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THIRD SPECIAL SESSION

SECOND DAY

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MORNING SESSION

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Senate Chamber, Olympia, Friday, October 13, 1995

The Senate was called to order at 9:00 a.m. by President Pritchard. The Secretary called the roll and announced to the President that all Senators were present except Senators Heavey, Long, Moyer, Quigley and Winsley. On motion of Senator Ann Anderson, Senators Long, Moyer and Winsley were excused. On motion of Senator Loveland, Senators Heavey and Quigley were excused.

MOTION

On motion of Senator Spanel, the reading of the Journal of the previous day was dispensed with and it was approved.

MOTION

At 9:06 a.m., on motion of Senator Spanel, the Senate was declared to be at ease.

The Senate was called to order at 6:29 p.m. by President Pritchard.

SECOND READING

SENATE BILL NO. 6085, by Senators Gaspard and McDonald (by request of Governor Lowry)

Financing public sports facilities

The bill was read the second time.

MOTION

Senator Gaspard moved that the following amendment be adopted:

On page 1, strike everything after the enacting clause and insert the following:

"PART I

STATE CONTRIBUTION

NEW SECTION. Sec. 101. A new section is added to chapter 82.14 RCW to read as follows:

(1) The legislative authority of a county with a population of one million or more may impose a sales and use tax in accordance with the terms of this chapter. The tax is in addition to other taxes authorized by law and shall be collected from those persons who are taxable by the state under chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event within the county. The rate of tax shall not exceed 0.017 percent of the selling price in the case of a sales tax or value of the article used in the case of a use tax.

(2) The tax imposed under subsection (1) of this section shall be deducted from the amount of tax otherwise required to be collected or paid over to the department of revenue under chapter 82.08 or 82.12 RCW. The department of revenue shall perform the collection of such taxes on behalf of the county at no cost to the county.

(3) Moneys collected under this section shall only be used for the purpose of paying the principal and interest payments on bonds issued by a county to construct a baseball stadium. Moneys collected in excess of the amount necessary to pay one-fourth of the principal and interest payments, as defined in section 107 of this act, on the bonds that are issued for the construction of the stadium shall be used to reduce the payments on the bonds from the sports bond retirement account, as provided in section 107 of this act.

(4) No tax may be collected under this section before January 1, 1996, and no tax may be collected under this section until the county legislative authority has adopted resolutions imposing the taxes under RCW 82.14.360. The tax imposed in this section shall expire when the taxes imposed under RCW 82.14.360 expire or when the bonds issued for the construction of the baseball stadium are retired, but not more than twenty years after the bonds are issued.

(5) As used in this section, "baseball stadium" means a baseball stadium with natural turf and a retractable roof or canopy, together with associated parking facilities, constructed in the largest city in a county with a population of one million or more.

Sec. 102. RCW 46.16.301 and 1994 c 194 s 2 are each amended to read as follows:

(1) The department may create, design, and issue special license plates that may be used in lieu of regular or personalized license plates for motor vehicles required to display two motor vehicle license plates, excluding vehicles registered under chapter 46.87 RCW, upon terms and conditions established by the department. The special plates may:

(a) Denote the age or type of vehicle; or

(b) Denote special activities or interests; or

(c) Denote the status, or contribution or sacrifice for the United States, the state of Washington, or the citizens of the state of Washington, of a registered owner of that vehicle; or

(d) Display a depiction of the name and mascot or symbol of a state university, regional university, or state college as defined in RCW 28B.10.016.

(2) The department shall create, design, and issue a special baseball stadium license plate that may be used in lieu of regular or personalized license plates for motor vehicles required to display two motor vehicle license plates, excluding vehicles registered under chapter 46.87 RCW, upon terms and conditions established by the department. The special plates shall commemorate the construction of a baseball stadium, as defined in section 101 of this act. The department shall also issue to each recipient of a special baseball stadium license plate a certificate of participation in the construction of the baseball stadium.

(3) The department has the sole discretion to determine whether or not to create, design, or issue any series of special license plates, other than the special baseball stadium license plate under subsection (2) of this section, and whether any interest or status merits the issuance of a series of special license plates. In making this determination, the department shall consider whether or not an interest or status contributes or has contributed significantly to the public health, safety, or welfare of the citizens of the United States or of this state or to their significant benefit, or whether the interest or status is recognized by the United States, this state, or other states, in other settings or contexts. The department may also consider the potential number of persons who may be eligible for the plates and the cost and efficiency of producing limited numbers of the plates. The design of a special license plate shall conform to all requirements for plates for the type of vehicle for which it is issued, as provided elsewhere in this chapter.

Sec. 103. RCW 46.16.313 and 1994 c 194 s 4 are each amended to read as follows:

(1) The department may establish a fee for each type of special license plates issued under RCW 46.16.301(1) (a), (b), or (c) in an amount calculated to offset the cost of production of the special license plates and the administration of this program. The fee shall not exceed thirty-five dollars and is in addition to all other fees required to register and license the vehicle for which the plates have been requested. All such additional special license plate fees collected by the department shall be deposited in the state treasury and credited to the motor vehicle fund.

(2) In addition to all fees and taxes required to be paid upon application, registration, and renewal registration of a motor vehicle, the holder of a collegiate license plate shall pay a fee of thirty dollars. The department shall deduct an amount not to exceed two dollars of each fee collected under this subsection for administration and collection expenses incurred by it. The remaining proceeds, minus the cost of plate production, shall be remitted to the custody of the state treasurer with a proper identifying detailed report. The state treasurer shall credit the funds to the appropriate collegiate license plate fund as provided in RCW 28B.10.890.

(3) In addition to all fees and taxes required to be paid upon application, registration, and renewal registration of a motor vehicle, the holder of a special baseball stadium license plate shall pay a fee of thirty dollars. The department shall deduct an amount not to exceed two dollars of each fee collected under this subsection for administration and collection expenses incurred by it. The remaining proceeds, minus the cost of plate production, shall be remitted to the custody of the state treasurer with a proper identifying detailed report. The state treasurer shall credit the funds to the sports bond retirement account under section 107 of this act through the date of the retirement of the bonds issued by a county to construct a baseball stadium, as defined in section 101 of this act. After this date, the state treasurer shall credit the funds to the state general fund.

NEW SECTION. Sec. 104. A new section is added to chapter 43.79 RCW to read as follows:

Any moneys that may be donated to the state for the purpose of constructing a baseball stadium as defined in section 101 of this act shall be deposited in the sports bond retirement account under section 107 of this act.

NEW SECTION. Sec. 105. A new section is added to chapter 67.70 RCW to read as follows:

The lottery commission shall conduct at least two but not more than four games with sports themes per year. Revenues from these games shall be deposited into the sports bond retirement account under section 107 of this act. Three million dollars shall be deposited under this section during calendar year 1996. During subsequent years, such deposits shall equal the prior year's distributions increased by four percent. Deposits under this section shall cease when the bonds issued for the construction of the baseball stadium, as defined in section 101 of this act, are retired, but not more than twenty years after the bonds are issued.

Sec. 106. RCW 67.70.240 and 1987 c 513 s 7 are each amended to read as follows:

The moneys in the state lottery account shall be used only: (1) For the payment of prizes to the holders of winning lottery tickets or shares; (2) for purposes of making deposits into the reserve account created by RCW 67.70.250 and into the lottery administrative account created by RCW 67.70.260; (3) for purposes of making deposits into the state's general fund; (4) for purposes of making deposits into the housing trust fund under the provisions of section 7 of this 1987 act; (5) for purposes of making deposits into the sports bond retirement account under section 107 of this act as provided in section 105 of this act; (6) for the purchase and promotion of lottery games and game-related services; and (((6))) (7) for the payment of agent compensation.

The office of financial management shall require the allotment of all expenses paid from the account and shall report to the ways and means committees of the senate and house of representatives any changes in the allotments.

NEW SECTION. Sec. 107. A new section is added to chapter 43.79 RCW to read as follows:

(1) The sports bond retirement account is created in the custody of the state treasurer. The account shall be used exclusively for the payment of up to one-fourth of the principal and interest payments on bonds issued by a county with a population of one million or more to construct a baseball stadium. Interest and earnings on investments of moneys in the account shall be deposited into the account.

(2) The sports bond retirement account shall consist of all moneys deposited into the account under RCW 46.16.313(3) and sections 104 and 105 of this act and interest and earnings on investments of moneys in the account under subsection (1) of this section.

(3) A county with a population of one million or more that has issued bonds to construct a baseball stadium shall, on or before June 30th of each year, certify to the state treasurer the amount needed in the ensuing twelve months to meet one-fourth of the bond retirement and interest requirements. Not less than thirty days prior to the date on which any interest or principal and interest payment is due, the department of revenue shall certify to the state treasurer the amount of revenues accruing to the county under section 101 of this act in excess of the amount needed to pay one-fourth of the prior principal and interest payment. On the date on which any such interest or principal and interest payment is due, the state treasurer shall withdraw and transmit to the county from the sports bond retirement account an amount equal to the amount certified by the county to be due on the payment date, less the amount certified by the department of revenue.

(5) The sports bond retirement account is abolished on the date of the retirement of the bonds issued by a county with a population of one million or more to construct a baseball stadium. Moneys remaining in the account shall be transferred to the state general fund on that date.

(6) As used in this section:

(a) "Baseball stadium" means "baseball stadium" as defined in section 101 of this act; and

(b) "One-fourth of the principal and interest payments" means the lesser of one-fourth of the principal and interest payments on the bonds that are issued for the construction of the stadium or one-fourth of the principal and interest payments on the bonds equal to an amount of two hundred fifty-five million dollars.

Sec. 108. RCW 43.79A.040 and 1995 c 394 s 2 and 1995 c 365 s 1 are each reenacted and amended to read as follows:

(1) Money in the treasurer's trust fund may be deposited, invested and reinvested by the state treasurer in accordance with RCW 43.84.080 in the same manner and to the same extent as if the money were in the state treasury.

(2) All income received from investment of the treasurer's trust fund shall be set aside in an account in the treasury trust fund to be known as the investment income account.

(3) The investment income account may be utilized for the payment of purchased banking services on behalf of treasurer's trust funds including, but not limited to, depository, safekeeping, and disbursement functions for the state treasurer or affected state agencies. The investment income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for payments to financial institutions. Payments shall occur prior to distribution of earnings set forth in subsection (4) of this section.

(4)(a) Monthly, the state treasurer shall distribute the earnings credited to the investment income account to the state general fund except under (b) and (c) of this subsection.

(b) The following accounts and funds shall receive their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The agricultural local fund, the American Indian scholarship endowment fund, the energy account, the fair fund, the game farm alternative account, the grain inspection revolving fund, the rural rehabilitation account, ((and)) the self-insurance revolving fund, and the sports bond retirement account. However, the earnings to be distributed shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.

(c) The following accounts and funds shall receive eighty percent of their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The advanced right of way revolving fund, the federal narcotics asset forfeitures account, the high occupancy vehicle account, and the local rail service assistance account.

(5) In conformance with Article II, section 37 of the state Constitution, no trust accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

NEW SECTION. Sec. 109. Sections 101 through 108 of this act constitute the entire state contribution for a baseball stadium, as defined in section 101 of this act, and assumes that the state share is one-half of the total amount of bonds issued, but not exceeding one-half of a total amount of two hundred fifty-five million dollars. The state will not make any additional contributions based on revised cost or revenue estimates, cost overruns, unforeseen circumstances, or any other reason.

PART II

LOCAL FUNDING

Sec. 201. RCW 82.14.360 and 1995 1st sp.s. c 14 s 7 are each amended to read as follows:

(1) The legislative authority of a county with a population of one million or more ((operating under a county charter)) may impose a special stadium sales and use tax ((by resolution adopted on or before December 31, 1995, for collection following its approval by a majority of the voters in the county at a general or special election)) upon the retail sale or use within the county by restaurants, taverns, and bars of food and beverages that are taxable by the state under chapters 82.08 and 82.12 RCW. The rate of the tax shall not exceed five-tenths of one percent of the selling price in the case of a sales tax, or value of the article used in the case of a use tax. The tax imposed under this subsection is in addition to any other taxes authorized by law and shall not be credited against any other tax imposed upon the same taxable event.

(2) The legislative authority of a county with a population of one million or more may impose a special stadium sales and use tax upon retail car rentals within the county that are taxable by the state under chapters 82.08 and 82.12 RCW. The rate of the tax shall ((equal one-tenth of one)) not exceed two percent of the selling price in the case of a sales tax, or rental value of the ((article used)) vehicle in the case of a use tax. The tax imposed under this ((section)) subsection is in addition to any other taxes authorized by law and shall not be credited against any other tax imposed upon the same taxable event.

(3) The revenue from the ((tax)) taxes imposed under this section shall be used for the purpose of principal and interest payments on bonds issued by ((a public facilities district, created within)) the county ((under chapter 36.100 RCW,)) to acquire, construct, own, remodel, maintain, equip, reequip, repair, and operate a baseball stadium ((with a retractable roof or canopy and natural turf.)) The county shall issue bonds, in an amount determined to be necessary by the public facilities district, for the district to acquire, construct, own, and equip the baseball stadium. Total bonds authorized for the baseball stadium shall not exceed two hundred fifty-five million dollars unless agreed otherwise by the public facilities district and the county. If the revenue from the tax imposed under this section exceeds the amount needed for such principal and interest payments in any year, the excess shall be used solely:

(a) For either or both: (((a))) (i) Early retirement of the bonds issued for the baseball stadium; or (((b))) (ii) retirement of bonds issued for expanding, remodelling, repairing, or reequipping of a multipurpose stadium that has a seating capacity over forty-five thousand; and

(b) If the revenue from the taxes imposed under this section exceeds the amount needed for the purposes in (a) of this subsection in any year, the excess shall be placed in a contingency fund which may only be used to pay unanticipated capital costs on the baseball stadium, excluding any cost overruns on initial construction, or on a multipurpose stadium that has a seating capacity over forty-five thousand.

Revenues shall not be used as provided in this subsection (3) for the retirement of bonds issued for expanding, remodelling, repairing, or reequipping of a multipurpose stadium that has a seating capacity over forty-five thousand or to pay unanticipated capital costs on a multipurpose stadium that has a seating capacity over forty-five thousand unless authorized in a separate resolution adopted by the county legislative authority.

(4) Revenues from the taxes authorized in this section shall be transferred by the county to the public facilities district for design and other pre-construction costs of the baseball stadium until bonds are issued for the baseball stadium. The taxes authorized under this section may not be collected ((only)) after June 30, 1997, unless the county executive has certified to the department of revenue that a professional major league baseball team has made a binding and legally enforceable contractual commitment to:

(a) Play at least ninety percent of its home games in the stadium for a period of time not shorter than the term of the bonds issued to finance the initial construction of the stadium;

(b) Contribute ((principal of)) forty-five million dollars toward the ((bonded)) reasonably necessary preconstruction costs including, but not limited to architectural, engineering, environmental, and legal services, and the cost of construction of the stadium, or to any associated public purpose separate from bond-financed property, including without limitation land acquisition, parking facilities, equipment, infrastructure or other similar costs associated with the project, which contribution shall be made during a term not to exceed the term of the bonds issued to finance the initial construction of the stadium. If all or part of the contribution is made after the date of issuance of the bonds, the team shall contribute an additional amount equal to the accruing interest on the deferred portion of the contribution, calculated at the interest rate on the bonds maturing in the year in which the deferred contribution is made. No part of the contribution may be made without the consent of the county until a public facilities district is created under chapter 36.100 RCW to acquire, construct, own, remodel, maintain, equip, reequip, repair, and operate a baseball stadium. To the extent possible, contributions shall be structured in a manner that would allow for the issuance of bonds to construct the stadium that are exempt from federal income taxes; and

(c) Share a portion of the profits generated by the baseball team from the operation of the professional franchise for a period of time equal to the term of the bonds issued to finance the initial construction of the stadium, after offsetting any losses incurred by the baseball team after the effective date of chapter 14, Laws of 1995 1st sp. sess. Such profits and the portion to be shared shall be defined by agreement between the public facilities district and the baseball team. The shared profits shall be used to retire the bonds issued to finance the initial construction of the stadium. If the bonds are retired before the expiration of their term, the shared profits shall be paid to the public facilities district.

(5) No tax may be collected under this section before January 1, 1996. Before collecting the taxes under this section or issuing bonds for a baseball stadium, the county shall create a public facilities district under chapter 36.100 RCW to acquire, construct, own, remodel, maintain, equip, reequip, repair, and operate a baseball stadium. The county shall assemble such real property as the district determines to be necessary as a site for the baseball stadium. Property which is necessary for this purpose that is owned by the county on the effective date of this section shall be contributed to the district, and property which is necessary for this purpose that is acquired by the county on or after the effective date of this section shall be conveyed to the district. The proceeds of any bonds issued for the baseball stadium or any other facility that the district will own shall be provided to the district.

(6) As used in this section, "baseball stadium" means "baseball stadium" as defined in section 101 of this act.

(7) The taxes imposed under this section shall expire when the bonds issued for the construction of the ((new public facilities)) baseball stadium are retired, but not later than twenty years after the tax is first collected.

Sec. 202. RCW 35.21.280 and 1995 1st sp.s. c 14 s 8 are each amended to read as follows:

Every city and town may levy and fix a tax of not more than one cent on twenty cents or fraction thereof to be paid by the person who pays an admission charge to any place: PROVIDED, No city or town shall impose such tax on persons paying an admission to any activity of any elementary or secondary school. This includes a tax on persons who are admitted free of charge or at reduced rates to any place for which other persons pay a charge or a regular higher charge for the same privileges or accommodations. A city that is located in a county with a population of one million or more may not levy a tax on events in stadia constructed on or after January 1, 1995, that are owned by ((county government or)) a public facilities district under chapter 36.100 RCW and that have seating capacities over forty thousand. The city or town may require anyone who receives payment for an admission charge to collect and remit the tax to the city or town.

The term "admission charge" includes:

(1) A charge made for season tickets or subscriptions;

(2) A cover charge, or a charge made for use of seats and tables reserved or otherwise, and other similar accommodations;

(3) A charge made for food and refreshment in any place where free entertainment, recreation or amusement is provided;

(4) A charge made for rental or use of equipment or facilities for purposes of recreation or amusement; if the rental of the equipment or facilities is necessary to the enjoyment of a privilege for which a general admission is charged, the combined charges shall be considered as the admission charge;

(5) Automobile parking charges if the amount of the charge is determined according to the number of passengers in the automobile.

Sec. 203. RCW 36.38.010 and 1995 1st sp.s. c 14 s 9 are each amended to read as follows:

(1) Any county may by ordinance enacted by its county legislative authority, levy and fix a tax of not more than one cent on twenty cents or fraction thereof to be paid for county purposes by persons who pay an admission charge to any place, including a tax on persons who are admitted free of charge or at reduced rates to any place for which other persons pay a charge or a regular higher charge for the same or similar privileges or accommodations; and require that one who receives any admission charge to any place shall collect and remit the tax to the county treasurer of the county: PROVIDED, No county shall impose such tax on persons paying an admission to any activity of any elementary or secondary school.

(2) As used in this chapter, the term "admission charge" includes a charge made for season tickets or subscriptions, a cover charge, or a charge made for use of seats and tables, reserved or otherwise, and other similar accommodations; a charge made for food and refreshments in any place where any free entertainment, recreation, or amusement is provided; a charge made for rental or use of equipment or facilities for purpose of recreation or amusement, and where the rental of the equipment or facilities is necessary to the enjoyment of a privilege for which a general admission is charged, the combined charges shall be considered as the admission charge. It shall also include any automobile parking charge where the amount of such charge is determined according to the number of passengers in any automobile.

(3) The tax herein authorized shall not be exclusive and shall not prevent any city or town within the taxing county, when authorized by law, from imposing within its corporate limits a tax of the same or similar kind: PROVIDED, That whenever the same or similar kind of tax is imposed by any such city or town, no such tax shall be levied within the corporate limits of such city or town by the county, except that the legislative authority of a county with a population of one million or more may: (a) Exclusively levy a tax on events in stadiums constructed on or after January 1, 1995, that are owned by ((county government or)) a public facilities district under chapter 36.100 RCW and that have seating capacities over forty thousand at the rate of ((not more than)) one cent on twenty cents or fraction thereof; (b) exclusively levy an additional tax on events in stadiums constructed on or after January 1, 1995, that are owned by a public facilities district under chapter 36.100 RCW and that have seating capacities over forty thousand at the rate of not more than one cent on twenty cents or fraction thereof; and (c) additionally levy a tax on events in a multipurpose stadium constructed before January 1, 1995, that has a seating capacity of over forty-five thousand at the rate of not more than one cent on twenty cents or fraction thereof. The revenues under (a) of this subsection shall be used as provided in RCW 82.14.360(3). The revenues under (b) of this subsection shall be used to pay unanticipated capital costs on the baseball stadium, as defined in section 101 of this act. The revenues under (c) of this subsection shall be used for expanding, remodelling, repairing, or reequipping of a multipurpose stadium that has a seating capacity over forty-five thousand. No tax may be collected under (a) through (c) of this subsection unless the conditions of RCW 82.14.360 have been met.

(((4) By contract, the county shall obligate itself to provide the revenue from the tax authorized by this section on events in stadia owned, managed, or operated by a public facilities district, having seating capacities over forty thousand, and constructed on or after January 1, 1995, to the public facilities district.))

PART III

MISCELLANEOUS

Sec. 301. RCW 36.100.010 and 1995 1st sp.s. c 14 s 1 are each amended to read as follows:

(1) A public facilities district may be created in any county and shall be coextensive with the boundaries of the county.

(2) A public facilities district shall be created upon adoption of a resolution providing for the creation of such a district by the county legislative authority in which the proposed district is located.

(3) A public facilities district is a municipal corporation, an independent taxing "authority" within the meaning of Article VII, section 1 of the state Constitution, and a "taxing district" within the meaning of Article VII, section 2 of the state Constitution.

(4) No taxes authorized under this chapter may be assessed or levied unless a majority of the voters of the public facilities district has approved such tax at a general or special election. A single ballot proposition may both validate the imposition of the sales and use tax under RCW 82.14.048 and the excise tax under RCW 36.100.040.

(5) A public facilities district shall constitute a body corporate and shall possess all the usual powers of a corporation for public purposes as well as all other powers that may now or hereafter be specifically conferred by statute, including, but not limited to, the authority to hire employees, staff, and services, to enter into contracts, and to sue and be sued.

(6) The county legislative authority or the city council may transfer property to the public facilities district ((as part of the process of creating the public facilities district)) created under this chapter. No property that is encumbered with debt or that is in need of major capital renovation may be transferred to the district without the agreement of the district and revenues adequate to retire the existing indebtedness.

Sec. 302. RCW 36.100.020 and 1995 1st sp.s. c 14 s 2 are each amended to read as follows:

(1) A public facilities district shall be governed by a board of directors consisting of five or seven members as provided in this section. If the largest city in the county has a population that is at least forty percent of the total county population, the board of directors of the public facilities district shall consist of five members selected as follows: (a) Two members appointed by the county legislative authority to serve for four-year staggered terms; (b) two members appointed by the city council of the largest city in the county to serve for four-year staggered terms; and (c) one person to serve for a four-year term who is selected by the other directors. If the largest city in the county has a population of less than forty percent of the total county population, the county legislative authority shall establish in the resolution creating the public facilities district whether the board of directors of the public facilities district has either five or seven members, and the county legislative authority shall appoint the members of the board of directors to reflect the interests of cities and towns in the county, as well as the unincorporated area of the county. However, if the county has a population of one million or more, the largest city in the county has a population of less than forty percent of the total county population, and the county operates under a county charter, which provides for an elected county executive, three members shall be appointed by the governor and the remaining members shall be appointed by the county executive subject to confirmation by the county legislative authority. The speaker of the house of representatives and the majority leader of the senate shall each recommend to the governor a person to be appointed to the board.

(2) At least one member on the board of directors shall be representative of the lodging industry in the public facilities district before the public facilities district imposes the excise tax under RCW 36.100.040.

(3) Members of the board of directors shall serve four-year terms of office, except that two of the initial five board members or three of the initial seven board members shall serve two-year terms of office.

(4) A vacancy shall be filled in the same manner as the original appointment was made and the person appointed to fill a vacancy shall serve for the remainder of the unexpired term of the office for the position to which he or she was appointed.

(5) A director appointed by the governor may be removed from office by the governor. Any other director may be removed from office by action of at least two-thirds of the members of the legislative authority which made the appointment.

NEW SECTION. Sec. 303. A new section is added to chapter 36.100 RCW to read as follows:

In addition to other powers and restrictions on a public facilities district, the following shall apply to a public facilities district, located in a county with a population of one million or more, that constructs a baseball stadium:

(1) The public facilities district, in consultation with the professional baseball team that will use the stadium, shall have the authority to determine the stadium site;

(2) The public facilities district, in consultation with the professional baseball team that will use the stadium, shall have the authority to establish the overall scope of the stadium project, including, but not limited to, the stadium itself, associated parking facilities, associated retail and office development that are part of the stadium facility, and ancillary services or facilities;

(3) The public facilities district, in consultation with the professional baseball team that will use the stadium, shall have the final authority to make the final determination of the stadium design and specifications;

(4) The public facilities district shall have the authority to contract with the baseball team that will use the stadium to obtain architectural, engineering, environmental, and other professional services related to the stadium site and design options, environmental study requirements, and obtaining necessary permits for the stadium facility;

(5) The public facilities district, in consultation with the professional baseball team that will use the stadium, shall have the authority to establish the project budget and bidding specifications and requirements on the stadium project;

(6) The public facilities district, in consultation with the professional baseball team that will use the stadium and the county in which the public facilities district is located, shall have the authority to structure the financing of the stadium facility project;

(7) The public facilities district may choose to use the provisions of chapter 39.10 RCW in connection with the design, construction, reconstruction, remodel, or alteration of any of its stadium facility without respect to RCW 39.10.030 or the deadlines set forth in RCW 39.10.120; and

(8) The public facilities district shall consult with the house of representatives executive rules committee and the senate facilities and operations committee before selecting a name for the stadium.

As used in this section, "stadium" and "baseball stadium" mean a "baseball stadium" as defined in section 101 of this act.

Sec. 304. RCW 39.10.120 and 1994 c 132 s 12 are each amended to read as follows:

The alternative public works contracting procedures authorized under this chapter are limited to public works contracts signed before ((July 1)) December 31, 1997. Methods of public works contracting authorized ((by RCW 39.10.050 and 39.10.060)) under this chapter shall remain in full force and effect until completion of contracts signed before ((July 1)) December 31, 1997.

NEW SECTION. Sec. 305. RCW 39.10.902 and 1994 c 132 s 15 are each repealed.

Sec. 306. RCW 82.29A.130 and 1995 c 138 s 1 are each amended to read as follows:

The following leasehold interests shall be exempt from taxes imposed pursuant to RCW 82.29A.030 and 82.29A.040:

(1) All leasehold interests constituting a part of the operating properties of any public utility which is assessed and taxed as a public utility pursuant to chapter 84.12 RCW.

(2) All leasehold interests in facilities owned or used by a school, college or university which leasehold provides housing for students and which is otherwise exempt from taxation under provisions of RCW 84.36.010 and 84.36.050.

(3) All leasehold interests of subsidized housing where the fee ownership of such property is vested in the government of the United States, or the state of Washington or any political subdivision thereof but only if income qualification exists for such housing.

(4) All leasehold interests used for fair purposes of a nonprofit fair association that sponsors or conducts a fair or fairs which receive support from revenues collected pursuant to RCW 67.16.100 and allocated by the director of the department of agriculture where the fee ownership of such property is vested in the government of the United States, the state of Washington or any of its political subdivisions: PROVIDED, That this exemption shall not apply to the leasehold interest of any sublessee of such nonprofit fair association if such leasehold interest would be taxable if it were the primary lease.

(5) All leasehold interests in any property of any public entity used as a residence by an employee of that public entity who is required as a condition of employment to live in the publicly owned property.

(6) All leasehold interests held by enrolled Indians of lands owned or held by any Indian or Indian tribe where the fee ownership of such property is vested in or held in trust by the United States and which are not subleased to other than to a lessee which would qualify pursuant to this chapter, RCW 84.36.451 and 84.40.175.

(7) All leasehold interests in any real property of any Indian or Indian tribe, band, or community that is held in trust by the United States or is subject to a restriction against alienation imposed by the United States: PROVIDED, That this exemption shall apply only where it is determined that contract rent paid is greater than or equal to ninety percent of fair market rental, to be determined by the department of revenue using the same criteria used to establish taxable rent in RCW 82.29A.020(2)(b).

(8) All leasehold interests for which annual taxable rent is less than two hundred fifty dollars per year. For purposes of this subsection leasehold interests held by the same lessee in contiguous properties owned by the same lessor shall be deemed a single leasehold interest.

(9) All leasehold interests which give use or possession of the leased property for a continuous period of less than thirty days: PROVIDED, That for purposes of this subsection, successive leases or lease renewals giving substantially continuous use of possession of the same property to the same lessee shall be deemed a single leasehold interest: PROVIDED FURTHER, That no leasehold interest shall be deemed to give use or possession for a period of less than thirty days solely by virtue of the reservation by the public lessor of the right to use the property or to allow third parties to use the property on an occasional, temporary basis.

(10) All leasehold interests under month-to-month leases in residential units rented for residential purposes of the lessee pending destruction or removal for the purpose of constructing a public highway or building.

(11) All leasehold interests in any publicly owned real or personal property to the extent such leasehold interests arises solely by virtue of a contract for public improvements or work executed under the public works statutes of this state or of the United States between the public owner of the property and a contractor.

(12) All leasehold interests that give use or possession of state adult correctional facilities for the purposes of operating correctional industries under RCW 72.09.100.

(13) All leasehold interests used to provide organized and supervised recreational activities for disabled persons of all ages in a camp facility and for public recreational purposes by a nonprofit organization, association, or corporation that would be exempt from property tax under RCW 84.36.030(1) if it owned the property. If the publicly owned property is used for any taxable purpose, the leasehold excise taxes set forth in RCW 82.29A.030 and 82.29A.040 shall be imposed and shall be apportioned accordingly.

(14) All leasehold interests in the public or entertainment areas of a baseball stadium with natural turf and a retractable roof or canopy that is in a county with a population of over one million, that has a seating capacity of over forty thousand, and that is constructed on or after January 1, 1995. "Public or entertainment areas" include ticket sales areas, ramps and stairs, lobbies and concourses, parking areas, concession areas, restaurants, hospitality and stadium club areas, kitchens or other work areas primarily servicing other public or entertainment areas, public rest room areas, press and media areas, control booths, broadcast and production areas, retail sales areas, museum and exhibit areas, scoreboards or other public displays, storage areas, loading, staging, and servicing areas, seating areas and suites, the playing field, and any other areas to which the public has access or which are used for the production of the entertainment event or other public usage, and any other personal property used for these purposes. "Public or entertainment areas" does not include locker rooms or private offices exclusively used by the lessee.

NEW SECTION. Sec. 307. A new section is added to chapter 43.88 RCW to read as follows:

The legislature shall not make appropriations from the state general fund that will result in an unrestricted ending fund balance in the general fund of less than one hundred seven million dollars for any fiscal year.

This section shall expire when the bonds issued for the construction of the baseball stadium, as defined in section 101 of this act, are retired, but not more than twenty years after the bonds are issued.

NEW SECTION. Sec. 308. Part headings as used in this act constitute no part of the law.

NEW SECTION. Sec. 309. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately."

MOTION

At 6:33 p.m., on motion of Senator Gaspard, the Senate recessed until 6:45 p.m.

The Senate was called to order at 7:16 p.m. by President Pritchard.

MOTION

Senator Strannigan moved that the following amendment to the striking amendment by Senator Gaspard be adopted:

On page 1, after line 5, strike all material down through line 16 on page 19 and insert the following:

"PART I

STATE CONTRIBUTION

NEW SECTION. Sec. 101. A new section is added to chapter 43.79 RCW to read as follows:

Any moneys that may be donated to the state for the purpose of constructing a baseball stadium as defined in section 104 of this act shall be deposited in the sports bond retirement account under section 104 of this act.

NEW SECTION. Sec. 102. A new section is added to chapter 67.70 RCW to read as follows:

Sec. 103. RCW 67.70.240 and 1987 c 513 s 7 are each amended to read as follows:

The moneys in the state lottery account shall be used only: (1) For the payment of prizes to the holders of winning lottery tickets or shares; (2) for purposes of making deposits into the reserve account created by RCW 67.70.250 and into the lottery administrative account created by RCW 67.70.260; (3) for purposes of making deposits into the state's general fund; (4) for purposes of making deposits into the housing trust fund under the provisions of section 7 of this 1987 act; (5) for purposes of making deposits into the sports bond retirement account under section 104 of this act of revenues generated from games with sports themes under section 104 of this act; (6) for the purchase and promotion of lottery games and game-related services; and (((6))) (7) for the payment of agent compensation.

NEW SECTION. Sec. 104. A new section is added to chapter 43.79 RCW to read as follows:

(1) The sports bond retirement account is created in the custody of the state treasurer. The account shall be used exclusively for the payment of the principal and interest payments on up to twenty million dollars in bonds issued by a county with a population of one million or more to construct a baseball stadium. Interest and earnings on investments of moneys in the account shall be deposited into the account.

(2) The sports bond retirement account shall consist of all moneys deposited into the account under sections 101 and 102 of this act and interest and earnings on investments of moneys in the account under subsection (1) of this section.

(3) A county with a population of one million or more that has issued bonds to construct a baseball stadium shall, on or before June 30th of each year, certify to the state treasurer the amount needed in the ensuing twelve months to meet the bond retirement and interest requirements on twenty million dollars of bonds. On the date on which any such interest or principal and interest payment is due, the state treasurer shall withdraw and transmit to the county from the sports bond retirement account, an amount equal to the amount certified by the county to be due on the payment date. To the extend moneys in the account exceed the amount necessary, they shall be used for early retirement of the state's share of the bonds.

(4) The sports bond retirement account is abolished on the date of the retirement of the bonds issued by a county with a population of one million or more to construct a baseball stadium. Moneys remaining in the account shall be transferred to the state general fund on that date.

Sec. 105. RCW 43.79A.040 and 1995 c 394 s 2 and 1995 c 365 s 1 are each reenacted and amended to read as follows:

(2) All income received from investment of the treasurer's trust fund shall be set aside in an account in the treasury trust fund to be known as the investment income account.

(4)(a) Monthly, the state treasurer shall distribute the earnings credited to the investment income account to the state general fund except under (b) and (c) of this subsection.

(5) In conformance with Article II, section 37 of the state Constitution, no trust accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

NEW SECTION. Sec. 106. RCW 36.100.090 and 1995 1st sp.s. s 6 are each repealed.

NEW SECTION. Sec. 107. The rights to name the baseball stadium shall be sold for at least thirty million dollars. Moneys collected from the sale shall be remitted to the public facilities district in a county with a population of one million or more for the purpose of constructing a baseball stadium.

As used in this section, "baseball stadium" means "baseball stadium" as defined in section 104 of this act.

NEW SECTION. Sec. 108. A new section is added to chapter 82.08 RCW to read as follows:

The tax levied by RCW 82.08.020 shall not apply to sales of labor and materials on the construction of buildings, site preparation, and the acquisition of related machinery and equipment of a baseball stadium, as defined in section 104 of this act.

NEW SECTION. Sec. 109. A new section is added to chapter 82.12 RCW to read as follows:

The provisions of this chapter shall not apply with respect to the use of articles and services exempt from tax under section 108 of this act.

PART II

LOCAL FUNDING

Sec. 201. RCW 82.14.360 and 1995 1st sp.s. c 14 s 7 are each amended to read as follows:

(1) The legislative authority of a of a city in a county with a population of one million or more ((operating under a county charter)) may impose a special stadium sales and use tax ((by resolution adopted on or before December 31, 1995, for collection following its approval by a majority of the voters in the county at a general or special election)) upon the retail sale or use within the city by restaurants, taverns, and bars of food and beverages that are taxable by the state under chapters 82.08 and 82.12 RCW.

(2) The rate of the tax shall equal ((one-tenth of one)) 0.3 percent of the selling price in the case of a sales tax, or value of the article used in the case of a use tax. The tax imposed under this section shall not be credited against any other tax imposed upon the same taxable event.

(3) The revenue from the tax imposed under this section shall be transferred to the county and used for the purpose of principal and interest payments on bonds issued by ((a public facilities district, created within)) the county ((under chapter 36.100 RCW,)) to acquire, construct, own, remodel, maintain, equip, reequip, repair, and operate a baseball stadium ((with a retractable roof or canopy and natural turf. If the revenue from the tax imposed under this section exceeds the amount needed for such principal and interest payments in any year, the excess shall be used solely)). Bonds shall be issued to acquire, construct, own, and equip the baseball stadium in an amount determined to be necessary by the public facilities district but not greater than one hundred fifteen million dollars. Revenues from the tax imposed under this section in excess of the amount needed for principal and interest payments in any year may be used for ((either or both: (a) )) early retirement of the bonds issued for the baseball stadium; or (((b) retirement of bonds issued for expanding, remodelling, repairing, or reequipping of a multipurpose stadium that has a seating capacity over forty-five thousand)) placed in a contingency fund which may only be used to pay unanticipated capital costs on the baseball stadium.

(4) The tax authorized under this section may be collected only after the county executive has certified to the department of revenue that a professional major league baseball team has made a binding and legally enforceable contractual commitment to:

(a) Play at least ninety percent of its home games in the stadium for a period of time not shorter than the term of the bonds issued to finance the initial construction of the stadium;

(b) Contribute ((principal of)) at least forty-five million dollars toward the ((bonded)) reasonably necessary preconstruction costs including, but not limited to architectural, engineering, environmental, and legal services, and the cost of construction of the stadium, or to any associated public purpose separate from bond-financed property, including without limitation land acquisition, parking facilities, equipment, infrastructure or other similar costs associated with the project, which contribution shall be made during a term not to exceed the term of the bonds issued to finance the initial construction of the stadium. If all or part of the contribution is made after the date of issuance of the bonds, the team shall contribute an additional amount equal to the accruing interest on the deferred portion of the contribution, calculated at the interest rate on the bonds maturing in the year in which the deferred contribution is made. No part of the contribution may be made without the consent of the county until a public facilities district is created under chapter 36.100 RCW to acquire, construct, own, remodel, maintain, equip, reequip, repair, and operate a baseball stadium. To the extent possible, contributions shall be structured in a manner that would allow for the issuance of bonds to construct the stadium that are exempt from federal income taxes;

(((c))) (d) Share a portion of the profits generated by the baseball team from the operation of the professional franchise for a period of time equal to the term of the bonds issued to finance the initial construction of the stadium, after offsetting any losses incurred by the baseball team after the effective date of chapter 14, Laws of 1995 1st sp. sess. Such profits and the portion to be shared shall be defined by agreement between the public facilities district and the baseball team. The shared profits shall be used to retire the bonds issued to finance the initial construction of the stadium. If the bonds are retired before the expiration of their term, the shared profits shall be paid to the public facilities district.

(5) No tax may be collected under this section before January 1, 1996. Before imposing the taxes under this section or issuing bonds for a baseball stadium, the county shall create a public facilities district under chapter 36.100 RCW to acquire, construct, own, remodel, maintain, equip, reequip, repair, and operate a baseball stadium, and the county shall acquire and contribute to the district such real property as the district determines to be necessary as a site for the baseball stadium. The proceeds of any bonds issued for the baseball stadium or any other facility that the district will own shall be provided to the district.

(6) As used in this section, "baseball stadium" means "baseball stadium" as defined in section 104 of this act.

(7) The tax imposed under this section shall expire when the bonds issued for the construction of the ((new public facilities)) baseball stadium are retired, but not later than twenty years after the tax is first collected.

Sec. 202. RCW 35.21.280 and 1995 1st sp.s. c 14 s 8 are each amended to read as follows:

The term "admission charge" includes:

(1) A charge made for season tickets or subscriptions;

(2) A cover charge, or a charge made for use of seats and tables reserved or otherwise, and other similar accommodations;

(3) A charge made for food and refreshment in any place where free entertainment, recreation or amusement is provided;

(5) Automobile parking charges if the amount of the charge is determined according to the number of passengers in the automobile.

Sec. 203. RCW 36.38.010 and 1995 1st sp.s. c 14 s 9 are each amended to read as follows:

(4) By contract, the county shall obligate itself to provide the revenue from the tax authorized by this section on events in stadia owned, managed, or operated by a public facilities district, having seating capacities over forty thousand, and constructed on or after January 1, 1995, to the public facilities district.

NEW SECTION. Sec. 204. A professional major league baseball team may use the proceeds from the sale of personal seat licenses in the baseball stadium, as defined in section 104 of this act, to acquire, construct, own, remodel, maintain, equip, reequip, repair, and operate the baseball stadium.

NEW SECTION. Sec. 205. Moneys shall only be spent for the baseball stadium, as defined in section 104 of this act, by the public facilities district on a matching basis with public and private funds, and private funds shall equal at least one hundred million dollars."

MOTION

After explaining the amendment to the striking amendment, and there being no objection, Senator Strannigan withdrew the amendment to the striking amendment by Senator Gaspard.

MOTION

Senator Gaspard moved that the following amendment to the striking amendment by Senator Gaspard be adopted:

On page 19, line 1 of the amendment strike all of NEW SECTION. Sec 307 and renumber

Debate ensued.

The President declared the question before the Senate to be the adoption of the amendment on page 19, line 1 to the striking amendment by Senator Gaspard to Senate Bill No. 6085.

The motion by Senator Gaspard carried and the amendment on page 19, line 1 to the striking amendment by Senator Gaspard was adopted.

The President declared the question before the Senate to be the adoption of the striking amendment by Senator Gaspard, as amended, to Senate Bill No. 6085.

Debate ensued.

Senator Snyder demanded a roll call and the demand was sustained.

The President declared the question before the Senate to be the roll call on the adoption of the striking amendment by Senator Gaspard, as amended, to Senate Bill No. 6085.

ROLL CALL

The Secretary called the roll and the striking amendment by Senator Gaspard, as amended, to Senate Bill No. 6085 was not adopted by the following vote: Yeas, 16; Nays, 28; Absent, 0; Excused, 5.

Voting yea: Senators Drew, Franklin, Gaspard, Hargrove, Haugen, Kohl, McAuliffe, Pelz, Prentice, Rinehart, Sheldon, Smith, Snyder, Spanel, Sutherland and Thibaudeau - 16.

Voting nay: Senators Anderson, A., Bauer, Cantu, Deccio, Fairley, Finkbeiner, Fraser, Hale, Hochstatter, Johnson, Loveland, McCaslin, McDonald, Morton, Newhouse, Oke, Owen, Palmer, Prince, Rasmussen, Roach, Schow, Sellar, Strannigan, Swecker, West, Wojahn and Wood - 28.

Excused: Senators Heavey, Long, Moyer, Quigley and Winsley - 5.

MOTION

At 7:31 p.m., Senator Gaspard moved that the Senate adjourn until 10:00 a.m., Saturday, October 14, 1995.

Senator McDonald objected to the motion to adjourn until 10:00 a.m., Saturday, October 14, 1995.

Debate ensued.

Senator Newhouse demanded a roll call and the demand was sustained.

The President declared the question before the Senate to be the roll call on the motion by Senator Gaspard to adjourn until 10:00 a.m., Saturday, October 14, 1995.

ROLL CALL

The Secretary called the roll and the motion by Senator Gaspard to adjourn carried by the following vote: Yeas, 23; Nays, 21; Absent, 0; Excused, 5.

Voting yea: Senators Bauer, Drew, Fairley, Franklin, Fraser, Gaspard, Hargrove, Haugen, Kohl, Loveland, McAuliffe, Owen, Pelz, Prentice, Rasmussen, Rinehart, Sheldon, Smith, Snyder, Spanel, Sutherland, Thibaudeau and Wojahn - 23.

Voting nay: Senators Anderson, A., Cantu, Deccio, Finkbeiner, Hale, Hochstatter, Johnson, McCaslin, McDonald, Morton, Newhouse, Oke, Palmer, Prince, Roach, Schow, Sellar, Strannigan, Swecker, West and Wood - 21.

Excused: Senators Heavey, Long, Moyer, Quigley and Winsley - 5.

At 7:34 p.m., on the motion by Senator Gaspard, the Senate adjourned until 10:00 a.m., Saturday, October 14, 1995.

JOEL PRITCHARD, President of the Senate

MARTY BROWN, Secretary of the Senate