HB 1069 — Concerning local government fiscal flexibility.

up to forty percent may be used to supplant existing funding in calendar year 2014;

up to twenty percent may be used to supplant existing funding in calendar year 2015;

and up to ten percent may be used to supplant existing funding in calendar year 2016;

and (d) Notwithstanding (a) through (c) of this subsection, moneys collected under this section may be used to support the cost of the judicial officer and support staff of a therapeutic court.

(5) Nothing in this section may be interpreted to prohibit the use of moneys collected under this section for the replacement of lapsed federal funding previously provided for the operation or delivery of services and programs as provided in this section.

7.

RCW 67.28.180 and 2015 c 102 s 3 are each amended to read as follows:

(1) Subject to the conditions set forth in subsections (2) and (3) of this section, the legislative body of any county or any city, p.

11 HB 1069 is authorized to levy and collect a special excise tax of not to exceed two percent on the sale of or charge made for the furnishing of lodging that is subject to tax under chapter 82.08 RCW.

(2) Any levy authorized by this section is subject to the following:

(a) Any county ordinance or resolution adopted pursuant to this section must contain, in addition to all other provisions required to conform to this chapter, a provision allowing a credit against the county tax for the full amount of any city tax imposed pursuant to this section upon the same taxable event.

(b)(i) In the event that any county has levied the tax authorized by this section and has, prior to June 26, 1975, either pledged the tax revenues for payment of principal and interest on city revenue or general obligation bonds authorized and issued pursuant to RCW 67.28.150 ((through [and])) and 67.28.160 or has authorized and issued revenue or general obligation bonds pursuant to the provisions of RCW 67.28.150 ((through [and])) and 67.28.160, such county is exempt from the provisions of (a) of this subsection, to the extent that the tax revenues are pledged for payment of principal and interest on bonds issued at any time pursuant to the provisions of RCW 67.28.150 ((through [and])) and 67.28.160.

However, so much of such pledged tax revenues, together with any investment earnings thereon, not immediately necessary for actual payment of principal and interest on such bonds may be used:

(A) In any county with a population of ((one million five hundred thousand)) 1,500,000 or more, for repayment either of limited tax levy general obligation bonds or of any county fund or account from which a loan was made, the proceeds from the bonds or loan being used to pay for constructing, installing, improving, and equipping stadium capital improvement projects, and to pay for any engineering, planning, financial, legal and professional services incident to the development of such stadium capital improvement projects, regardless of the date the debt for such capital improvement projects was or may be incurred;

(B) in any county with a population of ((one million five hundred thousand)) 1,500,000 or more, for repayment or refinancing of bonded indebtedness incurred prior to January 1, 1997, for any purpose authorized by this section or relating to stadium repairs or rehabilitation, including but not limited to the cost of settling legal claims, reimbursing operating funds, interest payments on short-term loans, and any other purpose for which such debt has p.

12 HB 1069 been incurred if the county has created a public stadium authority to develop a stadium and exhibition center under RCW 36.102.030;

or (C) in other counties, for county-owned facilities for agricultural promotion until January 1, 2009, and thereafter for any purpose authorized in this chapter.

(ii) A county is exempt under this subsection with respect to city revenue or general obligation bonds issued after April 1, 1991, only if such bonds mature before January 1, 2013.

If any county located east of the crest of the Cascade mountains has levied the tax authorized by this section and has, prior to June 26, 1975, pledged the tax revenue for payment of principal and interest on city revenue or general obligation bonds, the county is exempt under this subsection with respect to revenue or general obligation bonds issued after January 1, 2007, only if the bonds mature before January 1, 2035.

Such a county may only use funds under this subsection (2)(b) for constructing or improving facilities authorized under this chapter, including county-owned facilities for agricultural promotion.

(iii) As used in this subsection (2)(b), "capital improvement projects" may include, but not be limited to a stadium restaurant facility, restroom facilities, artificial turf system, seating facilities, parking facilities and scoreboard and information system adjacent to or within a county owned stadium, together with equipment, utilities, accessories and appurtenances necessary thereto.

The stadium restaurant authorized by this subsection (2)(b) must be operated by a private concessionaire under a contract with the county.

(c)(i) No city within a county exempt under (b) of this subsection may levy the tax authorized by this section so long as said county is so exempt.

(ii) No city within a county with a population of ((one million five hundred thousand)) 1,500,000 or more may levy the tax authorized by this section.

(iii) However, in the event that any city in a county described in (c)(i) or (ii) of this subsection (2) has levied the tax authorized by this section and has, prior to June 26, 1975, authorized and issued revenue or general obligation bonds pursuant to the provisions of RCW 67.28.150 ((through [and])) and 67.28.160, such city may levy the tax so long as the tax revenues are pledged for payment of principal and interest on bonds issued at any time p.

13 HB 1069 pursuant to the provisions of RCW 67.28.150 ((through [and])) and 67.28.160.

(3) Any levy authorized by this section by a county that has a population of ((one million five hundred thousand)) 1,500,000 or more is subject to the following:

(a) Taxes collected under this section in any calendar year before 2013 in excess of ((five million three hundred thousand dollars)) $5,300,000 may only be used as follows:

(i) ((Seventy)) 70 percent from January 1, 2001, through December 31, 2012, for art museums, cultural museums, heritage museums, the arts, and the performing arts.

Moneys spent under this subsection (3)(a)(i) must be used for the purposes of this subsection (3)(a)(i) in all parts of the county.

(ii) ((Thirty)) 30 percent from January 1, 2001, through December 31, 2012, for the following purposes and in a manner reflecting the following order of priority:

Stadium purposes as authorized under subsection (2)(b) of this section;

acquisition of open space lands;

youth sports activities;

and tourism promotion.

If all or part of the debt on the stadium is refinanced, all revenues under this subsection (3)(a)(ii) must be used to retire the debt.

(b) From January 1, 2013, through December 31, 2015, all revenues under this section must be used to retire the debt on the stadium, until the debt on the stadium is retired.

On and after the date the debt on the stadium is retired, and through December 31, 2015, all revenues under this section in a county of ((one million five hundred thousand)) 1,500,000 or more must be deposited in the special account under (e) of this subsection.

(c) From January 1, 2016, through December 31, 2020, all revenues under this section must be either deposited in the stadium and exhibition center account under RCW 43.99N.060 or used for housing and rental assistance.

(d) ((On and after January 1, 2021)) After the effective date of this section through December 31, 2023, the revenues under this section may be used for housing and rental assistance.

Housing and rental assistance includes, but is not limited to, the provision of housing for individuals requiring shelter, supportive housing, or isolation and quarantine due to contagious illness or other health conditions.

Revenues on or after December 31, 2023, must be used as follows:

p.

14 HB 1069 (i) At least ((thirty-seven and one-half)) 37.5 percent of the revenues under this section must be deposited in the special account under (e) of this subsection.

(ii) At least ((thirty-seven and one-half)) 37.5 percent of the revenues under this section must be used:

(A) For contracts, loans, or grants to nonprofit organizations or public housing authorities for affordable workforce housing within one-half mile of a transit station, as described under RCW 9.91.025 or for services for homeless youth;

or (B) To repay:

(I) General obligation bonds issued pursuant to RCW 67.28.150 to finance such contracts, loans, or grants;

or (II) Revenue bonds issued pursuant to RCW 67.28.160 to finance a fund to make such contracts, loans, or grants;

or (III) Revenue bonds issued pursuant to RCW 67.28.160 to finance projects authorized by an authority under chapter 43.167 RCW to promote sustainable workplace opportunities near a community impacted by the construction or operation of tourism-related facilities.

(iii) The remainder must be used for capital or operating programs that promote tourism and attract tourists to the county.

(e) At least ((forty)) 40 percent of the revenues distributed pursuant to (a)(i) of this subsection must be deposited in a special account.

The account may only be used for the purposes of (a)(i) of this subsection.

(f) School districts and schools may not receive revenues distributed pursuant to (a)(i) of this subsection.

(g) Moneys distributed to art museums, cultural museums, heritage museums, the arts, and the performing arts, and moneys distributed for tourism promotion must be in addition to and may not be used to replace or supplant any other funding by the legislative body of the county.

(h) For the purposes of this section:

(i) "Affordable workforce housing" means housing for a single person, family, or unrelated persons living together whose income is between ((thirty)) 30 percent and ((eighty)) 80 percent of the median income, adjusted for household size, for the county where the housing is located;

and (ii) "Tourism promotion" includes activities intended to attract visitors for overnight stays, arts, heritage, and cultural events, and recreational, professional, and amateur sports events.

Moneys p.

15 HB 1069 allocated to tourism promotion in a county with a population of ((one million)) 1,000,000 or more must be allocated to local public organizations and nonprofit organizations formed for the express purpose of tourism promotion in the county.

Such organizations must use moneys from the taxes to promote events in all parts of the county.

(i) No taxes collected under this section may be used for the operation or maintenance of a public stadium that is financed directly or indirectly by bonds to which the tax is pledged.

Expenditures for operation or maintenance include all expenditures other than expenditures that directly result in new fixed assets or that directly increase the capacity, life span, or operating economy of existing fixed assets.

(j) No ad valorem property taxes may be used for debt service on bonds issued for a public stadium that is financed by bonds to which the tax is pledged, unless the taxes collected under this section are or are projected to be insufficient to meet debt service requirements on such bonds.

(k) If a substantial part of the operation and management of a public stadium that is financed directly or indirectly by bonds to which the tax is pledged is performed by a nonpublic entity or if a public stadium is sold that is financed directly or indirectly by bonds to which the tax is pledged, any bonds to which the tax is pledged shall be retired.

This subsection (3)(k) does not apply in respect to a public stadium under chapter 36.102 RCW transferred to, owned by, or constructed by a public facilities district under chapter 36.100 RCW or a stadium and exhibition center.

(l) The county may not lease a public stadium that is financed directly or indirectly by bonds to which the tax is pledged to, or authorize the use of the public stadium by, a professional major league sports franchise unless the sports franchise gives the right of first refusal to purchase the sports franchise, upon its sale, to local government.

This subsection (3)(l) does not apply to contracts in existence on April 1, 1986.

(4) If a court of competent jurisdiction declares any provision of subsection (3) of this section invalid, then that invalid provision is null and void and the remainder of this section is not affected.

p.

16 HB 1069 Sec.

RCW 67.28.1816 and 2013 c 196 s 1 are each amended to read as follows:

(1) Lodging tax revenues under this chapter may be used, directly by any municipality or indirectly through a convention and visitors bureau or destination marketing organization for:

(a) Tourism marketing;

(b) The marketing and operations of special events and festivals designed to attract tourists;

(c) Supporting the operations and capital expenditures of tourism-related facilities owned or operated by a municipality or a public facilities district created under chapters 35.57 and 36.100 RCW;

((or)) (d) Supporting the operations of tourism-related facilities owned or operated by nonprofit organizations described under 26 U.S.C.

Sec.

501(c)(3) and 26 U.S.C.

Sec.

501(c)(6) of the internal revenue code of 1986, as amended;

or (e) After the effective date of this section through December 31, 2023, housing and rental assistance.

Housing and rental assistance includes, but is not limited to, the provision of housing for individuals requiring shelter, supportive housing, or isolation and quarantine due to contagious illness or other health conditions.

(2)(a) Except as provided in (b) of this subsection, or to any revenue used after the effective date of this section through December 31, 2023, applicants applying for use of revenues in this chapter must provide the municipality to which they are applying estimates of how any moneys received will result in increases in the number of people traveling for business or pleasure on a trip:

(i) Away from their place of residence or business and staying overnight in paid accommodations;

(ii) To a place ((fifty)) 50 miles or more one way from their place of residence or business for the day or staying overnight;

or (iii) From another country or state outside of their place of residence or their business.

(b)(i) In a municipality with a population of ((five thousand)) 5,000 or more, applicants applying for use of revenues in this chapter must submit their applications and estimates described under (a) of this subsection to the local lodging tax advisory committee.

(ii) The local lodging tax advisory committee must select the candidates from amongst the applicants applying for use of revenues in this chapter and provide a list of such candidates and recommended p.

17 HB 1069 amounts of funding to the municipality for final determination.

The municipality may choose only recipients from the list of candidates and recommended amounts provided by the local lodging tax advisory committee.

(c)(i) All recipients must submit a report to the municipality describing the actual number of people traveling for business or pleasure on a trip:

(A) Away from their place of residence or business and staying overnight in paid accommodations;

(B) To a place ((fifty)) 50 miles or more one way from their place of residence or business for the day or staying overnight;

or (C) From another country or state outside of their place of residence or their business.

A municipality receiving a report must:

Make such report available to the local legislative body and the public;

and furnish copies of the report to the joint legislative audit and review committee and members of the local lodging tax advisory committee.

(ii) The joint legislative audit and review committee must on a biennial basis report to the economic development committees of the legislature on the use of lodging tax revenues by municipalities.

Reporting under this subsection must begin in calendar year 2015.

(d) This section does not apply to the revenues of any lodging tax authorized under this chapter imposed by a county with a population of ((one million five hundred thousand)) 1,500,000 or more.

Sec.

9.

(1)(a) "Sale at retail" or "retail sale" means every sale of tangible personal property (including articles produced, fabricated, or imprinted) to all persons irrespective of the nature of their business and including, among others, without limiting the scope hereof, persons who install, repair, clean, alter, improve, p.construct, or decorate real or personal property of or for consumers other than a sale to a person who:

13 SHB 1069 construct, or decorate real or personal property of or for consumers other than a sale to a person who:

or (ii)p. Installs, repairs, cleans, alters, imprints, improves, constructs, or decorates real or personal property of or for consumers, if such tangible personal property becomes an ingredient or component of such real or personal property without intervening use by such person;

18 HB 1069 (ii) Installs, repairs, cleans, alters, imprints, improves, constructs, or decorates real or personal property of or for consumers, if such tangible personal property becomes an ingredient or component of such real or personal property without intervening use by such person;

p.(2) The term "sale at retail" or "retail sale" includes the sale of or charge made for tangible personal property consumed and/or for labor and services rendered in respect to the following:

14(a) SHB 1069 (2) The terminstalling, "salerepairing, atcleaning, retail"altering, imprinting, or "retailimproving sale"of includestangible thepersonal saleproperty of or chargefor consumers, including charges made for tangiblethe personalmere propertyuse consumedof and/orfacilities forin laborrespect andthereto, servicesbut renderedexcluding incharges respectmade tofor the following:use of self-service p.

(a)19 TheHB installing,1069 repairing, cleaning, altering, imprinting, or improving of tangible personal property of or for consumers, including charges made for the mere use of facilities in respect thereto, but excluding charges made for the use of self-service laundry facilities, and also excluding sales of laundry service to nonprofit health care facilities, and excluding services rendered in respect to live animals, birds and insects;

p.(f) The furnishing of lodging and all other services by a hotel, rooming house, tourist court, motel, trailer camp, and the granting of any similar license to use real property, as distinguished from the renting or leasing of real property, and it is presumed that the occupancy of real property for a continuous period of one month or more constitutes a rental or lease of real property and not a mere license to use or enjoy the same.

15For SHB 1069 (f) The furnishing of lodging and all other services by a hotel, rooming house, tourist court, motel, trailer camp, and the grantingpurposes of anythis similarsubsection, license to use real property, as distinguished from the renting or leasing of real property, and it is presumed that the occupancysale of real property for a continuous period of one month or more constitutes a rental or lease of real property and notcharge amade merefor license to use or enjoy the same.p.

For20 theHB purposes1069 of this subsection, it is presumed that the sale of and charge made for the furnishing of lodging for a continuous period of one month or more to a person is a rental or lease of real property and not a mere license to enjoy the samesame. .

p.(e) Service charges associated with tickets to professional sporting events;

16 SHB 1069 (e) Service charges associated with tickets to professional sporting events;

(ii)p. Notwithstanding anything to the contrary in (g)(i) of this subsection (3), the term "sale at retail" and "retail sale" under this subsection does not include:

21 HB 1069 (ii) Notwithstanding anything to the contrary in (g)(i) of this subsection (3), the term "sale at retail" and "retail sale" under this subsection does not include:

p.(F) Services provided in the regular course of employment by an employee with access to an athletic or fitness facility maintained by the employer for use without charge by its employees or their family members;

17 SHB 1069 (F) Services provided in the regular course of employment by an employee with access to an athletic or fitness facility maintained by the employer for use without charge by its employees or their family members;

However, charges made by an educational institution to its alumni or other members of the public for the use of any of the educational institution's athletic or fitness facilities are a retail sale under thisp. subsection (3)(g).

22 HB 1069 this subsection (3)(g).

(C) "Physical fitness activities" means activities that involve physical exertion for the purpose of improving or maintaining the general fitness, strength, flexibility, conditioning, or health of p.the participant.

18 SHB 1069 the participant.

(5)p. The term also includes the providing of "competitive telephone service," "telecommunications service," or "ancillary services," as those terms are defined in RCW 82.04.065, to consumers.

23 HB 1069 (5) The term also includes the providing of "competitive telephone service," "telecommunications service," or "ancillary services," as those terms are defined in RCW 82.04.065, to consumers.

For purposes of this subsection, "extended warranty" means an agreement for a specified duration to p.perform the replacement or repair of tangible personal property at no additional charge or a reduced charge for tangible personal property, labor, or both, or to provide indemnification for the replacement or repair of tangible personal property, based on the occurrence of specified events.

19The SHBterm 1069"extended performwarranty" thedoes replacementnot orinclude repairan ofagreement, tangibleotherwise personalmeeting propertythe atdefinition noof additionalextended chargewarranty orin athis reducedsubsection, chargeif forno tangibleseparate personalcharge property,is labor,made or both, or to provide indemnification for the replacementagreement orand repairp. of tangible personal property, based on the occurrence of specified events.

The24 termHB "extended1069 warranty" does not include an agreement, otherwise meeting the definition of extended warranty in this subsection, if no separate charge is made for the agreement and the value of the agreement is included in the sales price of the tangible personal property covered by the agreement.

(10) The term does not include the sale of or charge made for labor and services rendered in respect to the building, repairing, or p.improving of any street, place, road, highway, easement, right-of- way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle which is owned by a municipal corporation or political subdivision of the state or by the United States and which is used or to be used primarily for foot or vehicular traffic including mass transportation vehicles of any kind.

20p. SHB 1069 improving of any street, place, road, highway, easement, right-of- way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle which is owned by a municipal corporation or political subdivision of the state or by the United States and which is used or to be used primarily for foot or vehicular traffic including mass transportation vehicles of any kind.

25 HB 1069 (11) The term also does not include sales of chemical sprays or washes to persons for the purpose of postharvest treatment of fruit for the prevention of scald, fungus, mold, or decay, nor does it include sales of feed, seed, seedlings, fertilizer, agents for enhanced pollination including insects such as bees, and spray materials to:

(13) The term does not include the sale of or charge made for labor, services, or tangible personal property pursuant to agreements providing maintenance services for bus, rail, or rail fixed guideway equipment when a regional transit authority is the recipient of the labor, services, or tangible personal property, and a transit agency, as defined in RCW 81.104.015, performs the labor or services.

2126 SHBHB 1069 (13)(14) The term does not include the sale of or charge made for labor,resale services,of orany tangibleservice personaldescribed propertyin pursuantthis tosection agreementsif providingthe maintenancesale serviceswould forotherwise bus,constitute rail, or rail fixed guideway equipment when a regional"sale transitat authorityretail" is the recipient of the labor, services, or tangible personal property, and a"retail transitsale" agency,under asthis definedsection. in RCW 81.104.015, performs the labor or services.

(14) The term does not include the sale for resale of any service described in this section if the sale would otherwise constitute a "sale at retail" and "retail sale" under this section.

p.(iv) Access to amusement park, theme park, and water park facilities, including but not limited to charges for admission and locker or cabana rentals.

22 SHB 1069 (iv) Access to amusement park, theme park, and water park facilities, including but not limited to charges for admission and locker or cabana rentals.

For the purposes of this subsection, an amusement park or theme park is a location that provides permanently affixed amusement rides, games,p. and other entertainment, but does not include parks or zoos for which the primary purpose is the exhibition of wildlife, or fairs, carnivals, and festivals as defined in (b)(i) of this subsection;

27 HB 1069 games, and other entertainment, but does not include parks or zoos for which the primary purpose is the exhibition of wildlife, or fairs, carnivals, and festivals as defined in (b)(i) of this subsection;

(xiii) Swimming, but only in respect to (A) recreational or fitness swimming that is open to the public, such as open swim, lap swimming, and special events like kids night out and pool parties during open swim time, and (B) pool parties for private events, such p.as birthdays, family gatherings, and employee outings.

23 SHB 1069 as birthdays, family gatherings, and employee outings.

(xv)p. Indoor or outdoor playground activities, such as inflatable bounce structures and other inflatables;

28 HB 1069 (xv) Indoor or outdoor playground activities, such as inflatable bounce structures and other inflatables;

(B) permits issued by a governmental entity to park a vehicle on or access public p.lands;

24 SHB 1069 lands;

(b)p. Notwithstanding anything to the contrary in this subsection (15), the term "sale at retail" or "retail sale" does not include charges:

29 HB 1069 (b) Notwithstanding anything to the contrary in this subsection (15), the term "sale at retail" or "retail sale" does not include charges:

9.10.

p.(i) Purchases for the purpose of resale as tangible personal property in the regular course of business without intervening use by such person, but a purchase for the purpose of resale by a regional transit authority under RCW 81.112.300 is not a sale for resale;

25or SHB(ii) 1069Installs, (i)repairs, Purchasescleans, foralters, theimprints, purposeimproves, ofconstructs, resaleor asdecorates tangiblereal or personal property in the regular course of businessor withoutfor interveningconsumers, useif by such person,tangible butpersonal aproperty purchasebecomes foran theingredient purposep. of resale by a regional transit authority under RCW 81.112.300 is not a sale for resale;

or30 (ii)HB Installs,1069 repairs, cleans, alters, imprints, improves, constructs, or decorates real or personal property of or for consumers, if such tangible personal property becomes an ingredient or component of such real or personal property without intervening use by such person;

(a) The installing, repairing, cleaning, altering, imprinting, or improving of tangible personal property of or for consumers, including charges made for the mere use of facilities in respect thereto, but excluding charges made for the use of self-service laundry facilities, and also excluding sales of laundry service to nonprofit health care facilities, and excluding services rendered in respect to live animals, birds and insects;

2631 SHBHB 1069 (a)(b) The installing,constructing, repairing, cleaning,decorating, altering, imprinting, or improving of tangiblenew personalor existing buildings or other structures under, upon, or above real property of or for consumers, including chargesthe madeinstalling foror theattaching mereof useany article of facilitiestangible inpersonal respectproperty therein or thereto, butwhether excludingor chargesnot madesuch forpersonal theproperty usebecomes a part of self-servicethe laundryrealty facilities,by virtue of installation, and also excludingincludes salesthe sale of laundryservices serviceor tocharges nonprofitmade healthfor carethe facilities,clearing of land and excludingthe servicesmoving renderedof inearth respectexcepting tothe livemere animals,leveling birdsof andland insects;used in commercial farming or agriculture;

(b) The constructing, repairing, decorating, or improving of new or existing buildings or other structures under, upon, or above real property of or for consumers, including the installing or attaching of any article of tangible personal property therein or thereto, whether or not such personal property becomes a part of the realty by virtue of installation, and also includes the sale of services or charges made for the clearing of land and the moving of earth excepting the mere leveling of land used in commercial farming or agriculture;

(f) The furnishing of lodging and all other services by a hotel, rooming house, tourist court, motel, trailer camp, and the granting of any similar license to use real property, as distinguished from the renting or leasing of real property, and it is presumed that the p.occupancy of real property for a continuous period of one month or more constitutes a rental or lease of real property and not a mere license to use or enjoy the same.

27 SHB 1069 occupancy of real property for a continuous period of one month or more constitutes a rental or lease of real property and not a mere license to use or enjoy the same.

For the purposes of this section, it is presumed thatp. the sale of and charge made for the furnishing of lodging offered regularly for public occupancy for periods of less than a month constitutes a license to use or enjoy the property subject to sales and use tax and not a rental or lease of property;

32 HB 1069 that the sale of and charge made for the furnishing of lodging offered regularly for public occupancy for periods of less than a month constitutes a license to use or enjoy the property subject to sales and use tax and not a rental or lease of property;

and p.(g)(i) Operating an athletic or fitness facility, including all charges for the use of such a facility or for any associated services and amenities, except as provided in (g)(ii) of this subsection.

28 SHB 1069 (g)(i) Operating an athletic or fitness facility, including all charges for the use of such a facility or for any associated services and amenities, except as provided in (g)(ii) of this subsection.

(A)p. Separately stated charges for the use of an athletic or fitness facility where such use is primarily for a purpose other than engaging in or receiving instruction in a physical fitness activity;

33 HB 1069 (A) Separately stated charges for the use of an athletic or fitness facility where such use is primarily for a purpose other than engaging in or receiving instruction in a physical fitness activity;

However, p.charges made by an educational institution to its alumni or other members of the public for the use of any of the educational institution's athletic or fitness facilities are a retail sale under this subsection (3)(g).

29 SHB 1069 charges made by an educational institution to its alumni or other members of the public for the use of any of the educational institution's athletic or fitness facilities are a retail sale under this subsection (3)(g).

(H)p. Yoga, chi gong, or martial arts classes, training, or events held at a community center, park, school gymnasium, college or university, hospital or other medical facility, private residence, or any other facility that is not operated within and as part of an athletic or fitness facility.

34 HB 1069 (H) Yoga, chi gong, or martial arts classes, training, or events held at a community center, park, school gymnasium, college or university, hospital or other medical facility, private residence, or any other facility that is not operated within and as part of an athletic or fitness facility.

p.(b) The term does not include the renting or leasing of tangible personal property where the lease or rental is for the purpose of sublease or subrent.

30 SHB 1069 (b) The term does not include the renting or leasing of tangible personal property where the lease or rental is for the purpose of sublease or subrent.

(6)(a) The term also includes the sale of prewritten computer software to a consumer, regardless of the method of delivery to the endp. user.

35 HB 1069 end user.

For purposes of this subsection, "extended warranty" means an agreement for a specified duration to perform the replacement or repair of tangible personal property at no additional charge or a reduced charge for tangible personal property, labor, or both, or to provide indemnification for the replacement or repair of tangible personal property, based on the occurrence of p.specified events.

31 SHB 1069 specified events.

(8)(a)p. The term also includes the following sales to consumers of digital goods, digital codes, and digital automated services:

36 HB 1069 (8)(a) The term also includes the following sales to consumers of digital goods, digital codes, and digital automated services:

(10) The term does not include the sale of or charge made for labor and services rendered in respect to the building, repairing, or improving of any street, place, road, highway, easement, right-of- way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle which is owned by a municipal corporation or political subdivision of the state or by the United States and which p.is used or to be used primarily for foot or vehicular traffic including mass transportation vehicles of any kind.

32(11) SHBThe 1069term isalso useddoes not include sales of chemical sprays or washes to bepersons usedfor primarilythe purpose of postharvest treatment of fruit for footthe prevention of scald, fungus, mold, or vehiculardecay, trafficnor includingdoes massit transportationinclude vehiclessales of anyfeed, kind.seed, seedlings, fertilizer, agents for enhanced pollination including insects such as bees, and spray p.

(11)37 TheHB term1069 also does not include sales of chemical sprays or washes to persons for the purpose of postharvest treatment of fruit for the prevention of scald, fungus, mold, or decay, nor does it include sales of feed, seed, seedlings, fertilizer, agents for enhanced pollination including insects such as bees, and spray materials to:

(13) The term does not include the sale of or charge made for labor, services, or tangible personal property pursuant to agreements providing maintenance services for bus, rail, or rail fixed guideway equipment when a regional transit authority is the recipient of the p.labor, services, or tangible personal property, and a transit agency, as defined in RCW 81.104.015, performs the labor or services.

33 SHB 1069 labor, services, or tangible personal property, and a transit agency, as defined in RCW 81.104.015, performs the labor or services.

(15)(a) The term "sale at retail" or "retail sale" includes amounts charged, however labeled, to consumers to engage in any of the activities listed in this subsection (15)(a), including the furnishingp. of any associated equipment or, except as otherwise provided in this subsection, providing instruction in such activities, where such charges are not otherwise defined as a "sale at retail" or "retail sale" in this section:

38 HB 1069 furnishing of any associated equipment or, except as otherwise provided in this subsection, providing instruction in such activities, where such charges are not otherwise defined as a "sale at retail" or "retail sale" in this section:

p.For the purposes of this subsection, an amusement park or theme park is a location that provides permanently affixed amusement rides, games, and other entertainment, but does not include parks or zoos for which the primary purpose is the exhibition of wildlife, or fairs, carnivals, and festivals as defined in (b)(i) of this subsection;

34 SHB 1069 For the purposes of this subsection, an amusement park or theme park is a location that provides permanently affixed amusement rides, games, and other entertainment, but does not include parks or zoos for which the primary purpose is the exhibition of wildlife, or fairs, carnivals, and festivals as defined in (b)(i) of this subsection;

(vi)p. Bowling, but not including competitive events, except that amounts paid by the event participants to the bowling alley operator are retail sales under this subsection (15)(a)(vi).

39 HB 1069 (vi) Bowling, but not including competitive events, except that amounts paid by the event participants to the bowling alley operator are retail sales under this subsection (15)(a)(vi).

p.(xiv) Go-karting, bumper cars, and other motorized activities where the seller provides the vehicle and the premises where the buyer will operate the vehicle;

35 SHB 1069 (xiv) Go-karting, bumper cars, and other motorized activities where the seller provides the vehicle and the premises where the buyer will operate the vehicle;

and human gyroscope rides, regardless of whether such activities occur at the seller's place of business, but not including playground activitiesp. provided for children by a licensed child day care center or licensed family day care provider as those terms are defined in RCW 43.216.010;

40 HB 1069 activities provided for children by a licensed child day care center or licensed family day care provider as those terms are defined in RCW 43.216.010;

and p.(xx) Scuba diving;

36 SHB 1069 (xx) Scuba diving;

For the purposes of this subsection, fairs, carnivals,p. and festivals are events that do not exceed ((twenty-one)) 21 days and a majority of the amusement rides, if any, are not affixed to real property;

41 HB 1069 carnivals, and festivals are events that do not exceed ((twenty-one)) 21 days and a majority of the amusement rides, if any, are not affixed to real property;

10.11.

(2)(a) The legislative authority of any county or any city may impose an excise tax on each sale of real property in the p.unincorporated areas of the county for the county tax and in the corporate limits of the city for the city tax at a rate not exceeding one-quarter of one percent of the selling price.

37 SHB 1069 unincorporated areas of the county for the county tax and in the corporate limits of the city for the city tax at a rate not exceeding one-quarter of one percent of the selling price.

(b)p. ((After)) Except as provided in subsection (8) of this section, after April 30, 1992, revenues generated from the tax imposed under this subsection (2) in counties over ((five thousand)) 5,000 population and cities over ((five thousand)) 5,000 population that are required or choose to plan under RCW 36.70A.040 must be used solely for financing capital projects specified in a capital facilities plan element of a comprehensive plan and housing relocation assistance under RCW 59.18.440 and 59.18.450.

42 HB 1069 (b) ((After)) Except as provided in subsection (8) of this section, after April 30, 1992, revenues generated from the tax imposed under this subsection (2) in counties over ((five thousand)) 5,000 population and cities over ((five thousand)) 5,000 population that are required or choose to plan under RCW 36.70A.040 must be used solely for financing capital projects specified in a capital facilities plan element of a comprehensive plan and housing relocation assistance under RCW 59.18.440 and 59.18.450.

p.(a) "City" means any city or town.

38 SHB 1069 (a) "City" means any city or town.

river floodp. control projects;

43 HB 1069 flood control projects;

(8) After the effective date of this section through December 31, 2023, a city or county may use therevenue greaterfrom ofa $100,000tax orimposed 35 percent of available funds under this section for the operation of, maintenance of, and service support for, existing capital projects, including the provision of services to residents of affordable housing or shelter units.

11.12.

(1) ((A)) After the effective date of this section through December 31, 2023, a city or county may use the greater of $100,000 or 3525 percent of available funds from revenues collected under RCW 82.46.010 for the maintenance of,of operation of, and service support for, existing capital projects, as defined in RCW 82.46.010,82.46.010. and including the provision of services to residents of affordable housing or shelter units.

p.(2) After December 31, 2023, a city or county that meets the requirements of subsection (((2))) (3) of this section may use the greater of ((one hundred thousand dollars)) $100,000 or ((twenty- five)) 25 percent of available funds, but not to exceed ((one million dollars)) $1,000,000 per year, from revenues collected under RCW 82.46.010 for the maintenance of capital projects, as defined in RCW 82.46.010(((6)(b))).

39 SHB 1069 (2) After December 31, 2023, a city or county that meets the requirements of subsection (((2))) (3) of this section may use the greater of ((one hundred thousand dollars)) $100,000 or ((twenty- five)) 25 percent of available funds, but not to exceed ((one million dollars)) $1,000,000 per year, from revenues collected under RCW 82.46.010 for the maintenance of capital projects, as defined in RCW 82.46.010(((6)(b))).

(a) The city or county prepares a written report demonstrating that it has or will have adequate funding from all sources of public funding to pay for all capital projects, as defined in RCW 82.46.010, identified in its capital facilities plan for the succeeding two-year period.p.

44 HB 1069 period.

p.(((4))) (5) The authority to use funds as authorized in this section is in addition to the authority to use funds pursuant to RCW 82.46.010(7), which remains in effect through December 31, 2016.

40 SHB 1069 (((4))) (5) The authority to use funds as authorized in this section is in addition to the authority to use funds pursuant to RCW 82.46.010(7), which remains in effect through December 31, 2016.

12.13.

(1) ((The)) Except for revenues used after the effective date of this section through December 31, 2023, as provided in subsection (3) ofp. this section, the legislative authority of any county or city must identify in the adopted budget the capital projects funded in whole or in part from the proceeds of the tax authorized in this section, and must indicate that such tax is intended to be in addition to other funds that may be reasonably available for such capital projects.

45 HB 1069 of this section, the legislative authority of any county or city must identify in the adopted budget the capital projects funded in whole or in part from the proceeds of the tax authorized in this section, and must indicate that such tax is intended to be in addition to other funds that may be reasonably available for such capital projects.

(3) Revenues generated from the tax imposed under subsection (2) of this section must be used by such counties and cities solely for financing capital projects specified in a capital facilities plan element of a comprehensive plan, except that the greater of $100,000 or 35 percent of revenues may additionally be used for the operation of, maintenance of, and service support for, existing capital projects after the effective date of this section through December 31, 2023.

However, revenues (a) pledged by such counties and cities p.to debt retirement prior to March 1, 1992, may continue to be used for that purpose until the original debt for which the revenues were pledged is retired, or (b) committed prior to March 1, 1992, by such counties or cities to a project may continue to be used for that purpose until the project is completed.

41 SHB 1069 to debt retirement prior to March 1, 1992, may continue to be used for that purpose until the original debt for which the revenues were pledged is retired, or (b) committed prior to March 1, 1992, by such counties or cities to a project may continue to be used for that purpose until the project is completed.

(a) Planning, acquisition, construction, reconstruction, repair, replacement, rehabilitation, or improvement of streets, roads, highways, sidewalks, street and road lighting systems, traffic signals,p. bridges, domestic water systems, storm and sanitary sewer systems;

46 HB 1069 signals, bridges, domestic water systems, storm and sanitary sewer systems;

p.Sec.

4214. SHB 1069 Sec.

13.

(1) A city or county that meets the requirements of subsection (2) of this section may use the greater of ((one hundred thousand dollars)) $100,000 or ((twenty-five)) 25 percent of available funds, but not to exceed ((one million dollars)) $1,000,000 per year, except for the period from the effective date of this section through December 31, 2023, when the greaterfunds ofused $100,000may ornot 35((to)) percentexceed may((one bemillion useddollars)) $1,000,000 per year, from revenues collected under RCW 82.46.035 for:

((and))and (b) The planning, acquisition, construction, reconstruction, repair, replacement, rehabilitation, improvement, or maintenance of capitalp. projects as defined in RCW 82.46.010(6)(b) that are not also included within the definition of capital projects in RCW 82.46.035(5);

and47 (c)HB The1069 operationcapital of,projects andas servicedefined supportin for,RCW existing82.46.010(6)(b) capitalthat projectsare asnot also included inwithin the definition of capital projectprojects in RCW 82.46.035(5)82.46.035(5). and 82.46.010(6)(b), from the effective date of this section through December 31, 2023.

or p.(iii) For a city or county using funds under subsection (1)(b) of this section, the requirements of this subsection apply, except that the date for such enactment under (b)(i) of this subsection is ninety days after October 19, 2017.

43 SHB 1069 (iii) For a city or county using funds under subsection (1)(b) of this section, the requirements of this subsection apply, except that the date for such enactment under (b)(i) of this subsection is ninety days after October 19, 2017.

(4) For purposes of this section, "maintenance" means the use of funds for labor and materials that will preserve, prevent the decline of,p. or extend the useful life of a capital project.

48 HB 1069 of, or extend the useful life of a capital project.

14.15.

p.(2)(a) Subject to statutory dollar limitations, a proposition placed before the voters under this section may authorize annual increases in levies for multiple consecutive years, up to six consecutive years, during which period each year's authorized maximum legal levy shall be used as the base upon which an increased levy limit for the succeeding year is computed, but the ballot proposition must state the dollar rate proposed only for the first year of the consecutive years and must state the limit factor, or a specified index to be used for determining a limit factor, such as the consumer price index, which need not be the same for all years, by which the regular tax levy for the district may be increased in each of the subsequent consecutive years.

44 SHB 1069 (2)(a) Subject to statutory dollar limitations, a proposition placed before the voters under this section may authorize annual increases in levies for multiple consecutive years, up to six consecutive years, during which period each year's authorized maximum legal levy shall be used as the base upon which an increased levy limit for the succeeding year is computed, but the ballot proposition must state the dollar rate proposed only for the first year of the consecutive years and must state the limit factor, or a specified index to be used for determining a limit factor, such as the consumer price index, which need not be the same for all years, by which the regular tax levy for the district may be increased in each of the subsequent consecutive years.

(b)(i)p. Except as otherwise provided in this subsection (2)(b), funds raised by a levy under this subsection may not supplant existing funds used for the limited purpose specified in the ballot title.

49 HB 1069 (b)(i) Except as otherwise provided in this subsection (2)(b), funds raised by a levy under this subsection may not supplant existing funds used for the limited purpose specified in the ballot title.

(ii) The supplanting limitations in (b)(i) of this subsection do not apply to levies approved by the voters in calendar years 2009, 2010, ((and)) 2011, 2015, 2016, 2017, 2018, 2019, 2020, 2021, and 2022, in any county with a population of ((one million five hundred thousand)) 1,500,000 or more.

(3) After a levy authorized pursuant to this section is made, the dollar amount of such levy may not be used for the purpose of computing the limitations for subsequent levies provided for in this p.chapter, unless the ballot proposition expressly states that the levy made under this section will be used for this purpose.

45 SHB 1069 chapter, unless the ballot proposition expressly states that the levy made under this section will be used for this purpose.

and (ii)p. For districts other than a district under (c)(i) of this subsection, the period for which the increased levies are made may not exceed nine years;

50 HB 1069 (ii) For districts other than a district under (c)(i) of this subsection, the period for which the increased levies are made may not exceed nine years;

15.16.

(1) Except as provided in RCW 35.21.217(4) and in subsection (2) of this section, cities and towns owning their own waterworks, or p.electric light or power plants shall have a lien against the premises to which water, electric light, or power services were furnished for four months charges therefor due or to become due, but not for any charges more than four months past due.

46 SHB 1069 electric light or power plants shall have a lien against the premises to which water, electric light, or power services were furnished for four months charges therefor due or to become due, but not for any charges more than four months past due.

or (b) Three months of the ratepayer's failure to abide by the terms of an agreed payment plan, if the payment plan for past due charges wouldp. have allowed the ratepayer to repay the past due charges over a period of six months or more.

51 HB 1069 would have allowed the ratepayer to repay the past due charges over a period of six months or more.

16.17.

(here insert legal description of premises) p.Said lien is claimed for not exceeding six months such charges and interest now delinquent, amount to $.

47 SHB 1069 Said lien is claimed for not exceeding six months such charges and interest now delinquent, amount to $.

In such circumstances, a lien may be filed for all charges duep. during the period covered by the declaration and may be effective for six months after the expiration of the declaration of the emergency.

52 HB 1069 due during the period covered by the declaration and may be effective for six months after the expiration of the declaration of the emergency.

17.

Section 9 of this act takes effect July 1, 2022.

NEW SECTION.

Sec.

Section 810 of this act expirestakes effect July 1, 2022.

ExceptSection for section 9 of this act, this act isexpires necessaryJuly for1, the2022. immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.

NEW SECTION.

Sec.

20.

Except for section 10 of this act, 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 takes effect immediately.

4853 SHBHB 1069