wa-law.org > bill > 2025-26 > HB 1037 > Second Substitute
One or more public facilities districts may be created in any county and must be coextensive with the boundaries of the county.
Until December 31, 2060, one public facilities district may be created by an agreement between a town or city, or a contiguous group of towns or cities, and the county in which they are located, the county being located along the eastern crest of the Cascade mountains with a population of less than 50,000. The district is coextensive with the boundaries of the towns or cities, and the boundaries of school districts selected to be included in the district within the county. The boundaries do not include incorporated towns or cities that are not parties to the agreement for the creation and joint operation of the district.
A public facilities district is 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.
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.
Except as provided in RCW 36.100.040 (4) and (5), 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(1).
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A public facilities district constitutes a body corporate and possesses 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, including contracts with public and private parties, to acquire, own, sell, transfer, lease, and otherwise acquire or dispose of property, to grant concessions under terms approved by the public facilities district, and to sue and be sued.
A public facilities district created by a county with a population of 1,500,000 or more to acquire, own, and operate a convention and trade center transferred from a public nonprofit corporation may continue to contract with the Seattle-King county convention and visitors' bureau or its successor in interest for marketing the convention and trade center facility and services.
A public facilities district may enter into contracts with a county for the purpose of exercising any powers of a community renewal agency under chapter 35.81 RCW.
The legislative authority of a city or county, the board of directors of a public nonprofit corporation, or the state of Washington may transfer property to a public facilities district created under this chapter, with or without consideration. 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.
A public facilities district may enter into agreements with the state, any municipal corporation, or any other governmental entity for the design, financing, acquisition, development, construction, reconstruction, lease, remodeling, alteration, maintenance, equipping, reequipping, repair, operation, or management of one or more facilities of the parties thereto. Agreements may provide that any party to the contract designs, finances, acquires, develops, constructs, reconstructs, remodels, alters, maintains, equips, reequips, repairs, and operates one or more facilities for the other party or parties to the contract. A public facilities district may enter into an agreement with the state, any municipal corporation, or other public or private entity that will assist a public facilities district in the financing of all or any part of a district facility on such terms as may be determined by agreement between the respective parties, including without limitation by a loan, guaranty, or other financing agreement.
Nothing in this chapter prohibits a county from participating in the creation and operation of a public facilities district as provided for in chapter 35.57 RCW.
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A public facilities district must be governed by a board of directors consisting of five, seven, or nine members as provided in this section.
If the largest city in the county in which the public facilities district created under RCW 36.100.010(1) is located has a population that is at least 40 percent of the total county population, the board of directors of the public facilities district must consist of five members selected as follows:
Two members appointed by the county legislative authority to serve for four-year staggered terms;
Two members appointed by the city council of the largest city in the county to serve for four-year staggered terms; and
One person to serve for a four-year term who is selected by the other directors.
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Except as provided in (c)(ii) of this subsection (1), if the largest city in the county in which the public facilities district created under RCW 36.100.010(1) is located has a population of less than 40 percent of the total county population, the county legislative authority must 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 must 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 1,500,000 or more, the largest city in the county has a population of less than 40 percent of the total county population, and the county operates under a county charter, which provides for an elected county executive, the members of the board of directors must be appointed as follows:
(A) If the public facilities district is created to construct a baseball stadium as defined in RCW 82.14.0485, three members must be appointed by the governor and the remaining members must be appointed by the county executive subject to confirmation by the county legislative authority. Of the members appointed by the governor, the speaker of the house of representatives and the majority leader of the senate must each recommend to the governor a person to be appointed to the board; and
(B) If the public facilities district is created to acquire, own, and operate a convention and trade center, following the expiration of the terms of the initial board of directors, three members must be appointed by the governor, three members must be nominated by the county executive subject to confirmation by the county legislative authority, and three members must be nominated by the mayor of the city in which the convention and trade center is located subject to confirmation by the city legislative authority. Members of the board of directors may not be members of the legislative authority of the county or any city within the county.
d. The initial board of directors of a public facilities district created in a county of 1,500,000 or more to acquire, own, and operate a convention and trade center must be comprised of the nine members of the board of the public nonprofit corporation that transfers the convention and trade center to the public facilities district under RCW 36.100.230. The governor must designate which of the initial board members must serve two-year terms and which must serve four-year terms and identify the board positions to which successors to initial directors are to be appointed by the county and the city.
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i. Until December 31, 2060, the public facilities district created under RCW 36.100.010(2) that includes less than the entirety of the unincorporated county within the boundaries of the district as provided in RCW 36.100.010(2), must be governed by a board of directors consisting of a minimum of seven members selected as follows: (A) Each city, town, or county's legislative authority may appoint one elected official from its jurisdiction; and (B) four members appointed by the legislative authorities of the cities, towns, and county based on recommendations from local organizations.
ii. The members appointed under (e)(i)(B) of this subsection must be based on recommendations received from local organizations that include, but are not limited to, the local chamber of commerce, the local economic development council, the local labor council, and a neighborhood organization that is directly affected by the location of the facility in their area. The members of the board of directors must be appointed in accordance with the terms of the agreement under chapter 39.34 RCW for the joint operation of the district and serve four-year terms.
iii. Until December 31, 2060, the treasurer of the county in which the public facilities district created under RCW 36.100.010(2) is located shall serve as the ex officio treasurer of the district, unless the board of the public facilities district designates the treasurer of a city or town that participated in the creation of the public facilities district or other person having the necessary experience and qualifications to perform the duties of treasurer. Such a treasurer possesses all of the powers, responsibilities, and duties of, and is subject to the same restrictions as provided by law for, a county treasurer with regard to district financial matters. Such treasurer must be bonded for not less than $25,000.
At least one member on the board of directors must 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(1). Of the members of the board of directors of a public facilities district created in a county of 1,500,000 or more to acquire, own, and operate a convention and trade center, one of the governor's appointments and one of the county's appointments must be representative of the lodging industry in the public facilities district and one of the city's appointments must be representative of organized labor, except that these requirements do not apply to the initial board of such district.
Members of the board of directors must serve four-year terms of office, except that two of the initial five board members, three of the initial seven board members, and four of the initial nine board members must serve two-year terms of office.
A vacancy must be filled in the same manner as the original appointment was made and the person appointed to fill a vacancy must serve for the remainder of the unexpired term of the office for the position to which he or she was appointed.
Any director may be removed from office by the person or entity that appointed or confirmed such director for any reason or for no reason as follows: A director appointed by the governor may be removed from office by the governor; and any director confirmed by a city or county legislative authority may be removed from office by action of at least two-thirds of the members of the legislative authority that confirmed the director.