ESHB 1408
SignedHouse
Community authority funding
Establishing funding for community preservation and development authorities approved through RCW 43.167.060.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill creates a dedicated funding stream from state sales tax revenue generated at large stadiums to support community preservation and development authorities. The funds are used to improve economic vitality, housing, public safety, and infrastructure in communities near major facilities. The program runs from 2026 through 2037, with a legislative review required in 2034 to decide whether to extend it.
- Starting January 1, 2026, 30% of state sales tax revenue from retail sales at qualified facilities (e.g., large stadiums) must be deposited into the community preservation and development authority account, split equally between operating and capital subaccounts.
- The Department of Revenue must calculate and report the tax collected every six months and notify the State Treasurer to transfer funds by December 31 and June 30 each year.
- A “qualified facility” is defined as a stadium with at least 68,000 fixed seats and 300,000 sq ft of event space, or a stadium with at least 47,000 seats and a retractable roof, located in a county with an active community preservation and development authority.
- The Joint Legislative Audit and Review Committee (JLARC) must review the program’s impact by December 1, 2034, and report findings to the legislature on whether funding should be extended.
- Community preservation and development authorities must submit biennial reports to the legislature detailing their strategic plans, use of funds, and community impacts by November 1 in odd-numbered years.
- The program expires January 1, 2037, unless extended by the legislature based on JLARC’s review.
Who is affected
- Residents and small businesses in affected communities — Communities near large stadiums or event venues in counties with an existing community preservation and development authority may benefit from targeted investments in small business support, infrastructure repairs, housing, and public safety efforts.
- Community preservation and development authorities — May receive new funding to support economic development, housing, and community improvements in areas impacted by major public facilities.
- Washington State Department of Revenue — Will collect and report sales tax data and transfer funds to the designated account, with new reporting requirements for qualified facilities.
- State Treasurer's Office — Will be responsible for depositing transferred funds into the community preservation and development authority account by specified deadlines.
Pro/Con Analysis
Potential Benefits (5)
The bill explicitly authorizes funding for new low-income and workforce housing units and street outreach for unhoused residents—directly targeting a severe statewide crisis. If CPDAs prioritize equity in allocation, this could significantly improve housing stability for vulnerable populations in qualified areas.
HousingPeopleRef: Sec. 3(2)(c); Sec. 43.167.040Mandating assistance to struggling small businesses and unreinforced masonry repairs could prevent business closures and preserve local jobs in neighborhoods near stadiums—especially valuable in rapidly gentrifying areas like Seattle’s First Hill or South Lake Union.
Business & EmploymentPeopleRef: Sec. 3(2)(a); Sec. 43.167.040Funding for litter remediation and homelessness interventions may improve neighborhood safety and quality of life for residents and workers near major venues, particularly where large events concentrate foot traffic and associated disorder.
Public SafetyPeopleRef: Sec. 3(2)(b); Sec. 43.167.040The bill creates a dedicated, time-limited funding stream for CPDAs, allowing targeted, community-driven investments in economic vitality without relying on volatile general fund appropriations—potentially increasing local autonomy and responsiveness.
Local GovernmentPeopleRef: Sec. 3(1); Sec. 43.167.040By stabilizing small businesses and improving infrastructure in neighborhoods near stadiums, the bill may indirectly support school stability (e.g., reduced student mobility), though this is speculative and not directly funded.
EducationLean peopleRef: Sec. 3(2)(a); Sec. 43.167.040
Potential Concerns (5)
The bill redirects 30% of state sales tax revenue from large stadiums to a dedicated account, reducing general fund revenue available to all local governments—including those outside qualified areas—potentially straining shared services like schools, roads, and emergency response in non-qualified jurisdictions.
Local GovernmentPeopleRef: Sec. 1(1); Sec. 43.167.040 (as referenced)While the bill authorizes funding for low-income and workforce housing, the eligibility is tied to existing Community Preservation and Development Authorities (CPDAs), which currently only exist in King and Snohomish counties (e.g., Seattle Center CPDA, Everett CPDA). Most Washington counties lack a CPDA, meaning the housing benefit is geographically limited and unlikely to reach rural, suburban, or smaller urban communities where housing needs are acute.
HousingPeopleRef: Sec. 1(1); Sec. 43.167.040The bill prioritizes assistance to “struggling small businesses” and “unreinforced masonry” repairs, but the threshold for qualified facilities (≥47,000–68,000 seats) means only a handful of venues qualify—effectively limiting benefits to the Seattle-Tacoma metro area. Small businesses in other regions (e.g., Eastern WA, Olympic Peninsula) are excluded, despite facing similar economic pressures.
Business & EmploymentPeopleRef: Sec. 1(1); Sec. 43.167.040The bill authorizes funding for public safety improvements near stadiums, but the focus is on addressing secondary impacts (e.g., litter, homelessness) rather than core law enforcement or emergency services—meaning the net public safety gain for most residents is modest and localized.
Public SafetyLean peopleRef: Sec. 1(1); Sec. 43.167.040The bill includes no explicit environmental protections or sustainability requirements for funded projects, and stadium-adjacent infrastructure may increase traffic, emissions, and stormwater runoff—potentially worsening local environmental burdens for nearby neighborhoods.
EnvironmentLean peopleRef: Sec. 1(1); Sec. 43.167.040
Who Is Most Affected
Residents in King and Snohomish counties near qualified stadiums may benefit from improved housing, business support, and neighborhood safety—but those in other regions see no direct benefit. Low-income households in CPDA zones could gain from housing and outreach programs, but the program’s narrow geographic scope limits broader impact.
CPDAs in qualified counties (currently King and Snohomish) gain new funding authority and flexibility to address local needs. However, counties without an existing CPDA cannot establish one under this bill—so many local governments remain excluded.
The Department of Revenue gains new reporting and transfer responsibilities, increasing administrative burden. However, the task is straightforward (calculating 30% of stadium sales tax) and does not require new systems.
The State Treasurer’s Office gains a new recurring transfer task, but the process is automated and tied to existing revenue cycles—minimal added cost or complexity.
Large stadium operators (e.g., Seahawks, Mariners, Sounders) are not directly regulated or taxed beyond the existing sales tax, but benefit indirectly from improved local infrastructure and community relations. They are not required to contribute beyond standard tax collection, so net impact is neutral.