SENATE BILL REPORT

2SHB 1591

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As of February 23, 2010

Title: An act relating to the use of certain transportation benefit district funds.

Brief Description: Concerning the use of certain transportation benefit district funds.

Sponsors: House Committee on Transportation (originally sponsored by Representatives Upthegrove, Clibborn, Simpson and Liias).

Brief History: Passed House: 2/13/10, 56-38.

Committee Activity: Transportation: 2/23/10.

SENATE COMMITTEE ON TRANSPORTATION

Staff: Amanda Cecil (786-7429)

Background: A transportation benefit district (TBD) is an independent taxing district that may be established by a county or city and can include port districts and certain transit districts, and can include all or portion of the participating jurisdictions. A TBD is formed solely to fund transportation improvements that are included in an existing state or regional transportation plan within the district. A TBD, among other revenue measures, can impose transportation impact fees on commercial and industrial development and can implement a local sales and use tax of up to 0.2 percent for less than ten years.

Summary of Bill: Revenues raised by a TBD may be used for transportation improvements in the transportation plan of a city, county, or other eligible jurisdiction of the TBD, in addition to the state or regional transportation planning organizations.

Allows impact fees to be imposed for transportation improvements constructed by any entity, and removes the requirement that improvements be constructed by the transportation benefit district itself.

Authorizes the imposition of voter-approved sales and use taxes beyond the ten-year limitation if the sales tax is initially imposed after July 1, 2010, and the revenues are dedicated to the repayment of general obligation bonds.

Appropriation: None.

Fiscal Note: Not requested.

Committee/Commission/Task Force Created: No.

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

Staff Summary of Public Testimony: PRO: This will create more favorable circumstances for future transportation benefit districts. The extension of the ten-year limitation on sales and use tax will make it impossible to bond future projects, which will save time and costs.

Persons Testifying: PRO: Ashley Probart, Association of Washington Cities; Justin Clary, City of Ridgefield.