READ FIRST TIME 02/12/08.   

     AN ACT Relating to provisions of limited duration that pertain to the financing and operation of port districts; amending RCW 84.55.092 and 53.36.030; creating a new section; and providing an expiration date.

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

Sec. 1   RCW 84.55.092 and 1998 c 16 s 3 are each amended to read as follows:
     (1) Except as provided in subsection (2) of this section, the regular property tax levy for each taxing district other than the state may be set at the amount which would be allowed otherwise under this chapter if the regular property tax levy for the district for taxes due in prior years beginning with 1986 had been set at the full amount allowed under this chapter including any levy authorized under RCW 52.16.160 that would have been imposed but for the limitation in RCW 52.18.065, applicable upon imposition of the benefit charge under chapter 52.18 RCW.
     (2) Until July 1, 2010, a port district may not use levy proceeds derived from banked levy capacity under this section to pay, secure, or guarantee the payment of principal and interest on general obligation bonds issued after the effective date of this section. This subsection only applies to a port district in a county with a population of one million or more.
     (3) The purpose of subsection (1) of this section is to remove the incentive for a taxing district to maintain its tax levy at the maximum level permitted under this chapter, and to protect the future levy capacity of a taxing district that reduces its tax levy below the level that it otherwise could impose under this chapter, by removing the adverse consequences to future levy capacities resulting from such levy reductions.

Sec. 2   RCW 53.36.030 and 1996 c 66 s 1 are each amended to read as follows:
     (1)(a) Except as provided in (b) of this subsection, a port district may at any time contract indebtedness or borrow money for district purposes and may issue general obligation bonds therefor not exceeding an amount, together with any existing indebtedness of the district not authorized by the voters, of one-fourth of one percent of the value of the taxable property in the district.
     (b) Port districts having less than eight hundred million dollars in value of taxable property during 1991 may at any time contract indebtedness or borrow money for port district purposes and may issue general obligation bonds therefor not exceeding an amount, combined with existing indebtedness of the district not authorized by the voters, of three-eighths of one percent of the value of the taxable property in the district. Prior to contracting for any indebtedness authorized by this subsection (1)(b), the port district must have a comprehensive plan for harbor improvements or industrial development and a long-term financial plan approved by the department of community, trade, and economic development. The department of community, trade, and economic development is immune from any liability for its part in reviewing or approving port district's improvement or development plans, or financial plans. Any indebtedness authorized by this subsection (1)(b) may be used only to acquire or construct a facility, and, prior to contracting for such indebtedness, the port district must have a lease contract for a minimum of five years for the facility to be acquired or constructed by the debt.
     (2) With the assent of three-fifths of the voters voting thereon at a general or special port election called for that purpose, a port district may contract indebtedness or borrow money for district purposes and may issue general obligation bonds therefor provided the total indebtedness of the district at any such time shall not exceed three-fourths of one percent of the value of the taxable property in the district.
     (3) In addition to the indebtedness authorized under subsections (1) and (2) of this section, port districts having less than two hundred million dollars in value of taxable property and operating a municipal airport may at any time contract indebtedness or borrow money for airport capital improvement purposes and may issue general obligation bonds therefor not exceeding an additional one-eighth of one percent of the value of the taxable property in the district without authorization by the voters; and, with the assent of three-fifths of the voters voting thereon at a general or special port election called for that purpose, may contract indebtedness or borrow money for airport capital improvement purposes and may issue general obligation bonds therefor for an additional three-eighths of one percent provided the total indebtedness of the district for all port purposes at any such time shall not exceed one and one-fourth percent of the value of the taxable property in the district.
     (4) Any port district may issue general district bonds evidencing any indebtedness, payable at any time not exceeding fifty years from the date of the bonds. Any contract for indebtedness or borrowed money authorized by RCW 53.36.030(1)(b) shall not exceed twenty-five years. The bonds shall be issued and sold in accordance with chapter 39.46 RCW.
     (5) Elections required under this section shall be held as provided in RCW 39.36.050.
     (6) For the purpose of this section, "indebtedness of the district" shall not include any debt of a county-wide district with a population less than twenty-five hundred people when the debt is secured by a mortgage on property leased to the federal government; and the term "value of the taxable property" shall have the meaning set forth in RCW 39.36.015.
     (7) This section does not apply to a loan made under a loan agreement under chapter 39.69 RCW, and a computation of indebtedness under this chapter must exclude the amount of a loan under such a loan agreement.
     (8) Until July 1, 2010, a port district may not use property tax revenue derived from banked levy capacity under RCW 84.55.092 to pay, secure, or guarantee the payment of principal and interest on general obligation bonds issued after the effective date of this section. This subsection only applies to a port district in a county with a population of one million or more.

NEW SECTION.  Sec. 3   (1)(a) A task force on Washington port district finance and management, for port districts in counties with more than one million residents, is established, with members as provided in this subsection:
     (i) The members of the finance committee of the house of representatives;
     (ii) The members of the ways and means committee of the senate; and
     (iii) Two members from the governor's policy staff, appointed by the governor.
     (b) The task force shall choose its chair and cochairs from among its legislative membership. The chair of the finance committee of the house of representatives shall convene the initial meeting of the task force.
     (2) The task force shall consult with individuals from the public and private sectors and other interested parties, as may be appropriate, for technical advice and assistance and may ask those individuals to establish advisory work groups that report to the task force.
     (3) The task force shall examine the management of a port district in a county with more than one million residents. The duties of the task force shall include examinations of:
     (a) Adopted financial management policies and tools employed by the district to monitor its performance;
     (b) Stewardship practices employed by the district for existing funding sources and their uses, with a special emphasis on the imposition and use of property tax levies; and
     (c) The structure and role of the district's commission in the establishment and measurement of the financial and operating performance of the district.
     (4) The task force shall use legislative facilities, and staff support shall be provided by the house of representatives office of program research and senate committee services.
     (5) Legislative members of the task force must be reimbursed for travel expenses in accordance with RCW 44.04.120. Nonlegislative members, except those representing an employer or organization, are entitled to be reimbursed for travel expenses in accordance with RCW 43.03.050 and 43.03.060.
     (6) The expenses of the task force shall be paid jointly by the house of representatives and the senate. Task force expenditures are subject to approval by the senate facilities and operations committee and the house of representatives executive rules committee, or their successor committees.
     (7) The task force shall report its findings and recommendations to the governor and the appropriate committees of the house of representatives and the senate by December 1, 2010.
     (8) This section expires May 1, 2011.