BILL REQ. #:  H-1707.2 

Read first time 02/17/09.   Referred to Committee on Transportation.

     AN ACT Relating to establishing a financing policy to build the state route number 520 floating bridge first using previously allocated funding; amending RCW 47.56.785, 47.01.412, and 47.01.417; amending 2008 c 270 s 1 (uncodified); adding a new section to chapter 47.01 RCW; adding a new section to chapter 47.56 RCW; and declaring an emergency.

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

Sec. 1   2008 c 270 s 1 (uncodified) is amended to read as follows:
     The legislature finds that the replacement of the vulnerable state route number 520 bridge is a matter of urgency for the safety of Washington's traveling public and the needs of the transportation system in central Puget Sound. The state route number 520 bridge is forty-four years old and has a useful remaining life of between thirteen and eighteen years. While one hundred fifteen thousand vehicles travel on the bridge each day, there is an ever present likelihood that wind or an earthquake could suddenly destroy the bridge or render it unusable. Therefore, the state must ((develop a comprehensive approach to fund a state route number 520 bridge replacement to be constructed by 2018)) use funding identified for the state route number 520 bridge to replace the floating bridge first and have the bridge open to traffic by 2014 as promised by the governor during the 2008 legislative session.

NEW SECTION.  Sec. 2   A new section is added to chapter 47.01 RCW to read as follows:
     (1) The department shall utilize funding of one billion nine hundred fifty-five million dollars for the state route number 520 bridge replacement and HOV project to construct the floating bridge replacement section of the project first using the design identified in RCW 47.01.408.
     (2) Any remaining funding after construction of the floating bridge section must be used to finance remaining portions of the project.

NEW SECTION.  Sec. 3   A new section is added to chapter 47.56 RCW to read as follows:
     (1) The legislature declares that only postconstruction tolls will be used to finance in part the remaining portions of the state route number 520 project after construction of the floating bridge. Any tolls authorized by the legislature and collected on state route number 520 are subject to the conditions in subsection (2) of this section.
     (2) All revenue from tolling the replacement state route number 520 bridge must be used only on state route number 520 between Interstate 5 and Interstate 405 for highway purposes consistent with Article II, section 40 of the state Constitution.

Sec. 4   RCW 47.56.785 and 2008 c 270 s 4 are each amended to read as follows:
     (1) Following the submission of the report required in section 6, chapter 270, Laws of 2008, the department may seek authorization from the legislature to collect tolls ((on the existing state route number 520 bridge or)) on a replacement state route number 520 bridge.
     (2) The schedule of toll charges must be established by the transportation commission and collected in a manner determined by the department.

Sec. 5   RCW 47.01.412 and 2008 c 270 s 7 are each amended to read as follows:
     (1)(a) Any person involved in the construction of the state route number 520 bridge replacement and HOV project may apply for ((deferral of)) an exemption from state and local sales and use taxes on the site preparation for, the construction of, the acquisition of any related machinery and equipment that will become a part of, and the rental of equipment for use in, the project.
     (b) Application shall be made to the department of revenue in a form and manner prescribed by the department of revenue. The application must contain information regarding estimated or actual costs, time schedules for completion and operation, and other information required by the department of revenue. The department of revenue shall approve the application within sixty days if it meets the requirements of this section.
     (2) The department of revenue shall issue a sales and use tax ((deferral)) exemption certificate for state and local sales and use taxes imposed or authorized under chapters 82.08, 82.12, and 82.14 RCW and RCW 81.104.170 on the project.
     (3) ((A person granted a tax deferral under this section shall begin paying the deferred taxes in the fifth year after the date certified by the department of revenue as the date on which the project is operationally complete. The project is operationally complete under this section when the replacement bridge is constructed and opened to traffic. The first payment is due on December 31st of the fifth calendar year after the certified date, with subsequent annual payments due on December 31st of the following nine years. Each payment shall equal ten percent of the deferred tax.
     (4) The department of revenue may authorize an accelerated repayment schedule upon request of a person granted a deferral under this section.
     (5) Interest shall not be charged on any taxes deferred under this section for the period of deferral, although all other penalties and interest applicable to delinquent excise taxes may be assessed and imposed for delinquent payments under this section. The debt for deferred taxes is not extinguished by insolvency or other failure of any private entity granted a deferral under this section.
     (6))) Applications and any other information received by the department of revenue under this section are not confidential and are subject to disclosure. Chapter 82.32 RCW applies to the administration of this section.
     (((7))) (4) For purposes of this section, "person" has the same meaning as in RCW 82.04.030 and also includes the department of transportation.

Sec. 6   RCW 47.01.417 and 2008 c 270 s 3 are each amended to read as follows:
     The state route number 520 bridge replacement and HOV project finance plan must include:
     (1) Recognition of revenue sources that include: One billion ((seven)) nine hundred fifty-five million dollars in state and federal funds allocated to the project; ((one billion five hundred million dollars to two billion dollars in tolling revenue, including early tolls that could begin in late 2009; eighty-five million dollars in federal urban partnership grant funds)) tolling revenue; and other contributions from private and other government sources; and
     (2) Recognition of savings to be realized from:
     (a) Potential early construction of traffic improvements from the eastern Lake Washington shoreline to 108th Avenue Northeast in Bellevue;
     (b) Early construction of a ((single)) string of pontoons to support two lanes that are for transit and high-occupancy vehicle travel ((and)), four general purpose lanes, and additional capacity in the future without additional retrofitting or construction; and
     (c) ((Preconstruction tolling to reduce total financing costs; and
     (d) A deferral)) An exemption of the sales taxes paid on construction costs.

NEW SECTION.  Sec. 7   This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.