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2SHB 1037

Momentum Bucket Early Stage
Legal Title AN ACT Relating to public facilities districts;
Bill Description Concerning public facilities district formation.
What this bill does
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This bill amends existing law (RCW 36.100.010 and RCW 36.100.020) governing public facilities districts (PFDs). It clarifies where PFDs may be created (generally coextensive with county boundaries), creates a time-limited exception through December 31, 2060 allowing a PFD in certain small eastern Cascade counties to be created by agreement among a county and participating towns/cities and selected school district boundaries, and confirms that creation occurs by county legislative authority resolution. It modifies tax approval and voting procedures by continuing the requirement that most taxes under the chapter be approved by a majority of district voters (with cross-references to RCW 36.100.040) and permits a single ballot proposition to validate both a sales and use tax and an excise tax under the referenced provisions. The bill sets or revises many governance and procedural rules: it reconfirms that a PFD is a municipal corporation and an independent taxing authority, lists PFD powers (employment, contracting, property acquisition/transfer/lease, concessions, litigation), authorizes property transfers subject to debt and renovation conditions, and allows broad contracting and financing arrangements including loans and guarantees. It prescribes board sizes (five, seven, or nine members) and detailed appointment formulas based on county population and largest-city population share (including a 40% threshold and a 1,500,000 population threshold), special appointment rules for PFDs created to construct baseball stadiums or to acquire/operate convention and trade centers in large charter counties, initial board composition when a convention center is transferred from a nonprofit, and representation requirements (including at least one lodging industry representative before imposing the excise tax and certain lodging and labor representation for convention center PFDs). It also specifies member terms (generally four years with staggered initial shorter terms), vacancy filling, and that any director may be removed by the person or entity that appointed or confirmed them, with gubernatorial appointees removable by the governor. The bill includes temporary governance and fiscal officer rules effective through December 31, 2060 for the special PFD described above: a governance board of at least seven members with local appointment and recommendation processes, and the county treasurer serving ex officio as district treasurer unless the board designates another qualified treasurer; that treasurer must have the powers and duties of a county treasurer regarding district finances and be bonded for at least $25,000. The text references multiple related statutes and constitutional provisions (including RCW 36.100.040, RCW 82.14.048, RCW 82.14.0485, chapter 35.81 RCW, chapter 35.57 RCW, chapter 39.34 RCW, and Article VII of the state Constitution). Important context is missing or incomplete in the provided text: portions of the removal provision end mid-sentence and a fragment indicates removal may require two-thirds action of the confirming legislative authority, but the subject and full conditions are unclear; the bill repeatedly references RCW 36.100.040 and other definitions (for example, the definition of "baseball stadium") that are not included here, so the full scope of tax exceptions, definitions, and some procedural details cannot be determined from the extracted facts alone.
Why it matters
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If enacted, the bill makes it easier for counties and groups of cities in Washington to form public facilities districts (PFDs) with clear rules on who governs them and how they can raise money and take on property and projects. Local governments, public nonprofits that own convention centers, and taxpayers in affected areas would see more structured options for creating and financing arenas, convention centers, or similar facilities, including the ability to ask voters to approve sales, use, or excise taxes and to enter into loans, guarantees, and development contracts. For large counties new appointment rules shift some board appointment power to the governor, county executive, and city officials and require lodging and, in some cases, labor representation, which will change who influences decisions about facility projects and visitor taxes; a special type of PFD in small eastern Cascade counties can be limited to participating towns and school districts and must follow specific multi-member appointment and treasurer arrangements through 2060. Counties, cities, school districts, public nonprofit corporations, the lodging industry, organized labor, local chambers and economic development groups, and county or city treasurers are most affected: they may gain or lose control over projects, see new opportunities to fund facilities through voter-approved taxes and borrowing, face responsibilities to assume or approve transfers of property and existing debt, and handle trustee bonding and oversight (treasurer bond set at a minimum of $25,000). The bill text provided leaves some details unclear—notably parts of the director removal rules and the exact interaction with referenced tax and transfer provisions in other RCWs—so the full practical risk and process changes depend on those omitted provisions.
Official Documents View Full Bill Text
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2SHB 1037 Details and Bill Topics

Details

Date Introduced 02/26/2025
Originating Chamber House
Biennium 2025-26
Total Campaign Dollars Backing Bill $597,896.25

Bill Topics

LOCAL GOVERNMENT

2SHB 1037 Sponsors and Committee Hearings

Sponsors

Representative Dent (Primary)
Representative Ybarra

Committee Hearings

Hearing House Local Government (Public)
Hearing House Local Government (Executive)
Hearing House Finance (Public)
Hearing House Finance (Executive)
Go to 2SHB 1037 at leg.wa.gov

2SHB 1037 Bill Timeline

Early Stage
1/11/2026
HRules C
By resolution, reintroduced and retained in present status.
3/18/2025
HRules C
Returned to Rules Committee for second reading.
3/3/2025
HRules C
Rules Committee relieved of further consideration. Placed on second reading.
2/27/2025
HRules C
Referred to Rules 2 Review.
2/25/2025
HRules C
FIN - Majority; 2nd substitute bill be substituted, do pass.
2/25/2025
HRules C
FIN - Executive action taken by committee.
1/28/2025
HRules C
Referred to Finance.
1/23/2025
HRules C
LG - Majority; 1st substitute bill be substituted, do pass.
1/23/2025
HRules C
LG - Executive action taken by committee.
1/12/2025
HRules C
First reading, referred to Local Government.

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