Sponsors: By House Committee on Transportation (originally sponsored by Representative Murray; by request of Governor Locke).

Brief Summary of Engrossed Substitute Bill

• Adjusts the 2001-03 biennial transportation appropriations through a 2003 supplemental transportation budget for agencies with transportation related activities.

• Provides 2003-05 biennial transportation appropriations to agencies with transportation related activities

Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. Signed by 19 members: Representatives Murray, Chair; Rockefeller, Vice Chair; Simpson, Vice Chair; Jarrett, Assistant Ranking Minority Member; Campbell, Clibborn, Cooper, Dickerson, Flannigan, Hankins, Hatfield, Hudgins, Lovick, Morris, Romero, Sullivan, Wallace, Wood and Woods.

Minority Report: Do not pass. Signed by 7 members: Representatives Ericksen, Ranking Minority Member; Anderson, Armstrong, Bailey, Kristiansen, Nixon and Shabro.

The transportation budget provides appropriations to the major transportation agencies including: the Department of Transportation (DOT); the Washington State Patrol (WSP); the Department of Licensing (DOL); the Traffic Safety Commission, the Transportation Improvement Board, the County Road Administration Board, and the Freight Mobility Strategic Investment Board. The budget also provides appropriations out of transportation funds to many smaller agencies with transportation functions.

Provides appropriations for the 2003 supplemental transportation budget and the 2003-05 biennial transportation budget.

• $5.626 million is provided for increased for indemnity and tort defense with biennium to date spending and actuarial supported projections.

• $1.938 million is provided for increased ferry fuel costs and increased insurance premiums.

• Adjustments of ($1.056) million were included for deferred DOT projects, WSP federal unanticipated revenue, budget reductions and maintenance level adjustments for DOT, WSP and DOL.

• Bond retirement and interest was reduced ($16.830) million for reduction in interest rates.

• The Transportation Improvement Board, the County Road Arterial Board and Freight Mobility Strategic Investment Board remain as separate agencies.

• The 2003-05 appropriations includes existing revenues, new revenues and re-appropriations of $742 million of which $613 million is for the Tacoma Narrows Bridge.

• $315 million is provided for the operation of the ferry system. The budget maintains passenger only service to Vashon and temporary service to Bremerton. The budget maintains existing auto ferry routes.

• $428 million is provided for traffic operations, information technology, transportation planning, data and research, management, and other support costs associated with the operation of the agency.

• $661 million is provided for highway preservation, $183 million for ferry capital, and $1.597 billion for highway improvements of which $613 million is the Tacoma Narrows Bridge.

• $29 million is provided for traffic operations capital, $46 million for rail capital, $17 million for plant construction and $44 million for local capital needs.

• $288 million is provided for capital projects through the Transportation Improvement Board and the County Road Administration Board.

• $251 million is provided for operations and capital for the Washington State Patrol.

• $21 million is provided for the operations of the Traffic Safety Commission.

• $20 million is provided for the operations of agencies with transportation related activities for the State's share of the net increase in medical and pension rates.

• $352 million is provided for debt payments (principle and interest) on bonds.

ESHB 2231 provides new revenue and the revenue is assumed to implement the 2003-05 appropriations.

• The transportation 2003 account is created in the Motor Vehicle Fund. Money in the account may only be spent on projects identified as Transportation 2003 projects and the debt service on the bonds sold to fund the projects. Once the projects have been completed, moneys in the account can only be spent on the debt service to pay off the bonds, and if there are additional funds in the account, they may be spent on maintenance of the transportation 2003 projects.

• Beginning July 1, 2003, the state gas tax and special fuel tax are increased by 5 cents per gallon. All of the revenue generated by the increase is deposited into the Transportation 2003 Account. The increase in the gas tax expires when the bonds sold to pay for the Transportation 2003 projects are retired.

• Beginning August 1, 2003, the gross weight portion of the combined licensing fee paid by trucks, tractors, and buses is increased by 15 percent for vehicles over 10,000 pounds. The proceeds from the increased percentage be deposited in the Transportation 2003 account.

• Beginning July 1, 2003, the sales and use tax applicable to motor vehicles is increased by three tenths of 1 percent. The revenues collected from the increase in the tax on motor vehicles must be deposited in the Multimodal Transportation Account. Farm tractors, farm vehicles, off road and nonhighway vehicles and snowmobiles are not included.

• The rate at which refund distributions are calculated for off-road vehicles, snowmobiles, marine usage is increased by one cent in each of the next five bienniums.

• By November 1, 2003, Department of Licensing must offer the option to retain license plate numbers at the time fo replacement for $20. Department of licensing must offer special license plate design services for a fee of $1,500 and then $500 for each rendition there after. If House Bill 2065 becomes law by June 30, 2003, this portion of ESHB 2231 regarding licenses plates becomes null and void.

Effective Date: The bill contains an emergency clause and takes effect immediately.

Testimony For: The package is very well balanced but a 3 cent gas tax is not enough, a higher gas tax is needed. Keep the Freight Mobility Strategic Investment Board as a separate agency.

Testified: (In support) Representative Murray, prime sponsor; Scott Merriman, Association of Counties; Randy Ray, Puget Sound Steamship Operators Association; Jim Shipman, Washington Transit Association; Gordon Baxter, Masters, Mates and Pilots, Marine Engineers, and Inland Boatmens Union; Lloyd Flenn, Washington Association of Rail Passengers; Paula Hammond, Department of Transportation; Jackie White, Association of Cities; Doug Levy, Cities of Everett and Kent; Stephanie Bowman, Greater Seattle Chamber of Commerce; Cherie Tessier, Arc of Washington; Johnathan Platt, Martinac Shipbuilding; Genesee Adkins, 1000 Friends of Washington; Bill Stauffacher, Burlington Northern Santa Fe Railroad; and Kevin Shively, Transportation Choices Coalition.

(With concerns) Pat Jones, Washington Public Ports Association; and Mary Jo Cady, Community Transportation Association of the Northwest.