HOUSE BILL REPORT

SSB 6474

BYSenate Committee on Financial Institutions & Insurance (originally sponsored by Senators Williams, von Reichbauer, Moore, Rinehart, Niemi, Talmadge and Murray)

Changing provisions relating to purchase and sale of property and policy decisions by certain public corporations.

House Committe on Local Government

Majority Report:  Do pass as amended.  (13)

      Signed by Representatives Haugen, Chair; Cooper, Vice Chair; Ferguson, Ranking Republican Member; Horn, Kirby, Nealey, Nelson, Nutley, Phillips, Raiter, Rayburn, Wood and Zellinsky.

Minority Report:  Do not pass.  (1)

      Signed by Representative Wolfe.

House Staff:Bill Lynch (786-7092)

AS PASSED HOUSE MARCH 1, 1990

BACKGROUND:

Counties, cities, and towns are authorized by state law to create public corporations. Any county, city, or town that creates a public corporation is required to control and oversee its operation and funding in order to assure that the purposes of each program are accomplished.  These corporations may be empowered to administer and execute federal grants or programs; receive and administer private funds, goods or services for any lawful public purpose; and perform any lawful public purpose or public function the county, city or town determines that the public corporation should perform.  The public corporation so created has the authority to own and sell real and personal property.

Several cities have established public corporations called preservation and development authorities to manage public and private funds for the preservation of historic properties. Several public corporations that manage historical properties have entered into agreements with investor groups to help finance their operations when public funding was inadequate.  Involved in these agreements was a transfer of an interest in the property managed by the corporation.

It has been suggested that before any interest in property is transferred by a public corporation, a public hearing should be required.

SUMMARY:

A city, town, or county is required to impose deed restrictions that are necessary to ensure the continued use of any property transferred to a public corporation so that the property continues to be used for the public purpose for which it was transferred.  A city, county or town creating a public corporation must require the corporation to give 30 days written notice of any proposed sale or encumbrance of any real property that was transferred to the corporation from the county, city or town.  Notice must be sent to the chief executive and legislative body of the county, city or town, to each local newspaper of general circulation, and to each radio or television station that has filed a written request to be notified with the public corporation.

A public corporation may not sell or encumber any property that has been transferred to it by a city, county or town unless the sale or encumbrance has been approved by the governing body of the public corporation at a public meeting.  The meeting is subject to the notice requirements for special meetings under the Open Public Meetings Act. The corporation also must advertise notice of a special meeting in a local newspaper of general circulation at least twice.

A definition of a "public market" that is managed in whole or in part by a public corporation created by a city is added to the eminent domain statute and the statute giving first-class cities the authority to acquire and operate a public market.  A public market is defined to include all real or personal property located in a district or area designated by a city as a "public market," that is traditionally devoted to providing farmers, crafts vendors, and other merchants retail space.  A "public market" is not required to be exclusively or primarily used for traditional public market activities and may include areas used for other public purposes.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Senator Williams, prime sponsor; and Don Stoudt, City of Seattle Attorney's Office.

House Committee - Testified Against:      No one.

House Committee - Testimony For:    Adding the definition of a "public market" would assist the City of Seattle if it decides to acquire the Pike Place Market.

House Committee - Testimony Against:      None.