SENATE BILL REPORT

ESSB 6392

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 Passed Senate, February 16, 2010

Title: An act relating to the use of revenue generated from tolling the state route number 520 corridor.

Brief Description: Clarifying the use of revenue generated from tolling the state route number 520 corridor.

Sponsors: Senate Committee on Transportation (originally sponsored by Senators Tom, Swecker, Oemig, Holmquist, Jacobsen, Haugen and Marr).

Brief History:

Committee Activity: Transportation: 1/21/10, 1/25/10 [DPS, w/oRec].

Passed Senate: 2/16/10, 44-3.

SENATE COMMITTEE ON TRANSPORTATION

Majority Report: That Substitute Senate Bill No. 6392 be substituted therefor, and the substitute bill do pass.

Signed by Senators Haugen, Chair; Marr, Vice Chair; Swecker, Ranking Minority Member; Becker, Berkey, Delvin, Eide, Hatfield, Jacobsen, Kastama, Kauffman, Kilmer, King, Ranker and Sheldon.

Minority Report: That it be referred without recommendation.

Signed by Senator Benton.

Staff: Kelly Simpson (786-7403)

Background: During the 2009 Legislative Session, ESHB 2211 was enacted, authorizing the initial imposition of tolls on the state route (SR) 520 corridor (defined as between interstate 5 and SR 202), to be charged only for travel on the floating bridge portion of the corridor. The bill also limited the use of toll backed bond proceeds to the construction of the replacement floating bridge and necessary landings.

Summary of Engrossed Substitute Bill: Bond proceeds, backed by revenue generated from tolls on the SR 520 corridor, may be used for any project within the SR 520 bridge replacement and high occupancy vehicle (HOV) program, including projects beyond just the replacement floating bridge. However, $200 million in bond proceeds must be used only to fund the west side of the corridor program.

The corridor program must include the following elements, consistent with the legislatively identified total project cost of $4.65B:

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: Last year's legislation authorized tolling on SR 520, but limited the use of toll-backed bonds to just the bridge replacement. Roughly $400-500M may be available in bond proceeds to be used for other projects within the corridor. Washington is currently experiencing a very favorable bid climate, which would help move forward, right away, on those projects in the corridor that are ready to go. Moving sooner than later will help keep costs down. A delay on the SR 520 project will add to the congestion in the corridor and negatively impact the state economy, specifically the efficient movement of freight. This project is vital to the state's economy. The corridor unties the high-tech and the biotech business sectors of Puget Sound. The business community needs assurance that travel times in the corridor are reliable. The project will help improve transit times. The SR 520 project has been studied long enough. Safety of the facility warrants beginning project construction now.

CON: This bill is simply a way to siphon off toll monies.

Persons Testifying: PRO: Senator Tom, prime sponsor; Dave Dye, WSDOT; Nancy Hiteschue, WA Business Roundtable; Councilmember Grant Degginger, City of Bellevue; Mayor George Maitein, City of Clyde Hill; Dave Overstreet, AAA of WA.

CON: Paul W. Locke.