BILL REQ. #:  S-2131.3 

READ FIRST TIME 03/05/03.   

     AN ACT Relating to regional transit authorities; amending RCW 81.112.020, 81.112.050, 81.112.070, and 81.112.130; creating a new section; and declaring an emergency.

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

Sec. 1   RCW 81.112.020 and 1999 c 20 s 2 are each amended to read as follows:
     Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
     (1) "Authority" means a regional transit authority authorized under this chapter.
     (2) "Board" means the board of a regional transit authority.
     (3) "Service area" or "area" means the area included within the boundaries of a regional transit authority.
     (4) "System" means a regional transit system authorized under this chapter and under the jurisdiction of a regional transit authority.
     (5) "Facilities" means any lands, interest in land, air rights over lands, and improvements thereto including vessel terminals, and any equipment, vehicles, vessels, and other components necessary to support the system.
     (6) "Proof of payment" means evidence of fare prepayment authorized by a regional transit authority for the use of trains, including but not limited to commuter trains and light rail trains.
     (7) "Subarea" means one of the five areas within an authority's boundaries as identified in an authority's system plan adopted in May 1996.

Sec. 2   RCW 81.112.050 and 1998 c 192 s 1 are each amended to read as follows:
     (1) At the time of formation, the area to be included within the boundary of the authority shall be that area set forth in the system plan adopted by the joint regional policy committee. Prior to submitting the system and financing plan to the voters, the authority may make adjustments to the boundaries as deemed appropriate but must assure that, to the extent possible, the boundaries: (a) Include the largest-population urban growth area designated by each county under chapter 36.70A RCW; and (b) follow election precinct boundaries. If a portion of any city is determined to be within the service area, the entire city must be included within the boundaries of the authority.
     (2) After voters within the authority boundaries have approved the system and financing plan, elections to add areas contiguous to the authority boundaries may be called by resolution of the regional transit authority, after consultation with affected transit agencies and with the concurrence of the legislative authority of the city or town if the area is incorporated, or with the concurrence of the county legislative authority if the area is unincorporated. Only those areas that would benefit from the services provided by the authority may be included and services or projects proposed for the area must be consistent with the regional transportation plan. The election may include a single ballot proposition providing for annexation to the authority boundaries and imposition of the taxes at rates already imposed within the authority boundaries.
     (3) ((Upon receipt of a resolution requesting exclusion from the boundaries of the authority from a city whose municipal boundaries cross the boundaries of an authority and thereby result in only a portion of the city being subject to local option taxes imposed by the authority under chapters 81.104 and 81.112 RCW in order to implement a high-capacity transit plan, and where the vote to approve the city's incorporation occurred simultaneously with an election approving the local option taxes, then upon a two-thirds majority vote of the governing board of the authority, the governing board shall redraw the boundaries of the authority to exclude that portion of the city that is located within the authority's boundaries, and the excluded area is no longer subject to local option taxes imposed by the authority. This subsection expires December 31, 1998.)) For financing and project purposes, any area annexed by an authority must be included in the most appropriate subarea.

Sec. 3   RCW 81.112.070 and 1992 c 101 s 7 are each amended to read as follows:
     (1) In addition to the powers specifically granted by this chapter an authority shall have all powers necessary to implement a high capacity transportation system and to develop revenues for system support. An authority may contract with the United States or any agency thereof, any state or agency thereof, any public transportation benefit area, any county, county transportation authority, city, metropolitan municipal corporation, special district, or governmental agency, within or without the state, and any private person, firm, or corporation for: (((1))) (a) The purpose of receiving gifts or grants or securing loans or advances for preliminary planning and feasibility studies; (((2))) (b) the design, construction, or operation of high capacity transportation system facilities; or (((3))) (c) the provision or receipt of services, facilities, or property rights to provide revenues for the system. An authority shall have the power to contract pursuant to RCW 39.33.050. In addition, an authority may contract with any governmental agency or with any private person, firm, or corporation for the use by either contracting party of all or any part of the facilities, structures, lands, interests in lands, air rights over lands and rights of way of all kinds which are owned, leased, or held by the other party and for the purpose of planning, constructing, or operating any facility or performing any service that the authority may be authorized to operate or perform, on such terms as may be agreed upon by the contracting parties. Before any contract for the lease or operation of any authority facilities is let to any private person, firm, or corporation, a general schedule of rental rates for equipment with or without operators applicable to all private certificated carriers shall be publicly posted, and for other facilities competitive bids shall first be called upon such notice, bidder qualifications, and bid conditions as the board shall determine. This shall allow use of negotiated procurements.
     (2) The board shall adopt policies that require the authority to allocate the expenditure of tax revenues proportionately to the subareas based on the amount of tax revenues each subarea generates. The tax revenue allocated to a subarea may be used only to finance costs incurred for projects within that subarea. The board shall adopt policies that establish a fair and equitable method for determining pro rata share of costs for projects that overlap subarea boundaries.

Sec. 4   RCW 81.112.130 and 1992 c 101 s 13 are each amended to read as follows:
     (1) Notwithstanding RCW 39.36.020(1), an authority may at any time contract indebtedness or borrow money for authority purposes and may issue general obligation bonds in an amount not exceeding, together with any existing indebtedness of the authority not authorized by the voters, one and one-half percent of the value of the taxable property within the boundaries of the authority; and with the assent of three-fifths of the voters therein voting at an election called for that purpose, may contract indebtedness or borrow money for authority purposes and may issue general obligation bonds therefor, provided the total indebtedness of the authority shall not exceed five percent of the value of the taxable property therein. Such bonds shall be issued and sold in accordance with chapter 39.46 RCW.
     (2)(a) As part of the bond financing plan for bonds issued after the effective date of this act, an authority shall ensure that tax revenues from a subarea are sufficient to meet the principal and interest payments on bond proceeds that support projects within that subarea, and indicate how the proceeds from the issuance of general obligation bonds will be expended within the subareas.
     (b) An authority shall conduct a public hearing at least thirty days in advance of authorizing the issuance of general obligation bonds or other certificates of indebtedness, during which time objections may be raised. However, nothing in this subsection (2)(b) prohibits the filing, at any time, of a cause of action concerning the issuance of the bonds.
     (c) An authority shall maintain separate accounts for the deposit of bond proceeds that are to be used in the subareas and to receive revenues for principal and interest payments on the bonds.
     (d) The principal and interest on the bonds must be first payable proportionately from the revenues of the subareas based upon the respective pro rata share of expenditures made from the bond proceeds.
     (3) The term "value of the taxable property" shall have the meaning set forth in RCW 39.36.015.

NEW SECTION.  Sec. 5   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.

NEW SECTION.  Sec. 6   This act is remedial in nature and applies to all regional transit authorities established before or after the effective date of this act.

NEW SECTION.  Sec. 7   If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.