AN ACT Relating to economic rebirth districts; amending RCW 84.52.052; and adding a new chapter to Title 35 RCW.

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

NEW SECTION. Sec. 1. The legislature finds that there are areas within the boundaries of cities and towns and counties which may benefit from the ability to provide facilities and services in order to enhance the economic vitality and quality of life of the residents of the area. The economic viability of an area may be impacted by the availability and quality of a wide range of facilities and services, by the ability to undertake promotional activities, and by the ability to undertake economic development activities. The long history in the state involving the authorizing of the creation of special purpose districts to permit local citizens to tax themselves to provide needed facilities or services or to meet their need for facilities and services while recovering costs through the imposition of fees or charges is one of the most valuable tools available to accomplish local economic revitalization goals.

NEW SECTION. Sec. 2. One or more economic rebirth districts may be established for the purpose of providing and funding necessary services and facilities to achieve local needs to promote economic revitalization. An economic rebirth district is a quasi-municipal corporation, an independent taxing "authority" within the meaning of Article VII, section 1 of the state Constitution, and a "taxing district" within the meaning of Article VII, section 2 of the state Constitution.

An economic rebirth district shall constitute a body corporate and shall possess all the usual powers of a corporation for public purposes as well as all other powers that may now or hereafter be specifically conferred by statute, including, but not limited to, the authority to hire employees, staff, and services, to enter into contracts, and to sue and be sued.

The governing body of an economic rebirth district shall be a seven-member council as provided in section 3 of this act. The city, town or county treasurer of the city, town or county within which an economic rebirth district is located shall act as the ex officio treasurer of the economic rebirth district. In selecting depository institutions for the funds of the economic rebirth district, the city, town or county treasurer should give preference to those financial institutions which have made a demonstrated commitment to meeting the needs for financial services of individuals and firms within the area of the economic rebirth district. The electors of an economic rebirth district are all registered voters residing within the district.

NEW SECTION. Sec. 3. The procedure to initiate the creation of an economic rebirth district shall be to file a petition with the council of the city, town or county within which the proposed economic rebirth district is located requesting the creation of the district, which petition is signed by registered voters residing in the proposed district equal in number to at least ten percent of the total number of registered voters residing therein. The petition shall describe the boundaries of the proposed economic rebirth district, which only may include all or part of a single city, town or county, and shall specify the intended purposes to be served by such a district.

If sufficient valid signatures are included on the petition, the city, town or county council shall hold a public hearing on the proposal within the boundaries of the proposed economic rebirth district. The public hearing must be held within sixty days of the date when the petition is certified as having sufficient valid signatures. After the public hearing, which may be continued to other dates and times, the city, town or county council shall provide for a ballot proposition authorizing the creation of the economic rebirth district to be placed on the ballot at the next general election occurring sixty or more days after the date of the last public hearing on the proposal.

If the voters of the proposed economic rebirth district approve the ballot proposition by a simple majority vote, the economic rebirth district shall be established when the election results are certified.

NEW SECTION. Sec. 4. (1) An economic rebirth district located in a city or town shall be governed by a seven-member council to consist of: (a) Three residents of the economic rebirth district to be elected by the voters of the district; (b) the mayor of the city, or his or her designee; (c) two city council members or designees, as selected by the city council; and (d) a member of the county legislative authority or designee, as selected by the county legislative authority of the county within which all or the greatest portion of the economic rebirth district is located. The selections shall be made within thirty days of the certification of the vote authorizing the creation of the economic rebirth district.

(2) An economic rebirth district located in a county shall be governed by a seven-member council to consist of: (a) Three residents of the economic rebirth district to be elected by the voters of the district; (b) the county executive, or his or her designee; and (c) three members of the county legislative authority or their designees, as selected by the county legislative authority. If the county has no county executive, the council shall consist of four elected members and three members of the county legislative authority.

(3) The elected members of the seven members of the economic rebirth district council shall be elected at the same election at which the economic rebirth district is enabled or at an election to take place no less than three months and no more than six months subsequent to the establishment of the district. No primary election shall be held to nominate these three initially elected council members. Candidates shall run for separately numbered positions. The candidates receiving the greatest number of votes for each position shall be elected to terms of office as follows: (a) If the election is held in an even-numbered year, the winning candidate that received the greatest number of votes shall be elected to a three-year term of office, and the other winning candidates shall be elected to one-year terms of office; but (b) if the election is held in an odd-numbered year, the winning candidate with the greatest number of votes shall be elected to a four-year term of office, and the other winning candidates shall be elected to two-year terms of office. These initially elected council members shall assume office immediately and serve until their successors are elected and qualified. The term of office of these initially elected council members shall be calculated from the first day of January in the year following their election. Thereafter, elected council members shall be elected for four-year terms.

(3) All actions by the council shall require an affirmative vote of a majority of sitting members. Meetings of the council shall be subject to the open public meetings act.

NEW SECTION. Sec. 5. Economic rebirth district elections shall be controlled by general election laws, as provided in Title 29 RCW.

NEW SECTION. Sec. 6. (1) An economic rebirth district is authorized to finance, or assist in the financing of, any of the following improvements and related equipment: (a) Streets; (b) curbs; (c) sidewalks; (d) street lighting; (e) parks and recreation facilities; (f) community centers; (g) off-street parking facilities; (h) fire stations; (i) police precincts; (j) day-care centers; (k) senior citizen facilities, including rest homes and activity centers; and (l) museums.

(2) An economic rebirth district is authorized to finance and provide any of the following services and activities: (a) Economic development and promotion, to include but not be limited to the provision of technical assistance to business and the incubation of new enterprises; (b) street cleaning; (c) maintenance of park and recreation facilities, fire stations, police precincts, community centers, day-care centers, and senior citizen facilities; (d) recreational, social, and cultural activities; and (e) information gathering and dissemination.

NEW SECTION. Sec. 7. An economic rebirth district may accept and expend or use gifts, grants, and donations. Additionally, an economic rebirth district may impose charges and fees for the use of its facilities and services.

NEW SECTION. Sec. 8. An economic rebirth district may levy and collect an excise tax on the privilege of living in or operating a business within its boundaries sufficient to fund its activities, services, and facilities for a period of up to ten years. The ability to levy such a tax for an additional period shall be granted upon an affirmative vote of a majority of the registered voters residing within the boundaries of the economic rebirth district. The excise tax shall be billed and collected at times and in the manner fixed and determined by the economic rebirth district. The economic rebirth district may contract with the city or town within which it is located for the collection of such taxes. Penalties for failure to pay the tax on time may be provided. An economic rebirth district shall have a lien for delinquent taxes and penalties, plus interest at a rate equal to the interest rate for delinquent property taxes. The lien shall attach to each parcel of property in the district that is occupied by the person or business so taxed and shall be superior to all other liens and encumbrances except liens for property taxes.

The economic rebirth district periodically shall certify any delinquencies to the county treasurer at which time the lien shall be attached. The lien shall be foreclosed in the same manner as the foreclosure of real property taxes.

NEW SECTION. Sec. 9. (1) An economic rebirth district may levy an annual regular ad valorem property tax of up to one dollar per thousand dollars of assessed valuation. If an economic rebirth district imposes a regular property tax which, in combination with the regular property taxes imposed by other taxing districts, will result in property taxes in excess of the limitation on regular property taxes contained in RCW 84.52.043, the regular property tax levy of the economic rebirth district shall be reduced or eliminated before the regular property tax levies of other taxing districts are reduced.

(2) An economic rebirth district may levy an ad valorem property tax, in excess of the one percent limitation, upon the property within the district for a one-year period to be used for operating or capital purposes whenever authorized by the voters of the district pursuant to RCW 84.52.052 and Article VII, section 2(a) of the state Constitution.

(3) An economic rebirth district may provide for the retirement of voter-approved general obligation bonds, issued for capital purposes only, by levying bond retirement ad valorem property tax levies, in excess of the one percent limitation, whenever authorized by the voters of the district pursuant to Article VII, section 2(b) of the state Constitution and RCW 84.52.056.

NEW SECTION. Sec. 10. (1) To carry out the purpose of this chapter, an economic rebirth district may issue general obligation bonds, not to exceed an amount, together with any outstanding nonvoter-approved general obligation indebtedness, equal to three-eighths of one percent of the value of taxable property within the district, as the term "value of taxable property" is defined in RCW 39.36.015. An economic rebirth district may issue general obligation bonds for capital purposes only, together with any outstanding general obligation indebtedness, not to exceed an amount equal to one and one-fourth percent of the value of the taxable property within the district, as the term "value of taxable property" is defined in RCW 39.36.015, when authorized by the voters of the economic rebirth district pursuant to Article VIII, section 6 of the state Constitution, and to provide for the retirement thereof by excess property tax levies as provided in section 9(3) of this act.

(2) General obligation bonds with a maturity in excess of thirty years shall not be issued. The bonds shall be issued and sold in accordance with the provisions of chapter 39.46 RCW. Refunding general obligation bonds may be issued in the same manner as general obligation bonds are issued.

NEW SECTION. Sec. 11. (1) An economic rebirth district may form a local improvement district to finance any local improvement it has the authority to provide, impose special assessments on all property specially benefited by the local improvements, and issue special assessment bonds to finance the costs of the local improvement. Local improvement districts shall be created and special assessments shall be made and collected pursuant to chapters 35.43, 35.44, 35.49, 35.50, 35.53, and 35.54 RCW.

(2) The special assessment bonds shall be issued and sold in accordance with the provisions of chapter 39.46 RCW. The maximum term of any special assessment bonds shall not exceed thirty years beyond the date of issue. Special assessment bonds issued pursuant to this section shall not be an indebtedness of the economic rebirth district issuing the bonds, and the interest and principal on the bonds shall only be payable from special assessments made for the improvement for which the bonds were issued and any local improvement guaranty fund that the economic rebirth district has created. The owner of a special assessment bond or any interest coupon issued pursuant to this section shall not have any claim against the economic rebirth district arising from the bond or coupon except for the payment from special assessments made for the improvement for which the bonds were issued and any local improvement guaranty fund the economic rebirth district has created. The economic rebirth district issuing the special assessment bonds is not liable to the owner of any special assessment bond or any interest coupon issued pursuant to this section for any loss occurring in the lawful operation of its local improvement guaranty fund. The substance of the limitations included in this subsection shall be plainly printed, written, or engraved on each special assessment bond issued pursuant to this section.

(3) The council may establish and pay moneys into a local improvement guaranty fund to guarantee special assessment bonds issued by the economic rebirth district.

NEW SECTION. Sec. 12. An economic rebirth district may exercise the power of eminent domain to obtain property for its authorized purposes in the manner counties exercise the powers of eminent domain.

NEW SECTION. Sec. 13. The rule of strict construction does not apply to this chapter, and this chapter shall be liberally construed to permit the accomplishment of its purposes.

Sec. 14. Section 19, chapter 2, Laws of 1983 as last amended by section 10, chapter 315, Laws of 1983 and RCW 84.52.052 are each amended to read as follows:

The limitations imposed by RCW 84.52.050 through 84.52.056, and RCW 84.52.043 shall not prevent the levy of additional taxes by any taxing district except school districts in which a larger levy is necessary in order to prevent the impairment of the obligation of contracts. Any county, metropolitan park district, park and recreation service area, park and recreation district, sewer district, water district, solid waste disposal district, economic rebirth district, flood control zone district, county rail district, service district, public hospital district, road district, rural county library district, island library district, intercounty rural library district, fire protection district, cemetery district, city, town, or cultural arts, stadium, and convention district may levy taxes at a rate in excess of the rate specified in RCW 84.52.050 through 84.52.056 and RCW 84.52.043, or RCW 84.55.010 through 84.55.050, when authorized so to do by the electors of such county, metropolitan park district, park and recreation service area, park and recreation district, sewer district, water district, solid waste disposal district, economic rebirth district, flood control zone district, county rail district, service district, public hospital district, road district, rural county library district, island library district, intercounty rural library district, fire protection district, cemetery district, city, town, or cultural arts, stadium, and convention district in the manner set forth in Article VII, section 2(a) of the Constitution of this state, as amended by Amendment 64 and as thereafter amended, at a special or general election to be held in the year in which the levy is made.

A special election may be called and the time therefor fixed by the county legislative authority, or council, board of commissioners, or other governing body of any metropolitan park district, park and recreation service area, park and recreation district, sewer district, water district, solid waste disposal district, economic rebirth district, flood control zone district, county rail district, service district, public hospital district, road district, rural county library district, island library district, intercounty rural library district, fire protection district, cemetery district, city, town, or cultural arts, stadium, and convention district, by giving notice thereof by publication in the manner provided by law for giving notices of general elections, at which special election the proposition authorizing such excess levy shall be submitted in such form as to enable the voters favoring the proposition to vote "yes" and those opposed thereto to vote "no."

NEW SECTION. Sec. 15. Sections 1 through 13 of this act constitute a new chapter in Title 35 RCW.