BILL REQ. #:  H-4060.1 

Prefiled 01/07/10. Read first time 01/11/10.   Referred to Committee on Community & Economic Development & Trade.

     AN ACT Relating to creating community facilities districts; amending RCW 84.52.052; adding a new section to chapter 82.02 RCW; and adding a new chapter to Title 36 RCW.

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, current public financing options are not adequate 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 chapter 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 chapter unless the context clearly requires otherwise.
     (1) "Board of supervisors" or "board" 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 created by a petition submitted to and approved by a legislative authority of a county, city, or town in which the district is located. A district may include land located in portions of one or more cities, towns, or counties when created in accordance with this chapter.
     (3) "Legislative authority" means the governing body of a county, city, or town to which a petition or amended petition is submitted, where the proposed or existing community facilities district is located.
     (4) "Local improvement district" means any local improvement district, utility local improvement district, local utility district, road improvement district, or any similar unit created by a municipal or quasi-municipal corporation or local government, including a district, for the purpose of levying special assessments against property specially benefited by improvements relating to the districts.
     (5) "Petition" or "amended petition" means a request, meeting the requirements of section 201 of this act, made by landowners to form a community facilities district and to voluntarily submit their land to the assessments, fees, charges, and excess levies authorized under this chapter.
     (6) "Value of the taxable property" has the same meaning as provided in RCW 39.36.015.

NEW SECTION.  Sec. 201   Community facilities districts are authorized to be formed for the purposes authorized under this chapter and may include one or more counties, cities, towns, or other political subdivisions.
     (1) To form a community facilities district, a petition must be presented to the legislative authority of each jurisdiction included within the boundaries of the proposed district. The petition must:
     (a) Designate and describe the boundaries of the district by metes and bounds or reference to United States townships, ranges, and legal subdivisions;
     (b) Be executed by one hundred percent of all owners of private property located within the boundaries of the proposed district. The property owners must request that their property be subject to the assessments, fees, charges and excess levies authorized under this chapter;
     (c) Include a certification by the petitioners that they want to voluntarily submit their land to the authority of the district under this chapter, including the assessments, fees, charges, and excess levies authorized under this chapter;
     (d) Include a general explanation of the objective and plan of the district. The petition may include an initial assessment, fee, charge, or proposed excess levy assessment;
     (e) Declare the district will be conducive to public health, safety, and welfare;
     (f) Assert that the purpose for forming the district will be a benefit to the land located in the district;
     (g) Be accompanied by an "obligation" signed by at least two petitioners who agree to pay the costs of the formation process; and
     (h) Include a list of petitioners who are willing and able to serve on the board of supervisors. All petitioners within a proposed district are eligible to include their name on the list of eligible supervisors.
     (i) If it proposes a special assessment, include: (i) Each separate lot, tract, parcel of land, or other property in the district; (ii) the acreage of the property; (iii) the name and address of the owner or reputed owner of each lot, tract, parcel of land, or other property as shown on the tax rolls of the county assessor; and (iv) the special assessment proposed to be imposed on each lot, tract, parcel of land, or other property.
     (2) The petition must be filed with the auditor of each county in which property included within the proposed district is located. The auditor for the county in which the largest geographic portion of the proposed district is located must be the lead auditor. Within ten days of the lead auditor's receipt of the petition, the lead auditor must confirm that the petition has been validly executed by one hundred percent of all owners of the property located within the proposed district, including confirmation by the auditors of all other counties with whom the petition was filed. Within ten days of the lead auditor's finding that the petition either does or does not contain the required signatures, the lead auditor must either (a) transmit the petition, together with a certificate of sufficiency attached thereto, to each legislative authority petitioned for formation of the district; or (b) return the petition to the petitioners with a list of property owners who must sign the petition in order to comply with this section. There are no restrictions on the number of petitions that may be submitted by one or more property owners.
     (3) A petition may be amended for any reason if signed by one hundred percent of the owners of property located within the district proposed in the amended petition.

NEW SECTION.  Sec. 202   A public hearing on the petition must be held by the legislative authority of each jurisdiction included within the boundaries of the proposed district, not less than twenty, but not more than forty days, from the date that the lead county auditor issues the certificate of sufficiency required under section 201 of this act.

NEW SECTION.  Sec. 203   Notice of all public hearings 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. The notice 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. Each notice must contain the time, date, and place of the public hearing.

NEW SECTION.  Sec. 204   At the time and place of the public hearing, the legislative authority must consider the petition. The legislative authority must receive any evidence it deems material that supports or opposes the formation of the district, including the inclusion or exclusion of land. No land outside the boundaries described in the petition may be included within the proposed district without an amended petition satisfying the requirements of section 201 of this act.

NEW SECTION.  Sec. 205   (1) The legislative authority may act on the petition to form a community facilities district at the public hearing held under section 204 of this act and in no event may the legislative authority's decision be issued later than ten days after the day of the public hearing. The legislative authority should approve the petition by resolution or ordinance if the legislative authority determines that the petitioners will benefit from the proposed district and that the formation of the district will be conducive to public health, safety, and welfare. If it is unable to make this finding, then the legislative authority should reject the petition.
     (2) A community facilities district may not be formed unless the legislative authority of each jurisdiction included within the boundaries of the proposed district makes the finding required under subsection (1) of this section with respect to the property included within that jurisdiction's boundaries.
     (3) Two or more legislative authorities may adopt a joint resolution approving a petition.
     (4) All resolutions approving a petition must conform to the terms and conditions contained in the petition and must designate the name and number of the community facilities district being formed.

NEW SECTION.  Sec. 206   (1) Any person on record as objecting to formation of the district at the public hearing held under section 204 of this act may appeal the final decision of a legislative authority to approve or reject a petition for formation of a community facilities district by filing an appeal with the superior court of the county in which any part of the district is located within five days of the legislative authority's decision.
     (2) If no appeal is filed within five days of a legislative authority's approval of the petition, the legislative authority's decision is deemed valid, complete, and final, and its legal existence cannot thereafter be challenged or questioned by any person on the grounds of procedural defect or otherwise. Certified copies of each approval must be filed with the auditor of the county or counties in which the community facilities district is located.

NEW SECTION.  Sec. 301   (1) A community facilities district must be independently governed by a board of supervisors possessing the necessary powers required for the district to carry out all lawful purposes authorized under this chapter. A majority vote of the entire legislative authority is required to approve appointments to the board of supervisors. Each legislative authority is authorized to appoint members to the board of supervisors from its own jurisdiction only. Nothing in this chapter provides authority for one legislative authority to vote on an appointment of a member to the board of supervisors from a separate jurisdiction. The term of office of each supervisor is three years and until a successor is appointed, except that the supervisors first appointed serve for one and two years respectively from the date of their appointments, as designated in their appointments.
     (2) If the boundaries of a district include only one jurisdiction, then the board of supervisors consists of: (a) Three members of the legislative authority of the applicable jurisdiction; and (b) two members appointed from among the petitioners listed in the petition as provided in section 201(1)(h) of this act.
     (3) If the boundaries of the district include more than one jurisdiction, then the board of supervisors consists of: (a) Two members appointed from the legislative authority containing the largest geographic portion of the approved district; (b) one member appointed from the legislative authority of each additional jurisdiction in which the district is located; and (c) either one or two members appointed from the list of eligible petitioners included in the petition as provided in section 201(1)(h) of this act, depending on the number of additional members that are required to result in an overall odd number of supervisors.
     (4) Vacancies on the board must be filled by appointments by the board. Vacancies must be filled by a person in the same position vacating the board. A majority of the supervisors constitutes a quorum and the concurrence of a majority is required for all appointments. Supervisors must serve without compensation, but they are entitled to expenses, including traveling expenses, necessarily incurred in discharge of their duties. The board must designate a chair from time to time.

NEW SECTION.  Sec. 302   (1) Prior to the first meeting of the board, all members of the board must take and subscribe to an official oath for the faithful discharge of the duties of office as required in subsection (2) of this section. This oath must be filed in the office of the auditor of each county in which the district is located.
     (2) A board member is required to take and subscribe an oath or affirmation in compliance with the appropriate statute, or if none is specified, that he or she will faithfully and impartially discharge the duties of the office to the best of his or her ability. This oath or affirmation must be administered and certified by any officer or notary public authorized to administer oaths, without charge therefor.

NEW SECTION.  Sec. 303   (1) All meetings of the board of supervisors must be conducted in accordance with chapter 42.30 RCW, the open public meetings act. The attendance of a majority constitutes a quorum for the transaction of business.
     (2) All records of the board of supervisors must be open to inspection in accordance with chapter 42.56 RCW, the public records act.
     (3) The board of supervisors must adopt a seal for the district, manage and conduct the business affairs of the district, make and execute all necessary contracts, employ any necessary services, and adopt reasonable rules to govern the district and to perform its functions, and generally perform all acts as may be necessary to carry out the objects of the creation of the district.

NEW SECTION.  Sec. 401   A community 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. 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 statute, including, but not limited to, the authority to hire employees, staff, and services, to enter into contracts, to acquire, hold, and dispose of real and personal property, and to sue and be sued. All actions of a district must be consistent with the terms and conditions of the petition or amended petition approved in accordance with this chapter.

NEW SECTION.  Sec. 402   Consistent with the terms and conditions set forth in a petition, a community facilities district has the full and exclusive authority to carry out its purposes under this chapter and to that end may:
     (1) Acquire, purchase, hold, lease, finance, manage, occupy, construct, and sell real and personal property, facilities, or any interest therein;
     (2) Enter into and perform any and all necessary contracts;
     (3) Levy, assess, and enforce the collection of assessments, fees, charges, and excess levies in the manner and subject to the limitations provided in this chapter against the property owned by the petitioners under a petition approved in accordance with this chapter; and
     (4) Do any and all lawful acts required and expedient to carry out the purpose of this chapter.

NEW SECTION.  Sec. 403   A community facilities district may execute executory conditional sales contracts, leases, installment promissory notes secured by a deed of trust, or mortgages, or any other security instrument with a governmental entity or a private party for the construction, finance, lease, purchase or sale of any real or personal property, or property rights, subject to the following:
     (1)(a) The purchase price specified in a contract or promissory note to purchase property may not result in a total indebtedness in excess of three-eighths of one percent of the value of the taxable property in the district.
     (b) If a proposed purchase contract or promissory note would result in a total indebtedness in excess of that amount specified in (a) of this subsection, a proposition to determine whether that contract or promissory note may be executed must be submitted to the voters within the district for approval or rejection in the same manner that bond issues for capital purposes are submitted to the voters.
     (2) A community facilities district may jointly execute contracts authorized by this section, if the entire amount of the purchase price does not result in a joint total indebtedness in excess of the nonvoter-approved indebtedness limitation of any city, town, county, or district that participates in the jointly executed contract.

NEW SECTION.  Sec. 501   (1) Consistent with the terms and conditions in a petition, a community facilities district may finance through the use of any method authorized under this chapter:
     (a) The cost, or any portion thereof, of the purchase, finance, lease, sublease, construction, expansion, improvement, or rehabilitation of any facility with an estimated life of five years or longer; and
     (b) The planning and design work that is directly related to the purchase, construction, expansion, improvement, or rehabilitation of a facility.
     (2) A community facilities district may finance the cost, or any portion thereof, of 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.

NEW SECTION.  Sec. 502   Consistent with the terms and conditions in a petition, a community facilities district may construct, finance, lease, invest, or fund, in whole or in part, any of the activities authorized under this chapter, in connection with community facilities in any place, inside or outside the boundaries of the district. The district's authority to fund activities as granted herein extends to directly or indirectly funding the same activities undertaken by or on behalf of any other municipal or quasi-municipal corporation authorized to engage in the listed activities pursuant to applicable law, including, without limitation the payment of lease obligations and impact fees in connection with or resulting from the authorized activities.

NEW SECTION.  Sec. 503   (1) A community facilities district may form a local improvement district to provide any improvement it has the authority to provide, impose special assessments on all property specially benefited by the improvements, utilize the revenue for the payment of special assessment bonds or any other public or private bonds issued by or on behalf of any public entity, and otherwise fund the costs of improvements and activities authorized under this chapter and included in a petition approved in accordance with this chapter.
     (2) The board of supervisors may establish, administer, and pay the revenue generated from the special assessments into a local improvement guaranty fund, or otherwise obligate the revenue, to guarantee payment of obligations incurred in connection with activities authorized under this chapter including the payment of principal and interest on any bonds issued by or on behalf of the district in order to finance any and all improvements or activities authorized under this chapter.
     (3) The proceeds of any bond issued pursuant to this chapter may be used to pay any and all costs related to any of the activities authorized under this chapter. In addition, proceeds of bonds issued by or on behalf of the district may be used to pay the necessary and related engineering, architectural, planning, and inspection costs.
     (4) The petitioners for formation of a community facilities district may enter into an agreement with a county, city, or town waiving their right as property owners to protest formation of a local improvement district, in accordance with the requirements of RCW 35.43.182.

NEW SECTION.  Sec. 504   A community facilities district may:
     (1) Levy an ad valorem property tax in excess of the one percent limitation upon the property within the district for a one-year period whenever authorized by the voters of the district under Article VII, section 2(a) of the state Constitution and RCW 84.52.052 for operating funds, capital outlay funds, and cumulative reserve funds; and
     (2) Provide for the retirement of voter-approved general obligation and revenue bonds, by levying bond retirement ad valorem property tax levies in excess of the one percent limitation whenever authorized by the voters of the district under Article VII, section 2(b) of the state Constitution and RCW 84.52.056.

NEW SECTION.  Sec. 505   A community facilities district may contract indebtedness, and refund the same, for any authorized district purpose including expenses of maintenance, operation, administration, and the acquisition, financing, and construction of facilities, and evidence the same by the issuance and sale of general obligation or revenue bonds.

NEW SECTION.  Sec. 506   (1) A community facilities district may incur general indebtedness for capital purposes and may issue general obligation bonds together with any outstanding general obligation indebtedness not to exceed an amount equal to five percent of the value of the taxable property within the district, when authorized by the voters of the district under Article VIII, section 6 of the state Constitution.
     (2) The bonds may be retired by assessments, fees, charges, and excess levies authorized under this chapter.
     (3) When general obligation bonds are issued to fund specific projects or enterprises that generate revenues in the form of rates, charges, or fees, the community facilities district may specifically pledge all or a portion of the revenues to guarantee payment of the general obligation bonds. The district may also pledge any other revenues that may be available to the district.

NEW SECTION.  Sec. 507   No bonds issued by or on behalf of a community facilities district are obligations of any city, town, county, or the state of Washington or any political subdivision thereof other than the district and the bonds will so state, unless the legislative authority of the city, town, county, or the legislature expressly authorizes particular bonds to be guaranteed by or obligations of its respective city, town, county, or of the state.

Sec. 508   RCW 84.52.052 and 2004 c 129 s 22 are each amended to read as follows:
     The limitations imposed by RCW 84.52.050 through 84.52.056((,)) and ((RCW)) 84.52.043 ((shall)) do not prevent the levy of additional taxes by any taxing district, except school districts and fire protection districts, in which a larger levy is necessary in order to prevent the impairment of the obligation of contracts. As used in this section, the term "taxing district" means any county, metropolitan park district, park and recreation service area, park and recreation district, water-sewer district, solid waste disposal district, public facilities district, flood control zone district, county rail district, service district, public hospital district, road district, rural county library district, island library district, rural partial-county library district, intercounty rural library district, cemetery district, city, town, transportation benefit district, emergency medical service district with a population density of less than one thousand per square mile, cultural arts, stadium, and convention district, ferry district, city transportation authority, ((or)) regional fire protection service authority, or community facilities district.
     Any ((such)) taxing district may levy taxes at a rate in excess of the rate specified in RCW 84.52.050 through 84.52.056 and 84.52.043, or 84.55.010 through 84.55.050, when authorized so to do by the voters of ((such)) the taxing district in the manner set forth in Article VII, section 2(a) of the Constitution of this state at a special or general election to be held in the year in which the levy is made.
     A special election may be called and the time therefor fixed by the county legislative authority, or council, board of commissioners, or other governing body of any ((such)) the taxing district, by giving notice thereof by publication in the manner provided by law for giving notices of general elections, at which special election the proposition authorizing ((such)) the excess levy ((shall)) must be submitted in such form as to enable the voters favoring the proposition to vote "yes" and those opposed thereto to vote "no."

NEW SECTION.  Sec. 509   A community facilities district may accept and receive on behalf of the district any money or property donated, devised, or bequeathed to the district. The district may carry out the terms of the donation, devise, or bequest, if it is 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 board of supervisors.

NEW SECTION.  Sec. 510   At the time of making general tax levies each year, each legislative authority of the county or counties in which a community facilities district is located must make the levies authorized under this chapter for district purposes against the real and personal property in the district. The tax levies must be part of the general tax roll and be collected as a part of the general taxes against the property in the district.

NEW SECTION.  Sec. 511   (1) The treasurer of the county in which a community facilities district is located is the treasurer of the district. If the community facilities district is located in more than one county, the treasurer of the district is the treasurer of the county in which the district has the highest assessed value. The county treasurer must receive and disburse community facilities district revenues, collect taxes authorized and levied under this chapter, and credit the district revenues to the proper fund.
     (2) The district treasurer must establish a community facilities district fund, into which must be paid all district revenues. The district treasurer must also maintain any special funds created by the board of supervisors of the community facilities district, into which the district treasurer must place all money as the board of supervisors may, by resolution, direct.

NEW SECTION.  Sec. 512   (1) Except as provided in subsections (2) and (3) of this section, money received for the account of the district on warrants 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 board of supervisors and the district secretary.
     (2) After auditing all payrolls and bills, the board of supervisors may authorize the issuing of one general certificate to the county treasurer, to be signed by the secretary of the board, authorizing the county 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, assessment bonds, and 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.
     (4) All interest collected on community facilities district funds belongs to the district and must be deposited to its credit in the proper district funds.

NEW SECTION.  Sec. 513   (1) Consistent with the terms and conditions of a petition approved under this chapter, the board of supervisors 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 allocate the benefit charges to the properties based on any reasonable method. All charges are subject to contest by the property owners subject to the charges on the grounds of unreasonable or capricious allocation 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. 514   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. 515   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. 516   (1) Consistent with the terms and conditions of a petition, special assessments may be imposed by the district on privately owned real property within the district to finance the activities of the district authorized under this chapter. The term of the special assessment is limited to thirty years or the term of any bonds issued by or on behalf of the district to which the revenue generated by the special assessment is specifically dedicated or obligated.
     (2) Any method or combination of methods may be used in the petition to compute special assessments, determine manifest degrees of benefit or use from facilities, activities, or improvements funded directly or indirectly by special assessments under this section, and to arrive at a final assessment roll. Special assessments may be imposed to pay for all activities authorized under this chapter. Administrative and operational costs incurred by the district may be proportionally included in these special assessments.
     (3) The board must set a date, time, and place for hearing any objections to the system of assessments and the special assessment roll set forth in the petition. Objections must be made in writing, must clearly state the grounds for objections, and must be filed with the board prior to the public hearing. Objections to a special assessment or final assessments roll that are not made as provided in this section are deemed waived and will not be considered by the board or a court on appeal.
     (4) The board of supervisors must ensure that the system or systems of assessment included in the petition utilizes a differing system of assessment for different classes of property within the district and that the assessments reflect to the special benefit accruing to the assessed property as a result of the proposed activities to be funded thereby.
     (a) If the system of assessments included in the petition or amended petition satisfies the requirements of this subsection (4), then the board of supervisors must adopt an ordinance or resolution approving the system or systems of assessment and finalizing the assessment roll.
     (b) If the system of assessments included in the petition or amended petition does not satisfy the requirements of this subsection (4), then the board may correct, revise, raise, lower, change, or modify the special assessment roll or any part thereof, and return the petition to the petitioner with a detailed explanation of the changes made by the board.
     (c) If the petition is revised by the board in any way, then the petitioner must have the opportunity to take either of the following unanimous actions: (i) Amend or withdraw the petition prior to the board's final approval of the system of assessments and the assessment roll; or (ii) accept the changes made by the board, upon which occurrence the board must adopt the ordinance approving the system of assessments and the final assessment roll as modified by the board.
     (5) The decision of the board upon any objection to the special assessment roll may be appealed to the superior court only if objections are timely made in the manner prescribed under subsection (3) of this section.
     (a)(i) The appeal must be made within ten days after publication of a notice that the ordinance or resolution approving the system of special assessment and the final special assessment roll has been adopted by filing written notice of the appeal with the board and the clerk of the superior court in the county in which the real property is situated.
     (ii) The notice of appeal must describe the property subject to the assessment forming the basis for the appeal and must set forth the specific objections of the appellant to the special assessment.
     (iii) Within ten days from the filing of the notice of appeal with the clerk of the superior court, the appellant must file with the clerk of the court a transcript consisting of the special assessment roll together with the resolution confirming the special assessment roll and the record of the board with reference to the special assessment. The transcript, upon payment of the necessary fees therefor, must be furnished by the officer having custody of the special assessment roll and must be certified to contain full, true, and correct copies of all matters and proceedings required to be included in the transcript. The fees must be the same as the fees payable to the county clerk for the preparation and certification of transcripts on appeal to the supreme court or the court of appeals in civil actions.
     (b) At the time of the filing of the notice of appeal with the clerk of the superior court, a sufficient bond in the sum of two hundred dollars, with a surety or sureties thereon as provided by law for appeals in civil cases, must be filed. If the appeal is unsuccessful, the appellant must pay all costs incurred by the board because of the appeal. The court may order the appellant, upon application therefor, to execute and file the additional bond or bonds as the necessity of the case may require.
     (c)(i) Within three days after the transcript is filed in the superior court, the appellant must give written notice to the board that the transcript is filed. The notice must state a time, not less than three days from the service thereof, when the appellant will call up the cause for hearing. The superior court must, at this time or at a later time as may be fixed by order of the court, hear and determine the appeal without a jury, and the cause must have preference over all civil causes pending in the court, except proceedings under an act relating to eminent domain in that county and actions of forcible entry and detainer.
     (ii) The judgment of the court must confirm, correct, modify, or annul the special assessment or annual special assessments insofar as the same affects the property of the appellant.
     (iii) A certified copy of the decision of the court must be filed with the officer having custody of the special assessment roll, and he or she must modify and correct the special assessment roll in accordance with the decision.
     (d)(i) An appeal must be made to the supreme court or the court of appeals from the judgment of the superior court, as in other cases. However, the appeal must be taken within fifteen days after the date of the entry of the judgment of the superior court, and the record and opening brief of the appellant in the cause must be filed in the supreme court or the court of appeals within sixty days after the appeal is taken by notice as provided in this section.
     (ii) The time for filing the record and serving and filing of briefs may be extended by order of the superior court, or by stipulation of the parties concerned. The supreme court or the court of appeals on the appeal may correct, modify, confirm, or annul the special assessment or annual special assessments insofar as the same affects the property of the appellant.
     (iii) A certified copy of the order of the supreme court or the court of appeals upon the appeal must be filed with the officer having custody of the special assessment roll, who must thereupon modify and correct the special assessment roll in accordance with the decision.
     (6) The system or systems of assessment must be reviewed and finalized by the board of supervisors at least once every two years. A system or systems of assessment must be finalized on or before the first of September in the year that it is finalized. If the board of supervisors is responsible for establishing a system or systems of assessment for more than one district, then the board of supervisors may, at its option, stagger the initial finalization of the systems of assessment for different districts over a period of up to two years. Assessments must be collected in districts pursuant to the district's previous system of assessment until the system or systems of assessment under this chapter are finalized under this section.
     (7) Every district must use the assessed value applicable to forest land, farm and agricultural land, or open space land, under chapter 84.33 or 84.34 RCW, when the land has been designated as such and the assessed value is used as a component in determining the district assessment. If a district uses a fractional amount of assessed value as a component in determining the district assessment, then a fractional amount of the value applicable to forest land, farm and agricultural land, or open space land, under chapter 84.33 or 84.34 RCW, must be used.
     (8)(a) Or before December 1st of each year, the district must adopt a budget reflecting the special assessments approved under this chapter consistent with the terms of the petition. A copy of the resolution and the budget must be forwarded immediately to the treasurer of the county or counties in which the district is located.
     (b) Special assessments necessary to generate funds for this budget must be imposed pursuant to the system or systems of assessment approved by the board of supervisors. Special assessments must be collected by the county treasurer or treasurers within which the district is located. Notice of the special assessments must be included on all annual notices of property taxes and included on a separate notice mailed separately from the notice of property taxes due, not less than once per year, with the following notice appearing at the top of the page in at least fourteen point, bold font:

NEW SECTION.  Sec. 601   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. 602   (1) The board of supervisors may develop and adopt programs for the purpose of jointly funding, from public and private sources, improvements authorized under this chapter that are necessitated in whole or in part by economic development and growth within a district's boundaries. The board of supervisors must adopt the programs by ordinance after notice and public hearing. Each program must contain the elements described in this section.
     (2) The program must identify the geographic boundaries of the entire area or areas generally benefited by the proposed improvement.
     (3) The program must authorize impact fees to be imposed on new development within the district's boundaries for the purpose of providing a portion of the funding for reasonable and necessary improvements to solve the cumulative impacts of the planned growth and development. The fees may not exceed the amount that the board of supervisors can demonstrate is reasonably necessary as a direct result of the proposed development within a given district.
     (4) The program must provide that the funds collected as a result of a particular new development are used in substantial part to pay for improvements mitigating the impacts of the development or be refunded to the property owners of record. Fees paid toward more than one improvement may be pooled and expended on any one of the improvements mitigating the impact of the development.
     (5)(a) The administrative element of the program includes:
     (i) An opportunity for administrative appeal by the developer and hearing before an independent examiner of the amount of the impact fee imposed;
     (ii) Establishment of a designated account for the public and private funds appropriated or collected for the improvements identified in the plan; and
     (iii) Methods to enforce collection of the public and private funds identified in the program.
     (b) The program may not be amended in a manner to relieve the district of any contractual obligations made to prior developers.

NEW SECTION.  Sec. 603   Subject to the provisions in RCW 36.73.065, the board of supervisors may impose a fee or charge, within a district, on the construction or reconstruction of commercial buildings, industrial buildings, or on any other commercial or industrial building or building space or appurtenance, or on the development, subdivision, classification, or reclassification of land for commercial purposes, only if done in accordance with chapter 39.92 RCW. Any fee or charge imposed under this section must be used exclusively for improvements constructed within a district. The fees or charges imposed must be reasonably necessary as a result of the impact of development, construction, or classification or reclassification of land on identified needs.

NEW SECTION.  Sec. 701   (1) All assessments, fees, charges, and excess levies on the respective lots, tracts, parcels of land, and other property voluntarily submitted to under this chapter are a lien upon the property and must be placed in the hands of the county treasurer for collection.
     (2) A lien created under subsection (1) of this section is paramount and superior to any other lien or encumbrance whatsoever, theretofore or thereafter created, except a lien for general taxes. All liens arising under this chapter must be affirmatively disclosed in all conveyances occurring after creation of the lien in the form provided under section 516(8) of this act.

NEW SECTION.  Sec. 702   Sections 101 through 507, 509 through 516, 602, 603, and 701 of this act constitute a new chapter in Title 36 RCW.

NEW SECTION.  Sec. 703   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.