READ FIRST TIME 03/07/05.   

     AN ACT Relating to authorizing the financing of regional transportation improvements by counties; amending RCW 81.104.140, 81.100.030, 81.100.060, 81.100.080, 82.14.430, 82.80.005, 82.80.010, 82.80.030, 82.80.070, 82.80.080, 82.80.100, 47.56.075, and 47.56.076; adding a new section to chapter 47.80 RCW; adding a new section to chapter 82.80 RCW; adding a new section to chapter 47.56 RCW; adding a new chapter to Title 36 RCW; creating new sections; and repealing RCW 36.120.010, 36.120.020, 36.120.030, 36.120.040, 36.120.050, 36.120.060, 36.120.070, 36.120.080, 36.120.090, 36.120.100, 36.120.110, 36.120.120, 36.120.130, 36.120.140, 36.120.150, 36.120.160, 36.120.170, 36.120.180, 36.120.190, 36.120.200, 36.120.900, 36.120.901, 82.80.110, and 82.80.120.

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

NEW SECTION.  Sec. 101   FINDINGS. The legislature finds that:
     (1) The capacity of many of Washington state's transportation facilities have failed to keep up with the state's growth, particularly in major urban regions;
     (2) The state cannot by itself fund, in a timely way, many of the major capacity and other improvements required on highways of statewide significance in the state's largest urbanized area;
     (3) Providing a transportation system that provides efficient mobility for persons and freight requires a shared partnership and responsibility between the state, local, and regional governments and the private sector;
     (4) Timely and strategic construction and development of significant transportation improvement projects can best be achieved through enhanced funding options for the state and regional and county governments, using already existing tax authority together with innovative funding approaches to address critical transportation needs and to provide authority for the state, regions, and counties to address transportation projects of regional and statewide significance;
     (5) Improved mobility also requires that we maximize the efficiency of the current transportation system and that expansion of our system be done in a strategic manner and as dictated by market forces and that a plan that provides flexibility for investments and operational enhancements financed largely without debt will best address these needs; and
     (6) The development of transportation improvements will require both state, and regional and local efforts. This chapter is intended to enhance this partnership, and not to replace the need for resources to be provided by the state.

NEW SECTION.  Sec. 102   DEFINITIONS. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Corridor equity" means the relative performance of transportation corridors within the regional transportation improvement authority's boundaries. For performance to be equitable, the performance of any corridor must be similar to other corridors within the authority, and cannot be disproportionately degraded by transportation improvement projects.
     (2) "High-priority project" means the restoration, reconstruction, or improvement of a transportation facility of statewide or regional significance that has failed or is an identified risk for failure in terms of its design life expectancy or other factors.
     (3) "Lead agency" means a public agency designated by an authority to plan, design, build, and operate a project.
     (4) "Optimizing transportation system performance" or "optimizing performance" means the systematic management and improvement of transportation facilities, including service enhancements, the objective of which is meeting the diverse mobility needs of users of the transportation system.
     (5) "Transportation improvement projects" or "projects" means projects contained in the transportation plan of the state or a regional transportation planning organization that are of statewide or regional significance. Projects may include investment in new or existing highways of statewide significance, principal arterials of regional significance, high-capacity transportation, public transportation, and other transportation projects and programs of regional or statewide significance including transportation demand management. Projects may also include the operation, preservation, and maintenance of these facilities or programs.
     (6) "Regional transportation improvement authority" or "authority" means a municipal corporation whose boundaries are coextensive, to the extent deemed appropriate by the authority, with the urban growth boundaries of two or more contiguous counties, or an authority whose boundaries are contiguous with the boundaries of a single county, and that has been created by county legislative authorities by adoption of ordinances, or in the case of a single-county authority, a county legislative authority and a vote of the people under this chapter to implement a transportation improvement plan.
     (7) "Regional transportation improvement authority board" or "board" means the board created under section 104 of this act to adopt and propose to county legislative authorities a regional transportation improvement plan to develop, finance, and construct transportation projects.
     (8) "Regional transportation improvement plan" or "plan" means a plan to develop, construct, and finance a transportation project or projects.
     (9) "Regional transportation planning organization" means that organization as defined in chapter 47.80 RCW.

NEW SECTION.  Sec. 103   RTPO PLANNING DUTIES. (1) A county or group of counties choosing to implement a plan under this chapter shall request that a regional transportation planning organization, of which it or they are a member, develop a recommended prioritized list of projects to be included in a regional transportation improvement plan. The organization must adopt the prioritized list of projects within ninety days of the request and submit it to the requesting county or counties.
     (2) In developing a prioritized list of projects for the plan the organization shall:
     (a) Consider regional transportation needs, including high-priority transportation projects;
     (b) Provide for improvements in safety and mobility based on addressing transportation improvement projects;
     (c) Recommend the appropriate mix of transportation investment choices to address the mobility needs of the region, based on the criteria set forth in section 105(4) of this act;
     (d) Address geographic and corridor equity and land use planning;
     (e) Coordinate its activities with the department of transportation, which shall provide services, data, and personnel to assist in this planning as desired by the organization; and
     (f) Coordinate with local government entities within the boundaries of the requesting county or group of counties that engage in transportation planning and providing transportation services.

NEW SECTION.  Sec. 104   AUTHORITY FORMATION. (1) A county with a population over one million five hundred thousand persons together with any adjoining counties with a population over five hundred thousand persons may create, by adoption of an ordinance of the county legislative authorities, a regional transportation improvement authority.
     (a) The boundaries of the authority must be, to the extent deemed appropriate, the area within the urban growth areas within each county. However, any portion of a county that is located on a peninsula may not be part of a regional transportation improvement authority plan in which more than one county is included, until a plan has been approved under section 107 of this act, if the portion of the county located on the peninsula is connected to the other portion of the county by a bridge improved under the Public-Private Transportation Initiatives Act, chapter 47.46 RCW, and the county has a national park and a population of more than five hundred thousand persons, but less than one million five hundred thousand persons.
     After voters within the authority boundaries have approved a plan under section 107 of this act, elections to add areas to the authority boundaries may be called by the resolution of the authority, after consultation with the regional transportation planning organization and 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. The election may include a single ballot measure providing annexation to the authority, approval of the plan, and approval of revenue sources necessary to finance the plan. This option for annexation applies to areas within the counties initially establishing an authority and also to areas within a county having a population over two hundred thirty thousand persons and whose boundaries abut three counties eligible to form an authority under this subsection.
     (b) The governing board consists of the members of the county legislative authorities whose districts are wholly or partially within the authority boundaries and the county executive of each county within the authority, with all members acting ex officio and independently. Councilmembers have weighted votes based on the population of their council districts within the authority boundaries relative to the total population of the authority. The executive of each county has a weighted vote equivalent to the vote of the councilmember from the same county of the executive, having the most heavily weighted vote. A representative from the city having the greatest population in each county and any other city within the authority that has a population greater than one hundred ten thousand persons are nonvoting members of the board. The executive of any county with a population over one million five hundred thousand persons shall also designate a city, with a population over fifty thousand persons, whose representative shall serve as a nonvoting member of the board and who shall represent the geographic diversity of the county. The secretary of transportation, or the appropriate regional administrator of the department, as named by the secretary, shall serve on the authority as a nonvoting member.
     (2) A county with a population over one million five hundred thousand persons or a county having a population over five hundred thousand persons adjoining a county with a population over one million five hundred thousand persons, and a county having a population over two hundred thirty thousand persons and whose boundaries abut three counties eligible to form an authority under this chapter, may create, by adoption of an ordinance of the county legislative authority, a regional transportation improvement authority.
     (a) The boundaries of the authority must be contiguous with the boundaries of the county.
     (b) The governing board consists of the members of the county legislative authority with all members acting ex officio and independently. The secretary of transportation, or the appropriate regional administrator of the department, as named by the secretary, shall serve on the authority as a nonvoting member.
     (3) The members of the authority under this chapter will receive no compensation for serving on the board, but may be reimbursed for travel and incidental expenses as the authority deems appropriate.
     (4) A regional transportation improvement authority may be entitled to state funding, as appropriated by the legislature, for start-up funding to pay for expenses incurred by the authority and through contracts with the regional transportation planning organization in selecting transportation projects under this chapter. Upon voter approval of a regional transportation improvement authority plan and revenue sources under section 106 of this act, the authority shall within one year reimburse the state for any sums advanced for these start-up costs from the state.
     (5) The board shall conduct its affairs and formulate, with assistance from the appropriate regional transportation planning organization, a regional transportation improvement plan as provided under section 105 of this act.
     (6) A regional transportation improvement authority may elect officers and provide for the adoption of rules and other operating procedures.
     (7) Governance of and decisions by a regional transportation improvement authority must be by a sixty percent weighted majority vote of the board membership.
     (8) The authority may dissolve itself at any time by a two-thirds weighted majority vote of the board membership.

NEW SECTION.  Sec. 105   AUTHORITY DUTIES. (1) A regional transportation improvement authority board shall adopt a regional transportation improvement plan providing for the development, construction, and financing of transportation projects. The board shall use the prioritized list of projects provided to it by the regional transportation planning organization under section 103 of this act. In collaboration with the regional transportation planning organization, it may modify the list of projects to better meet the criteria defined in subsection (4) of this section.
     (2) The board may coordinate its activities with the regional transportation planning organization, which shall provide services, data, and personnel to assist in this planning as requested by the board. In addition, the board may coordinate with the department of transportation and affected cities, towns, and other local governments that engage in transportation planning.
     (3) The board shall:
     (a) Conduct public meetings that are needed to assure active public participation in the development of the plan;
     (b) Adopt a plan as described in subsection (1) of this section:
     (i) Ratifying the creation of the regional transportation improvement authority;
     (ii) Identifying transportation improvement projects to be funded;
     (iii) Recommending sources of revenue authorized by section 106 of this act and a financing plan to fund the transportation projects in the plan. The overall plan of the authority must leverage the authority's financial contributions so that in combination with federal, state, local, and other revenue sources, the plan is funded. The plan may include provisions for delaying the imposition of regional taxes and fees, or delay of projects identified in the plan, pending the financial participation of other parties or alternative financing techniques necessary to accomplish the plan. The plan must include provisions for adjusting the plan as needed to improve operations of the transportation network in the region.
     (4) The authority shall develop a plan including policies for investment, operations, and the performance of the regional transportation network using the following criteria for selecting transportation improvement projects to improve transportation system performance:
     (a) Reduced risk of transportation facility failure and improved safety;
     (b) Improved travel time;
     (c) Improved air quality;
     (d) Increases in daily and peak period trip capacity;
     (e) Improved modal connectivity;
     (f) Improved freight mobility;
     (g) Cost-effectiveness of the investment;
     (h) Optimal performance of the system through time; and
     (i) Other criteria, as adopted by the board with a sixty-percent majority of weighted votes.
     (5) Before adopting the plan, the authority, with assistance from the department and other lead agencies, shall work with the lead agency to develop accurate cost estimates for transportation projects. This project costing methodology must be integrated with revenue forecasts in developing the financial plan and must at a minimum include estimated project costs in current dollars as well as year of expenditure dollars, the range of project costs reflected by the level of project design, project contingencies, identification of mitigation costs, the range of revenue forecasts, and project and plan cash flow and bond analysis. The plan must provide cost estimates for each project, including contingency costs. Plans must provide that the maximum amount possible of the funds raised will be used to fund projects in the plan, including environmental improvements and mitigation, and that administrative costs be minimized. If actual revenue exceeds actual plan costs, the excess revenues must be used to retire any outstanding debt associated with the plan.
     (6) The authority shall transmit the plan to the county legislative authority or authorities, which shall act within ninety days to adopt or not adopt the plan. In the case of a multicounty authority, if a county by ordinance with its county legislative authority opts not to adopt the plan or participate in the regional transportation improvement authority, but one or more contiguous counties do choose to continue to participate, then the authority may, within ninety days, redefine the regional transportation improvement plan and the ballot measure to be submitted to the people to reflect elimination of the county, and submit the redefined plan to the legislative authorities of the remaining counties for their decision as to whether to continue to adopt the redefined plan and participate. This action must be completed within sixty days after receipt of the redefined plan.
     (7) Once adopted, the plan must be forwarded to the participating county legislative authorities or authority to initiate, through adoption of an ordinance, the election process under section 107 of this act. The authority shall at the same time provide notice to each city and town within the authority, the governor, the chairs and ranking members of the transportation committees of the legislature, the secretary of transportation, and each legislator whose legislative district is partially or wholly within the boundaries of the authority.
     (8) If the ballot measure is not approved, the board may redefine the selected transportation projects, financing plan, and the ballot measure as determined by the county legislative authority or authorities. The county legislative authorities or authority may approve the new plan and ballot measure, and may then submit the revised proposition to the voters at the next election or a special election.

NEW SECTION.  Sec. 106   TAXES, FEES, AND TOLLS. (1) A regional transportation improvement authority planning committee may, as part of a regional transportation improvement plan, recommend the imposition of some or all of the following revenue sources, which a regional transportation improvement authority may impose as provided in this chapter:
     (a) A regional sales and use tax, as specified in RCW 82.14.430, of up to 0.2 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, upon the occurrence of any taxable event in the regional transportation improvement authority. This tax is intended to be temporary in nature to supplement authority revenues until implementation of some or all of the network value pricing system authorized in this section. This tax may not be imposed without an affirmative vote of the majority of the voters within the boundaries of the authority voting on a ballot proposition and may not authorize imposition of this tax for a period of longer than ten years. This tax may be extended for a period not exceeding ten years with an affirmative vote of the voters.
     (b) A local option vehicle license fee, as specified under RCW 82.80.100, of up to one hundred dollars per vehicle registered in the authority. As used in this subsection, "vehicle" means motor vehicle as defined in RCW 46.04.320. Certain classes of vehicles, as defined under chapter 46.04 RCW, may be exempted from this fee;
     (c) A local motor vehicle excise tax under RCW 81.100.060; and
     (d) A value pricing assessment of charges for users of transportation facilities as set forth in section 314 of this act and meeting the following conditions:
     (i) With the approval of the transportation commission, or its successor, vehicle tolls may be imposed on a local or regional arterial or state or federal highway within the boundaries of the authority.
     (ii) The plan must identify the facilities that may be tolled.
     (iii) Unless otherwise specified by law or contract, the department shall administer the collection of vehicle tolls on designated facilities, and the state transportation commission, or its successor, shall be the tolling authority.
     (2) Revenues from these taxes and fees may be used only to implement the plan as set forth in this chapter. Taxes, fees, and the authority to impose tolls may not be imposed without an affirmative vote of the majority of voters within the boundaries of the authority voting on a ballot proposition as set forth in section 107 of this act. An authority may contract with the state department of revenue or other appropriate entities for administration and collection of any of the taxes or fees authorized in this section. In authorizing these revenue sources, it is the intent of the legislature to provide a range of options that can be tailored to meet the transportation financing needs and to improve operating efficiency of transportation facilities.

NEW SECTION.  Sec. 107   PLAN ADOPTION. Two or more contiguous county legislative authorities under section 104(1) of this act and a county or county legislative authorities under section 104(2) of this act, upon receipt of the regional transportation improvement plan under section 105 of this act, may, by adoption of an ordinance, submit to the voters of the proposed authority a single ballot measure that approves the regional transportation improvement plan, and approves the revenue sources necessary to finance the plan. The authority may draft the ballot measure on behalf of the county legislative authorities, and the county legislative authorities may give notice as required by law for ballot measures, and perform other duties as required to submit the measure to the voters of the proposed authority for their approval or rejection. The electorate will be the voters voting within the boundaries of the authority within the participating counties, or in the case of a single county, within the boundary of the county. A simple majority of the total persons voting on the single ballot measure is required for approval of the measure.

NEW SECTION.  Sec. 108   FORMATION--CERTIFICATION. If the voters approve the plan, including imposition of taxes and fees, the authority will be declared fully operative. The county election officials of participating counties shall, within fifteen days of the final certification of the election results, publish a notice in a newspaper or newspapers of general circulation in the authority declaring the authority formed, and mail copies of the notice to the governor, the secretary of transportation, and the executive director of the regional transportation planning organization in which any part of the authority is located. A party challenging the procedure or the formation of a voter-approved authority must file the challenge in writing by serving the prosecuting attorney of the participating counties and the attorney general within thirty days after the final certification of the election. Failure to challenge within that time forever bars further challenge of the authority's valid formation.

NEW SECTION.  Sec. 109   GOVERNING BOARD--ORGANIZATION. The board shall adopt rules for the conduct of business. The board shall adopt bylaws to govern authority affairs, which may include:
     (1) The time and place of regular meetings;
     (2) Rules for calling special meetings;
     (3) The method of keeping records of proceedings and official acts;
     (4) Procedures for the safekeeping and disbursement of funds; and
     (5) Any other provisions the board finds necessary to include.

NEW SECTION.  Sec. 110   GOVERNING BOARD--POWERS AND DUTIES--INTENT. (1) The governing board of the authority is responsible for the execution of the voter-approved plan. The board shall:
     (a) Impose taxes and fees authorized by authority voters;
     (b) Enter into agreements with state, local, and regional agencies and departments as necessary to accomplish authority purposes and protect the authority's investment in transportation projects;
     (c) Accept and expend gifts, grants, or other contributions of funds that will support the purposes and programs of the authority;
     (d) Monitor and audit the progress and execution of transportation projects to protect the investment of the public and annually make public its findings;
     (e) Pay for services and enter into leases and contracts, including professional service contracts;
     (f) Contract with an existing agency or hire a limited staff to administer and provide oversight of contracts to implement the plan; and
     (g) Exercise other powers and duties as may be reasonable to carry out the purposes of the authority.
     (2) It is the intent of the legislature that existing staff resources of lead agencies be used in implementing this chapter. An authority may, and in the case of user charges shall, coordinate its activities with the department, which shall provide services, data, and personnel to assist as desired by the regional transportation improvement authority. Lead agencies for transportation projects that are not state facilities shall also provide staff support for the board.
     (3) An authority may not acquire, hold, or dispose of real property.
     (4) An authority may not own, operate, or maintain an ongoing facility, road, or transportation system.
     (5) It is the intent of the legislature that administrative and overhead costs of a regional transportation improvement authority be minimized.
     (6) Lead agencies implementing authority projects may use the design-build procedure for transportation projects developed by it. As used in this section, "design-build procedure" means a method of contracting under which the authority contracts with another party for that party to both design and build the structures, facilities, and other items specified in the contract. The requirements and limitations of RCW 47.20.780 and 47.20.785 do not apply to the transportation projects under this chapter.

NEW SECTION.  Sec. 111   TREASURER. The regional transportation improvement authority, by resolution, shall designate a person having experience in financial or fiscal matters as treasurer of the authority. The authority may designate the treasurer of a county within which the authority is located to act as its treasurer. Such a treasurer has all of the powers, responsibilities, and duties the county treasurer has related to investing surplus funds. The authority shall require a bond with a surety company authorized to do business in this state in an amount and under the terms and conditions the authority, by resolution, from time to time finds will protect the authority against loss. The authority shall pay the premium on the bond.
     In addition to the account established in section 301 of this act, the treasurer may establish a special account, into which may be paid authority funds. The treasurer may disburse authority funds only on warrants issued by the authority upon orders or vouchers approved by the authority.
     If the treasurer of the authority is the treasurer of a county, all authority funds must be deposited with a county depositary under the same restrictions, contracts, and security as provided for county depositaries. If the treasurer of the authority is some other person, all funds must be deposited in a bank or banks authorized to do business in this state qualified for insured deposits under any federal deposit insurance act as the authority, by resolution, designates.
     The authority may provide and require a reasonable bond of any other person handling moneys or securities of the authority, but the authority shall pay the premium on the bond.

NEW SECTION.  Sec. 112   INDEBTEDNESS--BONDS--LIMITATION. (1)(a) Notwithstanding RCW 39.36.020(1), the authority may at any time contract indebtedness or borrow money for authority purposes and may issue general obligation bonds or other evidences of indebtedness, secured by the pledge of one or more of the taxes, tolls, charges, or fees authorized to be imposed by the authority, 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.
     (b) With the approval of three-fifths of the voters voting at an election, an authority may contract indebtedness or borrow money for authority purposes and may issue general obligation bonds or other evidences of indebtedness as long as the total indebtedness of the authority does not exceed five percent of the value of the taxable property within the authority, including indebtedness authorized under (a) of this subsection. The bonds must be issued and sold in accordance with chapter 39.46 RCW.
     (2) The authority may at any time issue revenue bonds or other evidences of indebtedness, secured by the pledge of one or more of the revenues authorized to be collected by the authority, to provide funds to carry out its authorized functions without submitting the matter to the voters of the authority. These obligations must be issued and sold in accordance with chapter 39.46 RCW.
     (3) The authority may enter into agreements with the lead agencies or the state of Washington, when authorized by the plan, to pledge taxes or other revenues of the authority for the purpose of paying in part or whole principal and interest on bonds issued by the lead agency or the state of Washington. The agreements pledging revenues and taxes are binding for their terms, and no tax pledged by an agreement may be eliminated or modified if it would impair the pledge made in any agreement. The term of the bonds may not exceed twenty-five years.
     (4) It is the intent of the legislature that the transportation plan developed by the authority minimize its reliance on bonds and that the authority rely to the extent possible on revenues and charges generated by the network. The issuance of bonds is authorized to address critical transportation expenditures and to better manage the revenues and expenditure commitments of the authority.
     (5) Once construction of capital projects in the plan has been completed, revenues collected by the authority may only be used for the following purposes: (a) Payment of principal and interest on outstanding indebtedness of the authority; (b) to make payments required under a pledging agreement; (c) to make payments for maintenance and operations of toll facilities as may be required by toll bond covenants; and (d) to continue other programs as defined in the plan.

NEW SECTION.  Sec. 113   TRANSPORTATION PROJECT OR PLAN MODIFICATION. (1) The board may modify the plan to change transportation projects or revenue sources in the following manner:
     (a) The board adopts a resolution to modify the plan or to newly impose or increase the rate of the motor vehicle excise tax, vehicle license fee, or a sales and use tax authorized under RCW 82.14.430, and the counties submit the issue to the voters in the authority, in the same manner provided for in section 107 of this act; or
     (b) The board, with a majority of the weighted votes of the board, redefines the scope of the plan, its projects, its schedule, or its costs.
     (2) The board shall continually assess the plan to identify investment and operational changes to improve system performance and annually update the plan.

NEW SECTION.  Sec. 114   TRANSPORTATION PLAN ACCOUNTABILITY. (1) The board shall develop a material change policy to address major plan changes that affect project delivery or the ability to finance the plan. The policy must at least address material changes to cost, scope, and schedule, the level of change that will require board involvement, and how the board will address those changes as provided for in this chapter, including when section 113 of this act will be invoked.
     (2) To assure accountability to the public for the timely accomplishment of the transportation improvement project or projects within scope and cost projections, the authority shall issue a report, at least annually, to the public and copies of the report to newspapers of record in the authority. In the report, the authority shall indicate the status of transportation project costs, transportation project expenditures, revenues, and construction schedules. The report must also include an explanation of the material change policy and actions taken thereon and may also include progress towards meeting the performance criteria provided under this chapter.

NEW SECTION.  Sec. 115   OWNERSHIP OF IMPROVEMENTS. Any improvement to a facility constructed, improved, or operated under this chapter becomes and remains the property of the lead agency unless otherwise provided for.

NEW SECTION.  Sec. 116   DISSOLUTION OF AUTHORITY. Within thirty days of the completion of the construction of the transportation project or series of projects forming the regional transportation improvement plan, the authority shall reduce day-to-day operations and exist solely as a limited entity that oversees the collection of revenue and the payment of debt service or financing still in effect, if any and the payment of ongoing operations of facilities as set forth in the plan. At least one year before the time that capital debt service on transportation projects is completed, the authority shall develop a plan, including a finance plan, for ongoing project operation, and the plan must be submitted by member counties to the voters in the authority. If there is no debt outstanding and there is no ongoing project operation, then the authority shall dissolve within thirty days from completion of construction of the transportation project or series of transportation projects forming the regional transportation improvement plan. Notice of dissolution must be published in newspapers of general circulation within the authority at least three times in a period of thirty days. Creditors must file claims for payment of claims due within thirty days of the last published notice or the claim is extinguished.

NEW SECTION.  Sec. 117   WASHINGTON STATE DEPARTMENT OF TRANSPORTATION ROLE. (1) The department shall provide staff and services to assist authorities under this chapter. The primary responsibility of the dedicated staff is to coordinate the design, preliminary engineering, permitting, financing, and construction of projects in which the state has a role and are under consideration by an authority or are contained in the authority's plan.
     (2) All of the powers granted the department under Title 47 RCW relating to highway construction may, at the request of an authority participating in a plan, be used to implement a regional transportation improvement plan and construct transportation projects.

NEW SECTION.  Sec. 118   TOLLING FEASIBILITY STUDY REQUIRED. The transportation commission, with the technical assistance of the department of transportation, shall conduct a study of the state highway system and other transportation facilities in King, Pierce, and Snohomish counties to determine the feasibility of value pricing on a facility, or network of facilities. The purpose of the study is to determine potential for such an approach as a means to generate needed revenues for needed transportation facilities, maximize the efficient operation of facilities and the transportation network, and provide economic indicators for future system investments. The study must take into account congestion levels, facility and corridor capacity, time of use, economic considerations, and other factors deemed appropriate. The study must recommend any additional laws, rules, procedures, resources, studies, reports, or support infrastructure necessary or desirable before proceeding with the review, evaluation, or implementation of any toll projects or a system-wide value pricing transportation structure.
     The transportation commission shall complete an initial draft of the study and report back to the legislature by January 15, 2006. The final study must be completed by June 30, 2006, and study recommendations must include proposed legislation needed for implementation of system-wide value pricing.

NEW SECTION.  Sec. 119   A new section is added to chapter 47.80 RCW to read as follows:
     RTPO SUPPORT FOR REGIONAL TRANSPORTATION IMPROVEMENT PLAN. At the request of a county or a group of counties, a regional transportation planning organization shall develop and provide a prioritized list of projects for inclusion in a regional transportation improvement plan, as provided for in section 103 of this act and provide other services for a regional transportation improvement authority as provided for in chapter 36.-- RCW (sections 101 through 117 of this act).

NEW SECTION.  Sec. 201   JOINT BALLOT MEASURE. At the option of the regional transportation improvement authority board, and with the explicit approval of the regional transit authority, the participating counties or, in the case of a single-county authority, the county may choose to impose any remaining high-capacity transportation taxes under chapter 81.104 RCW that have not otherwise been used by a regional transit authority and submit to the voters a common ballot measure that creates the authority, approves the regional transportation improvement plan, implements the taxes, and implements any remaining high-capacity transportation taxes within the boundaries of the regional transportation improvement authority. Collection and expenditures of any high-capacity transportation taxes implemented under this section must be determined by agreement between the participating authority or authorities and the regional transit authority electing to submit high-capacity transportation taxes to the voters under a common ballot measure as provided in this section. If the measure fails, all such unused high-capacity transportation taxes revert back to and remain with the regional transit authority.

Sec. 202   RCW 81.104.140 and 2002 c 56 s 202 are each amended to read as follows:
     (1) Agencies authorized to provide high capacity transportation service, including transit agencies and regional transit authorities, and regional transportation ((investment districts)) improvement authorities acting with the agreement of an agency, are hereby granted dedicated funding sources for such systems. These dedicated funding sources, as set forth in RCW 81.104.150, 81.104.160, and 81.104.170, are authorized only for agencies located in (a) each county with a population of two hundred ten thousand or more and (b) each county with a population of from one hundred twenty-five thousand to less than two hundred ten thousand except for those counties that do not border a county with a population as described under (a) of this subsection. In any county with a population of one million or more or in any county having a population of four hundred thousand or more bordering a county with a population of one million or more, these funding sources may be imposed only by a regional transit authority or a regional transportation ((investment district)) improvement authority. Regional transportation ((investment districts)) improvement authorities may, with the approval of the regional transit authority wholly or partly within its boundaries, impose the taxes authorized under this chapter, but only upon approval of the voters and to the extent that the maximum amount of taxes authorized under this chapter have not been imposed.
     (2) Agencies planning to construct and operate a high capacity transportation system should also seek other funds, including federal, state, local, and private sector assistance.
     (3) Funding sources should satisfy each of the following criteria to the greatest extent possible:
     (a) Acceptability;
     (b) Ease of administration;
     (c) Equity;
     (d) Implementation feasibility;
     (e) Revenue reliability; and
     (f) Revenue yield.
     (4) Agencies participating in regional high capacity transportation system development are authorized to levy and collect the following voter-approved local option funding sources:
     (a) Employer tax as provided in RCW 81.104.150, other than by regional transportation investment districts; and
     (b) ((Special motor vehicle excise tax as provided in RCW 81.104.160; and
     (c))) Sales and use tax as provided in RCW 81.104.170.
     Revenues from these taxes may be used only to support those purposes prescribed in subsection (10) of this section. Before the date of an election authorizing an agency to impose any of the taxes enumerated in this section and authorized in RCW 81.104.150, 81.104.160, and 81.104.170, the agency must comply with the process prescribed in RCW 81.104.100 (1) and (2) and 81.104.110. No construction on exclusive right of way may occur before the requirements of RCW 81.104.100(3) are met.
     (5) Authorization in subsection (4) of this section shall not adversely affect the funding authority of transit agencies not provided for in this chapter. Local option funds may be used to support implementation of interlocal agreements with respect to the establishment of regional high capacity transportation service. Except when a regional transit authority exists, local jurisdictions shall retain control over moneys generated within their boundaries, although funds may be commingled with those generated in other areas for planning, construction, and operation of high capacity transportation systems as set forth in the agreements.
     (6) Agencies planning to construct and operate high capacity transportation systems may contract with the state for collection and transference of voter-approved local option revenue.
     (7) Dedicated high capacity transportation funding sources authorized in RCW 81.104.150, 81.104.160, and 81.104.170 shall be subject to voter approval by a simple majority. A single ballot proposition may seek approval for one or more of the authorized taxing sources. The ballot title shall reference the document identified in subsection (8) of this section.
     (8) Agencies shall provide to the registered voters in the area a document describing the systems plan and the financing plan set forth in RCW 81.104.100. It shall also describe the relationship of the system to regional issues such as development density at station locations and activity centers, and the interrelationship of the system to adopted land use and transportation demand management goals within the region. This document shall be provided to the voters at least twenty days prior to the date of the election.
     (9) For any election in which voter approval is sought for a high capacity transportation system plan and financing plan pursuant to RCW 81.104.040, a local voter's pamphlet shall be produced as provided in chapter ((29.81A)) 29A.32 RCW.
     (10) Agencies providing high capacity transportation service shall retain responsibility for revenue encumbrance, disbursement, and bonding. Funds may be used for any purpose relating to planning, construction, and operation of high capacity transportation systems and commuter rail systems, personal rapid transit, busways, bus sets, and entrained and linked buses.

NEW SECTION.  Sec. 301   REGIONAL TRANSPORTATION IMPROVEMENT AUTHORITY ACCOUNT. The regional transportation improvement authority account is created in the custody of the state treasurer. The purpose of this account is to act as an account into which may be deposited state money, if any, that may only be used in conjunction with an authority's money to fund transportation projects. Additionally, an authority may deposit funds into this account for disbursement, as appropriate, on transportation projects. Nothing in this section requires any state matching money. All money deposited in the regional transportation improvement authority account will be used for design, right of way acquisition, capital acquisition, construction, and operation, or for the payment of debt service associated with these activities, for regionally funded transportation projects developed under this chapter. Only an authority, or the authority's designee, may authorize expenditures from the account. The account is subject to allotment procedures under chapter 43.88 RCW. An appropriation is not required for expenditures from this account.

Sec. 302   RCW 81.100.030 and 2002 c 56 s 410 are each amended to read as follows:
     EMPLOYER TAX. (1) A county with a population of one million or more, or a county with a population of from two hundred ten thousand to less than one million that is adjoining a county with a population of one million or more, and having within its boundaries existing or planned high-occupancy vehicle lanes on the state highway system, ((or a regional transportation investment district for capital improvements,)) but only to the extent that the tax has not already been imposed by the county, may, with voter approval 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 county ((or investment 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.
     Counties ((or investment 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 county ((or investment district)) shall adopt rules that exempt from all or a portion of the tax any employer that has entered into an agreement with the county ((or investment 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.
     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 county ((or investment 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.
     If the tax authorized in RCW 81.100.060 is also imposed, the total proceeds from both tax sources each year shall not exceed the maximum amount which could be collected under RCW 81.100.060.

Sec. 303   RCW 81.100.060 and 2002 c 56 s 411 are each amended to read as follows:
     MVET--COUNTY HOV AND IMPROVEMENT AUTHORITIES. A county with a population of one million or more and a county with a population of from two hundred ten thousand to less than one million that is adjoining a county with a population of one million or more, having within their boundaries existing or planned high-occupancy vehicle lanes on the state highway system, or a regional transportation ((investment district for capital improvements)) improvement authority, but only to the extent that the surcharge has not already been imposed by the county, may, with voter approval, impose a local surcharge of not more than three-tenths of one percent in the case of a county, or six-tenths of one percent in the case of an authority of the value on vehicles registered to a person residing within the county or improvement authority and not more than 13.64 percent on the state sales and use taxes paid under the rate in RCW 82.08.020(2) on retail car rentals within the county or ((investment district)) improvement authority. A county may impose the surcharge only to the extent that it has not been imposed by the ((district)) improvement authority. No surcharge may be imposed on vehicles licensed under RCW 46.16.070 except vehicles with an unladen weight of six thousand pounds or less, RCW 46.16.079, 46.16.085, or 46.16.090.
     Counties or ((investment districts)) improvement authorities imposing a tax under this section shall contract, before the effective date of the resolution or ordinance imposing a surcharge, administration and collection to the state department of licensing, and department of revenue, as appropriate, which shall deduct an amount, as provided by contract, for administration and collection expenses incurred by the department. All administrative provisions in chapters 82.03, 82.32, and 82.44 RCW shall, insofar as they are applicable to motor vehicle excise taxes, be applicable to surcharges imposed under this section. All administrative provisions in chapters 82.03, 82.08, 82.12, and 82.32 RCW shall, insofar as they are applicable to state sales and use taxes, be applicable to surcharges imposed under this section. In administering this section, the department of licensing and the department of revenue shall collaborate to develop a schedule for determining the value of vehicles subject to the tax that reflects the market value of the vehicle. The valuation process must provide for a process for appealing the identified value of the vehicle.
     If the tax authorized in RCW 81.100.030 is also imposed, the total proceeds from tax sources imposed under this section and RCW 81.100.030 each year shall not exceed the maximum amount which could be collected under this section.

Sec. 304   RCW 81.100.080 and 1990 c 43 s 19 are each amended to read as follows:
     MVET--USES. Funds collected under RCW 81.100.030 or 81.100.060 and any investment earnings accruing thereon shall be used by the county or the regional transportation improvement authority in a manner consistent with the regional transportation plan only for costs of collection, costs of preparing, adopting, and enforcing agreements under RCW 81.100.030(3), for construction of high occupancy vehicle lanes and related facilities, mitigation of environmental concerns that result from construction or use of high occupancy vehicle lanes and related facilities, by an improvement authority for projects contained in a plan developed under chapter 36.-- RCW (sections 101 through 117 of this act), payment of principal and interest on bonds issued for the purposes of this section, for high occupancy vehicle programs as defined in RCW 81.100.020(5), and for commuter rail projects in accordance with RCW 81.104.120. Except for funds raised by a regional transportation improvement authority, no funds collected under RCW 81.100.030 or 81.100.060 after June 30, 2000, may be pledged for the payment or security of the principal or interest on any bonds issued for the purposes of this section. Not more than ten percent of the funds may be used for transit agency high occupancy vehicle programs.
     Priorities for construction of high occupancy vehicle lanes and related facilities shall be as follows:
     (1)(a) To accelerate construction of high occupancy vehicle lanes on the interstate highway system, as well as related facilities;
     (b) To finance or accelerate construction of high occupancy vehicle lanes on the noninterstate state highway system, as well as related facilities.
     (2) To finance construction of high occupancy vehicle lanes on local arterials, as well as related facilities.
     Moneys received by ((an agency)) a county under this chapter shall be used in addition to, and not as a substitute for, moneys currently used by the agency for the purposes specified in this section.
     Counties and regional transportation improvement authorities may contract with cities or the state department of transportation for construction of high occupancy vehicle lanes and related facilities, and may issue general obligation bonds to fund such construction and use funds received under this chapter to pay the principal and interest on such bonds.

Sec. 305   RCW 82.14.430 and 2002 c 56 s 405 are each amended to read as follows:
     SALES TAX. (1) If approved by the majority of the voters within its boundaries voting on the ballot proposition, a regional transportation ((investment district)) improvement authority may impose a sales and use tax of up to ((0.5)) 0.2 percent of the selling price or value of the article used in the case of a use tax. The tax authorized by this section is in addition to the tax authorized by RCW 82.14.030 and must 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 taxing district. Motor vehicles are exempt from the sales and use tax imposed under this subsection.
     (2) If approved by the majority of the voters within its boundaries voting on the ballot proposition, a regional transportation ((investment district)) improvement authority may impose a tax on the use of a motor vehicle within a regional transportation ((investment district)) improvement authority. The tax applies to those persons who reside within the regional transportation ((investment district)) improvement authority. The rate of the tax may not exceed ((0.5)) 0.2 percent of the value of the motor vehicle. The tax authorized by this subsection is in addition to the tax authorized under RCW 82.14.030 and must be imposed and collected at the time a taxable event under RCW 82.08.020(1) or 82.12.020 takes place. All revenue received under this subsection must be deposited in the local sales and use tax account and distributed to the regional transportation ((investment district)) improvement authority according to RCW 82.14.050. The following provisions apply to the use tax in this subsection:
     (a) Where persons are taxable under chapter 82.08 RCW, the seller shall collect the use tax from the buyer using the collection provisions of RCW 82.08.050.
     (b) Where persons are taxable under chapter 82.12 RCW, the use tax must be collected using the provisions of RCW 82.12.045.
     (c) "Motor vehicle" has the meaning provided in RCW 46.04.320, but does not include farm tractors or farm vehicles as defined in RCW 46.04.180 and 46.04.181, off-road and nonhighway vehicles as defined in RCW 46.09.020, and snowmobiles as defined in RCW 46.10.010.
     (d) "Person" has the meaning given in RCW 82.04.030.
     (e) The value of a motor vehicle must be determined under RCW 82.12.010.
     (f) Except as specifically stated in this subsection (2), chapters 82.12 and 82.32 RCW apply to the use tax. The use tax is a local tax imposed under the authority of chapter 82.14 RCW, and chapter 82.14 RCW applies fully to the use tax.

Sec. 306   RCW 82.80.005 and 2002 c 56 s 415 are each amended to read as follows:
     "AUTHORITY" DEFINED. For the purposes of this chapter, "((district)) authority" means a regional transportation ((investment district)) improvement authority created ((under chapter 36.120 RCW)) in chapter 36.-- RCW (sections 101 through 117 of this act).

Sec. 307   RCW 82.80.010 and 2003 c 350 s 1 are each amended to read as follows:
     FUEL TAX--COUNTY. (1) For purposes of this section:
     (a) "Distributor" means every person who imports, refines, manufactures, produces, or compounds motor vehicle fuel and special fuel as defined in RCW 82.36.010 and 82.38.020, respectively, and sells or distributes the fuel into a county;
     (b) "Person" has the same meaning as in RCW 82.04.030.
     (2) Subject to the conditions of this section, any county may levy, by approval of its legislative body and a majority of the registered voters of the county voting on the proposition at a general or special election, additional excise taxes equal to ten percent of the statewide motor vehicle fuel tax rate under RCW 82.36.025 on each gallon of motor vehicle fuel as defined in RCW 82.36.010 and on each gallon of special fuel as defined in RCW 82.38.020 sold within the boundaries of the county. Vehicles paying an annual license fee under RCW 82.38.075 are exempt from the county fuel excise tax. An election held under this section must be held not more than twelve months before the date on which the proposed tax is to be levied. The ballot setting forth the proposition shall state the tax rate that is proposed. The county's authority to levy additional excise taxes under this section includes the incorporated and unincorporated areas of the county. The additional excise taxes are subject to the same exceptions and rights of refund as applicable to other motor vehicle fuel and special fuel excise taxes levied under chapters 82.36 and 82.38 RCW. The proposed tax shall not be levied less than one month from the date the election results are certified by the county election officer. The commencement date for the levy of any tax under this section shall be the first day of January, April, July, or October.
     (3) The local option motor vehicle fuel tax on each gallon of motor vehicle fuel and on each gallon of special fuel is imposed upon the distributor of the fuel.
     (4) A taxable event for the purposes of this section occurs upon the first distribution of the fuel within the boundaries of a county to a retail outlet, bulk fuel user, or ultimate user of the fuel.
     (5) All administrative provisions in chapters 82.01, 82.03, and 82.32 RCW, insofar as they are applicable, apply to local option fuel taxes imposed under this section.
     (6) Before the effective date of the imposition of the fuel taxes under this section, a county shall contract with the department of revenue for the administration and collection of the taxes. The contract must provide that a percentage amount, not to exceed one percent of the taxes imposed under this section, will be deposited into the local tax administration account created in the custody of the state treasurer. The department of revenue may spend money from this account, upon appropriation, for the administration of the local taxes imposed under this section.
     (7) The state treasurer shall distribute monthly to the levying county and cities contained therein the proceeds of the additional excise taxes collected under this section, after the deductions for payments and expenditures as provided in RCW 46.68.090(1) (a) and (b) and under the conditions and limitations provided in RCW 82.80.080.
     (8) The proceeds of the additional excise taxes levied under this section shall be used strictly for transportation purposes in accordance with RCW 82.80.070.
     (((9) A county may not levy the tax under this section if they are levying the tax in RCW 82.80.110 or if they are a member of a regional transportation investment district levying the tax in RCW 82.80.120.))

Sec. 308   RCW 82.80.030 and 2002 c 56 s 412 are each amended to read as follows:
     COMMERCIAL PARKING TAX. (1) Subject to the conditions of this section, the legislative authority of a county((,)) or city((, or district)) may fix and impose a parking tax on all persons engaged in a commercial parking business within its respective jurisdiction. ((A city or county may impose the tax only to the extent that it has not been imposed by the district, and a district may impose the tax only to the extent that it has not been imposed by a city or county.)) The jurisdiction of a county, for purposes of this section, includes only the unincorporated area of the county. The jurisdiction of a city ((or district)) includes only the area within its boundaries.
     (2) In lieu of the tax in subsection (1) of this section, a city, or a county in its unincorporated area, ((or a district)) may fix and impose a tax for the act or privilege of parking a motor vehicle in a facility operated by a commercial parking business.
     The city((,)) or county((, or 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 city((,)) or county((, or 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 county((,)) or city((, or 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. Each local government 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 commercial parking tax fixed and imposed by a city or county under subsection (1) or (2) of this section shall be used strictly for transportation purposes in accordance with RCW 82.80.070. ((The proceeds of the parking tax imposed by a district must be used as provided in chapter 36.120 RCW.))

Sec. 309   RCW 82.80.070 and 2002 c 56 s 413 are each amended to read as follows:
     LOCAL OPTION TAXES--USES. (1) The proceeds collected pursuant to the exercise of the local option authority of RCW 82.80.010, 82.80.020, 82.80.030, and 82.80.050 (hereafter called "local option transportation revenues") shall be used for transportation purposes only, including but not limited to the following: The operation and preservation of roads, streets, and other transportation improvements; new construction, reconstruction, and expansion of city streets, county roads, and state highways and other transportation improvements; development and implementation of public transportation and high-capacity transit improvements and programs; and planning, design, and acquisition of right of way and sites for such transportation purposes. The proceeds collected from excise taxes on the sale, distribution, or use of motor vehicle fuel and special fuel under RCW 82.80.010 shall be used exclusively for "highway purposes" as that term is construed in Article II, section 40 of the state Constitution.
     (2) The local option transportation revenues shall be expended for transportation uses consistent with the adopted transportation and land use plans of the jurisdiction expending the funds and consistent with any applicable and adopted regional transportation plan for metropolitan planning areas.
     (3) Each local government with a population greater than eight thousand that levies or expends local option transportation funds, is also required to develop and adopt a specific transportation program that contains the following elements:
     (a) The program shall identify the geographic boundaries of the entire area or areas within which local option transportation revenues will be levied and expended.
     (b) The program shall be based on an adopted transportation plan for the geographic areas covered and shall identify the proposed operation and construction of transportation improvements and services in the designated plan area intended to be funded in whole or in part by local option transportation revenues and shall identify the annual costs applicable to the program.
     (c) The program shall indicate how the local transportation plan is coordinated with applicable transportation plans for the region and for adjacent jurisdictions.
     (d) The program shall include at least a six-year funding plan, updated annually, identifying the specific public and private sources and amounts of revenue necessary to fund the program. The program shall include a proposed schedule for construction of projects and expenditure of revenues. The funding plan shall consider the additional local tax revenue estimated to be generated by new development within the plan area if all or a portion of the additional revenue is proposed to be earmarked as future appropriations for transportation improvements in the program.
     (4) Local governments with a population greater than eight thousand exercising the authority for local option transportation funds shall periodically review and update their transportation program to ensure that it is consistent with applicable local and regional transportation and land use plans and within the means of estimated public and private revenue available.
     (5) In the case of expenditure for new or expanded transportation facilities, improvements, and services, priorities in the use of local option transportation revenues shall be identified in the transportation program and expenditures shall be made based upon the following criteria, which are stated in descending order of weight to be attributed:
     (a) First, the project serves a multijurisdictional function;
     (b) Second, it is necessitated by existing or reasonably foreseeable congestion;
     (c) Third, it has the greatest person-carrying capacity;
     (d) Fourth, it is partially funded by other government funds, such as from the state transportation improvement board, or by private sector contributions, such as those from the local transportation act, chapter 39.92 RCW; and
     (e) Fifth, it meets such other criteria as the local government determines is appropriate.
     (6) It is the intent of the legislature that as a condition of levying, receiving, and expending local option transportation revenues, no local government agency use the revenues to replace, divert, or loan any revenues currently being used for transportation purposes to nontransportation purposes. ((The association of Washington cities and the Washington state association of counties, in consultation with the legislative transportation committee, shall study the issue of nondiversion and make recommendations to the legislative transportation committee for language implementing the intent of this section by December 1, 1990.))
     (7) Local governments are encouraged to enter into interlocal agreements to jointly develop and adopt with other local governments the transportation programs required by this section for the purpose of accomplishing regional transportation planning and development.
     (8) Local governments may use all or a part of the local option transportation revenues for the amortization of local government general obligation and revenue bonds issued for transportation purposes consistent with the requirements of this section.
     (((9) Subsections (1) through (8) of this section do not apply to a regional transportation investment district imposing a tax or fee under the local option authority of this chapter. Proceeds collected under the exercise of local option authority under this chapter by a district must be used in accordance with chapter 36.120 RCW.))

Sec. 310   RCW 82.80.080 and 2002 c 56 s 414 are each amended to read as follows:
     DISTRIBUTION OF TAXES. (1) The state treasurer shall distribute revenues, less authorized deductions, generated by the local option taxes authorized in RCW 82.80.010 and 82.80.020, levied by counties to the levying counties, and cities contained in those counties, based on the relative per capita population. County population for purposes of this section is equal to one and one-half of the unincorporated population of the county. In calculating the distributions, the state treasurer shall use the population estimates prepared by the state office of financial management and shall further calculate the distribution based on information supplied by the departments of licensing and revenue, as appropriate.
     (2) The state treasurer shall distribute revenues, less authorized deductions, generated by the local option taxes authorized in RCW 82.80.010 and 82.80.020 levied by qualifying cities and towns to the levying cities and towns.
     (3) The state treasurer shall distribute to the district revenues, less authorized deductions, generated by the local option taxes under RCW 82.80.010 or fees under RCW 82.80.100 levied by ((a district)) an authority.

Sec. 311   RCW 82.80.100 and 2002 c 56 s 408 are each amended to read as follows:
     VEHICLE FEE. (1) Upon approval of a majority of the voters within its boundaries voting on the ballot proposition, a regional transportation ((investment district)) improvement authority may set and impose an annual local option vehicle license fee, or a schedule of fees based upon the age of the vehicle, of up to one hundred dollars per motor vehicle registered within the boundaries of the region on every motor vehicle. As used in this section "motor vehicle" has the meaning provided in RCW 46.04.320, but does not include farm tractors or farm vehicles as defined in RCW 46.04.180 and 46.04.181, off-road and nonhighway vehicles as defined in RCW 46.09.020, and snowmobiles as defined in RCW 46.10.010. Vehicles registered under chapter 46.87 RCW and the international registration plan are exempt from the annual local option vehicle license fee set forth in this section. The department of licensing shall administer and collect this fee on behalf of regional transportation ((investment districts)) improvement authorities and remit this fee to the custody of the state treasurer for monthly distribution under RCW 82.80.080.
     (2) ((The local option vehicle license fee applies only when renewing a vehicle registration, and is effective upon the registration renewal date as provided by the department of licensing.
     (3))) A regional transportation ((investment district)) improvement authority imposing the local option vehicle license fee or initiating an exemption process shall enter into a contract with the department of licensing. The contract must contain provisions that fully recover the costs to the department of licensing for collection and administration of the fee.
     (((4))) (3) A regional transportation ((investment district)) improvement authority imposing the local option fee shall delay the effective date of the local option vehicle license fee imposed by this section at least six months from the date of the final certification of the approval election to allow the department of licensing to implement the administration and collection of or exemption from the fee.

Sec. 312   RCW 47.56.075 and 2002 c 56 s 404 are each amended to read as follows:
     DOT TOLL ROAD AUTHORITY TO RTIA. The department shall approve for construction only such toll roads as the legislature specifically authorizes or such toll facilities as are specifically sponsored by a regional transportation ((investment district)) improvement authority, city, town, or county.

NEW SECTION.  Sec. 313   A new section is added to chapter 36.-- RCW (sections 101 through 117 of this act) to read as follows:
     TOLL AUTHORITY. Notwithstanding any provision to the contrary in this chapter, the department of transportation, on behalf of a regional transportation improvement authority, may impose vehicle tolls on local and regional arterials with the approval of the transportation commission, or its successor, and upon approval of a majority of the voters voting on a regional transportation improvement plan ballot measure within its boundaries as authorized in this chapter. These tolls, or value-priced charges, may be imposed to implement the regional transportation improvement plan including improving performance of the regional transportation network, financing transportation improvements, and measuring needed investments. Tolls imposed may vary for type of vehicle, for time of day, for traffic conditions, and for other factors.

NEW SECTION.  Sec. 314   A new section is added to chapter 82.80 RCW to read as follows:
     VEHICLE MILES TRAVELED. (1) The board of a regional transportation improvement authority may impose a value-pricing charge based upon vehicle miles traveled. This charge may be, but is not limited to, a charge upon the vehicle miles traveled within the authority by a vehicle, or upon vehicle miles traveled within certain corridors in the authority, or upon total vehicle miles traveled by a vehicle registered to a person whose legal residence is within the authority.
     (2) Charges imposed may be collected either periodically in a manner prescribed by the authority or annually by the department of licensing upon renewal of the vehicle license. The authority may identify categories of miles driven that are subject to or exempt from the charge, including but not limited to, travel outside the authority, travel in specified corridors, time of travel, or exempt or maximum mileage charges.
     (3) The mileage charge under this section is subject to the approval of the transportation commission or its statutory successor, and the authority to impose a charge is subject to voter approval as set forth in section 107 of this act.
     (4) An authority imposing a mileage charge collected annually by the department of licensing upon renewal of the vehicle license shall enter into a contract with the department of licensing. The contract must contain provisions that fully recover the costs to the department of licensing for collection and administration of the charge. The authority imposing this charge or initiating an exemption process shall provide at least six months' notice to the department of licensing before the implementation of any changes in registration amounts or exemptions.

Sec. 315   RCW 47.56.076 and 2002 c 56 s 403 are each amended to read as follows:
     COMMISSION--TOLLING. Upon approval of a majority of the voters within its boundaries voting on the ballot proposition, and ((only for the purposes authorized in RCW 36.120.050(1)(f))) with the approval of the transportation commission, or its successor, a regional transportation ((investment district)) improvement authority may ((impose)) authorize vehicle tolls on a state ((routes where improvements financed in whole or in part by a regional transportation investment district add additional lanes to, or reconstruct lanes on, a highway of statewide significance)) or federal highway within the boundaries of the authority. The department shall administer the collection of vehicle tolls authorized on designated facilities unless otherwise specified in law or by contract, and the state transportation commission, or its successor, shall ((be the tolling authority)) set and impose the tolls, based on value-pricing, in amounts sufficient to implement the regional transportation improvement plan.

NEW SECTION.  Sec. 316   A new section is added to chapter 47.56 RCW to read as follows:
     I-90/SR 520 TOLLING. Notwithstanding any provision to the contrary in this chapter, a regional transportation improvement authority may impose vehicle tolls on either Lake Washington bridge upon approval of a majority of the voters voting on a regional transportation improvement plan ballot measure within its boundaries and to implement an improvement plan as authorized in chapter 36.-- RCW (sections 101 through 117 of this act) and RCW 47.56.076.

NEW SECTION.  Sec. 401   LEGISLATIVE INTENT. The legislature finds that increased demands on transportation resources require increased efficiency and effectiveness in decision making within urbanized regions. Legislative enactments, public votes on local and state initiatives and referenda, and the number of agencies involved in transportation planning and delivery of services has significantly added to the complexity of transportation programs.
     The legislature further finds that coordinated planning, investment in, and operation of transportation systems by the state and local governments can help ensure an efficient, effective transportation system that addresses community needs. Such coordination can also enhance local and state objectives for effective regional transportation strategies and effective coordination between land use and transportation.
     The legislature finds that addressing this need for better accountability and coordination requires a comprehensive regional examination of alternative methods for consolidating and coordinating transportation efforts, and improving accountability. This examination is best accomplished by an independent body of experts in governmental organization and transportation issues. It further finds that the results of this process will guide the legislature and the public in shaping changes to ensure public confidence in public institutions and tax expenditures.

NEW SECTION.  Sec. 402   ESTABLISHMENT OF COMMISSION. (1) The county executives of all counties having a population of over five hundred thousand persons, that adjoin other counties having a population of over five hundred thousand persons, shall jointly appoint a regional transportation governance commission. The county commission of any other county within the regional transportation planning organization in which the counties are located shall also appoint a member to the governance commission. The governor shall appoint a voting member of the commission, who shall be chair, and shall appoint additional members so that the governor's appointments constitute at least one-third of the voting membership of the commission. In addition, the secretary of transportation or the secretary's designee shall serve as a nonvoting member. Appointees must be citizen members, who do not hold public office. Appointees must include experts from the private and public sectors, including academia, with demonstrated expertise in innovation, structural reorganization, and private or public agency decision making and must also include experts in fields such as municipal law, public administration, intergovernmental relationships, and transportation planning, construction, operations, and risk management. The commission may not exceed eighteen voting members.
     (2) The commission shall evaluate transportation governance in the central Puget Sound area under the jurisdiction of the Puget Sound regional council. This evaluation must include an assessment of the current roles of regional transportation agencies including regional transportation and metropolitan planning organizations, the regional transit authority, regional transportation improvement authorities, county and municipal agencies operating transit services, and cities and counties and other public agencies providing transportation services or facilities. The commission shall assess and develop recommendations for what steps should be taken to:
     (a) Consolidate governance among agencies including changes in institutional powers, structures, and relationships and governance needed to improve accountability for transportation decisions, while enhancing the regional focus for transportation decisions and maintaining equity among citizens in the region;
     (b) Improve coordination in the planning of transportation investments and services;
     (c) Improve investment strategies;
     (d) Coordinate transportation planning and investments with adopted land use policies within the region;
     (e) Enhance efficiency and coordination in the delivery of services provided;
     (f) Adjust boundaries for agencies or functions within the region to address existing and future transportation and land use issues; and
     (g) Improve coordination between regional investments and federal funds, and state funding including those administered by the transportation improvement board, the county road administration board, and the freight mobility strategic investment board.
     (3) The commission shall make public its preliminary findings and recommendations by November 15, 2005, and shall provide at least fifteen days for public comment. The commission shall then adopt its findings and recommendations and submit them to the legislature by January 1, 2006.
     (4) The commission shall conduct public meetings to assure active public participation in the development of the recommendations.

NEW SECTION.  Sec. 403   COMMISSION STAFF SUPPORT. The department of transportation shall provide staff support to the commission and, upon request of the commission, contract with other parties for staff support to the commission.

NEW SECTION.  Sec. 501   The following acts or parts of acts are each repealed:
     (1) RCW 36.120.010 (Findings) and 2002 c 56 s 101;
     (2) RCW 36.120.020 (Definitions) and 2002 c 56 s 102;
     (3) RCW 36.120.030 (Planning committee formation) and 2002 c 56 s 103;
     (4) RCW 36.120.040 (Planning committee duties) and 2003 c 194 s 1 & 2002 c 56 s 104;
     (5) RCW 36.120.050 (Taxes, fees, and tolls) and 2003 c 350 s 4 & 2002 c 56 s 105;
     (6) RCW 36.120.060 (Project selection -- Performance criteria) and 2002 c 56 s 106;
     (7) RCW 36.120.070 (Submission of plan to the voters) and 2002 c 56 s 107;
     (8) RCW 36.120.080 (Formation -- Certification) and 2002 c 56 s 108;
     (9) RCW 36.120.090 (Governing board -- Composition) and 2002 c 56 s 109;
     (10) RCW 36.120.100 (Governing board -- Organization) and 2002 c 56 s 110;
     (11) RCW 36.120.110 (Governing board -- Powers and duties -- Intent) and 2002 c 56 s 111;
     (12) RCW 36.120.120 (Treasurer) and 2002 c 56 s 112;
     (13) RCW 36.120.130 (Indebtedness -- Bonds -- Limitation) and 2003 c 372 s 1 & 2002 c 56 s 113;
     (14) RCW 36.120.140 (Transportation project or plan modification -- Accountability) and 2003 c 194 s 2 & 2002 c 56 s 114;
     (15) RCW 36.120.150 (Department of transportation -- Role) and 2002 c 56 s 115;
     (16) RCW 36.120.160 (Ownership of improvements) and 2002 c 56 s 116;
     (17) RCW 36.120.170 (Dissolution of district) and 2002 c 56 s 117;
     (18) RCW 36.120.180 (Findings -- Regional models -- Grants) and 2002 c 56 s 118;
     (19) RCW 36.120.190 (Joint ballot measure) and 2002 c 56 s 201;
     (20) RCW 36.120.200 (Regional transportation investment district account) and 2002 c 56 s 401;
     (21) RCW 36.120.900 (Captions and subheadings not law -- 2002 c 56) and 2002 c 56 s 501;
     (22) RCW 36.120.901 (Severability -- 2002 c 56) and 2002 c 56 s 503;
     (23) RCW 82.80.110 (Motor vehicle and special fuel tax -- Dedication by county to regional transportation investment district plan) and 2003 c 350 s 2; and
     (24) RCW 82.80.120 (Motor vehicle and special fuel tax -- Regional transportation investment district) and 2003 c 350 s 3.

NEW SECTION.  Sec. 601   CAPTIONS. Captions and part headings used in this act are not part of the law.

NEW SECTION.  Sec. 602   STATEWIDE MOTOR FUEL TAXES HELD HARMLESS. Existing statewide motor vehicle fuel and special fuel taxes, at the distribution rates in RCW 46.68.090, are not intended to be altered by this act.

NEW SECTION.  Sec. 603   CODIFICATION. Sections 101 through 117 and 315 of this act constitute a new chapter in Title 36 RCW.

NEW SECTION.  Sec. 604   SEVERABILITY. 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.