BILL REQ. #:  S-1108.1 

Read first time 02/10/09.   Referred to Committee on Economic Development, Trade & Innovation.

     AN ACT Relating to creating community facilities districts; amending RCW 84.52.052; adding new sections to chapter 84.52 RCW; adding a new section to chapter 82.02 RCW; adding a new title to the Revised Code of Washington; 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 landowner financing of community facilities and local, subregional, and regional infrastructure by authorizing community facilities districts.

NEW SECTION.  Sec. 102   The definitions in this section apply throughout this title unless the context clearly requires otherwise.
     (1) "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 that has been created by a vote of the people under this title to implement a regional community facilities authority plan.
     (3) "Community facilities jurisdiction" means a community facilities district, city, town, port district, or Indian tribe.
     (4) "Regional board" means the governing body of a regional community facilities authority.
     (5) "Regional community facilities authority" or "authority" 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 regional community facilities authority plan.
     (6) "Regional community facilities authority plan" or "plan" means a plan to develop and finance a regional community facilities authority project or projects including, but not limited to, facilities listed in section 801(2) of this act.
     (7) "Regional community facilities authority planning committee" or "planning committee" means the advisory committee created under section 1001 of this act to create and propose to community facilities jurisdictions a regional community facilities authority plan to design, finance, and develop community facilities district projects.
     (8) "Regular property taxes" has the same meaning as in RCW 84.04.140.

NEW SECTION.  Sec. 201   Community facilities districts for the provision of community facilities operations and projects are authorized to be established as provided in this title.

NEW SECTION.  Sec. 202   (1) For the purpose of the formation of a community facilities district, a petition 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, signed by not less than ten percent of the registered voters who reside within the boundaries of the proposed district who voted in the last general municipal election, and setting forth the object for the creation of the proposed district and alleging 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, must be filed with the county auditor of the county in which all, or the largest portion of, the proposed district is located, accompanied by an obligation signed by two or more petitioners, agreeing to pay the cost of the publication of the notice required by this title.
      (2) The county auditor must, within thirty days from the date of filing the petition, examine the signatures and certify to the sufficiency or insufficiency of the signatures. If the proposed community facilities district is located in more than one county, the auditor of the county in which the largest portion of the proposed community facilities district is located must be the lead auditor and must transmit a copy of the petition to the auditor or auditors of the other county or counties within which the proposed community facilities district is located. Each of these other auditors must certify to the lead auditor both the total number of registered voters residing in that portion of the proposed community facilities district that is located in the county and the number of valid signatures of such voters who have signed the petition. The lead auditor must certify the sufficiency or insufficiency of the signatures. The books and records of the auditor are prima facie evidence of the truth of the certificate. No person having signed the petition is allowed to withdraw his or her name after the filing of the petition with the county auditor.
     (3) If the petition is found to contain a sufficient number of signatures of registered voters residing within the proposed district, the county auditor must transmit the petition, together with the auditor's certificate of sufficiency, to the county legislative authority or authorities of the county or counties in which the proposed community facilities district is located.

NEW SECTION.  Sec. 203   The county auditor who certifies the sufficiency of the petition must notify the person or persons who submitted the petition of its sufficiency or insufficiency within five days of when the determination of sufficiency or insufficiency is made. Notice must be by certified mail and additionally may be made by telephone. If a boundary review board exists in the county or counties in which the proposed community facilities district is located and the petition has been certified as being sufficient, the petitioners must file notice of the proposed incorporation with the boundary review board or boards.

NEW SECTION.  Sec. 204   (1) A public hearing on the petition must be held by the county legislative authority of the county in which the proposed community facilities district is located if: (a) No boundary review board exists in the county; (b) jurisdiction by the boundary review board over the proposal has not been invoked; or (c) the boundary review board fails to take action on the proposal over which its jurisdiction has been invoked within the time period that the board must act or a proposal is deemed to have been approved. If such a public hearing is held by the county legislative authority, the hearing must be held not less than twenty nor more than forty days from the date of receipt of the petition with the certificate of sufficiency from the county auditor if there is no boundary review board in the county, or not more than one hundred days from when the notice of the proposal was submitted to the boundary review board if the jurisdiction of the boundary review board was not invoked, or not less than forty days after the date that the boundary review board that has had its jurisdiction invoked over the proposal must act if the proposal is deemed to have been approved. The hearing by the county legislative authority may be completed at the scheduled time or may be adjourned from time to time as may be necessary for a determination of the petition, but such adjournment or adjournments may not extend the time for considering the petition more than twenty days from the date of the initial hearing on the petition.
     (2) If the proposed community facilities district is located in more than one county, a public hearing must be held in each of the counties by the county legislative authority or boundary review board. Joint public hearings may be held by two or more county legislative authorities, or two or more boundary review boards, on the proposal.

NEW SECTION.  Sec. 205   Notice of the public hearing by the county legislative authority on such a proposal must be published for three consecutive weeks in the official paper of the county 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. 206   At the time and place of the hearing on the petition or at any adjournment thereof, the county 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 as described in the petition may be included within the district without a written petition describing the land, executed by all persons having an interest of record in the lands, and filed with the proceedings on the petition. No land within the boundaries described in the petition, except that land which the county legislative authority finds will receive no benefits from the proposed district, may be excluded from the district.

NEW SECTION.  Sec. 207   The county legislative authority 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. The county legislative authority must consider only those areas located within the county when considering the petition. If the county legislative authority approves the petition, it must designate the name and number of the district, fix the boundaries of the district that are located within the county, and direct that an election be held within the proposed district for the purpose of determining whether the district must be organized under this title and for the purpose of the election of its first community facilities commissioners.

NEW SECTION.  Sec. 208   (1) The election on the formation of the district and to elect the initial community facilities commissioners must be conducted by the election officials of the county or counties in which the proposed district is located in accordance with the general election laws of the state. 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 boundary review board, or county legislative authority or authorities, approving the proposal.
     (2) Where a proposed community facilities district is located in more than a single county, the community facilities district must be identified by the name of each county in which the proposed community facilities district is located, listed alphabetically, followed by a number that is the next highest number available for a community facilities district in one of the counties that has the greatest number of community facilities districts. An election on a proposed community facilities district that is located in more than one county may not be held unless the proposed district has been approved by the county legislative authorities, or boundary review boards, of each county within which the proposed district is located.

NEW SECTION.  Sec. 209   If three-fifths of all the votes cast at the election were cast in favor of the ballot proposition to create the proposed community facilities district, the county legislative authority of the county in which all, or the largest portion of, the proposed district is located must by resolution declare the territory organized as a community facilities district under the name designated and must declare the candidate for each community facilities commissioner position who receives the highest number of votes for that position to be an initial community facilities commissioner of the district.

NEW SECTION.  Sec. 210   Any person or entity having a substantial interest and feeling aggrieved by any finding, determination, or resolution of the county 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 county 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 county legislative authority.

NEW SECTION.  Sec. 211   After the expiration of five days from the approval of the resolution of the county legislative authority declaring the district to be organized, and the filing of the certified copies of the resolution of the county legislative authority with the county auditor and the county assessor, 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. 301   Actions taken under this chapter may be subject to potential review by a boundary review board under chapter 36.93 RCW.

NEW SECTION.  Sec. 302   A community facilities district may merge with another adjacent community facilities district, on such terms and conditions as they agree upon, in the manner provided in this title. The community facilities districts may be located in different counties. The district desiring to merge with another district, or the district from which it is proposed that a portion of the district be merged with another district, must be called the "merging district." The district into which the merger is to be made must be called the "merger district." The merger of any districts under this chapter is subject to potential review by the boundary review board or boards of the county in which the merging district, or the portion of the merging district that is proposed to be merged with another district, is located.

NEW SECTION.  Sec. 303   To effect such a merger, a petition to merge must be filed with the board of the merger district by the commissioners of the merging district. The commissioners of the merging district may sign and file the petition on their own initiative, and they must file a petition when it is signed by ten percent of the registered voters resident in the merging district who voted in the last general municipal election and presented to the board of commissioners. The petition must state the reasons for the merger, state the terms and conditions under which the merger is proposed, and request the merger.

NEW SECTION.  Sec. 304   (1) The board of the merger district may, by resolution, reject or approve the petition as presented, or it may modify the terms and conditions of the proposed merger, and shall transmit the petition, together with a copy of its resolution to the merging district.
     (2) If the petition is approved as presented or as modified, the board of the merging district shall send an elector-signed petition, if there is one, to the auditor or auditors of the county or counties in which the merging district is located, who shall within thirty days examine the signatures and certify to the sufficiency or insufficiency of the signatures. If the merging district is located in more than one county, the auditor of the county within which the largest portion of the merging district is located is the lead auditor. Each other auditor must certify to the lead auditor the number of valid signatures and the number of registered voters of the merging district who reside in the county. The lead auditor must certify as to the sufficiency or insufficiency of the signatures. No signatures may be withdrawn from the petition after the filing. A certificate of sufficiency must be provided to the board of the merging district, which must adopt a resolution requesting the county auditor or auditors to call a special election, as provided in RCW 29A.04.330, for the purpose of presenting the question of merging the districts to the voters of the merging district.
     (3) If there is no elector-signed petition, the merging district board must adopt a resolution requesting the county auditor or auditors to call a special election in the merging district, as specified under RCW 29A.04.330, for the purpose of presenting the question of the merger to the electors.

NEW SECTION.  Sec. 305   The board of the merging district must notify the board of the merger district of the results of the election. If a majority of the votes cast at the election favor the merger, the respective district boards must adopt concurrent resolutions, declaring the districts merged, under the name of the merger district. Thereupon, the districts are merged into one district, under the name of the merger district; the merging district is dissolved without further proceedings; and the boundaries of the merger district are thereby extended to include all the area of the merging district. Thereafter, the legal existence cannot be questioned by any person by reason of any defect in the proceedings for the merger.

NEW SECTION.  Sec. 306   If three-fifths of all the qualified electors in the merging district sign the petition to merge, no election on the question of the merger is necessary and the auditor, or lead auditor if the merging district is located in more than a single county, must return the petition, together with a certificate of sufficiency to the board of the merging district. The boards of the respective districts must then adopt resolutions declaring the districts merged in the same manner and to the same effect as if the merger had been authorized by an election.

NEW SECTION.  Sec. 307   None of the obligations of the merged districts or of a local improvement district located in the merged districts may be affected by the merger and dissolution, and all land liable to be assessed to pay any of the indebtedness shall remain liable to the same extent as if the districts had not been merged and any assessments previously levied against the land must remain unimpaired and must be collected in the same manner as if the districts had not merged. The commissioners of the merged district must have all the powers of the two districts to levy, assess, and cause to be collected all assessments against any land in both districts that may be necessary to pay for the indebtedness thereof, and until the assessments are collected and all indebtedness of the districts paid, separate funds shall be maintained for each district as were maintained before the merger. However, the board of the merged district may, with the consent of the creditors of the districts merged, cancel any or all assessments previously levied, in accordance with the terms and conditions of the merger, so that the lands in the respective districts bear their fair and proportionate share of the indebtedness.

NEW SECTION.  Sec. 308   The commissioners of the merging district must, upon completion of the merger, transfer, convey, and deliver to the merged district all property and funds of the merging district, together with all interest in and right to collect any assessments previously levied.

NEW SECTION.  Sec. 309   (1) Whenever two or more community facilities districts merge, the board of community facilities commissioners of the merged community facilities district consists of all of the community facilities commissioners of the districts that are merging, including a person who is elected as a community facilities commissioner of one of the merging districts at that same election that the ballot proposition was approved authorizing the merger, who must retain the same terms of office they would possess as if the merger had not been approved. The number of members on the board of the merged district must be reduced to either three or five members as provided in subsections (2) and (3) of this section, depending on whether the district has chosen to eventually have either a three-member or a five-member board under section 705 of this act.
     (2) The number of members on the board of the merged district must be reduced by one whenever a community facilities commissioner resigns from office or a vacancy otherwise occurs on the board, until the number of remaining members is reduced to the number of members that is chosen for the board eventually to have. The reduction of membership on the board may not be considered to be a vacancy that is to be filled until the number of remaining members is less than the number of members on the board that is chosen for the board eventually to have.
     (3)(a) At the next three district general elections after the merger is approved, the number of community facilities commissioners for the merged district that are elected must be as follows, notwithstanding the number of community facilities commissioners whose terms expire:
     (i) In the first election after the merger, only one position must be filled, whether the new community facilities district be a three-member district or a five-member district.
     (ii) In each of the two subsequent elections, one position must be filled if the new community facilities district is a three-member district and two positions must be filled if the new community facilities district is a five-member district.
     (b) After the elections specified in (a) of this subsection, the community facilities commissioners must be elected in the same manner as prescribed for the community facilities districts of the state.
     (4) A ballot proposition to create commissioner districts may be submitted to the voters of the community facilities districts proposed to be merged at the same election the ballot proposition is submitted authorizing the merging of the community facilities districts. The procedure to create commissioner districts must conform with section 702 of this act, except that: (a) Resolutions proposing the creation of commissioner districts must be adopted by unanimous vote of the boards of community facilities commissioners of each of the community facilities districts that are proposed to be merged; and (b) commissioner districts will be authorized only if the ballot propositions to authorize the merger and to create commissioner districts are both approved. A ballot proposition authorizing the creation of commissioner districts is approved if it is approved by a simple majority vote of the combined voters of all the community facilities districts proposed to be merged. The commissioner districts may not be drawn until the number of commissioners in the community facilities district has been reduced under subsections (1) through (3) of this section to either three or five commissioners. After this reduction of community facilities commissioners has occurred the commissioner districts must be drawn and used for the election of the successor community facilities commissioners.

NEW SECTION.  Sec. 310   (1) A part of one district may be transferred and merged with an adjacent district if the area can be better served by the merged district. To effect such a merger, a petition, signed by a majority of the commissioners of the merging district or signed by not less than fifteen percent of the qualified electors residing in the area to be merged, must be filed with the commissioners of the merging district, if signed by electors, or with the commissioners of the merger district if signed by commissioners of the merging district. If the commissioners of the merging district approve the petition, the petition must be presented to the commissioners of the merger district. If the commissioners of the merger district approve the petition, an election must be called in the area to be merged.
     (2) In the event that either board of community facilities commissioners does not approve the petition, the petition may be approved by the boundary review board of the county or the county legislative authority of the county in which the area to be merged is situated, and may approve the merger if it decides the area can be better served by a merger. If the part of the merging district that is proposed to merge with the merger district is located in more than one county, the approval must be by the boundary review board or county legislative authority of each county. If there is an affirmative decision, an election must be called in the area to be merged.
     (3) A majority of the votes cast is necessary to approve the transfer under this section.

NEW SECTION.  Sec. 311   If three-fifths of the qualified electors in the area to be merged sign a petition to merge the districts, no election on the question of the merger is necessary, in which case the auditor or lead auditor must return the petition, together with a certificate of sufficiency, to the board of the merger district. The board of the merger district must then adopt a resolution declaring the portion of the district merged in the same manner and to the same effect as if the same had been authorized by an election.

NEW SECTION.  Sec. 312   (1) When any portion of a community facilities district merges with another community facilities district, any employee of the merging district who: (a) Was at the time of merger employed exclusively or principally in performing the powers, duties, and functions which are to be performed by the merger district; (b) will, as a direct consequence of the merger, be separated from the employ of the merging district; and (c) can perform the duties and meet the minimum requirements of the position to be filled, then such employee may transfer employment to the merger district as provided in this section and sections 313 and 314 of this act.
     (2) For purposes of this section and sections 313 and 314 of this act, employee means an individual whose employment with a community facilities district has been terminated because the community facilities district merged with another community facilities district for purposes of providing community facilities operations and projects.

NEW SECTION.  Sec. 313   (1) An eligible employee may transfer into the merger district by filing a written request with the board of community facilities commissioners of the merger district and by giving written notice to the board of community facilities commissioners of the merging district. Upon receipt of such request by the board of the merger district the transfer of employment must be made. The employee so transferring will (a) be on probation for the same period as are new employees of the merger district in the position filled, but if the transferring employee has already completed a probationary period as a community facilities employee prior to the transfer, then the employee may only be terminated during the probationary period for failure to adequately perform assigned duties, not meeting the minimum qualifications of the position, or behavior that would otherwise be subject to disciplinary action, (b) be eligible for promotion no later than after completion of the probationary period, (c) receive a salary at least equal to that of other new employees of the merger district in the position filled, and (d) in all other matters, such as retirement, vacation, and sick leave, have all the rights, benefits, and privileges to which he or she would have been entitled to as an employee of the merger district from the beginning of employment with the merging district. However, for purposes of layoffs by the merger district, only the time of service accrued with the merger district must apply unless an agreement is reached between the collective bargaining representatives of the employees of the merging and merger districts and the merging and merger districts. The board of the merging district must, upon receipt of such notice, transmit to the board of the merger district a record of the employee's service with the merging district, which must be credited to such employee as a part of the period of employment in the merger district. All accrued benefits are transferable provided that the recipient district provides comparable benefits. All benefits must then accrue based on the combined seniority of each employee in the recipient district.
     (2) As many of the transferring employees must be placed upon the payroll of the merger district as the merger district determines are needed to provide services. These needed employees must be taken in order of seniority and the remaining employees who transfer as provided in this section and sections 312 and 314 of this act must head the list for employment in order of their seniority, to the end that they must be the first to be reemployed in the merger district when appropriate positions become available. However, employees who are not immediately hired by the community facilities district must be placed on a reemployment list for a period not to exceed thirty-six months unless a longer period is authorized by an agreement reached between the collective bargaining representatives of the employees of the merging and merged community facilities districts and the merging and merged community facilities districts.

NEW SECTION.  Sec. 314   If, as a result of merging of districts any employee is laid off who is eligible to transfer to the merger district under this section and sections 312 and 313 of this act, the merging district must notify the employee of the right to transfer and the employee must have ninety days to transfer employment to the merger district.

NEW SECTION.  Sec. 315   A merger district located in a single county, that merged with a merging district located in another county or counties, must be identified by the name of each county in which the community facilities district is located, listed alphabetically, followed by a number that is the next highest number available for a community facilities district in one of the counties that has the greatest number of community facilities districts.

NEW SECTION.  Sec. 316   A community facilities district resulting from the merger of two or more community facilities districts located in the same county must be identified by the name of the county and the number of the merger district. However, the community facilities district resulting from such a merger must be identified by the number of the merging district or one of the merging districts if a resolution providing for this number change is adopted by the board of community facilities commissioners of the district resulting from the merger or if resolutions providing for this number change are adopted by each of the boards of community facilities commissioners of the districts proposed to be merged.

NEW SECTION.  Sec. 401   Actions taken under this chapter may be subject to potential review by a boundary review board under chapter 36.93 RCW.

NEW SECTION.  Sec. 402   Territory within a community facilities district may be withdrawn from the district in the same manner provided by law for withdrawal of territory from water-sewer districts, as provided by chapter 57.28 RCW.

NEW SECTION.  Sec. 403   The provisions of RCW 57.28.110 apply to territory withdrawn from a community facilities district under the provision of this chapter.

NEW SECTION.  Sec. 404   Community facilities commissioners residing in territory withdrawn from a community facilities district must be replaced in the manner provided for the filling of vacancies in section 707 of this act.

NEW SECTION.  Sec. 501   Actions taken under this chapter may be subject to potential review by a boundary review board under chapter 36.93 RCW.

NEW SECTION.  Sec. 502   Community facilities districts may be dissolved by a majority vote of the registered electors of the district at an election conducted by the election officials of the county or counties in which the district is located in accordance with the general election laws of the state. The proceedings for dissolution may be initiated by the adoption of a resolution by the board of commissioners of the district calling for the dissolution. The dissolution of the district does not cancel outstanding obligations of the district and the county legislative authority or authorities of the county or counties in which the district was located may make annual levies against the lands within the district until the obligations of the districts are paid. When the obligations are fully paid, all moneys in district funds and all collections of unpaid district taxes must be transferred to the expense fund of the county. Where the community facilities district that was dissolved was located in more than one county, the amount of money transferred to the expense fund of each county must be in direct proportion to the amount of assessed valuation of the community facilities district that was located in each county at the time of its dissolution.

NEW SECTION.  Sec. 601   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.

NEW SECTION.  Sec. 602   Community facilities districts have full authority to carry out their purposes and to that end may acquire, purchase, hold, lease, manage, occupy, and sell real and personal property, 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 assessments and special taxes 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. 603   Any community facilities district organized under this title may:
     (1) Lease, acquire, own, maintain, operate, 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, 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;
     (4) Encourage uniformity and coordination of community facilities district operations. The community facilities commissioners of community facilities districts may form an association to secure information of value regarding district purposes, to hold and attend meetings, and to promote more economical and efficient operation of the associated community facilities districts. The commissioners of community facilities districts in the association must adopt articles of association or articles of incorporation for a nonprofit corporation, select a chairman, secretary, and other officers as they may determine, and may employ and discharge agents and employees as the officers deem convenient to carry out the purposes of the association. The expenses of the association may be paid from funds paid into the association by community facilities districts. However, the aggregate contributions made to the association by a district in a calendar year may not exceed two and one-half cents per thousand dollars of assessed valuation; and
     (5) Perform acts consistent with this title and not otherwise prohibited by law.

NEW SECTION.  Sec. 604   (1) In addition to other authority that a community facilities district possesses, a community facilities district may provide any public improvement as defined under RCW 39.89.020, but this additional authority is limited to participating in the financing of the public improvements as provided under RCW 39.89.050.
     (2) This section does not limit the authority of a community facilities district to otherwise participate in the public improvements if that authority exists elsewhere.

NEW SECTION.  Sec. 605   (1) 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.
     (2) The purchase price specified in a contract or promissory note to purchase property under this section may not result in a total indebtedness in excess of three-eighths of one percent of the value of the taxable property in the community facilities district.
     (3) If a proposed purchase contract or promissory note under this section would result in a total indebtedness in excess of that amount, a proposition to determine whether that contract or promissory note may be executed must be submitted to the voters for approval or rejection in the same manner that bond issues for capital purposes are submitted to the voters.
     (4) A community facilities district may jointly execute contracts, promissory notes, deeds of trust, or mortgages authorized by this section with any governmental entity.
     (5) For the purposes of this section, "value of the taxable property" has the same meaning as provided in RCW 39.36.015.

NEW SECTION.  Sec. 606   The board of commissioners of each community facilities district may purchase liability insurance with limits it deems reasonable for the purpose of protecting its officials and employees against liability for personal or bodily injuries and property damage arising from their acts or omissions while performing or in good faith purporting to perform their official duties.

NEW SECTION.  Sec. 701   (1) The affairs of the district must be managed by a board of community facilities commissioners composed of three registered voters residing in the district except as provided in sections 703 and 705 of this act. Each member must each receive ninety dollars per day or portion thereof, not to exceed eight thousand six hundred forty dollars per year, for time spent in actual attendance at official meetings of the board or in performance of other services or duties on behalf of the district.
     (2) In addition, they must receive necessary expenses incurred in attending meetings of the board or when otherwise engaged in district business, and are entitled to receive the same insurance available to all employees of the district. However, the premiums for such insurance, except liability insurance, must be paid by the individual commissioners who elect to receive it.
     (3) Any commissioner may waive all or any portion of his or her compensation payable under this section as to any month or months during his or her term of office, by a written waiver filed with the secretary as provided in this section. The waiver, to be effective, must be filed any time after the commissioner's election and prior to the date on which the compensation would otherwise be paid. The waiver must specify the month or period of months for which it is made.
     (4) The board must fix the compensation to be paid the secretary and all other agents and employees of the district.
     (5) The dollar thresholds established in this section must be adjusted for inflation by the office of financial management every five years, beginning July 1, 2010, based upon changes in the consumer price index during that time period. "Consumer price index" means, for any calendar year, that year's annual average consumer price index, for Washington state, for wage earners and clerical workers, all items, compiled by the bureau of labor and statistics, United States department of labor. If the bureau of labor and statistics develops more than one consumer price index for areas within the state, the index covering the greatest number of people, covering areas exclusively within the boundaries of the state, and including all items must be used for the adjustments for inflation in this section. The office of financial management must calculate the new dollar threshold and transmit it to the office of the code reviser for publication in the Washington State Register at least one month before the new dollar threshold is to take effect.
     (6) A person holding office as commissioner for two or more districts shall receive only that per diem compensation authorized for one of his or her commissioner positions as compensation for attending an official meeting or conducting official services or duties while representing more than one of his or her districts. However, such commissioner may receive additional per diem compensation if approved by resolution of all boards of the affected districts.

NEW SECTION.  Sec. 702   (1) The board of community facilities commissioners of a community facilities district may adopt a resolution by unanimous vote causing a ballot proposition to be submitted to voters of the district authorizing the creation of commissioner districts. The board of community facilities commissioners must create commissioner districts if the ballot proposition authorizing the creation of commissioner districts is approved by a simple majority vote of the voters of the community facilities district voting on the proposition. Three commissioner districts must be created for a community facilities district with three commissioners, and five commissioner districts must be created for a community facilities district with five commissioners. No two commissioners may reside in the same commissioner district.
     (2) No change in the boundaries of any commissioner district may be made within one hundred twenty days next before the date of a general district election, nor within twenty months after the commissioner districts have been established or altered. However, if a boundary change results in one commissioner district being represented by two or more commissioners, those commissioners having the shortest unexpired terms must be assigned by the board to commissioner districts where there is a vacancy, and the commissioners so assigned are deemed to be residents of the commissioner districts to which they are assigned for purposes of determining whether those positions are vacant.
     (3) The population of each commissioner district must include approximately equal population. Commissioner districts must be redrawn as provided in chapter 29A.76 RCW. Commissioner districts must be used as follows: (a) Only a registered voter who resides in a commissioner district may be a candidate for, or serve as, a commissioner of the commissioner district; and (b) only voters of a commissioner district may vote at a primary to nominate candidates for a commissioner of the commissioner district. Voters of the entire community facilities district may vote at a general election to elect a person as a commissioner of the commissioner district.
     (4) When a board of community facilities commissioners that has commissioner districts has been increased to five members under section 703 of this act, the board of community facilities commissioners must divide the community facilities district into five commissioner districts before it appoints the two additional community facilities commissioners. The two additional community facilities commissioners who are appointed must reside in separate commissioner districts in which no other community facilities commissioner resides.

NEW SECTION.  Sec. 703   (1) In the event a three-member board of commissioners of any community facilities district determines by resolution that it would be in the best interest of the district to increase the number of commissioners from three to five, or in the event the board is presented with a petition signed by ten percent of the registered voters resident within the district who voted in the last general municipal election calling for such an increase in the number of commissioners of the district, the board must submit a resolution to the county legislative authority or authorities of the county or counties in which the district is located requesting that an election be held. Upon receipt of the resolution, the legislative authority or authorities of the county or counties must call a special election to be held within the community facilities district at which election the following proposition must be submitted to the voters substantially as follows:

     "Shall the board of commissioners of . . . . . county community facilities district No . . . . be increased from three members to five members?
                    YES
                    . . . . . . .
                    NO
                    . . . . . . ."

     (2) If the community facilities district is located in more than a single county, this proposition must indicate the name of the district.
     (3) If the proposition receives a majority approval at the election, the board of commissioners of the community facilities district shall be increased to five members. The two additional members must be appointed in the same manner as provided in section 705 of this act.

NEW SECTION.  Sec. 704   (1) Except as provided in section 705 of this act, in the event a five-member board of commissioners of any community facilities district determines by resolution that it would be in the best interest of the community facilities district to decrease the number of commissioners from five to three, or in the event the board is presented with a petition signed by ten percent of the registered voters resident within the district who voted in the last general municipal election calling for such a decrease in the number of commissioners of the district, the board must submit a resolution to the county legislative authority or authorities of the county or counties in which the district is located requesting that an election be held. Upon receipt of the resolution, the legislative authority or authorities of the county or counties must call a special election to be held within the community facilities district at which election the following proposition must be submitted to the voters substantially as follows:

     "Shall the board of commissioners of . . . . . county community facilities district No . . . . be decreased from five members to three members?
                    YES
                    . . . . . . .
                    NO
                    . . . . . . ."

     (2) If the community facilities district has commissioner districts, the commissioners of the district must pass a resolution, before the submission of the proposition to the voters, to either redistrict from five commissioner districts to three commissioner districts or eliminate the commissioner districts. The resolution takes effect upon approval of the proposition by the voters.
     (3) If the community facilities district is located in more than a single county, this proposition must indicate the name of the district.
     (4) If the proposition receives a majority approval at the election, the board of commissioners of the community facilities district shall be decreased to three members. The two members shall be decreased in accordance with RCW 52.06.085.

NEW SECTION.  Sec. 705   In a community facilities district maintaining a community facilities department consisting wholly of personnel employed on a full-time, fully paid basis, there must be five community facilities commissioners. The two positions created on boards of community facilities commissioners by this section must be filled initially as for a vacancy, except that the appointees shall draw lots, one appointee to serve until the next community facilities district general election after the appointment, at which two commissioners must be elected for six-year terms, and the other appointee to serve until the second community facilities district general election after the appointment, at which two commissioners must be elected for six-year terms.

NEW SECTION.  Sec. 706   The polling places for a community facilities district election may be located inside or outside the boundaries of the district, as determined by the auditor of the county in which the community facilities district is located, and the elections of the community facilities district may not be held to be irregular or void on that account.

NEW SECTION.  Sec. 707   Vacancies on a board of community facilities commissioners must occur as provided in chapter 42.12 RCW. In addition, if a community facilities commissioner is absent from the district for three consecutive regularly scheduled meetings unless by permission of the board, the office must be declared vacant by the board of commissioners. However, such an action may not be taken unless the commissioner is notified by mail after two consecutive unexcused absences that the position will be declared vacant if the commissioner is absent without being excused from the next regularly scheduled meeting. Vacancies on a board of community facilities commissioners must be filled as provided in chapter 42.12 RCW.

NEW SECTION.  Sec. 708   (1) The initial three members of the board of community facilities commissioners must be elected at the same election as when the ballot proposition is submitted to the voters authorizing the creation of the community facilities district. If the district is not authorized to be created, the election of the initial community facilities commissioners is null and void. If the district is authorized to be created, the initial community facilities commissioners must take office immediately when qualified. Candidates must file for each of the three separate community facilities commissioner positions. Elections must be held as provided in chapter 29A.52 RCW, with the county auditor opening up a special filing period as provided in RCW 29A.24.171 and 29A.24.181, as if there were a vacancy. The person who receives the greatest number of votes for each position must be elected to that position. The terms of office of the initial community facilities commissioners must be staggered as follows: (a) The person who is elected receiving the greatest number of votes is elected to a six-year term of office if the election is held in an odd-numbered year or a five-year term of office if the election is held in an even-numbered year; (b) the person who is elected receiving the next greatest number of votes is elected to a four-year term of office if the election is held in an odd-numbered year or a three-year term of office if the election is held in an even-numbered year; and (c) the other person who is elected is elected to a two-year term of office if the election is held in an odd-numbered year or a one-year term of office if the election is held in an even-numbered year. The initial commissioners must take office immediately when elected and qualified and their terms of office must be calculated from the first day of January in the year following their election.
     (2) The term of office of each subsequent commissioner is six years. Each commissioner must serve until a successor is elected and qualified and assumes office in accordance with RCW 29A.20.040.

NEW SECTION.  Sec. 709   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. 710   (1) The community facilities commissioners must elect a chairman from their number and must appoint a secretary of the district, who may or may not be a member of the board, for such term as they determine by resolution. The secretary, if a member of the board, may not receive additional compensation for serving as secretary.
     (2) The secretary of the district must keep a record of the proceedings of the board, must perform other duties as prescribed by the board or by law, and must take and subscribe an official oath similar to that of the community facilities commissioners, which oath must be filed in the same office as that of the commissioners.

NEW SECTION.  Sec. 711   (1) The office of the community facilities commissioners and principal place of business of the district must be at some place within the county in which the district is situated, to be designated by the board of community facilities commissioners.
     (2) The board must hold regular monthly meetings at a place and date as it determines by resolution, and may adjourn its meetings as required for the proper transaction of business. Special meetings of the board may be called at any time under the provisions of RCW 42.30.080.

NEW SECTION.  Sec. 712   All meetings of the board of community facilities commissioners 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 board must be open to inspection in accordance with chapter 42.56 RCW. The board 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 such acts as may be necessary to carry out the objects of the creation of the district.

NEW SECTION.  Sec. 713   Insofar as practicable, purchases and any public works by the district must be based on competitive bids. A formal sealed bid procedure must be used as standard procedure for purchases and contracts for purchases executed by the board of commissioners. Formal sealed bidding may not be required for:
     (1) The purchase of any materials, supplies, or equipment if the cost will not exceed the sum of ten thousand dollars. However, whenever the estimated cost does not exceed fifty thousand dollars, the commissioners may by resolution use the process provided in RCW 39.04.190 to award contracts;
     (2) Contracting for work to be done involving the construction or improvement of buildings where the estimated cost will not exceed the sum of two thousand five hundred dollars, which includes the costs of labor, material, and equipment;
     (3) Contracts using the small works roster process under RCW 39.04.155; and
     (4) Any contract for purchases or public work pursuant to RCW 39.04.280 if an exemption contained within that section applies to the purchase or public work.

NEW SECTION.  Sec. 714   (1) Notice of the call for bids must be given by publishing the notice in a newspaper of general circulation within the district at least thirteen days before the last date upon which bids will be received. If no bid is received on the first call, the commissioners may readvertise and make a second call, or may enter into a contract without a further call.
     (2) A public work involving three or more specialty contractors requires that the district retain the services of a general contractor as defined in RCW 18.27.010.

NEW SECTION.  Sec. 715   A low bidder who claims error and fails to enter into a contract with a community facilities district for a public works project is prohibited from bidding on the same project if a second or subsequent call for bids is made for the project.

NEW SECTION.  Sec. 801   (1) A community facilities district may finance, 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) Libraries, 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. 802   It is the duty of the county treasurer of the county in which all, or the largest portion, of any community facilities district created under this title is located to receive and disburse district revenues, to collect taxes and assessments authorized and levied under this title, and to credit district revenues to the proper fund. However, where a community facilities district is located in more than one county, the county treasurer of each other county in which the district is located must collect the community facilities district's taxes and assessments that are imposed on property located within the county and transfer these funds to the county treasurer of the county in which the largest portion of the district is located.

NEW SECTION.  Sec. 803   In each county in which a community facilities district is situated, there must be in the county treasurer's office of each district the following funds: (1) Expense fund; (2) reserve fund; (3) local improvement district No. . . . . fund; (4) general obligation bond fund; and (5) such other funds as the board of commissioners of the district may establish. Taxes levied for administrative, operative, and maintenance purposes, for the purchase of machinery and equipment, and for the purchase of real property, when collected, and proceeds from the sale of general obligation bonds must be placed by the county treasurer in the proper fund. Taxes levied for the payment of general obligation bonds and interest thereon, when collected, must be placed by the county treasurer in the general obligation bond fund. The board of community facilities commissioners may include in its annual budget items of possible outlay to be provided for and held in reserve for any district purpose, and taxes must be levied therefor. Such taxes, when collected, must be placed by the county treasurer in the reserve fund. The reserve fund, or any part of it, may be transferred by the county treasurer to other funds of the district at any time by order of the board of community facilities commissioners. Special assessments levied against the lands in any improvement district within the district, when collected, must be placed by the county treasurer in the local improvement district fund for the local improvement district.

NEW SECTION.  Sec. 804   Annually after the county board or boards of equalization of the county or counties in which the district is located have equalized the assessments for general tax purposes in that year, the secretary of the district must prepare and certify a budget of the requirements of each district fund, and deliver it to the county legislative authority or authorities of the county or counties in which the district is located in ample time for the tax levies to be made for district purposes.

NEW SECTION.  Sec. 805   At the time of making general tax levies in each year the county legislative authority or authorities of the county or counties in which a community facilities district is located shall make the required levies for district purposes against the real and personal property in the district in accordance with the equalized valuations of the property for general tax purposes and as a part of the general taxes. The tax levies shall be a part of the general tax roll and shall be collected as a part of the general taxes against the property in the district.

NEW SECTION.  Sec. 806   (1) Except as provided in subsections (2) and (3) of this section, the county treasurer must pay out money received for the account of the district on warrants issued by the county auditor against the proper funds of the district. The warrants must be issued on vouchers approved and signed by a majority of the district board and by the district secretary.
     (2) The board of community facilities commissioners of a district that had an annual operating budget of five million or more dollars in each of the preceding three years may by resolution adopt a policy to issue its own warrants for payment of claims or other obligations of the community facilities district. The board of 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 chair of the board of community facilities commissioners, 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 board of community facilities commissioners of a district that had an annual operating budget of greater than two hundred fifty thousand dollars and under five million dollars in each of the preceding three years may, upon agreement between the county treasurer and the board of community facilities commissioners, with approval of the board of community facilities commissioners by resolution, adopt a policy to issue its own warrants for payment of claims or other obligations of the community facilities district. The board of 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 chair of the board of community facilities commissioners, 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. The district secretary may then issue the warrants specified in the general certificate.
     (4) The county treasurer may also pay general obligation bonds and the accrued interest thereon in accordance with their terms from the general obligation bond 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. 807   The board of community facilities commissioners 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 of facilities, and evidence the same by the issuance and sale of general obligation bonds of the district payable at such time or times not longer than twenty years from the issuing date of the bonds. Such bonds must be issued and sold in accordance with chapter 39.46 RCW. Such bonds may not exceed an amount, together with any outstanding nonvoter-approved general obligation indebtedness, equal to three-eighths of one percent of the value of the taxable property within the community facilities district, as the term "value of the taxable property" is defined in RCW 39.36.015.

NEW SECTION.  Sec. 808   Except as authorized by the issuance and sale of general obligation bonds, the creation of local improvement districts, and the issuance of local improvement bonds and warrants of the community facilities district, the board of community facilities commissioners may not incur expenses or other financial obligations payable in any year in excess of the aggregate amount of taxes levied for that year, revenues derived from all other sources, and the cash balances on hand in the expense and reserve funds of the district on the first day of that year. In the event that there are any unpaid warrants drawn on any district funds for expenses and obligations incurred and outstanding at the end of any calendar year, the warrants may be paid from taxes collected in the subsequent year or years and from other income.

NEW SECTION.  Sec. 809   Community facilities districts additionally 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, equal to three-fourths of one percent of the value of the taxable property within such district, as the term "value of the taxable property" is defined in RCW 39.36.015, and to provide for the retirement thereof by excess property tax levies, when the voters of the district have approved a proposition authorizing such indebtedness and levies by an affirmative vote of three-fifths of those voting on the proposition at such election, at which election the total number of persons voting constitutes not less than forty percent of the voters in the community facilities district who voted at the last preceding general state election. The maximum term of such bonds may not exceed twenty years. Such bonds must be issued and sold in accordance with chapter 39.46 RCW. Such elections must be held as provided in RCW 39.36.050.

NEW SECTION.  Sec. 810   To carry out the purposes for which community facilities districts are created, the board of community facilities commissioners of a district may levy each year, in addition to the levy or levies provided in section 809 of this act 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 not to exceed fifty cents per thousand dollars of assessed value. However, in no case may the total general levy for all purposes, except the levy for the retirement of general obligation bonds, exceed one dollar per thousand dollars of assessed value. Levies in excess of one dollar per thousand dollars of assessed value or in excess of the aggregate dollar rate limitations or both may be made for any district purpose when so authorized at a special election under RCW 84.52.130. Any such tax when levied must be certified to the proper county officials for the collection of the tax as for other general taxes. The taxes when collected must be placed in the appropriate district fund or funds as provided by law, and must be paid out on warrants of the auditor of the county in which all, or the largest portion of, the district is located, upon authorization of the board of community facilities commissioners of the district.

NEW SECTION.  Sec. 811   Notwithstanding the limitation of dollar rates contained in section 810 of this act, the board of community facilities commissioners of any district may levy, in addition to any levy for the payment of the principal and interest of outstanding general obligation bonds, an ad valorem tax on all property located in the district of not to exceed fifty cents per thousand dollars of assessed value and which will not cause the combined levies to exceed the constitutional or statutory limitations, and the additional levy, or any portion of the levy, may also be made when dollar rates of other taxing units are released by agreement with the other taxing units from their authorized levies.

NEW SECTION.  Sec. 812   A community facilities district may accept and receive in 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 board.

NEW SECTION.  Sec. 813   Notwithstanding the limitation of dollar rates contained in section 810 of this act, and in addition to any levy for the payment of the principal and interest of any outstanding general obligation bonds and in addition to any levy authorized by sections 810 and 811 of this act or any other statute, the board of community facilities commissioners of any community facilities district within such county, which community facilities district has at least one full-time, paid employee, or contracts with another municipal corporation for the services of at least one full-time, paid employee, is hereby authorized to levy each year an ad valorem tax on all taxable property within such district of not to exceed fifty cents per thousand dollars of assessed value, which levy may be made only if it will not affect dollar rates which other taxing districts may lawfully claim nor cause the combined levies to exceed the constitutional and/or statutory limitations.

NEW SECTION.  Sec. 901   (1) The board of community facilities commissioners of a community facilities district may by resolution, for community facilities district purposes authorized by law, fix and impose a benefit charge on personal 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. However, a benefit charge may not apply to personal property and improvements to real property owned or used by any recognized religious denomination or religious organization as, or including, a sanctuary or for purposes related to the bona fide religious ministries of the denomination or religious organization, including schools and educational facilities used for kindergarten, primary, or secondary educational purposes or for institutions of higher education and all grounds and buildings related thereto, but not including personal property and improvements to real property owned or used by any recognized religious denomination or religious organization for business operations, profit-making enterprises, or activities not including use of a sanctuary or related to kindergarten, primary, or secondary educational purposes or for institutions of higher education. The aggregate amount of such benefit charges in any one year may not exceed an amount equal to sixty percent of the operating budget for the year in which the benefit charge is to be collected. It is the duty of the county legislative authority or authorities of the county or counties in which the community facilities district is located to make any necessary adjustments to assure compliance with such limitation and to immediately notify the board of community facilities commissioners of any changes thereof.
     (2) A benefit charge imposed must be reasonably proportioned to the measurable benefits to property resulting from the 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. The board of community facilities commissioners may determine that certain properties or types or classes of properties are not receiving measurable benefits based on criteria they establish by resolution.
(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. 902   (1) The term "personal property" for the purposes of this chapter includes every form of tangible personal property including, but not limited to, all goods, chattels, stock in trade, estates, or crops.
     (2) All personal property not assessed and subjected to ad valorem taxation under Title 84 RCW, all property under contract or for which the district is receiving payment for as authorized by RCW 52.30.020 and all property subject to the provisions of chapter 54.28 RCW, or all property that is subject to a contract for services with a community facilities district is exempt from the benefit charge imposed under this chapter.
     (3) For the purposes of this section, "personal property" does not include any personal property used for farming, field crops, farm equipment, or livestock.

NEW SECTION.  Sec. 903   The resolution establishing benefit charges as specified in section 901 of this act 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 county assessor of each county in which the district is located must determine and identify the personal properties 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. 904   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. 905   (1) Any benefit charge authorized by this chapter is not effective unless a proposition to impose the benefit charge is approved by a sixty percent majority of the voters of the district voting at a general election or at a special election called by the district for that purpose, held within the community facilities district. An election held pursuant to this section must be held not more than twelve months prior to the date on which the first such charge is to be assessed. However, a benefit charge approved at an election may not remain in effect for a period of more than six years nor more than the number of years authorized by the voters if fewer than six years unless subsequently reapproved by the voters.
     (2) The ballot must be submitted so as to enable the voters favoring the authorization of a community facilities district benefit charge to vote "Yes" and those opposed thereto to vote "No," and the ballot must be:

     "Shall . . . . . . . county community facilities district No . . . . be authorized to impose benefit charges each year for . . . . . (insert number of years not to exceed six) years, not to exceed an amount equal to sixty percent of its operating budget, and be prohibited from imposing an additional property tax under section 813 of this act?
                    YES
                    . . . . . . .
                    NO
                    . . . . . . ."

     (3) Districts renewing the benefit charge may elect to use the following alternative ballot:

     "Shall . . . . . . . county community facilities district No . . . . be authorized to continue voter-authorized benefit charges each year for . . . . . (insert number of years not to exceed six) years, not to exceed an amount equal to sixty percent of its operating budget, and be prohibited from imposing an additional property tax under section 813 of this act?
                    YES
                    . . . . . . .
                    NO
                    . . . . . . ."

NEW SECTION.  Sec. 906   (1) Not less than ten days nor more than six months before the election at which the proposition to impose the benefit charge is submitted as provided in this chapter, the board of community facilities commissioners of the district must hold a public hearing specifically setting forth its proposal to impose benefit charges for the support of its legally authorized activities which will maintain or improve the services afforded in the district. A report of the public hearing must be filed with the county treasurer of each county in which the property is located and be available for public inspection.
     (2) Prior to November 15th of each year the board of community facilities commissioners must hold a public hearing to review and establish the community facilities district benefit charges for the subsequent year.
     (3) All resolutions imposing or changing the benefit charges must be filed with the county treasurer or treasurers of each county in which the property is located, together with the record of each public hearing, before November 30th immediately preceding the year in which the benefit charges are to be collected on behalf of the district.
     (4) After the benefit charges have been established, the owners of the property subject to the charge must be notified of the amount of the charge.

NEW SECTION.  Sec. 907   A community facilities district that imposes a benefit charge under this chapter may not impose all or part of the property tax authorized under section 813 of this act.

NEW SECTION.  Sec. 908   After notice has been given to the property owners of the amount of the charge, the board of community facilities commissioners of a community facilities district imposing a benefit charge under this chapter must form a review board for at least a two-week period and shall, upon complaint in writing of a party aggrieved owning property in the district, reduce the charge of a person who, in their opinion, has been charged too large a sum, to a sum or amount as they believe to be the true, fair, and just amount.

NEW SECTION.  Sec. 909   A person who is receiving the exemption contained in RCW 84.36.381 through 84.36.389 is exempt from any legal obligation to pay a portion of the charge imposed by this chapter according to the following.
     (1) A person who meets the income limitation contained in RCW 84.36.381(5)(a) and does not meet the income limitation contained in RCW 84.36.381(5)(b) (i) or (ii) shall be exempt from twenty-five percent of the charge.
     (2) A person who meets the income limitation contained in RCW 84.36.381(5)(b)(i) shall be exempt from fifty percent of the charge.
     (3) A person who meets the income limitation contained in RCW 84.36.381(5)(b)(ii) shall be exempt from seventy-five percent of the charge.

NEW SECTION.  Sec. 1001   Regional community facilities authority planning committees are advisory entities that are created, convened, and empowered as follows:
     (1) Any two or more community facilities jurisdictions may create a regional community facilities authority and convene a regional community facilities authority planning committee. No community facilities jurisdiction may participate in more than one district.
     (2) Each governing body of the community facilities jurisdictions participating in planning under this chapter must appoint three elected officials to the planning committee. Members of the planning committee may receive compensation of seventy dollars per day, or portion thereof, not to exceed seven hundred dollars per year, for attendance at planning committee meetings and for performance of other services in behalf of the district, and may be reimbursed for travel and incidental expenses at the discretion of their respective governing body.
     (3) A regional community facilities authority planning committee may receive state funding, as appropriated by the legislature, or county funding provided by the affected counties for start-up funding to pay for salaries, expenses, overhead, supplies, and similar expenses ordinarily and necessarily incurred. Upon creation of a regional community facilities authority, the authority must within one year reimburse the state or county for any sums advanced for these start-up costs from the state or county.
     (4) The planning committee must conduct its affairs and formulate a regional community facilities authority plan as provided under section 1002 of this act.
     (5) At its first meeting, a regional community facilities authority planning committee may elect officers and provide for the adoption of rules and other operating procedures.
     (6) The planning committee may dissolve itself at any time by a majority vote of the total membership of the planning committee. Any participating community facilities jurisdiction may withdraw upon thirty calendar days' written notice to the other jurisdictions.

NEW SECTION.  Sec. 1002   (1) A regional community facilities authority planning committee must adopt a regional community facilities authority plan providing for the design, financing, and development of community facilities projects. The planning committee may consider the following factors in formulating its plan:
     (a) Land use planning criteria; and
     (b) The input of cities and counties located within, or partially within, a participating community facilities jurisdiction.
     (2) The planning committee may coordinate its activities with neighboring cities, towns, and other local governments that engage in community facilities planning.
     (3) The planning committee must:
     (a) Create opportunities for public input in the development of the plan;
     (b) Adopt a plan proposing the creation of a community facilities district and recommending design, financing, and development of the facilities and operations of community facilities districts, including maintenance and preservation of facilities or systems; and
     (c) In the plan, recommend sources of revenue authorized by section 1003 of this section, identify the portions of the plan that may be amended by the board of the district without voter approval, consistent with section 1003 of this section, and recommend a financing plan to fund selected community facilities projects.
     (4) Once adopted, the plan must be forwarded to the participating community facilities jurisdictions' governing bodies to initiate the election process under section 1005 of this act.
     (5) If the ballot measure is not approved, the planning committee may redefine the selected regional community facilities authority projects, financing plan, and the ballot measure. The community facilities jurisdictions' governing bodies may approve the new plan and ballot measure, and may then submit the revised proposition to the voters at a subsequent election or a special election. If a ballot measure is not approved by the voters by the third vote, the planning committee is dissolved.

NEW SECTION.  Sec. 1003   (1) A regional community facilities authority planning committee may, as part of a regional community facilities authority plan, recommend the imposition of some or all of the following revenue sources, which a regional community facilities authority may impose upon approval of the voters as provided in this chapter:
     (a) Benefit charges under sections 1015 through 1023 of this act;
     (b) Property taxes under sections 1012 through 1014 and 1101 of this act, and RCW 84.09.030, 84.52.010, and 84.52.052; or
     (c) Both (a) and (b) of this subsection.
     (2) The authority may impose taxes and benefit charges as set forth in the regional community facilities authority plan upon creation of the authority, or as provided for in this chapter after creation of the authority. If the plan authorizes the authority to impose benefit charges or sixty percent voter-approved taxes, the plan and creation of the authority must be approved by an affirmative vote of sixty percent of the voters within the boundaries of the authority voting on a ballot proposition as provided in section 1004 of this act. However, if the plan provides for alternative sources of revenue that become effective if the plan and creation of the authority is approved only by a majority vote, then the plan with alternative sources of revenue and creation of the authority may be approved by an affirmative vote of the majority of those voters. If the plan does not authorize the authority to impose benefit charges or sixty percent voter-approved taxes, the plan and creation of the authority must be approved by an affirmative vote of the majority of the voters within the boundaries of the authority voting on a ballot proposition as set forth in section 1004 of this act. Except as provided in this section, all other voter approval requirements under law for the levying of property taxes or the imposition of benefit charges apply. Revenues from these taxes and benefit charges may be used only to implement the plan as set forth in this chapter.

NEW SECTION.  Sec. 1004   The governing bodies of two or more community facilities jurisdictions, upon receipt of the regional community facilities authority plan under section 1002 of this act, may certify the plan to the ballot, including identification of the revenue options specified to fund the plan. The governing bodies of the community facilities jurisdictions may draft a ballot title, give notice as required by law for ballot measures, and perform other duties as required to put the plan before the voters of the proposed authority for their approval or rejection as a single ballot measure that both approves formation of the authority and approves the plan. Authorities may negotiate interlocal agreements necessary to implement the plan. The electorate is the voters voting within the boundaries of the proposed regional community facilities authority. A simple majority of the total persons voting on the single ballot measure to approve the plan and establish the authority is required for approval. However, if the plan authorizes the authority to impose benefit charges or sixty percent voter-approved taxes, then the percentage of total persons voting on the single ballot measure to approve the plan and establish the authority is the same as in section 1003 of this act. The authority must act in accordance with the general election laws of the state. The authority is liable for its proportionate share of the costs when the elections are held under RCW 29A.04.321 and 29A.04.330.

NEW SECTION.  Sec. 1005   If the voters approve the plan, including creation of a regional community facilities authority and imposition of taxes and benefit charges, if any, the authority is formed on the next January 1st or July 1st, whichever occurs first. The appropriate county election officials must, within fifteen days of the final certification of the election results, publish a notice in a newspaper or newspapers of general circulation in the authority declaring the authority formed. A party challenging the procedure or the formation of a voter-approved authority must file the challenge in writing by serving the prosecuting attorney of each county within, or partially within, the regional community facilities authority and the attorney general within thirty days after the final certification of the election. Failure to challenge within that time forever bars further challenge of the authority's valid formation.

NEW SECTION.  Sec. 1006   (1) The regional board must adopt rules for the conduct of business. The regional board must adopt bylaws to govern authority affairs, which may include:
     (a) The time and place of regular meetings;
     (b) Rules for calling special meetings;
     (c) The method of keeping records of proceedings and official acts;
     (d) Procedures for the safekeeping and disbursement of funds; and
     (e) Any other provisions the regional board finds necessary to include.
     (2) The governing regional board must be determined by the plan and consist solely of elected officials.

NEW SECTION.  Sec. 1007   The governing regional board of the authority is responsible for the execution of the voter-approved plan. Participating jurisdictions must review the plan every ten years. The regional board may:
     (1) Levy taxes and impose benefit charges as authorized in the plan and approved by authority voters;
     (2) Enter into agreements with federal, state, local, and regional entities and departments as necessary to accomplish authority purposes and protect the authority's investments;
     (3) Accept gifts, grants, or other contributions of funds that will support the purposes and programs of the authority;
     (4) Monitor and audit the progress and execution of community facilities projects to protect the investment of the public and annually make public its findings;
     (5) Pay for services and enter into leases and contracts, including professional service contracts;
     (6) Hire, manage, and terminate employees; and
     (7) Exercise powers and perform duties as the regional board determines necessary to carry out the purposes, functions, and projects of the authority in accordance with this chapter if one of the community facilities jurisdictions is a community facilities district, unless provided otherwise in the regional community facilities authority plan, or in accordance with the statutes identified in the plan if none of the community facilities jurisdictions is a regional community facilities authority.

NEW SECTION.  Sec. 1008   (1) Except as otherwise provided in the regional community facilities authority plan, all powers, duties, and functions of a participating community facilities jurisdiction pertaining to regional community facilities authority projects be transferred to the regional community facilities authority on its creation date.
     (2)(a) Except as otherwise provided in the regional community facilities authority plan, and on the creation date of the regional community facilities authority, all reports, documents, surveys, books, records, files, papers, or written material in the possession of the participating community facilities jurisdiction pertaining to community facilities' powers, functions, and duties must be delivered to the regional community facilities authority; all real property and personal property including cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the participating community facilities jurisdiction in carrying out the community facilities jurisdictions' powers, functions, and duties must be transferred to the regional community facilities authority; and all funds, credits, or other assets held by the participating community facilities jurisdiction in connection with the community facilities jurisdictions' powers, functions, and duties must be transferred and credited to the regional community facilities authority.
     (b) Except as otherwise provided in the regional community facilities authority plan, any appropriations made to the participating community facilities jurisdiction for carrying out the community facilities jurisdictions' powers, functions, and duties must be transferred and credited to the regional community facilities authority.
     (c) Except as otherwise provided in the regional community facilities authority plan, whenever any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the governing body of the participating community facilities jurisdiction must make a determination as to the proper allocation.
     (3) Except as otherwise provided in the regional community facilities authority plan, all rules and all pending business before the participating community facilities jurisdiction pertaining to the powers, functions, and duties transferred must be continued and acted upon by the regional community facilities authority, and all existing contracts and obligations must remain in full force and must be performed by the regional community facilities authority.
     (4) The transfer of the powers, duties, functions, and personnel of the participating community facilities jurisdiction may not affect the validity of any act performed before creation of the regional community facilities authority.
     (5) If apportionments of budgeted funds are required because of the transfers, the treasurer for the authority must certify the apportionments.
     (6)(a) Subject to (c) of this subsection, all employees of the participating community facilities jurisdictions are transferred to the jurisdiction of the regional community facilities authority on its creation date. Upon transfer, unless an agreement for different terms of transfer is reached between the collective bargaining representatives of the transferring employees and the participating community facilities jurisdictions, an employee is entitled to the employee rights, benefits, and privileges to which he or she would have been entitled as an employee of a participating community facilities jurisdiction, including rights to:
     (i) Compensation at least equal to the level at the time of transfer;
     (ii) Retirement, vacation, sick leave, and any other accrued benefit;
     (iii) Promotion and service time accrual; and
     (iv) The length or terms of probationary periods, including no requirement for an additional probationary period if one had been completed before the transfer date.
     (b) If any or all of the participating community facilities jurisdictions provide for civil service for the transferring employees, the collective bargaining representatives of the transferring employees and the participating community facilities jurisdictions must negotiate regarding the establishment of a civil service system within the authority. This subsection does not apply if none of the participating community facilities jurisdictions provide for civil service.
     (c) Nothing contained in this section may be construed to alter any existing collective bargaining unit or the provisions of any existing collective bargaining agreement until the agreement has expired or until the bargaining unit has been modified as provided by law.

NEW SECTION.  Sec. 1009   (1) As provided in this section, a regional community facilities authority may withdraw areas from its boundaries into the authority areas that previously had been withdrawn from the authority under this section.
     (2)(a) The withdrawal of an area is authorized upon: (i) Adoption of a resolution by the regional board approving the withdrawal and finding that, in the opinion of the regional board, inclusion of this area within the regional community facilities authority will result in a reduction of the authority's tax levy rate under the provisions of RCW 84.52.010; or (ii) adoption of a resolution by the city or town council approving the withdrawal, if the area is located within the city or town, or adoption of a resolution by the governing body of the community facilities district within which the area is located approving the withdrawal, if the area is located outside of a city or town, but within a community facilities district.
     (b) A withdrawal under this section is effective at the end of the day on the thirty-first day of December in the year in which the resolution under (a)(i) or (ii) of this subsection is adopted, but for purposes of establishing boundaries for property tax purposes, the boundaries must be established immediately upon the adoption of the resolution.
     (c) The withdrawal of an area from the boundaries of an authority does not exempt any property therein from taxation for the purpose of paying the costs of redeeming any indebtedness of the authority existing at the time of withdrawal.
     (3)(a) An area that has been withdrawn from the boundaries of a regional community facilities authority under this section may be readmitted into the authority upon: (i) Adoption of a resolution by the regional board proposing the readmittance; and (ii) adoption of a resolution by the city or town council approving the readmittance, if the area is located within the city or town, or adoption of a resolution by the governing body of the community facilities district within which the area is located approving the readmittance, if the area is located outside of a city or town but within a community facilities district.
     (b) A readmittance under this section is effective at the end of the day on the thirty-first day of December in the year in which the adoption of the resolution under (a)(ii) of this subsection occurs, but for purposes of establishing boundaries for property tax purposes, the boundaries must be established immediately upon the adoption of the resolution.
     (c)(i) Referendum action on the proposed readmittance under this section may be taken by the voters of the area proposed to be readmitted if a petition calling for a referendum is filed with the city or town council, or governing body of the community facilities district, within a thirty-day period after the adoption of the resolution under (a)(ii) of this subsection, which petition has been signed by registered voters of the area proposed to be readmitted equal in number to ten percent of the total number of the registered voters residing in that area.
     (ii) If a valid petition signed by the requisite number of registered voters has been so filed, the effect of the resolutions must be held in abeyance and a ballot proposition to authorize the readmittance must be submitted to the voters of the area at the next special election date specified in RCW 29A.04.330 that occurs forty-five or more days after the petitions have been validated. Approval of the ballot proposition authorizing the readmittance by a simple majority vote authorizes the readmittance.

NEW SECTION.  Sec. 1010   Any community facilities district within the authority may be dissolved by a majority vote of the registered electors of the district at an election conducted by the election officials of the county or counties in which the district is located in accordance with the general election laws of the state. The proceedings for dissolution may be initiated by the adoption of a resolution by the regional board. The dissolution of the district may not cancel outstanding obligations of the district or of a local improvement district within the district, and the county legislative authority or authorities of the county or counties in which the district was located may make annual levies against the lands within the district until the obligations of the districts are paid. All powers, duties, and functions of a dissolved community facilities jurisdiction within the authority boundaries, pertaining to providing community facilities projects and operations may be transferred, by resolution, to the regional community facilities authority.

NEW SECTION.  Sec. 1011   (1) An authority may incur general indebtedness for authority purposes, issue bonds, notes, or other evidences of indebtedness not to exceed an amount, together with any outstanding nonvoter-approved general obligation debt, equal to three-fourths of one percent of the value of the taxable property within the authority. The maximum term of the obligations may not exceed twenty years. The obligations may pledge benefit charges and may pledge payments to an authority from the state, the federal government, or any community facilities jurisdiction under an interlocal contract. The interlocal contracts pledging revenues and taxes are binding for a term not to exceed twenty-five years, and taxes or other revenue pledged by an interlocal contract may not be eliminated or modified if it would impair the pledge of the contract.
     (2) An authority may also issue general obligation bonds for capital purposes not to exceed an amount, together with any outstanding general obligation debt, equal to one and one-half percent of the value of the taxable property within the authority. The authority may provide for the retirement of the bonds by excess property tax levies. The voters of the authority must approve a proposition authorizing the bonds and levies by an affirmative vote of three-fifths of those voting on the proposition at an election. At the election, the total number of persons voting must constitute not less than forty percent of the voters in the authority who voted at the last preceding general state election. The maximum term of the bonds may not exceed twenty-five years. Elections must be held as provided in RCW 39.36.050.
     (3) Obligations of an authority must be issued and sold in accordance with chapters 39.46 and 39.50 RCW, as applicable.

NEW SECTION.  Sec. 1012   (1) To carry out the purposes for which a regional community facilities authority is created, as authorized in the plan and approved by the voters, the governing regional board of an authority may annually levy the following taxes:
     (a) An ad valorem tax on all taxable property located within the authority not to exceed fifty cents per thousand dollars of assessed value;
     (b) An ad valorem tax on all property located within the authority not to exceed fifty cents per thousand dollars of assessed value and which will not cause the combined levies to exceed the constitutional or statutory limitations. This levy, or any portion of this levy, may also be made when dollar rates of other taxing units are released by agreement with the other taxing units from their authorized levies; and
     (c) An ad valorem tax on all taxable property located within the authority not to exceed fifty cents per thousand dollars of assessed value if the authority has at least one full-time, paid employee, or contracts with another municipal corporation for the services of at least one full-time, paid employee. This levy may be made only if it will not affect dollar rates which other taxing districts may lawfully claim nor cause the combined levies to exceed the constitutional or statutory limitations or both.
     (2) Levies in excess of the amounts provided in subsection (1) of this section or in excess of the aggregate dollar rate limitations or both may be made for any authority purpose when so authorized at a special election under RCW 84.52.052. Any such tax when levied must be certified to the proper county officials for the collection of the tax as for other general taxes. The taxes when collected must be placed in the appropriate authority fund or funds as provided by law, and must be paid out on warrants of the auditor of the county in which all, or the largest portion, of the authority is located, upon authorization of the governing regional board of the authority.
     (3) Authorities may provide for the retirement of general indebtedness by excess property tax levies as set forth in section 1011 of this act.
     (4) For purposes of this chapter, the term "value of the taxable property" has the same meaning as in RCW 39.36.015.

NEW SECTION.  Sec. 1013   At the time of making general tax levies in each year, the county legislative authority or authorities of the county or counties in which a regional community facilities authority is located must make the required levies for authority purposes against the real and personal property in the authority in accordance with the equalized valuations of the property for general tax purposes and as a part of the general taxes. The tax levies are part of the general tax roll and must be collected as a part of the general taxes against the property in the authority.

NEW SECTION.  Sec. 1014   It is the duty of the county treasurer of the county in which the regional community facilities authority created under this chapter is located to collect taxes authorized and levied under this chapter. However, when a regional community facilities authority is located in more than one county, the county treasurer of each county in which the authority is located must collect the regional community facilities authority's taxes that are imposed on property located within the county and transfer these funds to the treasurer of the county in which the majority of the authority lies.

NEW SECTION.  Sec. 1015   (1) The governing board of a regional community facilities authority may by resolution, as authorized in the plan and approved by the voters, for authority purposes authorized by law, fix and impose a benefit charge on personal property and improvements to real property which are located within the authority on the date specified and which have received or will receive the benefits provided by the authority, to be paid by the owners of the properties. A benefit charge does not apply to personal property and improvements to real property owned or used by any recognized religious denomination or religious organization as, or including, a sanctuary or for purposes related to the bona fide religious ministries of the denomination or religious organization, including schools and educational facilities used for kindergarten, primary, or secondary educational purposes or for institutions of higher education and all grounds and buildings related thereto. However, a benefit charge does apply to personal property and improvements to real property owned or used by any recognized religious denomination or religious organization for business operations, profit-making enterprises, or activities not including use of a sanctuary or related to kindergarten, primary, or secondary educational purposes or for institutions of higher education. The aggregate amount of these benefit charges in any one year may not exceed an amount equal to sixty percent of the operating budget for the year in which the benefit charge is to be collected. It is the duty of the county legislative authority or authorities of the county or counties in which the regional community facilities authority is located to make any necessary adjustments to assure compliance with this limitation and to immediately notify the governing regional board of an authority of any changes thereof.
     (2) A benefit charge imposed must be reasonably proportioned to the measurable benefits to property resulting from the facilities and operations afforded by the authority. Any method that reasonably apportions the benefit charges to the actual benefits resulting from the degree of improvements to real property provided to the community from the community facilities may be specified in the resolution and is subject to contest on the grounds of unreasonable or capricious action or action in excess of the measurable benefits to the property resulting from services afforded by the authority. The governing regional board of an authority may determine that certain properties or types or classes of properties are not receiving measurable benefits based on criteria they establish by resolution.
     (3) For administrative purposes, the benefit charge imposed on any individual property may be compiled into a single charge, provided that the authority, upon request of the property owner, provide an itemized list of charges for each measurable benefit included in the charge.
     (4) For the purposes of this section and sections 1016 through 1023 of this act, "personal property" includes every form of tangible personal property including, but not limited to, all goods, chattels, stock in trade, estates, or crops. "Personal property" does not include any personal property used for farming, field crops, farm equipment, or livestock.

NEW SECTION.  Sec. 1016   All personal property not assessed and subjected to ad valorem taxation under Title 84 RCW, all property under contract or for which the regional community facilities authority is receiving payment for as authorized by law, all property subject to chapter 54.28 RCW, and all property that is subject to a contract for services with an authority is exempt from the benefit charge imposed under this chapter.

NEW SECTION.  Sec. 1017   (1) The resolution establishing benefit charges as specified in section 1015 of this act 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.
     (2) The county assessor of each county in which the regional community facilities authority is located must determine and identify the personal properties and improvements to real property that are subject to a benefit charge in each authority 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. 1018   Each regional community facilities authority 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 percentage, 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 authority, less the deduction provided for in the contract.

NEW SECTION.  Sec. 1019   (1) Notwithstanding any other provision in this chapter to the contrary, any benefit charge authorized by this chapter is not effective unless a proposition to impose the benefit charge is approved by a sixty percent majority of the voters of the regional community facilities authority voting at a general election or at a special election called by the authority for that purpose, held within the authority. A ballot measure that contains an authorization to impose benefit charges and that is approved by the voters pursuant to section 1004 of this act meets the proposition approval requirement of this section. An election held under this section must be held not more than twelve months prior to the date on which the first charge is to be assessed. A benefit charge approved at an election expires in six years or fewer as authorized by the voters, unless subsequently reapproved by the voters.
     (2) The ballot must be submitted so as to enable the voters favoring the authorization of a regional community facilities authority benefit charge to vote "Yes" and those opposed to vote "No." The ballot question is as follows:
     "Shall . . . . the regional community facilities authority composed of (insert the participating community facilities jurisdictions) . . . . be authorized to impose benefit charges each year for . . . . (insert number of years not to exceed six) years, not to exceed an amount equal to sixty percent of its operating budget, and be prohibited from imposing an additional property tax under section 1012(1)(c) of this act?
                    YES
                    . . . . . . .
                    NO
                    . . . . . . ."

     (3) Authorities renewing the benefit charge may elect to use the following alternative ballot:
     "Shall . . . . the regional community facilities authority composed of (insert the participating community facilities jurisdictions) . . . . be authorized to continue voter-authorized benefit charges each year for . . . . (insert number of years not to exceed six) years, not to exceed an amount equal to sixty percent of its operating budget, and be prohibited from imposing an additional property tax under section 1012(1)(c) of this act?

                    YES
                    . . . . . . .
                    NO
                    . . . . . . ."

NEW SECTION.  Sec. 1020   (1) Not fewer than ten days nor more than six months before the election at which the proposition to impose the benefit charge is submitted as provided in this chapter, the governing regional board of the regional community facilities authority must hold a public hearing specifically setting forth its proposal to impose benefit charges for the support of its legally authorized activities that will maintain or improve the services afforded in the authority. A report of the public hearing must be filed with the county treasurer of each county in which the property is located and be available for public inspection.
     (2) Prior to November 15th of each year the governing regional board of the authority must hold a public hearing to review and establish the regional community facilities authority benefit charges for the subsequent year.
      (3) All resolutions imposing or changing the benefit charges must be filed with the county treasurer or treasurers of each county in which the property is located, together with the record of each public hearing, before November 30th immediately preceding the year in which the benefit charges are to be collected on behalf of the authority.
     (4) After the benefit charges have been established, the owners of the property subject to the charge must be notified of the amount of the charge.

NEW SECTION.  Sec. 1021   A regional community facilities authority that imposes a benefit charge under this chapter may not impose all or part of the property tax authorized under section 1012(1)(c) of this act.

NEW SECTION.  Sec. 1022   After notice has been given to the property owners of the amount of the charge, the governing regional board of a regional community facilities authority imposing a benefit charge under this chapter must form a review board for at least a two-week period and must, upon complaint in writing of an aggrieved party owning property in the authority, reduce the charge of a person who, in their opinion, has been charged too large a sum, to a sum or amount as they believe to be the true, fair, and just amount.

NEW SECTION.  Sec. 1023   A person who is receiving the exemption contained in RCW 84.36.381 through 84.36.389 is exempt from any legal obligation to pay a portion of the benefit charge imposed under this chapter as follows:
     (1) A person who meets the income limitation contained in RCW 84.36.381(5)(a) and does not meet the income limitation contained in RCW 84.36.381(5)(b) (i) or (ii) is exempt from twenty-five percent of the charge;
     (2) A person who meets the income limitation contained in RCW 84.36.381(5)(b)(i) is exempt from fifty percent of the charge; and
     (3) A person who meets the income limitation contained in RCW 84.36.381(5)(b)(ii) shall be exempt from seventy-five percent of the charge.

NEW SECTION.  Sec. 1024   (1) Subject to subsection (2) of this section, a regional community facilities authority may, by resolution of its regional board, provide for civil service for its employees in the same manner, with the same powers, and with the same force and effect as provided by chapter 41.08 RCW for cities, towns, and municipalities, including restrictions against the discharge of an employee because of residence outside the limits of the regional community facilities authority.
     (2) If an agreement is reached to provide for civil service under section 1008(6) of this act, the regional community facilities authority must establish such a system as is required by the agreement.

NEW SECTION.  Sec. 1101   A new section is added to chapter 84.52 RCW to read as follows:
     (1) If a community facilities district is a participating community facilities jurisdiction in a regional community facilities authority, the regular property tax levies of the community facilities district are limited as follows:
     (a) The regular levy of the district under section 810 of this act may not exceed fifty cents per thousand dollars of assessed value of taxable property in the district less the amount of any levy imposed by the authority under section 1012(1)(a) of this act;
     (b) The levy of the district under section 810 of this act may not exceed fifty cents per thousand dollars of assessed value of taxable property in the district less the amount of any levy imposed by the authority under section 1012(1)(b) of this act; and
     (c) The levy of the district under section 810 of this act may not exceed fifty cents per thousand dollars of assessed value of taxable property in the district less the amount of any levy imposed by the authority under section 1012(1)(c) of this act.
     (2) If a city or town is a participating community facilities jurisdiction in a regional community facilities authority, the regular levies of the city or town may not exceed the applicable rates provided in RCW 27.12.390 and 84.52.043(1) less the aggregate rates of any regular levies made by the authority under section 1012(1) of this act.
     (3) If a port district is a participating community facilities jurisdiction in a regional community facilities authority, the regular levy of the port district under RCW 53.36.020 may not exceed forty-five cents per thousand dollars of assessed value of taxable property in the district less the aggregate rates of any regular levies imposed by the authority under section 1012(1) of this act.
     (4) For purposes of this section, the following definitions apply:
     (a) "Community facilities district," "community facilities jurisdiction," and "regional community facilities authority" have the same meanings as provided in section 102 of this act; and
     (b) "Participating community facilities jurisdiction" means a community facilities district, city, town, Indian tribe, or port district that is represented on the governing board of a regional community facilities authority.

NEW SECTION.  Sec. 1102   A new section is added to chapter 84.52 RCW to read as follows:
     The limitations imposed by RCW 84.52.050 through 84.52.056 and 84.52.043 do not prevent the levy of taxes by a community facilities district, when authorized so to do by the voters of a community facilities district in the manner and for the purposes and number of years allowable under Article VII, section 2(a) of the Constitution of this state. Elections for taxes must be held in the year in which the levy is made, or in the case of propositions authorizing two-year through four-year levies for maintenance and operation support of a community facilities district, or authorizing two-year through six-year levies to support the construction, modernization, or remodeling of community facilities district facilities, in the year in which the first annual levy is made. Once additional tax levies have been authorized for maintenance and operation support of a community facilities district for a two-year through four-year period, no further additional tax levies for maintenance and operation support of the district for that period may be authorized.
     A special election may be called and the time fixed by the community facilities district commissioners, by giving notice by publication in the manner provided by law for giving notices of general elections, at which special election the proposition authorizing the excess levy shall be submitted in a form as to enable the voters favoring the proposition to vote "yes" and those opposed to vote "no."

Sec. 1103   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, and community facilities 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, community facilities district, or regional community facilities authority.
     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 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 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 excess levy shall 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. 1201   A new section is added to chapter 82.02 RCW to read as follows:
     A community facilities district or regional community facilities authority may not be required to pay an impact fee under the provisions of RCW 82.02.050 through 82.02.090.

NEW SECTION.  Sec. 1301   Sections 101 through 1024 of this act constitute a new title in the Revised Code of Washington.

NEW SECTION.  Sec. 1302   Parts I through X of this act constitute new chapters in the new title created under section 1301 of this act and are to be codified as new chapters in the new title.

NEW SECTION.  Sec. 1303   Part headings used in this act are not any part of the law.

NEW SECTION.  Sec. 1304   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.