SENATE BILL REPORT

SB 5353

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Background: A public transportation benefit area (PTBA) is a federated special purpose district authorized to provide public transit services and facilities. A PTBA is a federation of two or more counties or cities that is created as a regional government. There are 28 public transit operating systems in Washington, and 20 of these systems are PTBAs.

Sales and use taxes are the primary source of revenue for PTBAs. Voters of a PTBA may approve a ballot proposition authorizing the PTBA to impose sales and use taxes of up to 0.9 percent within the PTBA on the same tax base as the state's sales and use taxes. Voters of PTBAs located outside of central Puget Sound may impose additional taxes with voter approval.

A PTBA may annex an area that is contiguous with the PTBA if voters residing in the area approve a ballot proposition authorizing annexation. The ballot proposition is submitted to voters through a resolution of the governing body of the PTBA or by a petition signed by at least 4 percent of the voters residing in the area to be annexed. If the area proposed to be annexed is located in another city or county, the area may be annexed only if the county legislative authority of the other county approves annexation of any unincorporated area or the governing body of a city approves inclusion of the city.

Summary of Bill: The governing body of a PTBA may authorize the annexation of territory through a resolution. Annexation through resolution is subject to the following conditions: (1) a PTBA proposing to annex territory must conduct a public hearing prior to the passage of a resolution, and (2) a resolution does not take effect for at least 30 days after it has passed. If, within 30 days of the passage of a resolution, a petition calling for an election to authorize the annexation is signed by at least 4 percent of the voters residing within the area to be annexed, the resolution does not take effect until the annexation is authorized through an election.

Annexation through resolution is available in addition to annexation through a ballot proposition submitted to voters through a resolution of the governing body of the PTBA or by a petition signed by at least 4 percent of the voters residing in the area to be annexed.

Staff Summary of Public Testimony: PRO: PTBAs tend to form around cities, and there are many areas between PTBAs that would be great locations for services. There are areas along the I-5 corridor that do not have businesses to tax, but the areas would be great locations for park and rides. In addition, these areas could use PTBA services.