6049-S.E AMH TED H2713.3

6049-S.E AMH TED H2713.3

ESSB 6049 - H COMM AMD NOT ADOPTED 4/14/95

By Committee on Trade & Economic Development

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 36.100.010 and 1989 1st ex.s. c 8 s 1 are each amended to read as follows:

(1) A public facilities district may be created in any county ((with three hundred thousand or more population that is located more than one hundred miles from any county in which the state has constructed and owns a convention center. A public facilities district)) and shall be coextensive with the boundaries of the county.

(2) A public facilities district shall be created upon adoption of a resolution providing for the creation of such a district by the county legislative authority in which the proposed district is located ((~~and the city council of the largest city within such county~~)).

(3) A public facilities district is a 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.

(4) No taxes authorized under this chapter may be assessed or levied unless a majority of the voters of the public facilities district has validated the creation of the public facilities district at a general or special election. A single ballot proposition may both authorize the creation of a public facilities district and the imposition of the sales and use tax under RCW 82.14.048 or both the creation of a public facilities district and the imposition of the excise tax under RCW 36.100.040.

(5) A public facilities 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.

Sec. 2. RCW 36.100.020 and 1989 1st ex.s. c 8 s 2 are each amended to read as follows:

A public facilities district shall be governed by a board of directors consisting of five or seven members as provided in this section. If the largest city in the county has a population that is at least forty percent of the total county population, the board of directors of the public facilities district shall consist of five members selected as follows: (1) Two members appointed by the county legislative authority to serve for four-year staggered terms; (2) two members appointed by the city council of the largest city in the county to serve for four-year staggered terms; and (3) one person to serve for a four-year term who is selected by the other directors. If the largest city in the county has a population of less than forty percent of the total county population, the county legislative authority shall establish in the resolution creating the public facilities district whether the board of directors of the public facilities district have either five or seven members, and the county legislative authority shall appoint the members of the board of directors to reflect the interests of cities and towns in the county, as well as the unincorporated area of the county.

At least one member on the board of directors shall be representative of the lodging industry in the public facilities district before the public facilities district imposes the excise tax under RCW 36.100.040.

((One of the initial members appointed by the county legislative authority shall have a term of office of two years and the other initial member appointed by the county legislative authority shall have a term of four years. One of the initial members appointed by the city council shall have a term of two years and the other initial member appointed by the city council shall have a term of four years.)) Members of the board of directors shall serve four-year terms of office, except that two of the initial five board members or three of the initial seven board members shall serve two-year terms of office.

Sec. 3. RCW 36.100.030 and 1989 1st ex.s. c 8 s 3 are each amended to read as follows:

A public facilities district is authorized to acquire, construct, own, remodel, maintain, equip, reequip, repair, and operate sports ((~~and~~)) facilities, entertainment facilities, or convention facilities, or any combination of such facilities, together with contiguous parking facilities. The taxes that are provided for in this chapter may only be imposed for these purposes.

A public facilities district may enter into agreements under chapter 39.34 RCW for the joint provision and operation of such facilities and may enter into contracts under chapter 39.34 RCW where any party to the contract provides and operates such facilities for the other party or parties to the contract.

A public facilities district may impose charges and fees for the use of its facilities, and may accept and expend or use gifts, grants, and donations. ((~~The taxes that are provided for in this chapter may only be imposed for such purposes.~~))

Sec. 4. RCW 36.100.040 and 1989 1st ex.s. c 8 s 4 are each amended to read as follows:

A public facilities district may impose an excise tax on the sale of or charge made for the furnishing of lodging by a hotel, rooming house, tourist court, motel, or trailer camp, and the granting of any similar license to use real property, as distinguished from the renting or leasing of real property, except that no such tax may be levied on any premises having fewer than forty lodging units. However, if a public facilities district has not imposed such an excise tax prior to December 31, 1995, the public facilities district may only impose the excise tax if a ballot proposition authorizing the imposition of the tax has been approved by a simple majority vote of voters of the public facilities district voting on the proposition.

The rate of the tax shall not exceed two percent and the proceeds of the tax shall only be used for the acquisition, design, ((~~and~~)) construction, remodeling, maintenance, equipping, reequipping, repairing, and operation of ((~~sports and entertainment~~)) its public facilities. This excise tax shall not be imposed until the district has approved the proposal to acquire, design, and construct the public facilities.

Sec. 5. RCW 36.100.060 and 1989 1st ex.s. c 8 s 5 are each amended to read as follows:

(1) To carry out the purpose of this chapter, a public facilities 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. A facilities district additionally 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 public facilities 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 this chapter.

(2) General obligation bonds may be issued with a maturity of up to thirty years, and shall be issued and sold in accordance with the provisions of chapter 39.46 RCW.

(3) The general obligation bonds may be payable from the operating revenues of the public facilities district in addition to the tax receipts of the district.

(4) The excise tax imposed pursuant to RCW 36.100.040 shall terminate upon final payment of all bonded indebtedness for ((~~the sports and entertainment facility~~)) its public facilities.

Sec. 6. RCW 82.14.048 and 1991 c 207 s 1 are each amended to read as follows:

The governing board of a public facilities district under chapter 36.100 RCW may submit an authorizing proposition to the voters of the district, and if the proposition is approved by a majority of persons voting, fix and impose a sales and use tax in accordance with the terms of this chapter.

The tax authorized in this section shall be in addition to any other taxes authorized by law and shall be collected from those persons who are taxable by the state under chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event within the public facilities district. The rate of tax shall equal one-tenth of one percent of the selling price in the case of a sales tax, or value of the article used, in the case of a use tax.

Moneys received from any tax imposed under this section shall be used for the purpose of providing funds for the costs associated with the financing, design, acquisition, construction, equipping, operating, maintaining, remodeling, repairing, and reequipping of ((~~sports or entertainment~~)) its public facilities ((~~and contiguous parking~~)).

NEW SECTION. Sec. 7. The treasurer of the county in which a public facilities district is located shall be the ex officio treasurer of the district.

NEW SECTION. Sec. 8. The board of directors of the public facilities district shall adopt a resolution that may be amended from time to time that shall establish the basic requirements governing methods and amounts of reimbursement payable to such district officials and employees for travel and other business expenses incurred on behalf of the district. The resolution shall, among other things, establish procedures for approving such expenses; the form of the travel and expense voucher; and requirements governing the use of credit cards issued in the name of the district. The resolution may also establish procedures for payment of per diem to board members. The state auditor shall, as provided by general law, cooperate with the public facilities district in establishing adequate procedures for regulating and auditing the reimbursement of all such expenses.

NEW SECTION. Sec. 9. The board of directors of the public facilities district may authorize payment of actual and necessary expenses of officers and employees for lodging, meals, and travel-related costs incurred in attending meetings or conferences on behalf of the public facilities district and strictly in the public interest and for public purposes. Officers and employees may be advanced sufficient sums to cover their anticipated expenses in accordance with rules adopted by the state auditor, which shall substantially conform to the procedures provided in RCW 43.03.150 through 43.03.210.

NEW SECTION. Sec. 10. Each member of the board of directors of the public facilities district may receive compensation of fifty dollars per day for attending meetings or conferences on behalf of the district, not to exceed three thousand dollars per year. A director may waive all or a portion of his or her compensation under this section as to a month or months during his or her term of office, by a written waiver filed with the public facilities district. The compensation provided in this section is in addition to reimbursement for expenses paid to the directors by the public facilities district.

NEW SECTION. Sec. 11. The board of directors of the public facilities district may purchase liability insurance with such limits as the directors may deem reasonable for the purpose of protecting and holding personally harmless district officers and employees against liability for personal or bodily injuries and property damage arising from their acts or omissions while performing or in good faith purporting to perform their official duties.

NEW SECTION. Sec. 12. Whenever an action, claim, or proceeding is instituted against a person who is or was an officer or employee of the public facilities district arising out of the performance of duties for or employment with the district, the public facilities district may grant a request by the person that the attorney of the district's choosing be authorized to defend the claim, suit, or proceeding, and the costs of defense, attorneys' fees, and obligation for payments arising from the action may be paid from the district's funds. Costs of defense or judgment or settlement against the person shall not be paid in a case where the court has found that the person was not acting in good faith or within the scope of employment with or duties for the public facilities district.

NEW SECTION. Sec. 13. The board of directors of the public facilities district shall have authority to authorize the expenditure of funds for the public purposes of preparing and distributing information to the general public and promoting, advertising, improving, developing, operating, and maintaining facilities of the district. Nothing contained in this section may be construed to authorize preparation and distribution of information to the general public for the purpose of influencing the outcome of a district election.

NEW SECTION. Sec. 14. The public facilities district shall have authority to create and fill positions, fix wages, salaries, and bonds therefor, pay costs involved in securing or arranging to secure employees, and establish benefits for employees, including holiday pay, vacations or vacation pay, retirement benefits, medical, life, accident, or health disability insurance, as approved by the board. Public facilities district board members, at their own expense, shall be entitled to medical, life, accident, or health disability insurance. Insurance for employees and board members shall not be considered compensation. District coverage for the board is not to exceed that provided public facilities district employees.

NEW SECTION. Sec. 15. The public facilities district may secure services by means of an agreement with a service provider. The public facilities district shall publish notice, establish criteria, receive and evaluate proposals, and negotiate with respondents under requirements set forth by district resolution.

NEW SECTION. Sec. 16. In addition to provisions contained in chapter 39.04 RCW, the public facilities district is authorized to follow procedures contained in RCW 43.19.1906 and 43.19.1911 for all purchases, contracts for purchase, and sales.

NEW SECTION. Sec. 17. (1) A public facilities district may issue revenue bonds to fund revenue generating facilities, or portions of facilities, which it is authorized to provide or operate. Whenever revenue bonds are to be issued, the board of directors of the district shall create or have created a special fund or funds from which, along with any reserves created pursuant to RCW 39.44.140, the principal and interest on such revenue bonds shall exclusively be payable. The board may obligate the district to set aside and pay into the special fund or funds a fixed proportion or a fixed amount of the revenues from the public improvements, projects, or facilities, and all related additions, that are funded by the revenue bonds. This amount or proportion shall be a lien and charge against these revenues, subject only to operating and maintenance expenses. The board shall have due regard for the cost of operation and maintenance of the public improvements, projects, or facilities, or additions, that are funded by the revenue bonds, and shall not set aside into the special fund or funds a greater amount or proportion of the revenues that in its judgment will be available over and above the cost of maintenance and operation and the amount or proportion, if any, of the revenue so previously pledged. The board may also provide that revenue bonds payable out of the same source or sources of revenue may later be issued on a parity with any revenue bonds being issued and sold.

(2) Revenue bonds issued pursuant to this section shall not be an indebtedness of the district issuing the bonds, and the interest and principal on the bonds shall only be payable from the revenues lawfully pledged to meet the principal and interest requirements and any reserves created pursuant to RCW 39.44.140. The owner or bearer of a revenue bond or any interest coupon issued pursuant to this section shall not have any claim against the district arising from the bond or coupon except for payment from the revenues lawfully pledged to meet the principal and interest requirements and any reserves created pursuant to RCW 39.44.140. The substance of the limitations included in this subsection shall be plainly printed, written, or engraved on each bond issued pursuant to this section.

(3) Revenue bonds with a maturity in excess of thirty years shall not be issued. The board of directors of the district shall by resolution determine for each revenue bond issue the amount, date, form, terms, conditions, denominations, maximum fixed or variable interest rate or rates, maturity or maturities, redemption rights, registration privileges, manner of execution, manner of sale, callable provisions, if any, and covenants including the refunding of existing revenue bonds. Facsimile signatures may be used on the bonds and any coupons. Refunding revenue bonds may be issued in the same manner as revenue bonds are issued.

NEW SECTION. Sec. 18. A new section is added to chapter 43.21C RCW to read as follows:

The construction of a new major league baseball stadium that is located in a county with a population of one million or more is exempted from compliance with this chapter.

NEW SECTION. Sec. 19. A new section is added to chapter 67.28 RCW to read as follows:

The legislative authority of a county with a population of one million or more may by resolution or ordinance impose a sales and use tax upon retail car rentals within the county that are taxable by the state under chapters 82.08 and 82.12 RCW. The rate of tax shall be two percent of the selling price in the case of a sales tax or rental value of the vehicle in the case of a use tax. Any seller, as defined in RCW 82.08.010, who is required to collect any tax under this section for any county shall pay over such tax to the county as provided in RCW 67.28.200 and such tax shall be deducted from the amount of tax such seller would otherwise be required to collect and pay over to the department of revenue under RCW 82.14.030 and 82.14.049. All taxes levied and collected under this section shall be deposited into the baseball stadium account created in section 22 of this act.

NEW SECTION. Sec. 20. A new section is added to chapter 82.14 RCW to read as follows:

The legislative authority of a county with a population of one million may by resolution or ordinance impose a sales tax upon sales of food, beverages, souvenirs, scorecards, and programs at sport events within the county. The rate of tax shall be five percent of the selling price. Any seller, as defined in RCW 82.08.010, who is required to collect any tax under this section for any county shall pay over such tax to the county as provided in RCW 67.28.200 and such tax shall be deducted from the amount of tax such seller would otherwise be required to collect and pay over to the department of revenue under RCW 82.08.020. All taxes levied and collected under this section shall be deposited into the baseball stadium account created in section 22 of this act.

NEW SECTION. Sec. 21. A new section is added to chapter 82.04 RCW to read as follows:

In computing tax there may be deducted from the measure of tax by those engaged in banking, loan, security, or other financial businesses, amounts derived from interest received on loans for the siting, acquisition, or construction of a major league baseball stadium in a county with a population of one million or more.

NEW SECTION. Sec. 22. A new section is added to chapter 67.28 RCW to read as follows:

The baseball stadium account is created in the state treasury. The account shall include revenue from the sources established by sections 19 and 20 of this act, appropriations by the legislature, private contributions, and all other sources. Expenditures from the fund may be used only for the purpose of paying all or part of the cost of the siting, acquisition, and construction of a major league baseball stadium by a county with a population of one million or more. To be eligible to receive disbursements from the fund, a county must evidence intent to build a stadium through the adoption of a resolution and must establish that it is obligated and committed to the project. Only the director of revenue or the director's designee may authorize expenditures from the account. The account is subject to allotment procedures under chapter 43.88 RCW, but no appropriation is required for expenditures.

NEW SECTION. Sec. 23. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Applicant" means a person applying for a tax deferral under this chapter.

(2) "Certificate holder" means an applicant to whom a tax deferral certificate has been issued.

(3) "Department" means the department of revenue.

(4) "Initiation of construction" means that date upon which on-site construction commences.

(5) "Investment project" means construction of buildings, site preparation, and the acquisition of related machinery and equipment when the buildings, machinery, and equipment are to be used in the siting, acquisition, and construction of a major league baseball stadium, including services and labor rendered and tangible personal property consumed.

(6) "Machinery and equipment" means all fixtures, equipment, and support facilities that are an integral and necessary part of a major league baseball stadium.

(7) "Major league baseball stadium" means a site for major league baseball that is located in a county with a population of one million or more on which construction is commenced after the effective date of this act and prior to July 1, 1999.

(8) "Operationally complete" means constructed or improved to the point of being functionally useable for major league baseball.

(9) "Person" has the meaning given in RCW 82.04.030.

(10) "Recipient" means a person receiving a tax deferral under this chapter.

NEW SECTION. Sec. 24. Application for deferral of taxes under this chapter shall be made before initiation of construction of the major league baseball stadium or acquisition of machinery and equipment. The application shall be made to the department in a form and manner prescribed by the department. The application shall contain information regarding the location of the investment project, estimated or actual costs, time schedules for completion and operation, and other information required by the department. The department shall rule on the application within sixty days.

NEW SECTION. Sec. 25. (1) The department shall issue a sales and use tax deferral certificate for state and local sales and use taxes due under chapters 82.08, 82.12, and 82.14 RCW on each investment project. The use of the certificate shall be governed by rules established by the department.

(2) This section shall expire July 1, 1999.

NEW SECTION. Sec. 26. (1) The recipient shall begin paying the deferred taxes in the fifth year after the date certified by the department as the date on which the investment project is operationally complete. The first payment is due on December 31st of the fifth calendar year after such certified date, with subsequent annual payments due on December 31st of the following nine years with amounts of payment scheduled as follows:

Repayment Year % of Deferred Tax Repaid

1 10%

2 10%

3 10%

4 10%

5 10%

6 10%

7 10%

8 10%

9 10%

10 10%

(2) The department may authorize an accelerated repayment schedule upon request of the recipient.

(3) Interest shall not be charged on any taxes deferred under this chapter for the period of deferral, although all other penalties and interest applicable to delinquent excise taxes may be assessed and imposed for delinquent payments under this chapter. The debt for deferred taxes is not extinguished by insolvency or other failure of the recipient.

NEW SECTION. Sec. 27. Chapter 82.32 RCW applies to the administration of this chapter.

NEW SECTION. Sec. 28. Applications and any other information received by the department under this chapter is not confidential and is subject to disclosure.

NEW SECTION. Sec. 29. (1) Sections 7 through 17 of this act are each added to chapter 36.100 RCW.

(2) Sections 23 through 28 of this act shall constitute a new chapter in Title 82 RCW.

NEW SECTION. Sec. 30. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 31. 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 July 1, 1995."

ESSB 6049 - H COMM AMD

By Committee on Trade & Economic Development

On page 1, line 2 of the title, after "teams;" strike the remainder of the title and insert "amending RCW 36.100.010, 36.100.020, 36.100.030, 36.100.040, 36.100.060, and 82.14.048; adding new sections to chapter 36.100 RCW; adding a new section to chapter 43.21C RCW; adding new sections to chapter 67.28 RCW; adding a new section to chapter 82.14 RCW; adding a new section to chapter 82.04 RCW; adding a new chapter to Title 82 RCW; providing an effective date; and declaring an emergency."