H-4058              _______________________________________________

                                                   HOUSE BILL NO. 2950

                        _______________________________________________

State of Washington                               51st Legislature                              1990 Regular Session

By Representatives Rasmussen, Jacobsen, Braddock, Heavey, Vekich, Grant, Dorn and Wineberry

Read first time 1/26/90 and referred to Committee on Trade & Economic Development.

AN ACT Relating to public ownership of professional sports franchises; amending RCW 35.21.695; adding new sections to chapter 35.21 RCW; creating a new section; and declaring an emergency.

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

NEW SECTION. Sec. 1.     The legislature hereby declares and finds that professional sports franchises are economic, cultural, and entertainment assets to the state and that unilateral actions by the owners of franchises to move those franchises to other locations result in a loss of direct and indirect employment and national visibility for the state.  The legislature finds that the retention of professional sports franchises and the enabling legislation necessary for the public purchase of those franchises are public purposes and not contrary to the provisions of Article VIII, section 7, of the Washington state Constitution.

        Sec. 2.  Section 2, chapter 32, Laws of 1987 and RCW 35.21.695 are each amended to read as follows:

          (1) Any city, code city, ((or)) county, or state, individually or collectively, may own and operate an existing professional sports franchise when the owners of such franchises announce their intention to sell or move a franchise.

          (2) If a city, code city, ((or)) county, or state purchases or seeks to purchase a professional sports franchise, a public corporation shall be created to acquire and/or manage and operate the franchise.  However, a public corporation may be formed at anytime in order to facilitate the purchase and subsequent  management of a sports franchise under subsection (1) of this section.  The public corporation created under this section shall have all of the authorities granted by RCW 35.21.730 through 35.21.757.

NEW SECTION. Sec. 3.  A new section is added to chapter 35.21 RCW to read as follows:

          A public corporation established under RCW 35.21.695 is authorized to receive loans from the state, any subdivision, or combination thereof to cover the purchase price plus any additional cost of acquiring and operating a professional sports franchise.

NEW SECTION. Sec. 4.  A new section is added to chapter 35.21 RCW to read as follows:

          It shall be detrimental to the general welfare and against the public policy of the state of Washington to enforce any provision of any contract entered into after the effective date of this act which precludes public entity ownership of a professional sports franchise.

NEW SECTION. Sec. 5.  A new section is added to chapter 35.21 RCW to read as follows:

          If a public corporation is created under RCW 35.21.695, it may sell the franchise to a private entity, subject to competitive bidding, if:  (1) It determines that the public interest will be best served by private ownership after considering factors including, but not limited to the rules of the professional sports league; and (2) the sale is expressly conditioned on commitments specifically intended, and by their terms reasonably expected, to keep the franchise located in Washington for at least twenty-five years from the end of the season in the year in which the sale is consummated.

NEW SECTION. Sec. 6.     This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.