BILL REQ. #:  H-0113.2 

Read first time 01/11/2007.   Referred to Committee on Finance.

     AN ACT Relating to establishing local public works assistance funds; amending RCW 29A.36.210, 84.52.010, and 84.52.043; and adding a new chapter to Title 36 RCW.

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

NEW SECTION.  Sec. 1   Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
     (1) "Capital facilities plan" means a capital facilities plan required under chapter 36.70A RCW.
     (2) "Local government" means cities, towns, counties, special purpose districts, and any other municipal corporations or quasi-municipal corporations in the state, excluding school districts and port districts.
     (3) "Public works project" means a project of a local government for the planning, acquisition, construction, repair, reconstruction, replacement, rehabilitation, or improvement of streets and roads, bridges, water systems, or storm and sanitary sewage systems and solid waste facilities, including recycling facilities.

NEW SECTION.  Sec. 2   (1) County legislative authorities may establish local public works assistance funds for the purpose of funding public works projects located wholly or partially within the county. Moneys may be deposited in local public works assistance funds from taxes levied under section 5 of this act or from any other lawful source.
     (2) Moneys deposited in local public works assistance funds, and interest earned on balances from the funds, may only be used:
     (a) To make loans to the county and to other local governments for funding public works projects as provided in this chapter; and
     (b) For costs incurred in the administration of funds.
     (3) No more than fifty percent of the moneys loaned from a fund in a calendar year may be loaned to the county imposing the levy under section 5 of this act. At least twenty-five percent of the moneys anticipated to be loaned from a fund in a calendar year must be made available for funding public works projects in cities or towns.
     (4) No more than one percent of the average annual balance of a county's fund, including interest earned on balances from the fund, may be used annually for administrative costs.

NEW SECTION.  Sec. 3   (1) Counties, in consultation with cities and towns within the county, may make loans to local governments from funds established under section 2 of this act for the purpose of assisting local governments in funding public works projects. Counties may require terms and conditions and may charge rates of interest on its loans as they deem necessary or convenient to carry out the purposes of this chapter. Counties may not pledge any amount greater than the sum of money in their local public works assistance fund plus money to be received from the payment of the debt service on loans made from that fund. Money received from local governments in repayment of loans made under this chapter must be paid into the fund of the lending county for uses consistent with this chapter.
     (2) Prior to receiving moneys from a fund established under section 2 of this act, a local government applying for financial assistance under this chapter must demonstrate to the lending county:
     (a) Utilization of all local revenue sources that are reasonably available for funding public works projects;
     (b) Compliance with applicable requirements of chapter 36.70A RCW; and
     (c) Consistency between the proposed project and applicable capital facilities plans.
     (3) Counties may not make loans under this chapter prior to completing the initial collaboration and prioritization requirements of section 4(1) of this act.

NEW SECTION.  Sec. 4   (1) County legislative authorities utilizing or providing money under this chapter must develop a prioritization process for funding public works projects that gives priority to projects necessary to address public health needs or substantial environmental degradation. The intent of this prioritization process is to maximize the value of public works projects accomplished with funds levied under section 5 of this act. This prioritization process must be:
     (a) Completed collaboratively with public works directors of local governments within the county;
     (b) Documented in the form of written findings produced by the county; and
     (c) Revised periodically according to a schedule developed by the county and the public works directors.
     (2) In addition to the public health and environmental degradation requirements under subsection (1) of this section, legislative authorities providing funding to other local governments under this chapter must consider, through a competitive application process, the following factors in assigning a priority to and funding a project:
     (a) Whether the local government applying for assistance has experienced severe fiscal distress resulting from natural disaster or emergency public works needs;
     (b) Whether the project is critical in nature and would affect the health and safety of a great number of citizens;
     (c) The cost of the project compared to the size of the local government and amount of loan money available;
     (d) The number of communities served by or funding the project;
     (e) Whether the project is the acquisition, expansion, improvement, or renovation by a local government of a public water system that is in violation of health and safety standards; and
     (f) Other criteria the county legislative authority deems appropriate.

NEW SECTION.  Sec. 5   (1)(a) County legislative authorities may impose additional regular property tax levies in an amount equal to fifteen cents or less per thousand dollars of the assessed value of property in the county in accordance with the terms of this section.
     (b) The sum total a county legislative authority may impose under this section may not exceed one hundred million dollars.
     (2) The tax proposition may be submitted at a general or special election.
     (3) The tax may be imposed for each year for six consecutive years or permanently, but either imposition must be specifically authorized by the registered voters voting on the proposition in accordance with the following:
     (a) If the number of registered voters voting on the proposition is equal to or less than forty percent of the total number of voters voting in the county at the last general election, the number of persons voting "yes" on the proposition must constitute at least three-fifths of a number equal to forty percent of the total number of voters voting in the county at the last general election.
     (b) If the number of registered voters voting on the proposition exceeds forty percent of the total number of voters voting in the county at the last preceding general election, the number of persons voting "yes" on the proposition must constitute at least three-fifths of the registered voters voting on the proposition.
     (4) Ballot propositions must conform with RCW 29A.36.210.
     (5) Any tax imposed under this section shall be used exclusively for the purpose of funding public works projects as provided in this chapter.
     (6) The limitations in RCW 84.52.043 do not apply to the tax authorized in this section.
     (7) The limitation in RCW 84.55.010 does not apply to the first tax levy imposed under this section following the approval of the levy by the voters under subsection (3) of this section.

NEW SECTION.  Sec. 6   County legislative authorities providing funding for public works projects under this chapter must keep proper records of accounts and are subject to audit by the state auditor.

Sec. 7   RCW 29A.36.210 and 2004 c 80 s 2 are each amended to read as follows:
     (1) The ballot proposition authorizing a taxing district to impose the regular property tax levies authorized in RCW 36.69.145, 67.38.130, 84.52.069, ((or)) 84.52.135, or section 5 of this act shall contain in substance the following:

     "Shall the . . . . . . (insert the name of the taxing district) be authorized to impose regular property tax levies of . . . . . . (insert the maximum rate) or less per thousand dollars of assessed valuation for each of . . . . . . (insert the maximum number of years allowable) consecutive years?
     Yes. . . . . . . . . . . . □
     No . . . . . . . . . . . . □"
     Each voter shall indicate either "Yes" or "No" on his or her ballot in accordance with the procedures established under this title.

     (2) The ballot proposition authorizing a taxing district to impose a permanent regular tax levy under RCW 84.52.069 shall contain the following:

     "Shall the . . . . . (insert the name of the taxing district) be authorized to impose a PERMANENT regular property levy of . . . . . (insert the maximum rate) or less per thousand dollars of assessed valuation?
     Yes. . . . . . . . . . . . □
     No . . . . . . . . . . . . □"

Sec. 8   RCW 84.52.010 and 2005 c 122 s 2 are each amended to read as follows:
     Except as is permitted under RCW 84.55.050, all taxes shall be levied or voted in specific amounts.
     The rate percent of all taxes for state and county purposes, and purposes of taxing districts coextensive with the county, shall be determined, calculated and fixed by the county assessors of the respective counties, within the limitations provided by law, upon the assessed valuation of the property of the county, as shown by the completed tax rolls of the county, and the rate percent of all taxes levied for purposes of taxing districts within any county shall be determined, calculated and fixed by the county assessors of the respective counties, within the limitations provided by law, upon the assessed valuation of the property of the taxing districts respectively.
     When a county assessor finds that the aggregate rate of tax levy on any property, that is subject to the limitations set forth in RCW 84.52.043 or 84.52.050, exceeds the limitations provided in either of these sections, the assessor shall recompute and establish a consolidated levy in the following manner:
     (1) The full certified rates of tax levy for state, county, county road district, and city or town purposes shall be extended on the tax rolls in amounts not exceeding the limitations established by law; however any state levy shall take precedence over all other levies and shall not be reduced for any purpose other than that required by RCW 84.55.010. If, as a result of the levies imposed under section 5 of this act, RCW 84.52.125, 84.52.135, 36.54.130, 84.52.069, 84.34.230, the portion of the levy by a metropolitan park district that was protected under RCW 84.52.120, and 84.52.105, the combined rate of regular property tax levies that are subject to the one percent limitation exceeds one percent of the true and fair value of any property, then these levies shall be reduced as follows:
     (a) The levy imposed by a county under section 5 of this act must be reduced until the combined rate no longer exceeds one percent of the true and fair value of any property or must be eliminated;
     (b) If the combined rate of regular property tax levies that are subject to the one percent limitation still exceeds one percent of the true and fair value of any property, the portion of the levy by a fire protection district that is protected under RCW 84.52.125 shall be reduced until the combined rate no longer exceeds one percent of the true and fair value of any property or shall be eliminated;
     (((b))) (c) If the combined rate of regular property tax levies that are subject to the one percent limitation still exceeds one percent of the true and fair value of any property, the levy imposed by a county under RCW 84.52.135 must be reduced until the combined rate no longer exceeds one percent of the true and fair value of any property or must be eliminated;
     (((c))) (d) If the combined rate of regular property tax levies that are subject to the one percent limitation still exceeds one percent of the true and fair value of any property, the levy imposed by a ferry district under RCW 36.54.130 must be reduced until the combined rate no longer exceeds one percent of the true and fair value of any property or must be eliminated;
     (((d))) (e) If the combined rate of regular property tax levies that are subject to the one percent limitation still exceeds one percent of the true and fair value of any property, the portion of the levy by a metropolitan park district that is protected under RCW 84.52.120 shall be reduced until the combined rate no longer exceeds one percent of the true and fair value of any property or shall be eliminated;
     (((e))) (f) If the combined rate of regular property tax levies that are subject to the one percent limitation still exceeds one percent of the true and fair value of any property, then the levies imposed under RCW 84.34.230, 84.52.105, and any portion of the levy imposed under RCW 84.52.069 that is in excess of thirty cents per thousand dollars of assessed value, shall be reduced on a pro rata basis until the combined rate no longer exceeds one percent of the true and fair value of any property or shall be eliminated; and
     (((f))) (g) If the combined rate of regular property tax levies that are subject to the one percent limitation still exceeds one percent of the true and fair value of any property, then the thirty cents per thousand dollars of assessed value of tax levy imposed under RCW 84.52.069 shall be reduced until the combined rate no longer exceeds one percent of the true and fair value of any property or eliminated.
     (2) The certified rates of tax levy subject to these limitations by all junior taxing districts imposing taxes on such property shall be reduced or eliminated as follows to bring the consolidated levy of taxes on such property within the provisions of these limitations:
     (a) First, the certified property tax levy rates of those junior taxing districts authorized under RCW 36.68.525, 36.69.145, 35.95A.100, and 67.38.130 shall be reduced on a pro rata basis or eliminated;
     (b) Second, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates of flood control zone districts shall be reduced on a pro rata basis or eliminated;
     (c) Third, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates of all other junior taxing districts, other than fire protection districts, regional fire protection service authorities, library districts, the first fifty cent per thousand dollars of assessed valuation levies for metropolitan park districts, and the first fifty cent per thousand dollars of assessed valuation levies for public hospital districts, shall be reduced on a pro rata basis or eliminated;
     (d) Fourth, if the consolidated tax levy rate still exceeds these limitations, the first fifty cent per thousand dollars of assessed valuation levies for metropolitan park districts created on or after January 1, 2002, shall be reduced on a pro rata basis or eliminated;
     (e) Fifth, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates authorized to regional fire protection service authorities under RCW 52.26.140(1) (b) and (c) and fire protection districts under RCW 52.16.140 and 52.16.160 shall be reduced on a pro rata basis or eliminated; and
     (f) Sixth, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates authorized for regional fire protection service authorities under RCW 52.26.140(1)(a), fire protection districts under RCW 52.16.130, library districts, metropolitan park districts created before January 1, 2002, under their first fifty cent per thousand dollars of assessed valuation levy, and public hospital districts under their first fifty cent per thousand dollars of assessed valuation levy, shall be reduced on a pro rata basis or eliminated.

Sec. 9   RCW 84.52.043 and 2005 c 122 s 3 are each amended to read as follows:
     Within and subject to the limitations imposed by RCW 84.52.050 as amended, the regular ad valorem tax levies upon real and personal property by the taxing districts hereafter named shall be as follows:
     (1) Levies of the senior taxing districts shall be as follows: (a) The levy by the state shall not exceed three dollars and sixty cents per thousand dollars of assessed value adjusted to the state equalized value in accordance with the indicated ratio fixed by the state department of revenue to be used exclusively for the support of the common schools; (b) the levy by any county shall not exceed one dollar and eighty cents per thousand dollars of assessed value; (c) the levy by any road district shall not exceed two dollars and twenty-five cents per thousand dollars of assessed value; and (d) the levy by any city or town shall not exceed three dollars and thirty-seven and one-half cents per thousand dollars of assessed value. However any county is hereby authorized to increase its levy from one dollar and eighty cents to a rate not to exceed two dollars and forty-seven and one-half cents per thousand dollars of assessed value for general county purposes if the total levies for both the county and any road district within the county do not exceed four dollars and five cents per thousand dollars of assessed value, and no other taxing district has its levy reduced as a result of the increased county levy.
     (2) The aggregate levies of junior taxing districts and senior taxing districts, other than the state, shall not exceed five dollars and ninety cents per thousand dollars of assessed valuation. The term "junior taxing districts" includes all taxing districts other than the state, counties, road districts, cities, towns, port districts, and public utility districts. The limitations provided in this subsection shall not apply to: (a) Levies at the rates provided by existing law by or for any port or public utility district; (b) excess property tax levies authorized in Article VII, section 2 of the state Constitution; (c) levies for acquiring conservation futures as authorized under RCW 84.34.230; (d) levies for emergency medical care or emergency medical services imposed under RCW 84.52.069; (e) levies to finance affordable housing for very low-income housing imposed under RCW 84.52.105; (f) the portions of levies by metropolitan park districts that are protected under RCW 84.52.120; (g) levies imposed by ferry districts under RCW 36.54.130; (h) levies for criminal justice purposes under RCW 84.52.135; ((and)) (i) the portions of levies by fire protection districts that are protected under RCW 84.52.125; and (j) levies for funding public works projects under section 5 of this act.

NEW SECTION.  Sec. 10   Sections 1 through 6 of this act constitute a new chapter in Title 36 RCW.