BILL REQ. #:  H-2060.1 

     AN ACT Relating to the powers of public corporations; amending RCW 35.21.747, 35.21.750, and 35.21.745; and adding new sections to chapter 35.21 RCW.

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

Sec. 1   RCW 35.21.747 and 1990 c 189 s 1 are each amended to read as follows:
     (1) In transferring real property to a public corporation, commission, or authority under RCW 35.21.730, the city, town, or county creating such public corporation, commission, or authority shall impose appropriate deed restrictions necessary to ensure the continued use of such property for the public purpose or purposes for which such property is transferred.
     (2) The city, town, or county that creates a public corporation, commission, or authority under RCW 35.21.730 shall require of such public corporation, commission, or authority thirty days' advance written notice of any proposed sale ((or encumbrance)) of any real property transferred by such city, town, or county to such public corporation, commission, or authority pursuant to RCW 35.21.730(1). At a minimum, such notice shall be provided by such public corporation, commission, or authority to the chief executive or administrative officer of such city, town, or county, and to all members of its legislative body, and to each local newspaper of general circulation, and to each local radio or television station or other news medium which has on file with such corporation, commission, or authority a written request to be notified.
     (3) Any property transferred by the city, town, or county that created such public corporation, commission, or authority may be sold ((or encumbered)) by such public corporation, commission, or authority only after approval of such sale ((or encumbrance)) by the governing body of the public corporation, commission, or authority at a public meeting of which notice was provided pursuant to RCW 42.30.080. Nothing in this section shall be construed to prevent the governing body of the public corporation, commission, or authority from holding an executive session during a regular or special meeting in accordance with RCW 42.30.110(1)(c). In addition, the public corporation, commission, or authority shall advertise notice of the meeting in a local newspaper of general circulation at least twice no less than seven days and no more than two weeks before the public meeting.

Sec. 2   RCW 35.21.750 and 1974 ex.s. c 37 s 6 are each amended to read as follows:
     (1) In the event of the insolvency or dissolution of a public corporation, commission, or authority, the superior court of the county in which the public corporation, commission, or authority is or was operating shall have jurisdiction and authority to appoint trustees or receivers of corporate property and assets and supervise such trusteeship or receivership: PROVIDED, That all liabilities incurred by such public corporation, commission, or authority shall be satisfied exclusively from the assets and properties of such public corporation, commission, or authority and no creditor or other person shall have any right of action against the city, town, or county creating such corporation, commission or authority on account of any debts, obligations, or liabilities of such public corporation, commission, or authority.
     (2) If the public corporation is authorized to enter into long-term leases by enabling ordinance or resolution, the city, town, or county that created the public corporation shall take the place of the public corporation by assuming any duties, liabilities, or assets of such leases.

NEW SECTION.  Sec. 3   A new section is added to chapter 35.21 RCW to read as follows:
     A public corporation may lease all real and personal property owned and controlled by it, for such purposes and upon such terms as the public corporation deems proper.
     No lease shall be for a period longer than fifty years with option for extensions up to an additional thirty years.

NEW SECTION.  Sec. 4   A new section is added to chapter 35.21 RCW to read as follows:
     Every lease of real and personal property of a public corporation for a term of more than one year must have the rent secured by rental insurance, bond, or other security satisfactory to the public corporation, subject to the following provisions:
     (1) Security must be the greater of one year's rent or one-sixth the total rent, but the amount may not exceed the value of three years' rent. However, nothing in this section prevents the public corporation from requiring additional security for supplemental agreements or leases;
     (2) Evidence of the existence of the insurance, bonds, or security must be on file with the public corporation at all times during the term of the lease;
     (3) If the required security is not maintained throughout the full term of the lease, the lease must be considered in default. The public corporation may waive the rent security requirement or lower the amount of such requirement on the lease of either real or personal property owned or controlled by the public corporation, or both; and
     (4) Any security agreement may provide for termination on the anniversary date of the agreement on not less than one year's written notice to the public corporation if the lease is not in default at the time of notice.

Sec. 5   RCW 35.21.745 and 2002 c 218 s 24 are each amended to read as follows:
     (1) Any city, town, or county which shall create a public corporation, commission, or authority pursuant to RCW 35.21.730 or 35.21.660, shall provide for its organization and operations and shall control and oversee its operation and funds in order to correct any deficiency and to assure that the purposes of each program undertaken are reasonably accomplished.
     (2) Any public corporation, commission, or authority created as provided in RCW 35.21.730 may be empowered to own and sell real and personal property; to contract with a city, town, or county to conduct community renewal activities under chapter 35.81 RCW; to contract with individuals, associations, and corporations, and the state and the United States; to contract for public works under Title 39 RCW; to sue and be sued; to loan and borrow funds and issue bonds and other instruments evidencing indebtedness; transfer any funds, real or personal property, property interests, or services; to do anything a natural person may do; and to perform all manner and type of community services. However, the public corporation, commission, or authority shall have no power of eminent domain nor any power to levy taxes or special assessments.