"NEW SECTION.  Sec. 1   It is the intent of the legislature to impose tolls on the state route number 520 floating bridge subject to section 2 of this act, to help finance construction of critical safety projects, including replacement of the floating bridge, and to generate additional funds to help finance associated projects in the state route number 520 corridor program.
     It is further the intent of the legislature to expedite the floating bridge replacement project, at a cost not to exceed one billion eight hundred fifty million dollars, in a manner that does not preclude local design options on either side of the state route number 520 corridor. For all projects in the state route number 520 corridor program, the legislature intends that one billion seven hundred million dollars will be provided through the issuance of bonds backed by toll revenue, and that this act provide for the funding of one billion two hundred million dollars of these bonds.
     It is further the intent of the legislature to resolve the remaining local design issues and to complete the program's finance plan so that all of the projects in the state route number 520 corridor program can be constructed as soon as possible. The manner in which these issues are to be resolved is prescribed in section 3 of this act.
     It is further the intent of the legislature that if the tolls on the state route number 520 corridor significantly alter the performance of nearby facilities, the legislature will reconsider the tolling policy for the corridor.
     It is further the intent of the legislature that the department of transportation applies for federal stimulus funds for projects in the corridor.

NEW SECTION.  Sec. 2   A new section is added to chapter 47.56 RCW under the subchapter heading "toll facilities created after July 1, 2008" to read as follows:
     (1) The initial imposition of tolls on the state route number 520 corridor is authorized, the state route number 520 corridor is designated an eligible toll facility, and toll revenue generated in the corridor must only be expended as allowed under RCW 47.56.820.
     (2) The state route number 520 corridor consists of that portion of state route number 520 between the junctions of Interstate 5 and state route number 202, which consists of, on the west side of the corridor, connections from Interstate 5 to the floating bridge, the floating bridge and approaches, and on the east side of the corridor, from the east end of the floating bridge to state route number 202. The toll imposed by this section shall be charged only for travel on the floating bridge portion of the state route number 520 corridor.
     (3)(a) In setting the toll rates for the corridor pursuant to RCW 47.56.850, the tolling authority shall set a variable schedule of toll rates to maintain travel time, speed, and reliability on the corridor and generate the necessary revenue as required under (b) of this subsection.
     (b) The tolling authority shall initially set the variable schedule of toll rates, which the tolling authority may adjust annually to reflect inflation as measured by the consumer price index or as necessary to meet the redemption of bonds and interest payments on the bonds, to generate revenue sufficient to provide for:
     (i) The issuance of up to one billion two hundred million dollars in motor vehicle fuel tax general obligation bonds; and
     (ii) Costs associated with the project designated in subsection (4) of this section that are eligible under RCW 47.56.820.
     (4) The proceeds of the bonds designated in subsection (3)(b)(i) of this section, which together with other appropriated and identified state and federal funds is more than sufficient to pay for the replacement of the state route number 520 floating bridge, must be used only to fund:
     (a) The construction of a replacement state route number 520 floating bridge; and
     (b) The construction of other projects in the state route number 520 corridor program.
     (5) The state toll agency may carry out the construction and improvements designated in subsection (4) of this section and administer the tolling program on the state route number 520 corridor.

NEW SECTION.  Sec. 3   A new section is added to chapter 47.56 RCW to read as follows:
     (1) The state route number 520 executive oversight committee is created. The committee shall consist of the following members:
     (a) The governor;
     (b) The chairs of the house and senate transportation committees;
     (c) The legislators from the forty-third and forty-eighth legislative districts;
     (d) One legislator from the forty-sixth legislative district selected by the governor; and
     (e) One legislator from the forty-fifth legislative district selected by the governor.
     (2) The oversight committee shall work to resolve the remaining local design issues related to the state route number 520 replacement project and to complete a finance plan so that all of the projects in the state route number 520 corridor program can be constructed as soon as possible. The oversight committee must consider the design elements outlined in options A and K, or a combination of elements from those options, as a starting point for discussion. The oversight committee shall provide an initial report of its work to the legislature in January 2010 and a final report with recommendations to the legislature by January 2011.
     (3) As part of the development of its recommendations, the oversight committee shall consult with the participants of the state route number 520 mediation process.
     (4) The department of transportation shall serve as staff to the oversight committee and must complete the following activities:
     (a) Conduct value engineering on the high cost elements of the state route number 520 replacement project;
     (b) Conduct a project permitting risk assessment;
     (c) Update the project cost estimate using the cost estimate valuation process;
     (d) Publish the supplemental draft environment impact statement and provide a summary of public comments; and
     (e) Develop financing options for the remaining costs of the project.

NEW SECTION.  Sec. 4   A new section is added to chapter 47.56 RCW under the subchapter heading "toll facilities created after July 1, 2008" to read as follows:
     Unless otherwise delegated, the department is the state toll agency with the authority to administer tolling programs on eligible toll facilities, including the state route number 520 corridor. The state toll agency may adopt and amend rules to govern operations, collections, and enforcement on each eligible toll facility. In implementing tolling programs, the state toll agency may (1) collect and retain any toll charges and penalties imposed, (2) issue toll bills and notices of infraction, (3) use available resources to collect unpaid toll charges, including forwarding unpaid infractions to the department of licensing pursuant to RCW 46.20.270(3) and assigning the unpaid infractions to collection agencies under RCW 19.16.500, (4) allocate administrative fees and infraction charges to the toll facilities on which the fees and charges were incurred, (5) resolve disputes involving toll charges, and (6) procure and sell transponders or enter into contracts and license agreements to procure and sell transponders as necessary for the operation of electronic toll collection systems on eligible toll facilities.

NEW SECTION.  Sec. 5   A new section is added to chapter 47.56 RCW under the subchapter heading "toll facilities created after July 1, 2008" to read as follows:
     A special account to be known as the state route number 520 corridor account is created in the state treasury.
     (1) Deposits to the account must include:
     (a) All proceeds of bonds issued for construction of the state route number 520 corridor, including any capitalized interest;
     (b) All of the tolls and other revenues received from the operation of the state route number 520 corridor as a toll facility, to be deposited at least monthly;
     (c) Any interest that may be earned from the deposit or investment of those revenues;
     (d) Notwithstanding RCW 47.12.063, proceeds from the sale of any surplus real property acquired for the purpose of building the replacement state route number 520 floating bridge or the construction of other projects on the state route number 520 corridor; and
     (e) All damages, liquidated or otherwise, collected under any contract involving the construction of projects on the state route number 520 corridor.
     (2) Subject to the covenants made by the state in the bond proceedings authorizing the issuance and sale of bonds for the state route number 520 corridor projects, toll charges, other revenues, and interest received from the operation of the state route number 520 corridor as a toll facility may be used to:
     (a) Pay any required costs allowed under RCW 47.56.820; and
     (b) Repay amounts to the motor vehicle fund as required.
     (3) When repaying the motor vehicle fund, the state treasurer shall transfer funds from the state route number 520 corridor account to the motor vehicle fund on or before each debt service date for bonds issued for the replacement state route number 520 floating bridge project or the construction of other projects on the state route number 520 corridor in an amount sufficient to repay the motor vehicle fund for amounts transferred from that fund to the highway bond retirement fund to provide for any bond principal and interest due on that date. The state treasurer may establish subaccounts for the purpose of segregating toll charges, bond sale proceeds, and other revenues.

Sec. 6   RCW 43.84.092 and 2008 c 128 s 19 and 2008 c 106 s 4 are each reenacted and amended to read as follows:
     (1) All earnings of investments of surplus balances in the state treasury shall be deposited to the treasury income account, which account is hereby established in the state treasury.
     (2) The treasury income account shall be utilized to pay or receive funds associated with federal programs as required by the federal cash management improvement act of 1990. The treasury income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for refunds or allocations of interest earnings required by the cash management improvement act. Refunds of interest to the federal treasury required under the cash management improvement act fall under RCW 43.88.180 and shall not require appropriation. The office of financial management shall determine the amounts due to or from the federal government pursuant to the cash management improvement act. The office of financial management may direct transfers of funds between accounts as deemed necessary to implement the provisions of the cash management improvement act, and this subsection. Refunds or allocations shall occur prior to the distributions of earnings set forth in subsection (4) of this section.
     (3) Except for the provisions of RCW 43.84.160, the treasury income account may be utilized for the payment of purchased banking services on behalf of treasury funds including, but not limited to, depository, safekeeping, and disbursement functions for the state treasury and affected state agencies. The treasury income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for payments to financial institutions. Payments shall occur prior to distribution of earnings set forth in subsection (4) of this section.
     (4) Monthly, the state treasurer shall distribute the earnings credited to the treasury income account. The state treasurer shall credit the general fund with all the earnings credited to the treasury income account except:
     The following accounts and funds shall receive their proportionate share of earnings based upon each account's and fund's average daily balance for the period: The aeronautics account, the aircraft search and rescue account, the budget stabilization account, the capitol building construction account, the Cedar River channel construction and operation account, the Central Washington University capital projects account, the charitable, educational, penal and reformatory institutions account, the cleanup settlement account, the Columbia river basin water supply development account, the common school construction fund, the county arterial preservation account, the county criminal justice assistance account, the county sales and use tax equalization account, the data processing building construction account, the deferred compensation administrative account, the deferred compensation principal account, the department of licensing services account, the department of retirement systems expense account, the developmental disabilities community trust account, the drinking water assistance account, the drinking water assistance administrative account, the drinking water assistance repayment account, the Eastern Washington University capital projects account, the education construction fund, the education legacy trust account, the election account, the energy freedom account, the essential rail assistance account, The Evergreen State College capital projects account, the federal forest revolving account, the ferry bond retirement fund, the freight congestion relief account, the freight mobility investment account, the freight mobility multimodal account, the grade crossing protective fund, the health services account, the public health services account, the health system capacity account, the personal health services account, the high capacity transportation account, the state higher education construction account, the higher education construction account, the highway bond retirement fund, the highway infrastructure account, the highway safety account, the high occupancy toll lanes operations account, the industrial insurance premium refund account, the judges' retirement account, the judicial retirement administrative account, the judicial retirement principal account, the local leasehold excise tax account, the local real estate excise tax account, the local sales and use tax account, the medical aid account, the mobile home park relocation fund, the motor vehicle fund, the motorcycle safety education account, the multimodal transportation account, the municipal criminal justice assistance account, the municipal sales and use tax equalization account, the natural resources deposit account, the oyster reserve land account, the pension funding stabilization account, the perpetual surveillance and maintenance account, the public employees' retirement system plan 1 account, the public employees' retirement system combined plan 2 and plan 3 account, the public facilities construction loan revolving account beginning July 1, 2004, the public health supplemental account, the public transportation systems account, the public works assistance account, the Puget Sound capital construction account, the Puget Sound ferry operations account, the Puyallup tribal settlement account, the real estate appraiser commission account, the recreational vehicle account, the regional mobility grant program account, the resource management cost account, the rural arterial trust account, the rural Washington loan fund, the safety and education account, the site closure account, the small city pavement and sidewalk account, the special category C account, the special wildlife account, the state employees' insurance account, the state employees' insurance reserve account, the state investment board expense account, the state investment board commingled trust fund accounts, the state patrol highway account, the state route number 520 corridor account, the supplemental pension account, the Tacoma Narrows toll bridge account, the teachers' retirement system plan 1 account, the teachers' retirement system combined plan 2 and plan 3 account, the tobacco prevention and control account, the tobacco settlement account, the transportation 2003 account (nickel account), the transportation equipment fund, the transportation fund, the transportation improvement account, the transportation improvement board bond retirement account, the transportation infrastructure account, the transportation partnership account, the traumatic brain injury account, the tuition recovery trust fund, the University of Washington bond retirement fund, the University of Washington building account, the urban arterial trust account, the volunteer firefighters' and reserve officers' relief and pension principal fund, the volunteer firefighters' and reserve officers' administrative fund, the Washington fruit express account, the Washington judicial retirement system account, the Washington law enforcement officers' and firefighters' system plan 1 retirement account, the Washington law enforcement officers' and firefighters' system plan 2 retirement account, the Washington public safety employees' plan 2 retirement account, the Washington school employees' retirement system combined plan 2 and 3 account, the Washington state health insurance pool account, the Washington state patrol retirement account, the Washington State University building account, the Washington State University bond retirement fund, the water pollution control revolving fund, and the Western Washington University capital projects account. Earnings derived from investing balances of the agricultural permanent fund, the normal school permanent fund, the permanent common school fund, the scientific permanent fund, and the state university permanent fund shall be allocated to their respective beneficiary accounts. All earnings to be distributed under this subsection (4)(((a))) shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.
     (5) In conformance with Article II, section 37 of the state Constitution, no treasury accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

NEW SECTION.  Sec. 7   This act takes effect August 1, 2009."