AN ACT Relating to funding of the state transit and carpool system; adding a new chapter to Title 47 RCW; and providing an expiration date.

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

NEW SECTION. Sec. 1. The legislature finds that:

Traffic congestion in urban counties has substantial economic, environmental, and social costs due to reduced traffic speeds and increased air pollution. The problem is compounded because commuting is concentrated during a few hours of the day and most people choose to drive alone.

The state transit and carpool system, also known as the HOV system, enables travel by transit or carpool at speeds greater than the pace in general traffic lanes. Completion of the system is the most cost-effective and immediate means of increasing mobility and limiting pollution emitted by vehicles. However, existing funding sources are not sufficient to complete the system in a timely manner.

NEW SECTION. Sec. 2. The purpose of this chapter is to provide funding authority that will enable counties to accelerate development of the state transit and carpool system by supplementing available state and federal funds.

NEW SECTION. Sec. 3. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Transit and carpool lanes" means lanes reserved for the use of public transportation vehicles or private vehicles carrying no fewer than a specified number of passengers under RCW 46.61.165, or both such uses.

(2) "Transit and carpool program" includes advertising the transit and carpool system, promoting transit, carpool, and vanpool use, and enforcement of driving restrictions governing transit and carpool lanes.

(3) "Transit and carpool system" includes transit and carpool lanes, park and ride lots, park and pool lots, and other facilities necessary to maximize the use of transit and carpool lanes.

NEW SECTION. Sec. 4. (1) In order to supplement funds for development of the state transit and carpool system, a county having within its boundaries a portion of the planned state transit and carpool system that is not yet constructed may impose a business tax on all employers located in the county, measured by the number of full-time equivalent employees.

(2) The tax under this section shall not apply to employment of a person when the employer has paid for at least half of the cost of a transit pass for that employee.

(3) The tax under this section shall not apply to an employer that has entered into an agreement with the local government or public transit agency that is designed to reduce the proportion of employees who drive in a single-occupant vehicle during peak commuting periods to a level that meets the goals for the employer's location prescribed in an agreement adopted under section 7 of this act. The agreement shall include a list of specific actions that the employer will undertake that can reasonably be expected to lead to achievement of the goals for the employer's location. Each employer participating in an agreement under this subsection shall annually certify to the governmental participant in the agreement that the employer is fulfilling the terms of the agreement. The exemption under this subsection continues as long as the employer is in compliance with the terms of the agreement.

NEW SECTION. Sec. 5. Counties imposing a tax under section 4 of this act may contract with the state department of revenue for administration and collection of the tax. The department of revenue shall deduct a percentage amount, as provided by contract, for administration and collection expenses incurred by the department.

NEW SECTION. Sec. 6. (1) A county shall convey funds collected under this chapter, less costs of collection and costs incurred by all participating jurisdictions in preparing, adopting, and enforcing agreements under section 7 of this act, to the department of transportation via an agreement under the Interlocal Cooperation Act, chapter 39.34 RCW, that provides for accelerated construction of the state transit and carpool system within that county.

(2) The state transit and carpool system is an urban public transportation system as defined in RCW 47.04.082. An agreement between the department and a county under this section shall provide for participation of counties, cities, and public transit agencies in planning and management decisions affecting the transit and carpool system.

(3) The transit and carpool fund is established in the custody of the state treasurer. The department shall deposit in the fund all moneys received under this chapter. Disbursements from the fund shall be on authorization of the secretary or the secretary's designee. The fund is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for disbursements from the fund. All moneys deposited in the transit and carpool fund shall be used to accelerate development of the state transit and carpool system and for the transit and carpool program as follows:

(a) To pay the state's share of costs for state highway improvements that are part of the federal aid highway system, if state funds are not otherwise available under RCW 47.10.801 through 47.10.809, or any similar program intended to pay the state's share of interstate highway improvements;

(b) To pay the state's share of costs for any portion of the transit and carpool system constructed with funds from federal programs other than the federal aid highway program;

(c) To temporarily pay the federal share of costs for state highway improvements that are part of the federal aid highway system in advance of available federal aid funds;

(d) To pay for the location, design, right of way, and construction of portions of the system that are not eligible for federal funding;

(e) To address environmental concerns that result from construction or use of the system;

(f) To pay the principal and interest on any bonds that may be authorized by the legislature for the transit and carpool system;

(g) Subject to a limitation of five percent of the funds received by the department through an agreement under this section, as a grant to local agencies for administration of the transit and carpool program.

(4) Funds received by the department through an agreement under this section are considered a local government contribution for purposes of RCW 47.26.084, and shall be used by the department within the county from which the funds were received. The department shall not use these funds to replace federal or state funds allotted to a project under the funded six-year highway construction program.

(5) Funds received from the federal government as reimbursement for expenditures under subsection (3)(c) of this section shall be used for portions of the system within the county from which the funds were originally received under this chapter, unless all portions of the planned system within that county have been completed.

NEW SECTION. Sec. 7. Counties, cities, and towns may enter into an agreement through the Interlocal Cooperation Act, chapter 39.34 RCW, establishing goals of reducing the proportion of commuters who drive in single-occupant vehicles during peak commuting periods. The agreement shall include sufficient jurisdictions so that at least fifty percent of the employees working within the county are employed at sites within participating jurisdictions.

In adopting these goals, participating jurisdictions shall consider at least the following:

(1) The level of peak hour traffic congestion on roadways used by employees in commuting to work;

(2) Existing and anticipated levels of transit and vanpool service available to and from the worksite;

(3) Variations in employment density and employer size;

(4) Availability and cost of parking.

NEW SECTION. Sec. 8. This chapter shall expire on June 30, 1999.

NEW SECTION. Sec. 9. Sections 1 through 8 of this act constitute a new chapter in Title 47 RCW.