AN ACT Relating to authorizing the financing of regional transportation improvements by counties; amending RCW 81.104.140, 81.104.160, 81.104.170, 82.14.045, 82.14.050, 81.100.030, 81.100.060, 82.80.010, 82.80.020, 82.80.030, 82.80.070, 82.80.080, 47.56.030, 47.56.075, 84.52.010, and 84.52.052; reenacting and amending RCW 43.84.092; adding a new section to chapter 82.14 RCW; adding a new section to chapter 43.135 RCW; adding a new section to chapter 82.32 RCW; adding a new section to chapter 82.80 RCW; adding a new section to chapter 47.56 RCW; adding new chapters to Title 36 RCW; creating new sections; and providing a contingent effective date.

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

I. IMPLEMENTING REGIONAL TRANSPORTATION INVESTMENT PLANS

NEW SECTION. Sec. 101. FINDINGS. The legislature finds that:

(1) The capacity of many of Washington state's transportation facilities have failed to keep up with the state's growth, particularly in major urban regions;

(2) The state cannot by itself fund, in a timely way, many of the major capacity and other improvements required on highways of statewide significance and for other regional transportation projects in the state's largest urbanized areas;

(3) Providing a transportation system that maintains efficient mobility for persons and freight requires a partnership between the state, local, and regional governments and the private sector;

(4) Timely construction and development of significant transportation improvement projects can best be achieved through enhanced funding options for governments at the city, county, and regional levels. The legislature intends to use existing governments, existing tax authority with enhancements, and existing authority for interlocal cooperation among governments to address critical local, regional, and statewide roadway and multimodal needs; and

(5) Voters must be assured that locally generated moneys to address transportation projects will remain within the taxing jurisdiction and that the tax revenues will be used to address an identified list of projects and activities.

NEW SECTION. Sec. 102. DEFINITIONS. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

(1) "Lead agency" means a public agency designated by a county to plan, design, and build a project.

(2) "Transportation improvement projects" or "projects" means projects contained in the transportation plan of the state or a regional transportation planning organization. Projects may include new or existing highways of statewide significance or local principal arterials of regional significance, rail facilities, monorail facilities, public transportation investments, ferry system capital improvements, and transportation demand management programs. Projects may also include the operation, preservation, and maintenance of these roadways and other facilities.

(3) "Regional transportation investment plan" or "plan" means a plan to develop, construct, and finance a transportation project or projects.

(4) "Regional transportation planning organization" means that organization as defined in chapter 47.80 RCW.

NEW SECTION. Sec. 103. RTPO PLANNING DUTIES‑-SUBMISSION OF PLAN TO THE VOTERS‑-PROJECT IMPLEMENTATION. (1) If a transportation revenue act becomes law in 2002, a county or counties choosing to implement a plan under this chapter shall request that a regional transportation planning organization of which they are a member develop a regional transportation investment plan. The organization must adopt the plan within ninety days of the county request.

(2) If a transportation revenue act becomes law in 2002, in developing the plan the organization:

(a) Should consider regional transportation equity and land use planning;

(b) Shall coordinate its activities with the department of transportation, which shall provide services, data, and personnel to assist in this planning as desired by the organization;

(c) Shall coordinate with local government entities within the boundaries of the requesting county that engage in transportation planning;

(d) Shall develop accurate cost forecasts for each project included in the plan with assistance from the department and the lead agency. This project costing methodology must include but not be limited to:

(i) Integration with a range of revenue forecasts;

(ii) Estimated project costs in constant dollars and year of expenditure dollars;

(iii) A range of project costs reflected by the level of project design;

(iv) Project contingencies;

(v) Identification of mitigation costs; and

(vi) Project and plan cash flow and bond analysis;

(e) Shall conduct public meetings that are needed to assure active public participation in the development of the plan.

(3) If a transportation revenue act becomes law in 2002, the plan adopted by the organization must include provisions:

(a) Providing for the selection, development, construction, and financing of transportation improvement projects;

(b) Providing for improvements in mobility based on addressing transportation improvement projects;

(d) Providing that the maximum amount possible of the funds raised will be used to fund projects in the plan. Allowable costs include environmental improvements and mitigation. The plan must minimize administrative costs; and

(e) Recommending sources of revenue authorized by section 104 of this act and a financing plan to fund transportation projects included in the plan. Any state funding for projects developed under this chapter must be specifically provided for in state law.

(4) If a transportation revenue act becomes law in 2002, once adopted, the plan must be forwarded to the county legislative authority or authorities for approval or rejection. Before a county initiates the election process, the county shall provide notice of the plan to each city and town within the district, the governor, the chairs of the transportation committees of the legislature, the secretary of transportation, and each legislator whose legislative district is partially or wholly within the boundaries of the county.

(5) If a transportation revenue act becomes law in 2002, if the plan fails under subsection (6) of this section the regional transportation planning organization may redefine the selected projects and the project and financing plan. The county or counties may approve the new plan and resubmit it under subsections (6) through (8) of this section.

(6) If a transportation revenue act becomes law in 2002, if the county legislative authority approves the plan, the county legislative authority shall:

(a) Draft a ballot title;

(b) Give notice as required by law for ballot measures; and

(c) Perform other duties as required to put the plan before the voters of the county for their approval or rejection as a single ballot proposition that approves the plan.

(7) If a transportation revenue act becomes law in 2002, the electorate will be the voters voting within the boundaries of the county. A simple majority of those voting on a single proposition to approve the plan and impose the taxes and fees within each county is required for approval.

(8) If a transportation revenue act becomes law in 2002, and if the plan is approved by the voters and involves more than one county, the counties must negotiate interlocal agreements necessary to implement the plan.

(9) If a transportation revenue act becomes law in 2002, after voter approval of the plan, the county or counties shall enter into agreements with lead agencies as to who will acquire, construct, or develop projects approved by the voters. The county or counties shall negotiate reasonable terms and conditions to assist lead agencies in funding projects. The overall plan of the county or counties must leverage the county's or counties' financial contributions so that the state and other revenue sources continue to fund major state‑owned congestion relief and transportation capacity improvement projects.

(10) If a transportation revenue act becomes law in 2002, a county may, after consultation with the regional transportation planning organization, amend projects in the plan as warranted without voter approval. However, increases in the cost of a project, including a member county's share of the cost, that exceed twenty percent must be addressed under section 107 of this act.

NEW SECTION. Sec. 104. TAXES AND FEES. (1) In order to fund a regional transportation investment plan, a county may, upon approval of the voters as provided in this chapter, impose some or all of the following taxes:

(a) A sales and use tax, as specified in section 206 of this act;

(b) A local option vehicle license fee, as specified under section 211 of this act;

(d) A local motor vehicle excise tax under RCW 81.100.060 and chapter 81.104 RCW;

(e) A local option fuel tax under RCW 82.80.010;

(f) An employer excise tax under RCW 81.100.030;

(g) A sales and use tax under RCW 82.14.045;

(h) A sales and use tax under RCW 81.104.170; and

(i) Vehicle tolls, but only on new or expanded facilities. Unless otherwise specified by law, the department of transportation shall administer the collection of vehicle tolls on designated facilities, and the state transportation commission, or its successor, shall be the tolling authority.

(2) Taxes, fees, and tolls may not be imposed without an affirmative vote of the majority of the voters within the boundaries of the county voting on a ballot proposition as set forth in section 103 (6) through (8) of this act. Revenues from these taxes and fees may be used only to implement this chapter. A county may contract with the state department of revenue or other appropriate entities for administration and collection of any of the taxes or fees authorized in this section.

(3) Existing statewide motor vehicle fuel and special fuel taxes, at the distribution rates in effect on January 1, 2001, are not intended to be altered by this chapter.

(4)(a) The state sales tax imposed and collected under chapters 82.08 and 82.12 RCW, less any credits allowed under chapter 82.14 RCW, on initial construction for any project to be constructed under this chapter must be transferred to the project or identified as a credit on the project to defray costs or pay debt service on that project. In the case of a toll project, the transfer or credit must be used to lower the overall cost of the project and thereby the amount or term of the tolls.

(b) This transaction is exempt from the requirements in RCW 43.135.035(4).

(c) Government entities constructing projects under this chapter shall report the amount of state sales or use tax covered under this subsection (4) to the department of revenue.

NEW SECTION. Sec. 105. REVENUE DISTRIBUTION. The revenues generated under section 104 of this act must be distributed in the following manner:

(1) Tolls collected on state routes must be deposited in the motor vehicle fund for the use of the department of transportation. Tolls on other facilities must be used to pay for those facilities.

(2) Of the remaining amount:

(a) Seventy percent must be deposited in the regional transportation investment account. The department of transportation and the transportation improvement board must use the funds to implement projects identified in the regional transportation investment plan;

(b) Fifteen percent must be distributed to the county for transportation uses consistent with the ballot proposition and adopted transportation and land use plans of the jurisdiction spending the funds and consistent with any applicable and adopted regional transportation plan for regional transportation planning areas;

(c) Fifteen percent must be distributed to cities and towns within the county for transportation uses consistent with the ballot proposition and with the adopted transportation and land use plans of the jurisdiction spending the funds and consistent with any applicable and adopted regional transportation plan for regional transportation planning areas.

NEW SECTION. Sec. 106. DESIGN-BUILD. A county may use the design‑build procedure defined in RCW 47.20.780 for projects funded by it under this chapter. The requirements and limitations of RCW 47.20.780 and 47.20.785 do not apply to the projects under this chapter.

NEW SECTION. Sec. 107. PERFORMANCE CRITERIA FOR REGIONAL PROJECT SELECTION. (1) The regional transportation planning organization shall consider the following criteria for selecting projects to improve corridor performance:

(a) Reduced level of congestion and improved safety;

(b) Improved travel time;

(d) Increased daily and peak period person and vehicle trip capacity;

(e) Reduced person and vehicle delay;

(f) Improved freight mobility; and

(g) Cost-effectiveness of the investment.

(2) These criteria represent only minimum standards that must be considered in selecting transportation improvement projects.

(3) The county shall monitor and audit the progress and execution of projects to protect the investment of the public. If a project cost exceeds its original cost by more than twenty percent as identified in the plan:

(a) The county legislative authority shall submit to the voters a ballot measure that redefines the scope of the project, its schedule, or its costs. If the voters fail to approve the redefined project, the county shall terminate work on that project, except that the county may take reasonable steps to use, preserve, or connect any improvement already constructed. The remainder of any funds that would otherwise have been expended on the terminated project must first be used to retire any outstanding debt attributable to the plan and then may be used to implement the remainder of the plan.

(b) Alternatively, upon adoption of a resolution by a two-thirds majority of the county legislative authority:

(i) The county shall submit to the voters a ballot measure that redefines the scope of the plan, its projects, its schedule, or its costs. If the voters fail to approve the redefined plan, the county shall terminate work on that plan, except that the county may take reasonable steps to use, preserve, or connect any improvement already constructed. The remainder of any funds must be used to retire any outstanding debt attributable to the plan; or

(ii) The county may elect to continue the project without submitting an additional ballot proposal to the voters.

(4) To assure accountability to the public for the timely construction of the transportation improvement project or projects within cost projections, the county shall issue a report, at least annually, to the public and copies of the report to newspapers of record in the county. In the report, the county shall indicate the status of project costs, project expenditures, revenues, and construction schedules. The county may also include in its report progress towards meeting the performance criteria provided under this chapter.

NEW SECTION. Sec. 108. WASHINGTON STATE DEPARTMENT OF TRANSPORTATION ROLE. (1) The department shall designate an office of dedicated staff and services to assist counties under this chapter. The primary responsibility of the dedicated staff is to coordinate the design, preliminary engineering, permitting, financing, and construction of projects in which the state has a role and are under consideration by a county or counties.

(2) All of the powers granted the department under Title 47 RCW relating to highway construction may, at the request of a county participating in a plan, be used to implement a regional transportation investment plan and construct transportation projects.

NEW SECTION. Sec. 109. DISSOLUTION. The county legislative authority may terminate any taxes, fees, or tolls imposed under an approved plan if it finds that the financing or debt service on the project or series of projects constructed under this plan has been completed and paid.

II. FINANCE

NEW SECTION. Sec. 201. REGIONAL TRANSPORTATION INVESTMENT ACCOUNT. A regional transportation investment account is created in the custody of the state treasurer for each county funding projects under chapter 36.-- RCW (sections 101 through 109 of this act). All money deposited in a regional transportation investment account by each county will be used for design, right of way acquisition, capital acquisition, construction, payment of debt service associated with these activities, or the operation, maintenance, and preservation of county funded projects developed under chapter 36.-- RCW (sections 101 through 109 of this act). The account is subject to allotment procedures under chapter 43.88 RCW and the department of transportation is the administering agency for the account. The county must approve the allotments before any expenditures may be made from the account. An appropriation is not required for expenditures from this account.

Sec. 202. RCW 43.84.092 and 2001 2nd sp.s. c 14 s 608, 2001 c 273 s 6, 2001 c 141 s 3, and 2001 c 80 s 5 are each reenacted and amended to read as follows:

INTEREST EARNINGS. (1) All earnings of investments of surplus balances in the state treasury shall be deposited to the treasury income account, which account is hereby established in the state treasury.

(2) The treasury income account shall be utilized to pay or receive funds associated with federal programs as required by the federal cash management improvement act of 1990. The treasury income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for refunds or allocations of interest earnings required by the cash management improvement act. Refunds of interest to the federal treasury required under the cash management improvement act fall under RCW 43.88.180 and shall not require appropriation. The office of financial management shall determine the amounts due to or from the federal government pursuant to the cash management improvement act. The office of financial management may direct transfers of funds between accounts as deemed necessary to implement the provisions of the cash management improvement act, and this subsection. Refunds or allocations shall occur prior to the distributions of earnings set forth in subsection (4) of this section.

(3) Except for the provisions of RCW 43.84.160, the treasury income account may be utilized for the payment of purchased banking services on behalf of treasury funds including, but not limited to, depository, safekeeping, and disbursement functions for the state treasury and affected state agencies. The treasury income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for payments to financial institutions. Payments shall occur prior to distribution of earnings set forth in subsection (4) of this section.

(4) Monthly, the state treasurer shall distribute the earnings credited to the treasury income account. The state treasurer shall credit the general fund with all the earnings credited to the treasury income account except:

(a) The following accounts and funds shall receive their proportionate share of earnings based upon each account's and fund's average daily balance for the period: The capitol building construction account, the Cedar River channel construction and operation account, the Central Washington University capital projects account, the charitable, educational, penal and reformatory institutions account, the common school construction fund, the county criminal justice assistance account, the county sales and use tax equalization account, the data processing building construction account, the deferred compensation administrative account, the deferred compensation principal account, the department of retirement systems expense account, the drinking water assistance account, the drinking water assistance administrative account, the drinking water assistance repayment account, the Eastern Washington University capital projects account, the education construction fund, the emergency reserve fund, the federal forest revolving account, the health services account, the public health services account, the health system capacity account, the personal health services account, the state higher education construction account, the higher education construction account, the highway infrastructure account, the industrial insurance premium refund account, the judges' retirement account, the judicial retirement administrative account, the judicial retirement principal account, the local leasehold excise tax account, the local real estate excise tax account, the local sales and use tax account, the medical aid account, the mobile home park relocation fund, the multimodal transportation account, the municipal criminal justice assistance account, the municipal sales and use tax equalization account, the natural resources deposit account, the oyster reserve land account, the perpetual surveillance and maintenance account, the public employees' retirement system plan 1 account, the public employees' retirement system combined plan 2 and plan 3 account, the public health supplemental account, the Puyallup tribal settlement account, regional transportation investment accounts, the resource management cost account, the site closure account, the special wildlife account, the state employees' insurance account, the state employees' insurance reserve account, the state investment board expense account, the state investment board commingled trust fund accounts, the supplemental pension account, the teachers' retirement system plan 1 account, the teachers' retirement system combined plan 2 and plan 3 account, the tobacco prevention and control account, the tobacco settlement account, the transportation infrastructure account, the tuition recovery trust fund, the University of Washington bond retirement fund, the University of Washington building account, the volunteer fire fighters' and reserve officers' relief and pension principal fund, the volunteer fire fighters' and reserve officers' administrative fund, the Washington fruit express account, the Washington judicial retirement system account, the Washington law enforcement officers' and fire fighters' system plan 1 retirement account, the Washington law enforcement officers' and fire fighters' system plan 2 retirement account, the Washington school employees' retirement system combined plan 2 and 3 account, the Washington state health insurance pool account, the Washington state patrol retirement account, the Washington State University building account, the Washington State University bond retirement fund, the water pollution control revolving fund, and the Western Washington University capital projects account. Earnings derived from investing balances of the agricultural permanent fund, the normal school permanent fund, the permanent common school fund, the scientific permanent fund, and the state university permanent fund shall be allocated to their respective beneficiary accounts. All earnings to be distributed under this subsection (4)(a) shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.

(b) The following accounts and funds shall receive eighty percent of their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The aeronautics account, the aircraft search and rescue account, the county arterial preservation account, the department of licensing services account, the essential rail assistance account, the ferry bond retirement fund, the grade crossing protective fund, the high capacity transportation account, the highway bond retirement fund, the highway safety account, the motor vehicle fund, the motorcycle safety education account, the pilotage account, the public transportation systems account, the Puget Sound capital construction account, the Puget Sound ferry operations account, the recreational vehicle account, the rural arterial trust account, the safety and education account, the special category C account, the state patrol highway account, the transportation equipment fund, the transportation fund, the transportation improvement account, the transportation improvement board bond retirement account, and the urban arterial trust account.

(5) In conformance with Article II, section 37 of the state Constitution, no treasury accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

Sec. 203. RCW 81.104.140 and 1992 c 101 s 25 are each amended to read as follows:

HCT TAXES FOR REGIONAL TRANSIT. (1) Agencies authorized ((~~to provide high capacity transportation service, including transit agencies and regional transit authorities,~~)) under this section are hereby granted dedicated funding sources for ((~~such~~)) high capacity transportation systems. These dedicated funding sources, as set forth in RCW 81.104.150, 81.104.160, and 81.104.170, are authorized ((~~only~~)) for:

(a) Transit agencies located in (((a) each county with a population of two hundred ten thousand or more and (b) each county with a population of from one hundred twenty‑five thousand to less than two hundred ten thousand except for those counties that do not border a county with a population as described under (a) of this subsection. In any county with a population of one million or more or in any county having a population of four hundred thousand or more bordering a county with a population of one million or more, these funding sources may be imposed only by a regional transit authority)) a county that neither participates in nor is eligible to participate in a regional transit authority;

(b) Regional transit authorities;

(c) Counties that dedicate the funds to developing capital facilities for high capacity transportation systems as part of a regional transportation investment plan and meet the following requirements:

(i) Counties that participate in a regional transit authority must obtain the approval of the authority;

(ii) Counties that do not participate in a regional transit authority must have a transit agency within their boundaries and must obtain the approval of the affected transit authority or authorities;

(iii) Counties may only impose a tax authorized by this section to the extent that the maximum amount of taxes authorized under this chapter have not been imposed.

(2) Agencies planning to construct and operate a high capacity transportation system should also seek other funds, including federal, state, local, and private sector assistance.

(3) Funding sources should satisfy each of the following criteria to the greatest extent possible:

(a) Acceptability;

(b) Ease of administration;

(d) Implementation feasibility;

(e) Revenue reliability; and

(f) Revenue yield.

(4) Agencies participating in regional high capacity transportation system development are authorized to levy and collect the following voter‑approved local option funding sources:

(a) Employer tax as provided in RCW 81.104.150, other than by counties under chapter 36.-- RCW (sections 101 through 109 of this act);

(b) Special motor vehicle excise tax as provided in RCW 81.104.160; and

Revenues from these taxes may be used only to support those purposes prescribed in subsection (10) of this section. Before the date of an election authorizing an agency to impose any of the taxes enumerated in this section and authorized in RCW 81.104.150, 81.104.160, and 81.104.170, the agency must comply with the process prescribed in RCW 81.104.100 (1) and (2) and 81.104.110. No construction on exclusive right of way may occur before the requirements of RCW 81.104.100(3) are met.

(5) Authorization in subsection (4) of this section shall not adversely affect the funding authority of transit agencies not provided for in this chapter. Local option funds may be used to support implementation of interlocal agreements with respect to the establishment of regional high capacity transportation service. Except when a regional transit authority exists, local jurisdictions shall retain control over moneys generated within their boundaries, although funds may be commingled with those generated in other areas for planning, construction, and operation of high capacity transportation systems as set forth in the agreements.

(6) Agencies planning to construct ((~~and~~)) or operate high capacity transportation systems may contract with the state for collection and transference of voter‑approved local option revenue.

(7) Dedicated high capacity transportation funding sources authorized in RCW 81.104.150, 81.104.160, and 81.104.170 shall be subject to voter approval by a simple majority. A single ballot proposition may seek approval for one or more of the authorized taxing sources. The ballot title shall reference the document identified in subsection (8) of this section.

(8) Agencies shall provide to the registered voters in the area a document describing the systems plan and the financing plan set forth in RCW 81.104.100. It shall also describe the relationship of the system to regional issues such as development density at station locations and activity centers, and the interrelationship of the system to adopted land use and transportation demand management goals within the region. This document shall be provided to the voters at least twenty days prior to the date of the election.

(9) For any election in which voter approval is sought for a high capacity transportation system plan and financing plan pursuant to RCW 81.104.040, a local voter's pamphlet shall be produced as provided in chapter 29.81A RCW.

(10) Agencies providing high capacity transportation service shall retain responsibility for revenue encumbrance, disbursement, and bonding. Funds may be used for any purpose relating to planning, construction, and operation of high capacity transportation systems and commuter rail systems, personal rapid transit, busways, bus sets, and entrained and linked buses.

(11) Eligible transit agencies or counties within which there are transit agencies, and with those agencies' approval, may choose to implement high capacity transportation service as a joint effort across their respective jurisdictions. Eligible entities may coordinate efforts to implement some or all of the dedicated funding sources set forth in RCW 81.104.150, 81.104.160, and 81.104.170 to accomplish this goal. Entities electing to coordinate efforts shall enter into interlocal agreements specifying the terms of the coordination. The respective county legislative authorities may choose to set forth a common ballot measure and vote to authorize the dedicated funding sources. Eligible entities include:

(a) Transit agencies located in a county that is neither participating in, nor is eligible to participate in, a regional transit authority; and

(b) Counties in which there are transit agencies and that are implementing a regional transportation investment plan as defined in section 102 of this act.

Sec. 204. RCW 81.104.160 and 1998 c 321 s 35 are each amended to read as follows:

HCT‑-MVET. (1) Cities that operate transit systems, county transportation authorities, metropolitan municipal corporations, public transportation benefit areas, ((~~and~~)) regional transit authorities, and counties, as part of a regional transportation investment plan, may submit an authorizing proposition to the voters, and if approved, may levy and collect ((an)) a motor vehicle excise tax, at a rate approved by the voters, but not exceeding eighty one-hundredths of one percent ((on)) of the value((~~, under chapter 82.44 RCW,~~)) of every motor vehicle owned by a resident of the taxing district, solely for the purpose of providing high capacity transportation service, and for counties, as part of a regional transportation investment plan, solely for the purpose of providing high capacity transportation capital facilities or improvements. In any county imposing a motor vehicle excise tax surcharge pursuant to RCW 81.100.060, the maximum tax rate under this section shall be reduced to a rate equal to eighty one-hundredths of one percent on the value less the equivalent motor vehicle excise tax rate of the surcharge imposed pursuant to RCW 81.100.060. This rate shall not apply to vehicles licensed under RCW 46.16.070 except vehicles with an unladen weight of six thousand pounds or less, RCW 46.16.079, 46.16.085, or 46.16.090.

(2) An agency imposing a tax under subsection (1) of this section may also impose a sales and use tax solely for the purpose of providing high capacity transportation service, in addition to the tax authorized by RCW 82.14.030, upon retail car rentals within the agency's jurisdiction that are taxable by the state under chapters 82.08 and 82.12 RCW. The rate of tax shall not exceed 2.172 percent. The rate of tax imposed under this subsection shall bear the same ratio to the 2.172 percent rate authorized that the rate imposed under subsection (1) of this section bears to the rate authorized under subsection (1) of this section. The base of the tax shall be the selling price in the case of a sales tax or the rental value of the vehicle used in the case of a use tax. The revenue collected under this subsection shall be used in the same manner as excise taxes under subsection (1) of this section.

(3) The total cumulative rate of tax that may be imposed under subsection (1) of this section shall not exceed the maximum rate authorized under that subsection.

(4) The special motor vehicle excise tax as provided in this section applies only when applying for or renewing a vehicle registration under chapter 46.16 RCW. This tax will be effective with the initial application and upon the registration renewal date as provided by the department of licensing. This tax is effective for counties under chapter 36.-- RCW (sections 101 through 109 of this act) only for registration renewals.

(5) Agencies imposing the special motor vehicle excise tax or initiating an exemption process shall enter into a contract with the department of licensing for collection of the tax. The contract must contain provisions that fully recover the costs to the department of licensing for collection and administration of the tax.

(6) Agencies imposing the special motor vehicle excise tax shall delay the effective date of the tax imposed by this section at least six months from the date of the final certification of the vote to allow the department of licensing time to implement the administration and collection of or exemption from the tax.

Sec. 205. RCW 81.104.170 and 1997 c 450 s 5 are each amended to read as follows:

HCT SALES TAX. (1) Cities that operate transit systems, county transportation authorities, metropolitan municipal corporations, public transportation benefit areas, ((~~and~~)) regional transit authorities, and counties, as part of a regional transportation investment plan, may submit an authorizing proposition to the voters and if approved by a majority of persons voting, fix and impose a sales and use tax in accordance with the terms of this chapter, solely for the purpose of providing high capacity transportation service, and for counties, as part of a regional transportation investment plan, solely for the purpose of providing high capacity transportation capital facilities or improvements.

(2) The tax authorized pursuant to 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 pursuant to chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event within the taxing district. The maximum rate of such tax shall be approved by the voters and shall not exceed 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 maximum rate of such tax that may be imposed shall not exceed nine‑tenths of one percent in any county that imposes a tax under RCW 82.14.340, or within a regional transit authority if any county within the authority imposes a tax under RCW 82.14.340. The total cumulative rate that may be imposed under this subsection (2) may not exceed the maximum rate authorized under this subsection. The exemptions in RCW 82.08.820 and 82.12.820 are for the state portion of the sales and use tax and do not extend to the tax authorized in this section.

NEW SECTION. Sec. 206. A new section is added to chapter 82.14 RCW to read as follows:

SALES AND USE TAX. (1) If a transportation revenue act becomes law in 2002, and if approved by the majority of the voters within its boundaries voting on the ballot proposition, a county, as part of a regional transportation investment plan, may impose a sales and use tax of up to 0.5 percent of the selling price or value of the article used in the case of a use tax.

(2) If a transportation revenue act becomes law in 2002, the tax authorized by this section is in addition to all other taxes imposed under this chapter and must 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 the boundaries of the county.

NEW SECTION. Sec. 207. A new section is added to chapter 43.135 RCW to read as follows:

PROJECT SALES AND USE TAX CREDIT SHIFT. Any transfer or credit from the general fund of sales and use tax paid on a transportation project being constructed by a county under a regional transportation investment plan shall not require a corresponding lowering of the state expenditure limit to reflect this shift for purposes of RCW 43.135.035(4).

Sec. 208. RCW 82.14.045 and 2001 c 89 s 3 are each amended to read as follows:

TRANSIT SALES TAX. (1) 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, and the legislative body of a county, where a public transportation system is operating, as part of a regional transportation investment plan for the purposes of implementing the plan and with the permission of each municipality operating a public transportation system within the county, 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, fix and impose a sales and use tax in accordance with the terms of this chapter: PROVIDED, That no such legislative body shall impose such a sales and use tax without submitting such an authorizing proposition to the voters and obtaining the approval of a majority of persons voting thereon: PROVIDED FURTHER, That where such a 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.

The tax authorized pursuant to 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 pursuant to 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 shall impose 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 levy and/or collect taxes pursuant to RCW 35.58.273, 35.95.040, and/or 82.14.045, 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 shall impose a sales and use tax pursuant to 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 levy or collect taxes pursuant to RCW 35.58.273, 35.95.040, or 82.14.045.

(c) In the event a public transportation benefit area shall impose a sales and use tax pursuant to 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 levy or collect taxes pursuant to RCW 35.58.273, 35.95.040, or 82.14.045.

(d) The total cumulative rate of tax that may be imposed under subsection (1) of this section shall not exceed the maximum rate authorized under that subsection.

(3) Any local sales and use tax revenue collected pursuant to this section by any city or by any county for transportation purposes pursuant to RCW 36.57.100 and 36.57.110 shall not be counted as locally generated tax revenues for the purposes of apportionment and distribution, in the manner prescribed by chapter 82.44 RCW, of the proceeds of the motor vehicle excise tax authorized pursuant to RCW 35.58.273, except that the local sales and use tax revenue collected under this section by a city with a population greater than sixty thousand that as of January 1, 1998, owns and operates a municipal public transportation system shall be counted as locally generated tax revenues for the purposes of apportionment and distribution, in the manner prescribed by chapter 82.44 RCW, of the proceeds of the motor vehicle excise tax authorized under RCW 35.58.273 as follows:

(a) For fiscal year 2000, revenues collected under this section shall be counted as locally generated tax revenues for up to 25 percent of the tax collected under RCW 35.58.273;

(b) For fiscal year 2001, revenues collected under this section shall be counted as locally generated tax revenues for up to 50 percent of the tax collected under RCW 35.58.273;

(c) For fiscal year 2002, revenues collected under this section shall be counted as locally generated tax revenues for up to 75 percent of the tax collected under RCW 35.58.273; and

(d) For fiscal year 2003 and thereafter, revenues collected under this section shall be counted as locally generated tax revenues for up to 100 percent of the tax collected under RCW 35.58.273.

Sec. 209. RCW 82.14.050 and 1999 c 165 s 14 are each amended to read as follows:

CONTRACTS FOR COLLECTION OF SALES AND USE TAX. The counties, cities, and transportation authorities under RCW 82.14.045 ((~~and~~)), public facilities districts under chapter 36.100 and 35.57 RCW, and counties, under a regional transportation investment plan shall contract, prior to the effective date of a resolution or ordinance imposing a sales and use tax, the administration and collection to the state department of revenue, which shall deduct a percentage amount, as provided by contract, not to exceed two percent of the taxes collected for administration and collection expenses incurred by the department. The remainder of any portion of any tax authorized by this chapter which is collected by the department of revenue shall be deposited by the state department of revenue in the local sales and use tax account hereby created in the state treasury. Moneys in the local sales and use tax account may be spent only for distribution to counties, cities, transportation authorities, and public facilities districts imposing a sales and use tax. All administrative provisions in chapters 82.03, 82.08, 82.12, and 82.32 RCW, as they now exist or may hereafter be amended, shall, insofar as they are applicable to state sales and use taxes, be applicable to taxes imposed pursuant to this chapter. Except as provided in RCW 43.08.190, all earnings of investments of balances in the local sales and use tax account shall be credited to the local sales and use tax account and distributed to the counties, cities, transportation authorities, and public facilities districts monthly.

NEW SECTION. Sec. 210. A new section is added to chapter 82.32 RCW to read as follows:

CREDIT ON SALES TAX ON PROJECTS. (1) The tax imposed and collected under chapters 82.08 and 82.12 RCW, less any credits allowed under chapter 82.14 RCW, on initial construction for a project to be constructed under chapter 36.-- RCW (sections 101 through 109 of this act), must be transferred to the project or identified as a credit on the project to defray costs or pay debt service on that project. In the case of a toll project, this transfer or credit must be used to lower the overall cost of the project and thereby the amount or term of the tolls.

(2) This transaction is exempt from the requirements in RCW 43.135.035(4).

(3) Government entities constructing projects under chapter 36.-- RCW (sections 101 through 109 of this act) shall report to the department the amount of state sales or use tax covered under this section.

NEW SECTION. Sec. 211. A new section is added to chapter 82.80 RCW to read as follows:

LOCAL OPTION VEHICLE LICENSE FEE. (1) If a transportation revenue act becomes law in 2002, and upon approval of a majority of the voters within its boundaries voting on the ballot proposition, a county, as part of a regional transportation investment plan, may set and impose an annual local option vehicle license fee of a uniform amount of up to one hundred dollars per motor vehicle registered within the boundaries of the region on every motor vehicle that is subject to license fees under RCW 46.16.0621 and for each vehicle that is subject to RCW 46.16.070 with a declared gross weight of twelve thousand pounds or less and that is determined by the department of licensing to be registered within the boundaries of the county. Vehicles registered under chapter 46.87 RCW and the international registration plan are exempt from the annual local option vehicle license fee set forth in this section. The county may also exempt certain classes of vehicles from the fee under this section. The department of licensing shall administer and collect this fee on behalf of counties and remit this fee to the county to implement the regional transportation investment plan.

(2) If a transportation revenue act becomes law in 2002, the local option vehicle license fee applies only when renewing a vehicle registration. This fee is effective upon the registration renewal date as provided by the department of licensing.

(3) If a transportation revenue act becomes law in 2002, a county imposing the local option vehicle license fee or initiating an exemption process shall enter into a contract with the department of licensing. The contract must contain provisions that fully recover the costs to the department of licensing for collection and administration of the fee.

(4) If a transportation revenue act becomes law in 2002, a county imposing the local option fee shall delay the effective date of the local option vehicle license fee imposed by this section at least six months from the date of the final certification of the approval election to allow the department of licensing to implement the administration and collection of or exemption from the fee.

NEW SECTION. Sec. 212. A new section is added to chapter 47.56 RCW to read as follows:

AUTHORIZATION FOR COUNTY TO IMPOSE TOLLS. Upon approval of a majority of the voters within its boundaries voting on the ballot proposition, and only for the purposes authorized in section 104(1)(i) of this act, a county may impose vehicle tolls on state routes where improvements financed in whole or in part by a county under a regional transportation investment plan reconstruct or add additional lanes to a highway of statewide significance. The department shall administer the collection of vehicle tolls on designated facilities unless otherwise specified in law, and the state transportation commission, or its successor, shall be the tolling authority.

Sec. 213. RCW 81.100.030 and 1991 c 363 s 153 are each amended to read as follows:

HIGH-OCCUPANCY VEHICLE EMPLOYER TAX. (1) A county with a population of one million or more, or a county with a population of from two hundred ten thousand to less than one million that is adjoining a county with a population of one million or more, and having within its boundaries existing or planned high-occupancy vehicle lanes on the state highway system, or those same counties, as part of a regional transportation investment plan, may, with voter approval impose an excise tax of up to two dollars per employee per month on all employers or any class or classes of employers, public and private, including the state located in the agency's jurisdiction, measured by the number of full-time equivalent employees. In no event may the total taxes imposed under this section exceed two dollars per employee per month for any single employer. The county imposing the tax authorized in this section may provide for exemptions from the tax to such educational, cultural, health, charitable, or religious organizations as it deems appropriate.

Counties may contract with the state department of revenue or other appropriate entities for administration and collection of the tax. Such contract shall provide for deduction of an amount for administration and collection expenses.

(2) The tax shall not apply to employment of a person when the employer has paid for at least half of the cost of a transit pass issued by a transit agency for that employee, valid for the period for which the tax would otherwise be owed.

(3) A county shall adopt rules which exempt from all or a portion of the tax any employer that has entered into an agreement with the county that is designed to reduce the proportion of employees who drive in single-occupant vehicles during peak commuting periods in proportion to the degree that the agreement is designed to meet the goals for the employer's location adopted under RCW 81.100.040.

The agreement shall include a list of specific actions that the employer will undertake to be entitled to the exemption. Employers having an exemption from all or part of the tax through this subsection shall annually certify to the county that the employer is fulfilling the terms of the agreement. The exemption continues as long as the employer is in compliance with the agreement.

If the tax authorized in RCW 81.100.060 is also imposed ((~~by the county~~)), the total proceeds from both tax sources each year shall not exceed the maximum amount which could be collected under RCW 81.100.060.

Sec. 214. RCW 81.100.060 and 1998 c 321 s 34 are each amended to read as follows:

HIGH-OCCUPANCY VEHICLE MOTOR VEHICLE EXCISE TAX. (1) A county with a population of one million or more and a county with a population of from two hundred ten thousand to less than one million that is adjoining a county with a population of one million or more, having within their boundaries existing or planned high‑occupancy vehicle lanes on the state highway system, and those same counties, as part of a regional transportation investment plan, may, with voter approval, impose a local surcharge of not more than ((~~13.64 percent on the state motor vehicle excise tax paid under RCW 82.44.020(1)~~)) three-tenths of one percent of the value on vehicles registered to a person residing within the county and not more than 13.64 percent on the state sales and use taxes paid under the rate in RCW 82.08.020(2) on retail car rentals within the county. No surcharge may be imposed on vehicles licensed under RCW 46.16.070 except vehicles with an unladen weight of six thousand pounds or less, RCW 46.16.079, 46.16.085, or 46.16.090.

((Counties imposing a tax under this section shall contract, before the effective date of the resolution or ordinance imposing a surcharge, administration and collection to the state department of licensing, and department of revenue, as appropriate, which shall deduct an amount, as provided by contract, for administration and collection expenses incurred by the department.)) (2) All administrative provisions in chapters 82.03, 82.32, and 82.44 RCW shall, insofar as they are applicable to ((~~state~~)) motor vehicle excise taxes, be applicable to surcharges imposed under this section. All administrative provisions in chapters 82.03, 82.08, 82.12, and 82.32 RCW shall, insofar as they are applicable to state sales and use taxes, be applicable to surcharges imposed under this section.

(3) The local surcharge applies only when initially applying for or renewing a vehicle registration. This surcharge will be effective with the initial application and upon the registration renewal date as provided by the department of licensing. This surcharge is effective for counties under chapter 36.-- RCW (sections 101 through 109 of this act) only for registration renewals.

(4) A county imposing the local surcharge or initiating an exemption process shall enter into a contract with the department of licensing for collection of the tax. The contract must contain provisions that fully recover the costs to the department of licensing for collection and administration of the surcharge.

(5) A county imposing the surcharge shall delay the effective date of the surcharge imposed by this section at least six months from the date of the final certification of the referendum to allow the department of licensing time to implement the administration and collection of or exemption from the surcharge.

(6) If the tax authorized in RCW 81.100.030 is also imposed ((~~by the county~~)), the total proceeds from tax sources imposed under this section and RCW 81.100.030 each year shall not exceed the maximum amount ((~~which~~)) that could be collected under this section.

Sec. 215. RCW 82.80.010 and 1998 c 176 s 86 are each amended to read as follows:

LOCAL OPTION FUEL TAX. (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 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 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 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 the first day of January, April, July, or October.

(((2) Every person subject to the tax shall pay, in addition to any other taxes provided by law, an additional excise tax to the director of licensing at the rate levied by a county exercising its authority under this section.))

(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) The incidence of the tax occurs upon the first distribution of the fuel within the exterior 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, as they now exist or may hereafter be amended, insofar as they are applicable, also 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 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 two 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) A county imposing the tax authorized under this section shall provide funds to distributors to offset their local fuel tax administration costs. The county shall dedicate a percentage amount of the tax collected under this section for that purpose. The percentage amount must be equal to the amount provided for the administrative expenses of the department of revenue under subsection (6) of this section.

(8) The state treasurer shall distribute monthly to the levying county and cities contained therein the proceeds of the additional excise taxes collected under this section, or to the county levying the tax as part of a regional transportation investment plan, after the deductions for payments and expenditures as provided in RCW 46.68.090(1) ((~~and (2)~~)) and under the conditions and limitations provided in RCW 82.80.080.

((~~(4)~~)) (9) The proceeds of the additional excise taxes levied under this section shall be used strictly for transportation purposes in accordance with RCW 82.80.070. The proceeds of the additional taxes levied by a county, as a part of a regional transportation investment plan, must be used as provided in chapter 36.-- RCW (sections 101 through 109 of this act).

(((5) The department of licensing shall administer and collect the county fuel taxes. The department shall deduct a percentage amount, as provided by contract, for administrative, collection, refund, and audit expenses incurred. The remaining proceeds shall be remitted to the custody of the state treasurer for monthly distribution under RCW 82.80.080.))

(10) A county levying the tax under this section to implement a regional transportation investment plan may not levy the county local option fuel tax under this section.

Sec. 216. RCW 82.80.020 and 2001 c 64 s 15 are each amended to read as follows:

VEHICLE LICENSE FEE‑-EXEMPTIONS‑-LIMITATIONS. (1) The legislative authority of a county, or subject to subsection (7) of this section, a qualifying city or town located in a county that has not imposed a fifteen-dollar fee under this section, may fix and impose an additional fee, not to exceed fifteen dollars per vehicle, for each vehicle that is subject to license fees under RCW 46.16.0621 and for each vehicle that is subject to RCW 46.16.070 with an unladen weight of six thousand pounds or less, and that is determined by the department of licensing to be registered within the boundaries of the county.

(2) The department of licensing shall administer and collect the fee. The department shall deduct a percentage amount, as provided by contract, not to exceed two percent of the taxes collected, for administration and collection expenses incurred by it. The remaining proceeds shall be remitted to the custody of the state treasurer for monthly distribution under RCW 82.80.080.

(3) The proceeds of this fee shall be used strictly for transportation purposes in accordance with RCW 82.80.070.

(4) A county or qualifying city or town imposing this fee or initiating an exemption process shall delay the effective date at least six months from the date the ordinance is enacted to allow the department of licensing to implement administration and collection of or exemption from the fee.

(5) The legislative authority of a county or qualifying city or town may develop and initiate an exemption process of the fifteen dollar fee for the registered owners of vehicles residing within the boundaries of the county or qualifying city or town: (a) Who are sixty-one years old or older at the time payment of the fee is due and whose household income for the previous calendar year is less than an amount prescribed by the county or qualifying city or town legislative authority; or (b) who have a physical disability.

(6) The legislative authority of a county or qualifying city or town shall develop and initiate an exemption process of the fifteen-dollar fee for vehicles registered within the boundaries of the county that are licensed under RCW 46.16.374.

(7) For purposes of this section, a "qualifying city or town" means a city or town ((~~residing within a county having a population of greater than seventy-five thousand in which is located all or part of a national monument~~)) whose legislative authority has imposed by ordinance a vehicle license fee. A qualifying city or town may impose the fee authorized in subsection (1) of this section subject to the following conditions and limitations:

(a) The city or town may impose the fee only if authorized to do so by a majority of voters voting at a general or special election on a proposition for that purpose. At a minimum, the ballot measure shall contain: (i) A description of the transportation project proposed for funding, properly identified by mileposts or other designations that specify the project parameters; (ii) the proposed number of months or years necessary to fund the city or town's share of the project cost; and (iii) the amount of fee to be imposed for the project.

(b) The city or town may not impose a fee that, if combined with the county fee, exceeds fifteen dollars. If a county imposes or increases a fee under this section that, if combined with the fee imposed by a city or town, exceeds fifteen dollars, the city or town fee shall be reduced or eliminated as needed so that in no city or town does the combined fee exceed fifteen dollars. All revenues from county-imposed fees shall be distributed as called for in RCW 82.80.080.

(c) Any fee imposed by a city or town under this section shall expire at the end of the term of months or years provided in the ballot measure, or when the city or town's bonded indebtedness on the project is retired, whichever is sooner.

(d) A county may impose the fee in all areas of the county other than within the incorporated boundary of a city or town that has already imposed the fee.

(8) The fee imposed under subsection (7) of this section shall apply only to renewals and shall not apply to ownership transfer transactions.

Sec. 217. RCW 82.80.030 and 1990 c 42 s 208 are each amended to read as follows:

PARKING TAX. (1) Subject to the conditions of this section, the legislative authority of a county or city may fix and impose a parking tax on all persons engaged in a commercial parking business within its respective jurisdiction. ((~~The jurisdiction of a county, for purposes of this section, includes only the unincorporated area of the county~~)) If a county is imposing the tax to implement a regional transportation investment plan under chapter 36.-- RCW (sections 101 through 109 of this act) the county may impose the tax throughout its jurisdiction excluding cities that have levied a tax under this section before the effective date of the county levy. Otherwise, the county may impose the tax only in the unincorporated area of the county. The jurisdiction of a city includes only the area within its ((~~incorporated~~)) boundaries.

(2) In lieu of the tax in subsection (1) of this section, a city or a county ((~~in its unincorporated area~~)) within the jurisdiction authorized under subsection (1) of this section, may fix and impose a tax for the act or privilege of parking a motor vehicle in a facility operated by a commercial parking business.

The city or county may provide that:

(a) The tax is paid by the operator or owner of the motor vehicle;

(b) The tax applies to all parking for which a fee is paid, whether paid or leased, including parking supplied with a lease of nonresidential space;

(d) The tax is a fee per vehicle or is measured by the parking charge;

(e) The tax rate varies with zoning or location of the facility, the duration of the parking, the time of entry or exit, the type or use of the vehicle, or other reasonable factors; and

(f) Tax exempt carpools, vehicles with handicapped decals, or government vehicles are exempt from the tax.

(3) "Commercial parking business" as used in this section, means the ownership, lease, operation, or management of a commercial parking lot in which fees are charged. "Commercial parking lot" means a covered or uncovered area with stalls for the purpose of parking motor vehicles.

(4) The rate of the tax under subsection (1) of this section may be based either upon gross proceeds or the number of vehicle stalls available for commercial parking use. The rates charged must be uniform for the same class or type of commercial parking business.

(5) The county or city levying the tax provided for in subsection (1) or (2) of this section may provide for its payment on a monthly, quarterly, or annual basis. Each local government may develop by ordinance or resolution rules for administering the tax, including provisions for reporting by commercial parking businesses, collection, and enforcement.

(6) The proceeds of the commercial parking tax fixed and imposed by a city or county, not part of a regional transportation investment plan, under subsection (1) or (2) of this section shall be used strictly for transportation purposes in accordance with RCW 82.80.070. The proceeds of the parking tax imposed by a county, as part of a regional transportation investment plan, shall be used as provided in chapter 36.-- RCW (sections 101 through 109 of this act).

Sec. 218. RCW 82.80.070 and 1991 c 141 s 4 are each amended to read as follows:

REQUIRES THAT LOCAL OPTION TAXES IMPOSED BY DISTRICT BE USED FOR DISTRICT PROJECTS. (1) The proceeds collected pursuant to the exercise of the local option authority of RCW 82.80.010, 82.80.020, 82.80.030, and 82.80.050 and sections 206, 211, and 212 of this act, (hereafter called "local option transportation revenues") shall be used for transportation purposes only, including but not limited to the following: The operation and preservation of roads, streets, and other transportation improvements; new construction, reconstruction, and expansion of city streets, county roads, and state highways and other transportation improvements; development and implementation of public transportation and high-capacity transit improvements and programs; and planning, design, and acquisition of right of way and sites for such transportation purposes. The proceeds collected from excise taxes on the sale, distribution, or use of motor vehicle fuel and special fuel under RCW 82.80.010 shall be used exclusively for "highway purposes" as that term is construed in Article II, section 40 of the state Constitution.

(2) The local option transportation revenues shall be expended for transportation uses consistent with the adopted transportation and land use plans of the jurisdiction expending the funds and consistent with any applicable and adopted regional transportation plan for metropolitan planning areas.

(3) Each local government with a population greater than eight thousand that levies or expends local option transportation funds, is also required to develop and adopt a specific transportation program that contains the following elements:

(a) The program shall identify the geographic boundaries of the entire area or areas within which local option transportation revenues will be levied and expended.

(b) The program shall be based on an adopted transportation plan for the geographic areas covered and shall identify the proposed operation and construction of transportation improvements and services in the designated plan area intended to be funded in whole or in part by local option transportation revenues and shall identify the annual costs applicable to the program.

(c) The program shall indicate how the local transportation plan is coordinated with applicable transportation plans for the region and for adjacent jurisdictions.

(d) The program shall include at least a six-year funding plan, updated annually, identifying the specific public and private sources and amounts of revenue necessary to fund the program. The program shall include a proposed schedule for construction of projects and expenditure of revenues. The funding plan shall consider the additional local tax revenue estimated to be generated by new development within the plan area if all or a portion of the additional revenue is proposed to be earmarked as future appropriations for transportation improvements in the program.

(4) Local governments with a population greater than eight thousand exercising the authority for local option transportation funds shall periodically review and update their transportation program to ensure that it is consistent with applicable local and regional transportation and land use plans and within the means of estimated public and private revenue available.

(5) In the case of expenditure for new or expanded transportation facilities, improvements, and services, priorities in the use of local option transportation revenues shall be identified in the transportation program and expenditures shall be made based upon the following criteria, which are stated in descending order of weight to be attributed:

(a) First, the project serves a multijurisdictional function;

(b) Second, it is necessitated by existing or reasonably foreseeable congestion;

(d) Fourth, it is partially funded by other government funds, such as from the state transportation improvement board, or by private sector contributions, such as those from the local transportation act, chapter 39.92 RCW; and

(e) Fifth, it meets such other criteria as the local government determines is appropriate.

(6) It is the intent of the legislature that as a condition of levying, receiving, and expending local option transportation revenues, no local government agency use the revenues to replace, divert, or loan any revenues currently being used for transportation purposes to nontransportation purposes. The association of Washington cities and the Washington state association of counties, in consultation with the legislative transportation committee, shall study the issue of nondiversion and make recommendations to the legislative transportation committee for language implementing the intent of this section by December 1, 1990.

(7) Local governments are encouraged to enter into interlocal agreements to jointly develop and adopt with other local governments the transportation programs required by this section for the purpose of accomplishing regional transportation planning and development.

(8) Local governments may use all or a part of the local option transportation revenues for the amortization of local government general obligation and revenue bonds issued for transportation purposes consistent with the requirements of this section.

(9) Proceeds collected under the exercise of local option authority under this chapter by a county, as part of a regional transportation investment plan, must be used in accordance with chapter 36.-- RCW (sections 101 through 109 of this act).

Sec. 219. RCW 82.80.080 and 1998 c 281 s 2 are each amended to read as follows:

LOCAL OPTION TAX REVENUE DISTRIBUTION. (1) The state treasurer shall distribute revenues, less authorized deductions, generated by the local option taxes authorized in RCW 82.80.010 and 82.80.020, levied by counties to the levying counties, and cities contained in those counties, based on the relative per capita population. County population for purposes of this section is equal to one and one-half of the unincorporated population of the county. In calculating the distributions, the state treasurer shall use the population estimates prepared by the state office of financial management and shall further calculate the distribution based on information supplied by the departments of licensing and revenue, as appropriate.

(2) The state treasurer shall distribute revenues, less authorized deductions, generated by the local option taxes authorized in RCW 82.80.010 and 82.80.020 levied by qualifying cities and towns to the levying cities and towns.

(3) The state treasurer shall distribute revenues to a county, as part of a regional transportation investment plan, less authorized deductions, generated by the local option taxes under RCW 82.80.010 or fees under section 211 of this act.

Sec. 220. RCW 47.56.030 and 2001 c 59 s 1 are each amended to read as follows:

EXCEPTION FOR COUNTY TOLL FACILITIES. (1) Except as provided in RCW 47.56.075, the department of transportation shall have full charge of the construction of all toll bridges and other toll facilities including the Washington state ferries, and the operation and maintenance thereof. The transportation commission shall determine and establish the tolls and charges thereon, and shall perform all duties and exercise all powers relating to the financing, refinancing, and fiscal management of all toll bridges and other toll facilities including the Washington state ferries, and bonded indebtedness in the manner provided by law. The department shall have full charge of design of all toll facilities. Except as provided in this section, the department shall proceed with the construction of such toll bridges and other facilities and the approaches thereto by contract in the manner of state highway construction immediately upon there being made available funds for such work and shall prosecute such work to completion as rapidly as practicable. The department is authorized to negotiate contracts for any amount without bid under (a) and (b) of this subsection:

(a) Emergency contracts, in order to make repairs to ferries or ferry terminal facilities or removal of such facilities whenever continued use of ferries or ferry terminal facilities constitutes a real or immediate danger to the traveling public or precludes prudent use of such ferries or facilities; and

(b) Single source contracts for vessel dry dockings, when there is clearly and legitimately only one available bidder to conduct dry dock-related work for a specific class or classes of vessels. The contracts may be entered into for a single vessel dry docking or for multiple vessel dry dockings for a period not to exceed two years.

(2) The department shall proceed with the procurement of materials, supplies, services, and equipment needed for the support, maintenance, and use of a ferry, ferry terminal, or other facility operated by Washington state ferries, in accordance with chapter 43.19 RCW except as follows:

(a) Except as provided in (d) of this subsection, when the secretary of the department of transportation determines in writing that the use of invitation for bid is either not practicable or not advantageous to the state and it may be necessary to make competitive evaluations, including technical or performance evaluations among acceptable proposals to complete the contract award, a contract may be entered into by use of a competitive sealed proposals method, and a formal request for proposals solicitation. Such formal request for proposals solicitation shall include a functional description of the needs and requirements of the state and the significant factors.

(b) When purchases are made through a formal request for proposals solicitation the contract shall be awarded to the responsible proposer whose competitive sealed proposal is determined in writing to be the most advantageous to the state taking into consideration price and other evaluation factors set forth in the request for proposals. No significant factors may be used in evaluating a proposal that are not specified in the request for proposals. Factors that may be considered in evaluating proposals include but are not limited to: Price; maintainability; reliability; commonality; performance levels; life cycle cost if applicable under this section; cost of transportation or delivery; delivery schedule offered; installation cost; cost of spare parts; availability of parts and service offered; and the following:

(i) The ability, capacity, and skill of the proposer to perform the contract or provide the service required;

(ii) The character, integrity, reputation, judgment, experience, and efficiency of the proposer;

(iii) Whether the proposer can perform the contract within the time specified;

(iv) The quality of performance of previous contracts or services;

(v) The previous and existing compliance by the proposer with laws relating to the contract or services;

(vi) Objective, measurable criteria defined in the request for proposal. These criteria may include but are not limited to items such as discounts, delivery costs, maintenance services costs, installation costs, and transportation costs; and

(vii) Such other information as may be secured having a bearing on the decision to award the contract.

(c) When purchases are made through a request for proposal process, proposals received shall be evaluated based on the evaluation factors set forth in the request for proposal. When issuing a request for proposal for the procurement of propulsion equipment or systems that include an engine, the request for proposal must specify the use of a life cycle cost analysis that includes an evaluation of fuel efficiency. When a life cycle cost analysis is used, the life cycle cost of a proposal shall be given at least the same relative importance as the initial price element specified in the request of proposal documents. The department may reject any and all proposals received. If the proposals are not rejected, the award shall be made to the proposer whose proposal is most advantageous to the department, considering price and the other evaluation factors set forth in the request for proposal.

(d) If the department is procuring large equipment or systems (e.g., electrical, propulsion) needed for the support, maintenance, and use of a ferry operated by Washington state ferries, the department shall proceed with a formal request for proposal solicitation under this subsection (2) without a determination of necessity by the secretary.

NEW SECTION. Sec. 221. DESIGNATION OF STATE ROUTE NUMBER 509. The legislature designates that portion of state route number 509 that runs or will run from state route number 518 in the north to the intersection with interstate 5 in the south as a state highway of statewide significance.

Sec. 222. RCW 47.56.075 and 1984 c 7 s 252 are each amended to read as follows:

COUNTY DESIGNATION OF TOLL FACILITY. (1) The department shall approve for construction only such toll roads as the legislature specifically authorizes or such toll facilities as are specifically sponsored by a city, town, or county.

(2) A county may designate a state highway within its boundaries as a toll bridge or a toll road subject to section 212 of this act. In that event, the county shall enter into an interlocal agreement with the state providing for the state to administer the toll facility under this chapter, including the issuance, sale, and redemption of bonds under this chapter.

III. CITY TRANSPORTATION AUTHORITIES

NEW SECTION. Sec. 301. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

(1) "Authority" means a city transportation authority created under this chapter.

(2) "Authority area" means the territory within a city or cities, and contiguous unincorporated territory, or such portions thereof, as designated in the ordinance creating the authority.

(3) "Bonds" means bonds, notes, or other evidences of indebtedness.

(4) "Public transportation function" means the transportation of passengers and their incidental baggage, as authorized in this chapter, together with the necessary passenger stations, terminals, parking facilities, related facilities or other properties, and facilities necessary and appropriate for passenger and vehicular access to and from people-moving systems.

NEW SECTION. Sec. 302. (1) Every city with a population greater than three hundred thousand may create a city transportation authority to perform a public transportation function. The authority must embrace all the territory in the authority area. A city transportation authority will be a municipal corporation, an independent taxing "authority" within the meaning of Article VII, section 1 of the state Constitution, and a "taxing district" within the meaning of Article VII, section 2 of the state Constitution.

(2) Any city transportation authority established under this chapter must be approved by a majority vote of the electors residing within the proposed authority area voting at a regular or special election. Additional territory may be added to an authority area with the approval of the legislative authority of each city, or county in the case of an unincorporated area, within which the territory exists, and with the approval of the electors within the area proposed to be added to the authority area.

NEW SECTION. Sec. 303. (1) A city that undertakes to create an authority shall propose the authority by ordinance of the city legislative body. The ordinance must:

(a) Propose the authority area and the size and method of selection of the governing body of the authority, which governing body may be appointed or elected, provided that officers or employees of any single city may not compose a majority of the members of the authority's governing body;

(b) Propose whether all or a specified portion of the public transportation function will be exercised by the authority;

(d) Provide for an interim governing body of the authority that shall govern the authority upon voter approval of formation of the authority, until a permanent governing body is selected, but in no event longer than fourteen months.

(2) An authority may also be proposed to be created by a petition setting forth the matters described in subsection (1) of this section, and signed by one percent of the qualified electors of the proposed authority area.

(3) If an authority is proposed to be created with an authority area that includes more than one city, or the unincorporated area of a county, an ordinance must be passed by the legislative authority of all cities and counties within the proposed authority area, or in the alternative, a petition must be signed by one percent of the qualified electors of the proposed authority area within each city or unincorporated area of a county.

(4) Upon approval of its formation by the qualified electors, the governing body of an authority, or interim governing body, as applicable, shall adopt bylaws determining, among other things, the authority's officers and the method of their selection, and other matters the governing body deems appropriate.

NEW SECTION. Sec. 304. Every authority has the following powers:

(1) To acquire by purchase, condemnation, gift, or grant and to lease, construct, add to, improve, replace, repair, maintain, operate, and regulate the use of certain public transportation facilities, including monorails, trams, and trolleys, and including passenger terminal and parking facilities and properties, and other facilities and properties as may be necessary for passenger and vehicular access to and from public transportation facilities, together with all lands, rights of way, and property within or outside the authority area, and together with equipment and accessories necessary or appropriate for these facilities;

(2) To fix rates, tolls, fares, and charges for the use of facilities and to establish various routes and classes of service. Rates, tolls, fares, or charges may be adjusted or eliminated for any distinguishable class of users including, but not limited to, senior citizens, handicapped persons, and students;

(3) To contract with the United States or any of its agencies, any state or any of its agencies, any metropolitan municipal corporation, any other county, city, other political subdivision or governmental instrumentality, or governmental agency, or any private person, firm, or corporation for the purpose of receiving gifts or grants or securing loans or advances for preliminary planning and feasibility studies, or for the design, construction, operation, or maintenance of public transportation facilities, as long as contracts for the construction of facilities with an estimated cost greater than two hundred thousand dollars are awarded after a competitive bid process consistent with chapter 39.04 RCW or are awarded consistent with an alternative public works contracting procedure consistent with chapter 39.10 RCW. Contracts for construction with an estimated cost of two hundred thousand dollars or less may be awarded under RCW 39.04.155;

(4) To contract with the United States or any of its agencies, any state or any of its agencies, any metropolitan municipal corporation, any other county, city, other political subdivision or governmental instrumentality, any governmental agency, or any private person, firm, or corporation for the use by either contracting party of all or any part of the facilities, structures, lands, interests in lands, air rights over lands, and rights of way of all kinds which are owned, leased, or held by the other party and for the purpose of planning, designing, constructing, operating any public transportation facility, or performing any service related to transportation which the authority is authorized to operate or perform, on terms as may be agreed upon by the contracting parties;

(5) To acquire any existing public transportation facility by conveyance, sale, or lease. In any acquisition from a county, city, or other political subdivision of the state, the authority shall receive credit from the county or city or other political subdivision for any federal assistance and state matching assistance used by the county or city or other political subdivision in acquiring any portion of the public transportation facility. Upon acquisition, the authority shall assume and observe all existing labor contracts relating to the public transportation facility and, to the extent necessary for operation of the public transportation facility, all of the employees of the public transportation facility whose duties are necessary to efficiently operate the public transportation facility shall be appointed to comparable positions to those which they held at the time of the transfer, and no employee or retired or pensioned employee of the public transportation facility shall be placed in any worse position with respect to pension seniority, wages, sick leave, vacation, or other benefits than he or she enjoyed as an employee of the public transportation facility prior to the acquisition. Furthermore, the authority shall engage in collective bargaining with the duly appointed representatives of any employee labor organization having existing contracts with the acquired facility and may enter into labor contracts with the employee labor organization;

(6) To contract for, participate in, and support research, demonstration, testing, and development of public transportation facilities, equipment, and use incentives, and have all powers necessary to comply with any criteria, standards, and regulations that may be adopted under state and federal law, and to take all actions necessary to meet the requirements of those laws. The authority has, in addition to these powers, the authority to prepare, adopt, and carry out a comprehensive transit plan and to make other plans and studies and to perform programs as the authority deems necessary to implement and comply with those laws;

(7) To establish local improvement districts within the authority area to finance public transportation facilities, to levy special assessments on property specially benefited by those facilities, and to issue local improvement bonds to be repaid by the collection of local improvement assessments. The method of establishment, levying, collection, enforcement, and all other matters relating to the local improvement districts, assessments, collection, and bonds must be as provided in the statutes governing local improvement districts of cities and towns. The duties devolving upon the city treasurer in those statutes are imposed on the treasurer of the authority;

(8) To exercise all other powers necessary and appropriate to carry out its responsibilities, including without limitation the power to own, construct, purchase, lease, add to, and maintain any real and personal property or property rights necessary for the conduct of the affairs of the authority, to enter into contracts, and to employ the persons as the authority deems appropriate. An authority may also sell, lease, convey, or otherwise dispose of any authority real or personal property no longer necessary for the conduct of the affairs of the authority.

NEW SECTION. Sec. 305. Each authority shall establish the funds and accounts it deems necessary and appropriate. The authority may designate a treasurer or may contract with any city with territory within the authority area for treasury and other financial functions. The city will be reimbursed for the expenses of treasury services. However, no city whose treasurer serves as treasurer of an authority is liable for the obligations of the authority.

NEW SECTION. Sec. 306. The authority shall adopt a public transportation plan for public transportation facilities to be provided by the authority. The plan, and any amendments, must be approved by the legislative authority of each city and county, in the case of unincorporated territory, comprising more than ten percent of the qualified electors in the authority area. Before adoption of the plan, the authority shall provide a minimum of sixty days during which sufficient public hearings must be held to provide interested persons an opportunity to participate in development of the plan.

NEW SECTION. Sec. 307. Every authority has the power to:

(1) Levy excess levies upon the property included within the authority area, in the manner prescribed by Article VII, section 2 of the state Constitution and by RCW 84.52.052 for operating funds, capital outlay funds, and cumulative reserve funds;

(2) Issue general obligation bonds, not to exceed an amount, together with any outstanding nonvoter-approved general obligation indebtedness equal to one and one-half percent of the value of the taxable property within the authority area, as the term "value of the taxable property" is defined in RCW 39.36.015. An authority may additionally issue general obligation bonds, together with outstanding voter‑approved and nonvoter-approved general obligation indebtedness, equal to two and one-half percent of the value of the taxable property within the authority area, as the term "value of the taxable property" is defined in RCW 39.36.015, when the bonds are approved by three-fifths of the qualified electors of the authority at a general or special election called for that purpose and may provide for the retirement thereof by levies in excess of dollar rate limitations in accordance with the provisions of RCW 84.52.056. These elections must be held as provided in RCW 39.36.050;

(3) Issue revenue bonds payable from any revenues other than taxes levied by the authority, and to pledge those revenues for the repayment of the bonds. Proceeds of revenue bonds may be expended for the costs of public transportation facilities, for financing costs, and for capitalized interest during construction plus six months thereafter. The bonds and warrants must be issued and sold in accordance with chapter 39.46 RCW.

Unless authorized by the legislative authority of a city or county or by the legislature, bonds issued by an authority are not obligations of any city, county, or the state of Washington or any political subdivision thereof other than the authority, and the bonds must state that fact.

NEW SECTION. Sec. 308. (1) Every authority has the power to levy and collect a special excise tax not exceeding two and one-half percent on the value of every motor vehicle owned by a resident of the authority area for the privilege of using a motor vehicle. Before use of any excise tax money collected under this section for acquisition of right of way or construction of a public transportation facility on a separate right of way, the authority shall adopt rules affording the public an opportunity for corridor public hearings and design public hearings, which must provide in detail the procedures necessary for public participation in the following instances: (a) Before adoption of location and design plans having a substantial social, economic, or environmental effect upon the locality upon which they are to be constructed; or (b) on the public transportation facilities operating on a separate right of way whenever a substantial change is proposed relating to location or design in the adopted plan. In adopting rules the authority shall adhere to the provisions of the Administrative Procedure Act.

(2) A "corridor public hearing" is a public hearing that: (a) Is held before the authority is committed to a specific route proposal for the public transportation facility, and before a route location is established; (b) is held to afford an opportunity for participation by those interested in the determination of the need for, and the location of, the public transportation facility; and (c) provides a public forum that affords a full opportunity for presenting views on the public transportation facility route location, and the social, economic, and environmental effects on that location and alternate locations. However, the hearing is not necessary before adoption of a transportation plan as provided in section 306 of this act or a vote of the qualified electors under subsection (5) of this section.

(3) A "design public hearing" is a public hearing that: (a) Is held after the location is established but before the design is adopted; (b) is held to afford an opportunity for participation by those interested in the determination of major design features of the public transportation facility; and (c) provides a public forum to afford a full opportunity for presenting views on the public transportation system design, and the social, economic, and environmental effects of that design and alternate designs.

(4) An authority imposing a tax under subsection (1) of this section may also impose a sales and use tax, in addition to any tax authorized by RCW 82.14.030, upon retail car rentals within the city that are taxable by the state under chapters 82.08 and 82.12 RCW. The rate of tax may not exceed 1.944 percent of the base of the tax. The base of the tax is the selling price in the case of a sales tax or the rental value of the vehicle used in the case of a use tax. The tax imposed under this section must be deducted from the amount of any tax otherwise due under RCW 82.08.020(2). The revenue collected under this subsection must be distributed in the same manner as sales and use taxes under chapter 82.14 RCW.

(5) Before an authority may impose any of the taxes authorized under this section, the authorization for imposition of the taxes must be approved by the qualified electors of the authority area.

NEW SECTION. Sec. 309. (1) Every authority may fix and impose a fee, not to exceed one hundred dollars per vehicle, for each vehicle that is subject to license tab fees under RCW 46.16.0621 and for each vehicle that is subject to RCW 46.16.070 with an unladen weight of six thousand pounds or less, and that is determined by the department of licensing to be registered within the boundaries of the authority area. The department of licensing shall provide an exemption from the fee for any vehicle the owner of which demonstrates is not operated within the authority area.

(2) The department of licensing shall administer and collect the fee. The department shall deduct a percentage amount, as provided by contract, not to exceed two percent of the taxes collected, for administration and collection expenses incurred by it. The remaining proceeds must be remitted to the custody of the state treasurer for monthly distribution to the authority.

(3) The authority imposing this fee shall delay the effective date at least six months from the date the fee is approved by the qualified voters of the authority area to allow the department of licensing to implement administration and collection of the fee.

(4) Before an authority may impose any of the fees authorized under this section, the authorization for imposition of the fees must be approved by a majority of the qualified electors of the authority area voting.

NEW SECTION. Sec. 310. (1) Every authority may impose annual regular property tax levies in an amount equal to one dollar and fifty cents or less per thousand dollars of assessed value of property in the authority area when specifically authorized to do so by a majority of the voters voting on a proposition submitted at a special election or at the regular election of the authority. A proposition authorizing the tax levies may not be submitted by an authority more than twice in any twelve-month period. Ballot propositions must conform with RCW 29.30.111. The number of years during which the regular levy will be imposed may be limited as specified in the ballot proposition or may be unlimited in duration. If an authority is levying property taxes that in combination with property taxes levied by other taxing districts subject to the one percent limitation provided for in Article VII, section 2 of the state Constitution result in taxes in excess of the limitation provided for in RCW 84.52.043, the authority's property tax levy must be reduced or eliminated consistent with RCW 84.52.010.

(2) The limitation in RCW 84.55.010 does not apply to the first levy imposed under this section after the approval of the levies by the voters under subsection (1) of this section.

NEW SECTION. Sec. 311. All taxes and fees levied and collected by an authority must be levied and used solely for the purpose of paying all or any part of the cost of acquiring, designing, constructing, equipping, or operating the facilities of an authority or contracting for the services thereof, or to pay or secure the payment of all or part of the principal of or interest on any general obligation bonds or revenue bonds issued for authority purposes. Until expended, money accumulated in the funds and accounts of an authority may be invested in the manner authorized by the governing body of the authority, consistent with state law.

If any of the revenue from any tax or fee authorized to be levied by an authority has been pledged by the authority to secure the payment of any bonds as authorized in this chapter, then as long as that pledge is in effect the legislature shall not withdraw from the authority the authorization to levy and collect the tax or fee.

NEW SECTION. Sec. 312. The special excise tax imposed under section 309(1) of this act will be collected at the same time and in the same manner as license tab fees under RCW 46.16.0621 and section 310 of this act. Every year on January 1st, April 1st, July 1st, and October 1st the department of licensing shall remit special excise taxes collected on behalf of an authority, back to the authority, at no cost to the authority.

Sec. 313. RCW 84.52.010 and 1995 2nd sp.s. c 13 s 4 are each amended to read as follows:

Except as is permitted under RCW 84.55.050, all taxes shall be levied or voted in specific amounts.

The rate percent of all taxes for state and county purposes, and purposes of taxing districts coextensive with the county, shall be determined, calculated and fixed by the county assessors of the respective counties, within the limitations provided by law, upon the assessed valuation of the property of the county, as shown by the completed tax rolls of the county, and the rate percent of all taxes levied for purposes of taxing districts within any county shall be determined, calculated and fixed by the county assessors of the respective counties, within the limitations provided by law, upon the assessed valuation of the property of the taxing districts respectively.

When a county assessor finds that the aggregate rate of tax levy on any property, that is subject to the limitations set forth in RCW 84.52.043 or 84.52.050, exceeds the limitations provided in either of these sections, the assessor shall recompute and establish a consolidated levy in the following manner:

(1) The full certified rates of tax levy for state, county, county road district, and city or town purposes shall be extended on the tax rolls in amounts not exceeding the limitations established by law; however any state levy shall take precedence over all other levies and shall not be reduced for any purpose other than that required by RCW 84.55.010. If, as a result of the levies imposed under RCW 84.52.069, 84.34.230, the portion of the levy by a metropolitan park district that was protected under RCW 84.52.120, and 84.52.105, the combined rate of regular property tax levies that are subject to the one percent limitation exceeds one percent of the true and fair value of any property, then these levies shall be reduced as follows: (a) The portion of the levy by a metropolitan park district that is protected under RCW 84.52.120 shall be reduced until the combined rate no longer exceeds one percent of the true and fair value of any property or shall be eliminated; (b) if the combined rate of regular property tax levies that are subject to the one percent limitation still exceeds one percent of the true and fair value of any property, then the levies imposed under RCW 84.34.230, 84.52.105, and any portion of the levy imposed under RCW 84.52.069 that is in excess of thirty cents per thousand dollars of assessed value, shall be reduced on a pro rata basis until the combined rate no longer exceeds one percent of the true and fair value of any property or shall be eliminated; and (c) if the combined rate of regular property tax levies that are subject to the one percent limitation still exceeds one percent of the true and fair value of any property, then the thirty cents per thousand dollars of assessed value of tax levy imposed under RCW 84.52.069 shall be reduced until the combined rate no longer exceeds one percent of the true and fair value of any property or eliminated.

(2) The certified rates of tax levy subject to these limitations by all junior taxing districts imposing taxes on such property shall be reduced or eliminated as follows to bring the consolidated levy of taxes on such property within the provisions of these limitations:

(a) First, the certified property tax levy rates of those junior taxing districts authorized under RCW 36.68.525, 36.69.145, section 310 of this act, and 67.38.130 shall be reduced on a pro rata basis or eliminated;

(b) Second, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates of flood control zone districts shall be reduced on a pro rata basis or eliminated;

(c) Third, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates of all other junior taxing districts, other than fire protection districts, library districts, the first fifty cent per thousand dollars of assessed valuation levies for metropolitan park districts, and the first fifty cent per thousand dollars of assessed valuation levies for public hospital districts, shall be reduced on a pro rata basis or eliminated;

(d) Fourth, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates authorized to fire protection districts under RCW 52.16.140 and 52.16.160 shall be reduced on a pro rata basis or eliminated; and

(e) Fifth, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates authorized for fire protection districts under RCW 52.16.130, library districts, metropolitan park districts under their first fifty cent per thousand dollars of assessed valuation levy, and public hospital districts under their first fifty cent per thousand dollars of assessed valuation levy, shall be reduced on a pro rata basis or eliminated.

In determining whether the aggregate rate of tax levy on any property, that is subject to the limitations set forth in RCW 84.52.050, exceeds the limitations provided in that section, the assessor shall use the hypothetical state levy, as apportioned to the county under RCW 84.48.080, that was computed under RCW 84.48.080 without regard to the reduction under RCW 84.55.012.

Sec. 314. RCW 84.52.052 and 1996 c 230 s 1615 are each amended to read as follows:

The limitations imposed by RCW 84.52.050 through 84.52.056, and RCW 84.52.043 shall not prevent the levy of additional taxes by any taxing district except school districts in which a larger levy is necessary in order to prevent the impairment of the obligation of contracts. As used in this section, the term "taxing district" means any county, metropolitan park district, park and recreation service area, park and recreation district, water-sewer district, solid waste disposal district, public facilities district, flood control zone district, county rail district, service district, public hospital district, road district, rural county library district, island library district, rural partial-county library district, intercounty rural library district, fire protection district, cemetery district, city, town, transportation benefit district, emergency medical service district with a population density of less than one thousand per square mile, ((or)) cultural arts, stadium, and convention district, or city transportation authority.

Any such taxing district may levy taxes at a rate in excess of the rate specified in RCW 84.52.050 through 84.52.056 and 84.52.043, or 84.55.010 through 84.55.050, when authorized so to do by the voters of such taxing district in the manner set forth in Article VII, section 2(a) of the Constitution of this state at a special or general election to be held in the year in which the levy is made.

A special election may be called and the time therefor fixed by the county legislative authority, or council, board of commissioners, or other governing body of any such taxing district, by giving notice thereof by publication in the manner provided by law for giving notices of general elections, at which special election the proposition authorizing such excess levy shall be submitted in such form as to enable the voters favoring the proposition to vote "yes" and those opposed thereto to vote "no."

NEW SECTION. Sec. 315. Sections 301 through 312 of this act constitute a new chapter in Title 36 RCW.

IV. MISCELLANEOUS PROVISIONS

NEW SECTION. Sec. 401. CAPTIONS. Captions used in this act are not part of the law.

NEW SECTION. Sec. 402. STATEWIDE MOTOR FUEL TAXES HELD HARMLESS. Existing statewide motor vehicle fuel and special fuel taxes, at the distribution rates in RCW 46.68.090, are not intended to be altered by this act.

NEW SECTION. Sec. 403. CODIFICATION. Sections 101 through 109 of this act constitute a new chapter in Title 36 RCW.

NEW SECTION. Sec. 404. SEVERABILITY. 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. 405. CONTINGENT EFFECT. This act is contingent upon a transportation revenue act (. . . . . . Bill No. . . .) becoming law in 2002.