"Sec. 1   RCW 43.167.010 and 2007 c 501 s 3 are each amended to read as follows:
     (1) The residents, property owners, employees, or business owners of an impacted community may propose formation of a community preservation and development authority. The proposal to form ((a community preservation and development)) an authority must be presented in writing to the ((appropriate legislative committee in both the house of representatives and the senate)) local legislative authority or authorities. The proposal must contain proposed general geographic boundaries that will be used to define the community for the purposes of the authority. Proposals ((presented after January 1, 2008,)) must identify ((in its proposal)) one or more stable revenue sources that (a) have a nexus with the multiple publicly funded facilities that have adversely impacted the community, and (b) can be used to support future operating or capital projects that will be identified in the strategic plan required under RCW 43.167.030.
     (2) Formation of the community preservation and development authority is subject to local legislative authorization by ((statute)) ordinance. Prior to authorizing the formation of an authority, the ((legislature)) local legislative authority or authorities must find that (a) the area within the proposal's geographic boundaries meets the ((definition)) needs of the "impacted community" ((contained in section 2(4) of this act)); and (b) those persons that have brought forth the proposal are members of the impacted community ((as defined in section 2(1) of this act)); and, if the authority were approved, would ((meet the definition of)) be the general membership constituency ((contained in section 2(3) of this act)) of the authority. For proposals brought after January 1, 2008, the ((legislature)) local legislative authority or authorities must also find that the community has identified one or more stable revenue sources as required in subsection (1) of this section. The ((legislature)) local legislative authority or authorities may then act to authorize the establishment of the ((community preservation and development)) authority ((in law)) by ordinance.
     (3) The affairs of a community preservation and development authority shall be managed by a board of directors, consisting of the following members:
     (a) Two members who own, operate, or represent businesses within the community;
     (b) Two members who reside in the community;
     (c) Two members who are involved in providing nonprofit community or social services within the community;
     (((c))) (d) Two members who are involved in the arts and entertainment within the community;
     (((d))) (e) Two members with knowledge of the community's culture and history; ((and
     (e))) (f) One member who is involved in a nonprofit or public planning organization that directly serves the impacted community; and
     (g) Two representatives of the local legislative authority or authorities, as ex officio members.
     (4) No member of the board shall hold office for more than four years. Board positions shall be numbered one through ((nine)) thirteen, and the terms staggered shall be as follows:
     (a) Board members elected to positions one through five shall serve two-year terms, and if reelected, may serve no more than one additional two-year term.
     (b) Board members initially elected to positions six through ((nine)) eleven shall serve a three-year term only.
     (c) Board members elected to positions six through ((nine)) eleven after the initial three-year term shall serve two-year terms, and if reelected, may serve no more than one additional two-year term.
     (d) Board members twelve and thirteen shall serve until replaced by the local legislative authority or authorities.
     (5) ((With respect to an authority's)) The initial board of directors((: The state legislative delegation)) of an authority shall be established through the election process established in this subsection. Two or more members of the local legislative authority or authorities, and those proposing formation of the authority, shall jointly establish a committee to develop a list of candidates to stand for election ((once)) after the authority has received legislative approval as ((established)) provided in subsection (2) of this section. ((For the purpose of developing the list and identifying those persons who meet the criteria in subsection (3)(a) through (e) of this section, community shall mean the proposed geographic boundaries as set out in the proposal.)) The ((board of)) initial directors shall be elected by the constituency during a meeting convened for that purpose by two or more members of the ((state)) local legislative ((delegation)) authority or authorities.
     (6) ((With respect to subsequent elections of an authority's board of directors:)) Subsequent directors shall be determined through the election process established in this subsection. A list of candidates shall be developed by the authority's existing ((board of)) directors and the election shall be held during the annual local town hall meeting as required in RCW 43.167.030.

Sec. 2   RCW 43.167.020 and 2007 c 501 s 4 are each amended to read as follows:
     (1) A community preservation and development authority shall have the power to:
     (a) Accept gifts, grants, loans, or other aid from public or private entities; ((and
     (b) Exercise such additional powers as may be authorized by law))
     (b) Employ and appoint such agents, attorneys, officers, and employees as may be necessary to implement the purposes and duties of an authority;
     (c) Contract and enter into partnerships with individuals, associations, corporations, and local, state, and federal governments;
     (d) Buy, own, lease, and sell real and personal property;
     (e) Hold in trust, improve, and develop land;
     (f) Invest, deposit, and reinvest its funds; and
     (g) Exercise additional powers as may be authorized by law.
     (2) A community preservation and development authority ((shall have)) has no power of eminent domain nor any power to levy taxes or special assessments.
     (3) A community preservation and development authority that accepts public funds under subsection (1)(a) of this section:
     (a) Is subject in all respects to Article VIII, section 5 or 7, as appropriate, of the state Constitution, and to RCW 42.17.128; and
     (b) May not use the funds to support or oppose a candidate, ballot proposition, political party, or political committee.

Sec. 3   RCW 43.167.030 and 2007 c 501 s 5 are each amended to read as follows:
     A community preservation and development authority shall have the duty to:
     (1) Establish specific geographic boundaries for the authority within its bylaws based on the general geographic boundaries established in the proposal submitted and approved by the legislature;
     (2) Solicit input from members of its community and develop a strategic preservation and development plan to restore and promote the health, safety, and economic well-being of the impacted community and to restore and preserve its cultural and historical identity;
     (3) Include within the strategic plan a prioritized list of projects identified and supported by the community, including capital or operating components that address one or more of the purposes under ((section 1(3) of this act)) this chapter;
     (4) Establish funding mechanisms to support projects and programs identified in the strategic plan including but not limited to grants and loans;
     (5) Use gifts, grants, loans, and other aid from public or private entities to carry out projects identified in the strategic plan including, but not limited to, those that: (a) Enhance public safety; (b) reduce community blight; (c) provide ongoing mitigation of the adverse effects of multiple publicly funded projects on the impacted community; and (d) address other purposes consistent with this chapter; and
     (6) Demonstrate ongoing accountability for its actions by:
     (a) Reporting to the appropriate committees of the legislature and the local legislative authority or authorities, one year after formation and every biennium thereafter, on the authority's strategic plan, activities, accomplishments, and any recommendations for statutory changes;
     (b) Reporting any changes in the authority's geographic boundaries to the appropriate committees of the legislature when the legislature next convenes in regular session and immediately to the local legislative authority or authorities;
     (c) Convening a local town hall meeting with its constituency on an annual basis to: (i) Report its activities and accomplishments from the previous year; (ii) present and receive input from members of the impacted community regarding its proposed strategic plan and activities for the upcoming year; and (iii) hold board member elections as necessary; and
     (d) Maintaining books and records as appropriate for the conduct of its affairs.

Sec. 4   RCW 43.167.050 and 2007 c 501 s 8 are each amended to read as follows:
     Prior to making siting, design, and construction decisions for future major public facilities, public works projects, or capital projects with significant public funding, state and local government agencies ((may)) must:
     (1) Communicate and consult with the community preservation and development authority and impacted community, including assessing the compatibility of the proposed project with the strategic plan adopted by the authority; and
     (2) Make reasonable efforts to ensure that negative, cumulative effects of multiple projects upon the impacted community are minimized."