CERTIFICATION OF ENROLLMENT

SUBSTITUTE HOUSE BILL 2759

Chapter 35, Laws of 2006

59th Legislature
2006 Regular Session



REAL PROPERTY TRANSFERS--PUBLIC BODIES--NONPROFIT CORPORATIONS



EFFECTIVE DATE: 6/7/06

Passed by the House February 13, 2006
  Yeas 96   Nays 2

FRANK CHOPP
________________________________________    
Speaker of the House of Representatives


Passed by the Senate February 28, 2006
  Yeas 49   Nays 0


BRAD OWEN
________________________________________    
President of the Senate
 
CERTIFICATE

I, Richard Nafziger, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is SUBSTITUTE HOUSE BILL 2759 as passed by the House of Representatives and the Senate on the dates hereon set forth.


RICHARD NAFZIGER
________________________________________    
Chief Clerk
Approved March 14, 2006.








CHRISTINE GREGOIRE
________________________________________    
Governor of the State of Washington
 
FILED
March 14, 2006 - 2:53 p.m.







Secretary of State
State of Washington


_____________________________________________ 

SUBSTITUTE HOUSE BILL 2759
_____________________________________________

Passed Legislature - 2006 Regular Session
State of Washington59th Legislature2006 Regular Session

By House Committee on Capital Budget (originally sponsored by Representatives Ericks, Pearson, Dunshee, Sells, Roberts and Rodne)

READ FIRST TIME 01/30/06.   



     AN ACT Relating to the transfer of certain real property and facilities acquired, constructed, or improved using Referendum 29 or 37 bonds; adding a new section to chapter 43.99C RCW; adding a new section to chapter 43.83D RCW; adding a new section to chapter 36.34 RCW; adding a new section to chapter 43.19 RCW; adding a new section to chapter 28A.335 RCW; adding a new section to chapter 39.33 RCW; adding a new section to chapter 35.82 RCW; adding a new section to chapter 70.44 RCW; adding a new section to chapter 35.21 RCW; adding a new section to chapter 35A.79 RCW; and creating a new section.

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

NEW SECTION.  Sec. 1   The legislature finds that protecting the public health, safety, and welfare by providing services to needy or vulnerable persons is a fundamental purpose of government. The legislature further finds that private nonprofit corporations fill an important public purpose in providing these types of health, safety, and welfare services to our state's residents. Acting through partnerships with governmental entities, these private sector providers are able to increase the amount and quality of these services available to state residents. The legislature finds that ensuring continued provision of these services in the private sector confers a valuable benefit on the public that constitutes consideration for transfer of certain public property and facilities to eligible private nonprofit corporations, subject to restrictions that provide continued protection of the public interest.

NEW SECTION.  Sec. 2   A new section is added to chapter 43.99C RCW to read as follows:
     (1) Public bodies, as defined in RCW 43.99C.020, may transfer without further consideration real property and facilities acquired, constructed, or otherwise improved under this chapter to nonprofit corporations organized to provide services for individuals with physical or mental disabilities, in exchange for the promise to continually operate services benefiting the public on the site, subject to all the conditions in this section. For purposes of this section, "transfer" may include lease renewals. The nonprofit corporation shall use the real property and facilities for the purpose of providing the following limited programs as designated by the department of social and health services: Nonprofit community centers, close-to-home living units, employment and independent living training centers, vocational rehabilitation centers, developmental disabilities training centers, and community homes for individuals with mental illness.
     (2) The deed transferring the property in subsection (1) of this section must provide for immediate reversion back to the public body if the nonprofit corporation ceases to use the property for the purposes described in subsection (1) of this section.
     (3) The nonprofit corporation is authorized to sell the property transferred to it pursuant to subsection (1) of this section only if all of the following conditions are satisfied: (a) Any such sale must have the prior written approval by the department of social and health services; (b) all proceeds from such a sale must be applied to the purchase price of a different property or properties of equal or greater value than the original property; (c) any new property or properties must be used for the purposes stated in subsection (1) of this section; (d) the new property or properties must be available for use within one year of sale; and (e) the nonprofit corporation must enter into an agreement with the public entity to reimburse the public entity for the value of the original property at the time of the sale if the nonprofit corporation ceases to use the new property for the purposes described in subsection (1) of this section.
     (4) If the nonprofit corporation ceases to use the property for the purposes described in subsection (1) of this section, the property and facilities revert immediately to the public body. The public body shall then determine if the property, or the reimbursed amount in the case of a reimbursement under subsection (3)(e) of this section, may be used by another program as designated by the department of social and health services. These programs have priority in obtaining the property to ensure that the purposes specified in this chapter are carried out.

NEW SECTION.  Sec. 3   A new section is added to chapter 43.83D RCW to read as follows:
     (1) Public bodies, as defined in RCW 43.83D.050, may transfer without further consideration real property and facilities acquired, constructed, or otherwise improved under this chapter to nonprofit corporations organized to provide individuals with social and health services, in exchange for the promise to continually operate services benefiting the public on the site, subject to all the conditions in this section. For purposes of this section, "transfer" may include lease renewals. The nonprofit corporation shall use the real property and facilities for the purpose of providing the following programs as designated by the department of social and health services: Facilities for social services, adult and juvenile correction or detention, child welfare, day care, drug abuse and alcoholism treatment, mental health, public health, developmental disabilities, and vocational rehabilitation.
     (2) The deed transferring the property in subsection (1) of this section must provide for immediate reversion back to the public body if the nonprofit corporation ceases to use the property for the purposes described in subsection (1) of this section.
     (3) The nonprofit corporation is authorized to sell the property transferred to it pursuant to subsection (1) of this section only if all of the following conditions are satisfied: (a) Any such sale must be subject to prior written approval by the department of social and health services; (b) all proceeds from such a sale must be applied to the purchase price of a different property or properties of equal or greater value than the original property; (c) any new property or properties must be used for the purposes stated in subsection (1) of this section; (d) the new property or properties must be available for use within one year of sale; and (e) the nonprofit corporation must enter into an agreement with the public entity to reimburse the public entity for the value of the original property at the time of the sale if the nonprofit corporation ceases to use the new property for the purposes described in subsection (1) of this section.
     (4) If the nonprofit corporation ceases to use the property for the purposes described in subsection (1) of this section, the property and facilities revert immediately to the public body. The public body shall then determine if the property, or the reimbursed amount in the case of a reimbursement under subsection (3)(e) of this section, may be used by another program as designated by the department of social and health services. These programs have priority in obtaining the property to ensure that the purposes specified in this chapter are carried out.

NEW SECTION.  Sec. 4   A new section is added to chapter 36.34 RCW to read as follows:
     This chapter does not apply to transfers of property under sections 1 and 2 of this act.

NEW SECTION.  Sec. 5   A new section is added to chapter 43.19 RCW to read as follows:
     This chapter does not apply to transfers of property under sections 1 and 2 of this act.

NEW SECTION.  Sec. 6   A new section is added to chapter 28A.335 RCW to read as follows:
     This chapter does not apply to transfers of property under sections 1 and 2 of this act.

NEW SECTION.  Sec. 7   A new section is added to chapter 39.33 RCW to read as follows:
     This chapter does not apply to transfers of property under sections 1 and 2 of this act.

NEW SECTION.  Sec. 8   A new section is added to chapter 35.82 RCW to read as follows:
     This chapter does not apply to transfers of property under sections 1 and 2 of this act.

NEW SECTION.  Sec. 9   A new section is added to chapter 70.44 RCW to read as follows:
     This chapter does not apply to transfers of property under sections 1 and 2 of this act.

NEW SECTION.  Sec. 10   A new section is added to chapter 35.21 RCW to read as follows:
     Cities are authorized to transfer real property pursuant to sections 2 and 3 of this act.

NEW SECTION.  Sec. 11   A new section is added to chapter 35A.79 RCW to read as follows:
     Code cities are authorized to transfer real property pursuant to sections 2 and 3 of this act.


         Passed by the House February 13, 2006.
         Passed by the Senate February 28, 2006.
         Approved by the Governor March 14, 2006.
         Filed in Office of Secretary of State March 14, 2006.