BILL REQ. #:  H-1407.5 

Read first time 02/22/13.   Referred to Committee on Transportation.

     AN ACT Relating to transportation revenue; amending RCW 82.36.025, 82.38.030, 46.68.090, 46.17.200, 46.20.293, 46.29.050, 46.68.041, 46.70.061, 46.10.530, 46.17.355, 82.21.030, 82.44.125, 47.60.322, 36.73.065, 82.80.010, 82.80.140, and 82.14.045; reenacting and amending RCW 46.52.130 and 46.09.520; adding new sections to chapter 46.68 RCW; adding a new section to chapter 47.04 RCW; adding a new section to chapter 82.44 RCW; adding a new section to chapter 46.17 RCW; adding new sections to chapter 82.80 RCW; creating new sections; providing effective dates; and providing an expiration date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1   RCW 82.36.025 and 2007 c 515 s 3 are each amended to read as follows:
     (1) A motor vehicle fuel tax rate of twenty-three cents per gallon on motor vehicle fuel shall be imposed on motor vehicle fuel licensees, other than motor vehicle fuel distributors.
     (2) Beginning July 1, 2003, an additional and cumulative motor vehicle fuel tax rate of five cents per gallon on motor vehicle fuel shall be imposed on motor vehicle fuel licensees, other than motor vehicle fuel distributors. This subsection (2) expires when the bonds issued for transportation 2003 projects are retired.
     (3) Beginning July 1, 2005, an additional and cumulative motor vehicle fuel tax rate of three cents per gallon on motor vehicle fuel shall be imposed on motor vehicle fuel licensees, other than motor vehicle fuel distributors.
     (4) Beginning July 1, 2006, an additional and cumulative motor vehicle fuel tax rate of three cents per gallon on motor vehicle fuel shall be imposed on motor vehicle fuel licensees, other than motor vehicle fuel distributors.
     (5) Beginning July 1, 2007, an additional and cumulative motor vehicle fuel tax rate of two cents per gallon on motor vehicle fuel shall be imposed on motor vehicle fuel licensees, other than motor vehicle fuel distributors.
     (6) Beginning July 1, 2008, an additional and cumulative motor vehicle fuel tax rate of one and one-half cents per gallon on motor vehicle fuel shall be imposed on motor vehicle fuel licensees, other than motor vehicle fuel distributors.
     (7) Beginning August 1, 2013, an additional and cumulative motor vehicle fuel tax rate of two cents per gallon on motor vehicle fuel shall be imposed on motor vehicle fuel licensees, other than motor vehicle fuel distributors.
     (8) Beginning July 1, 2014, an additional and cumulative motor vehicle fuel tax rate of two cents per gallon on motor vehicle fuel shall be imposed on motor vehicle fuel licensees, other than motor vehicle fuel distributors.
     (9) Beginning July 1, 2015, an additional and cumulative motor vehicle fuel tax rate of two cents per gallon on motor vehicle fuel shall be imposed on motor vehicle fuel licensees, other than motor vehicle fuel distributors.
     (10) Beginning July 1, 2016, an additional and cumulative motor vehicle fuel tax rate of two cents per gallon on motor vehicle fuel shall be imposed on motor vehicle fuel licensees, other than motor vehicle fuel distributors.
     (11) Beginning July 1, 2017, an additional and cumulative motor vehicle fuel tax rate of two cents per gallon on motor vehicle fuel shall be imposed on motor vehicle fuel licensees, other than motor vehicle fuel distributors.

Sec. 2   RCW 82.38.030 and 2007 c 515 s 21 are each amended to read as follows:
     (1) There is hereby levied and imposed upon special fuel licensees, other than special fuel distributors, a tax at the rate of twenty-three cents per gallon of special fuel, or each one hundred cubic feet of compressed natural gas, measured at standard pressure and temperature.
     (2) Beginning July 1, 2003, an additional and cumulative tax rate of five cents per gallon of special fuel, or each one hundred cubic feet of compressed natural gas, measured at standard pressure and temperature shall be imposed on special fuel licensees, other than special fuel distributors. This subsection (2) expires when the bonds issued for transportation 2003 projects are retired.
     (3) Beginning July 1, 2005, an additional and cumulative tax rate of three cents per gallon of special fuel, or each one hundred cubic feet of compressed natural gas, measured at standard pressure and temperature shall be imposed on special fuel licensees, other than special fuel distributors.
     (4) Beginning July 1, 2006, an additional and cumulative tax rate of three cents per gallon of special fuel, or each one hundred cubic feet of compressed natural gas, measured at standard pressure and temperature shall be imposed on special fuel licensees, other than special fuel distributors.
     (5) Beginning July 1, 2007, an additional and cumulative tax rate of two cents per gallon of special fuel, or each one hundred cubic feet of compressed natural gas, measured at standard pressure and temperature shall be imposed on special fuel licensees, other than special fuel distributors.
     (6) Beginning July 1, 2008, an additional and cumulative tax rate of one and one-half cents per gallon of special fuel, or each one hundred cubic feet of compressed natural gas, measured at standard pressure and temperature shall be imposed on special fuel licensees, other than special fuel distributors.
     (7) Beginning August 1, 2013, an additional and cumulative tax rate of two cents per gallon of special fuel, or each one hundred cubic feet of compressed natural gas, measured at standard pressure and temperature shall be imposed on special fuel licensees, other than special fuel distributors.
     (8) Beginning July 1, 2014, an additional and cumulative tax rate of two cents per gallon of special fuel, or each one hundred cubic feet of compressed natural gas, measured at standard pressure and temperature shall be imposed on special fuel licensees, other than special fuel distributors.
     (9) Beginning July 1, 2015, an additional and cumulative tax rate of two cents per gallon of special fuel, or each one hundred cubic feet of compressed natural gas, measured at standard pressure and temperature shall be imposed on special fuel licensees, other than special fuel distributors.
     (10) Beginning July 1, 2016, an additional and cumulative tax rate of two cents per gallon of special fuel, or each one hundred cubic feet of compressed natural gas, measured at standard pressure and temperature shall be imposed on special fuel licensees, other than special fuel distributors.
     (11) Beginning July 1, 2017, an additional and cumulative tax rate of two cents per gallon of special fuel, or each one hundred cubic feet of compressed natural gas, measured at standard pressure and temperature shall be imposed on special fuel licensees, other than special fuel distributors.
     (12) Taxes are imposed when:
     (a) Special fuel is removed in this state from a terminal if the special fuel is removed at the rack unless the removal is to a licensed exporter for direct delivery to a destination outside of the state, or the removal is by a special fuel supplier for direct delivery to an international fuel tax agreement licensee under RCW 82.38.320;
     (b) Special fuel is removed in this state from a refinery if either of the following applies:
     (i) The removal is by bulk transfer and the refiner or the owner of the special fuel immediately before the removal is not a licensee; or
     (ii) The removal is at the refinery rack unless the removal is to a licensed exporter for direct delivery to a destination outside of the state, or the removal is to a special fuel supplier for direct delivery to an international fuel tax agreement licensee under RCW 82.38.320;
     (c) Special fuel enters into this state for sale, consumption, use, or storage, unless the fuel enters this state for direct delivery to an international fuel tax agreement licensee under RCW 82.38.320, if either of the following applies:
     (i) The entry is by bulk transfer and the importer is not a licensee; or
     (ii) The entry is not by bulk transfer;
     (d) Special fuel is sold or removed in this state to an unlicensed entity unless there was a prior taxable removal, entry, or sale of the special fuel;
     (e) Blended special fuel is removed or sold in this state by the blender of the fuel. The number of gallons of blended special fuel subject to tax is the difference between the total number of gallons of blended special fuel removed or sold and the number of gallons of previously taxed special fuel used to produce the blended special fuel;
     (f) Dyed special fuel is used on a highway, as authorized by the internal revenue code, unless the use is exempt from the special fuel tax;
     (g) Dyed special fuel is held for sale, sold, used, or is intended to be used in violation of this chapter;
     (h) Special fuel purchased by an international fuel tax agreement licensee under RCW 82.38.320 is used on a highway; and
     (i) Special fuel is sold by a licensed special fuel supplier to a special fuel distributor, special fuel importer, or special fuel blender and the special fuel is not removed from the bulk transfer-terminal system.

Sec. 3   RCW 46.68.090 and 2011 c 120 s 4 are each amended to read as follows:
     (1) All moneys that have accrued or may accrue to the motor vehicle fund from the motor vehicle fuel tax and special fuel tax shall be first expended for purposes enumerated in (a) and (b) of this subsection. The remaining net tax amount shall be distributed monthly by the state treasurer in accordance with subsections (2) through (7) of this section.
     (a) For payment of refunds of motor vehicle fuel tax and special fuel tax that has been paid and is refundable as provided by law;
     (b) For payment of amounts to be expended pursuant to appropriations for the administrative expenses of the offices of state treasurer, state auditor, and the department of licensing of the state of Washington in the administration of the motor vehicle fuel tax and the special fuel tax, which sums shall be distributed monthly.
     (2) All of the remaining net tax amount collected under RCW 82.36.025(1) and 82.38.030(1) shall be distributed as set forth in (a) through (j) of this section.
     (a) For distribution to the motor vehicle fund an amount equal to 44.387 percent to be expended for highway purposes of the state as defined in RCW 46.68.130;
     (b) For distribution to the special category C account, hereby created in the motor vehicle fund, an amount equal to 3.2609 percent to be expended for special category C projects. Special category C projects are category C projects that, due to high cost only, will require bond financing to complete construction.
     The following criteria, listed in order of priority, shall be used in determining which special category C projects have the highest priority:
     (i) Accident experience;
     (ii) Fatal accident experience;
     (iii) Capacity to move people and goods safely and at reasonable speeds without undue congestion; and
     (iv) Continuity of development of the highway transportation network.
     Moneys deposited in the special category C account in the motor vehicle fund may be used for payment of debt service on bonds the proceeds of which are used to finance special category C projects under this subsection (2)(b);
     (c) For distribution to the Puget Sound ferry operations account in the motor vehicle fund an amount equal to 2.3283 percent;
     (d) For distribution to the Puget Sound capital construction account in the motor vehicle fund an amount equal to 2.3726 percent;
     (e) For distribution to the transportation improvement account in the motor vehicle fund an amount equal to 7.5597 percent;
     (f) For distribution to the transportation improvement account in the motor vehicle fund an amount equal to 5.6739 percent and expended in accordance with RCW 47.26.086;
     (g) For distribution to the cities and towns from the motor vehicle fund an amount equal to 10.6961 percent in accordance with RCW 46.68.110;
     (h) For distribution to the counties from the motor vehicle fund an amount equal to 19.2287 percent: (i) Out of which there shall be distributed from time to time, as directed by the department of transportation, those sums as may be necessary to carry out the provisions of RCW 47.56.725; and (ii) less any amounts appropriated to the county road administration board to implement the provisions of RCW 47.56.725(4), with the balance of such county share to be distributed monthly as the same accrues for distribution in accordance with RCW 46.68.120;
     (i) For distribution to the county arterial preservation account, hereby created in the motor vehicle fund an amount equal to 1.9565 percent. These funds shall be distributed by the county road administration board to counties in proportions corresponding to the number of paved arterial lane miles in the unincorporated area of each county and shall be used for improvements to sustain the structural, safety, and operational integrity of county arterials. The county road administration board shall adopt reasonable rules and develop policies to implement this program and to assure that a pavement management system is used;
     (j) For distribution to the rural arterial trust account in the motor vehicle fund an amount equal to 2.5363 percent and expended in accordance with RCW 36.79.020.
     (3) The remaining net tax amount collected under RCW 82.36.025(2) and 82.38.030(2) shall be distributed to the transportation 2003 account (nickel account).
     (4) The remaining net tax amount collected under RCW 82.36.025(3) and 82.38.030(3) shall be distributed as follows:
     (a) 8.3333 percent shall be distributed to the incorporated cities and towns of the state in accordance with RCW 46.68.110;
     (b) 8.3333 percent shall be distributed to counties of the state in accordance with RCW 46.68.120; and
     (c) The remainder shall be distributed to the transportation partnership account created in RCW 46.68.290.
     (5) The remaining net tax amount collected under RCW 82.36.025(4) and 82.38.030(4) shall be distributed as follows:
     (a) 8.3333 percent shall be distributed to the incorporated cities and towns of the state in accordance with RCW 46.68.110;
     (b) 8.3333 percent shall be distributed to counties of the state in accordance with RCW 46.68.120; and
     (c) The remainder shall be distributed to the transportation partnership account created in RCW 46.68.290.
     (6) The remaining net tax amount collected under RCW 82.36.025 (5) and (6) and 82.38.030 (5) and (6) shall be distributed to the transportation partnership account created in RCW 46.68.290.
     (7) The remaining net tax amount collected under RCW 82.36.025 (7), (8), (9), (10), and (11) and 82.38.030 (7), (8), (9), (10), and (11) shall be distributed as follows:
     (a) Twenty percent shall be distributed to the maintenance, operations, and preservation account created in section 4 of this act;
     (b) 1.9 percent shall be distributed to the transportation improvement account created in RCW 47.26.084 for the use of the transportation improvement board;
     (c) 1.1 percent shall be distributed to the county arterial preservation account created in subsection (2)(i) of this section for the sole use of the county road administration board;
     (d) Sixteen percent shall be distributed into the Puget Sound ferry operations account created in RCW 47.60.530;
     (e) 6.5 percent shall be distributed to counties under RCW 46.68.122;
     (f) 6.5 percent shall be distributed to cities under RCW 46.68.110; and
     (g) The remainder shall be distributed to the connecting Washington account created in section 5 of this act.
     (8) Nothing in this section or in RCW 46.68.130 may be construed so as to violate any terms or conditions contained in any highway construction bond issues now or hereafter authorized by statute and whose payment is by such statute pledged to be paid from any excise taxes on motor vehicle fuel and special fuels.

NEW SECTION.  Sec. 4   A new section is added to chapter 46.68 RCW to read as follows:
     The maintenance, operations, and preservation account is created in the state treasury. All receipts from RCW 46.68.090(7)(a) must be deposited into the account. Moneys in the account may be spent only after appropriation. Expenditures from the account must be used only for the maintenance, operations, administration, and preservation of the state highway system, which is defined for purposes of this section as activities undertaken to (1) provide, maintain, and operate serviceable roadways through planned strategies of cost-effective treatments to existing roadways and appurtenances that preserve the highway system, (2) retard future deterioration, (3) preserve or improve safety, and (4) maintain the functional condition of the existing highway system.

NEW SECTION.  Sec. 5   A new section is added to chapter 46.68 RCW to read as follows:
     The connecting Washington account is created in the motor vehicle fund. All receipts from RCW 46.68.090(7)(g), section 21(6) of this act, and section 24 (1) and (2)(c) of this act must be deposited into the account. Moneys in the account may be spent only after appropriation. Expenditures from the account must be used only for projects or improvements identified as connecting Washington projects or improvements in the omnibus transportation appropriations act, including any principal and interest on bonds authorized for the projects or improvements.

Sec. 6   RCW 46.17.200 and 2012 c 74 s 3 are each amended to read as follows:
     (1) In addition to all other fees and taxes required by law, the department, county auditor or other agent, or subagent appointed by the director shall charge:
     (a) The following license plate fees for each license plate, unless the owner or type of vehicle is exempt from payment:

Sec. 7   RCW 46.20.293 and 2012 c 74 s 4 are each amended to read as follows:
     The department is authorized to provide juvenile courts with the department's record of traffic charges compiled under RCW 46.52.101 and 13.50.200, against any minor upon the request of any state juvenile court or duly authorized officer of any juvenile court of this state. Further, the department is authorized to provide any juvenile court with any requested service which the department can reasonably perform which is not inconsistent with its legal authority which substantially aids juvenile courts in handling traffic cases and which promotes highway safety.
     The department is authorized to furnish to the parent, parents, or guardian of any person under eighteen years of age who is not emancipated from such parent, parents, or guardian, the department records of traffic charges compiled against the person and shall collect for the copy a fee of thirteen dollars, ((fifty)) thirty-eight and one-half percent of which must be deposited in the highway safety fund and ((fifty)) sixty-one and one-half percent of which must be deposited according to RCW 46.68.038.

Sec. 8   RCW 46.29.050 and 2012 c 74 s 5 are each amended to read as follows:
     (1) The department shall upon request furnish any person or his or her attorney a certified abstract of his or her driving record, which abstract shall include enumeration of any motor vehicle accidents in which such person has been involved. Such abstract shall (a) indicate the total number of vehicles involved, whether the vehicles were legally parked or moving, and whether the vehicles were occupied at the time of the accident; and (b) contain reference to any convictions of the person for violation of the motor vehicle laws as reported to the department, reference to any findings that the person has committed a traffic infraction which have been reported to the department, and a record of any vehicles registered in the name of the person. The department shall collect for each abstract the sum of thirteen dollars, ((fifty)) thirty-eight and one-half percent of which shall be deposited in the highway safety fund and ((fifty)) sixty-one and one-half percent of which must be deposited according to RCW 46.68.038.
     (2) The department shall upon request furnish any person who may have been injured in person or property by any motor vehicle, with an abstract of all information of record in the department pertaining to the evidence of the ability of any driver or owner of any motor vehicle to respond in damages. The department shall collect for each abstract the sum of thirteen dollars, ((fifty)) thirty-eight and one-half percent of which shall be deposited in the highway safety fund and ((fifty)) sixty-one and one-half percent of which must be deposited according to RCW 46.68.038.

Sec. 9   RCW 46.52.130 and 2012 c 74 s 6 and 2012 c 73 s 1 are each reenacted and amended to read as follows:
     Upon a proper request, the department may furnish an abstract of a person's driving record as permitted under this section.
     (1) Contents of abstract of driving record. An abstract of a person's driving record, whenever possible, must include:
     (a) An enumeration of motor vehicle accidents in which the person was driving, including:
     (i) The total number of vehicles involved;
     (ii) Whether the vehicles were legally parked or moving;
     (iii) Whether the vehicles were occupied at the time of the accident; and
     (iv) Whether the accident resulted in a fatality;
     (b) Any reported convictions, forfeitures of bail, or findings that an infraction was committed based upon a violation of any motor vehicle law;
     (c) The status of the person's driving privilege in this state; and
     (d) Any reports of failure to appear in response to a traffic citation or failure to respond to a notice of infraction served upon the named individual by an arresting officer.
     (2) Release of abstract of driving record. An abstract of a person's driving record may be furnished to the following persons or entities:
     (a) Named individuals. (i) An abstract of the full driving record maintained by the department may be furnished to the individual named in the abstract.
     (ii) Nothing in this section prevents a court from providing a copy of the driver's abstract to the individual named in the abstract, provided that the named individual has a pending or open infraction or criminal case in that court. A pending case includes criminal cases that have not reached a disposition by plea, stipulation, trial, or amended charge. An open infraction or criminal case includes cases on probation, payment agreement or subject to, or in collections. Courts may charge a reasonable fee for the production and copying of the abstract for the individual.
     (b) Employers or prospective employers. (i)(A) An abstract of the full driving record maintained by the department may be furnished to an employer or prospective employer or an agent acting on behalf of an employer or prospective employer of the named individual for purposes related to driving by the individual as a condition of employment or otherwise at the direction of the employer.
     (B) Release of an abstract of the driving record of an employee or prospective employee requires a statement signed by: (I) The employee or prospective employee that authorizes the release of the record; and (II) the employer attesting that the information is necessary for employment purposes related to driving by the individual as a condition of employment or otherwise at the direction of the employer. If the employer or prospective employer authorizes an agent to obtain this information on their behalf, this must be noted in the statement.
     (C) Upon request of the person named in the abstract provided under this subsection, and upon that same person furnishing copies of court records ruling that the person was not at fault in a motor vehicle accident, the department must indicate on any abstract provided under this subsection that the person was not at fault in the motor vehicle accident.
     (ii) In addition to the methods described in (b)(i) of this subsection, the director may enter into a contractual agreement with an employer or its agent for the purpose of reviewing the driving records of existing employees for changes to the record during specified periods of time. The department shall establish a fee for this service, which must be deposited in the highway safety fund. The fee for this service must be set at a level that will not result in a net revenue loss to the state. Any information provided under this subsection must be treated in the same manner and is subject to the same restrictions as driving record abstracts.
     (c) Volunteer organizations. (i) An abstract of the full driving record maintained by the department may be furnished to a volunteer organization or an agent for a volunteer organization for which the named individual has submitted an application for a position that would require driving by the individual at the direction of the volunteer organization.
     (ii) Release of an abstract of the driving record of a prospective volunteer requires a statement signed by: (A) The prospective volunteer that authorizes the release of the record; and (B) the volunteer organization attesting that the information is necessary for purposes related to driving by the individual at the direction of the volunteer organization. If the volunteer organization authorizes an agent to obtain this information on their behalf, this must be noted in the statement.
     (d) Transit authorities. An abstract of the full driving record maintained by the department may be furnished to an employee or agent of a transit authority checking prospective volunteer vanpool drivers for insurance and risk management needs.
     (e) Insurance carriers. (i) An abstract of the driving record maintained by the department covering the period of not more than the last three years may be furnished to an insurance company or its agent:
     (A) That has motor vehicle or life insurance in effect covering the named individual;
     (B) To which the named individual has applied; or
     (C) That has insurance in effect covering the employer or a prospective employer of the named individual.
     (ii) The abstract provided to the insurance company must:
     (A) Not contain any information related to actions committed by law enforcement officers or firefighters, as both terms are defined in RCW 41.26.030, or by Washington state patrol officers, while driving official vehicles in the performance of their occupational duty. This does not apply to any situation where the vehicle was used in the commission of a misdemeanor or felony;
     (B) Include convictions under RCW 46.61.5249 and 46.61.525, except that the abstract must report the convictions only as negligent driving without reference to whether they are for first or second degree negligent driving; and
     (C) Exclude any deferred prosecution under RCW 10.05.060, except that if a person is removed from a deferred prosecution under RCW 10.05.090, the abstract must show the deferred prosecution as well as the removal.
     (iii) Any policy of insurance may not be canceled, nonrenewed, denied, or have the rate increased on the basis of information regarding an accident included in the abstract of a driving record, unless the policyholder was determined to be at fault.
     (iv) Any insurance company or its agent, for underwriting purposes relating to the operation of commercial motor vehicles, may not use any information contained in the abstract relative to any person's operation of motor vehicles while not engaged in such employment. Any insurance company or its agent, for underwriting purposes relating to the operation of noncommercial motor vehicles, may not use any information contained in the abstract relative to any person's operation of commercial motor vehicles.
     (v) The director may enter into a contractual agreement with an insurance company or its agent for the limited purpose of reviewing the driving records of existing policyholders for changes to the record during specified periods of time. The department shall establish a fee for this service, which must be deposited in the highway safety fund. The fee for this service must be set at a level that will not result in a net revenue loss to the state. Any information provided under this subsection must be treated in the same manner and is subject to the same restrictions as driving record abstracts.
     (f) Alcohol/drug assessment or treatment agencies. An abstract of the driving record maintained by the department covering the period of not more than the last five years may be furnished to an alcohol/drug assessment or treatment agency approved by the department of social and health services to which the named individual has applied or been assigned for evaluation or treatment, for purposes of assisting employees in making a determination as to what level of treatment, if any, is appropriate, except that the abstract must:
     (i) Also include records of alcohol-related offenses, as defined in RCW 46.01.260(2), covering a period of not more than the last ten years; and
     (ii) Indicate whether an alcohol-related offense was originally charged as a violation of either RCW 46.61.502 or 46.61.504.
     (g) City attorneys and county prosecuting attorneys. An abstract of the full driving record maintained by the department, including whether a recorded violation is an alcohol-related offense, as defined in RCW 46.01.260(2), that was originally charged as a violation of either RCW 46.61.502 or 46.61.504, may be furnished to city attorneys or county prosecuting attorneys. City attorneys and county prosecuting attorneys may provide the driving record to alcohol/drug assessment or treatment agencies approved by the department of social and health services to which the named individual has applied or been assigned for evaluation or treatment.
     (h) State colleges, universities, or agencies, or units of local government. An abstract of the full driving record maintained by the department may be furnished to (i) state colleges, universities, or agencies for employment and risk management purposes or (ii) units of local government authorized to self-insure under RCW 48.62.031 for employment and risk management purposes.
     (i) Superintendent of public instruction. An abstract of the full driving record maintained by the department may be furnished to the superintendent of public instruction for review of public school bus driver records. The superintendent or superintendent's designee may discuss information on the driving record with an authorized representative of the employing school district for employment and risk management purposes.
     (3) Release to third parties prohibited. Any person or entity receiving an abstract of a person's driving record under subsection (2)(b) through (i) of this section shall use the abstract exclusively for his, her, or its own purposes or as otherwise expressly permitted under this section, and shall not divulge any information contained in the abstract to a third party.
     (4) Fee. The director shall collect a thirteen dollar fee for each abstract of a person's driving record furnished by the department. ((Fifty)) Thirty-eight and one-half percent of the fee must be deposited in the highway safety fund, and ((fifty)) sixty-one and one-half percent of the fee must be deposited according to RCW 46.68.038.
     (5) Violation. (a) Any negligent violation of this section is a gross misdemeanor.
     (b) Any intentional violation of this section is a class C felony.

Sec. 10   RCW 46.68.041 and 2004 c 95 s 15 are each amended to read as follows:
     (1) Except as provided in subsection (2) of this section, the department ((shall)) must forward all funds accruing under ((the provisions of)) chapter 46.20 RCW together with a proper identifying, detailed report to the state treasurer who ((shall)) must deposit such moneys to the credit of the highway safety fund.
     (2)(a) Sixty-three percent of each fee collected by the department under RCW 46.20.311 (1)(e)(ii), (2)(b)(ii), and (3)(b) ((shall)) must be deposited in the impaired driving safety account.
     (b)(i)(A) $2.88 of each driver's license issuance fee paid under RCW 46.20.161 must be deposited in the state patrol highway account for the sole use of the Washington state patrol for highway activities.
     (B) If the driver's license issuance fee paid under RCW 46.20.161 is for a driver's license with a term of less than six years, the amount to be deposited in the state patrol highway account for the sole use of the Washington state patrol for highway activities is $0.48 multiplied by the number of years in the term of the driver's license.
     (ii)(A) $21.12 of each driver's license issuance fee paid under RCW 46.20.161 is for the sole use of the transportation improvement board.
     (B) If the driver's license issuance fee paid under RCW 46.20.161 is for a driver's license with a term of less than six years, the amount for the sole use of the transportation improvement board is $3.52 multiplied by the number of years in the term of the driver's license.
     (C)(I) Ninety percent of moneys received under this subsection (2)(b)(ii) must be deposited in the transportation improvement account for the transportation improvement board urban arterial program.
     (II) Ten percent of moneys received under this subsection (2)(b)(ii) must be deposited in the small city pavement and sidewalk account for the transportation improvement board small city pavement and sidewalk program.
     (c)(i) $4.28 of each driver's license renewal fee paid under RCW 46.20.181(2) be deposited in the motor vehicle fund.
     (ii)(A) $6.02 of each driver's license renewal fee paid under RCW 46.20.181(2) is for the sole use of the department of transportation for local programs.
     (B)(I) Twenty-five percent of moneys received under this subsection (2)(c)(ii) must be deposited in the freight mobility investment account for the freight mobility strategic investment board to meet urgent freight corridor improvement and preservation needs.
     (II) Seventy-five percent of moneys received under this subsection (2)(c)(ii) must be deposited in the highway safety fund for safe routes to school program projects.
     (iii) $7.01 of each driver's license renewal fee paid under RCW 46.20.181(2) must be deposited in the Puget Sound ferry operations account for the sole use of the department of transportation for marine operations by the Washington state ferries.
     (iv) $6.69 of each driver's license renewal fee paid under RCW 46.20.181(2) must be deposited in the county arterial preservation account for the sole use of the county road administration board for the county arterial preservation program.
     (d) If the driver's license renewal fee paid under RCW 46.20.181(4) is for a driver's license with a term of less than six years, the amount to be deposited in the motor vehicle fund is four dollars multiplied by the number of years in the term of the driver's license.
     (e) If the driver's license renewal fee paid under RCW 46.20.181(5) is for a driver's license with a term of less than six years, the amount to be deposited in the state patrol highway account for the sole use of the Washington state patrol for highway activities is four dollars multiplied by the number of years in the term of the driver's license.
     (f) Thirty dollars of each identicard fee paid under RCW 46.20.117 must be deposited in the Puget Sound ferry operations account for the sole use of the department of transportation for marine operations by the Washington state ferries.
     (g) Five dollars of each driver's instruction permit fee paid under RCW 46.20.055 must be deposited in the state patrol highway account for the sole use of the Washington state patrol for highway activities.
     (h) Fifteen dollars of each driver's licensing examination fee paid under RCW 46.20.120(2) must be deposited in the Puget Sound ferry operations account for the sole use of the department of transportation for marine operations by the Washington state ferries.
     (i) Five dollars of each duplicate or replacement fee paid under RCW 46.20.200 must be deposited in the state patrol highway account for the sole use of the Washington state patrol for highway activities.
     (j) One hundred seventy-five dollars of each hearing request fee paid under RCW 46.20.308 must be deposited in the state patrol highway account for the sole use of the Washington state patrol for highway activities.

Sec. 11   RCW 46.70.061 and 2012 c 74 s 7 are each amended to read as follows:
     (1) The annual fees for original licenses issued for twelve consecutive months from the date of issuance under this chapter shall be:
     (a) Vehicle dealers, principal place of business for each and every license classification: Nine hundred seventy-five dollars;
     (b) Vehicle dealers, each subagency, and temporary subagency: One hundred dollars;
     (c) Vehicle manufacturers: Five hundred dollars.
     (2) The annual fee for renewal of any license issued pursuant to this chapter shall be:
     (a) Vehicle dealers, principal place of business for each and every license classification: Three hundred twenty-five dollars;
     (b) Vehicle dealer, each and every subagency: Twenty-five dollars;
     (c) Vehicle manufacturers: Two hundred fifty dollars.
     If any licensee fails or neglects to apply for such renewal within thirty days after the expiration of the license, or assigned renewal date under a staggered licensing system, the license shall be declared canceled by the director, in which case the licensee will be required to apply for an original license and pay the fee required for the original license.
     (3) The fee for the transfer to another location of any license classification issued pursuant to this chapter shall be twenty-five dollars.
     (4) The fee for vehicle dealer license plates and manufacturer license plates shall be the amount required by law for vehicle license plates exclusive of excise tax and gross weight and tonnage fees.
     (5)(a) All fees collected under this chapter shall be deposited in the state treasury and credited to the motor vehicle fund.
     (b) Two hundred twenty-five dollars of each fee paid under subsection (1)(a) of this section is for the sole use of the department of transportation for the benefit of major freight corridors.
     (c) Seventy-five dollars of each fee paid under subsection (2)(a) of this section is for the sole use of the department of transportation for the benefit of major freight corridors.
     (6) The fees prescribed in this section are in addition to any excise taxes imposed by chapter 82.44 RCW.

Sec. 12   RCW 46.09.520 and 2010 1st sp.s. c 37 s 936 and 2010 c 161 s 222 are each reenacted and amended to read as follows:
     (1) From time to time, but at least once each year, the state treasurer shall refund from the motor vehicle fund one percent of the motor vehicle fuel tax revenues collected under chapter 82.36 RCW, based on a tax rate of: (a) Nineteen cents per gallon of motor vehicle fuel from July 1, 2003, through June 30, 2005; (b) twenty cents per gallon of motor vehicle fuel from July 1, 2005, through June 30, 2007; (c) twenty-one cents per gallon of motor vehicle fuel from July 1, 2007, through June 30, 2009; (d) twenty-two cents per gallon of motor vehicle fuel from July 1, 2009, through June 30, 2011; ((and)) (e) twenty-three cents per gallon of motor vehicle fuel beginning July 1, 2011; (f) twenty-five cents per gallon of motor vehicle fuel beginning August 1, 2013; (g) twenty-seven cents per gallon of motor vehicle fuel beginning July 1, 2014; (h) twenty-nine cents per gallon of motor vehicle fuel beginning July 1, 2015; (i) thirty-one cents per gallon of motor vehicle fuel beginning July 1, 2016; (j) thirty-three cents per gallon of motor vehicle fuel beginning July 1, 2017, and thereafter, less proper deductions for refunds and costs of collection as provided in RCW 46.68.090.
     (2) The treasurer shall place these funds in the general fund as follows:
     (a) Thirty-six percent shall be credited to the ORV and nonhighway vehicle account and administered by the department of natural resources solely for acquisition, planning, development, maintenance, and management of ORV, nonmotorized, and nonhighway road recreation facilities, and information programs and maintenance of nonhighway roads;
     (b) Three and one-half percent shall be credited to the ORV and nonhighway vehicle account and administered by the department of fish and wildlife solely for the acquisition, planning, development, maintenance, and management of ORV, nonmotorized, and nonhighway road recreation facilities and the maintenance of nonhighway roads;
     (c) Two percent shall be credited to the ORV and nonhighway vehicle account and administered by the parks and recreation commission solely for the acquisition, planning, development, maintenance, and management of ORV, nonmotorized, and nonhighway road recreation facilities; and
     (d) Fifty-eight and one-half percent shall be credited to the nonhighway and off-road vehicle activities program account to be administered by the board for planning, acquisition, development, maintenance, and management of ORV, nonmotorized, and nonhighway road recreation facilities and for education, information, and law enforcement programs. The funds under this subsection shall be expended in accordance with the following limitations:
     (i) Not more than thirty percent may be expended for education, information, and law enforcement programs under this chapter;
     (ii) Not less than seventy percent may be expended for ORV, nonmotorized, and nonhighway road recreation facilities. Except as provided in (d)(iii) of this subsection, of this amount:
     (A) Not less than thirty percent, together with the funds the board receives under RCW 46.68.045, may be expended for ORV recreation facilities;
     (B) Not less than thirty percent may be expended for nonmotorized recreation facilities. Funds expended under this subsection (2)(d)(ii)(B) shall be known as Ira Spring outdoor recreation facilities funds; and
     (C) Not less than thirty percent may be expended for nonhighway road recreation facilities;
     (iii) The board may waive the minimum percentage cited in (d)(ii) of this subsection due to insufficient requests for funds or projects that score low in the board's project evaluation. Funds remaining after such a waiver must be allocated in accordance with board policy.
     (3) On a yearly basis an agency may not, except as provided in RCW 46.68.045, expend more than ten percent of the funds it receives under this chapter for general administration expenses incurred in carrying out this chapter.
     (4) During the 2009-2011 fiscal biennium, the legislature may appropriate such amounts as reflect the excess fund balance in the NOVA account to the department of natural resources to install consistent off-road vehicle signage at department-managed recreation sites, and to implement the recreation opportunities on department-managed lands in the Reiter block and Ahtanum state forest, and to the state parks and recreation commission. The legislature finds that the appropriation of funds from the NOVA account during the 2009-2011 fiscal biennium for maintenance and operation of state parks or to improve accessibility for boaters and off-road vehicle users at state parks will benefit boaters and off-road vehicle users and others who use nonhighway and nonmotorized recreational facilities. The appropriations under this subsection are not required to follow the specific distribution specified in subsection (2) of this section.

Sec. 13   RCW 46.10.530 and 2003 c 361 s 408 are each amended to read as follows:
     From time to time, but at least once each four years, the department shall determine the amount of moneys paid to it as motor vehicle fuel tax that is tax on snowmobile fuel. Such determination shall use one hundred thirty-five gallons as the average yearly fuel usage per snowmobile, the number of registered snowmobiles during the calendar year under determination, and a fuel tax rate of: (1) Nineteen cents per gallon of motor vehicle fuel from July 1, 2003, through June 30, 2005; (2) twenty cents per gallon of motor vehicle fuel from July 1, 2005, through June 30, 2007; (3) twenty-one cents per gallon of motor vehicle fuel from July 1, 2007, through June 30, 2009; (4) twenty-two cents per gallon of motor vehicle fuel from July 1, 2009, through June 30, 2011; ((and)) (5) twenty-three cents per gallon of motor vehicle fuel beginning July 1, 2011; (6) twenty-five cents per gallon of motor vehicle fuel beginning August 1, 2013; (7) twenty-seven cents per gallon of motor vehicle fuel beginning July 1, 2014; (8) twenty-nine cents per gallon of motor vehicle fuel beginning July 1, 2015; (9) thirty-one cents per gallon of motor vehicle fuel beginning July 1, 2016; (10) thirty-three cents per gallon of motor vehicle fuel beginning July 1, 2017, and thereafter.

Sec. 14   RCW 46.17.355 and 2011 c 171 s 61 are each amended to read as follows:
     (1) In lieu of the vehicle license fee required under RCW 46.17.350 and before accepting an application for a vehicle registration for motor vehicles described in RCW 46.16A.455, the department, county auditor or other agent, or subagent appointed by the director shall require the applicant, unless specifically exempt, to pay the following license fee by weight:

NEW SECTION.  Sec. 15   A new section is added to chapter 46.68 RCW to read as follows:
     The freight project fee imposed under RCW 46.17.355(6) must be distributed as follows:
     (1) Fifty percent to the freight mobility investment account created in RCW 46.68.300 to be used exclusively for rail intersection improvements and local freight connector projects; and
     (2) Fifty percent to the connecting Washington account created in section 5 of this act to be used exclusively for major freight corridors.

NEW SECTION.  Sec. 16   A new section is added to chapter 47.04 RCW to read as follows:
     (1) There is levied a twenty-five dollar per bicycle fee on each retail sale of a new bicycle, as defined in RCW 46.04.071, with a purchase price of five hundred dollars or more. The fee imposed in this section must be paid by the buyer to the seller, and each seller must collect from the buyer the full amount of the fee. The fee collected from the buyer by the seller must be paid to the department of revenue in accordance with RCW 82.32.045.
     (2) The department of revenue must incorporate into its regular audit cycle a reconciliation of the number of bicycles, with a purchase price of five hundred dollars or more, sold and the amount of revenue collected by the businesses selling new bicycles, with a purchase price of five hundred dollars or more, at retail. The department of revenue must collect on the business excise tax return from the businesses selling new bicycles at retail:
     (a) The number of bicycles sold with a purchase price of five hundred dollars or more; and
     (b) The fee levied in this section.
     (3) All other applicable provisions of chapter 82.32 RCW have full force and application with respect to the fee imposed under this section. The department of revenue must administer this section.
     (4) All receipts from the fee imposed under this section must be deposited into the complete streets grant program account created in RCW 47.04.325.

Sec. 17   RCW 82.21.030 and 1989 c 2 s 10 are each amended to read as follows:
     (1) A tax is imposed on the privilege of possession of hazardous substances in this state. The rate of the tax shall be ((seven-tenths of)) one percent multiplied by the wholesale value of the substance.
     (2)(a) Seventy percent of the moneys collected under this chapter shall be deposited in the toxics control accounts under RCW 70.105D.070; and
     (b) Thirty percent of the moneys collected under this chapter shall be deposited in the accounts created in section 18 of this act.
     (3) Chapter 82.32 RCW applies to the tax imposed in this chapter. The tax due dates, reporting periods, and return requirements applicable to chapter 82.04 RCW apply equally to the tax imposed in this chapter.

NEW SECTION.  Sec. 18   A new section is added to chapter 46.68 RCW to read as follows:
     (1) The state transportation storm water pollution and fish passage barrier account, the transportation improvement board storm water pollution account, the county road administration board storm water pollution account, and the department of ecology storm water pollution account are created in the state treasury.
     (2) The following moneys must be deposited into the state transportation storm water pollution and fish passage barrier account: (a) Those revenues that are raised by the tax imposed under RCW 82.21.030 and are attributable to that portion of the rate equal to 11.67 one-hundredths of one percent; and (b) any other money appropriated or transferred to the account by the legislature. Moneys in the account may be used only for activities or projects that mitigate or prevent contamination of storm water by toxic storm water pollutants from highways and other transportation infrastructure or for the removal of fish passage barriers related to the transportation system.
     (3) The following moneys must be deposited into the transportation improvement board storm water pollution account: (a) Those revenues that are raised by the tax imposed under RCW 82.21.030 and are attributable to that portion of the rate equal to 5.83 one-hundredths of one percent; and (b) any other money appropriated or transferred to the account by the legislature. Moneys in the account must be used by the transportation improvement board for grants or loans to local governments for activities or projects that mitigate or prevent contamination of storm water by toxic storm water pollutants from highways and other transportation infrastructure.
     (4) The following moneys must be deposited into the county road administration board storm water pollution account: (a) Those revenues that are raised by the tax imposed under RCW 82.21.030 and are attributable to that portion of the rate equal to 5.83 one-hundredths of one percent; and (b) any other money appropriated or transferred to the account by the legislature. Moneys in the account must be used by the county road administration board for grants or loans to local governments for activities or projects that mitigate or prevent contamination of storm water by toxic storm water pollutants from highways and other transportation infrastructure.
     (5)(a) The following moneys must be deposited into the department of ecology storm water pollution account: (i) Those revenues that are raised by the tax imposed under RCW 82.21.030 and are attributable to that portion of the rate equal to 6.67 one-hundredths of one percent; and (ii) any other money appropriated or transferred to the account by the legislature.
     (b) Fifty percent of the moneys in the account must be used by the department of ecology for grants or loans to local governments for activities or projects that mitigate or prevent contamination of storm water by toxic storm water pollutants from highways and other transportation infrastructure by retrofitting existing transportation infrastructure.
     (c) Fifty percent of the moneys in the account must be used by the department of ecology for grants or loans to the department of transportation for activities or projects that mitigate or prevent contamination of storm water by toxic storm water pollutants from highways and other transportation infrastructure by retrofitting existing transportation infrastructure.
     (6) Moneys in the accounts created in this section may be spent only after appropriation.

NEW SECTION.  Sec. 19   A new section is added to chapter 82.44 RCW to read as follows:
     (1) A statewide motor vehicle excise tax of seven-tenths of one percent is imposed at the time of vehicle registration renewal on the value of every motor vehicle registered under RCW 46.17.350(1) (h), (j), or (n) and every privately owned vehicle registered under RCW 46.17.355 that is less than ten thousand pounds gross vehicle weight, based on the valuation schedules in RCW 82.44.035. This subsection does not apply to vehicles defined in RCW 46.04.140, 46.04.181, 46.04.126, 46.04.190, 46.04.465, or 46.04.521.
     (2) A statewide motor vehicle excise tax of seven-tenths of one percent is imposed at the time of vehicle registration renewal on vehicles registered under RCW 46.17.350(1)(i), 46.61.723, or 46.61.725, or RCW 46.04.365 if registered for use on a highway, as defined in RCW 47.04.010, based on the valuation schedules in RCW 82.44.035.
     (3) A statewide motor vehicle excise tax of three and one-half tenths of one percent is imposed at the time of vehicle registration renewal on vehicles registered under RCW 46.17.350(1) (g) or (q) based on the valuation schedules under RCW 82.44.035.
     (4) A statewide motor vehicle excise tax imposed under this section is in addition to any other fee or tax required by law.

Sec. 20   RCW 82.44.125 and 2010 c 161 s 908 are each amended to read as follows:
     (1) The motor vehicle excise tax authorized under this chapter applies to the following vehicles:
     (a) Commercial trailers, as defined in RCW 46.04.136;
     (b) Farm trucks registered under RCW 46.16A.425;
     (c) Fixed load vehicles, as defined in RCW 46.04.186;
     (d) Motor homes, as defined in RCW 46.04.305;
     (e) Motor trucks, as defined in RCW 46.04.310, with a scale weight greater than six thousand pounds;
     (f) Motor vehicles, as defined in RCW 46.04.320; ((and))
     (g) Trailers, as defined in RCW 46.04.620; and
     (h) Travel trailers, as defined in RCW 46.04.623.
     (2) The motor vehicle excise tax authorized under this chapter does not apply to the following vehicles:
     (a) Campers, as defined in RCW 46.04.085;
     (b) Dock and warehouse tractors and their cars or trailers;
     (c) Equipment not designed primarily for use on public highways;
     (d) Exempt registered vehicles;
     (e) Lumber carriers of the type known as spiders;
     (f) Mobile homes, as defined in RCW 46.04.302;
     (g) Passenger motor vehicles, as described in RCW 82.44.015;
     (h) ((Travel trailers, as defined in RCW 46.04.623;
     (i))) Vehicles not used on the public highways; and
     (((j))) (i) Vehicles owned by nonresident military personnel of the armed forces of the United States stationed in the state of Washington if the nonresident military member was a nonresident of this state when enlisted into military service.

NEW SECTION.  Sec. 21   A new section is added to chapter 46.68 RCW to read as follows:
     The director shall forward all proceeds from the motor vehicle excise tax imposed under section 19 of this act to the state treasurer to be distributed according to the following method:
     (1)(a) 33.34 percent must be distributed quarterly statewide to transit authorities according to the distribution formula in (b) of this subsection. The moneys must be used for operations.
     (b)(i) One-third must be distributed based on vehicle miles of service provided;
     (ii) One-third must be distributed based on the number of vehicle hours of service provided; and
     (iii) One-third must be distributed based on the number of passenger trips.
     (c) For the purposes of this section:
     (i) "Transit authorities" has the same meaning as provided in RCW 9.91.025.
     (ii) "Vehicle miles of service," "vehicle hours of service," and "passenger trips" are transit service metrics as reported by the public transportation program of the department of transportation in the most recent annual report required in RCW 35.58.2796 that is made available prior to the calendar year in which the distribution occurs;
     (2) 8.25 percent must be distributed to counties under RCW 46.68.122;
     (3) 8.25 percent must be distributed to cities under RCW 46.68.110;
     (4) One million five hundred thousand dollars must be distributed annually to the essential rail assistance account created in RCW 47.76.250;
     (5) Five million dollars must be distributed annually to the transportation improvement account created in RCW 47.26.084 for the use of the transportation improvement board; and
     (6) The remainder must be distributed to the connecting Washington account created in section 5 of this act.

NEW SECTION.  Sec. 22   Section 19 of this act applies to vehicle registration renewals that are due or become due on or after June 30, 2014.

Sec. 23   RCW 47.60.322 and 2011 1st sp.s. c 16 s 2 are each amended to read as follows:
     (1) The capital vessel replacement account is created in the motor vehicle fund. All revenues generated from the vessel replacement surcharge under RCW 47.60.315(7) and the amount of service fees required under section 24(2) of this act must be deposited into the account. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used only for the construction or purchase of ferry vessels and to pay the principal and interest on bonds authorized for the construction or purchase of ferry vessels. However, expenditures from the account must first be used to support the construction or purchase, including any applicable financing costs, of a ferry vessel with a carrying capacity of at least one hundred forty-four cars.
     (2) The state treasurer may not transfer any moneys from the capital vessel replacement account except to the transportation 2003 account (nickel account) for debt service on bonds issued for the construction of ((a)) 144-car class ferry vessels.

NEW SECTION.  Sec. 24   A new section is added to chapter 46.17 RCW to read as follows:
     (1) The department and a county auditor or other agent appointed by the director shall collect a service fee of five dollars for each vehicle registration renewal processed by the department or that county auditor's or other agent's office. The service fee must be deposited into the connecting Washington account created in section 5 of this act.
     (2)(a) The department and a county auditor or other agent appointed by the director shall collect a service fee of twelve dollars for each certificate of title transaction processed by the department or that county auditor's or other agent's office.
     (b) Each fiscal year, the service fees collected under (a) of this subsection must be deposited into the capital vessel replacement account as authorized in RCW 47.60.322, except as required in (c) of this subsection.
     (c) Any service fees collected under (a) of this subsection that are in excess of seven million dollars per fiscal year must be deposited into the connecting Washington account created in section 5 of this act.

NEW SECTION.  Sec. 25   Sections 23 and 24 of this act apply to vehicle registrations that are due or become due on or after January 1, 2014.

NEW SECTION.  Sec. 26   (1) It is the intent of the legislature to provide diversified local revenue options that may be tailored to the needs of each jurisdiction. In the case of public transit systems in particular, there is a need for additional revenue sources beyond the current sales and use tax options, which may, on their own, not be sufficient to meet the funding challenges of a particular system.
     (2) It is also the intent that local governments provide countywide transportation planning and coordinate with other municipalities, transit systems, transportation benefit districts, planning organizations, and other transportation agencies. It is critical that all transportation infrastructure is well planned, coordinated, and maintained at the local levels to provide a seamless transportation infrastructure to enable people and goods to move safely and efficiently throughout the state and to bolster and improve the state's economy.
     (3) The legislature finds that the purchasing power of funds to pay for local transportation needs continues to decline while costs have risen. Without additional funding, counties and cities will continue to struggle financially to preserve and maintain county roads, city streets, and bridges; pavement conditions will to continue to decline; and public transit systems will be forced to cut services at a time when demand for transit services is increasing.

Sec. 27   RCW 36.73.065 and 2012 c 152 s 3 are each amended to read as follows:
     (1) Except as provided in subsection (4) of this section, taxes, fees, charges, and tolls may not be imposed by a district without approval of a majority of the voters in the district voting on a proposition at a general or special election. The proposition must include a specific description of: (a) The transportation improvement or improvements proposed by the district; (b) any rebate program proposed to be established under RCW 36.73.067; and (c) the proposed taxes, fees, charges, and the range of tolls imposed by the district to raise revenue to fund the improvement or improvements or rebate program, as applicable.
     (2) Voter approval under this section must be accorded substantial weight regarding the validity of a transportation improvement as defined in RCW 36.73.015.
     (3) A district may not increase any taxes, fees, charges, or range of tolls imposed or change a rebate program under this chapter once the taxes, fees, charges, tolls, or rebate program takes effect, unless authorized by the district voters pursuant to RCW 36.73.160 or up to forty dollars of the vehicle fee authorized in RCW 82.80.140 by the governing board of the district.
     (4)(a) A district that includes all the territory within the boundaries of the jurisdiction, or jurisdictions, establishing the district may impose by a majority vote of the governing board of the district the following fees and charges:
     (i) Up to ((twenty)) forty dollars of the vehicle fee authorized in RCW 82.80.140; or
     (ii) A fee or charge in accordance with RCW 36.73.120.
     (b) The vehicle fee authorized in (a) of this subsection may only be imposed for a passenger-only ferry transportation improvement if the vehicle fee is first approved by a majority of the voters within the jurisdiction of the district.
     (c)(i) A district solely comprised of a city or cities ((shall)) may not impose the fees or charges identified in (a) of this subsection within one hundred eighty days after July 22, 2007, unless the county in which the city or cities reside, by resolution, declares that it will not impose the fees or charges identified in (a) of this subsection within the one hundred eighty-day period; or
     (ii) A district solely comprised of a city or cities identified in RCW 36.73.020(6)(b) may not impose the fees or charges until after May 22, 2008, unless the county in which the city or cities reside, by resolution, declares that it will not impose the fees or charges identified in (a) of this subsection through May 22, 2008.
     (5) If the interlocal agreement in RCW 82.80.140(2)(a) cannot be reached, a district that includes only the unincorporated territory of a county may impose by a majority vote of the governing body of the district up to ((twenty)) forty dollars of the vehicle fee authorized in RCW 82.80.140.

NEW SECTION.  Sec. 28   A new section is added to chapter 82.80 RCW to read as follows:
     (1) A county with a population of one million or more may impose, by a majority of persons voting on the proposition or by a majority vote of the county council, a local motor vehicle excise tax of up to seven-tenths of one percent annually on the value of every motor vehicle registered to a person residing within the county based on the valuation schedules in RCW 82.44.035. A motor vehicle excise tax may not be imposed on vehicles licensed under RCW 46.17.355, except for motor vehicles with an unladen weight of six thousand pounds or less, RCW 46.16A.425, 46.17.335, or 46.17.350(1)(c).
     (2) A county imposing a tax under this section must contract, before the effective date of the resolution or ordinance imposing the local motor vehicle excise tax, administration and collection to the department of licensing, as appropriate, which must deduct an amount, as provided by contract, for administration and collection expenses incurred by the department.
     (3)(a) A county imposing a tax under this section must use sixty percent of the net funds, after any deductions pursuant to subsection (2) of this section, for the operation, maintenance, or capital needs of public transportation systems.
     (b) The remaining forty percent of the net funds, after any deductions pursuant to subsection (2) of this section, must be used for the operations and maintenance of local roads and must be distributed on a pro rata basis to the county imposing the local motor vehicle excise tax and to incorporated cities and towns within the county based upon the population of the unincorporated portion of the county, the population of an incorporated city, or the population of an incorporated town as a percentage of the total population of the county.
     (4) For purposes of this section, the population of an incorporated city or town is the most recent population determined by the office of financial management.

NEW SECTION.  Sec. 29   A new section is added to chapter 82.80 RCW to read as follows:
     (1) The governing body of a public transportation benefit area located in a county with a population of five hundred thousand or more that also contains a city with a population of seventy-five thousand or more operating a transit system pursuant to chapter 35.95 RCW may, by resolution or ordinance, for the sole purpose of providing funds for the operation, maintenance, or capital needs of public transportation systems, submit an authorizing proposition to the voters and, if approved by a majority of persons voting on the proposition, impose a local motor vehicle excise tax of up to seven-tenths of one percent annually on the value of every motor vehicle registered to a person residing within the public transportation benefit area based on the valuation schedules in RCW 82.44.035. A motor vehicle excise tax may not be imposed on vehicles licensed under RCW 46.17.355, except for motor vehicles with an unladen weight of six thousand pounds or less, RCW 46.16A.425, 46.17.335, or 46.17.350(1)(c).
     (2) The governing body of a public transportation benefit area imposing a tax under this section must contract, before the effective date of the resolution or ordinance imposing the local motor vehicle excise tax, administration and collection to the department of licensing, as appropriate, which must deduct an amount, as provided by contract, for administration and collection expenses incurred by the department.

Sec. 30   RCW 82.80.010 and 2003 c 350 s 1 are each amended to read as follows:
     (1) For purposes of this section:
     (a) "Distributor" means every person who imports, refines, manufactures, produces, or compounds motor vehicle fuel and special fuel as defined in RCW 82.36.010 and 82.38.020, respectively, and sells or distributes the fuel into a county;
     (b) "Person" has the same meaning as in RCW 82.04.030.
     (2) Subject to the conditions of this section, any county may levy, by approval of its legislative body and a majority of the registered voters of the county voting on the proposition at a general or special election, additional excise taxes equal to ((ten percent of the statewide motor vehicle fuel tax rate under RCW 82.36.025)) one cent, two cents, or three cents on each gallon of motor vehicle fuel as defined in RCW 82.36.010 and on each gallon of special fuel as defined in RCW 82.38.020 sold within the boundaries of the county. Vehicles paying an annual license fee under RCW 82.38.075 are exempt from the county fuel excise tax. An election held under this section must be held not more than twelve months before the date on which the proposed tax is to be levied. The ballot setting forth the proposition ((shall)) must state the tax rate that is proposed. The county's authority to levy additional excise taxes under this section includes the incorporated and unincorporated areas of the county. The additional excise taxes are subject to the same exceptions and rights of refund as applicable to other motor vehicle fuel and special fuel excise taxes levied under chapters 82.36 and 82.38 RCW. The proposed tax ((shall)) may not be levied less than one month from the date the election results are certified by the county election officer. The commencement date for the levy of any tax under this section ((shall be)) is the first day of January, April, July, or October.
     (3) The local option motor vehicle fuel tax on each gallon of motor vehicle fuel and on each gallon of special fuel is imposed upon the distributor of the fuel.
     (4) A taxable event for the purposes of this section occurs upon the first distribution of the fuel within the boundaries of a county to a retail outlet, bulk fuel user, or ultimate user of the fuel.
     (5) All administrative provisions in chapters 82.01, 82.03, and 82.32 RCW, insofar as they are applicable, apply to local option fuel taxes imposed under this section.
     (6) Before the effective date of the imposition of the fuel taxes under this section, a county ((shall)) must contract with the department of revenue for the administration and collection of the taxes. The contract must provide that a percentage amount, not to exceed one percent of the taxes imposed under this section, will be deposited into the local tax administration account created in the custody of the state treasurer. The department of revenue may spend money from this account, upon appropriation, for the administration of the local taxes imposed under this section.
     (7) The state treasurer ((shall)) must distribute monthly to the levying county and cities contained therein the proceeds of the additional excise taxes collected under this section, after the deductions for payments and expenditures as provided in RCW 46.68.090(1) (a) and (b) and under the conditions and limitations provided in RCW 82.80.080.
     (8) The proceeds of the additional excise taxes levied under this section ((shall)) must be used strictly for transportation purposes in accordance with RCW 82.80.070.
     (9) A county may not levy the tax under this section if they are levying the tax in RCW 82.80.110 or if they are a member of a regional transportation investment district levying the tax in RCW 82.80.120.

Sec. 31   RCW 82.80.140 and 2010 c 161 s 917 are each amended to read as follows:
     (1) Subject to the provisions of RCW 36.73.065, a transportation benefit district under chapter 36.73 RCW may fix and impose an annual vehicle fee, not to exceed one hundred dollars per vehicle registered in the district, for each vehicle subject to vehicle license fees under RCW 46.17.350(1) (a), (c), (d), (e), (g), (h), (j), or (n) through (q) and for each vehicle subject to gross weight license fees under RCW 46.17.355 with a scale weight of six thousand pounds or less.
     (2)(a) A district that includes all the territory within the boundaries of the jurisdiction, or jurisdictions, establishing the district may impose by a majority vote of the governing board of the district up to ((twenty)) forty dollars of the vehicle fee authorized in subsection (1) of this section. If the district is countywide, the revenues of the fee shall be distributed to each city within the county by interlocal agreement. The interlocal agreement is effective when approved by the county and sixty percent of the cities representing seventy-five percent of the population of the cities within the county in which the countywide fee is collected.
     (b) A district may not impose a fee under this subsection (2):
     (i) For a passenger-only ferry transportation improvement unless the vehicle fee is first approved by a majority of the voters within the jurisdiction of the district; or
     (ii) That, if combined with the fees previously imposed by another district within its boundaries under RCW 36.73.065(4)(a)(i), exceeds ((twenty)) forty dollars.
     If a district imposes or increases a fee under this subsection (2) that, if combined with the fees previously imposed by another district within its boundaries, exceeds ((twenty)) forty dollars, the district shall provide a credit for the previously imposed fees so that the combined vehicle fee does not exceed ((twenty)) forty dollars.
     (3) The department of licensing shall administer and collect the fee. The department shall deduct a percentage amount, as provided by contract, not to exceed one percent of the fees collected, for administration and collection expenses incurred by it. The department shall remit remaining proceeds to the custody of the state treasurer. The state treasurer shall distribute the proceeds to the district on a monthly basis.
     (4) No fee under this section may be collected until six months after approval under RCW 36.73.065.
     (5) The vehicle fee under this section applies only when renewing a vehicle registration, and is effective upon the registration renewal date as provided by the department of licensing.
     (6) The following vehicles are exempt from the fee under this section:
     (a) Campers, as defined in RCW 46.04.085;
     (b) Farm tractors or farm vehicles, as defined in RCW 46.04.180 and 46.04.181;
     (c) Mopeds, as defined in RCW 46.04.304;
     (d) Off-road and nonhighway vehicles, as defined in RCW 46.04.365;
     (e) Private use single-axle trailer, as defined in RCW 46.04.422;
     (f) Snowmobiles, as defined in RCW 46.04.546; and
     (g) Vehicles registered under chapter 46.87 RCW and the international registration plan.

Sec. 32   RCW 82.14.045 and 2008 c 86 s 102 are each amended to read as follows:
     (1)(a) The legislative body of any city pursuant to RCW 35.92.060, of any county which has created an unincorporated transportation benefit area pursuant to RCW 36.57.100 and 36.57.110, of any public transportation benefit area pursuant to RCW 36.57A.080 and 36.57A.090, of any county transportation authority established pursuant to chapter 36.57 RCW, and of any metropolitan municipal corporation within a county with a population of one million or more pursuant to chapter 35.58 RCW, may, by resolution or ordinance for the sole purpose of providing funds for the operation, maintenance, or capital needs of public transportation systems or public transportation limited to persons with special needs under RCW 36.57.130 and 36.57A.180, and in lieu of the excise taxes authorized by RCW 35.95.040, submit an authorizing proposition to the voters or include such authorization in a proposition to perform the function of public transportation or public transportation limited to persons with special needs under RCW 36.57.130 and 36.57A.180, and if approved by a majority of persons voting thereon, impose a sales and use tax in accordance with the terms of this chapter. Where an authorizing proposition is submitted by a county on behalf of an unincorporated transportation benefit area, it shall be voted upon by the voters residing within the boundaries of such unincorporated transportation benefit area and, if approved, the sales and use tax shall be imposed only within such area. Notwithstanding any provisions of this section to the contrary, any county in which a county public transportation plan has been adopted pursuant to RCW 36.57.070 and the voters of such county have authorized the imposition of a sales and use tax pursuant to the provisions of section 10, chapter 167, Laws of 1974 ex. sess., prior to July 1, 1975, shall be authorized to fix and impose a sales and use tax as provided in this section at not to exceed the rate so authorized without additional approval of the voters of such county as otherwise required by this section.
     (b)(i) The tax authorized under this section may also be imposed if the legislative body of any of the entities set forth in (a) of this subsection establishes an enhanced public transportation zone within a portion of the territory of the entity and if approved by the voters in the enhanced public transportation zone in the manner provided for in this section. An enhanced public transportation zone may include all or a portion of any city or town as long as all or a portion of the city or town is within the territory of the establishing entity. The establishing entity must consult with the department of revenue on sales tax collection methods when establishing the boundaries of the enhanced public transportation zone.
     (ii) A tax imposed pursuant to this subsection (1)(b), when combined with the existing rate of tax imposed by the establishing entity, may not exceed the rate allowed under this section, and expires either five years after imposition, unless reauthorized in the manner provided for in this section, or upon failure of a reauthorization. Prior to reauthorization, the enhanced public transportation zone boundaries must be readjusted, if necessary, to meet the definition provided for in (b)(iv) of this subsection. A tax imposed pursuant to this subsection (1)(b) must be imposed only in the territory of the enhanced public transportation zone. The revenue from the tax imposed pursuant to this subsection (1)(b) must be expended only for public transportation service within the enhanced public transportation zone and must not supplant existing revenues allocated to the enhanced public transportation zone.
     (iii) Six months prior to the voter authorization or reauthorization of the tax authorized under this subsection (1)(b), the establishing entity must determine a baseline level of fixed-route public transportation service. This baseline level of service must be publicly posted on the web site of the establishing entity. Upon the collection of the tax imposed pursuant to this subsection (1)(b), fixed-route public transportation service within the enhanced public transportation zone must increase proportionally to additional revenue generated within the enhanced public transportation zone. Service hours within the enhanced public transportation zone must increase from the baseline level in accordance with the establishing entity's most recent cost of fixed-route public transportation per service hour, as approved by the national transit database. A report on the increase in public transportation service must be publicly posted annually on the establishing entity's web site.
     (iv) For purposes of this subsection (1)(b), "enhanced public transportation zone" means a zone in which the establishing entity by resolution or ordinance finds that the zone warrants consistent and sustainable transportation service levels of passenger capacity, speed, and service frequency to serve persons within the zone that would otherwise be substantially disadvantaged if the zone were not created. An enhanced public transportation zone must include fifty-five percent or more of the population of the establishing entity designated as low income or minority for purposes of Title VI of the federal civil rights act of 1964, but may not include more than forty-nine percent of the population of the establishing entity. The boundaries of any enhanced public transportation zone must follow election precinct lines as far as practicable.
     (c) The tax authorized by this section shall be in addition to the tax authorized by RCW 82.14.030 and shall be collected from those persons who are taxable by the state under chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event within such city, public transportation benefit area, county, or metropolitan municipal corporation as the case may be. The rate of such tax shall be one-tenth, two-tenths, three-tenths, four-tenths, five-tenths, six-tenths, seven-tenths, eight-tenths, or nine-tenths of one percent of the selling price (in the case of a sales tax) or value of the article used (in the case of a use tax). The rate of such tax shall not exceed the rate authorized by the voters unless such increase shall be similarly approved.
     (2)(a) In the event a metropolitan municipal corporation imposes a sales and use tax pursuant to this chapter no city, county which has created an unincorporated transportation benefit area, public transportation benefit area authority, or county transportation authority wholly within such metropolitan municipal corporation shall be empowered to impose and/or collect taxes under RCW 35.95.040 or this section, but nothing herein shall prevent such city or county from imposing sales and use taxes pursuant to any other authorization.
     (b) In the event a county transportation authority imposes a sales and use tax under this section, no city, county which has created an unincorporated transportation benefit area, public transportation benefit area, or metropolitan municipal corporation, located within the territory of the authority, shall be empowered to impose or collect taxes under RCW 35.95.040 or this section.
     (c) In the event a public transportation benefit area imposes a sales and use tax under this section, no city, county which has created an unincorporated transportation benefit area, or metropolitan municipal corporation, located wholly or partly within the territory of the public transportation benefit area, shall be empowered to impose or collect taxes under RCW 35.95.040 or this section.

NEW SECTION.  Sec. 33   If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION.  Sec. 34   Sections 1 through 5 and 12 through 25 of this act take effect August 1, 2013.

NEW SECTION.  Sec. 35   Sections 6 through 11 of this act take effect July 1, 2015.

NEW SECTION.  Sec. 36   Sections 26 through 32 of this act take effect January 1, 2014.

NEW SECTION.  Sec. 37   Sections 6 through 11 of this act expire July 1, 2022.