HB 1499

Brief Description: Concerning certain public facilities district's authorization to acquire, construct, own, remodel, maintain, equip, reequip, repair, finance, and operate one or more recreational facilities other than a ski area with voter approval.

Sponsors: Representatives Jenkin and Peterson.

Hearing Date: 2/5/19

Staff: Yvonne Walker (786-7841).

Background:

A Public Facilities District (PFD) is a municipal corporation with independent taxing authority and is a taxing district under the state Constitution.

A PFD is authorized to acquire, construct, own, remodel, maintain, equip, reequip, repair, finance, and operate one or more regional centers. A "regional center" is a convention, conference, or special events center, or any combination of facilities, and its related parking facilities. A "special events center" is a facility, available to the public, used for community events, sporting events, trade shows, and artistic, musical, theatrical, or other cultural exhibitions, presentations, or performances.

There are several major types of local PFDs that can be created which include a:

• single-town or city PFD that is created by any town or city located in a county with a population of less than 1,000,000;

• contiguous group of towns or cities PFD that are created when any contiguous group of towns or cities located in a county or counties each with a population of less than 1,000,000 enter an interlocal agreement for the PFD's creation and joint operation;

• city and county joint PFD that is created and jointly operated when: (1) any town or city, or any contiguous group of towns or cities, located in a county with a population of less than 1,000,000; and (2) a contiguous county, or the county or counties in which the towns or cities are located enter into an interlocal agreement for the PFD's creation and joint operation; and

• regional city PFD that is created by a city located in a county with a population greater than 1,000,000, when the city has a total population of less than 115,000 but greater than 80,000 and commences construction of a regional center prior to July 1, 2008.

Additional Regional PFD.

In addition, any three contiguous towns or cities, which have already created a local (single town/city) PFD and has a combined population of at least 160,000, may create an additional regional PFD. These additional regional PFDs, created by a group of three contiguous cities or towns, are authorized to acquire and operate "recreational facilities", not including ski areas (in addition to its regular PFD powers). In exercising its authority to establish a regional center or recreational facility, a regional PFD of this type must obtain voter approval to fund the project.

All PFDs may charge fees for the use of its facilities. A PFD may also impose a variety of taxes to fund its regional center or recreational facility including an admissions tax not exceeding five percent, a vehicle parking tax not exceeding ten percent, and a voter-approved local sales and use tax of up to two percent.

Summary of Bill:

A local Public Facilities District (single town or city PFD) created by a city or town that has also participated in the creation of an additional regional PFD (with three or more contiguous cities or towns) is authorized to establish and operate a recreational facility. This PFD possesses all the same powers with respect to recreational facilities, other than a ski area, that other PFDs have with respect to regional centers. If establishing a recreational facility, the local PFD must obtain voter approval to fund the project.

Appropriation: None.

Fiscal Note: Preliminary fiscal note available.

Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.