[atlas:bill]

AN ACT Relating to transportation improvement and financing; amending RCW 46.16.070, 46.68.035, 82.38.030, 82.38.035, 82.38.045, 82.38.047, 82.38.075, 46.09.170, 46.10.170, 79A.25.070, 82.08.020, 82.12.020, and 39.42.060; reenacting and amending RCW 82.36.025, 46.68.090, and 43.84.092; adding a new section to chapter 46.68 RCW; adding new sections to chapter 47.10 RCW; adding a new chapter to Title 47 RCW; creating new sections; providing an effective date; providing for submission of this act to a vote of the people; and declaring an emergency.

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

PART I - ACCOUNTABILITY FOR TRANSPORTATION PROJECTS AND PROGRAMS

NEW SECTION. Sec. 101. It is essential that the legislature improve the accountability and efficiency of the department of transportation. Taxpayers must know that their tax dollars are being well spent to deliver critically needed transportation projects. To accomplish this, an independent transportation accountability board must be established to provide citizen oversight on these transportation projects. The board will report back to the public on how their tax dollars are spent on projects funded by new transportation taxes.

NEW SECTION. Sec. 102. (1) The transportation accountability board is created.

(2) The board will consist of no fewer than five and no more than nine members appointed by the governor for terms of four years, except that at least half the members initially appointed will be appointed for terms of two years. The members of the board must be chosen so the council will have experience and expertise relating to major civil engineering and construction works and facilities to include: (a) Design, estimating, contract packaging, and procurement; (b) construction means and methods and construction management and administration; (c) project finance, accounting, controls, and reporting; (d) procedures for obtaining permits and for assuring regulatory compliance; (e) dispute resolution; (f) construction work force training and safety; (g) general public administration; and (h) experience crafting and implementing environmental mitigation plans. The governor shall designate one of the appointees as chairman, and may draw on members of the Blue Ribbon Commission on Transportation for initial appointees.

(3) The governor may not remove members from the board before the expiration of their terms unless for cause based upon a determination of incapacity, incompetence, neglect of duty, or malfeasance in office by the Thurston county superior court, upon petition and show cause proceedings brought for that purpose in that court and directed to the board member in question.

(4) No member may be appointed for more than three consecutive terms.

NEW SECTION. Sec. 103. (1) The board shall meet periodically upon the call of the chairman. It may adopt its own rules and may establish its own procedures. It shall act collectively in harmony with recorded resolutions or motions adopted by a majority vote of the members.

(2) Each member of the board will be compensated in accordance with RCW 43.03.250 and reimbursed for actual necessary traveling and other expenses in going to, attending, and returning from meetings of the board or that are incurred in the discharge of duties requested by the chairman. However, in no event may a board member be compensated in any year for more than one hundred twenty days, except the chairman may be compensated for not more than one hundred fifty days. Service on the board does not qualify as a service credit for the purposes of a public retirement system.

(3) The board shall keep proper records and is subject to audit by the state auditor or other auditing entities.

NEW SECTION. Sec. 104. (1) Staff support to the board must be provided by the joint legislative audit and review committee, which shall provide professional support for the duties, functions, responsibilities, and activities of the board, including but not limited to information technology systems; data collection, processing, analysis, and reporting; project management; and office space, equipment, and secretarial support.

(2) The board may from time to time retain planners, consultants, and other technical personnel to advise it in the performance of its duties.

NEW SECTION. Sec. 105. The transportation accountability board shall serve as a single, independent point of accountability for reporting, analyzing, and monitoring the department's performance in delivering improvement projects and programs funded with new revenues. The department of transportation and the transportation commission must work cooperatively with the board to carry out the purposes of this chapter. The board has the following responsibilities:

(1) Direct the department of transportation to submit a quarterly audit report as required under section 106 of this act;

(2) Report annually to the governor and the legislature on the department's progress on each project as further defined in section 108 of this act;

(3) When necessary, make policy recommendations for improving efficiencies, savings or improvements in the department's project management, accountability measures, or project delivery mechanisms;

(4) Recommend any leading edge transportation project delivery strategies, oversight, accountability, or efficiency measures.

NEW SECTION. Sec. 106. The department of transportation shall prepare and submit to the transportation commission once each quarter, a comprehensive audit report on each transportation project funded by this act. At a minimum, the audit report must include the following elements:

(1) Project status and any scope changes;

(2) Estimated completion date and cost, noting any changes from past estimates;

(3) Actual project expenditures as compared with projected expenditures;

(4) Any changes in financing for each project;

(5) Claim or change orders that result in greater than a five percent cumulative increase in project cost, or greater than sixty days of delay;

(6) Status of any required permits;

(7) Mitigation efforts to relieve both traffic and environmental impacts;

(8) Evaluation of work force effectiveness, including both state employees and contractors;

(9) Outlook for the upcoming year, including projected accomplishments and challenges;

(10) Copies of any accountability reports filed with the federal highway administration;

(11) Any other useful information the board requests.

NEW SECTION. Sec. 107. The transportation commission must review the proposed audit report submitted by the department. After reviewing the information contained therein, the commission may request additional information or data, or ask for clarifications. The commission is prohibited from changing any of the data contained in the audit report.

After conducting its review, the commission must forward the audit report to the transportation accountability board.

NEW SECTION. Sec. 108. (1) Upon completion of its review under section 107 of this act, the transportation commission shall forward the quarterly audit report to the transportation accountability board. The transportation accountability board will accept or reject the audit report.

(a) In determining whether to accept or reject the audit report, the board:

(i) Will analyze, investigate, and evaluate the data contained in the quarterly audit report;

(ii) Will receive staff support for this evaluation from the joint legislative audit and review committee; and

(iii) May request additional information or data from the department of transportation.

(b) As part of the evaluation process, the board may make recommendations to the department and the transportation commission for efficiencies, savings, or improvements in the department's project management, accountability measures or project delivery mechanisms. The chairman will work with the department and the transportation commission on behalf of the board to implement changes recommended by the board.

(2) Upon final acceptance, the board must forward the audit report to the transportation standing committees of the house of representatives and senate, and to the office of financial management, along with any recommendations the board makes under section 105 of this act.

(3) The board must publish and make the audit report available to the public in both print and electronic media.

NEW SECTION. Sec. 109. Sections 101 through 108 of this act constitute a new chapter in Title 47 RCW.

PART II - COMBINED LICENSING FEE

Sec. 201. RCW 46.16.070 and 1994 c 262 s 8 are each amended to read as follows:

(1) In lieu of all other vehicle licensing fees, unless specifically exempt, and in addition to ((~~the excise tax prescribed in chapter 82.44 RCW and~~)) the mileage fees prescribed for buses and stages in RCW 46.16.125, there shall be paid and collected annually for each truck, motor truck, truck tractor, road tractor, tractor, bus, auto stage, or for hire vehicle with seating capacity of more than six, based upon the declared combined gross weight or declared gross weight ((~~thereof~~)) pursuant to the provisions of chapter 46.44 RCW, the following licensing fees by such gross weight:

((~~DECLARED GROSS WEIGHT SCHEDULE A SCHEDULE B~~

~~4,000 lbs. $ 37.00 $ 37.00~~

~~6,000 lbs. $ 44.00 $ 44.00~~

~~8,000 lbs. $ 55.00 $ 55.00~~

~~10,000 lbs. $ 62.00 $ 62.00~~

~~12,000 lbs. $ 72.00 $ 72.00~~

~~14,000 lbs. $ 82.00 $ 82.00~~

~~16,000 lbs. $ 92.00 $ 92.00~~

~~18,000 lbs. $ 137.00 $ 137.00~~

~~20,000 lbs. $ 152.00 $ 152.00~~

~~22,000 lbs. $ 164.00 $ 164.00~~

~~24,000 lbs. $ 177.00 $ 177.00~~

~~26,000 lbs. $ 187.00 $ 187.00~~

~~28,000 lbs. $ 220.00 $ 220.00~~

~~30,000 lbs. $ 253.00 $ 253.00~~

~~32,000 lbs. $ 304.00 $ 304.00~~

~~34,000 lbs. $ 323.00 $ 323.00~~

~~36,000 lbs. $ 350.00 $ 350.00~~

~~38,000 lbs. $ 384.00 $ 384.00~~

~~40,000 lbs. $ 439.00 $ 439.00~~

~~42,000 lbs. $ 456.00 $ 546.00~~

~~44,000 lbs. $ 466.00 $ 556.00~~

~~46,000 lbs. $ 501.00 $ 591.00~~

~~48,000 lbs. $ 522.00 $ 612.00~~

~~50,000 lbs. $ 566.00 $ 656.00~~

~~52,000 lbs. $ 595.00 $ 685.00~~

~~54,000 lbs. $ 642.00 $ 732.00~~

~~56,000 lbs. $ 677.00 $ 767.00~~

~~58,000 lbs. $ 704.00 $ 794.00~~

~~60,000 lbs. $ 750.00 $ 840.00~~

~~62,000 lbs. $ 804.00 $ 894.00~~

~~64,000 lbs. $ 822.00 $ 912.00~~

~~66,000 lbs. $ 915.00 $ 1,005.00~~

~~68,000 lbs. $ 954.00 $ 1,044.00~~

~~70,000 lbs. $ 1,027.00 $ 1,117.00~~

~~72,000 lbs. $ 1,098.00 $ 1,188.00~~

~~74,000 lbs. $ 1,193.00 $ 1,283.00~~

~~76,000 lbs. $ 1,289.00 $ 1,379.00~~

~~78,000 lbs. $ 1,407.00 $ 1,497.00~~

~~80,000 lbs. $ 1,518.00 $ 1,608.00~~

~~82,000 lbs. $ 1,623.00 $ 1,713.00~~

~~84,000 lbs. $ 1,728.00 $ 1,818.00~~

~~86,000 lbs. $ 1,833.00 $ 1,923.00~~

~~88,000 lbs. $ 1,938.00 $ 2,028.00~~

~~90,000 lbs. $ 2,043.00 $ 2,133.00~~

~~92,000 lbs. $ 2,148.00 $ 2,238.00~~

~~94,000 lbs. $ 2,253.00 $ 2,343.00~~

~~96,000 lbs. $ 2,358.00 $ 2,448.00~~

~~98,000 lbs. $ 2,463.00 $ 2,553.00~~

~~100,000 lbs. $ 2,568.00 $ 2,658.00~~

~~102,000 lbs. $ 2,673.00 $ 2,763.00~~

~~104,000 lbs. $ 2,778.00 $ 2,868.00~~

~~105,500 lbs. $ 2,883.00 $ 2,973.00~~))

Effective

Gross October 1, 2002, Effective

Weight through September 30, 2003 October 1, 2003

Schedule A Schedule B Schedule A Schedule B

4,000 $37 $37 $37 $37

6,000 44 44 44 44

8,000 55 55 55 55

10,000 62 62 62 62

12,000 77 77 81 81

14,000 88 88 93 93

16,000 99 99 105 105

18,000 148 148 159 159

20,000 165 165 177 177

22,000 178 178 192 192

24,000 192 192 207 207

26,000 203 203 219 219

28,000 239 239 259 259

30,000 276 276 298 298

32,000 332 332 360 360

34,000 353 353 382 382

36,000 382 382 415 415

38,000 420 420 456 456

40,000 480 480 522 522

42,000 499 589 542 632

44,000 510 600 554 644

46,000 549 639 596 686

48,000 572 662 621 711

50,000 620 710 674 764

52,000 652 742 709 799

54,000 704 794 765 855

56,000 742 832 807 897

58,000 772 862 840 930

60,000 822 912 895 985

62,000 882 972 960 1,050

64,000 902 992 981 1,071

66,000 1,004 1,094 1,093 1,183

68,000 1,047 1,137 1,140 1,230

70,000 1,127 1,217 1,227 1,317

72,000 1,205 1,295 1,312 1,402

74,000 1,310 1,400 1,426 1,516

76,000 1,415 1,505 1,542 1,632

78,000 1,545 1.635 1,683 1,773

80,000 1,667 1,757 1,816 1,906

82,000 1,783 1,873 1,942 2,032

84,000 1,898 1,988 2,068 2,158

86,000 2,014 2,104 2,194 2,284

88,000 2,129 2,219 2,320 2,410

90,000 2,245 2,335 2,446 2,536

92,000 2,360 2,450 2,572 2,662

94,000 2,476 2,566 2,698 2,788

96,000 2,591 2,681 2,824 2,914

98,000 2,707 2,797 2,950 3,040

100,000 2,822 2,912 3,076 3,166

102,000 2,938 3,028 3,202 3,292

104,000 3,053 3,143 3,328 3,418

105,500 3,169 3,259 3,454 3,544

Schedule A applies to vehicles either used exclusively for hauling logs or that do not tow trailers. Schedule B applies to vehicles that tow trailers and are not covered under Schedule A.

(2) Every truck, motor truck, truck tractor, and tractor exceeding 6,000 pounds empty scale weight registered under chapter 46.16, 46.87, or 46.88 RCW shall be licensed for not less than one hundred fifty percent of its empty weight unless the amount would be in excess of the legal limits prescribed for such a vehicle in RCW 46.44.041 or 46.44.042, in which event the vehicle shall be licensed for the maximum weight authorized for such a vehicle or unless the vehicle is used only for the purpose of transporting any well drilling machine, air compressor, rock crusher, conveyor, hoist, donkey engine, cook house, tool house, bunk house, or similar machine or structure attached to or made a part of such vehicle.

(3) The following provisions apply when increasing gross or combined gross weight for a vehicle licensed under this section:

(a) The new license fee will be one-twelfth of the fee listed above for the new gross weight, multiplied by the number of months remaining in the period for which licensing fees have been paid, including the month in which the new gross weight is effective.

(b) Upon surrender of the current certificate of registration or cab card, the new licensing fees due shall be reduced by the amount of the licensing fees previously paid for the same period for which new fees are being charged.

((~~(2)~~)) (4) The proceeds from the fees collected under ((~~subsection (1) of~~)) this section shall be distributed in accordance with RCW 46.68.035.

Sec. 202. RCW 46.68.035 and 2000 2nd sp.s. c 4 s 8 are each amended to read as follows:

All proceeds from combined vehicle licensing fees received by the director for vehicles licensed under RCW 46.16.070 and 46.16.085 shall be forwarded to the state treasurer to be distributed into accounts according to the following method:

(1) The sum of two dollars for each vehicle shall be deposited into the multimodal transportation account, except that for each vehicle registered by a county auditor or agent to a county auditor pursuant to RCW 46.01.140, the sum of two dollars shall be credited to the current county expense fund.

(2) The remainder shall be distributed as follows:

(a) 23.677 percent of the proceeds collected on the rate in effect September 30, 2002, shall be deposited into the state patrol highway account of the motor vehicle fund;

(b) 1.521 percent of the proceeds collected on the rate in effect September 30, 2002, shall be deposited into the Puget Sound ferry operations account of the motor vehicle fund; ((~~and~~))

(c) ((~~The remaining~~)) 74.802 percent of the proceeds collected on the rate in effect on September 30, 2002, shall be deposited into the motor vehicle fund; and

(d) The remaining proceeds collected on the difference between the current rate and the rate in effect on September 30, 2002, shall be deposited in the freight mobility strategic investment account.

PART III - FUEL TAX

Sec. 301. RCW 82.36.025 and 1999 c 269 s 16 and 1999 c 94 s 29 are each reenacted and amended to read as follows:

(1) A motor vehicle fuel tax rate of twenty-three cents per gallon ((~~shall apply~~)) applies to the sale, distribution, or use of motor vehicle fuel.

(2) Beginning October 1, 2002, an additional and cumulative motor vehicle fuel tax rate of four cents per gallon applies to the sale, distribution, or use of motor vehicle fuel.

(3) Beginning October 1, 2003, an additional and cumulative motor vehicle fuel tax rate of four cents per gallon applies to the sale, distribution, or use of motor vehicle fuel.

Sec. 302. RCW 46.68.090 and 1999 c 269 s 2 and 1999 c 94 s 6 are each reenacted and amended to read as follows:

(1) All moneys that have accrued or may accrue to the motor vehicle fund from the motor vehicle fuel tax and special fuel tax shall be first expended for purposes enumerated in (a) and (b) of this subsection. The remaining net tax amount shall be distributed monthly by the state treasurer in ((~~the proportions set forth in (c) through (l) of this~~)) accordance with subsections (2) through (4) of this section.

(a) For payment of refunds of motor vehicle fuel tax and special fuel tax that has been paid and is refundable as provided by law;

(b) For payment of amounts to be expended pursuant to appropriations for the administrative expenses of the offices of state treasurer, state auditor, and the department of licensing of the state of Washington in the administration of the motor vehicle fuel tax and the special fuel tax, which sums shall be distributed monthly((;)).

((~~(c)~~)) (2) All of the remaining net tax amount collected under RCW 82.36.025(1) and 82.38.030(1) must be distributed in the proportions set forth in (a) through (j) of this subsection.

(a) For distribution to the motor vehicle fund an amount equal to 44.387 percent to be expended for highway purposes of the state, as defined in RCW 46.68.130;

((~~(d)~~)) (b) For distribution to the special category C account, hereby created in the motor vehicle fund, an amount equal to 3.2609 percent to be expended for special category C projects. Special category C projects are category C projects that, due to high cost only, will require bond financing to complete construction.

The following criteria, listed in order of priority, shall be used in determining which special category C projects have the highest priority:

(i) Accident experience;

(ii) Fatal accident experience;

(iii) Capacity to move people and goods safely and at reasonable speeds without undue congestion; and

(iv) Continuity of development of the highway transportation network.

Moneys deposited in the special category C account in the motor vehicle fund may be used for payment of debt service on bonds the proceeds of which are used to finance special category C projects under this subsection ((~~(1)(d)~~)) (2)(b);

((~~(e)~~)) (c) For distribution to the Puget Sound ferry operations account in the motor vehicle fund an amount equal to 2.3283 percent;

((~~(f)~~)) (d) For distribution to the Puget Sound capital construction account in the motor vehicle fund an amount equal to 2.3726 percent;

((~~(g)~~)) (e) For distribution to the urban arterial trust account in the motor vehicle fund an amount equal to 7.5597 percent;

((~~(h)~~)) (f) For distribution to the transportation improvement account in the motor vehicle fund an amount equal to 5.6739 percent and expended in accordance with RCW 47.26.086;

((~~(i)~~)) (g) For distribution to the cities and towns from the motor vehicle fund an amount equal to 10.6961 percent in accordance with RCW 46.68.110;

((~~(j)~~)) (h) For distribution to the counties from the motor vehicle fund an amount equal to 19.2287 percent: (i) Out of which there shall be distributed from time to time, as directed by the department of transportation, those sums as may be necessary to carry out the provisions of RCW 47.56.725; and (ii) less any amounts appropriated to the county road administration board to implement the provisions of RCW 47.56.725(4), with the balance of such county share to be distributed monthly as the same accrues for distribution in accordance with RCW 46.68.120;

((~~(k)~~)) (i) For distribution to the county arterial preservation account, hereby created in the motor vehicle fund an amount equal to 1.9565 percent. These funds shall be distributed by the county road administration board to counties in proportions corresponding to the number of paved arterial lane miles in the unincorporated area of each county and shall be used for improvements to sustain the structural, safety, and operational integrity of county arterials. The county road administration board shall adopt reasonable rules and develop policies to implement this program and to assure that a pavement management system is used;

((~~(l)~~)) (j) For distribution to the rural arterial trust account in the motor vehicle fund an amount equal to 2.5363 percent and expended in accordance with RCW 36.79.020.

((~~(2)~~)) (3) All of the remaining net tax amount collected under the additional four cents levied under RCW 82.36.025(2) and 82.38.030(2) must be distributed in the following manner:

(a) 75 percent distributed to the motor vehicle fund;

(b) 8.3333 percent distributed to the transportation improvement account in the motor vehicle fund and expended in accordance with RCW 47.26.086;

(d) 8.3333 percent distributed to the counties from the motor vehicle fund in accordance with RCW 46.68.120.

(4) Nothing in this section or in RCW 46.68.130 may be construed so as to violate any terms or conditions contained in any highway construction bond issues now or hereafter authorized by statute and whose payment is by such statute pledged to be paid from any excise taxes on motor vehicle fuel and special fuels.

Sec. 303. RCW 82.38.030 and 2001 c 270 s 6 are each amended to read as follows:

(1) There is hereby levied and imposed upon special fuel users a tax at the rate ((~~computed in the manner provided in RCW 82.36.025 on each~~)) of twenty-three cents per gallon of special fuel, or each one hundred cubic feet of compressed natural gas, measured at standard pressure and temperature.

(2) Beginning October 1, 2002, an additional and cumulative special fuel tax rate of four cents per gallon of special fuel, or each one hundred cubic feet of compressed natural gas, measured at standard pressure and temperature is imposed on special fuel users.

(3) Beginning October 1, 2003, an additional and cumulative special fuel tax rate of four cents per gallon of special fuel, or each one hundred cubic feet of compressed natural gas, measured at standard pressure and temperature is imposed on special fuel users.

(4) The tax ((~~imposed by subsection (1) of this section~~)) is imposed when:

(a) Special fuel is removed in this state from a terminal if the special fuel is removed at the rack unless the removal is to a licensed exporter for direct delivery to a destination outside of the state, or the removal is to a special fuel distributor for direct delivery to an international fuel tax agreement licensee under RCW 82.38.320;

(b) Special fuel is removed in this state from a refinery if either of the following applies:

(i) The removal is by bulk transfer and the refiner or the owner of the special fuel immediately before the removal is not a licensee; or

(ii) The removal is at the refinery rack unless the removal is to a licensed exporter for direct delivery to a destination outside of the state, or the removal is to a special fuel distributor for direct delivery to an international fuel tax agreement licensee under RCW 82.38.320;

(i) The entry is by bulk transfer and the importer is not a licensee; or

(ii) The entry is not by bulk transfer;

(d) Special fuel is sold or removed in this state to an unlicensed entity unless there was a prior taxable removal, entry, or sale of the special fuel;

(e) Blended special fuel is removed or sold in this state by the blender of the fuel. The number of gallons of blended special fuel subject to tax is the difference between the total number of gallons of blended special fuel removed or sold and the number of gallons of previously taxed special fuel used to produce the blended special fuel;

(f) Dyed special fuel is used on a highway, as authorized by the internal revenue code, unless the use is exempt from the special fuel tax;

(g) Special fuel purchased by an international fuel tax agreement licensee under RCW 82.38.320 is used on a highway; and

(h) Special fuel is sold by a licensed special fuel supplier to a special fuel distributor, special fuel importer, or special fuel blender and the special fuel is not removed from the bulk transfer-terminal system.

((~~(3)~~)) (5) The tax imposed by this chapter, if required to be collected by the licensee, is held in trust by the licensee until paid to the department, and a licensee who appropriates or converts the tax collected to his or her own use or to any use other than the payment of the tax to the extent that the money required to be collected is not available for payment on the due date as prescribed in this chapter is guilty of a felony, or gross misdemeanor in accordance with the theft and anticipatory provisions of Title 9A RCW. A person, partnership, corporation, or corporate officer who fails to collect the tax imposed by this section, or who has collected the tax and fails to pay it to the department in the manner prescribed by this chapter, is personally liable to the state for the amount of the tax.

Sec. 304. RCW 82.38.035 and 2001 c 270 s 7 are each amended to read as follows:

(1) A licensed supplier shall remit tax on special fuel to the department as provided in RCW 82.38.030((~~(2)~~)) (4)(a). On a two-party exchange, or buy-sell agreement between two licensed suppliers, the receiving exchange partner or buyer shall remit the tax.

(2) A refiner shall remit tax to the department on special fuel removed from a refinery as provided in RCW 82.38.030((~~(2)~~)) (4)(b).

(3) An importer shall remit tax to the department on special fuel imported into this state as provided in RCW 82.38.030((~~(2)~~)) (4)(c).

(4) A blender shall remit tax to the department on the removal or sale of blended special fuel as provided in RCW 82.38.030((~~(2)~~)) (4)(e).

(5) A dyed special fuel user shall remit tax to the department on the use of dyed special fuel as provided in RCW 82.38.030((~~(2)~~)) (4)(f).

Sec. 305. RCW 82.38.045 and 1998 c 176 s 54 are each amended to read as follows:

A terminal operator is jointly and severally liable for remitting the tax imposed under RCW 82.38.030((~~(1)~~)) if, at the time of removal:

(1) The position holder with respect to the special fuel is a person other than the terminal operator and is not a licensee;

(2) The terminal operator is not a licensee;

(3) The position holder has an expired internal revenue service notification certificate issued under chapter 26, C.F.R. Part 48; or

(4) The terminal operator had reason to believe that information on the notification certificate was false.

Sec. 306. RCW 82.38.047 and 1998 c 176 s 55 are each amended to read as follows:

A terminal operator is jointly and severally liable for remitting the tax imposed under RCW 82.38.030((~~(1)~~)) if, in connection with the removal of special fuel that is not dyed or marked in accordance with internal revenue service requirements, the terminal operator provides a person with a bill of lading, shipping paper, or similar document indicating that the special fuel is dyed or marked in accordance with internal revenue service requirements.

Sec. 307. RCW 82.38.075 and 1983 c 212 s 1 are each amended to read as follows:

In order to encourage the use of nonpolluting fuels, an annual license fee in lieu of the tax imposed by RCW 82.38.030 shall be imposed upon the use of natural gas as defined in this chapter or on liquified petroleum gas, commonly called propane, which is used in any motor vehicle, as defined in RCW 46.04.320, which shall be based upon the following schedule as adjusted by the formula set out below:

VEHICLE TONNAGE (GVW) FEE

0 - 6,000 $ 45

6,001 - 10,000 $ 45

10,001 - 18,000 $ 80

18,001 - 28,000 $110

28,001 - 36,000 $150

36,001 and above $250

To determine the actual annual license fee imposed by this section for a registration year, the appropriate dollar amount set out in the above schedule shall be multiplied by the ((~~motor vehicle~~)) special fuel tax rate ((~~in cents per gallon~~)) as established by RCW ((~~82.36.025~~)) 82.38.030 effective on July 1st of the preceding calendar year and the product thereof shall be divided by 12 cents.

The department of licensing, in addition to the foregoing fee, shall charge a further fee of five dollars as a handling charge for each license issued.

The director of licensing shall be authorized to prorate the vehicle tonnage fee so that the annual license required by this section will correspond with the staggered vehicle licensing system.

A decal or other identifying device issued upon payment of these annual fees shall be displayed as prescribed by the department as authority to purchase this fuel.

Persons selling or dispensing natural gas or propane may not sell or dispense this fuel for their own use or the use of others into tanks of vehicles powered by this fuel which do not display a valid decal or other identifying device as provided in this section.

Vehicles registered in jurisdictions outside the state of Washington are exempt from this section.

Any person selling or dispensing natural gas or propane into the tank of a motor vehicle powered by this fuel, except as prescribed in this chapter, is subject to the penalty provisions of this chapter.

NEW SECTION. Sec. 308. A new section is added to chapter 46.68 RCW to read as follows:

There is hereby created the freight mobility strategic investment account. All money deposited in the account shall be used by the department of transportation for:

(1) Improving the freight transportation highway system by constructing projects selected by the freight mobility strategic investment board.

(2) The department may pledge any money in the freight mobility strategic investment account for debt service on bonds issued to finance projects authorized under subsection (1) of this section.

(3) Money in the freight mobility strategic investment account of the motor vehicle fund that is not required by the department for payment of principal or interest on bond issues or for any of the other purposes authorized in this section may be invested by the department in bonds and obligations of the nature eligible for the investment of current state funds as provided in RCW 43.84.080.

Sec. 309. 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:

(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, 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 freight mobility strategic investment account, 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. 310. RCW 46.09.170 and 1995 c 166 s 9 are each amended to read as follows:

(1) From time to time, but at least once each year, the state treasurer shall refund from the motor vehicle fund one percent of the motor vehicle fuel tax revenues collected under chapter 82.36 RCW, based on the tax rate in effect January 1, ((~~1990~~)) 2001, less proper deductions for refunds and costs of collection as provided in RCW 46.68.090. The treasurer shall place these funds in the general fund as follows:

(a) Forty percent shall be credited to the ORV and nonhighway vehicle account and administered by the department of natural resources solely for planning, maintenance, and management of ORV recreation facilities, nonhighway roads, and nonhighway road recreation facilities. The funds under this subsection shall be expended in accordance with the following limitations:

(i) Not more than five percent may be expended for information programs under this chapter;

(ii) Not less than ten percent and not more than fifty percent may be expended for ORV recreation facilities;

(iii) Not more than twenty-five percent may be expended for maintenance of nonhighway roads;

(iv) Not more than fifty percent may be expended for nonhighway road recreation facilities;

(v) Ten percent shall be transferred to the interagency committee for outdoor recreation for grants to law enforcement agencies in those counties where the department of natural resources maintains ORV facilities. This amount is in addition to those distributions made by the interagency committee for outdoor recreation under (d)(i) of this subsection;

(b) Three and one-half percent shall be credited to the ORV and nonhighway vehicle account and administered by the department of fish and wildlife solely for the acquisition, planning, development, maintenance, and management of nonhighway roads and recreation facilities;

(c) Two percent shall be credited to the ORV and nonhighway vehicle account and administered by the parks and recreation commission solely for the maintenance and management of ORV use areas and facilities; and

(d) Fifty-four and one-half percent, together with the funds received by the interagency committee for outdoor recreation under RCW 46.09.110, shall be credited to the nonhighway and off-road vehicle activities program account to be administered by the committee for planning, acquisition, development, maintenance, and management of ORV recreation facilities and nonhighway road recreation facilities; ORV user education and information; and ORV law enforcement programs. The funds under this subsection shall be expended in accordance with the following limitations:

(i) Not more than twenty percent may be expended for ORV education, information, and law enforcement programs under this chapter;

(ii) Not less than an amount equal to the funds received by the interagency committee for outdoor recreation under RCW 46.09.110 and not more than sixty percent may be expended for ORV recreation facilities;

(iii) Not more than twenty percent may be expended for nonhighway road recreation facilities.

(2) On a yearly basis an agency may not, except as provided in RCW 46.09.110, expend more than ten percent of the funds it receives under this chapter for general administration expenses incurred in carrying out this chapter.

Sec. 311. RCW 46.10.170 and 1994 c 262 s 4 are each amended to read as follows:

From time to time, but at least once each four years, the department shall determine the amount of moneys paid to it as motor vehicle fuel tax that is tax on snowmobile fuel. Such determination shall use one hundred thirty-five gallons as the average yearly fuel usage per snowmobile, the number of registered snowmobiles during the calendar year under determination, and the fuel tax rate in effect January 1, ((~~1990~~)) 2001.

Sec. 312. RCW 79A.25.070 and 2000 c 11 s 73 are each amended to read as follows:

Upon expiration of the time limited by RCW 82.36.330 for claiming of refunds of tax on marine fuel, the state of Washington shall succeed to the right to such refunds. The director of licensing, after taking into account past and anticipated claims for refunds from and deposits to the marine fuel tax refund account and the costs of carrying out the provisions of RCW 79A.25.030, shall request the state treasurer to transfer monthly from the marine fuel tax refund account an amount equal to the proportion of the moneys in the account representing the motor vehicle fuel tax rate under RCW 82.36.025 in effect on January 1, ((~~1990~~)) 2001, to the recreation resource account and the remainder to the motor vehicle fund.

PART IV - SALES TAX ON MOTOR VEHICLES

Sec. 401. RCW 82.08.020 and 2000 2nd sp.s. c 4 s 1 are each amended to read as follows:

(1) There is levied and there shall be collected a tax on each retail sale in this state equal to six and five-tenths percent of the selling price.

(2) There is levied and there shall be collected an additional tax on each retail car rental, regardless of whether the vehicle is licensed in this state, equal to five and nine-tenths percent of the selling price. The revenue collected under this subsection shall be deposited in the multimodal transportation account created in RCW 47.66.070.

(3) There is levied and there shall be collected an additional tax on each retail sale of a motor vehicle, as defined in RCW 46.04.320, of one percent. The revenue collected under this subsection (3) and the revenue collected under RCW 82.12.020 based on the rate provided in this subsection (3) will be deposited in the multimodal transportation account under RCW 47.66.070.

(4) The taxes imposed under this chapter shall apply to successive retail sales of the same property.

((~~(4)~~)) (5) The rates provided in this section apply to taxes imposed under chapter 82.12 RCW as provided in RCW 82.12.020.

Sec. 402. RCW 82.12.020 and 1999 c 358 s 9 are each amended to read as follows:

(1) There is hereby levied and there shall be collected from every person in this state a tax or excise for the privilege of using within this state as a consumer: (a) Any article of tangible personal property purchased at retail, or acquired by lease, gift, repossession, or bailment, or extracted or produced or manufactured by the person so using the same, or otherwise furnished to a person engaged in any business taxable under RCW 82.04.280 (2) or (7); or (b) any canned software, regardless of the method of delivery, but excluding canned software that is either provided free of charge or is provided for temporary use in viewing information, or both.

(2) This tax shall apply to the use of every service defined as a retail sale in RCW 82.04.050(3)(a) and the use of every article of tangible personal property, including property acquired at a casual or isolated sale, and including byproducts used by the manufacturer thereof, except as hereinafter provided, irrespective of whether the article or similar articles are manufactured or are available for purchase within this state.

(3) Except as provided in RCW 82.12.0252, payment by one purchaser or user of tangible personal property or service of the tax imposed by chapter 82.08 or 82.12 RCW shall not have the effect of exempting any other purchaser or user of the same property or service from the taxes imposed by such chapters.

(4) The tax shall be levied and collected in an amount equal to the value of the article used by the taxpayer multiplied by the rates in effect for the retail sales tax under RCW 82.08.020.

(5) The use tax revenue collected on the rate provided in RCW 82.08.020(3) will be deposited in the multimodal transportation account under RCW 47.66.070.

PART V - BOND AUTHORIZATION

NEW SECTION. Sec. 501. In order to provide funds necessary for the location, design, right of way, and construction of selected state and local highway improvements, there shall be issued and sold upon the request of the transportation commission a total of three billion five hundred million dollars of general obligation bonds of the state of Washington.

NEW SECTION. Sec. 502. Upon the request of the transportation commission, as appropriate, the state finance committee shall supervise and provide for the issuance, sale, and retirement of the bonds authorized by RCW 46.68.090 in accordance with chapter 39.42 RCW. Bonds authorized by this act shall be sold in the manner, at time or times, in amounts, and at the price as the state finance committee shall determine. No bonds may be offered for sale without prior legislative appropriation of the net proceeds of the sale of the bonds.

The state finance committee shall consider the issuance of short-term obligations in lieu of long-term obligations for the purposes of more favorable interest rates, lower total interest costs, and increased marketability and for the purpose of retiring the bonds during the life of the project for which they were issued.

NEW SECTION. Sec. 503. The proceeds from the sale of bonds authorized by section 501 of this act shall be deposited in the motor vehicle fund. The proceeds shall be available only for the purposes enumerated in section 501 of this act, for the payment of bond anticipation notes, if any, and for the payment of bond issuance costs, including the costs of underwriting.

NEW SECTION. Sec. 504. Bonds issued under the authority of section 501 of this act shall distinctly state that they are a general obligation of the state of Washington, shall pledge the full faith and credit of the state to the payment of the principal thereof and the interest thereon, and shall contain an unconditional promise to pay such principal and interest as the same shall become due. The principal and interest on the bonds shall be first payable from the proceeds of the state excise taxes on motor vehicle and special fuels imposed by chapters 82.36 and 82.38 RCW. Proceeds of these excise taxes are hereby pledged to the payment of any bonds and the interest thereon issued under the authority of RCW 47.10.843 through 47.10.848, and the legislature agrees to continue to impose these excise taxes on motor vehicle and special fuels in amounts sufficient to pay, when due, the principal and interest on all bonds issued under the authority of section 501 of this act.

NEW SECTION. Sec. 505. Both principal and interest on the bonds issued for the purposes of section 501 of this act shall be payable from the highway bond retirement fund. The state finance committee may provide that a special account be created in the fund to facilitate payment of the principal and interest. The state finance committee shall, on or before June 30th of each year, certify to the state treasurer the amount required for principal and interest on the bonds in accordance with the bond proceedings. The state treasurer shall withdraw revenues from the motor vehicle fund and deposit in the highway bond retirement fund, or a special account in the fund, such amounts, and at such times, as are required by the bond proceedings.

Any funds required for bond retirement or interest on the bonds authorized by section 501 of this act shall be taken from that portion of the motor vehicle fund that results from the imposition of excise taxes on motor vehicle and special fuels and which is, or may be, appropriated to the department of transportation for state highway purposes. Funds required shall never constitute a charge against any other allocations of motor vehicle fuel and special fuel tax revenues to the state, counties, cities, and towns unless the amount arising from excise taxes on motor vehicle and special fuels distributed to the state in the motor vehicle fund proves insufficient to meet the requirements for bond retirement or interest on any such bonds.

Any payments for bond retirement or interest on the bonds taken from other revenues from the motor vehicle fuel or special fuel taxes that are distributable to the state, counties, cities, and towns shall be repaid from the first revenues from the motor vehicle fuel or special fuel taxes distributed to the motor vehicle fund not required for bond retirement or interest on the bonds.

NEW SECTION. Sec. 506. Bonds issued under the authority of section 501 of this act and this section and any other general obligation bonds of the state of Washington that have been or that may be authorized and that pledge motor vehicle and special fuels excise taxes for the payment of principal and interest thereon shall be an equal charge against the revenues from such motor vehicle and special fuels excise taxes.

NEW SECTION. Sec. 507. For the purpose of providing funds for the planning, design, construction, reconstruction, and other necessary costs for transportation projects, including rail and passenger-only ferry projects, the state finance committee is authorized to issue general obligation bonds of the state of Washington in the sum of two hundred fifty million dollars, or as much thereof as may be required, to finance these projects and all costs incidental thereto. Bonds authorized in this section may be sold at such price as the state finance committee shall determine. No bonds authorized in this section may be offered for sale without prior legislative appropriation of the net proceeds of the sale of the bonds.

NEW SECTION. Sec. 508. The proceeds of the sale of the bonds authorized in section 507 of this act must be deposited in the multimodal transportation account and must be used exclusively for the purposes specified in section 507 of this act and for the payment of expenses incurred in the issuance and sale of the bonds.

NEW SECTION. Sec. 509. (1) The nondebt-limit reimbursable bond retirement account must be used for the payment of the principal and interest on the bonds authorized in section 507 of this act.

(2)(a) The state finance committee must, on or before June 30th of each year, certify to the state treasurer the amount needed in the ensuing twelve months to meet the bond retirement and interest requirements on the bonds authorized in section 507 of this act.

(b) On or before the date on which any interest or principal and interest is due, the state treasurer shall transfer from the multimodal transportation account for deposit into the nondebt-limit reimbursable bond retirement account the amount computed in (a) of this subsection for bonds issued for the purposes of section 507 of this act.

(3) If the multimodal transportation account has insufficient revenues to pay the principal and interest computed in subsection (2)(a) of this section, then the debt-limit reimbursable bond retirement account must be used for the payment of the principal and interest on the bonds authorized in section 507 of this act from any additional means provided by the legislature.

(4) If at any time the multimodal transportation account has insufficient revenues to repay the bonds, the legislature may provide additional means for the payment of the bonds.

NEW SECTION. Sec. 510. (1) Bonds issued under section 507 of this act must state that they are a general obligation of the state of Washington, must pledge the full faith and credit of the state to the payment of the principal and interest, and must contain an unconditional promise to pay the principal and interest as it becomes due.

(2) The owner and holder of each of the bonds or the trustee for the owner and holder of any of the bonds may by mandamus or other appropriate proceeding require the transfer and payment of funds as directed in this section.

NEW SECTION. Sec. 511. The legislature may provide additional means for raising moneys for the payment of the principal and interest on the bonds authorized in section 507 of this act, and sections 509 and 510 of this act are not deemed to provide an exclusive method for their payment.

NEW SECTION. Sec. 512. The bonds authorized in section 507 of this act are a legal investment for all state funds or funds under state control and for all funds of any other public body.

Sec. 513. RCW 39.42.060 and 2001 2nd sp.s. c 9 s 18 are each amended to read as follows:

No bonds, notes, or other evidences of indebtedness for borrowed money shall be issued by the state which will cause the aggregate debt contracted by the state to exceed that amount for which payments of principal and interest in any fiscal year would require the state to expend more than seven percent of the arithmetic mean of its general state revenues, as defined in section 1(c) of Article VIII of the Washington state Constitution for the three immediately preceding fiscal years as certified by the treasurer in accordance with RCW 39.42.070. It shall be the duty of the state finance committee to compute annually the amount required to pay principal of and interest on outstanding debt. In making such computation, the state finance committee shall include all borrowed money represented by bonds, notes, or other evidences of indebtedness which are secured by the full faith and credit of the state or are required to be paid, directly or indirectly, from general state revenues and which are incurred by the state, any department, authority, public corporation or quasi public corporation of the state, any state university or college, or any other public agency created by the state but not by counties, cities, towns, school districts, or other municipal corporations, and shall include debt incurred pursuant to section 3 of Article VIII of the Washington state Constitution, but shall exclude the following:

(1) Obligations for the payment of current expenses of state government;

(2) Indebtedness incurred pursuant to RCW 39.42.080 or 39.42.090;

(3) Principal of and interest on bond anticipation notes;

(4) Any indebtedness which has been refunded;

(5) Financing contracts entered into under chapter 39.94 RCW;

(6) Indebtedness authorized or incurred before July 1, 1993, pursuant to statute which requires that the state treasury be reimbursed, in the amount of the principal of and the interest on such indebtedness, from money other than general state revenues or from the special excise tax imposed pursuant to chapter 67.40 RCW;

(7) Indebtedness authorized and incurred after July 1, 1993, pursuant to statute that requires that the state treasury be reimbursed, in the amount of the principal of and the interest on such indebtedness, from (a) moneys outside the state treasury, except higher education operating fees, (b) higher education building fees, (c) indirect costs recovered from federal grants and contracts, and (d) fees and charges associated with hospitals operated or managed by institutions of higher education;

(8) Any agreement, promissory note, or other instrument entered into by the state finance committee under RCW 39.42.030 in connection with its acquisition of bond insurance, letters of credit, or other credit support instruments for the purpose of guaranteeing the payment or enhancing the marketability, or both, of any state bonds, notes, or other evidence of indebtedness;

(9) Indebtedness incurred for the purposes identified in RCW 43.99N.020;

(10) Indebtedness incurred for the purposes of the school district bond guaranty established by chapter 39.98 RCW;

(11) Indebtedness incurred for the purposes of replacing the waterproof membrane over the east plaza garage and revising related landscaping construction pursuant to RCW 43.99Q.070; ((~~and~~))

(12) Indebtedness incurred for the purposes of the state legislative building rehabilitation, to the extent that principal and interest payments of such indebtedness are paid from the capitol building construction account pursuant to RCW 43.99Q.140(2)(b); and

(13) Indebtedness incurred for the purposes of financing projects under section 507 of this act.

To the extent necessary because of the constitutional or statutory debt limitation, priorities with respect to the issuance or guaranteeing of bonds, notes, or other evidences of indebtedness by the state shall be determined by the state finance committee.

NEW SECTION. Sec. 514. Sections 501 through 512 of this act are each added to chapter 47.10 RCW.

PART VI - REFERENDUM

NEW SECTION. Sec. 601. (1) The secretary of state shall submit this act to the people for their adoption and ratification, or rejection, at a special election to be held in this state on or before June 20, 2002, in accordance with Article II, section 1 of the state Constitution and the laws adopted to facilitate its operation. The special election shall be limited to submission of this act to the people.

(2) If the people ratify this act, revenues generated shall be spent as detailed in House Bill No. . . . ., the 2001-03 state supplemental transportation budget. The primary emphasis of revenues raised shall be improving transportation safety, reducing congestion, and improving the movement of freight and goods. The legislature recognizes that the projects detailed in House Bill No. . . . . are based on assumptions that are beyond the legislature's control, such as availability of federal funds, interest rates, required public approval for certain projects, etc., and furthermore, that current laws authorize the state transportation commission to make necessary adjustments to the proposed projects as unforeseen circumstances may require. If additional funding for the projects contained in House Bill No. . . . . becomes available, the legislature urges the acceleration of project construction wherever possible.

(3) The attorney general shall prepare the explanatory statement required by RCW 29.81.250 and transmit that statement regarding the referendum to the secretary of state no later than the last Monday of April before the special election.

(4) The secretary of state shall prepare and distribute a voters' pamphlet addressing this referendum measure following the procedures and requirements of chapter 29.81 RCW, except that the secretary of state may establish different deadlines for the appointment of committees to draft arguments for and against the referendum, for submitting arguments for and against the referendum, and for submitting rebuttal statements of arguments for and against the referendum.

(5) A county auditor may conduct the voting at this special election in all precincts of the county by mail using the procedures set forth in chapter 29.36 RCW.

(6) Notwithstanding the provisions of RCW 29.62.020, the county canvassing board in each county shall canvass and certify the votes cast at this special election in that county to the secretary of state no later than the seventh day following the election. Notwithstanding the provisions of RCW 29.62.120, the secretary of state shall canvass and certify the returns from the counties no later than the ninth day following the special election.

(7) The secretary of state shall reimburse each county for the cost of conducting the special election in that county in the same manner as state primary and general election costs are reimbursed under RCW 29.13.047 (1) and (3).

NEW SECTION. Sec. 602. Part headings used in this act are not any part of the law.

NEW SECTION. Sec. 603. Sections 201, 202, and 401 of this act take effect October 1, 2002.

NEW SECTION. Sec. 604. Section 601 of this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.