BILL REQ. #:  S-1764.1 

Read first time 02/24/11.   Referred to Committee on Agriculture & Rural Economic Development.

     AN ACT Relating to authorizing the creation of a public speedway authority; amending RCW 36.38.010, 35.21.280, 36.70A.110, 70.107.080, 39.04.010, 76.09.460, 36.94.020, 36.94.030, 84.34.037, and 36.96.010; reenacting and amending RCW 84.33.140, 82.29A.130, and 35.91.020; adding new sections to chapter 82.14 RCW; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; adding a new chapter to Title 36 RCW; and creating a new section.

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

NEW SECTION.  Sec. 101   INTENT. The legislature finds that the development of a professional motorsports entertainment and family recreation facility in Washington will serve numerous public purposes by providing recreational opportunities for Washington citizens and spurring economic development in the state. Professional motorsports racing is the fastest growing spectator sport in the nation. Professional motorsports entertainment facilities in other states have stimulated economic development by generating spending by out-of-state visitors, investment, employment, and tax revenues. Economic impact studies confirm, based on assumptions generally regarded as conservative, that a Washington professional motorsports entertainment and family recreation facility would be a significant contributor to the state economy here as well. Public support for and participation in the development and operation of a professional motorsports entertainment and family recreation facility in Washington is in the public interest and consistent with prior public involvement in the development and operation of similar facilities.

NEW SECTION.  Sec. 201   DEFINITIONS. The definitions in this section apply throughout this act unless the context clearly requires otherwise.
     (1) "Early retirement" means the redemption or defeasance of bonds or the setting aside of funds for the payment of principal of and interest on bonds.
     (2) "Facility" means a professional motorsports entertainment and family recreation facility.
     (3) "Force majeure event" means natural disasters or other casualty, including fire, flood, earthquake, windstorm, avalanche, landslide, mudslide, and other similar events; acts of war or civil unrest when an emergency has been declared by appropriate governmental officials; acts of civil or military authority; strike, lockout, or other labor dispute (not involving the public speedway authority or its lessee or prospective lessee or any parent, corporate affiliate, or successor directly as a party in such strike, lockout, or other labor dispute); embargoes; epidemics; terrorist acts; riots; insurrections; explosions; and nuclear accidents or other occurrence reasonably beyond the control of the public speedway authority or its lessee or prospective lessee.
     (4) "Host jurisdiction" means (a) a first class city that has adopted a resolution setting forth its intention to annex territory within which the proposed facility is located and to assume responsibility for the environmental review and permitting of such proposed facility, or (b) if no such resolution is adopted or if such proposed annexation is not complete within one year of the effective date of this section, the general purpose local government within which the facility is located and that is responsible for the environmental review and permitting of the facility. A first class city adopting such a resolution may continue as host jurisdiction for additional six-month periods by adopting resolutions setting forth its intention to continue annexation proceedings during such six-month periods.
     (5) "Lessee" means a corporation that enters into a lease agreement with a public speedway authority under section 401 of this act and that is a corporation that, or is a wholly owned subsidiary of a corporation that, directly or through its subsidiaries or affiliates, owns or operates at least ten professional motorsports entertainment facilities in the United States and conducts at least fifty nationally recognized, top tier professional motorsports events, including at least twenty NASCAR NEXTEL Cup Events, during the year in which such lease agreement becomes effective.
     (6) "Major motorsports event weekend" means a multiday series of professional motorsports racing and related events spanning a weekend anchored by one nationally recognized, top tier professional motorsports event.
     (7) "NASCAR" means the National Association for Stockcar Auto Racing, Inc. or its designees or assignees.
     (8) "Nationally recognized, top tier professional motorsports event" means a principal event in a sanctioned national or international touring professional racing series that is broadly recognized as a leader in its racing discipline and is generally capable of producing the level of economic activity including, but not limited to, paid attendance by out-of-state visitors, on which public support for the development of a facility in Washington is based. As of the effective date of this section, nationally recognized, top tier professional motorsports events include, but are not limited to, NASCAR NEXTEL Cup Series, NASCAR Busch Series, Indy Racing League, NASCAR Craftsman Truck Series, USAC Silver Crown Series, Grand American Road Racing Series, Champ Car Series, and Formula One events.
     (9) "Professional motorsports entertainment and family recreation facility" means a multifaceted complex designed to be primarily used as a venue for nationally recognized, top tier professional motorsports events, including a closed-course speedway, grandstands and other seating with capacity for at least eighty-three thousand attendees, control towers, open space, administration and maintenance buildings, together with support services and facilities, such as hospitality facilities, food and beverage sale locations, parking, recreational vehicle camping, and retail sale locations, for motorsports fans and participants, and for those using the complex for community, charitable, recreation, and other activities (such as family recreation and social events, local and regional business functions, arts events, emergency services, and public safety training) on a fee or nonfee basis as appropriate and to the extent that such activities are consistent with use of the facility for professional motorsports events.
     (10) "Prospective lessee" means an entity that would qualify as a lessee that has not yet entered into a lease with a public speedway authority.

NEW SECTION.  Sec. 301   CREATION. (1) A public speedway authority may be created to function in an area with a total population of at least four hundred thousand that is coterminous with the boundaries of one county or up to three contiguous counties.
     (2) A public speedway authority may be created upon the adoption of a resolution of the legislative body of the host jurisdiction and, if the authority includes more than one county, the adoption of a concurring resolution by the legislative body of at least one county that is within the proposed public speedway authority area and that is not the host jurisdiction. The approving and, if applicable, concurring resolutions must identify the one, two, or three-county area in which the public speedway authority is to function, approve the creation of a public speedway authority within such area, and appoint or provide for the appointment of board members as described in section 302(1) of this act.
     (3) A public speedway authority is a municipal corporation and possesses all the usual corporate powers as well as all other powers that may now or hereafter be specifically conferred by statute.

NEW SECTION.  Sec. 302   GOVERNANCE. (1) A public speedway authority must be governed by a board of directors consisting of seven members. The governor may appoint two members. If the host jurisdiction is a county, the legislative body of the host jurisdiction may appoint three members, and if the host jurisdiction is a city, the legislative body of the host jurisdiction may appoint two members. The remaining members must be appointed as set forth in the approving and, if applicable, concurring resolution adopted pursuant to section 301 of this act; provided that the approving resolution and concurring resolution, if any, must permit the appointment of at least one board member by the legislative body of each county included within the boundaries of the authority. The board of directors must elect the chair of the board from among the seven members.
     (2) Members of the board of directors serve four-year terms of office, except that two of the initial board members serve two-year terms of office and two of the initial board members serve three-year terms of office. The governor must designate which of the initial board members serve two-year terms, which serve three-year terms, and which serve four-year terms.
     (3) A vacancy must be filled in the same manner as the original appointment was made except that, if the governor or any legislative body responsible for appointing a member to a vacant position fails to make the appointment for a period of ninety days or more, the remaining members of the board of directors may select an interim member to fill the position by majority vote of such members. The person appointed by the governor, a legislative body, or the board to fill a vacancy serves for the remainder of the unexpired term of the office to which he or she was appointed.
     (4) If a director is appointed by the governor, the governor may remove the director from office for any or no reason. If a director is appointed by a legislative body, the legislative body may remove the director from office for any or no reason. If a director is not appointed by either the governor or a legislative body, the director may be removed from office by majority vote of the board.
     (5) If a city becomes the host jurisdiction after a county has been the host jurisdiction, the legislative body of the city must appoint two members of the board of directors to replace two of the members appointed by the previous host jurisdiction within thirty days of the effective date of such change. If a county becomes the host jurisdiction after a city has been the host jurisdiction, the legislative body of the county must appoint members of the board of directors to replace the members appointed by the previous host jurisdiction within thirty days of the effective date of such change. Each newly appointed member of the board of directors serves for the remainder of the unexpired term of office to which he or she was appointed.

NEW SECTION.  Sec. 303   POWERS AND PURPOSES. (1) A public speedway authority is authorized to undertake or otherwise provide for the acquisition of a site for and the financing, permitting, design, development, construction, reconstruction, remodeling, alteration, maintenance, equipping, reequipping, repair, and operation of a professional motorsports entertainment and family recreation facility.
     (2) A public speedway authority may exercise all other powers necessary and appropriate to carry out its responsibilities, including without limitation the power to sue and be sued, to acquire, own, and transfer real and personal property and property rights by lease, sublease, purchase, or sale, and to enter into contracts. An authority may also sell, lease, convey, or otherwise dispose of any real or personal property or property rights no longer necessary or desirable for the conduct of the affairs of the authority.
     (3) A public speedway authority may enter into agreements with the state or any municipal corporation, acting through its legislative body, for the joint design, financing, acquisition, development, construction, reconstruction, lease, remodeling, alteration, maintenance, equipping, reequipping, repair, or operation of a facility. Such activities are deemed to be a public purpose of the state or any such municipal corporation. The agreements may provide that any party to the contract designs, finances, acquires, develops, constructs, reconstructs, remodels, alters, maintains, equips, reequips, repairs, or operates the facility for the other party or parties to the contract. The state and any municipal corporation is authorized to participate with a public speedway authority in the financing of all or any part of the facility on any terms as may be fixed by agreement between the parties, pursuant to a loan, guaranty, or other financing agreement. The legislative body of any county or city within which a public speedway authority functions may acquire property on behalf of, or transfer property to, a public speedway authority created under this act with or without consideration.
     (4) A public speedway authority may contract with a public or private entity for the acquisition of a site for a facility.
     (5) A public speedway authority may accept and expend or use gifts, grants, and donations and impose or provide for its lessee to impose charges and fees for the use of the facility.
     (6) A public speedway authority may spend funds for the public purposes of promoting and preparing and distributing advertising and promotional information about the facility.
     (7) A public speedway authority may secure professional or other services by means of an agreement with any service provider. The public speedway authority must establish criteria, receive and evaluate proposals, and negotiate with respondents under requirements set forth by authority resolution.

NEW SECTION.  Sec. 304   EXPENSE REIMBURSEMENT PROCEDURES. The board of directors of a public speedway authority must adopt a resolution that may be amended from time to time governing methods and amounts of reimbursement payable to directors, officers, and employees for travel and other business expenses incurred on behalf of the authority. The resolution must, among other things, establish procedures for approving expenses; the form of travel and expense vouchers; and requirements governing the use of credit cards issued in the name of the authority. Directors, officers, and employees may be advanced sufficient sums to cover their anticipated expenses in accordance with rules adopted by the state auditor.

NEW SECTION.  Sec. 305   PER DIEM COMPENSATION. Each member of the board of directors of a public speedway authority may receive compensation of fifty dollars per day for attending meetings or conferences on behalf of the authority, not to exceed three thousand dollars per year. A director may waive all or a portion of his or her compensation under this section during his or her term of office, by a written waiver filed with the public speedway authority. The compensation provided in this section is in addition to reimbursement for expenses paid to directors by the public speedway authority.

NEW SECTION.  Sec. 306   LIABILITY INSURANCE. The board of directors of a public speedway authority may purchase liability insurance with limits the directors deem reasonable for the purpose of protecting and holding personally harmless directors, officers, and employees of the authority against liability arising from their acts or omissions while performing or in good faith purporting to perform their official duties.

NEW SECTION.  Sec. 307   DEFENSE AND INDEMNITY. Whenever an action, claim, or proceeding is instituted against a person who is or was a director, officer, or employee of a public speedway authority arising out of the performance of duties for or employment with the authority, the public speedway authority may grant a request by the person that the attorney of the authority's choosing be authorized to defend the claim, suit, or proceeding, and the costs of defense, attorneys' fees, and obligation for payments arising from the action may be paid from the authority's funds. Costs of defense, judgment, or settlement against the person may not be paid in a case where the court has found that the person was not acting in good faith within the scope of employment with or duties for the public speedway authority. A director or officer of a public speedway authority is not personally liable for acts done or omitted in good faith while performing duties as director or officer on behalf of the authority.

NEW SECTION.  Sec. 308   EMPLOYEES, SALARIES, AND BENEFITS. A public speedway authority has the authority to create and fill positions, fix reasonable wages and salaries, pay costs involved in hiring employees, and establish reasonable benefits for employees, including holiday pay, vacations or vacation pay, retirement benefits, and medical, life, accident, or health disability insurance, as approved by the board. Public speedway authority board members, at their own expense, may be included under any authority policy for medical, life, accident, or health disability insurance. Insurance for employees and board members is not considered compensation. Coverage for the board under any authority policy is not to exceed that provided public speedway authority employees.

NEW SECTION.  Sec. 309   TREASURER. The treasurer of the host jurisdiction is the ex officio treasurer of the authority.

NEW SECTION.  Sec. 401   A new section is added to chapter 82.14 RCW to read as follows:
     SALES TAX--CREDIT AGAINST STATE SALES TAX. (1) Beginning January 1, 2015, the board of directors of a public speedway authority that has entered into a lease agreement with a lessee under section 601 of this act may impose a sales and use tax in accordance with this chapter. The tax is in addition to other taxes authorized by law and must be collected from those persons who are taxable by the state under chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event within the authority's area. The rate of tax may not exceed 0.016 percent of the selling price in the case of a sales tax or value of the article or service used in the case of a use tax.
     (2) The department of revenue must deduct the proceeds of the tax imposed under subsection (1) of this section from the amount of tax otherwise required to be collected or paid over to the department of revenue under chapter 82.08 or 82.12 RCW and must remit the proceeds of the tax imposed under subsection (1) of this section to the public speedway authority. The department of revenue must collect and remit the proceeds of such taxes on behalf of the authority at no cost to the authority.
     (3) The tax imposed pursuant to this section expires when all bonds issued to finance or refinance costs of the acquisition, permitting, design, development, construction, or equipping of the facility have been retired, whether upon maturity or by early retirement, and all amounts due to any financial institutions, insurance companies, or other public or private entities providing credit enhancement to the bonds have been paid, or twenty-five years after the tax under this section is first imposed, whichever occurs first.
     (4) The tax collected under this section must be used exclusively to pay costs of the acquisition, permitting, design, development, construction, or equipping of the facility, including paying debt service on bonds issued to finance or refinance such costs, paying amounts due to any financial institutions, insurance companies, or other public or private entities providing credit enhancement and paying other costs of issuance, and to fund reasonable debt service reserves. Any excess taxes must be applied to provide for the early retirement of any bonds issued by the public speedway authority.
     (5) This section constitutes the entire state contribution for a professional motorsports entertainment and family recreation facility, as defined in section 101 of this act. The state will not make any additional contributions based on revised cost or revenue estimates, cost overruns, unforeseen circumstances, or any other reason.

NEW SECTION.  Sec. 402   PUBLIC SPEEDWAY AUTHORITY ADMISSIONS TAX. (1) A public speedway authority that has entered into a lease agreement with a lessee under section 601 of this act may impose a tax of not more than one cent on twenty cents or fraction thereof on the amount of the admissions charge paid by any person who pays for admission to be a motorsports event spectator at a professional motorsports entertainment and family recreation facility, including charges for season or subscription tickets, but not including ticket handling fees, seat license charges, and charges for admissions to ancillary facilities such as hospitality venues. "Seat license" means a transferable license sold to a third party that, subject to certain conditions, restrictions, and limitations, entitles the third party to purchase a season or subscription ticket to professional motorsports events at a facility. Persons who are admitted to the facility by the lessee free of charge are exempt from payment of the admissions tax.
     (2) An authority may apply the proceeds of the tax as provided in the host jurisdiction agreement to pay costs of the acquisition, permitting, design, development, construction, or equipping of the facility, including paying debt service on or providing for the early retirement of bonds issued to finance or refinance these costs, paying for credit enhancement and other costs of issuance, and funding reasonable debt service or capital reserves, and for payments to the host jurisdiction for use by the host jurisdiction for any public purpose. After all costs of the initial acquisition, permitting, design, development, construction, and equipping of a facility have been paid and all bonds issued to finance or refinance these costs and paid from the admissions tax have been retired, whether upon maturity or by early retirement, the proceeds of the tax first may be used to pay debt service on any other authority bonds issued to finance or refinance these costs and to pay amounts due in connection with credit enhancement for such authority bonds, and, second, must be paid to the host jurisdiction for use by the host jurisdiction for any public purpose.
     (3) No county, city, town, or special purpose district, other than the public speedway authority within which the facility is located, may impose a tax of the same or similar kind on any admission or comparable charge at the facility so long as a tax is imposed by the public speedway authority under this section. After all costs of the initial acquisition, permitting, design, development, construction, and equipping of the facility and any public infrastructure funded from the proceeds of the admissions tax have been paid, all authority bonds and refunding bonds have been retired, whether upon maturity or by early retirement, and all amounts due in connection with credit enhancement of authority bonds have been paid, the rate of the admissions tax imposed by the authority under this section may not exceed the rate of any admissions tax then imposed by the host jurisdiction within its boundaries.

NEW SECTION.  Sec. 403   BONDS. (1) To carry out the purposes of this act, the board of directors of a public speedway authority may authorize the issuance of bonds of the authority in one or more series to which it may pledge: (a) The sales tax authorized in section 401 of this act; (b) the admissions tax authorized in section 402 of this act; (c) revenues derived from the lease of the facility; and (d) any other amounts derived from any other source and available for the payment of debt service on the bonds.
     (2) The proceeds of bonds issued under this section may be applied to finance or refinance the acquisition, permitting, design, development, construction, or equipping of the facility, including payments for costs of credit enhancement and other costs of issuance, establishment of reasonable reserves, and capitalizing interest on bonds during and up to eighteen months following completion of construction of the facility. A public speedway authority may issue additional bonds to pay costs of reconstruction, remodeling, alteration, maintenance, reequipping, and repair of a facility payable from and secured by a pledge of revenues derived from the lease of the facility or any other amounts derived from any other source that are available for the payment of debt service on the bonds.
     (3) A public speedway authority may create funds and accounts for the deposit of pledged taxes, revenues and other amounts, and for the deposit of bond proceeds as it deems necessary or prudent to issue, secure, and administer the bonds, and may appoint one or more trustees to hold and apply these funds and accounts.
     (4) The bonds of a public speedway authority must bear such date or dates, mature at such time or times, be in such denominations, be in such form, be registered or registrable in such manner, be made transferable, exchangeable, and interchangeable, be payable in such medium of payment, at such place or places, be subject to such terms of redemption, bear such fixed or variable rate or rates of interest, be payable at such time or times, and be sold in such manner and at such price or prices, as the public speedway authority determines. The bonds must be executed by the chair of the public speedway authority, by either its duly elected secretary or its treasurer, and by the trustee or paying agent if the public speedway authority determines to use a trustee or paying agent for the bonds. Execution of the bonds may be by manual or facsimile signature. The term of authority bonds may not exceed thirty years.
     (5) The bonds of a public speedway authority are subject to any terms, conditions, covenants, and protective provisions found necessary or desirable by the authority, including without limitation the setting aside of reserves, limitations on additional forms of indebtedness, and other provisions the public speedway authority finds necessary or desirable for the security of bondholders. Damages received by the public speedway authority resulting from its lessee's default on its obligation under section 601(6) of this act must be applied to pay or provide for the early retirement of bonds issued pursuant to this section. If any lease required under section 601 of this act is terminated while the sales and use tax credit authorized under section 401 of this act is in effect, the public speedway authority must apply the proceeds of (a) any subsequent lease, net of reasonable administrative or operating expenses of the authority and costs of capital improvements required of the authority under such substitute lease, including debt service on bonds issued for such capital improvements, or (b) the sale of public speedway authority property for a use other than for a facility to pay or provide for the early retirement of bonds issued pursuant to this section, consistent with any applicable requirements of the federal tax code.
     (6) Any pledge of taxes, revenue, or other amount by the authority under subsection (1) or (11) of this section is valid and binding at the time the pledge is made. The authority constitutes a governmental unit within the meaning of RCW 62A.9A-102(a)(45).
     (7) When issuing bonds, a public speedway authority may provide for the future issuance of additional bonds or debt consistent with subsection (1) of this section on a parity with or subordinate to outstanding bonds and the terms and conditions of their issuance. Consistent with subsection (1) of this section, a public speedway authority may refund or advance refund any bond of the public speedway authority in accordance with chapter 39.53 RCW.
     (8) The board members of a public speedway authority and any person executing the bonds are not liable personally on the indebtedness or subject to any personal liability or accountability by reason of their issuance.
     (9) The public speedway authority may, out of any available funds, purchase its bonds for cancellation or retirement.
     (10) The public speedway authority is authorized to enter into contracts with financial institutions, insurance companies, and other public and private entities to provide credit enhancement for its bonds if the public speedway authority determines that credit enhancement is cost-effective. Each city or county within the area boundaries of the public speedway authority is authorized, acting through its legislative body, to enter into a contract with the public speedway authority, with or without consideration and as the parties may mutually agree upon, to provide credit enhancement to facilitate the sale of public speedway authority bonds.
     (11) The financing of a facility owned by a public speedway authority is deemed to be a public purpose for each city or county within the area boundaries of the public speedway authority, and such city or county, acting through its legislative body, is authorized to issue bonds or otherwise contract indebtedness and make the proceeds of bonds and indebtedness available to the public speedway authority for its purposes upon the terms and conditions that the county or city and the public speedway authority may mutually agree upon. The public speedway authority may pledge the taxes, revenues, or other amounts described in subsection (1) of this section to pay and secure bonds and indebtedness of any such city or county.
     (12) Except as specifically provided in this section, the bonds must be issued and sold in accordance with chapter 39.46 RCW.
     (13) The provisions of this section and any resolution or trust indenture of the public speedway authority providing for the authorization, issuance, and sale of bonds constitute a contract with the owners of such bonds, and the provisions thereof are enforceable by any owner of such bonds by mandamus or any appropriate suit, action, or proceeding at law or in equity in any court of competent jurisdiction.
     (14) The net proceeds of bonds issued to finance the acquisition, financing, permitting, design, development, construction, and equipping of the facility and payable from the sales tax imposed under section 401 of this act may not exceed one hundred forty-five million dollars, adjusted for inflation annually beginning in 2012 using the Engineering News-Record 20-city construction cost index. For the purposes of this limitation "net proceeds" means gross bond proceeds less costs of credit enhancement and other costs of issuance and less any deposits to fund reasonable debt service reserves for the bonds and does not include earnings on any portion of gross bond proceeds.

Sec. 404   RCW 36.38.010 and 1999 c 165 s 20 are each amended to read as follows:
     (1) Any county may by ordinance enacted by its county legislative authority, levy and fix a tax of not more than one cent on twenty cents or fraction thereof to be paid for county purposes by persons who pay an admission charge to any place, including a tax on persons who are admitted free of charge or at reduced rates to any place for which other persons pay a charge or a regular higher charge for the same or similar privileges or accommodations; and require that one who receives any admission charge to any place ((shall)) must collect and remit the tax to the county treasurer of the county((: PROVIDED,)). No county ((shall)) may impose ((such)) the tax on persons paying an admission to any activity of any elementary or secondary school ((or)), any public facility of a public facility district under chapter 35.57 or 36.100 RCW for which a tax is imposed under RCW 35.57.100 or 36.100.210, or any professional motorsports entertainment and family recreation facility for which a tax is imposed under section 402 of this act.
     (2) As used in this chapter, the term "admission charge" includes a charge made for season tickets or subscriptions, a cover charge, or a charge made for use of seats and tables, reserved or otherwise, and other similar accommodations; a charge made for food and refreshments in any place where any free entertainment, recreation, or amusement is provided; a charge made for rental or use of equipment or facilities for purpose of recreation or amusement, and where the rental of the equipment or facilities is necessary to the enjoyment of a privilege for which a general admission is charged, the combined charges ((shall)) must be considered as the admission charge. It ((shall)) also includes any automobile parking charge where the amount of such charge is determined according to the number of passengers in any automobile.
     (3) Subject to subsections (4) and (5) of this section, the tax herein authorized ((shall)) is not ((be)) exclusive and ((shall)) does not prevent any city or town within the taxing county, when authorized by law, from imposing within its corporate limits a tax of the same or similar kind((: PROVIDED, That whenever)). If the same or similar kind of tax is imposed by any such city or town, no such tax ((shall)) may be levied within the corporate limits of such city or town by the county.
     (4) Notwithstanding subsection (3) of this section, the legislative authority of a county with a population of one million or more may exclusively levy taxes on events in baseball stadiums constructed on or after January 1, 1995, that are owned by a public facilities district under chapter 36.100 RCW and that have seating capacities over forty thousand at the rates of:
     (a) Not more than one cent on twenty cents or fraction thereof, to be used for the purpose of paying the principal and interest payments on bonds issued by a county to construct a baseball stadium as defined in RCW 82.14.0485. If the revenue from the tax exceeds the amount needed for that purpose, the excess ((shall)) must be placed in a contingency fund which may only be used to pay unanticipated capital costs on the baseball stadium, excluding any cost overruns on initial construction; and
     (b) Not more than one cent on twenty cents or fraction thereof, to be used for the purpose of paying the principal and interest payments on bonds issued by a county to construct a baseball stadium as defined in RCW 82.14.0485. The tax imposed under this subsection (4)(b) ((shall)) expires when the bonds issued for the construction of the baseball stadium are retired, but not later than twenty years after the tax is first collected.
     (5) Notwithstanding subsection (3) of this section, the legislative authority of a county that has created a public stadium authority to develop a stadium and exhibition center under RCW 36.102.050 may levy and fix a tax on charges for admission to events in a stadium and exhibition center, as defined in RCW 36.102.010, constructed in the county on or after January 1, 1998, that is owned by a public stadium authority under chapter 36.102 RCW. The tax ((shall be)) is exclusive and ((shall)) precludes the city or town within which the stadium and exhibition center is located from imposing a tax of the same or similar kind on charges for admission to events in the stadium and exhibition center, and ((shall)) precludes the imposition of a general county admissions tax on charges for admission to events in the stadium and exhibition center. For the purposes of this subsection, "charges for admission to events" means only the actual admission charge, exclusive of taxes and service charges and the value of any other benefit conferred by the admission. The tax authorized under this subsection ((shall)) must be at the rate of not more than one cent on ten cents or fraction thereof. Revenues collected under this subsection ((shall)) must be deposited in the stadium and exhibition center account under RCW 43.99N.060 until the bonds issued under RCW 43.99N.020 for the construction of the stadium and exhibition center are retired. After the bonds issued for the construction of the stadium and exhibition center are retired, the tax authorized under this section ((shall)) must be used exclusively to fund repair, reequipping, and capital improvement of the stadium and exhibition center. The tax under this subsection may be levied upon the first use of any part of the stadium and exhibition center but ((shall)) may not be collected at any facility already in operation as of July 17, 1997.

Sec. 405   RCW 35.21.280 and 2002 c 363 s 5 are each amended to read as follows:
     (1) Every city and town may levy and fix a tax of not more than one cent on twenty cents or fraction thereof to be paid by the person who pays an admission charge to any place with the following limitations: ((PROVIDED,))
     (a) No city or town ((shall)) may impose such tax on persons paying an admission to any activity of any elementary or secondary school or any public facility of a public facility district under chapter 35.57 or 36.100 RCW for which a tax is imposed under RCW 35.57.100 or 36.100.210, except the city or town may impose a tax on persons paying an admission to any activity of such public facility if the city or town uses the admission tax revenue it collects on the admission charges to that public facility for the construction, operation, maintenance, repair, replacement, or enhancement of that public facility or to develop, support, operate, or enhance programs in that public facility; and
     (b) No city or town may impose such a tax upon any admission to a professional motorsports entertainment and family recreation facility.
     (2) Tax authorization under this section includes a tax on persons who are admitted free of charge or at reduced rates to any place for which other persons pay a charge or a regular higher charge for the same privileges or accommodations. A city that is located in a county with a population of one million or more may not levy a tax on events in stadia constructed on or after January 1, 1995, that are owned by a public facilities district under chapter 36.100 RCW and that have seating capacities over forty thousand. The city or town may require anyone who receives payment for an admission charge to collect and remit the tax to the city or town.
     (3) The term "admission charge" includes:
     (a) A charge made for season tickets or subscriptions;
     (b) A cover charge, or a charge made for use of seats and tables reserved or otherwise, and other similar accommodations;
     (c) A charge made for food and refreshment in any place where free entertainment, recreation or amusement is provided;
     (d) A charge made for rental or use of equipment or facilities for purposes of recreation or amusement; if the rental of the equipment or facilities is necessary to the enjoyment of a privilege for which a general admission is charged, the combined charges ((shall)) must be considered as the admission charge;
     (e) Automobile parking charges if the amount of the charge is determined according to the number of passengers in the automobile.

NEW SECTION.  Sec. 501   HOST JURISDICTION AGREEMENT. Prior to the construction of any professional motorsports entertainment and family recreation facility by or on behalf of a public speedway authority, the public speedway authority, its lessee or prospective lessee, and the host jurisdiction, acting through its legislative body, must have first entered into a legally binding and enforceable host jurisdiction agreement addressing matters appropriately of mutual interest concerning the development and operation of the facility. The agreement must include without limitation the following terms:
     (1) The authority or the lessee, or prospective lessee, assumes financial responsibility or otherwise provides for the construction of such public infrastructure improvements off-site and on-site that are necessary for the efficient operation of the facility as identified through environmental review of the proposed facility, required as conditions to its permitting, and only to the extent such improvements are incremental to the public infrastructure required to serve other nearby development as described in a host jurisdiction comprehensive plan, if applicable. This obligation may be satisfied through payments made to or on behalf of the host jurisdiction or from tax revenues generated by the facility directed to such host jurisdiction;
     (2) Confirmation that the lease between the authority and the lessee, or prospective lessee, must require and provide for reasonable public access to and use of the facility for community, charitable, recreation, and other activities, such as family recreation and social events, local and regional business functions, arts events, emergency services, and public safety training, on a fee or nonfee basis as appropriate and to the extent that such activities are consistent with use of the facility for professional motorsports events; and
     (3) Confirmation that the authority or the lessee, or prospective lessee, must assume financial responsibility for the additional incremental cost of public services required to operate the facility during major motorsports event weekends as identified through environmental review of the proposed facility and required as conditions to its permitting.

NEW SECTION.  Sec. 502   FACILITY DEVELOPMENT. (1) A public speedway authority may, in consultation with its lessee or prospective lessee, determine the overall scope and components of any professional motorsports entertainment and family recreation facility owned or to be owned by the authority, approve the final design and specifications of the facility acceptable to the lessee for operation as a professional motorsports venue for hosting nationally recognized, top tier professional motorsports events, and approve the final budget for financing, permitting, design, development, construction, and equipping of the facility.
     (2) A public speedway authority must enter into a development agreement with a lessee or prospective lessee under which the lessee or prospective lessee undertakes and controls the development of the facility to be owned by the authority, consistent with subsection (1) of this section. Under the development agreement, the lessee must, subject to the approval of the public speedway authority, determine project design, specifications, and the budget. In addition, the lessee must determine procurement procedures, select and contract with an architect or architects, other professional service providers, or a contractor or contractors for the design, construction, operation, or maintenance of the facility and determine whether to enter into a project labor agreement related to construction of the facility. However, any contracts for the construction, operation, and maintenance of a facility is subject to the prevailing wage requirements of chapter 39.12 RCW and the goals established by the state for women's and minority business participation consistent with the provisions of RCW 39.04.160 and 49.60.400. Contractors are required, to the extent feasible, to both hire local residents in connection with the development of the facility and utilize apprentices enrolled in a state-approved apprenticeship training program, consistent with the goals established for state public works projects in RCW 39.04.320.
     (3) Under the development agreement, the lessee or prospective lessee must agree to provide at least one hundred eighty million dollars toward the cost of the acquisition, financing, permitting, design, development, construction, or equipping of the facility. The lessee must assume responsibility for any construction cost overruns in completing the project consistent with the final design and budget approved by the public speedway authority.
     (4) The development agreement must provide for parity in the expenditure of public speedway authority bond proceeds and lessee or prospective lessee funding after the public speedway authority is authorized to issue its bonds and expend funds upon and following satisfaction of the requirements of sections 501 and 504 of this act. The lessee or prospective lessee is responsible for advancing funds needed to satisfy the requirements of sections 501 and 504 of this act until public speedway authority bonds can be issued and bond proceeds become available.
     (5) The development agreement must require the lessee or prospective lessee to obtain performance and payment bonds from any contractors it contracts with to perform construction of the facility. The performance and payment bonds must be consistent, in form and amount, with the requirements of chapter 39.08 RCW.
     (6) The development agreement must require the lessee or prospective lessee to commit to support one or more land conservation projects located within the area of the public speedway authority, subject to development and construction of the facility as provided in this act. Such project or projects must be undertaken in addition to any offsite mitigation projects or activities that may be required of the lessee or prospective lessee as a condition of permitting the facility. The total value of the lessee's or prospective lessee's support of such a conservation project or projects may be not less than one million dollars total, which may be provided over three years following approval by the host jurisdiction of all land use permitting decisions necessary for development of the facility as provided in this act. The lessee or prospective lessee may work with a nonprofit land trust or other conservation organization to identify and implement projects to which support can be directed in satisfaction of the requirements of this section.

NEW SECTION.  Sec. 503   SALES TAX DEFERRAL. (1) The public speedway authority may apply for deferral of taxes on the design and construction of buildings, site preparation, and the acquisition of related tangible personal property and retail services for a facility including, but not limited to, parking lots, parking garages, landscaping, environmental or other mitigation work required as part of any federal, state, county, city, or other governmental regulatory approval process, utility relocation, sidewalks, storm water systems, transit improvements, roads, or other investments made: Either at the facility or off-site and regardless if owned by the authority or dedicated to a public body. Application must be made to the department of revenue in a form and manner prescribed by the department of revenue. The application must contain information regarding the location of the facility, estimated or actual costs, time schedules for completion and operation, and other information required by the department of revenue. The department of revenue must approve the application within sixty days if it meets the requirements of this section.
     (2) The department of revenue must issue a sales and use tax deferral certificate for state and local sales and use taxes due under chapters 82.08, 82.12, and 82.14 RCW for the activities described in subsection (1) of this section.
     (3) The public speedway authority must begin paying the deferred taxes in the fifth year after the date certified by the department of revenue as the date on which the facility is operationally complete. The first payment is due on December 31st of the fifth calendar year after such certified date, with subsequent annual payments due on December 31st of the following nine years. Each payment must equal ten percent of the deferred tax.
     (4) The department of revenue may authorize an accelerated repayment schedule upon request of the public speedway authority.
     (5) Interest and penalties may not be charged on any taxes deferred under this section for the period of deferral, although all other penalties and interest applicable to delinquent excise taxes may be assessed and imposed for delinquent payments under this section. The debt for deferred taxes is not extinguished by insolvency or other failure of the public speedway authority.
     (6) Applications and any other information received by the department of revenue under this section are not confidential and are subject to disclosure. Chapter 82.32 RCW applies to the administration of this section.

NEW SECTION.  Sec. 504   PERMITTING. (1) The lessee and the legislative bodies of the public speedway authority and the host jurisdiction must negotiate terms acceptable to each party to address:
     (a) A schedule for efficient, timely, and reliable permit processing for the facility, to reflect statutory and regulatory permitting time frames and local government best practices;
     (b) A schedule for efficient, timely, and reliable environmental review processing for the facility, to reflect statutory and regulatory permitting time frames and local government best practices;
     (c) A schedule for efficient, timely, and reliable processing of requests for street, right-of-way, or easement vacations necessary for the construction of the facility, to reflect statutory and regulatory permitting time frames and local government best practices; and
     (d) Other items deemed appropriate by the lessee and the legislative bodies of the authority and the host jurisdiction for an efficient permitting, environmental review, and regulatory approval process and timely construction of the facility, including use of parallel review processes, early coordination and timely comment on preapplication matters, consolidated hearings, and identification of a lead representative for permit preparation and environmental review for each party.
     (2) The agreements required by subsection (1) of this section must address host jurisdiction permitting and review processes and not federal permitting or review processes. State agencies with expertise and jurisdiction may also enter into such agreements to the extent necessary to assure timely, efficient, and reliable permitting.
     (3) The proceeds of any public speedway authority bonds issued to finance costs of acquisition, permitting, design, development, construction, or equipping of the facility may not be expended until any host jurisdiction that requires master plan approval for the proposed facility approves a master plan for the facility or, alternatively, when the proposed facility site is annexed into any city that is a host jurisdiction in which a professional motorsports entertainment and family recreation facility is a permitted use.
     (4) All land use permitting decisions for a professional motorsports entertainment and family recreation facility must be made by the host jurisdiction.
     (5) Nothing in this section may be construed to reduce the responsibility or ability of the host jurisdiction or state agencies with jurisdiction to carry out such permitting, review, and regulatory approval processes in compliance with applicable law and regulations; the purpose of any agreements entered into pursuant to this section specifying schedules for permitting, environmental review, and regulatory approval is to facilitate construction of a large capital facility project in a timely manner and avoid the inflationary costs associated with undue delay.

Sec. 505   RCW 36.70A.110 and 2010 c 211 s 1 are each amended to read as follows:
     URBAN SERVICES TO THE FACILITY. (1) Each county that is required or chooses to plan under RCW 36.70A.040 ((shall)) must designate an urban growth area or areas within which urban growth ((shall)) must be encouraged and outside of which growth can occur only if it is not urban in nature. Each city that is located in such a county ((shall)) must be included within an urban growth area. An urban growth area may include more than a single city. An urban growth area may include territory that is located outside of a city only if such territory already is characterized by urban growth whether or not the urban growth area includes a city, or is adjacent to territory already characterized by urban growth, or is a designated new fully contained community as defined by RCW 36.70A.350.
     (2)(a) Based upon the growth management population projection made for the county by the office of financial management, the county and each city within the county ((shall)) must include areas and densities sufficient to permit the urban growth that is projected to occur in the county or city for the succeeding twenty-year period, except for those urban growth areas contained totally within a national historical reserve. As part of this planning process, each city within the county must include areas sufficient to accommodate the broad range of needs and uses that will accompany the projected urban growth including, as appropriate, medical, governmental, institutional, commercial, service, retail, and other nonresidential uses.
     (b) Each urban growth area ((shall)) must permit urban densities and ((shall)) include greenbelt and open space areas. In the case of urban growth areas contained totally within a national historical reserve, the city may restrict densities, intensities, and forms of urban growth as determined to be necessary and appropriate to protect the physical, cultural, or historic integrity of the reserve. An urban growth area determination may include a reasonable land market supply factor and ((shall)) must permit a range of urban densities and uses. In determining this market factor, cities and counties may consider local circumstances. Cities and counties have discretion in their comprehensive plans to make many choices about accommodating growth.
     (c) Within one year of July 1, 1990, each county that as of June 1, 1991, was required or chose to plan under RCW 36.70A.040, ((shall)) must begin consulting with each city located within its boundaries and each city ((shall)) must propose the location of an urban growth area. Within sixty days of the date the county legislative authority of a county adopts its resolution of intention or of certification by the office of financial management, all other counties that are required or choose to plan under RCW 36.70A.040 ((shall)) must begin this consultation with each city located within its boundaries. The county ((shall)) must attempt to reach agreement with each city on the location of an urban growth area within which the city is located. If such an agreement is not reached with each city located within the urban growth area, the county ((shall)) must justify in writing why it so designated the area an urban growth area. A city may object formally with the department over the designation of the urban growth area within which it is located. Where appropriate, the department ((shall)) must attempt to resolve the conflicts, including the use of mediation services.
     (3) Urban growth should be located first in areas already characterized by urban growth that have adequate existing public facility and service capacities to serve such development, second in areas already characterized by urban growth that will be served adequately by a combination of both existing public facilities and services and any additional needed public facilities and services that are provided by either public or private sources, and third in the remaining portions of the urban growth areas. Urban growth may also be located in designated new fully contained communities as defined by RCW 36.70A.350.
     (4) In general, cities are the units of local government most appropriate to provide urban governmental services. In general, it is not appropriate that urban governmental services be extended to or expanded in rural areas except in those limited circumstances shown to be necessary to protect basic public health and safety and the environment and when such services are financially supportable at rural densities and do not permit urban development. The extension of urban governmental services including, without limitation, storm and sanitary sewer services, to a facility owned or operated by a public speedway authority and with capacity for not fewer than eighty-three thousand people is necessary to protect basic public health and safety and the environment, provided it is located at least partially within an urban growth area.
     (5) On or before October 1, 1993, each county that was initially required to plan under RCW 36.70A.040(1) ((shall)) must adopt development regulations designating interim urban growth areas under this chapter. Within three years and three months of the date the county legislative authority of a county adopts its resolution of intention or of certification by the office of financial management, all other counties that are required or choose to plan under RCW 36.70A.040 ((shall)) must adopt development regulations designating interim urban growth areas under this chapter. Adoption of the interim urban growth areas may only occur after public notice; public hearing; and compliance with the state environmental policy act, chapter 43.21C RCW, and under this section. Such action may be appealed to the growth management hearings board under RCW 36.70A.280. Final urban growth areas ((shall)) must be adopted at the time of comprehensive plan adoption under this chapter.
     (6) Each county ((shall)) must include designations of urban growth areas in its comprehensive plan.
     (7) An urban growth area designated in accordance with this section may include within its boundaries urban service areas or potential annexation areas designated for specific cities or towns within the county.
     (8)(a) Except as provided in (b) of this subsection, the expansion of an urban growth area is prohibited into the one hundred year floodplain of any river or river segment that: (i) Is located west of the crest of the Cascade mountains; and (ii) has a mean annual flow of one thousand or more cubic feet per second as determined by the department of ecology.
     (b) Subsection (8)(a) of this section does not apply to:
     (i) Urban growth areas that are fully contained within a floodplain and lack adjacent buildable areas outside the floodplain;
     (ii) Urban growth areas where expansions are precluded outside floodplains because:
     (A) Urban governmental services cannot be physically provided to serve areas outside the floodplain; or
     (B) Expansions outside the floodplain would require a river or estuary crossing to access the expansion; or
     (iii) Urban growth area expansions where:
     (A) Public facilities already exist within the floodplain and the expansion of an existing public facility is only possible on the land to be included in the urban growth area and located within the floodplain; or
     (B) Urban development already exists within a floodplain as of July 26, 2009, and is adjacent to, but outside of, the urban growth area, and the expansion of the urban growth area is necessary to include such urban development within the urban growth area; or
     (C) The land is owned by a jurisdiction planning under this chapter or the rights to the development of the land have been permanently extinguished, and the following criteria are met:
     (I) The permissible use of the land is limited to one of the following: Outdoor recreation; environmentally beneficial projects, including but not limited to habitat enhancement or environmental restoration; storm water facilities; flood control facilities; or underground conveyances; and
     (II) The development and use of such facilities or projects will not decrease flood storage, increase storm water runoff, discharge pollutants to fresh or salt waters during normal operations or floods, or increase hazards to people and property.
     (c) For the purposes of this subsection (8), "one hundred year floodplain" means the same as "special flood hazard area" as set forth in WAC 173-158-040 as it exists on July 26, 2009.

Sec. 506   RCW 70.107.080 and 1974 ex.s. c 183 s 8 are each amended to read as follows:
     NOISE. (1) The department ((shall)) must, in the exercise of rule-making power under this chapter, provide exemptions or specially limited regulations relating to recreational shooting and emergency or law enforcement equipment where appropriate in the interests of public safety.
     (2) Sounds originating from any professional motorsports entertainment and family recreation facility is exempt from rules adopted pursuant to this chapter to the same extent as at existing motor vehicle racing event facilities, and the department must prepare, publish, and approve rules to this effect within one hundred eighty days of the effective date of this section. Nothing in this subsection may be deemed to exempt sounds originating from any professional motorsports entertainment and family recreation facility from review under chapter 43.21C RCW or from any requirements imposed for the purpose of mitigating impacts under RCW 43.21C.060.
     (3) The department, in the development of rules under this chapter, ((shall)) must consult and take into consideration the land use policies and programs of local government.

Sec. 507   RCW 39.04.010 and 2008 c 130 s 16 are each amended to read as follows:
     PUBLIC WORKS PROVISIONS. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Award" means the formal decision by the state or municipality notifying a responsible bidder with the lowest responsive bid of the state's or municipality's acceptance of the bid and intent to enter into a contract with the bidder.
     (2) "Contract" means a contract in writing for the execution of public work for a fixed or determinable amount duly awarded after advertisement and competitive bid, or a contract awarded under the small works roster process in RCW 39.04.155.
     (3) "Municipality" means every city, county, town, port district, district, or other public agency authorized by law to require the execution of public work, except drainage districts, diking districts, diking and drainage improvement districts, drainage improvement districts, diking improvement districts, consolidated diking and drainage improvement districts, consolidated drainage improvement districts, consolidated diking improvement districts, irrigation districts, or other districts authorized by law for the reclamation or development of waste or undeveloped lands.
     (4) "Public work" means all work, construction, alteration, repair, or improvement other than ordinary maintenance, executed at the cost of the state or of any municipality, or which is by law a lien or charge on any property therein. All public works, including maintenance when performed by contract ((shall)) must comply with chapter 39.12 RCW. "Public work" does not include work, construction, alteration, repair, or improvement performed under contracts entered into under RCW 36.102.060(4) or under development agreements entered into under RCW 36.102.060(7) or leases entered into under RCW 36.102.060(8). The term does not include work, construction, alteration, repair, or improvement of a professional motorsports entertainment and family recreation facility performed under a development agreement authorized pursuant to section 502(2) of this act or lease authorized pursuant to section 601 of this act or services procured by the lessee or prospective lessee in connection with any such work, construction, alteration, repair, or improvement.
     (5) "Responsible bidder" means a contractor who meets the criteria in RCW 39.04.350.
     (6) "State" means the state of Washington and all departments, supervisors, commissioners, and agencies of the state.

Sec. 508   RCW 84.33.140 and 2009 c 354 s 2, 2009 c 255 s 3, and 2009 c 246 s 2 are each reenacted and amended to read as follows:
     EXEMPTION FROM FOREST LAND COMPENSATION TAX. (1) When land has been designated as forest land under RCW 84.33.130, a notation of the designation ((shall)) must be made each year upon the assessment and tax rolls. A copy of the notice of approval together with the legal description or assessor's parcel numbers for the land ((shall)) must, at the expense of the applicant, be filed by the assessor in the same manner as deeds are recorded.
     (2) In preparing the assessment roll as of January 1, 2002, for taxes payable in 2003 and each January 1st thereafter, the assessor ((shall)) must list each parcel of designated forest land at a value with respect to the grade and class provided in this subsection and adjusted as provided in subsection (3) of this section. The assessor ((shall)) must compute the assessed value of the land using the same assessment ratio applied generally in computing the assessed value of other property in the county. Values for the several grades of bare forest land ((shall be)) are as follows:

Sec. 509   RCW 76.09.460 and 2007 c 106 s 2 are each amended to read as follows:
     EXEMPTION FROM FOREST PRACTICES ACT CONVERSION MORATORIA. (1) If a county, city, town, or regional governmental entity receives a notice of conversion to nonforestry use by the department under RCW 76.09.060, then the county, city, town, or regional governmental entity must deny all applications for permits or approvals, including building permits and subdivision approvals, relating to nonforestry uses of the land that is the subject of the notification. The prohibition created by this section must be enforced by the county, city, town, or regional governmental entity:
     (((1))) (a) For a period of six years from the approval date of the applicable forest practices application or notification or the date that the department was made aware of the harvest activities; or
     (((2))) (b) Until the following activities are completed for the land that is the subject of the notice of conversion to a nonforestry use:
     (((a))) (i) Full compliance with chapter 43.21C RCW, if applicable;
     (((b))) (ii) The department has notified the county, city, town, or regional governmental entity that the landowner has resolved any outstanding final orders or decisions issued by the department; and
     (((c))) (iii) A determination is made by the county, city, town, or regional governmental entity as to whether or not the condition of the land in question is in full compliance with local ordinances and regulations. If full compliance is not found, a mitigation plan to address violations of local ordinances or regulations must be required for the parcel in question by the county, city, town, or regional governmental entity. Required mitigation plans must be prepared by the landowner and approved by the county, city, town, or regional governmental entity. Once approved, the mitigation plan must be implemented by the landowner. Mitigation measures that may be required include, but are not limited to, revegetation requirements to plant and maintain trees of sufficient maturity and appropriate species composition to restore critical area and buffer function or to be in compliance with applicable local government regulations.
     (2) Any six-year moratorium preventing conversion to nonforestry uses under this section must be waived as of the date the land subject to the moratorium is purchased or acquired for use as a professional motorsports entertainment and family recreation facility.

NEW SECTION.  Sec. 601   LEASE OF FACILITY. In consideration for the public funding provided for the acquisition of a site for and the financing, permitting, design, development, and construction of a facility, a lessee must enter into a binding and legally enforceable sole master tenant lease agreement with the public speedway authority for the management and operation of the facility, which includes without limitation the following terms:
     (1) The term of the lease may not be less than fifty years.
     (2) The lessee must pay reasonable rent and assume risk, legal liability, and responsibility for costs associated with maintaining and operating the facility. As used in this subsection, "reasonable rent" is solely intended to fund the reasonable annual operating expenses of the public speedway authority, including a reasonable operating expense reserve. Rents paid in excess of actual operating expenses of the public speedway authority must be committed to funding capital improvements to the facility undertaken pursuant to plans approved by the public speedway authority and the lessee.
     (3) The lessee must, at its own expense, maintain, provide major repairs and renovations of, and operate the facility in a first-class manner consistent with any standards or requirements of NASCAR or other nationally recognized motorsports sanctioning bodies to ensure the continuous and uninterrupted suitability of the facility as a viable venue for hosting nationally recognized, top tier professional motorsports events.
     (4) The lessee must make and participate financially in capital improvements necessary to ensure the continuous and uninterrupted suitability of the facility as a viable venue for hosting nationally recognized, top tier professional motorsports events.
     (5) The lessee has the authority to sublease and enter into use, license, naming rights, and concession agreements with various lessees, users, licensees, or concessionaires of the facility. The lessee has the right to retain all revenues derived from the operation of the facility, including revenues from any sublease, use, license, naming rights, and concession agreements, revenues from concessions, ticket sales, suite rentals, suite and seat licenses, advertising, parking, signage, and intellectual property rights.
     (6) The lessee must host at least two major motorsports event weekends annually if the sales and use tax credit under section 401 of this act is in effect and the lessee is not prevented from doing so by a force majeure event. The lessee and its parent company must use their good faith best efforts to secure as one of the two major motorsports event weekends hosted annually at the facility a NASCAR Nextel Cup event or an event in NASCAR's then-comparable successor premier national series beginning in the initial year of operation of the facility.
     (7) If the sales and use tax credit under section 401 of this act is in effect, the lessee or any parent, corporate affiliate or successor, successor in interest, or other entity in any way related to the lessee may not petition, support, or condone a proposal or decision of the sanctioning body of any nationally recognized, top tier professional motorsports event anchoring either of the two major motorsports event weekends at the facility required under subsection (6) of this section to move, realign, or otherwise deprive the facility of such event. The lessee may seek to replace an event only if it can demonstrate to the satisfaction of the office of financial management that a substitute nationally recognized, top tier professional motorsports event is capable of producing a higher level of economic activity, including without limitation paid attendance by out-of-state visitors, than the event on which public support for the development of the facility in the state was based. The loss of any nationally recognized, top tier professional motorsports event anchoring a major motorsports event weekend at the facility required under subsection (6) of this section while the sales and use tax credit under section 401 of this act is in effect must be replaced by the lessee with a comparable or superior nationally recognized, top tier professional motorsports event.
     (8) If the sales and use tax credit under section 401 of this act is in effect, the lessee or any parent, corporate affiliate or successor, successor in interest, or other entity in any way related to the lessee may not develop, own, or operate or participate in the development, ownership, or operation of any other professional motorsports entertainment and family recreation facility to host nationally recognized, top tier professional motorsports events within five hundred miles of the facility.
     (9) The lessee is required:
     (a) Subject to its rights under the lease agreement to use the site for professional motorsports entertainment and family recreation, to make the facility available for community, charitable, recreation, and other activities, such as family recreation and social events, local and regional business functions, arts events, emergency services, and public safety training, on a fee or nonfee basis as appropriate and to the extent that such activities are consistent with use of the facility for professional motorsports events;
     (b) To use reasonable efforts to allow for meaningful, noncommercial opportunities for the promotion of Washington state tourism, trade, and generic products when the facility is not otherwise in use; and
     (c) To use reasonable efforts to provide opportunities for local not-for-profit organizations to participate in facility use and operation of concessions during professional motorsports events.
     (10) The lessee must assume responsibility for payment of sales and use taxes deferred under section 503 of this act when the deferred taxes become due and payable by the public speedway authority.
     (11) Violations by the lessee of its material obligations under the lease are considered defaults under the lease subject to such remedies and reasonable opportunities to cure as the lease may provide. Damages received by the public speedway authority resulting from the lessee's default on its obligation to annually host two major motorsports event weekends must be applied by the public speedway authority to pay or provide for the early retirement of bonds issued pursuant to section 403 of this act.

Sec. 602   RCW 82.29A.130 and 2008 c 194 s 1 and 2008 c 84 s 2 are each reenacted and amended to read as follows:
     LEASEHOLD EXCISE TAX EXEMPTION. The following leasehold interests ((shall be)) are exempt from taxes imposed pursuant to RCW 82.29A.030 and 82.29A.040:
     (1) All leasehold interests constituting a part of the operating properties of any public utility which is assessed and taxed as a public utility pursuant to chapter 84.12 RCW.
     (2) All leasehold interests in facilities owned or used by a school, college or university which leasehold provides housing for students and which is otherwise exempt from taxation under provisions of RCW 84.36.010 and 84.36.050.
     (3) All leasehold interests of subsidized housing where the fee ownership of such property is vested in the government of the United States, or the state of Washington or any political subdivision thereof but only if income qualification exists for such housing.
     (4) All leasehold interests used for fair purposes of a nonprofit fair association that sponsors or conducts a fair or fairs which receive support from revenues collected pursuant to RCW 67.16.100 and allocated by the director of the department of agriculture where the fee ownership of such property is vested in the government of the United States, the state of Washington or any of its political subdivisions((: PROVIDED, That)). However, this exemption ((shall)) does not apply to the leasehold interest of any sublessee of such nonprofit fair association if such leasehold interest would be taxable if it were the primary lease.
     (5) All leasehold interests in any property of any public entity used as a residence by an employee of that public entity who is required as a condition of employment to live in the publicly owned property.
     (6) All leasehold interests held by enrolled Indians of lands owned or held by any Indian or Indian tribe where the fee ownership of such property is vested in or held in trust by the United States and which are not subleased to other than to a lessee which would qualify pursuant to this chapter, RCW 84.36.451 and 84.40.175.
     (7) All leasehold interests in any real property of any Indian or Indian tribe, band, or community that is held in trust by the United States or is subject to a restriction against alienation imposed by the United States((: PROVIDED, That)). However, this exemption ((shall apply)) applies only where it is determined that contract rent paid is greater than or equal to ninety percent of fair market rental, to be determined by the department of revenue using the same criteria used to establish taxable rent in RCW 82.29A.020(2)(b).
     (8) All leasehold interests for which annual taxable rent is less than two hundred fifty dollars per year. For purposes of this subsection leasehold interests held by the same lessee in contiguous properties owned by the same lessor ((shall be)) is deemed a single leasehold interest.
     (9) All leasehold interests which give use or possession of the leased property for a continuous period of less than thirty days((: PROVIDED, That)). For purposes of this subsection, successive leases or lease renewals giving substantially continuous use of possession of the same property to the same lessee ((shall be)) is deemed a single leasehold interest((: PROVIDED FURTHER, That)). No leasehold interest ((shall)) may be deemed to give use or possession for a period of less than thirty days solely by virtue of the reservation by the public lessor of the right to use the property or to allow third parties to use the property on an occasional, temporary basis.
     (10) All leasehold interests under month-to-month leases in residential units rented for residential purposes of the lessee pending destruction or removal for the purpose of constructing a public highway or building.
     (11) All leasehold interests in any publicly owned real or personal property to the extent such leasehold interests arises solely by virtue of a contract for public improvements or work executed under the public works statutes of this state or of the United States between the public owner of the property and a contractor.
     (12) All leasehold interests that give use or possession of state adult correctional facilities for the purposes of operating correctional industries under RCW 72.09.100.
     (13) All leasehold interests used to provide organized and supervised recreational activities for persons with disabilities of all ages in a camp facility and for public recreational purposes by a nonprofit organization, association, or corporation that would be exempt from property tax under RCW 84.36.030(1) if it owned the property. If the publicly owned property is used for any taxable purpose, the leasehold excise taxes set forth in RCW 82.29A.030 and 82.29A.040 ((shall)) must be imposed and ((shall)) must be apportioned accordingly.
     (14) All leasehold interests in the public or entertainment areas of a baseball stadium with natural turf and a retractable roof or canopy that is in a county with a population of over one million, that has a seating capacity of over forty thousand, and that is constructed on or after January 1, 1995. "Public or entertainment areas" include ticket sales areas, ramps and stairs, lobbies and concourses, parking areas, concession areas, restaurants, hospitality and stadium club areas, kitchens or other work areas primarily servicing other public or entertainment areas, public rest room areas, press and media areas, control booths, broadcast and production areas, retail sales areas, museum and exhibit areas, scoreboards or other public displays, storage areas, loading, staging, and servicing areas, seating areas and suites, the playing field, and any other areas to which the public has access or which are used for the production of the entertainment event or other public usage, and any other personal property used for these purposes. "Public or entertainment areas" does not include locker rooms or private offices exclusively used by the lessee.
     (15) All leasehold interests in the public or entertainment areas of a stadium and exhibition center, as defined in RCW 36.102.010, that is constructed on or after January 1, 1998. For the purposes of this subsection, "public or entertainment areas" has the same meaning as in subsection (14) of this section, and includes exhibition areas.
     (16) All leasehold interests in public facilities districts, as provided in chapter 36.100 or 35.57 RCW.
     (17) All leasehold interests in property that is: (a) Owned by the United States government or a municipal corporation; (b) listed on any federal or state register of historical sites; and (c) wholly contained within a designated national historic reserve under 16 U.S.C. Sec. 461.
     (18)(a) All leasehold interests in the public or entertainment areas of an amphitheater if a private entity is responsible for one hundred percent of the cost of constructing the amphitheater which is not reimbursed by the public owner, both the public owner and the private lessee sponsor events at the facility on a regular basis, the lessee is responsible under the lease or agreement to operate and maintain the facility, and the amphitheater has a seating capacity of over seventeen thousand reserved and general admission seats and is in a county that had a population of over three hundred fifty thousand, but less than four hundred twenty-five thousand when the amphitheater first opened to the public.
     (b) For the purposes of this subsection (18), "public or entertainment areas" include box offices or other ticket sales areas, entrance gates, ramps and stairs, lobbies and concourses, parking areas, concession areas, restaurants, hospitality areas, kitchens or other work areas primarily servicing other public or entertainment areas, public rest room areas, press and media areas, control booths, broadcast and production areas, retail sales areas, museum and exhibit areas, scoreboards or other public displays, storage areas, loading, staging, and servicing areas, seating areas including lawn seating areas and suites, stages, and any other areas to which the public has access or which are used for the production of the entertainment event or other public usage, and any other personal property used for these purposes. "Public or entertainment areas" does not include office areas used predominately by the lessee.
     (19) All leasehold interests in real property used for the placement of military housing meeting the requirements of RCW 84.36.665.
     (20) All leasehold interests in the public or entertainment areas of a professional motorsports entertainment and family recreation facility that is constructed on or after January 1, 2011. For the purposes of this subsection, "public or entertainment areas" include ticket sales areas, ramps and stairs, lobbies and concourses, parking areas, recreational vehicle camping areas, concession areas restaurants, hospitality and club areas, kitchens and other work and maintenance areas servicing other public or entertainment areas, public restroom areas, press and media areas, control towers and booths, broadcast and production areas, retail sales areas, museum and exhibit areas, scoreboards and other public displays, storage areas, loading, staging, and servicing areas, seating areas and suites, the closed-course speedway, open space, and any other areas to which the public has access or which are used for the production of the entertainment event or other public usage, and any other personal property used for these purposes. "Public or entertainment areas" does not include private offices or other areas exclusively used by the lessee.

NEW SECTION.  Sec. 603   PAYMENTS IN LIEU OF TAXES. A public speedway authority must make annual payments in lieu of property taxes to any host jurisdiction, fire protection district, regional fire protection service authority, emergency medical service district, urban emergency medical service district, or other taxing district in an amount equal to the property taxes that would be payable with respect to the property were it not owned by a municipal corporation.

Sec. 604   RCW 36.94.020 and 2008 c 301 s 25 are each amended to read as follows:
     (1) The construction, operation, and maintenance of a system of sewerage and/or water is a county purpose. Subject to the provisions of this chapter, every county has the power, individually or in conjunction with another county or counties to adopt, provide for, accept, establish, condemn, purchase, construct, add to, operate, and maintain a system or systems of sanitary and storm sewers, including outfalls, interceptors, plans, and facilities and services necessary for sewerage treatment and disposal, and/or system or systems of water supply within all or a portion of the county. However, counties ((shall)) do not have power to condemn sewerage and/or water systems of any municipal corporation or private utility.
     (2) A county may provide sewer service within ten miles outside of its corporate limits to a professional motorsports entertainment and family recreation facility, provided that another municipal corporation is not already furnishing sewerage service to the facility.
     (3) Such county or counties ((shall)) have the authority to control, regulate, operate, and manage such system or systems and to provide funds therefor by general obligation bonds, revenue bonds, local improvement district bonds, utility local improvement district or local improvement district assessments, and in any other lawful fiscal manner. Rates or charges for on-site inspection and maintenance services may not be imposed under this chapter on the development, construction, or reconstruction of property.
     (4) Under this chapter, after July 1, 1998, any requirements for pumping the septic tank of an on-site sewage system should be based, among other things, on actual measurement of accumulation of sludge and scum by a trained inspector, trained owner's agent, or trained owner. Training must occur in a program approved by the state board of health or by a local health officer.
     (5) Before adopting on-site inspection and maintenance utility services, or incorporating residences into an on-site inspection and maintenance or sewer utility under this chapter, notification must be provided, prior to the applicable public hearing, to all residences within the proposed service area that have on-site systems permitted by the local health officer. The notice must clearly state that the residence is within the proposed service area and must provide information on estimated rates or charges that may be imposed for the service.
     (6) A county ((shall)) may not provide on-site sewage system inspection, pumping services, or other maintenance or repair services under this section using county employees unless the on-site system is connected by a publicly owned collection system to the county's sewerage system, and the on-site system represents the first step in the sewage disposal process. Nothing in this section ((shall)) affects the authority of a state or local health officer to carry out their responsibilities under any other applicable law.
     (7) A county may, as part of a system of sewerage established under this chapter, provide for, finance, and operate any of the facilities and services and may exercise the powers expressly authorized for county storm water, flood control, pollution prevention, and drainage services and activities under chapters 36.89, 86.12, 86.13, and 86.15 RCW. A county also may provide for, finance, and operate the facilities and services and may exercise any of the powers authorized for aquifer protection areas under chapter 36.36 RCW; for lake or beach management districts under chapter 36.61 RCW; for diking districts, and diking, drainage, and sewerage improvement districts under chapters 85.05, 85.08, 85.15, 85.16, and 85.18 RCW; and for shellfish protection districts under chapter 90.72 RCW. However, if a county by reference to any of those statutes assumes as part of its system of sewerage any powers granted to such areas or districts and not otherwise available to a county under this chapter, then (((1))) (a) the procedures and restrictions applicable to those areas or districts apply to the county's exercise of those powers, and (((2))) (b) the county may not simultaneously impose rates and charges under this chapter and under the statutes authorizing such areas or districts for substantially the same facilities and services, but must instead impose uniform rates and charges consistent with RCW 36.94.140. By agreement with such an area or district that is not part of a county's system of sewerage, a county may operate that area's or district's services or facilities, but a county may not dissolve any existing area or district except in accordance with any applicable provisions of the statute under which that area or district was created.

Sec. 605   RCW 36.94.030 and 1981 c 313 s 15 are each amended to read as follows:
     Whenever the county legislative authority deems it advisable and necessary for the public health and welfare of the inhabitants of the county to establish, purchase, acquire, and construct a system of sewerage and/or water, or make any additions and betterments thereto, or extensions thereof, the board ((shall)) must adopt a sewerage and/or water general plan for a system of sewerage and/or water for all or a portion of the county as deemed necessary by the board, and for a system of sewerage service to a professional motorsports entertainment and family recreation facility as permitted by RCW 36.94.020. If the county has adopted a comprehensive plan for a physical development of the county pursuant to chapter 36.70 RCW and/or chapter 35.63 RCW, then the sewerage and/or water general plan ((shall)) must be adopted as an element of that comprehensive plan pursuant to the applicable statute.

Sec. 606   RCW 35.91.020 and 2009 c 344 s 1 and 2009 c 230 s 1 are each reenacted and amended to read as follows:
     (1)(a) Except as provided under subsection (2) of this section, the governing body of any city, town, county, water-sewer district, or drainage district, hereinafter referred to as a "municipality" may contract with owners of real estate for the construction of storm, sanitary, or combination sewers, pumping stations, and disposal plants, water mains, hydrants, reservoirs, or appurtenances, hereinafter called "water or sewer facilities," within their boundaries or (except for counties) within ten miles from their corporate limits connecting with the public water or sewerage system to serve the area in which the real estate of such owners is located, and to provide for a period of not to exceed twenty years for the reimbursement of such owners and their assigns by any owner of real estate who did not contribute to the original cost of such water or sewer facilities and who subsequently tap onto or use the same of a fair pro rata share of the cost of the construction of said water or sewer facilities, including not only those directly connected thereto, but also users connected to laterals or branches connecting thereto, subject to such reasonable rules and regulations as the governing body of such municipality may provide or contract, and notwithstanding the provisions of any other law.
     (b) If authorized by ordinance or contract, a municipality may participate in financing the development of water or sewer facilities development projects authorized by, and in accordance with, (a) of this subsection. Unless otherwise provided by ordinance or contract:
     (i) Municipalities that contribute to the financing of water or sewer facilities projects under this section have the same rights to reimbursement as owners of real estate who make contributions as authorized under this section; and
     (ii) If the projects are jointly financed by a combination of municipal funding and private funding by real estate owners, the amount of reimbursement received by each participant in the financing must be a pro rata share.
     (c) A municipality seeking reimbursement from an owner of real estate under this section is limited to the dollar amount authorized under this chapter and may not collect any additional reimbursement, assessment, charge, or fee for the infrastructure or facilities that were constructed under the applicable ordinance, contract, or agreement. This does not prevent the collection of amounts for services or infrastructure that are additional expenditures not subject to such ordinance, contract, or agreement.
     (d) Notwithstanding any limitation on counties in (a) of this subsection, a county may contract with a public speedway authority or its lessee for the construction of water or sewer facilities within ten miles of its corporate limits connecting with the county's public sewerage system to service a professional motorsports entertainment and family recreation facility, and to provide for a period of not to exceed fifteen years for the reimbursement of the authority or its lessee and their assigns by any owner of real estate who did not contribute to the original cost of such sewer facilities and who subsequently tap onto or use the same of a fair pro rata share of the cost of the construction of said sewer facilities, including not only those directly connected thereto, but also users connected to laterals or branches connecting thereto, subject to such reasonable rules and regulations as the governing body of such county may provide or contract.
     (2)(a) The contract may provide for an extension of the twenty-year reimbursement period for a time not to exceed the duration of any moratorium, phasing ordinance, concurrency designation, or other governmental action that prevents making applications for, or the approval of, any new development within the benefit area for a period of six months or more.
     (b) Upon the extension of the reimbursement period pursuant to (a) of this subsection, the contract must specify the duration of the contract extension and must be filed and recorded with the county auditor. Property owners who are subject to the reimbursement obligations under subsection (1) of this section ((shall)) must be notified by the contracting municipality of the extension filed under this subsection.
     (3) Each contract ((shall)) must include a provision requiring that every two years from the date the contract is executed a property owner entitled to reimbursement under this section provide the contracting municipality with information regarding the current contract name, address, and telephone number of the person, company, or partnership that originally entered into the contract. If the property owner fails to comply with the notification requirements of this subsection within sixty days of the specified time, then the contracting municipality may collect any reimbursement funds owed to the property owner under the contract. Such funds must be deposited in the capital fund of the municipality.
     (4) To the extent it may require in the performance of such contract, such municipality may install said water or sewer facilities in and along the county streets in the area to be served as hereinabove provided, subject to such reasonable requirements as to the manner of occupancy of such streets as the county may by resolution provide. The provisions of such contract ((shall)) are not ((be)) effective as to any owner of real estate not a party thereto unless such contract has been recorded in the office of the county auditor of the county in which the real estate of such owner is located prior to the time such owner taps into or connects to said water or sewer facilities.

Sec. 607   RCW 84.34.037 and 2009 c 350 s 13 are each amended to read as follows:
     (1) Applications for classification or reclassification under RCW 84.34.020(1) ((shall)) must be made to the county legislative authority. An application made for classification or reclassification of land under RCW 84.34.020(1) (b) and (c) which is in an area subject to a comprehensive plan ((shall)) must be acted upon in the same manner in which an amendment to the comprehensive plan is processed. Application made for classification of land which is in an area not subject to a comprehensive plan ((shall)) must be acted upon after a public hearing and after notice of the hearing ((shall have)) has been given by one publication in a newspaper of general circulation in the area at least ten days before the hearing((: PROVIDED, That)). However, applications for classification of land in an incorporated area ((shall)) must be acted upon by: (a) A granting authority composed of three members of the county legislative body and three members of the city legislative body in which the land is located in a meeting where members may be physically absent but participating through telephonic connection; or (b) separate affirmative acts by both the county and city legislative bodies where both bodies affirm the entirety of an application without modification or both bodies affirm an application with identical modifications.
     (2) In determining whether an application made for classification or reclassification under RCW 84.34.020(1) (b) and (c) should be approved or disapproved, the granting authority may take cognizance of the benefits to the general welfare of preserving the current use of the property which is the subject of application, and ((shall)) must consider:
     (a) The resulting revenue loss or tax shift;
     (b) Whether granting the application for land applying under RCW 84.34.020(1)(b) will (i) conserve or enhance natural, cultural, or scenic resources, (ii) protect streams, stream corridors, wetlands, natural shorelines and aquifers, (iii) protect soil resources and unique or critical wildlife and native plant habitat, (iv) promote conservation principles by example or by offering educational opportunities, (v) enhance the value of abutting or neighboring parks, forests, wildlife preserves, nature reservations, sanctuaries, or other open spaces, (vi) enhance recreation opportunities, (vii) preserve historic and archaeological sites, (viii) preserve visual quality along highway, road, and street corridors or scenic vistas, (ix) affect any other factors relevant in weighing benefits to the general welfare of preserving the current use of the property; and
     (c) Whether granting the application for land applying under RCW 84.34.020(1)(c) will (i) either preserve land previously classified under RCW 84.34.020(2) or preserve land that is traditional farmland and not classified under chapter 84.33 or 84.34 RCW, (ii) preserve land with a potential for returning to commercial agriculture, and (iii) affect any other factors relevant in weighing benefits to the general welfare of preserving the current use of property.
     (3) If a public benefit rating system is adopted under RCW 84.34.055, the county legislative authority ((shall)) must rate property for which application for classification has been made under RCW 84.34.020(1) (b) and (c) according to the public benefit rating system in determining whether an application should be approved or disapproved, but when such a system is adopted, open space properties then classified under this chapter which do not qualify under the system ((shall)) may not be removed from classification but may be rated according to the public benefit rating system.
     (4) The granting authority may approve the application with respect to only part of the land which is the subject of the application. If any part of the application is denied, the applicant may withdraw the entire application. The granting authority in approving in part or whole an application for land classified or reclassified pursuant to RCW 84.34.020(1) may also require that certain conditions be met, including but not limited to the granting of easements. As a condition of granting open space classification, the legislative body may not require public access on land classified under RCW 84.34.020(1)(b)(iii) for the purpose of promoting conservation of wetlands.
     (5) The granting authority must approve an application for open space classification for any portion of a property used for a professional motorsports entertainment and family recreation facility that is (a) not covered with impervious surface and (b) maintained in a condition consistent with the open space designation, including without limitation portions used for activities such as recreation, temporary parking for events, storm water management, wetlands, and wetland buffers.
     (6) The granting or denial of the application for current use classification or reclassification is a legislative determination and ((shall be)) is reviewable only for arbitrary and capricious actions.

Sec. 701   RCW 36.96.010 and 1999 c 153 s 50 are each amended to read as follows:
     As used in this chapter, unless the context requires otherwise:
     (1) "Special purpose district" means every municipal and quasi-municipal corporation other than counties, cities, and towns. Such special purpose districts ((shall)) include, but are not limited to, water-sewer districts, fire protection districts, port districts, public utility districts, county park and recreation service areas, flood control zone districts, diking districts, drainage improvement districts, public speedway authorities, and solid waste collection districts, but ((shall)) does not include industrial development districts created by port districts, and ((shall)) does not include local improvement districts, utility local improvement districts, and road improvement districts;
     (2) "Governing authority" means the commission, council, or other body which directs the affairs of a special purpose district;
     (3) "Inactive" means that a special purpose district, other than a public utility district, is characterized by either of the following criteria:
     (a) Has not carried out any of the special purposes or functions for which it was formed within the preceding consecutive five-year period; or
     (b) No election has been held for the purpose of electing a member of the governing body within the preceding consecutive seven-year period or, in those instances where members of the governing body are appointed and not elected, where no member of the governing body has been appointed within the preceding seven-year period.
     A public utility district is inactive when it is characterized by both criteria (a) and (b) of this subsection.

NEW SECTION.  Sec. 702   APPLICABILITY OF PUBLIC LAWS. A public speedway authority, its officers, and the board of directors, created under this act, are subject to the general laws regulating local governments and local governmental officials including, but not limited to, the requirement to be audited by the state auditor and various accounting requirements under chapter 43.09 RCW, the open public record requirements under chapter 42.17 RCW, the prohibition on using its facilities for campaign purposes under RCW 42.17.130, the open public meetings law under chapter 42.30 RCW, the code of ethics for municipal officers under chapter 42.23 RCW, and the local government whistleblower law under chapter 42.41 RCW.

NEW SECTION.  Sec. 703   No direct or collateral attack on any public speedway authority purported to be authorized or created in conformance with this chapter may be commenced more than thirty days after creation.

NEW SECTION.  Sec. 704   A new section is added to chapter 82.08 RCW to read as follows:
     The tax levied by RCW 82.08.020 does not apply to any retail sales for which a tax deferral certificate is currently effective and has been issued by the department to a public speedway authority, pursuant to section 503 of this act.

NEW SECTION.  Sec. 705   A new section is added to chapter 82.12 RCW to read as follows:
     The provisions of this chapter do not apply in respect to any uses for which a tax deferral certificate is currently effective and has been issued by the department to a public speedway authority, pursuant to section 503 of this act.

NEW SECTION.  Sec. 706   A new section is added to chapter 82.14 RCW to read as follows:
     The provisions of this chapter do not apply in respect to any local retail sales or uses for which a tax deferral certificate is currently effective and has been issued by the department to a public speedway authority, pursuant to section 503 of this act.

NEW SECTION.  Sec. 707   Sections 101 through 309, 402, 403, 501 through 504, 601, 603, 702, and 703 of this act constitute a new chapter in Title 36 RCW.

NEW SECTION.  Sec. 708   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.

NEW SECTION.  Sec. 709   The provisions of this act must be liberally construed to effect the policies and purposes of this act.