PFD formation

AN ACT Relating to public facilities districts; and amending RCW 1
35.57.010 and 36.100.010. 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:3
Sec. 1. RCW 35.57.010 and 2023 c 218 s 1 are each amended to 4
read as follows: 5
(1)(a) The legislative authority of any town or city located in a 6
county with a population of less than one million may create a public 7
facilities district. 8
(b) The legislative authorities of any contiguous group of towns 9
or cities located in a county or counties each with a population of 10
less than one million may enter an agreement under chapter 39.34 RCW 11
for the creation and joint operation of a public facilities district.12
(c) The legislative authority of any town or city, or any 13
contiguous group of towns or cities, located in a county with a 14
population of less than one million and the legislative authority of 15
a contiguous county, or the legislative authority of the county or 16
counties in which the towns or cities are located, may enter into an 17
agreement under chapter 39.34 RCW for the creation and joint 18
operation of a public facilities district. 19
(d) The legislative authority of a city located in a county with 20
a population greater than one million may create a public facilities 21
H-0197.1
HOUSE BILL 1037
State of Washington 69th Legislature 2025 Regular Session
By Representatives Dent and Ybarra
Prefiled 12/11/24. Read first time 01/13/25. Referred to Committee
on Local Government.
p. 1 HB 1037
district, when the city has a total population of less than one 1
hundred fifteen thousand but greater than eighty thousand and 2
commences construction of a regional center prior to July 1, 2008.3
(e) At least three contiguous towns or cities with a combined 4
population of at least one hundred sixty thousand, each of which 5
previously created a public facilities district under (a) of this 6
subsection, may create an additional public facilities district. The 7
previously created districts may continue their full corporate 8
existence and activities notwithstanding the creation and existence 9
of the additional district within the same geographic area.10
(f) The legislative authority of two or more contiguous towns or 11
cities or the legislative authority of two or more contiguous towns 12
or cities and the legislative authority of the county or counties in 13
which the towns or cities are located, each of which participated in 14
the creation of a public facilities district under (c) of this 15
subsection, may create an additional public facilities district. Any 16
previously created district may continue its full corporate existence 17
and activities notwithstanding the creation and existence of an 18
additional district within the same geographic area. A public 19
facilities district formed under this subsection (1)(f) must be 20
created prior to July 1, 2026. The creation of a public facilities 21
district under this subsection does not require all of the original 22
participating towns, cities, or counties that created a public 23
facilities district under (c) of this subsection to participate in 24
the formation of the additional public facilities district under this 25
subsection. 26
(2)(a) A public facilities district is coextensive with the 27
boundaries of the city or town or contiguous group of cities or towns 28
that created the district. 29
(b) A public facilities district created by an agreement between 30
a town or city, or a contiguous group of towns or cities, and a 31
contiguous county or the county in which they are located, is 32
coextensive with the boundaries of the towns or cities, and the 33
boundaries of the county or counties as to the unincorporated areas 34
of the county or counties , unless the agreement provides for only a 35
portion of the unincorporated areas of the county or counties be 36
included within the district, in which case only the designated 37
portions are included . The boundaries do not include incorporated 38
towns or cities that are not parties to the agreement for the 39
creation and joint operation of the district. 40
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(3)(a) A public facilities district created by a single city or 1
town shall be governed by a board of directors consisting of five 2
members selected as follows: (i) Two members appointed by the 3
legislative authority of the city or town; and (ii) three members 4
appointed by legislative authority based on recommendations from 5
local organizations. The members appointed under (a)(i) of this 6
subsection, shall not be members of the legislative authority of the 7
city or town. The members appointed under (a)(ii) of this subsection, 8
must be based on recommendations received from local organizations 9
that may include, but are not limited to, the local chamber of 10
commerce, local economic development council, and local labor 11
council. The members shall serve four-year terms. Of the initial 12
members, one must be appointed for a one-year term, one must be 13
appointed for a two-year term, one must be appointed for a three-year 14
term, and the remainder must be appointed for four-year terms.15
(b) A public facilities district created by a contiguous group of 16
cities and towns must be governed by a board of directors consisting 17
of seven members selected as follows: (i) Three members appointed by 18
the legislative authorities of the cities and towns; and (ii) four 19
members appointed by the legislative authorities of the cities and 20
towns based on recommendations from local organizations. The members 21
appointed under (b)(i) of this subsection shall not be members of the 22
legislative authorities of the cities and towns. The members 23
appointed under (b)(ii) of this subsection, must be based on 24
recommendations received from local organizations that include, but 25
are not limited to, the local chamber of commerce, local economic 26
development council, local labor council, and a neighborhood 27
organization that is directly affected by the location of the 28
regional center in their area. The members of the board of directors 29
must be appointed in accordance with the terms of the agreement under 30
chapter 39.34 RCW for the joint operation of the district and shall 31
serve four-year terms. Of the initial members, one must be appointed 32
for a one-year term, one must be appointed for a two-year term, one 33
must be appointed for a three-year term, and the remainder must be 34
appointed for four-year terms. 35
(c)(i) A public facilities district created by a town or city, or 36
a contiguous group of towns or cities, and a contiguous county or the 37
county or counties in which they are located that includes the 38
entirety of the county or counties within the boundary of the 39
district, must be governed by a board of directors consisting of 40
p. 3 HB 1037
seven members selected as follows: (((i))) (A) Three members 1
appointed by the legislative authorities of the cities, towns, and 2
county; and (((ii))) (B) four members appointed by the legislative 3
authorities of the cities, towns, and county based on recommendations 4
from local organizations. The members appointed under (c)(i)(A) of 5
this subsection shall not be members of the legislative authorities 6
of the cities, towns, or county. The members appointed under (c)7
(((ii)))(i)(B) of this subsection must be based on recommendations 8
received from local organizations that include, but are not limited 9
to, the local chamber of commerce, the local economic development 10
council, the local labor council, and a neighborhood organization 11
that is directly affected by the location of the regional center in 12
their area. The members of the board of directors must be appointed 13
in accordance with the terms of the agreement under chapter 39.34 RCW 14
for the joint operation of the district and shall serve four-year 15
terms. Of the initial members, one must be appointed for a one-year 16
term, one must be appointed for a two -year term, one must be 17
appointed for a three-year term, and the remainder must be appointed 18
for four-year terms. 19
(ii) A public facilities district created by a town or city, or a 20
contiguous group of towns or cities, and a contiguous county or the 21
county or counties in which they are located that includes less than 22
the entirety of the unincorporated county or counties within the 23
boundaries of the district, must be governed by a board of directors 24
consisting of a minimum of seven members selected as follows: (A) 25
Each city, town, or county's legislative authority may appoint one 26
elected official from its jurisdiction; and (B) four members 27
appointed by the legislative authorities of the cities, towns, and 28
county based on recommendations from local organizations.29
(iii) The members appointed under (c)(ii)(B) of this subsection 30
must be based on recommendations received from local organizations 31
that include, but are not limited to, the local chamber of commerce, 32
the local economic development council, the local labor council, and 33
a neighborhood organization that is directly affected by the location 34
of the regional center in their area. The members of the board of 35
directors must be appointed in accordance with the terms of the 36
agreement under chapter 39.34 RCW for the joint operation of the 37
district and serve four-year terms. Of the initial members, one must 38
be appointed for a one-year term, one must be appointed for a two 39
p. 4 HB 1037
year term, one must be appointed for a three-year term, and the 1
remainder must be appointed for four-year terms. 2
(d)(i) A public facilities district created under subsection 3
(1)(e) of this section must provide, in the agreement providing for 4
its creation and operation, that the district must be governed by an 5
odd-numbered board of directors of not more than nine members who are 6
also members of the legislative authorities that created the public 7
facilities district or of the governing boards of the public 8
facilities districts previously created by those legislative 9
authorities, or both. 10
(ii) A board of directors formed under this subsection must have 11
an equal number of members representing each city or town 12
participating in the public facilities district. If there are 13
unfilled board member positions after each city or town has appointed 14
an equal number of board members, the members so appointed must 15
appoint a number of additional board members necessary to fill any 16
remaining positions. For a board formed under this subsection to 17
submit a proposition to the voters under RCW 82.14.048, a majority of 18
the members representing or appointed by each legislative authority 19
participating in the public facilities district must agree to submit 20
the proposition to the voters. 21
(4) A public facilities district is a municipal corporation, an 22
independent taxing "authority" within the meaning of Article VII, 23
section 1 of the state Constitution, and a "taxing district" within 24
the meaning of Article VII, section 2 of the state Constitution.25
(5) A public facilities district constitutes a body corporate and 26
possesses all the usual powers of a corporation for public purposes 27
as well as all other powers that may now or hereafter be specifically 28
conferred by statute including, but not limited to, the authority to 29
hire employees, staff, and services, to enter into contracts, and to 30
sue and be sued. 31
(6) A public facilities district may acquire and transfer real 32
and personal property by lease, sublease, purchase, or sale. No 33
direct or collateral attack on any public facilities district 34
purported to be authorized or created in conformance with this 35
chapter may be commenced more than thirty days after creation by the 36
city and/or county legislative authority. 37
(7) If a county or counties participated in the creation of a 38
public facilities district under this chapter, the treasurer of the 39
county in which the largest proportion of the district is located 40
p. 5 HB 1037
shall serve as the ex officio treasurer of the district, unless the 1
board of the public facilities districts designates the treasurer of 2
a city or town that participated in the creation of the public 3
facilities district or other person having the necessary experience 4
and qualifications to perform the duties of treasurer. Such a 5
treasurer possesses all of the powers, responsibilities, and duties 6
of, and is subject to the same restrictions as provided by law for, a 7
county treasurer with regard to district financial matters. Such 8
treasurer must be bonded for not less than $25,000.9
Sec. 2. RCW 36.100.010 and 2010 1st sp.s. c 15 s 2 are each 10
amended to read as follows: 11
(1) One or more public facilities districts may be created in any 12
county and must be coextensive with the boundaries of the county.13
(2) A public facilities district is created upon adoption of a 14
resolution providing for the creation of such a district by the 15
county legislative authority in which the proposed district is 16
located. 17
(3) A public facilities district is a municipal corporation, an 18
independent taxing "authority" within the meaning of Article VII, 19
section 1 of the state Constitution, and a "taxing district" within 20
the meaning of Article VII, section 2 of the state Constitution.21
(4) Except as provided in RCW 36.100.040 (4) and (5), no taxes 22
authorized under this chapter may be assessed or levied unless a 23
majority of the voters of the public facilities district has approved 24
such tax at a general or special election. A single ballot 25
proposition may both validate the imposition of the sales and use tax 26
under RCW 82.14.048 and the excise tax under RCW 36.100.040(1).27
(5)(a) A public facilities district constitutes a body corporate 28
and possesses all the usual powers of a corporation for public 29
purposes as well as all other powers that may now or hereafter be 30
specifically conferred by statute, including, but not limited to, the 31
authority to hire employees, staff, and services, to enter into 32
contracts, including contracts with public and private parties, to 33
acquire, own, sell, transfer, lease, and otherwise acquire or dispose 34
of property, to grant concessions under terms approved by the public 35
facilities district, and to sue and be sued. 36
(b) A public facilities district created by a county with a 37
population of one million five hundred thousand or more to acquire, 38
own, and operate a convention and trade center transferred from a 39
p. 6 HB 1037
public nonprofit corporation may continue to contract with the 1
Seattle-King county convention and visitors' bureau or its successor 2
in interest for marketing the convention and trade center facility 3
and services. 4
(6) A public facilities district may enter into contracts with a 5
county for the purpose of exercising any powers of a community 6
renewal agency under chapter 35.81 RCW. 7
(7) The legislative authority of a city or county, the board of 8
directors of a public nonprofit corporation, or the state of 9
Washington may transfer property to a public facilities district 10
created under this chapter, with or without consideration. No 11
property that is encumbered with debt or that is in need of major 12
capital renovation may be transferred to the district without the 13
agreement of the district and revenues adequate to retire the 14
existing indebtedness. 15
(8) A public facilities district may enter into agreements with 16
the state, any municipal corporation, or any other governmental 17
entity for the design, financing, acquisition, development, 18
construction, reconstruction, lease, remodeling, alteration, 19
maintenance, equipping, reequipping, repair, operation, or management 20
of one or more facilities of the parties thereto. Agreements may 21
provide that any party to the contract designs, finances, acquires, 22
develops, constructs, reconstructs, remodels, alters, maintains, 23
equips, reequips, repairs, and operates one or more facilities for 24
the other party or parties to the contract. A public facilities 25
district may enter into an agreement with the state, any municipal 26
corporation, or other public or private entity that will assist a 27
public facilities district in the financing of all or any part of a 28
district facility on such terms as may be determined by agreement 29
between the respective parties, including without limitation by a 30
loan, guaranty, or other financing agreement. 31
(9) Nothing in this chapter prohibits a county from participating 32
in the creation and operation of a public facilities district as 33
provided for in chapter 35.57 RCW.34
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