BILL REQ. #:  S-1600.1 

Read first time 02/19/09.   Referred to Committee on Transportation.

     AN ACT Relating to regional transportation accountability boards; amending RCW 81.112.040, 47.56.031, 47.56.075, 82.14.430, 82.80.005, 82.80.030, 82.80.100, 82.80.120, 35.21.718, and 82.16.046; reenacting and amending RCW 81.100.060; adding a new section to chapter 82.04 RCW; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; adding a new section to chapter 36.120 RCW; adding a new chapter to Title 36 RCW; creating new sections; repealing RCW 47.80.060; and declaring an emergency.

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

NEW SECTION.  Sec. 1   SHORT TITLE. This act may be known and cited as the regional transportation accountability act.

NEW SECTION.  Sec. 2   FINDINGS AND PURPOSES. (1) The legislature finds that:
     (a) The Puget Sound region and certain counties that border on adjoining states or a foreign country are experiencing severe strains on their transportation systems, causing widespread congestion;
     (b) The absence of a unified regional transportation governance system has significantly contributed to the lack of accountability for regional transportation planning, prioritization, and funding;
     (c) There is a substantial funding shortfall to address regional transportation needs; and
     (d) Continued reliance on an inefficient regional transportation system exacerbates problems associated with fossil fuel use and impedes efforts to reduce carbon emissions.
     (2) The purposes of this act are:
     (a) To improve regional transportation infrastructure for the benefit of citizens, the economy, and the environment by reducing fossil fuel use and carbon emissions and increasing transportation efficiency;
     (b) To consolidate several governmental functions related to transportation planning and funding into a single governmental entity to coordinate and prioritize transportation planning and funding decisions; and
     (c) To increase accountability to citizens by requiring direct election of transportation decision makers and voter approval for transportation taxes and fees.

NEW SECTION.  Sec. 3   DEFINITIONS. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Local transportation plan" means a transportation plan included as part of a regional transportation plan at the request of a local governmental entity.
     (2) "Policy advisory council" means a body convened by the board under section 10 of this act.
     (3) "Region" means a transportation accountability region established under section 4 of this act.
     (4) "Regional board" or "board" means a regional transportation accountability board established under section 5 of this act.
     (5) "Regional transportation plan" or "plan" means a regional transportation plan prepared in accordance with section 9 of this act.
     (6) "Regional transportation project" means a transportation project within a transportation accountability region that a regional board determines to have major significance to regional transportation and that is included in a regional transportation plan.
     (7) "Transit agency" means a city-owned transit system, county transportation authority, metropolitan municipal corporation, and a public transportation benefit area.
     (8) "Transportation project" includes, without limitation:
     (a) Highways and roadways, including arterial streets, and their appurtenances;
     (b) Facilities, equipment, and services of public transportation systems, whether or not operating on exclusive rights-of-way, and including projects that integrate and connect different modes, such as park and ride facilities and special purpose ramps and access points;
     (c) Facilities for nonmotorized transportation;
     (d) Facilities or programs that improve transportation efficiency, economy, or safety through either management of demand or extension of capacity, or both;
     (e) Supporting systems that apply or incorporate new technology to the improvement of transportation systems and services;
     (f) An extension or expansion of the useful lives of existing transportation system assets, so long as these assets are also improved in their safety and efficiency; and
     (g) The operation or maintenance, including mitigation, of transportation facilities.
     (9) "Weighted vote" means one vote that reflects the population of each elected board member adjusted, if necessary, by a percentage of the population that each elected board member represents that is not included within the relevant planning area or taxing district for which the vote applies relative to the total population represented by the member.

NEW SECTION.  Sec. 4   TRANSPORTATION ACCOUNTABILITY REGION. (1) A transportation accountability region is established, which must include, upon approval by initiative or by the legislative authority of each county within the transportation accountability region, those counties participating, as of the effective date of this section, in a regional transportation planning organization, including a county with a population of at least one million five hundred thousand. The region is a municipal corporation and possesses all the usual corporate powers as well as all other powers conferred by statute.
     (2) A transportation accountability region may be expanded to include any other contiguous county or part of the contiguous county if the regional board and the voters or legislative authority of that county approve expansion of the region. At least sixty days before adopting a resolution approving the expansion, the regional board shall adopt policies governing the expansion process and integration of an additional county into the region.
     (3) Any county that borders on an adjoining state or foreign country and that has a population over one hundred fifty thousand may, by ordinance of the county's legislative authority, create a transportation accountability region. The regional board members for a single county region are the members of the legislative authority for the county it serves.

NEW SECTION.  Sec. 5   REGIONAL TRANSPORTATION ACCOUNTABILITY BOARD. (1) A regional transportation accountability board is established for each transportation accountability region. A regional board shall exercise powers and duties as provided under this chapter within the region for which the board is established.
     (2) The regional board must consist of nine part-time board members directly elected by voters as provided under this section. Board members must be elected on a nonpartisan basis from geographical districts initially established by the secretary of state and periodically revised under chapter 29A.76 RCW. Each district must:
     (a) Be as nearly equal in population as possible to each and every other such district, without favoring any racial group or political party;
     (b) Be as reasonably compact as possible and consist of a geographically contiguous area; and
     (c) To the extent feasible, coincide with existing recognized natural boundaries and, to the extent practicable, preserve existing communities of related and mutual interest.
     (3) Each county included in whole or in part in a transportation accountability region shall provide for the nomination of candidates and election of regional board members at the state's primary and general election. Candidates must be residents of the district they seek to represent and may not be serving as an elected member of any other governmental body.
     (4) The term of office of each regional board member is six years. The three elected members receiving the lowest percentage of votes in the initial election serve an initial two-year term, the three elected members receiving the next lowest percentage of votes serve an initial four-year term, and the remaining three members serve an initial six-year term.

NEW SECTION.  Sec. 6   POWERS AND DUTIES. The regional board shall:
     (1) Develop and periodically revise a regional transportation plan under section 9 of this act;
     (2) Receive, prioritize the expenditure of, and disburse state transportation funds for regional transportation projects;
     (3) Approve regional transportation projects located within the transportation accountability region prior to any city, county, special district, or other municipal corporation placing revenue measures to fund such projects or services on a ballot for voter approval;
     (4) Impose transportation impact fees on public and private development activities that may cause significant impacts on the use or availability of regional transportation projects; and
     (5) Establish a program for interconnecting fares, schedules, and transfers on trips using two or more transit agencies for regional transportation projects.

NEW SECTION.  Sec. 7   ADDITIONAL POWERS. The regional board may:
     (1) Employ or contract with engineering, legal, financial, or other employees, specialized personnel, or consultants as may be necessary.
     (2) Exercise all other powers necessary and appropriate to carry out its responsibilities including, without limitation, to sue and be sued, to enter into contracts, and to acquire, own, and transfer real and personal property and property rights by lease, sublease, purchase, or sale.
     (3) Enter into interlocal agreements or agreements with local governments, the state, or the federal government to further its responsibilities under this chapter and other applicable laws.
     (4) Create and fill staff positions, fix reasonable wages and salaries, pay costs involved in hiring employees, and establish reasonable benefits for employees, including holiday pay, vacations or vacation pay, retirement benefits, and medical, life, accident, or health disability insurance, as approved by the board. To the extent appropriate, the regional board shall retain staff from existing transportation planning organizations and regional transit authorities.

NEW SECTION.  Sec. 8   BOARD PROCEDURES. (1) All proceedings of a regional board must be recorded in its minute books, which are subject to chapter 42.56 RCW. A majority of the voting board members constitute a quorum of the board for the transaction of business. Each elected member has one vote, or one weighted vote if the member's geographical district is partially or wholly outside a taxing district under the board's authority.
     (2) Actions by the board must be made by a simple majority weighted vote of board members, except that a decision to submit a regional transportation plan for voter approval, or to make a major modification to any regional transportation plan previously approved by the voters, must be approved by at least two-thirds weighted vote of board members.
     (3) Campaign contribution limitations for county elective office of the most populous county represented by the board apply to campaigns for election of members to the regional board.
     (4) Board members are entitled to reimbursement for reasonable expenses related to their service on the board.

NEW SECTION.  Sec. 9   REGIONAL TRANSPORTATION PLAN. (1) A regional board shall prepare a regional transportation plan as provided under this section. A regional board may include in a regional transportation plan each of the following elements:
     (a) Planning, financing, construction, and operation of regional transportation projects.
     (b) Standards for preparation of transit development plans under RCW 35.58.2795 by each municipality within a transportation accountability region.
     (c) A program to coordinate and interconnect transit agency routes, fares, and schedules within a transportation accountability region.
     (d) At the request of a municipal corporation within a transportation accountability region, any local plan or proposed transportation project, together with taxes, user fees, tolls, and charges to finance construction and operation of the project.
     (e) A plan to coordinate or consolidate under the authority of the board the services of any transit agency located in the transportation accountability region. A plan to coordinate or consolidate a transit agency must include a detailed description of any rights, powers, functions, and obligations of the transit agency that would be assumed by the regional board, as well as any legislation that may be required before the coordination or consolidation becomes effective. A plan to coordinate or consolidate a transit agency must also be approved by a majority of the voters within the boundaries of a transportation accountability region, as well as a majority of the voters within the geographic area served by the transit agency.
     (2) In adopting a regional transportation plan, a regional board shall weigh its contribution to:
     (a) Economic growth and prosperity;
     (b) The alleviation of congestion and delay;
     (c) Citizens' personal transportation goals;
     (d) Increased energy efficiency;
     (e) The development of emerging technologies;
     (f) The reduction of carbon emissions;
     (g) Increased public safety; and
     (h) Advancing all practical transportation modes.
     (3) The regional board shall submit a regional transportation plan to the voters of a transportation accountability region for approval. Voter approval of a regional transportation plan constitutes all necessary voter approval for:
     (a) Any projects, taxes, tolls, charges, and user fees included in the plan; and
     (b) Any local transportation plan or project included in the regional transportation plan, and the levy, imposition, or authorization of local taxes, tolls, charges, and user fees previously approved by a municipal corporation.

NEW SECTION.  Sec. 10   ADVISORY COUNCIL. (1) A regional board shall establish a policy advisory council for state, regional, and local officials, transportation providers, and private citizens to advise the board on transportation planning, prioritization, and funding issues. The board shall develop procedures governing the policy advisory council's composition, duties, procedures, and formal review of plans and programs.
     (2) The policy advisory council for a regional board must include a member appointed by each county executive or chair of the board of county commissioners of each county and confirmed by the legislative authority of the respective county, and a member appointed by the governor. The appointments should include individuals who have experience in regional transportation issues or in the design, construction, operation, maintenance, or financing of public transportation projects.

NEW SECTION.  Sec. 11   TRANSPORTATION AGENCY CONSOLIDATION. Within a transportation accountability region, a regional board shall consolidate and exercise all powers and responsibilities of:
     (1) A regional transportation investment district under chapter 36.120 RCW;
     (2) A regional transportation planning organization under chapter 47.80 RCW;
     (3) A metropolitan planning organization, to the fullest extent permitted under 23 U.S.C. Sec. 134 and other applicable federal laws; and
     (4) As provided in section 12 of this act, a regional transit authority under chapter 81.112 RCW.

NEW SECTION.  Sec. 12   REGIONAL TRANSIT AUTHORITY CONSOLIDATION. (1) Commencing with the initial terms of office of its members, the regional board shall assume all project planning and transportation funding prioritization functions of the regional transit authority including, without limitation, all powers provided in RCW 81.112.030(9) and 81.112.100.
     (2) Commencing after the voters approve a regional transportation plan as provided in section 9 of this act, the regional board may assume all remaining regional transit authority powers as provided under the plan.
     (3)(a) Until the regional board assumes all remaining regional transit authority powers as provided under subsection (2) of this section, the regional board may appoint the governing board of a regional transit authority within the transportation accountability region and delegate to that board any additional powers that may be necessary to preserve the region as a regional transit authority or other independent taxing or bonding authority or recipient of federal or state funds.
     (b) If the regional board establishes a regional transit authority board, the regional board shall appoint its members from nominations by the county executive or legislative authority of each member county. Membership must be based on population from that portion of each county that lies within the transportation accountability region. The regional board shall appoint regional transit authority board members on the basis of one member for each one hundred forty-five thousand population within each county included in whole or in part in the region.

Sec. 13   RCW 81.112.040 and 1994 c 109 s 1 are each amended to read as follows:
     REGIONAL TRANSIT AUTHORITY BOARD APPOINTMENTS. (1) Except as provided under section 12 of this act, the regional transit authority shall be governed by a board consisting of representatives appointed by the county executive and confirmed by the council or other legislative authority of each member county. Membership shall be based on population from that portion of each county which lies within the service area. Board members shall be appointed initially on the basis of one for each one hundred forty-five thousand population within the county. Such appointments shall be made following consultation with city and town jurisdictions within the service area. In addition, the secretary of transportation or the secretary's designee shall serve as a member of the board and may have voting status with approval of a majority of the other members of the board. Only board members, not including alternates or designees, may cast votes.
     Each member of the board, except the secretary of transportation or the secretary's designee, shall be:
     (a) An elected official who serves on the legislative authority of a city or as mayor of a city within the boundaries of the authority;
     (b) On the legislative authority of the county, if fifty percent of the population of the legislative official's district is within the authority boundaries; or
     (c) A county executive from a member county within the authority boundaries.
     When making appointments, each county executive shall ensure that representation on the board includes an elected city official representing the largest city in each county and assures proportional representation from other cities, and representation from unincorporated areas of each county within the service area. At least one-half of all appointees from each county shall serve on the governing authority of a public transportation system.
     Members appointed from each county shall serve staggered four-year terms. Vacancies shall be filled by appointment for the remainder of the unexpired term of the position being vacated.
     The governing board shall be reconstituted, with regard to the number of representatives from each county, on a population basis, using the official office of financial management population estimates, five years after its initial formation and, at minimum, in the year following each official federal census. The board membership may be reduced, maintained, or expanded to reflect population changes but under no circumstances may the board membership exceed twenty-five.
     (2) Major decisions of the authority shall require a favorable vote of two-thirds of the entire membership of the voting members. "Major decisions" include at least the following: System plan adoption and amendment; system phasing decisions; annual budget adoption; authorization of annexations; modification of board composition; and executive director employment.
     (3) Each member of the board is eligible to be reimbursed for travel expenses in accordance with RCW 43.03.050 and 43.03.060 and to receive compensation as provided in RCW 43.03.250.

NEW SECTION.  Sec. 14   TRANSITION RULES. The jurisdiction and powers of any existing metropolitan planning organization or regional transit authority, and its plans or programs necessary to obtain federal transportation funds or to maintain compliance with federal law, remain in full force and effect until a regional board is recognized by the federal government as a qualified successor entity.

NEW SECTION.  Sec. 15   TAXES AND FEES. (1) Subject to approval by the legislative authority of each county within a transportation accountability region to establish a special taxing district, a regional board may impose or authorize some or all of the following revenue sources previously authorized for regional transportation agencies, which a board may levy, impose, or authorize if approved by an affirmative vote of the majority of the voters when included in a regional transportation plan under section 9 of this act:
     (a) A local motor vehicle excise tax under RCW 81.100.060;
     (b) A regional sales and use tax, as specified in RCW 82.14.430, of up to 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, upon the occurrence of any taxable event in the transportation accountability region;
     (c) A commercial parking tax under RCW 82.80.030;
     (d) A local option vehicle license fee, as specified under RCW 82.80.100, of up to one hundred dollars per vehicle registered in the board's boundaries; and
     (e) A local option fuel tax under RCW 82.80.120.
     (2) The board may impose vehicle tolls on state or federal highways within a transportation accountability region if the regional transportation plan identifies the facilities that may be tolled. Unless otherwise specified by law or by contract between the board and the department of transportation, the department of transportation shall administer the collection of tolls at designated facilities.
     (3) Revenues from taxes and fees may be used only to implement a regional transportation plan and to provide for the board's costs incurred in carrying out its responsibilities under this chapter.
     (4) A board shall not, unless otherwise negotiated and agreed upon by applicable parties, directly spend, or otherwise control, a local jurisdiction's or transit agency's locally imposed funds.
     (5) The board may designate the boundaries of the taxing district proposed in a regional transportation plan to be coextensive with the boundaries of any regional transit authority in a county represented by the board.

Sec. 16   RCW 47.56.031 and 2005 c 335 s 2 are each amended to read as follows:
     APPROVAL OF TOLLS. ((No)) (1) Tolls may not be imposed on new or existing highways or bridges without:
     (a) Specific legislative authorization((, or upon));
     (b) Approval by a majority vote of the people within the boundaries of the unit of government empowered to impose tolls; or
     (c) Approval by a regional transportation accountability board, which may impose vehicle tolls as provided under section 15 of this act.
     (2) This section applies to chapter 47.56 RCW and to any tolls authorized under chapter 47.29 RCW, the transportation innovative partnership act of 2005.

Sec. 17   RCW 47.56.075 and 2002 c 56 s 404 are each amended to read as follows:
     TOLL FACILITY APPROVAL. The department shall approve for construction only such toll roads ((as)) or other toll facilities that:
     (1) The legislature specifically authorizes ((or such toll facilities as));
     (2) Are specifically sponsored by a regional transportation investment district, city, town, or county; or
     (3) Are specifically authorized by a regional transportation accountability board, which may impose tolls as provided under section 15 of this act.

Sec. 18   RCW 81.100.060 and 2006 c 318 s 2 and 2006 c 311 s 15 are each reenacted and amended to read as follows:
     HIGH OCCUPANCY VEHICLE SYSTEMS SURCHARGE. A county with a population of one million or more and a county with a population of from two hundred ten thousand to less than one million that is adjoining a county with a population of one million or more, having within their boundaries existing or planned high occupancy vehicle lanes on the state highway system, a regional transportation accountability board, or a regional transportation investment district, but only to the extent that the surcharge has not already been imposed by the county, may, with voter approval, impose a local surcharge of not more than three-tenths of one percent in the case of a county, or eight-tenths of one percent in the case of a regional transportation accountability board or regional transportation investment district, of the value on vehicles registered to a person residing within the county or investment district and not more than 13.64 percent on the state sales and use taxes paid under the rate in RCW 82.08.020(2) on retail car rentals within the county, regional transportation accountability board, or investment district. A county may impose the surcharge only to the extent that it has not been imposed by the district. No surcharge may be imposed on vehicles licensed under RCW 46.16.070 except vehicles with an unladen weight of six thousand pounds or less, RCW 46.16.079, 46.16.085, or 46.16.090.
     Counties, regional transportation accountability boards, or investment districts imposing a surcharge under this section shall contract, before the effective date of the resolution or ordinance imposing a surcharge, administration and collection to the state department of licensing, and department of revenue, as appropriate, which shall deduct a percentage amount, as provided by contract, not to exceed two percent of the taxes, for administration and collection expenses incurred by the department. All administrative provisions in chapters 82.03, 82.32, and 82.44 RCW shall, insofar as they are applicable to motor vehicle excise taxes, be applicable to surcharges imposed under this section. All administrative provisions in chapters 82.03, 82.08, 82.12, and 82.32 RCW shall, insofar as they are applicable to state sales and use taxes, be applicable to surcharges imposed under this section. A surcharge imposed under this section, or a change to the surcharge, shall take effect no sooner than seventy-five days after the department of licensing or the department of revenue receives notice of the surcharge or change to the surcharge, and shall take effect only on the first day of January, April, July, or October. Unless waived by the department of licensing or the department of revenue, notice includes providing the appropriate department with digital mapping and legal descriptions of areas in which the ((tax)) surcharge will be collected.
     If the tax authorized in RCW 81.100.030 is also imposed, the total proceeds from tax sources imposed under this section and RCW 81.100.030 each year shall not exceed the maximum amount which could be collected under this section.

Sec. 19   RCW 82.14.430 and 2006 c 311 s 17 are each amended to read as follows:
     SALES AND USE TAX. (1) If approved by the majority of the voters within its boundaries voting on ((the)) a ballot proposition, a regional transportation accountability board or regional transportation investment district may impose a sales and use tax of up to 0.1 percent of the selling price or value of the article used in the case of a use tax. The tax authorized by this section is in addition to the tax authorized by RCW 82.14.030 and 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 taxing district. Motor vehicles are exempt from the sales and use tax imposed under this subsection.
     (2) If approved by the majority of the voters within its boundaries voting on ((the)) a ballot proposition, a regional transportation accountability board or regional transportation investment district may impose a tax on the use of a motor vehicle within ((a regional transportation investment district)) its jurisdiction. The tax applies to those persons who reside within ((the)) a transportation accountability region or regional transportation investment district. The rate of the tax may not exceed 0.1 percent of the value of the motor vehicle. The tax authorized by this subsection is in addition to the tax authorized under RCW 82.14.030 and must be imposed and collected at the time a taxable event under RCW 82.08.020(1) or 82.12.020 takes place. All revenue received under this subsection must be deposited in the local sales and use tax account and distributed to the regional transportation accountability board or regional transportation investment district according to RCW 82.14.050. The following provisions apply to the use tax in this subsection:
     (a) Where persons are taxable under chapter 82.08 RCW, the seller shall collect the use tax from the buyer using the collection provisions of RCW 82.08.050.
     (b) Where persons are taxable under chapter 82.12 RCW, the use tax must be collected using the provisions of RCW 82.12.045.
     (c) "Motor vehicle" has the meaning provided in RCW 46.04.320, but does not include farm tractors or farm vehicles as defined in RCW 46.04.180 and 46.04.181, off-road and nonhighway vehicles as defined in RCW 46.09.020, and snowmobiles as defined in RCW 46.10.010.
     (d) "Person" has the meaning given in RCW 82.04.030.
     (e) The value of a motor vehicle must be determined under RCW 82.12.010.
     (f) Except as specifically stated in this subsection (2), chapters 82.12 and 82.32 RCW apply to the use tax. The use tax is a local tax imposed under the authority of chapter 82.14 RCW, and chapter 82.14 RCW applies fully to the use tax.
     (3) In addition to fulfilling the notice requirements under RCW 82.14.055(1), and unless waived by the department, a regional transportation accountability board or regional transportation investment district shall provide the department of revenue with digital mapping and legal descriptions of areas in which the tax will be collected.

Sec. 20   RCW 82.80.005 and 2002 c 56 s 415 are each amended to read as follows:
     LOCAL OPTION TRANSPORTATION TAX DEFINITIONS. For the purposes of this chapter((,)):
     (1) "District" means a regional transportation investment district created under chapter 36.120 RCW.
     (2) "Regional board" means a regional transportation accountability board established under section 5 of this act.
     (3) "Regional transportation plan" means a regional transportation plan prepared in accordance with section 9 of this act.

Sec. 21   RCW 82.80.030 and 2005 c 336 s 24 are each amended to read as follows:
     COMMERCIAL PARKING TAX. (1) Subject to the conditions of this section, a regional board or the legislative authority of a county, city, or district may fix and impose a parking tax on all persons engaged in a commercial parking business within its respective jurisdiction. A county, city, or ((county)) district may impose the tax only to the extent that it has not been imposed by ((the district)) a regional board, and a ((district)) regional board may impose the tax only to the extent that it has not been imposed by a county, city, or ((county)) district. The jurisdiction of a county, for purposes of this section, includes only the unincorporated area of the county. The jurisdiction of a city or district includes only the area within its boundaries.
     (2) In lieu of the tax in subsection (1) of this section, a city, a county in its unincorporated area, a regional board, or a district may fix and impose a tax for the act or privilege of parking a motor vehicle in a facility operated by a commercial parking business.
     The city, county, regional board, or district may provide that:
     (a) The tax is paid by the operator or owner of the motor vehicle;
     (b) The tax applies to all parking for which a fee is paid, whether paid or leased, including parking supplied with a lease of nonresidential space;
     (c) The tax is collected by the operator of the facility and remitted to the city, county, regional board, or district;
     (d) The tax is a fee per vehicle or is measured by the parking charge;
     (e) The tax rate varies with zoning or location of the facility, the duration of the parking, the time of entry or exit, the type or use of the vehicle, or other reasonable factors; and
     (f) Tax exempt carpools, vehicles with handicapped decals, or government vehicles are exempt from the tax.
     (3) "Commercial parking business" as used in this section, means the ownership, lease, operation, or management of a commercial parking lot in which fees are charged. "Commercial parking lot" means a covered or uncovered area with stalls for the purpose of parking motor vehicles.
     (4) The rate of the tax under subsection (1) of this section may be based either upon gross proceeds or the number of vehicle stalls available for commercial parking use. The rates charged must be uniform for the same class or type of commercial parking business.
     (5) The county, city, regional board, or district levying the tax provided for in subsection (1) or (2) of this section may provide for its payment on a monthly, quarterly, or annual basis. Each local government may develop by ordinance or resolution rules for administering the tax, including provisions for reporting by commercial parking businesses, collection, and enforcement.
     (6) The proceeds of the commercial parking tax fixed and imposed by a city or county under subsection (1) or (2) of this section shall be used for transportation purposes in accordance with RCW 82.80.070 or for transportation improvements in accordance with chapter 36.73 RCW. The proceeds of the commercial parking tax imposed by a regional board must be used as provided under a regional transportation plan. The proceeds of the parking tax imposed by a district must be used as provided in chapter 36.120 RCW.

Sec. 22   RCW 82.80.100 and 2002 c 56 s 408 are each amended to read as follows:
     MOTOR VEHICLE LICENSE FEE. (1) Upon approval of a majority of the voters within its boundaries voting on the ballot proposition, a regional transportation accountability board or regional transportation investment district may set and impose an annual local option vehicle license fee, or a schedule of fees based upon the age of the vehicle, of up to one hundred dollars per motor vehicle registered within the boundaries of the region on every motor vehicle. As used in this section "motor vehicle" has the meaning provided in RCW 46.04.320, but does not include farm tractors or farm vehicles as defined in RCW 46.04.180 and 46.04.181, off-road and nonhighway vehicles as defined in RCW 46.09.020, and snowmobiles as defined in RCW 46.10.010. Vehicles registered under chapter 46.87 RCW and the international registration plan are exempt from the annual local option vehicle license fee set forth in this section. The department of licensing shall administer and collect this fee on behalf of a regional transportation accountability board or regional transportation investment district((s)) and remit this fee to the custody of the state treasurer for monthly distribution under RCW 82.80.080.
     (2) The local option vehicle license fee applies only when renewing a vehicle registration, and is effective upon the registration renewal date as provided by the department of licensing.
     (3) A regional transportation accountability board or regional transportation investment district imposing the local option vehicle license fee or initiating an exemption process shall enter into a contract with the department of licensing. The contract must contain provisions that fully recover the costs to the department of licensing for collection and administration of the fee.
     (4) A regional transportation accountability board or regional transportation investment district imposing the local option fee shall delay the effective date of the local option vehicle license fee imposed by this section at least six months from the date of the final certification of the approval election to allow the department of licensing to implement the administration and collection of or exemption from the fee.

Sec. 23   RCW 82.80.120 and 2006 c 311 s 18 are each amended to read as follows:
     FUEL TAX. (1) For purposes of this section:
     (a) "Distributor" means every person who imports, refines, manufactures, produces, or compounds motor vehicle fuel and special fuel as defined in RCW 82.36.010 and 82.38.020, respectively, and sells or distributes the fuel into a county((;)).
     (b) "Person" has the same meaning as in RCW 82.04.030((;)).
     (c) "District" means a regional transportation investment district under chapter 36.120 RCW.
     (d) "Region" means a transportation accountability region established under section 4 of this act.
     (e) "Regional board" means a regional transportation accountability board established under section 5 of this act.
     (2) A regional transportation accountability board or regional transportation investment district ((under chapter 36.120 RCW)), subject to the conditions of this section, may levy additional excise taxes equal to ten percent of the statewide motor vehicle fuel tax rate under RCW 82.36.025 on each gallon of motor vehicle fuel as defined in RCW 82.36.010 and on each gallon of special fuel as defined in RCW 82.38.020 sold within the boundaries of the regional board or district. The additional excise tax is subject to the approval of a majority of the voters within the regional board or district boundaries. Vehicles paying an annual license fee under RCW 82.38.075 are exempt from the regional board's or district's fuel excise tax. The additional excise taxes are subject to the same exceptions and rights of refund as applicable to other motor vehicle fuel and special fuel excise taxes levied under chapters 82.36 and 82.38 RCW. The proposed tax may not be levied less than one month from the date the election results are certified. The commencement date for the levy of any tax under this section will be the first day of January, April, July, or October.
     (3) The local option motor vehicle fuel tax on each gallon of motor vehicle fuel and on each gallon of special fuel is imposed upon the distributor of the fuel.
     (4) A taxable event for the purposes of this section occurs upon the first distribution of the fuel within the boundaries of the region or district to a retail outlet, bulk fuel user, or ultimate user of the fuel.
     (5) All administrative provisions in chapters 82.01, 82.03, and 82.32 RCW, insofar as they are applicable, apply to local option fuel taxes imposed under this section.
     (6) Before the effective date of the imposition of the fuel taxes under this section, a regional board or district shall contract with the department of licensing for the administration and collection of the taxes. The contract must provide that a percentage amount, not to exceed one percent of the taxes imposed under this section, will be deposited into the local tax administration account created in the custody of the state treasurer. The department of licensing may spend money from this account, upon appropriation, for the administration of the local taxes imposed under this section.
     (7) The state treasurer shall distribute monthly to the regional board or district levying the tax as part of the regional transportation plan or regional transportation investment district plan, after the deductions for payments and expenditures as provided in RCW 46.68.090(1) (a) and (b).
     (8) The proceeds of the additional taxes levied by a district in this section, to be used as a part of a regional transportation investment district plan, must be used in accordance with chapter 36.120 RCW, but only for those areas that are considered "highway purposes" as that term is construed in Article II, section 40 of the state Constitution.
     (9) A district may only levy the tax under this section if the district is comprised of boundaries identical to the boundaries of a county or counties. A district may not levy the tax in this section if a member county is levying the tax in RCW 82.80.010 or 82.80.110.
     (10) The proceeds of the additional taxes levied by a regional board under this section must be used to implement a regional transportation plan.

NEW SECTION.  Sec. 24   BORROWING AUTHORITY. (1) Subject to chapters 39.36 and 39.46 RCW, a regional board may:
     (a) Enter into agreements with a lead agency or the state to pledge one or more of the taxes, tolls, charges, or fees authorized to be imposed by a regional board as security for the payment of obligations issued by the lead agency or the state;
     (b) Issue general obligation bonds, not to exceed an amount, together with any other outstanding nonvoter-approved general obligation indebtedness, equal to one and one-half percent of the value of the taxable property within a transportation accountability region; or
     (c) Issue revenue bonds and, in connection with the issuance of bonds, pledge as additional security for the payment of revenue bonds of a regional board one or more of the taxes, tolls, charges, or fees authorized to be imposed by the regional board.
     (2) The authority to impose any tax, toll, charge, or fee pledged by a regional board under this act may not be eliminated or modified while any obligations benefited by the pledge are outstanding.

NEW SECTION.  Sec. 25   TREASURER. (1) A regional board shall designate a person who is not a member of the board and who has experience in financial or fiscal matters to be treasurer of the transportation accountability region. The board may designate the treasurer of any county within the region to act as treasurer. The treasurer has all of the powers, responsibilities, and duties that the county treasurer has related to investing surplus funds.
     (2) If the treasurer is also the treasurer of a county, all board funds must be deposited with a county depositary under the same restrictions, contracts, and security as provided for county depositaries. If the treasurer is not the treasurer of a county, all funds must be deposited in a bank or banks that are public depositaries, as defined in RCW 39.58.010, and are qualified for insured deposits under any federal deposit insurance act as the board, by resolution, designates, or funds must be invested in legal investments for counties.
     (3) The board shall require a bond with a surety company authorized to do business in this state in an amount and under the terms and conditions the board, by resolution, from time to time finds will protect the board against loss. The board shall pay the premium on the bond. The board may require a reasonable bond of any other person handling money or securities of the board, but the board shall pay the premium on the bond.

NEW SECTION.  Sec. 26   TAX EXEMPTIONS. The following taxes do not apply to any regional transportation project included in a regional transportation plan:
     (1) Local business and occupation taxes;
     (2) Business and occupation taxes imposed under RCW 82.04.220;
     (3) Retail sales taxes imposed under RCW 82.08.020;
     (4) Use taxes imposed under RCW 82.12.020; and
     (5) Public utility taxes imposed under RCW 82.16.020.

Sec. 27   RCW 35.21.718 and 1998 c 179 s 2 are each amended to read as follows:
     LOCAL BUSINESS AND OCCUPATION TAX EXEMPTION. A city or town may not impose a tax on amounts received from operating:
     (1) State route number 16 corridor transportation systems and facilities constructed and operated under chapter 47.46 RCW; or
     (2) A regional transportation project included in a regional transportation plan under section 9 of this act.

NEW SECTION.  Sec. 28   A new section is added to chapter 82.04 RCW to read as follows:
     BUSINESS AND OCCUPATION TAX EXEMPTIONS. This chapter does not apply to amounts received from operating a regional transportation project included in a regional transportation plan under section 9 of this act.

NEW SECTION.  Sec. 29   A new section is added to chapter 82.08 RCW to read as follows:
     RETAIL SALES TAX EXEMPTION. The tax levied by RCW 82.08.020 does not apply to the sales of goods, labor, and services rendered for construction, maintenance, and operation of a regional transportation project included in a regional transportation plan under section 9 of this act.

NEW SECTION.  Sec. 30   A new section is added to chapter 82.12 RCW to read as follows:
     USE TAX EXEMPTION. This chapter does not apply to the use of tangible personal property to construct, operate, or maintain a regional transportation project included in a regional transportation plan under section 9 of this act.

Sec. 31   RCW 82.16.046 and 1998 c 179 s 5 are each amended to read as follows:
     PUBLIC UTILITY TAX EXEMPTION. The provisions of this chapter do not apply to amounts received from operating:
     (1) State route number 16 corridor transportation systems and facilities constructed and operated under chapter 47.46 RCW; or
     (2) A regional transportation project included in a regional transportation plan under section 9 of this act.

NEW SECTION.  Sec. 32   RCW 47.80.060 (Executive board membership) and 2007 c 511 s 1, 2005 c 334 s 1, & 1992 c 101 s 31 are each repealed.

NEW SECTION.  Sec. 33   A new section is added to chapter 36.120 RCW to read as follows:
     A regional transportation improvement district formed after the effective date of this section is not allowed within the boundaries of a transportation accountability region.

NEW SECTION.  Sec. 34   Sections 1 through 12, 14, 15, and 24 through 26 of this act constitute a new chapter in Title 36 RCW.

NEW SECTION.  Sec. 35   CONSTRUCTION. The rule of strict construction may not be applied to this act, which must be liberally construed to carry out its purposes.

NEW SECTION.  Sec. 36   CODE REVISER. The office of the code reviser is directed to submit to the chair of the senate transportation committee and the chair of the house of representatives transportation committee before the commencement of the first legislative session after the effective date of this section proposed legislation that makes technical corrections to statutes and identifies other amendments needed to fully implement this act. The legislature may amend this act at any time if necessary to fully implement its purpose.

NEW SECTION.  Sec. 37   CAPTIONS AND PART HEADINGS NOT LAW. Captions and part headings used in this act are not any part of the law.

NEW SECTION.  Sec. 38   SEVERABILITY. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION.  Sec. 39   EMERGENCY EFFECT. 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.