SENATE BILL REPORT

SHB 2033

As Reported By Senate Committee On:

Highways & Transportation, April 7, 2003

Title: An act relating to requiring regional transportation investment district tax revenue to be allocated proportionally among member counties.

Brief Description: Requiring regional transportation investment district tax revenue to be allocated proportionally among member counties.

Sponsors: House Committee on Transportation (originally sponsored by Representatives Shabro, Conway, Priest, McDonald, Tom, Darneille, McMahan, Flannigan, Carrell, Campbell, Lantz, Talcott, Roach, Bailey, Kirby and Kristiansen).

Brief History:

Committee Activity: Highways & Transportation: 4/3/03, 4/7/03 [DP].

SENATE COMMITTEE ON HIGHWAYS & TRANSPORTATION

Majority Report: Do pass.

      Signed by Senators Horn, Chair; Benton, Vice Chair; Swecker, Vice Chair; Haugen, Jacobsen, Kastama, Oke, Prentice and Spanel.

Staff: Kelly Simpson (786-7403)

Background: Under current law, counties with a population greater than 1.5 million persons and adjoining counties with a population greater than 500,000 persons may create a regional transportation investment district (RTID) for the purposes of planning and implementing regional transportation improvements. RTIDs are granted several local voter-approved funding options to fund the improvements, including a sales and use tax, vehicle license fee, parking tax, motor vehicle excise tax, employer tax, and vehicle tolls.

Summary of Bill: Revenues raised by an RTID must be allocated proportionately to member counties based on tax revenue generated and must be used for the benefit of the county within which the revenue is generated. The district retains authority to manage debt and project schedules, and revenues from the entire district can be pledged to support bonds issued by the district.

The transportation investment plan within a single county can be modified if: (1) a majority of the RTID board approves modifications that are limited to projects within the county; (2) the modifications maintain equity among counties; and (3) the voters within the county approve the changes. If the voters decline the plan modifications, the original plan remains in place.

Appropriation: None.

Fiscal Note: Not requested.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Testimony For: Although the Regional Transportation Investment District (RTID) plan will generally be helpful in addressing some of the transportation problems in the central Puget Sound region, additional safeguards are needed to convince those who are still somewhat skeptical. This bill will help to ensure that people in the member counties will benefit directly from the revenue they contribute to the RTID projects. Additionally, the bill will provide RTID accountability to gain the public's trust. Finally, the bill language has been approved by bond counsel.

Testimony Against: None.

Testified: PRO: Representative Shabro, prime sponsor; Senator Kastama; Gary Nelson, Snohomish County Council; Shawn Bunny, Pierce County.