BILL REQ. #:  H-1983.1 

READ FIRST TIME 02/23/09.   

     AN ACT Relating to creating community facilities districts; adding a new section to chapter 82.02 RCW; and creating new sections.

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

NEW SECTION.  Sec. 101   The legislature finds that:
     (1) The state is projected to experience substantial population and employment growth in the next two decades and this growth will require substantial new housing, places of employment, community facilities, and supporting local, subregional, and regional infrastructure;
     (2) In most areas of the state projected to accommodate substantial growth, there are inadequate community facilities and infrastructure to facilitate and support such growth. In addition, there is inadequate public financing and public financing mechanisms available to provide the needed community facilities and local, subregional, and regional infrastructure;
     (3) A more flexible type of financing mechanism known as a community facilities district should be available to counties, cities, and towns so that needed community facilities and local, subregional, and regional infrastructure can be provided; and
     (4) This act is intended to facilitate voluntary landowner financing of community facilities and local, subregional, and regional infrastructure by authorizing the creation of community facilities districts.

NEW SECTION.  Sec. 102   The definitions in this section apply throughout this title unless the context clearly requires otherwise.
     (1) "Community facilities commission" or "commission" means the governing body of a community facilities district.
     (2) "Community facilities district" or "district" means 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 that has been created by a vote of the people under this title to implement a community facilities district.
     (3) "Petition" means a voluntary landowner request for formation of a community facilities district and a request to submit their land to the taxes and benefit charges authorized under this title consistent with the requirements provided in section 202 of this act. Petition also means any amended petition filed consistent with the requirements provided in section 202 of this act.

NEW SECTION.  Sec. 201   Community facilities districts are authorized to be established as provided in this title.

NEW SECTION.  Sec. 202   For the purpose of the formation of a community facilities district, a petition must be filed with the county, city, or town in which the district is located. The petition must be executed by all persons having an ownership interest of record in the lands within the proposed district including a certification of their desire to voluntarily submit their land located within the district to the taxes and benefit charges authorized under this title, designating the boundaries of the proposed district, by metes and bounds, or by describing the lands to be included in the proposed district by United States townships, ranges, and legal subdivisions, setting forth the object, plan, and financing for the creation of the proposed district and must allege that the establishment of the proposed district will be conducive to the public safety, welfare, and convenience, and will be a benefit to the property included in the proposed district. The petition must be accompanied by an obligation signed by two or more petitioners, agreeing to pay the cost of the formation processes required by this title. Any petition may, from time to time, be amended so long as it is executed by all persons having an ownership interest of record in the lands within the district or proposed district.

NEW SECTION.  Sec. 203   A public hearing on the petition must be held by the legislative authority of the county, city, or town in which the proposed district is located not less than twenty nor more than forty days from the date of receipt of the petition.

NEW SECTION.  Sec. 204   Notice of the public hearing must be published for three consecutive weeks in the official paper of the applicable county, city, or town prior to the date set for the hearing and must be posted for not less than fifteen days prior to the date of the hearing in each of three public places within the boundaries of the proposed district. The notices must contain the time, date, and place of the public hearing.

NEW SECTION.  Sec. 205   At the time and place of the hearing set for the petition, the applicable legislative authority must consider the petition and must receive evidence as it deems material in favor of or opposed to the formation of the district or to the inclusion or exclusion of any lands. No lands outside of the boundaries of the proposed district described in the petition may be included within the district without a written petition meeting the requirements as provided in section 202 of this act.

NEW SECTION.  Sec. 206   The legislative authority for the county, city, or town in which the proposed district is located has the authority to consider the petition and, if it finds that the lands or any portion of the lands described in the petition, and any lands added thereto by petition of those interested, will be benefited and that the formation of the district will be conducive to the public safety, welfare, and convenience, it must make a finding by resolution; otherwise it must deny the petition. If the legislative authority approves the petition, said approval must be consistent with the terms and conditions of the petition and must designate the name and number of the district.

NEW SECTION.  Sec. 207   Any person or entity having a substantial interest and feeling aggrieved by any finding, determination, or resolution of the legislative authority in the proceedings for the organization of a community facilities district under this title may appeal within five days after the action of the legislative authority, to the superior court of the county, in the same manner as provided by law for appeals from the orders and determinations of the applicable legislative authority.

NEW SECTION.  Sec. 208   After the expiration of five days from the approval of the resolution of the legislative authority declaring the district to be organized, and the filing of the certified copies of the resolution, the creation of the district is complete and its legal existence cannot thereafter be questioned by any person by reason of a defect in the proceedings for the organization of the district.

NEW SECTION.  Sec. 209   Upon expiration of the appeal period provided for under section 207 of this act or, upon judicial resolution of an appeal upholding and confirming the formation of the district, the election officials of the county, city, or town in which the district is located must hold an election for the initial community facilities commissioners in accordance with the general election laws of the state. The commission must always be composed of the following three members (1) the largest landowner within the district, (2) a voter residing within the district, and (3) an elected official from the legislative authority of the county, city, or town approving the formation of the district. This election must be held at the next general election date according to RCW 29A.04.321 and 29A.04.330, which occurs after the date of the action by the legislative authority approving the petition. The largest landowner in the district must automatically be added to the ballot and only requires one vote to be approved as a commissioner. With respect to position number two, any voter residing within the district may add their name to the ballot. With respect to position number three, the appropriate legislative authority must nominate one or more of its members for candidacy. The legislative authority must declare the candidates receiving the highest number of votes to be the initial community facilities commissioners of the district. The term of office for each commissioner is six years.

NEW SECTION.  Sec. 301   The affairs of the district must be managed by the commission.

NEW SECTION.  Sec. 302   The polling places for the election of the community facilities district commissioners may be located inside or outside the boundaries of the district and the election may not be held to be irregular or void on that account.

NEW SECTION.  Sec. 303   Before beginning the duties of office, each community facilities commissioner must take and subscribe the official oath for the faithful discharge of the duties of office as required by RCW 29A.04.133, which oath must be filed in the office of the auditor of the county in which all, or the largest portion of, the district is located.

NEW SECTION.  Sec. 304   All meetings of the commission must be conducted in accordance with chapter 42.30 RCW and a majority constitutes a quorum for the transaction of business. All records of the commission must be open to inspection in accordance with chapter 42.56 RCW. The commission has the power and duty to adopt a seal of the district, to manage and conduct the business affairs of the district, to make and execute all necessary contracts, to employ any necessary services, and to adopt reasonable rules to govern the district and to perform its functions, and generally to perform all acts as may be necessary to carry out the objects of the creation of the district.

NEW SECTION.  Sec. 401   Community facilities districts created under this title are political subdivisions of the state and are held to be municipal corporations within the laws and Constitution of the state of Washington. A community facilities district constitutes a body corporate and possesses 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 law. Notwithstanding any and all of the powers of the district granted by the laws and Constitution of the state and by this title, all actions of the district must be consistent with the terms and conditions of the petition or amended petition.

NEW SECTION.  Sec. 402   Community facilities districts have full authority to carry out their purposes and to that end may acquire, purchase, hold, lease, manage, occupy, construct, and sell real and personal property, facilities, or any interest therein, to enter into and to perform any and all necessary contracts, to appoint and employ the necessary officers, agents, and employees, to sue and be sued, to levy and enforce the collection of taxes, assessments, and benefit charges in the manner and subject to the limitations provided in this title against the lands within the district for district revenues, and to do any and all lawful acts required and expedient to carry out the purpose of this title.

NEW SECTION.  Sec. 403   Any community facilities district organized under this title may:
     (1) Lease, acquire, own, maintain, operate, construct, and provide community facilities apparatus and all other necessary or proper facilities, machinery, and equipment for community facilities operations and projects;
     (2) Lease, acquire, own, maintain, construct, and operate real property, improvements, and fixtures for housing, repairing, and maintaining the apparatus, facilities, machinery, and equipment described in subsection (1) of this section;
     (3) Contract with any governmental entity under chapter 39.34 RCW or private person or entity to consolidate, provide, or cooperate for community facilities operations and projects. In so contracting, the district or governmental entity is deemed for all purposes to be acting within its governmental capacity; and
     (4) Perform acts consistent with this title and not otherwise prohibited by law.

NEW SECTION.  Sec. 404   Community facilities districts may execute executory conditional sales contracts, installment promissory notes secured by a deed of trust, or mortgages with a governmental entity or a private party for the purchase or sale of any real or personal property, or property rights.

NEW SECTION.  Sec. 405   (1) Consistent with the terms and conditions set forth in a petition filed under this title, a community facilities district may finance through the use of taxes, assessments, and benefit charges, as provided in this title, the cost of purchase, construction, expansion, improvement, or rehabilitation of any facility with an estimated life of five years or longer or may finance planning and design work that is directly related to the purchase, construction, expansion, improvement, or rehabilitation of any facility.
     (2) A community facilities district may finance facilities including, but not limited to, the following:
     (a) Facilities listed in RCW 35.43.040 to the extent not specified in this section;
     (b) Sanitary sewage systems, including collection, transport, storage, treatment, dispersal, effluent use, and discharge;
     (c) Drainage and flood control systems, including collection, transport, diversion, storage, detention, retention, dispersal, use, and discharge;
     (d) Water systems for domestic, industrial, irrigation, municipal, or community facilities purposes, including production, collection, storage, treatment, transport, delivery, connection, and dispersal;
     (e) Highways, streets, roadways, and parking facilities, including all areas for vehicular use for travel, ingress, egress, and parking;
     (f) Areas for pedestrian, equestrian, bicycle, or other nonmotor vehicle use for travel, ingress, egress, and parking;
     (g) Pedestrian malls, parks, recreational facilities, and open-space facilities for the use of members of the public for entertainment, assembly, and recreation;
     (h) Landscaping, including earthworks, structures, lakes, and other water features, plants, trees, and related water delivery systems;
     (i) Public buildings, public safety facilities, and community facilities;
     (j) Natural gas transmission and distribution facilities, facilities for the transmission or distribution of electrical energy, and communication facilities including, but not limited to, telephone and internet lines and cables and wireless systems;
     (k) Lighting systems;
     (l) Traffic control systems and devices, including signals, controls, markings, and signage;
     (m) Systems of surface, underground, or overhead railways, tramways, buses, or any other means of mass transportation facilities, including passenger, terminal, station parking, and related facilities and areas for passenger and vehicular use for travel, ingress, egress, and parking;
     (n) Library, educational, and cultural facilities; and
     (o) Facilities similar to those listed in this section.
     (3) This chapter does not authorize a district to finance general government operations and services.

NEW SECTION.  Sec. 406   The district many construct, finance, or invest in community facilities in any place, inside or outside the boundaries of the district, where the facility provides benefit to the district and the properties within the district.

NEW SECTION.  Sec. 407   The commission of the district has the authority to contract indebtedness and to refund the same for any general district purpose, including expenses of maintenance, operation, and administration, and the acquisition and construction of facilities, and evidence the same by the issuance and sale of general obligation and/or revenue bonds of the district payable at such time or times not longer than twenty years from the issuing date of the bonds. The bonds must be issued and sold in accordance with chapter 39.46 RCW and other applicable law. Notwithstanding any other limitation provided by law, such bonds may be issued together with any outstanding nonvoter-approved general obligation indebtedness up to the amounts allowed under the state Constitution.

NEW SECTION.  Sec. 408   Community facilities districts are authorized to incur general indebtedness for capital purposes and to issue general obligation bonds not to exceed an amount, together with any outstanding general obligation indebtedness, up to the limits provided under the state Constitution, and to provide for the retirement thereof by excess property tax levies and benefit charges authorized under this title.

NEW SECTION.  Sec. 409   To carry out the purposes for which community facilities districts are created, the commission of a district may levy each year, in addition to the other levies and charges authorized under this title, for the payment of the principal and interest of any outstanding general obligation bonds, an ad valorem tax on all taxable property located in the district consistent with the terms of a petition filed under this title, other applicable requirements of this title, and the limits imposed under the state Constitution.

NEW SECTION.  Sec. 410   A community facilities district may accept and receive on behalf of the district any money or property donated, devised, or bequeathed to the district, and may carry out the terms of the donation, devise, or bequest, if within the powers granted by law to community facilities districts. In the absence of such terms, a community facilities district may expend or use the money or property for district purposes as determined by the commission.

NEW SECTION.  Sec. 501   It is the duty of the county treasurer in which the community facilities district created under this title is located to receive and disburse district revenues, to collect taxes, benefit charges, and assessments authorized and levied under this title, and to credit district revenues to the proper fund.

NEW SECTION.  Sec. 502   The county treasurer's office must maintain the following funds for each community facilities district: (1) Expense fund; (2) reserve fund; (3) general obligation bond fund; (4) revenue bond fund; and (5) other funds as the commission of the district may establish. Taxes levied for administrative, operative, and maintenance purposes, for the purchase of machinery and equipment, for the finance and construction of facilities, and for the purchase of real property, when collected, and proceeds from the sale of general obligation and revenue bonds must be placed by the county treasurer in the proper fund.

NEW SECTION.  Sec. 503   At the time of making general tax levies the district must make the required levies for district purposes against the real and personal property in the district consistent with the terms and conditions of the petition. The tax levies are a part of the general tax roll and must be collected as a part of the general taxes against the property in the district.

NEW SECTION.  Sec. 504   (1) Except as provided in subsections (2) and (3) of this section, money received for the account of the district on warrants issued must be paid against the proper funds of the district. The warrants must be issued on vouchers approved and signed by a majority of the commissioners and by the district secretary.
     (2) The community facilities commissioners, after auditing all payrolls and bills, may authorize the issuing of one general certificate to the county treasurer, to be signed by the secretary of the commission, authorizing the county treasurer to pay all the warrants specified by date, number, name, and amount, and the accounting funds on which the warrants must be drawn; thereupon the district secretary may issue the warrants specified in the general certificate.
     (3) The county treasurer may also pay general obligation bonds and/or revenue bonds and the accrued interest thereon in accordance with their terms from the appropriate fund when interest or principal payments become due. The county treasurer must report in writing monthly to the secretary of the district the amount of money held by the county in each fund and the amounts of receipts and disbursements for each fund during the preceding month.

NEW SECTION.  Sec. 601   (1) Consistent with the terms and conditions of a petition filed under this title the community facilities commission may by resolution, for community facilities district purposes authorized by law, fix and impose a benefit charge on personal property, real property, and improvements to real property which are located within the community facilities district on the date specified and which have or will receive the benefits provided by the community facilities district, to be paid by the owners of the properties.
     (2) A benefit charge imposed must be reasonably proportioned to the measurable benefits to property resulting from the facilities and services afforded by the district. It is acceptable to apportion the benefit charge to the values of the properties as found by the county assessor or assessors modified generally in the proportion that community facilities' operations and projects provide benefits to real property within the district. Any other method that reasonably apportions the benefit charges to the actual benefits resulting from the improved value of real properties within the district due to community facilities' operations and projects may be specified in the resolution and are subject to contest on the ground of unreasonable or capricious action or action in excess of the measurable benefits to the property resulting from services afforded by the district.
     (3) For administrative purposes, the benefit charge imposed on any individual property may be compiled into a single charge, provided that the district, upon request of the property owner, provide an itemized list of charges for each measurable benefit included in the charge.

NEW SECTION.  Sec. 602   The resolution establishing benefit charges must specify, by legal geographical areas or other specific designations, the charge to apply to each property by location, type, or other designation, or other information that is necessary to the proper computation of the benefit charge to be charged to each property owner subject to the resolution. The secretary of the district must determine and identify the personal properties, real property, and improvements to real property which are subject to a benefit charge in each community facilities district and must furnish and deliver to the county treasurer of that county a listing of the properties with information describing the location, legal description, and address of the person to whom the statement of benefit charges is to be mailed, the name of the owner, and the value of the property and improvements, together with the benefit charge to apply to each.

NEW SECTION.  Sec. 603   Each community facilities district must contract, prior to the imposition of a benefit charge, for the administration and collection of the benefit charge by each county treasurer, who must deduct a percent, as provided by contract to reimburse the county for expenses incurred by the county assessor and county treasurer in the administration of the resolution and this chapter. The county treasurer must make distributions each year, as the charges are collected, in the amount of the benefit charges imposed on behalf of each district, less the deduction provided for in the contract.

NEW SECTION.  Sec. 701   A new section is added to chapter 82.02 RCW to read as follows:
     A community facilities district may not be required to pay an impact fee under the provisions of RCW 82.02.050 through 82.02.090.

NEW SECTION.  Sec. 801   Sections 101 through 603 of this act constitute a new title in the Revised Code of Washington.

NEW SECTION.  Sec. 802   Parts I through VI of this act constitute new chapters in the new title created under section 801 of this act and are to be codified as new chapters in the new title.

NEW SECTION.  Sec. 803   Part headings used in this act are not any part of the law.

NEW SECTION.  Sec. 804   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.