1147-S AMH HUNT PETE 019
SHB 1147 - H AMD 381
By Representative Hunter
NOT CONSIDERED 4/26/2009
Strike everything after the enacting clause and insert the following:
"Sec. 1. RCW 82.14.450 and 2007 c 380 s 1 are each amended to read as follows:
(1) A county legislative authority may submit an
authorizing proposition to the county voters at a primary or general election
and, if the proposition is approved by a majority of persons voting, impose a
sales and use tax in accordance with the terms of this chapter. The title of
each ballot measure must clearly state the purposes for which the proposed
sales and use tax will be used. ((Funds raised under this tax shall not
supplant existing funds used for these purposes. For purposes of this
subsection, existing funds means the actual operating expenditures for the
calendar year in which the ballot measure is approved by voters. Actual
operating expenditures excludes lost federal funds, lost or expired state
grants or loans, extraordinary events not likely to reoccur, changes in
contract provisions beyond the control of the county or city receiving the
services, and major nonrecurring capital expenditures.)) The rate of tax
under this section ((shall)) may not exceed three-tenths of one
percent of the selling price in the case of a sales tax, or value of the
article used, in the case of a use tax.
(2) The tax authorized in this section is in addition to
any other taxes authorized by law and ((shall)) 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 county.
(3) The retail sale or use of motor vehicles, and the lease of motor vehicles for up to the first thirty-six months of the lease, are exempt from tax imposed under this section.
(4) One-third of all money received under this section
((shall)) must be used solely for criminal justice purposes. For
the purposes of this subsection, "criminal justice purposes" means
additional police protection, mitigation of congested court systems, or relief
of overcrowded jails or other local correctional facilities.
(5) Money received under this section ((shall)) must
be shared between the county and the cities as follows: Sixty percent ((shall))
must be retained by the county and forty percent ((shall)) must
be distributed on a per capita basis to cities in the county.
Sec. 2. RCW 82.14.460 and 2008 c 157 s 2 are each amended to read as follows:
(1) A county legislative authority may authorize, fix, and impose a sales and use tax in accordance with the terms of this chapter.
(2) The tax authorized in this section shall be in addition to any other taxes authorized by law and shall be collected from those persons who are taxable by the state under chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event within the county. The rate of tax shall equal one-tenth of one percent of the selling price in the case of a sales tax, or value of the article used, in the case of a use tax.
(3) Moneys collected under this section shall be used
solely for the purpose of providing for the operation or delivery of ((new
or expanded)) chemical dependency or mental health treatment programs and
services and for the operation or delivery of ((new or expanded))
therapeutic court programs and services. For the purposes of this section,
"programs and services" includes, but is not limited to, treatment
services, case management, and housing that are a component of a coordinated
chemical dependency or mental health treatment program or service.
(4) All moneys collected under this section must be
used solely for the purpose of providing new or expanded programs and services
as provided in this section, except a portion of moneys collected under
this section ((shall not)) may be used to supplant existing
funding for these purposes((, provided that)) in any county as
follows: Up to fifty percent may be used to supplant existing funding in the
fiscal year ending in 2010; up to forty percent may be used to supplant
existing funding in the fiscal year ending in 2011; up to thirty percent may be
used to supplant existing funding in the fiscal year ending in 2012; up to
twenty percent may be used to supplant existing funding in the fiscal year
ending in 2013; and up to ten percent may be used to supplant existing funding
in the fiscal year ending in 2014.
(5) Nothing in this section shall be interpreted to prohibit the use
of moneys collected under this section for the replacement of lapsed federal
funding previously provided for the operation or delivery of services and
programs as provided in this section.
Sec. 3. RCW 82.14.415 and 2006 c 361 s 1 are each amended to read as follows:
(1) The legislative authority of any city ((with a
population less than four hundred thousand and which)) that is
located in a county with a population greater than six hundred thousand that
annexes an area consistent with its comprehensive plan required by chapter
36.70A RCW((,)) may impose a sales and use tax in accordance with the
terms of this chapter. The tax is in addition to other taxes authorized by law
and shall be collected from those persons who are taxable by the state under
chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event within
the city. The tax may only be imposed by a city if:
(a) The city has commenced annexation of an area under
chapter 35.13 or 35A.14 RCW having a population of at least ten thousand people
prior to January 1, ((2010)) 2015; and
(b) The city legislative authority determines by resolution or ordinance that the projected cost to provide municipal services to the annexation area exceeds the projected general revenue that the city would otherwise receive from the annexation area on an annual basis.
(2) The tax authorized under this section is a credit
against the state tax under chapter 82.08 or 82.12 RCW. The department of
revenue shall perform the collection of such taxes on behalf of the city at no
cost to the city ((and shall remit)). The tax shall be
remitted to the city as provided in RCW 82.14.060.
(3)(a) Except as provided in (b) of this subsection,
the maximum rate of tax any city may impose under this section shall be ((0.2
percent for the total number of annexed areas the city may annex. The rate of
the tax imposed under this section is)):
(i) 0.1 percent for each annexed area population that is greater
than ten thousand and less than twenty thousand((. The rate of the tax
imposed under this section shall be)); and
(ii) 0.2 percent for an annexed area ((which the)) population
that is greater than twenty thousand.
(b) As of July 1, 2011, and thereafter, 0.85 percent
for an annexed area population that is greater than eighteen thousand if:
(i) The annexed area is annexed by a city that has officially designated
the area a potential annexation area; and
(ii) The annexed area is, or was prior to November 1, 2008, officially
designated as a potential annexation area by a city with a population greater
than four hundred thousand, in a county with a population over one million.
(4)(a) The maximum cumulative rate of tax a city may
impose under subsection (3)(a)(i) and (ii) of this section is 0.2 percent for
the total number of annexed areas the city may annex.
(b) The maximum cumulative rate of tax a city may impose under
subsection (3)(b) of this section is 0.85 percent and for the single annexed
area the city may annex and the amount of tax distributed to a city under
subsection (3)(b) of this section shall not exceed five million dollars per
fiscal year.
(5) The tax imposed by this section shall only be imposed at the
beginning of a fiscal year and shall continue for no more than ten years from
the date the tax is first imposed. Tax rate increases due to additional
annexed areas shall be effective on July 1st of the fiscal year following the
fiscal year in which the annexation occurred, provided that notice is given to
the department as set forth in subsection (((8))) (9) of this
section.
(((5))) (6) All revenue collected under
this section shall be used solely to provide, maintain, and operate municipal
services for the annexation area.
(((6))) (7) The revenues from the tax
authorized in this section may not exceed that which the city deems necessary
to generate revenue equal to the difference between the city's cost to provide,
maintain, and operate municipal services for the annexation area and the
general revenues that the cities would otherwise expect to receive from the
annexation during a year. If the revenues from the tax authorized in this
section and the revenues from the annexation area exceed the costs to the city
to provide, maintain, and operate municipal services for the annexation area
during a given year, the city shall notify the department and the tax
distributions authorized in this section shall be suspended for the remainder
of the year.
(((7))) (8) No tax may be imposed under
this section before July 1, 2007. Before imposing a tax under this section,
the legislative authority of a city shall adopt an ordinance that includes the
following:
(a) A certification that the amount needed to provide
municipal services to the annexed area reflects the city's true and actual
costs;
(b) The rate of tax under this section that shall be imposed within
the city; and
(((b))) (c) The threshold amount for the
first fiscal year following the annexation and passage of the ordinance.
(((8))) (9) The tax shall cease to be
distributed to the city for the remainder of the fiscal year once the threshold
amount has been reached. No later than March 1st of each year, the city shall
provide the department with a certification of the city's true and actual
costs to provide municipal services to the annexed area, a new threshold
amount for the next fiscal year, and notice of any applicable tax rate
changes. Distributions of tax under this section shall begin again on July 1st
of the next fiscal year and continue until the new threshold amount has been
reached or June 30th, whichever is sooner. Any revenue generated by the tax in
excess of the threshold amount shall belong to the state of Washington. Any
amount resulting from the threshold amount less the total fiscal year
distributions, as of June 30th, shall not be carried forward to the next fiscal
year.
(((9))) (10) The tax shall cease to be
distributed to a city imposing the tax under subsection (3)(b) of this section
for the remainder of the fiscal year, if the total distributions to the city
imposing the tax exceed five million dollars for the fiscal year.
(11) The following definitions apply throughout this section unless
the context clearly requires otherwise:
(a) "Annexation area" means an area that has been annexed to a city under chapter 35.13 or 35A.14 RCW. "Annexation area" includes all territory described in the city resolution.
(b) "Department" means the department of revenue.
(c) "Municipal services" means those services customarily provided to the public by city government.
(d) "Fiscal year" means the year beginning July 1st and ending the following June 30th.
(e) "Threshold amount" means the maximum
amount of tax distributions as determined by the city in accordance with
subsection (((6))) (7) of this section that the department shall
distribute to the city generated from the tax imposed under this section in a
fiscal year.
(f) "Potential annexation area" means one or more geographic areas that a city has officially designated for potential future annexation, as part of its comprehensive plan adoption process under the state growth management act, chapter 36.70A RCW.
Sec. 4. RCW 84.55.050 and 2008 c 319 s 1 are each amended to read as follows:
(1) Subject to any otherwise applicable statutory dollar rate limitations, regular property taxes may be levied by or for a taxing district in an amount exceeding the limitations provided for in this chapter if such levy is authorized by a proposition approved by a majority of the voters of the taxing district voting on the proposition at a general election held within the district or at a special election within the taxing district called by the district for the purpose of submitting such proposition to the voters. Any election held pursuant to this section shall be held not more than twelve months prior to the date on which the proposed levy is to be made, except as provided in subsection (2) of this section. The ballot of the proposition shall state the dollar rate proposed and shall clearly state the conditions, if any, which are applicable under subsection (4) of this section.
(2)(a) Subject to statutory dollar limitations, a
proposition placed before the voters under this section may authorize annual
increases in levies for multiple consecutive years, up to six consecutive
years, during which period each year's authorized maximum legal levy shall be
used as the base upon which an increased levy limit for the succeeding year is
computed, but the ballot proposition must state the dollar rate proposed only
for the first year of the consecutive years and must state the limit factor, or
a specified index to be used for determining a limit factor, such as the
consumer price index, which need not be the same for all years, by which the
regular tax levy for the district may be increased in each of the subsequent consecutive
years. Elections for this purpose must be held at a primary or general
election. The title of each ballot measure must state the limited purposes for
which the proposed annual increases during the specified period of up to six
consecutive years shall be used((, and funds raised under the levy shall not
supplant existing funds used for these purposes)).
(b)(i) Except as otherwise provided in this subsection (3)(b), funds raised by a levy under this subsection shall not supplant existing funds used for the limited purpose specified in the ballot title. For purposes of this subsection, existing funds means the actual operating expenditures for the calendar year in which the ballot measure is approved by voters. Actual operating expenditures excludes lost federal funds, lost or expired state grants or loans, extraordinary events not likely to reoccur, changes in contract provisions beyond the control of the taxing district receiving the services, and major nonrecurring capital expenditures.
(ii) The supplanting limitations in (b)(i) of this subsection do not apply to levies approved by the voters in 2009, 2010, and 2011, in any county with a population of one million five hundred thousand or more.
(iii) The supplanting limitations in (b)(i) of this subsection do not apply to levies approved by the voters in any county with a population less than one million five hundred thousand.
(3) After a levy authorized pursuant to this section is made, the dollar amount of such levy may not be used for the purpose of computing the limitations for subsequent levies provided for in this chapter, unless the ballot proposition expressly states that the levy made under this section will be used for this purpose.
(4) If expressly stated, a proposition placed before the voters under subsection (1) or (2) of this section may:
(a) Use the dollar amount of a levy under subsection (1) of this section, or the dollar amount of the final levy under subsection (2) of this section, for the purpose of computing the limitations for subsequent levies provided for in this chapter;
(b) Limit the period for which the increased levy is to be made under (a) of this subsection;
(c) Limit the purpose for which the increased levy is to be made under (a) of this subsection, but if the limited purpose includes making redemption payments on bonds, the period for which the increased levies are made shall not exceed nine years;
(d) Set the levy or levies at a rate less than the maximum rate allowed for the district; or
(e) Include any combination of the conditions in this subsection.
(5) Except as otherwise expressly stated in an approved ballot measure under this section, subsequent levies shall be computed as if:
(a) The proposition under this section had not been approved; and
(b) The taxing district had made levies at the maximum rates which would otherwise have been allowed under this chapter during the years levies were made under the proposition.
NEW SECTION. Sec. 5. (1) A county may adopt an ordinance creating a rural infrastructure improvement and service district in all of the unincorporated area of the county. The ordinance creating the district may only be adopted after a public hearing has been held on the creation of the district and the county legislative body makes a finding that it is in the public interest to create the district. The members of the county legislative body, acting in an ex officio capacity and independently, shall compose the governing body of a county utility service district.
(2) A rural infrastructure improvement and service district is a quasi-municipal corporation and an independent taxing "authority" within the meaning of Article VII, section 1 of the state Constitution.
(3) A rural infrastructure improvement and service district shall have the authority to contract under chapter 39.34 RCW with a county, city, town, or other municipality for the provision of services and capital projects within the district.
NEW SECTION. Sec. 6. (1) A rural infrastructure improvement and service district may impose an excise tax on the privilege of engaging in business as a utility. The tax is equal to the gross income of the business derived from providing service within the district, multiplied by a rate not exceeding six percent.
(2) A rural infrastructure improvement and service district must use taxes collected under the authority of this section only for capital projects and services provided within the district.
(3) A utility subject to tax under this section must add the tax to the rates or charges it makes for utility services and separately state the amount of tax on billings.
(4) The definitions in this subsection apply to this section.
(a) "Cable service utility" means a person providing cable service as defined in the federal telecommunications act of 1996.
(b) "Electrical power utility" has the same meaning as light and power business as defined in RCW 82.16.010.
(c) "Gas utility" has the same meaning as gas distribution business as defined in RCW 82.16.010.
(d) "Gross income of the business" is defined as provided in RCW 82.04.080.
(e) "Sewer utility" means a sewerage collection business as defined in RCW 82.16.020.
(f) "Solid waste utility" means a solid waste collection business as defined in RCW 82.18.010.
(g) "Telephone utility" means a person providing telecommunications service as defined in RCW 82.04.065.
(h) "Water utility" means a water distribution business as defined in RCW 82.16.010.
(i) "Utility" means an electrical power utility, gas utility, telephone utility, water utility, sewer utility, solid waste utility, or cable service utility.
(5) A rural infrastructure improvement and service district may provide exemptions for sales by utilities to business customers, such as, manufacturing facilities, aircraft repair facilities, industrial parks, industrial facilities, farm businesses, and computer data centers. A district may not provide a general exemption for sales by utilities to residential customers unless business customers are also exempt.
(6) A rural infrastructure improvement and service district must allow a credit against the cable service utility tax for any franchise fee paid by the cable service utility to the county.
(7) A rural infrastructure improvement and service district located in a county with a population of one million five hundred thousand or more may not impose the tax authorize under this section after January 1, 2012.
Sec. 7. RCW 36.54.130 and 2007 c 223 s 6 are each amended to read as follows:
(1) To carry out the purposes for which ferry districts are created, the governing body of a ferry district may levy each year an ad valorem tax on all taxable property located in the district not to exceed seventy-five cents per thousand dollars of assessed value, except a county with a population of one million five hundred thousand or more may not levy at a rate that exceeds seven and one-half percent. The levy must be sufficient for the provision of ferry services as shown to be required by the budget prepared by the governing body of the ferry district.
(2) A tax imposed under this section may be used only for:
(a) Providing ferry services, including the purchase, lease, or rental of ferry vessels and dock facilities;
(b) The operation, maintenance, and improvement of ferry vessels and dock facilities;
(c) Providing shuttle services between the ferry terminal and passenger parking facilities, and other landside improvements directly related to the provision of passenger‑only ferry service; and
(d) Related personnel costs.
Sec. 8. A new section is added to chapter 84.52 RCW to read as follows:
(1) A county with a population of one million five hundred thousand or more may impose an additional regular property tax levy in an amount not to exceed seven and one-half cents per thousand dollars of the assessed value of property in the county in accordance with the terms of this section.
(2) Any tax imposed under this section shall be used as follows:
(a) Thirteen and one-third percent for expanding transit capacity along state route 520 by adding core and other supporting bus routes;
(b) The remainder for transit related expenditures.
(3) The limitations in RCW 84.52.043 do not apply to the tax authorized in this section.
(4) The limitation in RCW 84.55.010 does not apply to the first tax levy imposed under this section.
Sec. 9. RCW 84.52.043 and 2005 c 122 s 3 are each amended to read as follows:
Within and subject to the limitations imposed by RCW 84.52.050 as amended, the regular ad valorem tax levies upon real and personal property by the taxing districts hereafter named shall be as follows:
(1) Levies of the senior taxing districts shall be as follows: (a) The levy by the state shall not exceed three dollars and sixty cents per thousand dollars of assessed value adjusted to the state equalized value in accordance with the indicated ratio fixed by the state department of revenue to be used exclusively for the support of the common schools; (b) the levy by any county shall not exceed one dollar and eighty cents per thousand dollars of assessed value; (c) the levy by any road district shall not exceed two dollars and twenty-five cents per thousand dollars of assessed value; and (d) the levy by any city or town shall not exceed three dollars and thirty-seven and one-half cents per thousand dollars of assessed value. However any county is hereby authorized to increase its levy from one dollar and eighty cents to a rate not to exceed two dollars and forty-seven and one-half cents per thousand dollars of assessed value for general county purposes if the total levies for both the county and any road district within the county do not exceed four dollars and five cents per thousand dollars of assessed value, and no other taxing district has its levy reduced as a result of the increased county levy.
(2) The aggregate levies of junior taxing districts and
senior taxing districts, other than the state, shall not exceed five dollars
and ninety cents per thousand dollars of assessed valuation. The term
"junior taxing districts" includes all taxing districts other than
the state, counties, road districts, cities, towns, port districts, and public
utility districts. The limitations provided in this subsection shall not apply
to: (a) Levies at the rates provided by existing law by or for any port or
public utility district; (b) excess property tax levies authorized in Article
VII, section 2 of the state Constitution; (c) levies for acquiring conservation
futures as authorized under RCW 84.34.230; (d) levies for emergency medical
care or emergency medical services imposed under RCW 84.52.069; (e) levies to
finance affordable housing for very low-income housing imposed under RCW
84.52.105; (f) the portions of levies by metropolitan park districts that are protected
under RCW 84.52.120; (g) levies imposed by ferry districts under RCW 36.54.130;
(h) levies for criminal justice purposes under RCW 84.52.135; ((and))
(i) the portions of levies by fire protection districts that are protected
under RCW 84.52.125; and levies by counties for transit related purposes
under section 5 of this act.
Sec. 10. RCW 84.52.010 and 2007 c 54 s 26 are each amended to read as follows:
Except as is permitted under RCW 84.55.050, all taxes shall be levied or voted in specific amounts.
The rate percent of all taxes for state and county purposes, and purposes of taxing districts coextensive with the county, shall be determined, calculated and fixed by the county assessors of the respective counties, within the limitations provided by law, upon the assessed valuation of the property of the county, as shown by the completed tax rolls of the county, and the rate percent of all taxes levied for purposes of taxing districts within any county shall be determined, calculated and fixed by the county assessors of the respective counties, within the limitations provided by law, upon the assessed valuation of the property of the taxing districts respectively.
When a county assessor finds that the aggregate rate of tax levy on any property, that is subject to the limitations set forth in RCW 84.52.043 or 84.52.050, exceeds the limitations provided in either of these sections, the assessor shall recompute and establish a consolidated levy in the following manner:
(1) The full certified rates of tax levy for state,
county, county road district, and city or town purposes shall be extended on
the tax rolls in amounts not exceeding the limitations established by law;
however any state levy shall take precedence over all other levies and shall
not be reduced for any purpose other than that required by RCW 84.55.010. If,
as a result of the levies imposed under RCW 36.54.130, 84.34.230, 84.52.069,
84.52.105, the portion of the levy by a metropolitan park district that was
protected under RCW 84.52.120, 84.52.125, ((and)) 84.52.135, and
section 8 of this act, the combined rate of regular property tax levies
that are subject to the one percent limitation exceeds one percent of the true
and fair value of any property, then these levies shall be reduced as follows:
(a) The levy imposed by a county under section 8 of this act shall be reduced until the combined rate no longer exceeds one percent of the true and fair value of any property or shall be eliminated;
(b) If the combined rate of regular property tax levies that are subject to the one percent limitation still exceeds one percent of the true and fair value of any property, the portion of the levy by a fire protection district that is protected under RCW 84.52.125 shall be reduced until the combined rate no longer exceeds one percent of the true and fair value of any property or shall be eliminated;
(b) If the combined rate of regular property tax levies that are subject to the one percent limitation still exceeds one percent of the true and fair value of any property, the levy imposed by a county under RCW 84.52.135 must be reduced until the combined rate no longer exceeds one percent of the true and fair value of any property or must be eliminated;
(c) If the combined rate of regular property tax levies that are subject to the one percent limitation still exceeds one percent of the true and fair value of any property, the levy imposed by a ferry district under RCW 36.54.130 must be reduced until the combined rate no longer exceeds one percent of the true and fair value of any property or must be eliminated;
(d) If the combined rate of regular property tax levies that are subject to the one percent limitation still exceeds one percent of the true and fair value of any property, the portion of the levy by a metropolitan park district that is protected under RCW 84.52.120 shall be reduced until the combined rate no longer exceeds one percent of the true and fair value of any property or shall be eliminated;
(e) If the combined rate of regular property tax levies that are subject to the one percent limitation still exceeds one percent of the true and fair value of any property, then the levies imposed under RCW 84.34.230, 84.52.105, and any portion of the levy imposed under RCW 84.52.069 that is in excess of thirty cents per thousand dollars of assessed value, shall be reduced on a pro rata basis until the combined rate no longer exceeds one percent of the true and fair value of any property or shall be eliminated; and
(f) If the combined rate of regular property tax levies that are subject to the one percent limitation still exceeds one percent of the true and fair value of any property, then the thirty cents per thousand dollars of assessed value of tax levy imposed under RCW 84.52.069 shall be reduced until the combined rate no longer exceeds one percent of the true and fair value of any property or eliminated.
(2) The certified rates of tax levy subject to these limitations by all junior taxing districts imposing taxes on such property shall be reduced or eliminated as follows to bring the consolidated levy of taxes on such property within the provisions of these limitations:
(a) First, the certified property tax levy rates of those junior taxing districts authorized under RCW 36.68.525, 36.69.145, 35.95A.100, and 67.38.130 shall be reduced on a pro rata basis or eliminated;
(b) Second, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates of flood control zone districts shall be reduced on a pro rata basis or eliminated;
(c) Third, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates of all other junior taxing districts, other than fire protection districts, regional fire protection service authorities, library districts, the first fifty cent per thousand dollars of assessed valuation levies for metropolitan park districts, and the first fifty cent per thousand dollars of assessed valuation levies for public hospital districts, shall be reduced on a pro rata basis or eliminated;
(d) Fourth, if the consolidated tax levy rate still exceeds these limitations, the first fifty cent per thousand dollars of assessed valuation levies for metropolitan park districts created on or after January 1, 2002, shall be reduced on a pro rata basis or eliminated;
(e) Fifth, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates authorized to fire protection districts under RCW 52.16.140 and 52.16.160 and regional fire protection service authorities under RCW 52.26.140(1) (b) and (c) shall be reduced on a pro rata basis or eliminated; and
(f) Sixth, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates authorized for fire protection districts under RCW 52.16.130, regional fire protection service authorities under RCW 52.26.140(1)(a), library districts, metropolitan park districts created before January 1, 2002, under their first fifty cent per thousand dollars of assessed valuation levy, and public hospital districts under their first fifty cent per thousand dollars of assessed valuation levy, shall be reduced on a pro rata basis or eliminated.
Sec. 11. RCW 47.26.086 and 1994 c 179 s 11 are each amended to read as follows:
(1) Transportation improvement account projects selected for funding programs after fiscal year 1995 are governed by the requirements of this section.
(2) The board shall allocate funds from the account by June 30th of each year for the ensuing fiscal year to urban counties, cities with a population of five thousand and over, and to transportation benefit districts. Projects may include, but are not limited to, multi-agency projects and arterial improvement projects in fast-growing areas. The board shall endeavor to provide geographical diversity in selecting improvement projects to be funded from the account.
(3) The intent of the program is to improve mobility of people and goods in Washington state by supporting economic development and environmentally responsive solutions to our statewide transportation system needs.
(4) To be eligible to receive these funds, a project must be consistent with the Growth Management Act, the Clean Air Act including conformity, and the Commute Trip Reduction Law and consideration must have been given to the project's relationship, both actual and potential, with the statewide rail passenger program and rapid mass transit. Projects must be consistent with any adopted high capacity transportation plan, must consider existing or reasonably foreseeable congestion levels attributable to economic development or growth and all modes of transportation and safety, and must be partially funded by local government or private contributions, or a combination of such contributions. Priority consideration shall be given to those projects with the greatest percentage of local or private contribution, or both.
(5) A city or town located within a county with a population of one million five hundred thousand or more may not qualify for new grants after December 31, 2011, unless: (a) All potential annexation areas have been annexed prior to January 1, 2012; or (b) the voter's within remaining potential annexation areas have rejected annexation. This subsection only applies to potential annexation areas that are: (a) Recognized in the city or town's comprehensive plan or related document as such plan or related document exists on the effective date of this act; and (b) estimated to have a population in excess of four thousand.
Within one year after board approval of an application for funding, the lead agency shall provide written certification to the board of the pledged local and private funding for the phase of the project approved. Funds allocated to an applicant that does not certify its funding within one year after approval may be reallocated by the board.
NEW SECTION. Sec. 12. A new section is added to chapter 43.155 RCW to read as follows:
A city or town located within a county with a population of one million five hundred thousand or more may not qualify for new loans or pledges after December 31, 2011, unless: (a) All potential annexation areas have been annexed prior to January 1, 2012; or (b) the voter's within remaining potential annexation areas have rejected annexation. This section only applies to potential annexation areas that are: (a) Recognized in the city or town's comprehensive plan or related document as such plan or related document exists on the effective date of this act; and (b) estimated to have a population in excess of four thousand.
NEW SECTION. Sec. 13. A new section is added to chapter 35.21 RCW to read as follows:
(1) Subject to the requirements of this section, a city or town located partially or wholly within a county with a population of one million five hundred thousand or more may impose a tax upon the gross income or gross receipts of a water-sewer district.
(2) A city or town imposing the tax authorized under this section may not impose a rate of tax that exceeds six percent.
(3)(a) A city or town may not impose the tax authorized under this section unless: (a) All potential annexation areas have been annexed prior to January 1, 2012; or (b) the voter's within remaining potential annexation areas have rejected annexation. This subsection only applies to potential annexation areas that are: (a) Recognized in the city or town's comprehensive plan or related document as such plan or related document exists on the effective date of this act; and (b) estimated to have a population in excess of four thousand.
NEW SECTION. Sec. 14. A new section is added to chapter 43.09 RCW to read as follows:
(1) By January 1, 2011, the state auditor shall conduct a performance audit of any county with a population of one million five hundred thousand or more to specifically determine whether policy changes and programs the county has adopted since January 1, 2009, will effectively reduce overhead and other costs, improve services, and streamline operations. The performance audit must identify current deficiencies in recognized best practices in the provision of county goods and services and how the provision of these goods and services could be provided more efficiently and effectively. As part of the performance audit, the auditor shall also evaluate the amount of local and regional services provided by the county within and outside city limits and contrast this with other large counties in Washington and with counties of similar size in other states. The state auditor shall use money distributed to the auditor under RCW 82.08.020(5) to pay for the performance audit required under this section.
(2) This section expires January 1, 2012.
NEW SECTION. Sec. 15. Sections 5 and 6 constitute a new chapter to be added to Title 36 RCW.
NEW SECTION. Sec. 16. Section 2 of this act expires July 1, 2014."
EFFECT: Allows the mental health/chemical dependency sales and use tax to partially supplant existing funds in counties with a population less than 1.5 million. Allows for the creation of rural infrastructure improvement and service (RIIS) districts in unincorporated areas of counties. Allows a RIIS district to impose a tax on utilities. Allows cities in King County to impose utility taxes on water-sewer districts. Requires the state auditor to do a performance audit of King County. Requires cities within King County to annex or attempt to annex large potential annexation areas in order to apply for TIB and public works trust fund grants and loans. Limits the ferry district property tax in King County to 7.5 cents. Authorizes an additional property tax in King County of 7.5 cents to fund transit projects.
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