BILL REQ. #:  S-0628.5 

Read first time 01/31/2003.   Referred to Committee on Highways & Transportation.

     AN ACT Relating to transportation benefit districts; amending RCW 36.73.020, 36.73.040, 36.73.050, 36.73.060, 36.73.070, 36.73.080, 36.73.100, 36.73.110, 36.73.120, 36.73.130, 36.73.140, and 36.73.150; adding new sections to chapter 36.73 RCW; adding a new section to chapter 82.14 RCW; and adding new sections to chapter 82.80 RCW.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 36.73 RCW to read as follows:
     The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "District" means a transportation benefit district created under this chapter.
     (2) "Entity" means a county, city, town, port district, county transportation authority, or public transportation benefit area, with boundaries outside of a county as defined in this section.
     (3) "City" means a city or town.
     (4) "County" means all counties of the state except a county with a population greater than one million five hundred thousand persons and its adjoining counties with a population greater than five hundred thousand persons.
     (5) "Transportation improvements" means:
     (a) Capital improvements relating to, or in support of, all or a portion of highways that have been designated, in whole or in part, as highways of statewide significance, including associated multimodal capital improvements; or
     (b) Capital improvements to a city street, county road, or existing highway or the creation of a new highway that intersects with a highway of statewide significance, including associated multimodal capital improvements, but only if the cumulative transportation benefit district contribution to all projects constructed under this subsection (5)(b) does not exceed ten percent of the revenues generated by the district.
     However, operations, preservation, and maintenance are excluded from the definition of transportation improvements under this subsection (5).

Sec. 2   RCW 36.73.020 and 1989 c 53 s 1 are each amended to read as follows:
     (1) The legislative authority of a county or other entity as defined in this section may establish ((one or more)) a transportation benefit district((s)) within the ((county)) area as specified in subsection (2) of this section, for the purpose of acquiring, constructing, improving, providing, and funding ((any city street, county road, or state highway)) transportation improvements within the district that ((is (1))) are: (a) Consistent with any existing state, regional, and local transportation plans((, (2))); (b) necessitated by existing or reasonably foreseeable congestion levels attributable to economic growth((, and (3))); and (c) partially funded by local government or private developer contributions, or a combination of ((such)) these contributions. ((Such)) The transportation improvements shall be owned by the county of jurisdiction if located in an unincorporated area, by the city of jurisdiction if located in an incorporated area, by the port district, if it is reasonable under the circumstances to have the port district own the transportation improvement and the improvement is located within the boundaries of the port district, regardless of whether the boundaries of the port district coincide with those of another participating entity, or by the state in cases where the transportation improvement is or becomes a state highway((; and all such)). Transportation improvements shall be administered and maintained as other public streets, roads, and highways. ((The district may not include any area within the corporate limits of a city unless the city legislative authority has agreed to the inclusion pursuant to chapter 39.34 RCW. The agreement shall specify the area and such powers as may be granted to the benefit district.))
     (2) The district may include area within more than one entity if the legislative authority of each participating entity has agreed to the inclusion as provided in an interlocal agreement adopted pursuant to chapter 39.34 RCW. However, the boundaries of the district shall include all territory within the boundaries of the participating entities establishing the district.
     (3) The members of the ((county)) legislative authority proposing to establish the district, acting ex officio and independently, shall ((compose)) constitute the governing body of the district: PROVIDED, That where a ((transportation benefit)) district includes ((any portion of an incorporated city, town, or another county, the district may be governed as provided in an interlocal agreement adopted pursuant to chapter 39.34 RCW)) more than one entity under subsection (2) of this section, the district shall be governed by a governing board composed of at least five members including at least one elected official from each of the participating entities' legislative authorities. The members of the governing board shall be appointed by, and serve at the pleasure of, their respective legislative authorities. The county treasurer shall act as the ex officio treasurer of the district if the county is a member of the district. If the county is not a member of the district, then the treasurer of the entity proposing to establish a district shall serve as the district treasurer, unless an interlocal agreement states otherwise. The electors of the district shall all be registered voters residing within the district. ((For purposes of this section, the term "city" means both cities and towns.))

Sec. 3   RCW 36.73.040 and 1989 c 53 s 3 are each amended to read as follows:
     (1) A transportation benefit district is a quasi-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) A transportation benefit district constitutes a body corporate and possesses all the usual powers of a corporation for public purposes as well as all other powers that may now or hereafter be specifically conferred by statute, including, but not limited to, the authority to hire employees, staff, and services, to enter into contracts, to acquire, hold, and dispose of real and personal property, and to sue and be sued. Public works contract limits applicable to the jurisdiction that established the district ((shall)) apply to the district.
     (3) Subject to the provisions of section 19 of this act, a district is authorized to impose the following taxes, fees, and tolls:
     (a) A sales and use tax in accordance with section 14 of this act;
     (b) A special excise tax on vehicles in accordance with section 15 of this act;
     (c) A vehicle fee in accordance with section 16 of this act;
     (d) An employer excise tax in accordance with section 17 of this act;
     (e) A parking tax in accordance with section 18 of this act; and
     (f) Vehicle tolls on new or reconstructed 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.

Sec. 4   RCW 36.73.050 and 1987 c 327 s 5 are each amended to read as follows:
     (1) ((A city or county)) The legislative ((authority)) authorities proposing to establish a ((transportation benefit)) district, or to modify the boundaries of an existing district, or to dissolve an existing district((,)) shall conduct a hearing at the time and place specified in a notice published at least once, not less than ten days before the hearing, in a newspaper of general circulation within the proposed district. The legislative ((authority)) authorities shall make provision for a district to be automatically dissolved when all indebtedness of the district has been retired and anticipated responsibilities have been satisfied. This notice shall be in addition to any other notice required by law to be published. The notice shall, where applicable, specify the functions or activities proposed to be provided or funded, or the additional functions or activities proposed to be provided or funded, by the district. Additional notice of the hearing may be given by mail, by posting within the proposed district, or in any manner the ((city or county)) legislative ((authority deems)) authorities deem necessary to notify affected persons. All hearings shall be public and the ((city or county)) legislative ((authority)) authorities shall hear objections from any person affected by the formation, modification of the boundaries, or dissolution of the district.
     (2) Following the hearing held pursuant to subsection (1) of this section, the ((city or county)) legislative ((authority)) authorities may establish a ((transportation benefit)) district, modify the boundaries or functions of an existing district, or dissolve an existing district, if the ((city or county)) legislative ((authority finds)) authorities find the action to be in the public interest and ((adopts)) adopt an ordinance providing for the action. The ordinance establishing a district shall specify the functions or activities to be exercised or funded and establish the boundaries of the district. A district shall include only those areas which can reasonably be expected to benefit from improvements to be funded by the district. Functions or activities proposed to be provided or funded by the district may not be expanded beyond those specified in the notice of hearing, unless additional notices are made, further hearings on the expansion are held, and further determinations are made that it is in the public interest to so expand the functions or activities proposed to be provided or funded.
     (((3) At any time before the city or county legislative authority establishes a transportation benefit district pursuant to this section, all further proceedings shall be terminated upon the filing of a verified declaration of termination signed by the owners of real property consisting of at least sixty percent of the assessed valuation in the proposed district.))

Sec. 5   RCW 36.73.060 and 1987 c 327 s 6 are each amended to read as follows:
     (1) A ((transportation benefit)) district may levy an ad valorem property tax in excess of the one percent limitation upon the property within the district for a one-year period whenever authorized by the voters of the district pursuant to RCW 84.52.052 and Article VII, section 2(a) of the state Constitution.
     (2) A district may provide for the retirement of voter-approved general obligation bonds, issued for capital purposes only, by levying bond retirement ad valorem property tax levies in excess of the one percent limitation whenever authorized by the voters of the district pursuant to Article VII, section 2(b) of the state Constitution and RCW 84.52.056.

Sec. 6   RCW 36.73.070 and 1987 c 327 s 7 are each amended to read as follows:
     (1) To carry out the purpose of this chapter, a ((transportation benefit)) district may issue general obligation bonds, not to exceed an amount, together with any other outstanding nonvoter-approved general obligation indebtedness, equal to three-eighths of one percent of the value of taxable property within the district, as the term "value of taxable property" is defined in RCW 39.36.015. A district may additionally issue general obligation bonds for capital purposes only, together with any outstanding general obligation indebtedness, not to exceed an amount equal to one and one-fourth percent of the value of the taxable property within the district, as the term "value of taxable property" is defined in RCW 39.36.015, when authorized by the voters of the district pursuant to Article VIII, section 6 of the state Constitution, and to provide for the retirement thereof by excess property tax levies as provided in RCW 36.73.060(2). The district may submit a single proposition to the voters that, if approved, authorizes both the issuance of the bonds and the bond retirement property tax levies.
     (2) General obligation bonds with a maturity in excess of forty years shall not be issued. The governing body of the ((transportation benefit)) district shall by resolution determine for each general obligation bond issue the amount, date, terms, conditions, denominations, maximum fixed or variable interest rate or rates, maturity or maturities, redemption rights, registration privileges, manner of execution, manner of sale, callable provisions, if any, covenants, and form, including registration as to principal and interest, registration as to principal only, or bearer. Registration may include, but not be limited to: (a) A book entry system of recording the ownership of a bond whether or not physical bonds are issued; or (b) recording the ownership of a bond together with the requirement that the transfer of ownership may only be effected by the surrender of the old bond and either the reissuance of the old bond or the issuance of a new bond to the new owner. Facsimile signatures may be used on the bonds and any coupons. Refunding general obligation bonds may be issued in the same manner as general obligation bonds are issued.
     (3) Whenever general obligation bonds are issued to fund specific projects or enterprises that generate revenues, charges, user fees, or special assessments, the ((transportation benefit)) district ((which issues the bonds)) may specifically pledge all or a portion of the revenues, charges, user fees, or special assessments to refund the general obligation bonds. The district may also pledge any other revenues that may be available to the district.
     (4) The issuance of bonds under this section is subject to the provisions in section 19 of this act.

Sec. 7   RCW 36.73.080 and 1987 c 327 s 8 are each amended to read as follows:
     (1) A ((transportation benefit)) district may form a local improvement district to provide any transportation improvement it has the authority to provide, impose special assessments on all property specially benefited by the transportation improvements, and issue special assessment bonds or revenue bonds to fund the costs of the transportation improvement. Local improvement districts shall be created and assessments shall be made and collected pursuant to chapters 35.43, 35.44, 35.49, 35.50, 35.51, 35.53, and 35.54 RCW.
     (2) The governing body of a ((transportation benefit)) district shall by resolution establish for each special assessment bond issue the amount, date, terms, conditions, denominations, maximum fixed or variable interest rate or rates, maturity or maturities, redemption rights, registration privileges, if any, covenants, and form, including registration as to principal and interest, registration as to principal only, or bearer. Registration may include, but not be limited to: (a) A book entry system of recording the ownership of a bond whether or not physical bonds are issued; or (b) recording the ownership of a bond together with the requirement that the transfer of ownership may only be effected by the surrender of the old bond and either the reissuance of the old bond or the issuance of a new bond to the new owner. Facsimile signatures may be used on the bonds and any coupons. The maximum term of any special assessment bonds shall not exceed thirty years beyond the date of issue. Special assessment bonds issued pursuant to this section shall not be an indebtedness of the ((transportation benefit)) district issuing the bonds, and the interest and principal on the bonds shall only be payable from special assessments made for the improvement for which the bonds were issued and any local improvement guaranty fund that the ((transportation benefit)) district has created. The owner or bearer of a special assessment bond or any interest coupon issued pursuant to this section shall not have any claim against the ((transportation benefit)) district arising from the bond or coupon except for the payment from special assessments made for the improvement for which the bonds were issued and any local improvement guaranty fund the ((transportation benefit)) district has created. The district issuing the special assessment bonds is not liable to the owner or bearer of any special assessment bond or any interest coupon issued pursuant to this section for any loss occurring in the lawful operation of its local improvement guaranty fund. The substance of the limitations included in this subsection (2) shall be plainly printed, written, or engraved on each special assessment bond issued pursuant to this section.
     (3) Assessments shall reflect any credits given by a ((transportation benefit)) district for real property or property right donations made pursuant to RCW 47.14.030.
     (4) The governing body may establish and pay ((moneys)) money into a local improvement guaranty fund to guarantee special assessment bonds issued by the ((transportation benefit)) district.

Sec. 8   RCW 36.73.100 and 1987 c 327 s 10 are each amended to read as follows:
     (1) The proceeds of any bond issued pursuant to RCW 36.73.070 or 36.73.080 may be used to pay costs incurred on ((such)) a bond issue related to the sale and issuance of the bonds. ((Such)) These costs include payments for fiscal and legal expenses, obtaining bond ratings, printing, engraving, advertising, and other similar activities.
     (2) In addition, proceeds of bonds used to fund capital projects may be used to pay the necessary and related engineering, architectural, planning, and inspection costs.

Sec. 9   RCW 36.73.110 and 1987 c 327 s 11 are each amended to read as follows:
     A ((transportation benefit)) district may accept and expend or use gifts, grants, and donations.

Sec. 10   RCW 36.73.120 and 1988 c 179 s 7 are each amended to read as follows:
     (1) ((A transportation benefit)) Subject to the provisions in section 19 of this act, a district may impose a fee or charge on the construction or reconstruction of residential buildings, commercial buildings, industrial buildings, or on any other building or building space or appurtenance ((thereto)), or on the development, subdivision, classification, or reclassification of land only if done in accordance with chapter 39.92 RCW.
     (2) Any fee or charge imposed under this section shall be used exclusively for transportation improvements constructed by a ((transportation benefit)) district. The fees or charges ((so)) imposed must be reasonably necessary as a result of the impact of development, construction, or classification or reclassification of land on identified transportation needs.
     (((3) When fees or charges are imposed by a district within which there is more than one city or both incorporated and unincorporated areas, the legislative authority for each city in the district and the county legislative authority for the unincorporated area must approve the imposition of such fees or charges before they take effect.))

Sec. 11   RCW 36.73.130 and 1987 c 327 s 13 are each amended to read as follows:
     A ((transportation benefit)) district may exercise the power of eminent domain to obtain property for its authorized purposes in the same manner as authorized for the ((city or county)) legislative authority of the entity that established the district.

Sec. 12   RCW 36.73.140 and 1987 c 327 s 14 are each amended to read as follows:
     A ((transportation benefit)) district has the same powers as a county or city to contract for street, road, or state highway improvement projects and to enter into reimbursement contracts provided for in chapter 35.72 RCW.

Sec. 13   RCW 36.73.150 and 1987 c 327 s 15 are each amended to read as follows:
     The department of transportation, counties, ((and)) cities, and other jurisdictions may give funds to ((transportation benefit)) districts for the purposes of financing ((street, road, or highway)) transportation improvement projects.

NEW SECTION.  Sec. 14   A new section is added to chapter 82.14 RCW to read as follows:
     (1) Subject to the provisions in section 19 of this act, a transportation benefit district under chapter 36.73 RCW may fix and impose a sales and use tax in accordance with the terms of this chapter. The tax authorized in this section is in addition to any other taxes authorized by law and shall be collected from those persons who are taxable by the state under chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event within the boundaries of the district. The rate of tax shall not exceed five-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.
     (2) Money received from the tax imposed under this section must be spent in accordance with the requirements of chapter 36.73 RCW.

NEW SECTION.  Sec. 15   A new section is added to chapter 82.80 RCW to read as follows:
     (1) Subject to the provisions of section 19 of this act, a transportation benefit district under chapter 36.73 RCW has the power to levy and collect a special excise tax not exceeding three-tenths of one percent on the value of every motor vehicle, from registered owners whose primary place of domicile is within the boundaries of the district, for the privilege of using a motor vehicle.
     (2) The department of licensing will administer and collect the tax. The department will 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 will be remitted to the custody of the state treasurer for monthly distribution to the district.
     (3) The district will delay the effective date at least six months from the date the tax is approved by the district to allow the department of licensing adequate time to implement procedures to administer and collect the tax.
     (4) "Registered owner" has the same meaning as provided in chapter 46.04 RCW.

NEW SECTION.  Sec. 16   A new section is added to chapter 82.80 RCW to read as follows:
     (1) Subject to the provisions of section 19 of this act, a transportation benefit district has the power to fix and impose a fee, not to exceed one hundred dollars per vehicle, for each vehicle subject to license tab fees under RCW 46.16.0621 and for each vehicle subject to gross weight fees under RCW 46.16.070 with an unladen weight of six thousand pounds or less from registered owners whose primary place of domicile is within the boundaries of the district.
     (2) The department of licensing will administer and collect the fee. The department will deduct a percentage amount, as provided by contract, not to exceed two percent of the fees collected, for administration and collection expenses incurred by it. The remaining proceeds will be remitted to the custody of the state treasurer for monthly distribution to the district.
     (3) The district imposing this fee will delay the effective date at least six months from the date the fee is approved by the district to allow the department of licensing adequate time to implement procedures to administer and collect the fee.
     (4) "Registered owner" has the same meaning as provided in chapter 46.04 RCW.

NEW SECTION.  Sec. 17   A new section is added to chapter 82.80 RCW to read as follows:
     (1)(a) Subject to the provisions of section 19 of this act, a transportation benefit district under chapter 36.73 RCW may 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 district 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.
     (b) Transportation benefit districts 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) A transportation benefit district shall adopt rules that exempt from all or a portion of the tax any employer that has entered into an agreement with the district 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.
     (b) 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 district that the employer is fulfilling the terms of the agreement. The exemption continues as long as the employer is in compliance with the agreement.

NEW SECTION.  Sec. 18   A new section is added to chapter 82.80 RCW to read as follows:
     (1) Subject to the conditions of this section and section 19 of this act, a transportation benefit district under chapter 36.73 RCW may fix and impose a parking tax on all persons engaged in a commercial parking business within its respective jurisdiction.
     (2) In lieu of the tax in subsection (1) of this section, a transportation benefit district may fix and impose, subject to the provisions of section 19 of this act, a tax for the act or privilege of parking a motor vehicle in a facility operated by a commercial parking business.
     The district 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;
     (c) The tax is collected by the operator of the facility and remitted to the district;
     (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 transportation benefit district 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. The district 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 parking tax imposed by a district must be used as provided in chapter 36.73 RCW.

NEW SECTION.  Sec. 19   A new section is added to chapter 36.73 RCW to read as follows:
     (1) Taxes, fees, and tolls may not be imposed, nor may any debt be incurred, by a district without either: (a) Approval from the legislative authorities of each entity belonging to the district; or (b) approval from the voters within the boundaries of the district as provided in subsection (2) of this section.
     (2) The district may certify the revenue options under subsection (1) of this section to the ballot, specifically identifying the tax options necessary to fund the transportation projects proposed by the district. The district shall draft a ballot title, give notice as required by law for ballot measures, and perform other duties as required to put the plan before the voters of the district for their approval or rejection as a single ballot measure. The electorate will be the registered voters residing within the boundaries of the district. A simple majority of the total persons voting on the single ballot measure to approve the revenue plan is required for approval.