SENATE BILL REPORT

SB 6077

BYSenator Patterson

Authorizing powers of public transportation benefit areas to contract with local governments for street maintenance.

Senate Committee on Transportation

Senate Hearing Date(s):March 1, 1989

Majority Report:  That Substitute Senate Bill No. 6077 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Patterson, Chairman; Nelson, Vice Chairman; von Reichbauer, Vice Chairman; Barr, Benitz, Hansen, Sellar, Thorsness.

Senate Staff:Gene Baxstrom (786-7303)

                  March 2, 1989

AS REPORTED BY COMMITTEE ON TRANSPORTATION, MARCH 1, 1989

BACKGROUND:

Public Transportation Benefit Areas are special purpose districts created to provide public transportation services. These districts provide public transportation services in both incorporated and unincorporated areas.  The governing boards for the 15 operating systems primarily consist of city and county elected officials.

PTBA's are authorized to impose an excise and/or a business and occupation tax or a sales and use tax of up to 0.6 percent for the purposes of funding operation, maintenance and capital needs of the transit system.  Voter approval is required.

A 1988 Attorney General's Opinion found that local transit agencies authority for providing public transportation services is not sufficiently broad to permit those agencies to contract with cities and counties within their boundaries for improvement or maintenance of public roads.

SUMMARY:

A Public Transportation Benefit Area is authorized to contract with cities or counties in its jurisdiction for the improvement and maintenance of roads within the jurisdiction upon which the authority's vehicles operate.  The contracts may be paid from the proceeds of the local option excise/business and occupation tax or sales taxes for transit.

EFFECT OF PROPOSED SUBSTITUTE:

Statutes authorizing imposition of the excise and business and occupation tax, and the sales and use tax for public transportation purposes are amended to include use of those tax monies for public transportation benefit areas to contract for certain road improvements and maintenance.

The improvements of rights of way upon which transit systems operate is declared to be a public transportation purpose.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: FOR:  Steve Lindstrom, Washington State Transit Association