S 2465

S‑2465.1 _____________________________________________

SECOND SUBSTITUTE SENATE BILL 5514

_____________________________________________

State of Washington 57th Legislature 2001 Regular Session

By Senate Committee on Ways & Means (originally sponsored by Senators Spanel, Carlson, Hale, Gardner, Rasmussen, Winsley, Regala, Costa and Fraser)

READ FIRST TIME 03/28/01.

_1 AN ACT Relating to public facilities districts; amending RCW

_2 35.57.010, 35.57.020, 36.100.030, and 82.14.390; adding new

_3 sections to chapter 35.57 RCW; and adding new sections to chapter

_4 36.100 RCW.

_5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

_6 Sec. 1. RCW 35.57.010 and 1999 c 165 s 1 are each amended to read

_7 as follows:

_8 (1) The legislative authority of any town or city located in a

_9 county with a population of less than one million may create a

10 public facilities district. The legislative authorities of any

11 contiguous group of towns or cities located in a county or

12 counties each with a population of less than one million may enter

13 an agreement under chapter 39.34 RCW for the creation and joint

14 operation of a public facilities district. The legislative

15 authority of any town or city, or any contiguous group of towns or

16 cities, located in a county with a population of less than one

17 million and the legislative authority of the county or counties in

18 which the towns or cities are located may enter into an agreement

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_1 under chapter 39.34 RCW for the creation and joint operation of a

_2 public facilities district.

_3 (2) A public facilities district shall be coextensive with the

_4 boundaries of the city or town or contiguous group of cities or

_5 towns that created the district. A public facilities district

_6 created by an agreement between a town or city, or a contiguous

_7 group of towns or cities, and the county in which they are located

_8 shall be coextensive with the boundaries of the towns or cities,

_9 and the boundaries of the county or counties as to the

10 unincorporated areas of the county or counties. The boundaries

11 shall not include incorporated towns or cities that are not

12 parties to the agreement for the creation and joint operation of

13 the district.

14 (3)(a) A public facilities district created by a single city or

15 town shall be governed by a board of directors consisting of five

16 members selected as follows: (i) Two members appointed by the

17 legislative authority of the city or town; and (ii) three members

18 appointed by legislative authority based on recommendations from

19 local organizations. The members appointed under (a)(i) of this

20 subsection, shall not be members of the legislative authority of

21 the city or town. The members appointed under (a)(ii) of this

22 subsection, shall be based on recommendations received from local

23 organizations that may include, but are not limited to the local

24 chamber of commerce, local economic development council, and local

25 labor council. The members shall serve four-year terms. Of the

26 initial members, one must be appointed for a one-year term, one

27 must be appointed for a two-year term, one must be appointed for a

28 three-year term, and the remainder must be appointed for four-year

29 terms.

30 (b) A public facilities district created by ((~~[a]~~)) a

31 contiguous group of cities and towns shall be governed by a board

32 of directors consisting of seven members selected as follows: (i)

33 Three members appointed by the legislative authorities of the

34 cities and towns; and (ii) four members appointed by the

35 legislative authority based on recommendations from local

36 organizations. The members appointed under (b)(i) of this

37 subsection shall not be members of the legislative authorities of

38 the cities and towns. The members appointed under (b)(ii) of this

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_1 subsection, shall be based on recommendations received from local

_2 organizations that include, but are not limited to the local

_3 chamber of commerce, local economic development council, local

_4 labor council, and a neighborhood organization that is directly

_5 affected by the location of the regional center in their area. The

_6 members of the board of directors shall be appointed in accordance

_7 with the terms of the agreement under chapter 39.34 RCW for the

_8 joint operation of the district and shall serve four-year terms. Of

_9 the initial members, one must be appointed for a one- year term,

10 one must be appointed for a two-year term, one must be appointed

11 for a three-year term, and the remainder must be appointed for

12 four-year terms.

13 (c) A public facilities district created by a town or city, or

14 a contiguous group of towns or cities, and the county or counties

15 in which they are located shall be governed by a board of

16 directors consisting of seven members selected as follows: (i)

17 Three members appointed by the legislative authorities of the

18 cities, towns, and county; and (ii) four members appointed by the

19 legislative authority based on recommendations from local

20 organizations. The members appointed under (c)(i) of this

21 subsection shall not be members of the legislative authorities of

22 the cities, towns, or county. The members appointed under (c)(ii)

23 of this subsection shall be based on recommendations received from

24 local organizations that include, but are not limited to, the

25 local chamber of commerce, local economic development council,

26 local labor council, and a neighborhood organization that is

27 directly affected by the location of the regional center in their

28 area. The members of the board of directors shall be appointed in

29 accordance with the terms of the agreement under chapter 39.34 RCW

30 for the joint operation of the district and shall serve four-year

31 terms. Of the initial members, one must be appointed for a one-year

32 term, one must be appointed for a two-year term, one must be

33 appointed for a three-year term, and the remainder must be

34 appointed for four-year terms.

35 (4) A public facilities district is a municipal corporation, an

36 independent taxing "authority" within the meaning of Article VII,

37 section 1 of the state Constitution, and a "taxing district"

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_1 within the meaning of Article VII, section 2 of the state

_2 Constitution.

_3 (5) A public facilities district shall constitute a body

_4 corporate and shall possess all the usual powers of a corporation

_5 for public purposes as well as all other powers that may now or

_6 hereafter be specifically conferred by statute, including, but not

_7 limited to, the authority to hire employees, staff, and services,

_8 to enter into contracts, and to sue and be sued.

_9 (6) A public facilities district may acquire and transfer real

10 and personal property by lease, sublease, purchase, or sale. No

11 direct or collateral attack on any ((~~metropolitan~~)) public

12 facilities district purported to be authorized or created in

13 conformance with this chapter may be commenced more than thirty

14 days after creation by the city and/or county legislative

15 authority.

16 Sec. 2. RCW 35.57.020 and 1999 c 165 s 2 are each amended to read

17 as follows:

18 (1) A public facilities district is authorized to acquire,

19 construct, own, remodel, maintain, equip, reequip, repair,

20 finance, and operate one or more regional centers. For purposes of

21 this chapter, "regional center" means a convention, conference, or

22 special events center, or any combination of facilities, and

23 related parking facilities, serving a regional population

24 constructed, improved, or rehabilitated after July 25, 1999, at a

25 cost of at least ten million dollars, including debt service. A

26 "special events center" is a facility or combination of

27 facilities, the primary purpose of which is the presentation of

28 events, activities, performances, or exhibits for the enjoyment of

29 the general public. "Regional center" also includes an existing

30 convention, conference, or special events center, and related

31 parking facilities, serving a regional population, that is

32 improved or rehabilitated after July 25, 1999, where the costs of

33 improvement or rehabilitation are at least ten million dollars,

34 including debt service. A regional center is conclusively presumed

35 to serve a regional population if state and local government

36 investment in the construction, improvement, or rehabilitation of

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_1 the regional center is equal to or greater than ten million

_2 dollars.

_3 (2) A public facilities district created under RCW 36.100.010

_4 and a public facilities district created under RCW 35.57.010

_5 located in the same county may enter into agreements under chapter

_6 39.34 RCW to jointly acquire, construct, own, remodel, maintain,

_7 equip, reequip, repair, finance, and operate one or more regional

_8 centers.

_9 (3) A public facilities district may impose charges and fees

10 for the use of its facilities, and may accept and expend or use

11 gifts, grants, and donations for the purpose of a regional center.

12 ((~~(3)~~)) (4) A public facilities district may impose charges,

13 fees, and taxes authorized in RCW 35.57.040, and use revenues

14 derived therefrom for the purpose of paying principal and interest

15 payments on bonds issued by the public facilities district to

16 construct a regional center.

17 ((~~(4)~~)) (5) Notwithstanding the establishment of a career,

18 civil, or merit service system, a public facilities district may

19 contract with a public or private entity for the operation or

20 management of its public facilities.

21 ((~~(5)~~)) (6) A public facilities district is authorized to use

22 the supplemental alternative public works contracting procedures

23 set forth in chapter 39.10 RCW in connection with the design,

24 construction, reconstruction, remodel, or alteration of any

25 regional center.

26 Sec. 3. RCW 36.100.030 and 1999 c 165 s 16 are each amended to

27 read as follows:

28 (1) A public facilities district is authorized to acquire,

29 construct, own, remodel, maintain, equip, reequip, repair, and

30 operate sports facilities, entertainment facilities, convention

31 facilities, or regional centers as defined in RCW 35.57.020,

32 together with contiguous parking facilities. The taxes that are

33 provided for in this chapter may only be imposed for these

34 purposes.

35 (2) A public facilities district created under RCW 36.100.010

36 and a public facilities district created under RCW 35.57.010

37 located in the same county may enter into agreements under chapter

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_1 39.34 RCW to jointly acquire, construct, own, remodel, maintain,

_2 equip, reequip, repair, finance, and operate one or more regional

_3 centers.

_4 (3) A public facilities district may enter into agreements

_5 under chapter 39.34 RCW for the joint provision and operation of

_6 such facilities and may enter into contracts under chapter 39.34

_7 RCW where any party to the contract provides and operates such

_8 facilities for the other party or parties to the contract.

_9 ((~~(3)~~)) (4) Notwithstanding the establishment of a career,

10 civil, or merit service system, a public ((~~facility [facilities]~~))

11 facilities district may contract with a public or private entity

12 for the operation or management of its public facilities.

13 ((~~(4)~~)) (5) A public facilities district is authorized to use

14 the supplemental alternative public works contracting procedures

15 set forth in chapter 39.10 RCW in connection with the design,

16 construction, reconstruction, remodel, or alteration of any of its

17 public facilities.

18 ((~~(5)~~)) (6) A public facilities district may impose charges and

19 fees for the use of its facilities, and may accept and expend or

20 use gifts, grants, and donations.

21 Sec. 4. RCW 82.14.390 and 1999 c 165 s 13 are each amended to read

22 as follows:

23 (1) Except as provided in subsection (6) of this section, the

24 governing body of a public facilities district created under

25 chapter 35.57 or 36.100 RCW that commences construction of a new

26 regional center, or improvement or rehabilitation of an existing

27 new regional center, before January 1, 2003, or of a public

28 facility district that contains a city with a population greater

29 than fifty thousand before January 1, 2004, may impose a sales and

30 use tax in accordance with the terms of this chapter. The tax is in

31 addition to other taxes authorized by law and shall be collected

32 from those persons who are taxable by the state under chapters

33 82.08 and 82.12 RCW upon the occurrence of any taxable event

34 within the public facilities district. The rate of tax shall not

35 exceed 0.033 percent of the selling price in the case of a sales

36 tax or value of the article used in the case of a use tax.

37 (2) The tax imposed under subsection (1) of this section shall

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_1 be deducted from the amount of tax otherwise required to be

_2 collected or paid over to the department of revenue under chapter

_3 82.08 or 82.12 RCW. The department of revenue shall perform the

_4 collection of such taxes on behalf of the county at no cost to the

_5 public facilities district.

_6 (3) No tax may be collected under this section before August 1,

_7 2000. The tax imposed in this section shall expire when the bonds

_8 issued for the construction of the regional center and related

_9 parking facilities are retired, but not more than twenty-five

10 years after the tax is first collected.

11 (4) Moneys collected under this section shall only be used for

12 the purposes set forth in RCW 35.57.020 and must be matched with

13 an amount from other public or private sources equal to thirty-

14 three percent of the amount collected under this section, provided

15 that amounts generated from nonvoter approved taxes authorized

16 under chapter 35.57 RCW or nonvoter approved taxes authorized

17 under chapter 36.100 RCW shall not constitute a public or private

18 source. For the purpose of this section, public or private sources

19 includes, but is not limited to cash or in-kind contributions used

20 in all phases of the development or improvement of the regional

21 center, land that is donated and used for the siting of the

22 regional center, cash or in-kind contributions from public or

23 private foundations, or amounts attributed to private sector

24 partners as part of a public and private partnership agreement

25 negotiated by the public facilities district.

26 (5) The combined total tax levied under this section shall not

27 be greater than 0.033 percent. If both a public facilities district

28 created under chapter 35.57 RCW and a public facilities district

29 created under chapter 36.100 RCW impose a tax under this section,

30 the tax imposed by a public facilities district created under

31 chapter 35.57 RCW shall be credited against the tax imposed by a

32 public facilities district created under chapter 36.100 RCW.

33 (6) A public facilities district created under chapter 36.100

34 RCW is not eligible to impose the tax under this section if the

35 legislative authority of the county where the public facilities

36 district is located has imposed a sales and use tax under RCW

37 82.14.0485 or 82.14.0494.

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_1 NEW SECTION. Sec. 5. A new section is added to chapter 35.57

_2 RCW to read as follows:

_3 A public facilities district established in accordance with

_4 this chapter will be dissolved and its affairs liquidated by

_5 either of the following methods:

_6 (1) When directed by a majority of persons in the district

_7 voting on the question. An election placing the question before the

_8 voters may be called in the following manner:

_9 (a) By resolution of the public facilities district governing

10 authority;

11 (b) By resolution of the county legislative body or bodies with

12 the concurrence by resolution of the city council of a component

13 city; or

14 (c) By petition calling for an election signed by at least ten

15 percent of the qualified voters residing within the public

16 facilities district filed with the auditor of the county where the

17 largest portion of the district is located. The auditor will

18 examine and certify the sufficiency of the signatures, however,

19 the signatures must have been collected within a ninety-day period

20 as designated by the petition sponsors.

21 With dissolution of the public facilities district, any

22 outstanding obligations and bonded indebtedness of the district

23 will be satisfied or allocated by mutual agreement to the county

24 or counties and component cities of the district.

25 (2) By submission of a petition signed by at least two-thirds

26 of the legislative bodies who have representatives on the public

27 facilities district governing body for an order of dissolution to

28 the superior court of a county of the district. All of the

29 signatures must have been collected within one hundred twenty days

30 of the date of submission to the court. The procedures for

31 dissolution provided in RCW 53.48.030 through 53.48.120 apply,

32 except that the balance of any assets, after payment of all costs

33 and expenses, will be divided among the county or counties and

34 component cities of the district on a per capita basis. Any duties

35 to be performed by a county official pursuant to RCW 53.48.030

36 through 53.48.120 will be performed by the relevant official of

37 the county in which the petition for dissolution is filed.

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_1 NEW SECTION. Sec. 6. A new section is added to chapter 36.100