BILL REQ. #:  H-1302.1 

Read first time 02/11/09.   Referred to Committee on Community & Economic Development & Trade.

     AN ACT Relating to the convention place station expansion of the state convention and trade center; amending RCW 67.40.130, 67.40.170, 67.40.190, 67.40.045, and 67.40.090; adding new sections to chapter 67.40 RCW; and declaring an emergency.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 67.40 RCW to read as follows:
     Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
     (1) "Convention place station expansion" means the expansion of the state convention and trade center authorized in this chapter to be located in the city of Seattle primarily in airspace above the convention place metro transit station between Boren Avenue, Olive Way, 9th Avenue, and Pine Street, with connection to the existing state convention and trade center facilities.
     (2) "Long-term financing" means any type of financing authorized by the legislature for the long-term financing of the convention place station expansion and may include but not be limited to bonds, notes, and other evidences of indebtedness of the state subject to chapter 39.42 RCW, and a financing contract subject to chapter 39.94 RCW.

NEW SECTION.  Sec. 2   A new section is added to chapter 67.40 RCW to read as follows:
     The corporation may proceed with convention place station expansion including the planning, environmental studies, design, preparation of construction plans and specifications, construction contracting, acquisition and transfers of interests in real and personal property, and other activities for the expansion. In addition to using any funds appropriated to pay costs of activities authorized in this section, if necessary the corporation may obtain interim financing to pay such costs. The corporation may proceed with long-term financing for the purpose of paying costs of constructing and equipping the expansion project upon authorization of the legislature of the long-term financing.

Sec. 3   RCW 67.40.130 and 1995 c 386 s 1 are each amended to read as follows:
     (1) The governing body of a city, while not required by legislative mandate to do so, may, after July 1, 1995, by resolution or ordinance for the purposes authorized under RCW 67.40.170 and 67.40.190, fix and impose a sales tax on the charge for rooms to be used for lodging by transients in accordance with the terms of chapter 386, Laws of 1995. Such tax shall be collected from those persons who are taxable by the state under RCW 67.40.090, but only those taxable persons located within the boundaries of the city imposing the tax. The rate of such tax imposed by a city shall be two percent of the charge for rooms to be used for lodging by transients. Any such tax imposed under this section shall not be collected prior to January 1, 2000. The tax authorized under this section shall be levied and collected in the same manner as those taxes authorized under chapter 82.14 RCW. Penalties, receipts, abatements, refunds, and all other similar matters relating to the tax shall be as provided in chapter 82.08 RCW.
     (2) The tax levied under this section shall remain in effect and not be modified for that period ((for which the)) during which there remain outstanding obligations to pay principal ((and)), interest, or other obligations of state bonds, financing contracts or other financing issued ((to finance the expansion of the state convention and trade center under RCW 67.40.030 remain outstanding)) for purposes authorized under this chapter.
     (3) As used in this section, the term "city" means a municipality that has within its boundaries a convention and trade facility as defined in RCW 67.40.020.

Sec. 4   RCW 67.40.170 and 1995 c 386 s 5 are each amended to read as follows:
     All taxes levied and collected under RCW 67.40.130 shall be credited to the state convention and trade center account in the state treasury and used solely by the corporation formed under RCW 67.40.020 for the purpose of paying all or any part of the cost associated with: The financing, design, acquisition, construction, equipping, operating, maintaining, and reequipping of convention center facilities related to the expansion recommended by the convention center expansion and city facilities task force created under section 148, chapter 6, Laws of 1994 sp. sess. or related to the convention place station expansion; the acquisition, construction, and relocation costs of replacement housing; and the repayment of loans and advances from the state, including loans authorized previously under this chapter, or to pay or secure the payment of all or part of the principal of or interest on any state bonds, or payments under financing contracts or other financing, issued for purposes authorized under this chapter.

Sec. 5   RCW 67.40.190 and 1995 c 386 s 7 are each amended to read as follows:
     (1) Moneys received from any tax imposed under RCW 67.40.130 shall be used for the purpose of providing funds to the corporation for the costs associated with paying all or any part of the cost associated with: The financing, design, acquisition, construction, equipping, operating, maintaining, and reequipping of convention center facilities; the acquisition, construction, and relocation costs of replacement housing; and repayment of loans and advances from the state, including loans authorized previously under this chapter, or to pay or secure the payment of all or part of the principal of or interest on any state bonds, or payments under financing contracts or other financing, issued for purposes authorized under this chapter.
     (2) If any of the revenue from any local sales tax authorized under RCW 67.40.130 shall have been encumbered or pledged by the state to secure the payment of any state bonds as authorized under RCW 67.40.030, or any financing contracts or other financing issued for purposes authorized under this chapter, then as long as that agreement or pledge shall be in effect, the legislature shall not withdraw from the municipality the authority to levy and collect the tax or the tax credit authorized under RCW 67.40.130 and 67.40.140.

Sec. 6   RCW 67.40.045 and 1995 c 386 s 14 are each amended to read as follows:
     (1) The director of financial management, in consultation with the chairpersons of the appropriate fiscal committees of the senate and house of representatives, may authorize temporary borrowing from the state treasury for the purpose of covering cash deficiencies in the state convention and trade center account resulting from project completion costs. Subject to the conditions and limitations provided in this section, lines of credit may be authorized at times and in amounts as the director of financial management determines are advisable to meet current and/or anticipated cash deficiencies. Each authorization shall distinctly specify the maximum amount of cash deficiency which may be incurred and the maximum time period during which the cash deficiency may continue. The total amount of borrowing outstanding at any time shall never exceed the lesser of:
     (a) $58,275,000; or
     (b) An amount, as determined by the director of financial management from time to time, which is necessary to provide for payment of project completion costs.
     (2) Unless the due date under this subsection is extended by statute, all amounts borrowed under the authority of this section shall be repaid to the state treasury by June 30, 1999, together with interest at a rate determined by the state treasurer to be equivalent to the return on investments of the state treasury during the period the amounts are borrowed. Borrowing may be authorized from any excess balances in the state treasury, except the agricultural permanent fund, the Millersylvania park permanent fund, the state university permanent fund, the normal school permanent fund, the permanent common school fund, and the scientific permanent fund.
     (3) As used in this section, "project completion" means:
     (a) All remaining development, construction, and administrative costs related to completion of the convention center; and
     (b) Costs of the McKay building demolition, Eagles building rehabilitation, development of low-income housing, and construction of rentable retail space and an operable parking garage.
     (4) It is the intent of the legislature that project completion costs be paid ultimately from the following sources:
     (a) $29,250,000 to be received by the corporation under an agreement and settlement with Industrial Indemnity Co.;
     (b) $1,070,000 to be received by the corporation as a contribution from the city of Seattle;
     (c) $20,000,000 from additional general obligation bonds to be repaid from the special excise tax under RCW 67.40.090;
     (d) $4,765,000 for contingencies and project reserves from additional general obligation bonds to be repaid from the special excise tax under RCW 67.40.090;
     (e) $13,000,000 for conversion of various retail and other space to meeting rooms, from additional general obligation bonds to be repaid from the special excise tax under RCW 67.40.090;
     (f) $13,300,000 for expansion at the 900 level of the facility, from additional general obligation bonds to be repaid from the special excise tax under RCW 67.40.090;
     (g) $10,400,000 for purchase of the land and building known as the McKay Parcel, for development of low-income housing, for development, construction, and administrative costs related to completion of the state convention and trade center, including settlement costs related to construction litigation, and for partially refunding obligations under the parking garage revenue note issued by the corporation to Industrial Indemnity Company in connection with the agreement and settlement identified in (a) of this subsection, from additional general obligation bonds to be repaid from the special excise tax under RCW 67.40.090. All proceeds from any sale of the McKay parcel shall be deposited in the state convention and trade center account and shall not be expended without appropriation by law;
     (h) $300,000 for Eagles building exterior cleanup and repair, from additional general obligation bonds to be repaid from the special excise tax under RCW 67.40.090; and
     (i) The proceeds of the sale of any properties owned by the state convention and trade center that are not planned for use for state convention and trade center operations, with the proceeds to be used for development, construction, and administrative costs related to completion of the state convention and trade center, including settlement costs related to construction litigation.
     (5) The borrowing authority provided in this section is in addition to the authority to borrow from the general fund to meet the bond retirement and interest requirements set forth in RCW 67.40.060. To the extent the specific conditions and limitations provided in this section conflict with the general conditions and limitations provided for temporary cash deficiencies in RCW 43.88.260 (section 7, chapter 502, Laws of 1987), the specific conditions and limitations in this section shall govern.
     (6) For expenditures authorized under RCW 67.40.170, the corporation may use the proceeds of the special excise tax authorized under RCW 67.40.090, the sales tax authorized under RCW 67.40.130, appropriations to the corporation to pay costs authorized in RCW 67.70.170, funds borrowed pursuant to this section or obtained through interim financing or authorized long-term financing, the proceeds of the sale of any properties owned by the state convention and trade center that are not planned for use for state convention and trade center operations, contributions to the corporation from public or private participants, and investment earnings on any of the funds listed in this subsection.

Sec. 7   RCW 67.40.090 and 2002 c 178 s 4 are each amended to read as follows:
     (1) Commencing April 1, 1982, there is imposed, and the department of revenue shall collect, in King county a special excise tax on the sale of or charge made for the furnishing of lodging that is subject to tax under chapter 82.08 RCW, except that no such tax may be levied on any premises having fewer than sixty lodging units. The legislature on behalf of the state pledges to maintain and continue this tax until the bonds authorized by this chapter are fully redeemed, both principal and interest, and until all payments under financing contracts or other financing issued for purposes authorized under this chapter have been made.
     (2) The rate of the tax imposed under this section shall be as provided in this subsection.
     (a) From April 1, 1982, through December 31, 1982, inclusive, the rate shall be three percent in the city of Seattle and two percent in King county outside the city of Seattle.
     (b) From January 1, 1983, through June 30, 1988, inclusive, the rate shall be five percent in the city of Seattle and two percent in King county outside the city of Seattle.
     (c) From July 1, 1988, through December 31, 1992, inclusive, the rate shall be six percent in the city of Seattle and two and four-tenths percent in King county outside the city of Seattle.
     (d) From January 1, 1993, and until bonds and all other borrowings for purposes authorized under ((RCW 67.40.030)) this chapter are retired and all payments under financing contracts or other financing issued for purposes authorized under this chapter have been made, the rate shall be seven percent in the city of Seattle and two and eight-tenths percent in King county outside the city of Seattle.
     (e) Except as otherwise provided in (d) of this subsection, on and after the change date, the rate shall be six percent in the city of Seattle and two and four-tenths percent in King county outside the city of Seattle.
     (f) As used in this section, "change date" means the October 1st next occurring after certification occurs under (g) of this subsection.
     (g) On August 1st of 1998 and of each year thereafter until certification occurs under this subsection, the state treasurer shall determine whether seventy-one and forty-three one-hundredths percent of the revenues actually collected and deposited with the state treasurer for the tax imposed under this section during the twelve months ending June 30th of that year, excluding penalties and interest, exceeds the amount actually paid in debt service during the same period for bonds issued under RCW 67.40.030 by at least two million dollars. If so, the state treasurer shall so certify to the department of revenue.
     (3) The proceeds of the special excise tax shall be deposited as provided in this subsection.
     (a) Through June 30, 1988, inclusive, all proceeds shall be deposited in the state convention and trade center account.
     (b) From July 1, 1988, through December 31, 1992, inclusive, eighty-three and thirty-three one-hundredths percent of the proceeds shall be deposited in the state convention and trade center account. The remainder shall be deposited in the state convention and trade center operations account.
     (c) From January 1, 1993, until the change date, eighty-five and seventy-one-hundredths percent of the proceeds shall be deposited in the state convention and trade center account. The remainder shall be deposited in the state convention and trade center operations account.
     (d) On and after the change date, eighty-three and thirty-three one-hundredths percent of the proceeds shall be deposited in the state convention and trade center account. The remainder shall be deposited in the state convention and trade center operations account.
     (4) Chapter 82.32 RCW applies to the tax imposed under this section.

NEW SECTION.  Sec. 8   This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.