"NEW SECTION.  Sec. 6   The legislature finds that the replacement of the Alaskan Way Viaduct and the state route number 520 floating bridge are the highest priority transportation projects that represent an immediate threat to public safety and are vital to the economic strength of the Puget Sound region and the state as a whole. The legislature also finds that imposing tolls of seven dollars or more on the Lake Washington bridges would be a barrier to low and moderate-income households in the Puget Sound region and would serve to discourage free movement of people throughout the region.

NEW SECTION.  Sec. 7   A new section is added to chapter 81.112 RCW to read as follows:
     (1) As part of the proposition to support additional implementation phases of the regional transit authority's system and financing plan submitted to voters at the 2007 general election under RCW 36.120.070 and 81.112.030(10), the authority shall not fund any planning, development, or construction that is not described in the sound transit 2 draft package, dated January 11, 2007. In addition, the authority may not apply any revenues received from the 2007 general election under RCW 36.120.070 and 81.112.040(10) toward planning, development, construction, acquisition of right-of-way, or financing of light rail over Lake Washington. This section is not intended to limit a regional transit authority's ability to expand light rail beyond the limitation of this section after November 2007.
     (2) Revenues equal to the amount necessary to fund the expansion of light rail as proposed in the sound transit 2 draft package, dated January 11, 2007, shall be distributed to a regional transportation investment district established under chapter 36.120 RCW in accordance with section 10 of this act.

Sec. 8   RCW 81.104.160 and 2003 c 1 s 6 are each amended to read as follows:
     An agency may impose a sales and use tax solely for the purpose of providing high capacity transportation service, except as otherwise provided in section 7 of this act, in addition to the tax authorized by RCW 82.14.030, upon retail car rentals within the agency's jurisdiction that are taxable by the state under chapters 82.08 and 82.12 RCW. The rate of tax shall not exceed 2.172 percent. The base of the tax shall be the selling price in the case of a sales tax or the rental value of the vehicle used in the case of a use tax.
     Any motor vehicle excise tax previously imposed under the provisions of RCW 81.104.160(1) shall be repealed, terminated and expire on December 5, 2002.

Sec. 9   RCW 81.104.170 and 1997 c 450 s 5 are each amended to read as follows:
     (1) Cities that operate transit systems, county transportation authorities, metropolitan municipal corporations, public transportation benefit areas, and regional transit authorities may submit an authorizing proposition to the voters and if approved by a majority of persons voting, fix and impose a sales and use tax in accordance with the terms of this chapter, solely for the purpose of providing high capacity transportation service except as otherwise provided in section 7 of this act.
     (2) The tax authorized pursuant to this section shall be in addition to the tax authorized by RCW 82.14.030 and shall be collected from those persons who are taxable by the state pursuant to chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event within the taxing district. The maximum rate of such tax shall be approved by the voters and shall not exceed one percent of the selling price (in the case of a sales tax) or value of the article used (in the case of a use tax). The maximum rate of such tax that may be imposed shall not exceed nine-tenths of one percent in any county that imposes a tax under RCW 82.14.340, or within a regional transit authority if any county within the authority imposes a tax under RCW 82.14.340. The exemptions in RCW 82.08.820 and 82.12.820 are for the state portion of the sales and use tax and do not extend to the tax authorized in this section.

NEW SECTION.  Sec. 10   A new section is added to chapter 36.120 RCW to read as follows:
     (1) As part of the proposition to support additional implementation phases of the regional transit authority's system and financing plan submitted to voters at the 2007 general election under RCW 36.120.070 and 81.112.040(10), funds received under section 7 of this act shall be allocated to the projects listed below in the amounts described and in the following order of priority:
     (a) One billion one hundred million dollars for a tunnel replacement option for the Alaskan Way Viaduct that maintains or exceeds the current capacity.
     (i) If a tunnel replacement option is not selected, these funds shall be used to ensure the completion of the projects listed in (b) through (e) of this subsection and to fund projects described in subsection (2) of this section. Any funds that are not necessary to carry out the purposes of this section shall be returned to the regional transit authority.
     (ii) The district must reallocate these funds in accordance with subsection (2) of this section if, within one year of passage of the 2007 general election ballot measure approved in RCW 36.120.070 and RCW 81.112.040(10), local jurisdictions have not agreed to contribute seven hundred fifty million dollars in funds from local sources that may include, but are not limited to, a local improvement district and a local utility tax.
     (b) Two billion seven hundred million dollars for the improvement and replacement of the state route number 520 bridge replacement and HOV project between Interstate 5 and Interstate 405. The district must include in its ballot measure one billion one hundred million dollars for the state route number 520 floating bridge. These funds must be combined with any additional funds appropriated by federal, state, and local sources to fully fund the state route number 520 bridge replacement and improvements as designated by the district. The funding package for the state route number 520 bridge replacement and HOV project may not include tolling.
     (c) Six hundred forty million dollars for the construction of state route number 167 to the port of Tacoma in addition to any other funds provided by the plan developed by the regional transportation investment district.
     (d) One hundred thirteen million dollars for the construction of state route number 704 between Interstate 5 and state route number 7, in addition to any other funds provided by the plan developed by the regional transportation investment district.
     (e) Ninety-four million dollars for the connection of state route number 509 and Interstate 5 at Sea-Tac in addition to funds already provided by the regional transportation investment district.
     (2) Funds not necessary for the implementation of the projects in subsection (1) of this section shall be transferred to sound transit for the purpose of completing light rail to the Tacoma Dome transit center.

Sec. 11   RCW 36.120.040 and 2006 c 311 s 6 are each amended to read as follows:
     (1) A regional transportation investment district planning committee shall adopt a regional transportation investment plan providing for the development, construction, and financing of transportation projects. The planning committee may consider the following factors in formulating its plan:
     (a) Land use planning criteria;
     (b) The input of cities located within a participating county; and
     (c) The input of regional transportation planning organizations of which a participating county is a member. A regional transportation planning organization in which a participating county is located shall review its adopted regional transportation plan and submit, for the planning committee's consideration, its list of transportation improvement priorities.
     (2) The planning committee may coordinate its activities with the department, which shall provide services, data, and personnel to assist in this planning as desired by the planning committee. In addition, the planning committee may coordinate its activities with affected cities, towns, and other local governments, including any regional transit authority existing within the participating counties' boundaries, that engage in transportation planning.
     (3) The planning committee shall:
     (a) Conduct public meetings that are needed to assure active public participation in the development of the plan;
     (b) Adopt a plan proposing the:
     (i) Creation of a regional transportation investment district, including district boundaries; and
     (ii) Construction of transportation projects to improve mobility within each county and within the region. Operations, maintenance, and preservation of facilities or systems may not be part of the plan, except for the limited purposes provided under RCW 36.120.020(8); and
     (c) Recommend sources of revenue authorized by RCW 36.120.050 and a financing plan to fund selected transportation projects. The overall plan of the district must leverage the district's financial contributions so that the federal, state, local, and other revenue sources continue to fund major congestion relief and transportation capacity improvement projects in each county and the district. A combination of local, state, and federal revenues may be necessary to pay for transportation projects, and the planning committee shall consider all of these revenue sources in developing a plan.
     (4) The plan must use tax revenues and related debt for projects that generally benefit a participating county in proportion to the general level of tax revenues generated within that participating county. This equity principle applies to all modifications to the plan, appropriation of contingency funds not identified within the project estimate, and future phases of the plan. Per agreement with a regional transit authority serving the counties participating in a district, the equity principle identified under this subsection may include using the combined district and regional transit authority revenues generated within a participating county to determine the distribution that proportionally benefits the county. Modifications made under section 10 of this act are in compliance with this equity principle. For purposes of the transportation subarea equity principle established under this subsection, a district may use the five subareas within a regional transit authority's boundaries as identified in an authority's system plan adopted in May 1996. During implementation of the plan, the board shall retain the flexibility to manage distribution of revenues, debt, and project schedules so that the district may effectively implement the plan. Nothing in this section should be interpreted to prevent the district from pledging district-wide tax revenues for payment of any contract or debt entered into under RCW 36.120.130.
     (5) Before adopting the plan, the planning committee, with assistance from the department, shall work with the lead agency to develop accurate cost forecasts for transportation projects. This project costing methodology must be integrated with revenue forecasts in developing the plan and must at a minimum include estimated project costs in constant 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 submitted to the voters must provide cost estimates for each project, including reasonable contingency costs. Plans submitted to the voters 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) If a county opts not to adopt the plan or participate in the regional transportation investment district, but two or more contiguous counties do choose to continue to participate, then the planning committee may, within ninety days, redefine the regional transportation investment 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 by the planning committee, the plan must be forwarded to the participating county legislative authorities to initiate the election process under RCW 36.120.070. The planning committee shall at the same time provide notice to each city and town within the district, the governor, the chairs 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 district.
     (8) If the ballot measure is not approved, the planning committee may redefine the selected transportation projects, financing plan, and the ballot measure. The county legislative authorities 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. If no ballot measure is approved by the voters by the third vote, the planning committee is dissolved.

Sec. 12   RCW 36.120.045 and 2006 c 311 s 7 are each amended to read as follows:
     The planning committee must develop and include in the regional transportation investment plan a funding proposal for the state route number 520 bridge replacement and HOV project that assures full project funding for seismic safety and corridor connectivity on state route number 520 between Interstate 5 and Interstate 405 without assessing tolls on either state route number 520 or Interstate 90 across Lake Washington."

"NEW SECTION.  Sec. 7   Sections 1 through 5 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect immediately."