) of this section, in annual amounts as determined by the county legislative authority.
     (4) Proceeds from the bonds described in section 302 of this act may be used to pay for any and all of the following costs and expenses:
     (a) The costs of formation and operation of the public facilities district until such costs can be paid by rent or other income from a regional center or other sources;
     (b) Direct and indirect costs and expenses of financing, site acquisition, development, design, construction, furnishing, and equipping of a regional center that includes an arena with a seating capacity of at least fifteen thousand persons;
     (c) The costs of issuance, credit enhancement, and maintenance of the bonds described in section 302 of this act, including any capitalized interest, and scheduled debt service payments, and the costs of any other bonds used to refinance such bonds described in section 302 of this act;
     (d) The cost of debt service incurred by a county, city, or public facilities district to finance any costs and expenses described in (a) through (c) of this subsection;
     (e) The cost of reimbursement of a county, city, or public facilities district for its expenditures to pay any costs and expenses in (a) through (c) of this subsection; and
     (f) The costs of satisfying any contractual obligations of a county, city, or public facilities district to pay any costs and expenses in (a) through (c) of this subsection.
     (5) After all bonds described in section 302 of this act are retired or defeased, then all public facilities revenues collected in any future calendar year, together with all public facilities revenues then held by the county or city, or public facilities district, including all funds held pursuant to section 302(4)(b) of this act, shall be paid to and held in the "major facilities account," of the county, to be used in accordance with section 303 of this act.

NEW SECTION.  Sec. 302   A new section is added to chapter 36.100 RCW to read as follows:
     (1) A county with a population of one million or more that has created a public facilities district to develop a regional center as defined in RCW 35.57.020, and, subject to the approval of such county, a city in which such a regional center is or is proposed to be located, or a public facilities district that is created by the county to develop such a regional center, are each authorized to issue general obligation bonds or revenue bonds, for a term of up to twenty-five years, in an amount determined by the legislative authority of the county, city, or public facilities district issuing the bonds as the amount necessary to pay the costs described in section 301(4) of this act.
     (2) The net proceeds of bonds payable from revenues deposited in the regional center account under section 301 of this act shall not exceed three hundred million dollars. For the purposes of this limitation "net proceeds" means gross bond proceeds less costs of credit enhancement and other costs of issuance and less any deposits to fund reasonable debt service reserves for the bonds and shall not include earnings on any portion of gross bond proceeds.
     (3) Proceeds from the sale of the bonds described in subsection (1) of this section shall be paid to and held by the treasurer of the county, city, or public facilities district issuing the bonds. At the direction of the treasurer or the treasurer's designee, proceeds from the sale of such bonds shall be transferred to and used by the public facilities district as required to pay the costs described in section 301(4) of this act.
     (4) After bonds are issued under subsection (1) of this section, the excess of public facilities revenues collected in any calendar year after application of section 301(2)(a) and (b) of this act shall be paid to and used exclusively by the issuer of the bonds for the following purposes in the following priority:
     (a) To pay current annual debt service;
     (b) To fund and maintain the reserve for the payment of future debt service as such issuer of the bonds shall deem appropriate or as otherwise required; and
     (c) The excess in any year, if any, shall be used for the early retirement or defeasement of the bonds described in this section.

NEW SECTION.  Sec. 303   A new section is added to chapter 36.100 RCW to read as follows:
     (1) The major facilities account shall be used for the purpose of funding:
     (a) The costs of modernization, improvements, and renovations of sports facilities, recreational facilities, youth or amateur sports facilities, entertainment facilities, convention facilities, and regional centers located within the county;
     (b) The costs of issuance and debt service of any bonds issued the proceeds of which are used to pay the costs described in (a) of this subsection, or any other bonds used to refinance such bonds; and
     (c) The costs of operation of any public authority which owns and operates such facilities.
     (2) The application, allocation, timing, and use of any funds in the major facilities account shall be in the discretion of the legislative authority of the county.

Sec. 304   RCW 67.28.1815 and 1997 c 452 s 4 are each amended to read as follows:
     Except as provided in RCW 67.28.180, all revenue from taxes imposed under this chapter shall be credited to a special fund in the treasury of the municipality imposing such tax and used solely for the purpose of paying all or any part of the cost of tourism promotion, acquisition of tourism-related facilities, or operation of tourism-related facilities. Municipalities may, under chapter 39.34 RCW, agree to the utilization of revenue from taxes imposed under this chapter for the purposes of funding a multijurisdictional tourism-related facility.

NEW SECTION.  Sec. 401   Part headings used in this act are not any part of the law.

NEW SECTION.  Sec. 402   If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION.  Sec. 403   The provisions of this act shall be liberally construed to effect the policies and purposes of this act.