BILL REQ. #:  S-1898.1 

Read first time 02/27/2003.   Referred to Committee on Highways & Transportation.

     AN ACT Relating to the roles and responsibilities of transportation agencies; amending RCW 47.01.041, 47.01.071, 47.01.260, 47.01.081, 47.80.030, 47.80.060, 47.80.070, 47.05.030, 43.88.020, and 43.88.150; reenacting and amending RCW 47.01.101; adding a new section to chapter 47.06 RCW; adding new sections to chapter 43.88 RCW; creating new sections; repealing RCW 47.08.010; providing expiration dates; and declaring an emergency.

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

Sec. 1   RCW 47.01.041 and 1983 1st ex.s. c 53 s 28 are each amended to read as follows:
     The executive head of the department of transportation shall be the secretary of transportation, who shall be appointed by the transportation commission, and shall be paid a salary to be fixed by the governor in accordance with the provisions of RCW 43.03.040. The secretary shall be an ex officio member of the commission without a vote. The secretary shall be the chief executive officer of the commission and be responsible to it, and shall be guided by policies established by it. The secretary shall serve ((until)) at the pleasure of the commission and may be removed by the commission((, but only for incapacity, incompetence, neglect of duty, malfeasance in office, or failure to carry out the commission's policies)). Before a motion for dismissal shall be acted on by the commission, the secretary shall be granted a hearing on formal written charges before the full commission. An action by the commission to remove the secretary shall be final.

Sec. 2   RCW 47.01.071 and 1981 c 59 s 2 are each amended to read as follows:
     The transportation commission shall have the following functions, powers, and duties:
     (1) To propose policies to be adopted by the legislature designed to assure the development and maintenance of a comprehensive and balanced statewide transportation system which will meet the needs of the people of this state for safe and efficient transportation services. Wherever appropriate the policies shall provide for the use of integrated, intermodal transportation systems to implement the social, economic, and environmental policies, goals, and objectives of the people of the state, and especially to conserve nonrenewable natural resources including land and energy. To this end the commission shall:
     (a) Develop transportation policies which are based on the policies, goals, and objectives expressed and inherent in existing state laws, including direction by the legislature as expressed in the omnibus transportation budgets;
     (b) Inventory the adopted policies, goals, and objectives of the local and area-wide governmental bodies of the state and define the role of the state, regional, and local governments in determining transportation policies, in transportation planning, and in implementing the state transportation plan;
     (c) Propose a transportation policy for the state((, and after notice and public hearings, submit the proposal to the legislative transportation committee and the senate and house transportation committees by January 1, 1978, for consideration in the next legislative session)) to be adopted by the legislature;
     (d) Establish a procedure for review and revision of the state transportation policy and for submission of proposed changes to the legislature;
     (e) To integrate the statewide transportation plan with the needs of the elderly and handicapped, and to coordinate federal and state programs directed at assisting local governments to answer such needs;
     (2) To establish the policy of the department to be followed by the secretary on each of the following items:
     (a) To provide for the effective coordination of state transportation planning with national transportation policy, state and local land use policies, and local and regional transportation plans and programs;
     (b) To provide for public involvement in transportation designed to elicit the public's views both with respect to adequate transportation services and appropriate means of minimizing adverse social, economic, environmental, and energy impact of transportation programs;
     (c) To provide for the administration of grants in aid and other financial assistance to counties and municipal corporations for transportation purposes;
     (d) To provide for the management, sale, and lease of property or property rights owned by the department which are not required for transportation purposes;
     (3)(a) To direct the secretary to ((prepare and submit to the commission a comprehensive and balanced statewide transportation plan which shall be based on the transportation policy adopted by the legislature and applicable state and federal laws. After public notice and hearings, the commission shall adopt the plan and submit it to the legislative transportation committee and to the house and senate standing committees on transportation before January 1, 1980, for consideration in the 1980 regular legislative session)) provide to the commission technical research, studies, and a needs analysis for preparation of the statewide transportation plan.
     (b) The plan shall be reviewed and revised prior to each regular session of the legislature during an even-numbered year ((thereafter. A preliminary plan shall be submitted to such committees by January 1, 1979)) for adoption by the legislature under section 3 of this act.
     (c) The plan, including any revisions, shall take into account the state transportation policy adopted by the legislature, including direction by the legislature as expressed in the omnibus transportation budgets, and federal law and regulations relating to the planning, construction, and operation of transportation facilities;
     (4) To propose to the governor and the legislature prior to the convening of each regular session held in an odd-numbered year a recommended budget for the operations of the commission as required by RCW 47.01.061;
     (5) To approve and propose to the governor and to the legislature prior to the convening of each regular session during an odd-numbered year a recommended budget for the operation of the department and for carrying out the program of the department for the ensuing biennium. The proposed budget shall separately state the appropriations to be made from the motor vehicle fund for highway purposes in accordance with constitutional limitations and appropriations and expenditures to be made from the general fund, or accounts thereof, and other available sources for other operations and programs of the department;
     (6) To review and authorize all departmental requests for legislation;
     (7) To approve the issuance and sale of all bonds authorized by the legislature for capital construction of state highways, toll facilities, Columbia Basin county roads (for which reimbursement to the motor vehicle fund has been provided), urban arterial projects, and aviation facilities;
     (8) To adopt such rules, regulations, and policy directives as may be necessary to carry out reasonably and properly those functions expressly vested in the commission by statute;
     (9) To delegate any of its powers to the secretary of transportation whenever it deems it desirable for the efficient administration of the department and consistent with the purposes of this title;
     (10) To review the statewide transportation improvement plan that is developed and submitted by the governor for federal transportation planning purposes. The commission shall make recommendations regarding the plan before submission by the governor, and shall ensure that its recommendations are consistent with the polices stated in the statewide transportation plan as adopted by the legislature; and
     (11) To exercise such other specific powers and duties as may be vested in the transportation commission by this or any other provision of law.

NEW SECTION.  Sec. 3   A new section is added to chapter 47.06 RCW to read as follows:
     The legislature shall adopt the statewide transportation plan under RCW 47.01.071(3), including any revisions to the plan, in order to ensure that it clearly enumerates the state transportation policy.

NEW SECTION.  Sec. 4   (1) The legislative transportation committee and the transportation commission shall establish a joint work group to develop a work plan for the 2003 legislative interim for the purpose of recommending revisions to the statewide transportation plan under RCW 47.01.071. The work group shall at a minimum develop recommendations that:
     (a) Propose changes to chapter 47.06 RCW, regarding statewide transportation planning;
     (b) Propose changes to chapter 47.05 RCW, regarding priority programming for highway development;
     (c) Improve the needs analysis process in RCW 47.05.030;
     (d) Integrate the needs analysis process in RCW 47.05.030 and the benchmark measures of RCW 47.01.012 (section 101, chapter 5, Laws of 2002); and
     (e) Develop guidelines for regional transportation planning organizations to incorporate state policies into long-range transportation plans.
     (2) The work group shall submit its recommendations under this section to the legislature and the governor by December 1, 2003.

Sec. 5   RCW 47.01.260 and 1983 c 29 s 1 are each amended to read as follows:
     (1) The department of transportation, under the direction of the commission pursuant to legislative direction, shall exercise all the powers and perform all the duties necessary, convenient, or incidental to the planning, locating, designing, constructing, improving, repairing, operating, and maintaining state highways, including bridges and other structures, culverts, and drainage facilities and channel changes necessary for the protection of state highways, and shall examine and allow or disallow bills for any work or services performed or materials, equipment, or supplies furnished.
     (2) Subject to the limitations of RCW 4.24.115, the department, in the exercise of any of its powers, may include in any authorized contract a provision for indemnifying the other contracting party against specific loss or damages arising out of the performance of the contract.
     (3) The department is authorized to acquire property as provided by law and to construct and maintain thereon any buildings or structures necessary or convenient for the planning, design, construction, operation, maintenance, and administration of the state highway system and to acquire property and to construct and maintain any buildings, structures, appurtenances, and facilities necessary or convenient to the health and safety and for the accommodation of persons traveling upon state highways.
     (4) The department is authorized to engage in planning surveys and may collect, compile, and analyze statistics and other data relative to existing and future highways and highway needs throughout the state, and shall conduct research, investigations, and testing as it deems necessary to improve the methods of construction and maintenance of highways and bridges.
     (5) The department's authority under this section is subject to the polices adopted by the legislature in the statewide transportation plan and transportation budgets, and the transportation commission's direction provided under RCW 47.01.071.

NEW SECTION.  Sec. 6   The legislative transportation committee shall establish a work group to develop a revised budgeting format for the omnibus transportation budgets adopted by the legislature. The revised format should help improve understanding and communication of legislative policies and priorities, as reflected in the budget document. The work group shall submit its recommendations to the legislative transportation committee by December 1, 2003.

NEW SECTION.  Sec. 7   The legislative transportation committee and the transportation commission shall establish a joint work group to define and designate highways of statewide significance under RCW 47.06.140. The work group shall consider the minimum criteria for designation of highways of statewide significance as provided under RCW 47.05.021(3). The work group shall submit its recommendations to the legislature by December 1, 2003.

Sec. 8   RCW 47.01.081 and 1984 c 48 s 1 are each amended to read as follows:
     (1) Initially the department shall be organized into divisions, including the division of highways, the division of public transportation, the division of aeronautics, the division of marine transportation, and the division of transportation planning and budget.
     (2) The secretary may reorganize divisions in order to attain the maximum possible efficiency in the operation of the department. Each division shall be headed by an assistant secretary to be appointed by the secretary. The secretary may also appoint a deputy secretary as may be needed for the performance of the duties and functions vested in the department and may also appoint up to twelve ferry system management positions as defined in RCW 47.64.011. The secretary may delegate to officers within the several divisions of the department authority to employ personnel necessary to discharge the responsibilities of the department.
     (3) The officers appointed under this section shall be exempt from the provisions of the state civil service law and shall be paid salaries to be fixed by the governor in accordance with the procedure established by law for the fixing of salaries for officers exempt from the operation of the state civil service law.
     (4) The authority under this section regarding the organization of the department is subject to oversight by the transportation commission, and must be approved according to procedures established for this purpose by the legislative transportation committee and the legislative evaluation and accountability program committee.

Sec. 9   RCW 47.01.101 and 1987 c 505 s 48 and 1987 c 179 s 1 are each reenacted and amended to read as follows:
     The secretary shall have the authority and it shall be his or her duty, subject to policy guidance from the commission:
     (1) To serve as chief executive officer of the department with full administrative authority to direct all its activities;
     (2) To organize the department as he or she may deem necessary to carry out the work and responsibilities of the department effectively;
     (3) To designate and establish such transportation district or branch offices as may be necessary or convenient, and to appoint assistants and delegate any powers, duties, and functions to them or any officer or employee of the department as deemed necessary to administer the department efficiently;
     (4) To direct and coordinate the programs of the various divisions of the department to assure that they achieve the greatest possible mutual benefit, produce a balanced overall effort, and eliminate unnecessary duplication of activity;
     (5) To adopt all department rules that are subject to the adoption procedures contained in the state administrative procedure act, except rules subject to adoption by the commission pursuant to statute;
     (6) To maintain and safeguard the official records of the department, including the commission's recorded resolutions and orders;
     (7) To provide full staff support to the commission to assist it in carrying out its functions, powers, and duties and to execute the policy established by the commission pursuant to its legislative authority;
     (8) To execute and implement the biennial operating budget for the operation of the department in accordance with chapter 43.88 RCW and with legislative appropriation and, in such manner as prescribed therein, to make and report to the commission and the chairs of the transportation committees of the senate and house of representatives, including one copy to the staff of each of the committees, deviations from the planned biennial category A and H highway construction programs necessary to adjust to unexpected delays or other unanticipated circumstances.
     (9) To exercise all other powers and perform all other duties as are now or hereafter provided by law.
     (10) The authority under this section regarding the organization of the department is subject to oversight by the transportation commission, and must be approved according to procedures established for this purpose by the legislative transportation committee and the legislative evaluation and accountability program committee.

NEW SECTION.  Sec. 10   The legislative transportation committee and the transportation commission shall establish a joint work group to plan for the implementation in 2005 of the Personnel System Reform Act of 2002 (chapter 354, Laws of 2002), as it relates to transportation agencies. The work group shall submit its recommendations to the legislative transportation committee by December 1, 2004.

Sec. 11   RCW 47.80.030 and 1998 c 171 s 9 are each amended to read as follows:
     (1) Each regional transportation planning organization shall develop, in cooperation with the department of transportation, providers of public transportation and high capacity transportation, ports, and local governments within the region, adopt, and periodically update a regional transportation plan that:
     (a) Conforms to the statewide transportation plan adopted by the legislature;
     (b) Is based on a least cost planning methodology that identifies the most cost-effective facilities, services, and programs;
     (((b))) (c) Identifies existing or planned transportation facilities, services, and programs, including but not limited to major roadways including state highways and regional arterials, transit and nonmotorized services and facilities, multimodal and intermodal facilities, marine ports and airports, railroads, and noncapital programs including transportation demand management that should function as an integrated regional transportation system, giving emphasis to those facilities, services, and programs that exhibit one or more of the following characteristics:
     (i) Crosses member county lines;
     (ii) Is or will be used by a significant number of people who live or work outside the county in which the facility, service, or project is located;
     (iii) Significant impacts are expected to be felt in more than one county;
     (iv) Potentially adverse impacts of the facility, service, program, or project can be better avoided or mitigated through adherence to regional policies;
     (v) Transportation needs addressed by a project have been identified by the regional transportation planning process and the remedy is deemed to have regional significance; and
     (vi) Provides for system continuity;
     (((c))) (d) Establishes level of service standards for state highways and state ferry routes, with the exception of transportation facilities of statewide significance as defined in RCW 47.06.140. These regionally established level of service standards for state highways and state ferries shall be developed jointly with the department of transportation, to encourage consistency across jurisdictions. In establishing level of service standards for state highways and state ferries, consideration shall be given for the necessary balance between providing for the free interjurisdictional movement of people and goods and the needs of local commuters using state facilities;
     (((d))) (e) Includes a financial plan demonstrating how the regional transportation plan can be implemented, indicating resources from public and private sources that are reasonably expected to be made available to carry out the plan, and recommending any innovative financing techniques to finance needed facilities, services, and programs;
     (((e))) (f) Assesses regional development patterns, capital investment and other measures necessary to:
     (i) Ensure the preservation of the existing regional transportation system, including requirements for operational improvements, resurfacing, restoration, and rehabilitation of existing and future major roadways, as well as operations, maintenance, modernization, and rehabilitation of existing and future transit, railroad systems and corridors, and nonmotorized facilities; and
     (ii) Make the most efficient use of existing transportation facilities to relieve vehicular congestion and maximize the mobility of people and goods;
     (((f))) (g) Sets forth a proposed regional transportation approach, including capital investments, service improvements, programs, and transportation demand management measures to guide the development of the integrated, multimodal regional transportation system; and
     (((g))) (h) Where appropriate, sets forth the relationship of high capacity transportation providers and other public transit providers with regard to responsibility for, and the coordination between, services and facilities.
     (2) The organization shall review the regional transportation plan biennially for currency and forward the adopted plan along with documentation of the biennial review to the state department of transportation.
     (3) All transportation projects, programs, and transportation demand management measures within the region that have an impact upon regional facilities or services must be consistent with the plan and with the adopted regional growth and transportation strategies.

Sec. 12   RCW 47.80.060 and 1992 c 101 s 31 are each amended to read as follows:
     In order to qualify for state planning funds available to regional transportation planning organizations, the regional transportation planning organizations containing any county with a population in excess of one million shall provide voting membership on its executive board to the state transportation commission, the state department of transportation, and the three largest public port districts within the region as determined by gross operating revenues. It shall further assure that at least fifty percent of the county and city local elected officials who serve on the executive board also serve on transit agency boards or on a regional transit authority. Transportation commission members shall represent the state policies reflected in the statewide transportation plan adopted by the legislature.

Sec. 13   RCW 47.80.070 and 1994 c 158 s 5 are each amended to read as follows:
     In order to ensure statewide consistency in the regional transportation planning process, the state department of transportation, in conformance with the statewide transportation plan adopted by the legislature and chapter 34.05 RCW, shall:
     (1) In cooperation with regional transportation planning organizations, establish minimum standards for development of a regional transportation plan;
     (2) Facilitate coordination between regional transportation planning organizations; and
     (3) Through the regional transportation planning process, and through state planning efforts as required by RCW 47.01.071, identify and jointly plan improvements and strategies within those corridors important to moving people and goods on a regional or statewide basis.

Sec. 14   RCW 47.05.030 and 2002 c 5 s 402 are each amended to read as follows:
     The transportation commission shall adopt a comprehensive six-year investment program specifying program objectives and performance measures for the preservation and improvement programs defined in this section. In the specification of investment program objectives and performance measures, the transportation commission, in consultation with the Washington state department of transportation, shall define and adopt standards for effective programming and prioritization practices including a needs analysis process. The needs analysis process must ensure the identification of problems and deficiencies, the evaluation of alternative solutions and trade-offs, the identification of unconstrained demand for mobility, and estimations of the costs and benefits of prospective projects. The investment program, including the needs analysis process, must be revised biennially((, effective on July 1st of odd-numbered years)) before each regular session of the legislature during an odd-numbered year. The investment program must be based upon the needs identified in the state-owned highway component of the statewide transportation plan as defined in RCW 47.01.071(3).
     (1) The preservation program consists of those investments necessary to preserve the existing state highway system and to restore existing safety features, giving consideration to lowest life cycle costing. The preservation program must require use of the most cost-effective pavement surfaces, considering:
     (a) Life-cycle cost analysis;
     (b) Traffic volume;
     (c) Subgrade soil conditions;
     (d) Environmental and weather conditions;
     (e) Materials available; and
     (f) Construction factors.
     The comprehensive six-year investment program for preservation must identify projects for two years and an investment plan for the remaining four years.
     (2) The improvement program consists of investments needed to address identified deficiencies on the state highway system to increase mobility, address congestion, and improve safety, support for the economy, and protection of the environment. The six-year investment program for improvements must identify projects for two years and major deficiencies proposed to be addressed in the six-year period giving consideration to relative benefits and life cycle costing. The transportation commission shall give higher priority for correcting identified deficiencies on those facilities classified as facilities of statewide significance as defined in RCW 47.06.140. Project prioritization must be based primarily upon cost-benefit analysis, where appropriate.
     The transportation commission shall approve and present the comprehensive six-year investment program to the legislature in support of the biennial budget request under RCW 44.40.070 and 44.40.080.

Sec. 15   RCW 43.88.020 and 2000 2nd sp.s. c 4 s 11 are each amended to read as follows:
     (1) "Budget" means a proposed plan of expenditures for a given period or purpose and the proposed means for financing these expenditures.
     (2) "Budget document" means a formal statement, either written or provided on any electronic media or both, offered by the governor to the legislature, as provided in RCW 43.88.030.
     (3) "Director of financial management" means the official appointed by the governor to serve at the governor's pleasure and to whom the governor may delegate necessary authority to carry out the governor's duties as provided in this chapter. The director of financial management shall be head of the office of financial management which shall be in the office of the governor.
     (4) "Agency" means and includes every state office, officer, each institution, whether educational, correctional, or other, and every department, division, board, and commission, except as otherwise provided in this chapter.
     (5) "Public funds", for purposes of this chapter, means all moneys, including cash, checks, bills, notes, drafts, stocks, and bonds, whether held in trust, for operating purposes, or for capital purposes, and collected or disbursed under law, whether or not such funds are otherwise subject to legislative appropriation, including funds maintained outside the state treasury.
     (6) "Regulations" means the policies, standards, and requirements, stated in writing, designed to carry out the purposes of this chapter, as issued by the governor or the governor's designated agent, and which shall have the force and effect of law.
     (7) "Ensuing biennium" means the fiscal biennium beginning on July 1st of the same year in which a regular session of the legislature is held during an odd-numbered year pursuant to Article II, section 12 of the Constitution and which biennium next succeeds the current biennium.
     (8) "Dedicated fund" means a fund in the state treasury, or a separate account or fund in the general fund in the state treasury, that by law is dedicated, appropriated, or set aside for a limited object or purpose; but "dedicated fund" does not include a revolving fund or a trust fund.
     (9) "Revolving fund" means a fund in the state treasury, established by law, from which is paid the cost of goods or services furnished to or by a state agency, and which is replenished through charges made for such goods or services or through transfers from other accounts or funds.
     (10) "Trust fund" means a fund in the state treasury in which designated persons or classes of persons have a vested beneficial interest or equitable ownership, or which was created or established by a gift, grant, contribution, devise, or bequest that limits the use of the fund to designated objects or purposes.
     (11) "Administrative expenses" means expenditures for: (a) Salaries, wages, and related costs of personnel and (b) operations and maintenance including but not limited to costs of supplies, materials, services, and equipment.
     (12) "Fiscal year" means the year beginning July 1st and ending the following June 30th.
     (13) "Lapse" means the termination of authority to expend an appropriation.
     (14) "Legislative fiscal committees" means the joint legislative audit and review committee, the legislative evaluation and accountability program committee, the ways and means and transportation committees of the senate and house of representatives, and, where appropriate, the legislative transportation committee.
     (15) "Fiscal period" means the period for which an appropriation is made as specified within the act making the appropriation.
     (16) "Primary budget driver" means the primary determinant of a budget level, other than a price variable, which causes or is associated with the major expenditure of an agency or budget unit within an agency, such as a caseload, enrollment, workload, or population statistic.
     (17) "State tax revenue limit" means the limitation created by chapter 43.135 RCW.
     (18) "General state revenues" means the revenues defined by Article VIII, section 1(c) of the state Constitution.
     (19) "Annual growth rate in real personal income" means the estimated percentage growth in personal income for the state during the current fiscal year, expressed in constant value dollars, as published by the office of financial management or its successor agency.
     (20) "Estimated revenues" means estimates of revenue in the most recent official economic and revenue forecast prepared under RCW 82.33.020, and prepared by the office of financial management for those funds, accounts, and sources for which the office of the economic and revenue forecast council does not prepare an official forecast including estimates of revenues to support financial plans under RCW 44.40.070, that are prepared by the office of financial management in consultation with the transportation revenue forecast council.
     (21) "Estimated receipts" means the estimated receipt of cash in the most recent official economic and revenue forecast prepared under RCW 82.33.020, and prepared by the office of financial management for those funds, accounts, and sources for which the office of the economic and revenue forecast council does not prepare an official forecast.
     (22) "State budgeting, accounting, and reporting system" means a system that gathers, maintains, and communicates fiscal information. The system links fiscal information beginning with development of agency budget requests through adoption of legislative appropriations to tracking actual receipts and expenditures against approved plans.
     (23) "Allotment of appropriation" means the agency's statement of proposed expenditures, the director of financial management's review of that statement, and the placement of the approved statement into the state budgeting, accounting, and reporting system.
     (24) "Statement of proposed expenditures" means a plan prepared by each agency that breaks each appropriation out into monthly detail representing the best estimate of how the appropriation will be expended.
     (25) "Undesignated fund balance (or deficit)" means unreserved and undesignated current assets or other resources available for expenditure over and above any current liabilities which are expected to be incurred by the close of the fiscal period.
     (26) "Internal audit" means an independent appraisal activity within an agency for the review of operations as a service to management, including a systematic examination of accounting and fiscal controls to assure that human and material resources are guarded against waste, loss, or misuse; and that reliable data are gathered, maintained, and fairly disclosed in a written report of the audit findings.
     (27) "Performance verification" means an analysis that (a) verifies the accuracy of data used by state agencies in quantifying intended results and measuring performance toward those results, and (b) verifies whether or not the reported results were achieved.
     (28) "Performance audit" has the same meaning as it is defined in RCW 44.28.005.
     (29) "Transportation budget" means a proposed plan of expenditures for a given period for the purposes of funding the state's expenditures supporting the movement of goods and people as well as the proposed means for financing these expenditures. For the purposes of this chapter the transportation budget includes the major programs of state agencies dealing with transportation activities, including the department of transportation, the Washington state patrol, the department of licensing, the traffic safety commission, the board of pilotage, the transportation improvement board and the country road administration board or successor agencies, and any other programs or agencies as determined by the legislative evaluation and accountability program committee in consultation with the legislative transportation committee.

NEW SECTION.  Sec. 16   INSTRUCTIONS FOR SIX-YEAR TRANSPORTATION PLANS. (1) The director shall provide agencies and committees that are required under section 17 of this act to develop comprehensive six-year programs and financial plans with a complete set of instructions for submitting these program and financial plans at the same time that instructions for submitting other budget requests are provided.
     (2) The governor's budget must outline proposed six-year financial policies, as well as the revenues necessary to support the six-year transportation program and financial plan. In estimating related revenues, the office of financial management shall rely on information and advice from the transportation revenue forecast council.
     (3) Both supplemental and biennial budget documents must reflect a six-year expenditure plan consistent with estimated revenues from existing sources and at existing rates for those agencies required to submit six-year programs and financial plans under section 17 of this act. Any additional revenue resulting from proposed changes to existing statutes must be separately identified within the document as well as related expenditures for the six-year period.

NEW SECTION.  Sec. 17   DEVELOPMENT OF SIX-YEAR TRANSPORTATION PLAN. Before October 1st of each even-numbered year, all state agencies or successor agencies, whose major programs consist of transportation activities, including the department of transportation, the transportation improvement board, the Washington state patrol, the department of licensing, the traffic safety commission, the county road administration board, and the board of pilotage commissioners, shall adopt or revise after consultation with the legislative transportation committee, a comprehensive six-year program and financial plan for all transportation activities under each agency's jurisdiction. The plans must conform with the statewide transportation plan adopted by the legislature and be in the form prescribed by the director of financial management.
     The comprehensive six-year program and financial plan must state the general objectives and needs of each agency's major transportation programs, including workload and performance estimates.

NEW SECTION.  Sec. 18   DETAILS OF TRANSPORTATION AGENCIES' BUDGET REQUESTS. The transportation agencies' biennial budget requests must include details of expenditures, and performance and public service criteria for the transportation programs and activities of each agency in consonance with that agency's adopted six-year comprehensive program and financial plan.

NEW SECTION.  Sec. 19   HIGHWAY ALLOCATIONS. When an allocation for the construction or improvement of state highways is provided, that allocation is under the control of the department of transportation pursuant to directives by the transportation commission.

NEW SECTION.  Sec. 20   AGENCIES THAT COLLECT REVENUE MUST DEVELOP SIX-YEAR PROGRAMS. Those agencies engaged in the collection of revenues under section 17 of this act shall develop six-year programs and financial plans under section 17 of this act. These six-year revenue estimates must be submitted to the director of financial management and the transportation committees of the senate and the house of representatives.
     Each agency engaged in the collection of revenues shall prepare estimated revenues and estimated receipts for the current and ensuing biennium and shall submit the estimates to the director of financial management and the director of revenue at times and in the form specified by the directors, along with any other information that the directors may request.
     A copy of the revenue estimates must be simultaneously submitted to the economic and revenue forecast work group when required by the office of the economic and revenue forecast council.

Sec. 21   RCW 43.88.150 and 1995 c 6 s 1 are each amended to read as follows:
     (1) For those agencies that make expenditures from both appropriated and nonappropriated funds for the same purpose, the governor shall direct such agencies to charge their expenditures in such ratio, as between appropriated and nonappropriated funds, as will conserve appropriated funds. This subsection does not apply to institutions of higher education, as defined in RCW 28B.10.016.
     (2) Unless otherwise provided by law, if state moneys are appropriated for a capital project and matching funds or other contributions are required as a condition of the receipt of the state moneys, the state moneys shall be disbursed in proportion to and only to the extent that the matching funds or other contributions have been received and are available for expenditure.
     (3) The office of financial management shall adopt guidelines for the implementation of this section. The guidelines may account for federal matching requirements or other requirements to spend other moneys in a particular manner.
     (4) This section does not apply to appropriations made in the transportation budget.

NEW SECTION.  Sec. 22   RCW 47.08.010 (Control of allocated funds) and 1984 c 7 s 92 & 1961 c 13 s 47.08.010 are each repealed.

NEW SECTION.  Sec. 23   Sections 16 through 20 of this act are each added to and designated as a subchapter of chapter 43.88 RCW under the subchapter designation "Transportation."

NEW SECTION.  Sec. 24   Captions used in this act are not part of the law.

NEW SECTION.  Sec. 25   Sections 4, 6, and 7 of this act expire on January 1, 2004. Section 10 of this act expires on January 1, 2005.

NEW SECTION.  Sec. 26   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.