FINAL BILL REPORT

HB 396

                                  C 327 L 87

BYRepresentatives Cantwell, Walk, K. Wilson, Meyers, Heavey, P. King and Todd

Authorizing counties and cities to establish transportation benefit districts.

House Committe on Transportation

Senate Committee on Transportation

SYNOPSIS AS ENACTED

BACKGROUND:

Local governments currently lack authority to comprehensively address the provision of road and highway facilities necessitated by economic development.  City and county powers are instead provided in varying degrees to those units of government for various purposes.  No single district has the authority to address improvements on city streets, county roads and state highways; nor has the power to utilize various funding sources such as property tax levies, local improvement district assessments and late-comer fees to fund those improvements.  Local governments are currently prohibited from imposing development fees to help pay the costs of public services, including transportation facilities necessitated by development.

Many persons feel that a comprehensive approach, through a special purpose unit of government, would allow areas to best address and accommodate transportation needs associated with economic development.

This is one of five measures developed by the Task Force on Economic Development/Transportation Issues, established by the Legislative Transportation Committee in 1986 to address the transportation needs arising in areas of rapid economic growth.

SUMMARY:

Cities, towns and counties are authorized to establish transportation benefit districts to fund the capital improvement of city streets, county roads and state highways within the district.  The improvement must be:  1) consistent with state, regional and local transportation plans; 2) necessitated by congestion levels attributable to economic growth; and 3) partially funded by local government or private contributions.

For counties, a benefit district may be created in all or in a portion of the unincorporated area and can include incorporated areas only with the approval of the city or town governing body.  A city district can include the area of another city or unincorporated areas with city or county approval.  Only that property which will benefit from a planned transportation improvement can be included within a transportation benefit district.

Creation of a transportation benefit district requires a public hearing and a determination by the county or city legislative authority that it is in the public interest to form the district.  The local legislative authority is the governing body of a benefit district.  District electors are all registered voters residing in the district.  Dissolution is required when district obligations have been met.

The following sources of funding for benefit districts are provided:  (1) single-year, voter-approved, excess property tax levies; (2) multi-year, voter-approved, excess property tax levies used to redeem general obligation (G.O.) bonds; (3) the issuance of G.O. bonds; (4) the formation of local improvement districts (LID's); (5) late-comer fees; (6) development fees related to transportation projects; and (7) acceptance of gifts, grants and donations.

VOTES ON FINAL PASSAGE:

      House 91   4

      Senate    29    19(Senate amended)

      House 96   0(House concurred)

EFFECTIVE:July 26, 1987