"Sec. 1   RCW 35.21.735 and 1995 c 212 s 2 are each amended to read as follows:
     (1) The legislature hereby declares that carrying out the purposes of federal grants or programs is both a public purpose and an appropriate function for a city, town, county, or public corporation. The provisions of RCW 35.21.730 through 35.21.755 and RCW 35.21.660 and 35.21.670 and the enabling authority herein conferred to implement these provisions shall be construed to accomplish the purposes of RCW 35.21.730 through 35.21.755.
     (2) All cities, towns, counties, and public corporations shall have the power and authority to enter into agreements with the United States or any agency or department thereof, or any agency of the state government or its political subdivisions, and pursuant to such agreements may receive and expend, or cause to be received and expended by a custodian or trustee, federal or private funds for any lawful public purpose. Pursuant to any such agreement, a city, town, county, or public corporation may issue bonds, notes, or other evidences of indebtedness that are guaranteed or otherwise secured by funds or other instruments provided by or through the federal government or by the federal government or an agency or instrumentality thereof under section 108 of the housing and community development act of 1974 (42 U.S.C. Sec. 5308), as amended, or its successor, and may agree to repay and reimburse for any liability thereon any guarantor of any such bonds, notes, or other evidences of indebtedness issued by such jurisdiction or public corporation, or issued by any other public entity. For purposes of this subsection, federal housing mortgage insurance shall not constitute a federal guarantee or security.
     (3) A city, town, county, or public corporation may pledge, as security for any such bonds, notes, or other evidences of indebtedness or for its obligations to repay or reimburse any guarantor thereof, its right, title, and interest in and to any or all of the following: (a) Any federal grants or payments received or that may be received in the future; (b) any of the following that may be obtained directly or indirectly from the use of any federal or private funds received as authorized in this section: (i) Property and interests therein, and (ii) revenues; (c) any payments received or owing from any person resulting from the lending of any federal or private funds received as authorized in this section; (d) any proceeds under (a), (b), or (c) of this subsection and any securities or investments in which (a), (b), or (c) of this subsection or proceeds thereof may be invested; (e) any interest or other earnings on (a), (b), (c), or (d) of this subsection.
     (4) A city, town, county, or public corporation may establish one or more special funds relating to any or all of the sources listed in subsection (3)(a) through (e) of this section and pay or cause to be paid from such fund the principal, interest, premium if any, and other amounts payable on any bonds, notes, or other evidences of indebtedness authorized under this section, and pay or cause to be paid any amounts owing on any obligations for repayment or reimbursement of guarantors of any such bonds, notes, or other evidences of indebtedness. A city, town, county, or public corporation may contract with a financial institution either to act as trustee or custodian to receive, administer, and expend any federal or private funds, or to collect, administer, and make payments from any special fund as authorized under this section, or both, and to perform other duties and functions in connection with the transactions authorized under this section. If the bonds, notes, or other evidences of indebtedness and related agreements comply with subsection (6) of this section, then any such funds held by any such trustee or custodian, or by a public corporation, shall not constitute public moneys or funds of any city, town, or county and at all times shall be kept segregated and set apart from other funds.
     (5) For purposes of this section, "lawful public purpose" includes, without limitation, any use of funds, including loans thereof to public or private parties, authorized by the agreements with the United States or any department or agency thereof under which federal or private funds are obtained, or authorized under the federal laws and regulations pertinent to such agreements.
     (6) If any such federal or private funds are loaned or granted to any private party or used to guarantee any obligations of any private party, then any bonds, notes, other evidences of indebtedness issued or entered into for the purpose of receiving or causing the receipt of such federal or private funds, and any agreements to repay or reimburse guarantors, shall not be obligations of any city, town, or county and shall be payable only from a special fund as authorized in this section or from any of the security pledged pursuant to the authority of this section, or both. Any bonds, notes, or other evidences of indebtedness to which this subsection applies shall contain a recital to the effect that they are not obligations of the city, town, or county or the state of Washington and that neither the faith and credit nor the taxing power of the state or any municipal corporation or subdivision of the state or any agency of any of the foregoing, is pledged to the payment of principal, interest, or premium, if any, thereon. Any bonds, notes, other evidences of indebtedness, or other obligations to which this subsection applies shall not be included in any computation for purposes of limitations on indebtedness. To the extent expressly agreed in writing by a city, town, county, or public corporation, this subsection shall not apply to bonds, notes, or other evidences of indebtedness issued for, or obligations incurred for, the necessary support of the poor and infirm by that city, town, county, or public corporation.
     (7) Any bonds, notes, or other evidences of indebtedness issued by, or reimbursement obligations incurred by, a city, town, county, or public corporation consistent with the provisions of this section but prior to May 3, 1995, and any loans or pledges made by a city, town, or county in connection therewith substantially consistent with the provisions of this section but prior to May 3, 1995, are deemed authorized and shall not be held void, voidable, or invalid due to any lack of authority under the laws of this state.
     (8) All cities, towns, counties, public corporations, and port districts may create partnerships and limited liability companies and enter into agreements with public or private entities, including community preservation and development authorities as authorized under sections 3 through 10 of this act, and including partnership agreements and limited liability company agreements, to implement within their boundaries the federal new markets tax credit program established by the community renewal tax relief act of 2000 (26 U.S.C. Sec. 45D) or its successor statute.

NEW SECTION.  Sec. 2   The authority granted by RCW 35.21.735 is additional and supplemental to any other authority of any city, town, county, public corporation, or port district. This act may not be construed to imply that any of the power or authority granted in this act was not available to any city, town, county, public corporation, or port district under prior law. Any previous actions consistent with this act are ratified and confirmed.

NEW SECTION.  Sec. 3   (1) Major public facilities, public works, and capital projects with significant public funding generally aim to accrue broad benefits to the people of Washington. However, sometimes the interest of the stakeholder community that bears the disproportionate cost of the broad public benefit by absorbing a deleterious impact upon itself is overlooked or inadequately addressed. These impacts may include dislocation, displacement, and the overall disintegration of an identifiable existing community and its historical and cultural character. The legislature finds that the preservation and restoration of the character of such a community, and the community's historical and cultural character, are important public policy goals that can be achieved through the creation of community preservation and development authorities.
     (2) Community preservation and development authorities are hereby created to restore or enhance the health, safety, and economic well-being of communities adversely impacted by the construction of, or ongoing operation of, multiple major public facilities, public works, and capital projects with significant public funding.
     (3) Community preservation and development authorities have the following purposes:
     (a) To revitalize, enhance, and preserve the unique character of impacted communities;
     (b) To mitigate the adverse effects of multiple major public facilities projects, public works projects, or capital projects with significant public funding, or a secure community transition facility as defined in RCW 71.09.020(14);
     (c) To restore a local area's sense of community;
     (d) To reduce the displacement of community members and businesses;
     (e) To stimulate the community's economic vitality;
     (f) To enhance public service provisions;
     (g) To improve the standard of living of community members; and
     (h) To preserve historic buildings or areas by returning them to economically productive uses that are compatible with or enhance their historic character.

NEW SECTION.  Sec. 4   The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Community" means a group of people who reside or work in the geographic area established by the community preservation and development authority board or the proposal to create the authority and who currently or historically share a distinct cultural identity or local history.
     (2) "Community preservation and development authority" or "authority" means an authority created by members of an impacted community.
     (3) "Constituency" means the general membership of the community preservation and development authority, which membership shall be open to all persons eighteen years of age and over who are residents, property owners, employees, or business persons within the geographic boundaries established by the authority or the proposal to create the authority.
     (4) "Impacted community" means a community that has been adversely impacted by the construction of, or ongoing operation of, multiple major public facilities, public works, and capital projects with significant public funding.
     (5) "Major public facilities project, public works project, or capital project with significant public funding" means any capital project whose total cost exceeds ten million dollars. On July 1, 2009, and on July 1st of each odd-numbered year thereafter, the capital project cost threshold shall be adjusted by the capital project cost adjustment factor for inflation established by the office of financial management.

NEW SECTION.  Sec. 5   (1) The residents, property owners, employees, or business owners of an impacted community may propose formation of a community preservation and development authority to the state legislative delegation representing the area in which the community is located. The proposal to form a community preservation and development authority must be presented in writing to the appropriate legislative committee in both the house of representatives and the senate. The proposal must contain proposed general geographic boundaries that will be used to define the community for the purposes of the authority. Proposals presented after January 1, 2008, must identify in its proposal one or more stable revenue sources that (a) have a nexus with the multiple publicly funded facilities that have adversely impacted the community, and (b) can be used to support future operating or capital projects that will be identified in the strategic plan required under section 7 of this act.
     (2) Formation of the community preservation and development authority is subject to legislative authorization by statute. The legislature must find that (a) the area within the proposal's geographic boundaries meets the definition of "impacted community" contained in section 4(4) of this act and (b) those persons that have brought forth the proposal are members of the community as defined in section 4(1) of this act and, if the authority were approved, would meet the definition of constituency contained in section 4(3) of this act. For proposals brought after January 1, 2008, the legislature must also find that the community has identified one or more stable revenue sources as required in subsection (1) of this section. The legislature may then act to authorize the establishment of the community preservation and development authority in law.
     (3) The affairs of a community preservation and development authority shall be managed by a board of directors, consisting of the following members:
     (a) Two members who own, operate, or represent businesses within the community;
     (b) Two members who are involved in providing nonprofit community or social services within the community;
     (c) Two members who are involved in the arts and entertainment within the community;
     (d) Two members with knowledge of the community's culture and history; and
     (e) One member who is involved in a nonprofit or public planning organization that directly serves the impacted community.
     (4) No member of the board shall hold office for more than four years. Board positions shall be numbered one through nine, and the terms staggered as follows:
     (a) Board members elected to positions one through five shall serve two-year terms, and if reelected, may serve no more than one additional two-year term.
     (b) Board members initially elected to positions six through nine shall serve a three-year term only.
     (c) Board members elected to positions six through nine after the initial three-year term shall serve two-year terms, and if reelected, may serve no more than one additional two-year term.
     (5) With respect to an authority's initial board of directors: The state legislative delegation and those proposing formation of the authority shall jointly establish a committee to develop a list of candidates to stand for election once the authority has received legislative approval as established in subsection (2) of this section. For the purpose of developing the list and identifying those persons who meet the criteria in subsection (3)(a) through (e) of this section, community shall mean the proposed geographic boundaries as set out in the proposal. The board of directors shall be elected by the constituency during a meeting convened for that purpose by the state legislative delegation.
     (6) With respect to subsequent elections of an authority's board of directors: A list of candidates shall be developed by the authority's existing board of directors and the election shall be held during the annual local town hall meeting as required in section 7 of this act.

NEW SECTION.  Sec. 6   (1) A community preservation and development authority shall have the power to:
     (a) Accept gifts, grants, loans, or other aid from public or private entities;
     (b) Contract and enter into partnerships with individuals, associations, corporations, and local, state, and federal governments;
     (c) Buy, own, lease, and sell real and personal property;
     (d) Hold in trust, improve, and develop land;
     (e) Invest, deposit, and reinvest its funds;
     (f) Incur debt in furtherance of its mission;
     (g) Lend its funds, property, credit, or services for corporate purposes; and
     (h) Exercise such additional powers as may be authorized by law.
     (2) A community preservation and development authority shall have no power of eminent domain nor any power to levy taxes or special assessments.

NEW SECTION.  Sec. 7   A community preservation and development authority shall have the duty to:
     (1) Establish specific geographic boundaries for the authority within its bylaws based on the general geographic boundaries established in the proposal submitted and approved by the legislature;
     (2) Solicit input from members of its community and develop a strategic preservation and development plan to promote the health, safety, and economic well-being of the impacted community and to preserve its cultural and historical identity;
     (3) Include within the strategic plan a prioritized list of projects identified and supported by the community, including capital or operating components that address one or more of the purposes under section 3(3) of this act;
     (4) Establish funding mechanisms to support projects and programs identified in the strategic plan including but not limited to grants and loans;
     (5) Use gifts, grants, loans, and other aid from public or private entities to contract and enter into partnerships with individuals, associations, corporations, and local, state, and federal governments to carry out projects identified in the strategic plan. Projects may include but are not limited to those that: (a) Enhance public safety; (b) reduce community blight; (c) provide ongoing mitigation of the adverse effects of multiple publicly funded projects on the impacted community; and (d) address other purposes identified in section 3(3) of this act; and
     (6) Demonstrate ongoing accountability for its actions by:
     (a) Reporting to the appropriate committees of the legislature, one year after formation and every biennium thereafter, on the authority's strategic plan, activities, accomplishments, and any recommendations for statutory changes;
     (b) Reporting any changes in the authority's geographic boundaries to the appropriate committees of the legislature when the legislature next convenes in regular session;
     (c) Convening a local town hall meeting with its constituency on an annual basis to: (i) Report its activities and accomplishments from the previous year; (ii) present and receive input from members of the impacted community regarding its proposed strategic plan and activities for the upcoming year; and (iii) hold board member elections as necessary; and
     (d) Maintaining books and records as appropriate for the conduct of its affairs.

NEW SECTION.  Sec. 8   The legislature finds that the Pioneer Square-International District within the city of Seattle meets the requirements contained in section 5(2) of this act, and that formation of a community preservation and development authority has been proposed to the appropriate state legislative delegation as authorized in section 5(1) of this act. Therefore, the legislature authorizes the establishment of the Pioneer Square-International District community preservation and development authority.

NEW SECTION.  Sec. 9   The community preservation and development authority account is created in the state treasury. The account is composed of two subaccounts, one for moneys to be appropriated for operating purposes, and the other for moneys to be appropriated for capital purposes. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used only for projects under this chapter.

NEW SECTION.  Sec. 10   Prior to making siting, design, and construction decisions for future major public facilities, public works projects, or capital projects with significant public funding, state and local government agencies shall to the extent possible:
     (1) Communicate and consult with the community preservation and development authority and impacted community, including assessing the compatibility of the proposed project with the strategic plan adopted by the authority; and
     (2) Make reasonable efforts to ensure that negative, cumulative effects of multiple projects upon the impacted community are minimized.

NEW SECTION.  Sec. 11   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. 12   Sections 3 through 10 of this act constitute a new chapter in Title 43 RCW."