BILL REQ. #:  H-1640.1 

Read first time 02/02/2007.   Referred to Committee on Community & Economic Development & Trade.

     AN ACT Relating to community preservation and development authorities; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; adding a new chapter to Title 43 RCW; creating new sections; making appropriations; and declaring an emergency.

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

NEW SECTION.  Sec. 1   INTENT. Major public facilities, public works, and capital projects with significant public funding generally aim to accrue broad benefits to the people of Washington. However, frequently overlooked or inadequately addressed is the interest of the stakeholder community that bears the disproportionate cost of the broad public benefit by absorbing a deleterious impact upon itself. 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.

NEW SECTION.  Sec. 2   DEFINITIONS. 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 a well-defined geographic area 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 shall be open to all persons eighteen years of age and over who are residents, property owners, employees, business persons, or community participants within its boundaries.
     (4) "Impacted community" means a community that has been or has the potential to be 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 1 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. 3   PURPOSE. (1) Community preservation and development authorities are hereby created to restore or enhance the health, safety, and 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.
     (2) 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;
     (h) To preserve historic buildings or areas by returning them to economically productive uses that are compatible with or enhance their historic character; and
     (i) To raise the visibility of the consequences of public policy decisions and actions.

NEW SECTION.  Sec. 4   FORMATION. (1) The constituency 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.
     (2) Formation of the community preservation and development authority is subject to legislative authorization in law. The legislature must first find that the area within the authority's proposed geographic boundaries meets the definitions of "community" and "impacted community" contained in section 2 of this act. The legislature may then act to authorize the formation and operation 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, including 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 significant 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 the constituency proposing formation of the authority shall jointly establish a committee to develop a list of candidates to stand for election. The board of directors shall be elected by the constituency of the authority 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 6(5)(c) of this act.

NEW SECTION.  Sec. 5   POWERS. (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. 6   DUTIES. A community preservation and development authority shall have the duty to:
     (1) Establish specific geographic boundaries for the authority within its bylaws;
     (2) Solicit input from members of its community and develop a strategic preservation and development plan to restore or enhance the health, safety, and well-being of the impacted community and to preserve and recapture 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 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) 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 regarding its proposed strategic plan and activities for the upcoming year; and (iii) hold board member elections; and
     (d) Maintaining books and records as appropriate for the conduct of its affairs.

NEW SECTION.  Sec. 7   LEGISLATIVE AUTHORIZATION. The legislature finds that a community that meets the definitions contained in section 2(1) and (4) of this act is located in a city or cities in which the total population of the city or cities is greater than five hundred thousand; has had at least two major public facilities projects sited in the area since 1995; and will commence formation of a community preservation and development authority under this chapter by January 1, 2008. In accordance with section 4(2) of this act, the legislature authorizes the formation and operation of the community preservation and development authority.

NEW SECTION.  Sec. 8   TREASURY ACCOUNT. The community preservation and development authority account is created in the state treasury. 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. 9   PUBLIC AGENCY RESPONSIBILITIES. 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 must:
     (1) Communicate and consult fully 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 every effort to ensure that any negative, cumulative effects of multiple projects upon the impacted community are minimized.

NEW SECTION.  Sec. 10   A new section is added to chapter 82.08 RCW to read as follows:
     SALES TAX EXEMPTION. (1) The tax levied by RCW 82.08.020 does not apply to sales of tangible personal property and labor and services to a community preservation and development authority if the sales are made in order to implement a project identified in the authority's strategic plan.
     (2) A person taking the exemption under this section must keep records necessary for the department to verify eligibility under this section. The exemption is available only when the buyer provides the seller with an exemption certificate in a form and manner prescribed by the department. The seller shall retain a copy of the certificate for the seller's files.
     (3) "Community preservation and development authority" has the meaning provided in section 2 of this act.

NEW SECTION.  Sec. 11   A new section is added to chapter 82.12 RCW to read as follows:
     USE TAX EXEMPTION. The provisions of this chapter do not apply in respect to the use of tangible personal property and labor and services by a community preservation and development authority if the sales are made in order to implement a project identified in the authority's strategic plan. "Community preservation and development authority" has the meaning provided in section 2 of this act.

NEW SECTION.  Sec. 12   STATE GENERAL FUND APPROPRIATION. The sum of three hundred fifty thousand dollars, or as much thereof as may be necessary, is appropriated for the fiscal year ending June 30, 2007, from the general fund to the community preservation and development authority account for the purposes of this act.

NEW SECTION.  Sec. 13   COMMUNITY PRESERVATION AND DEVELOPMENT ACCOUNT APPROPRIATION. The sum of three hundred fifty thousand dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 2009, from the community preservation and development authority account to the department of community, trade, and economic development for the purposes of section 7 of this act.

NEW SECTION.  Sec. 14   STATE BUILDING CONSTRUCTION ACCOUNT APPROPRIATION. The sum of thirty million dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 2009, from the state building construction account to the department of community, trade, and economic development for the purposes of section 7 of this act.

NEW SECTION.  Sec. 15   Captions used in this act constitute no part of the law.

NEW SECTION.  Sec. 16   Sections 1 through 9 of this act constitute a new chapter in Title 43 RCW.

NEW SECTION.  Sec. 17   EMERGENCY CLAUSE. Section 12 of this act is necessary for the support of state government by providing funding for vital community projects and takes effect immediately.