SENATE BILL REPORT

SB 6074

BYSenators West, Stratton, McCaslin and Saling

Revising provisions on public facilities districts.

Senate Committee on Ways & Means

Senate Hearing Date(s):March 30, 1989; April 3, 1989

Majority Report:  That Substitute Senate Bill No. 6074 be substituted therefor, and the substitute bill do pass.

      Signed by Senators McDonald, Chairman; Craswell, Vice Chairman; Bailey, Bluechel, Cantu, Hayner, Johnson, Lee, Matson, Saling, Talmadge, Williams.

Senate Staff:Steve Jones (786-7715)

                  April 4, 1989

AS REPORTED BY COMMITTEE ON WAYS & MEANS, APRIL 3, 1989

BACKGROUND:

In 1988, the Legislature enacted Chapter 36.100 RCW, authorizing the creation, by public vote, of public facility districts to acquire or construct and operate convention, sports, entertainment, trade, and related parking facilities. Methods of financing the facilities include a hotel/motel tax on premises exceeding 40 units, an admissions tax on publicly owned assembly facilities, a property tax, and general obligation bonds.

The 1988 act also appropriated $1,000,000 from the state building construction account to the Department of Community Development for a Spokane trade, sports, and convention facility. The appropriation is contingent on creation of a Spokane public facility district.  If construction bonds are not issued by December 31, 1991, repayment of the appropriation, with interest, is required.

SUMMARY:

A public vote to create a public facility district is not required.  The district may be formed by resolution of the county legislative authority and the city council of the largest city.  However, no taxes may be levied without a public vote validating the creation of the district.  The district board of directors must include at least one representative of the hotel industry.  The public facility to be constructed is limited to sports and entertainment facilities with related parking facilities. 

The hotel/motel tax may be imposed regardless of the number of lodging units.  The public admissions tax authorization is removed.

$1,000,000 from the state building construction account is reappropriated for the Spokane public facilities district.  No repayment is required.

EFFECT OF PROPOSED SUBSTITUTE:

The hotel/motel tax may not be levied on any premises having fewer than 40 lodging units.  A representative of the lodging industry is included in the board of the public facility district.  $500,000 of the appropriation must be repaid to the state.

Appropriation:    $1,000,000 (state building construction account)

Revenue:    none

Fiscal Note:      available

Senate Committee - Testified: Senator Jim West