AN ACT Relating to high capacity transportation systems; amending RCW 84.52.052; reenacting and amending RCW 47.76.030; adding new sections to chapter 35.21 RCW; adding a new section to chapter 35.58 RCW; adding a new section to chapter 82.14 RCW; adding new sections to chapter 47.76 RCW; adding a new chapter to Title 47 RCW; adding a new chapter to Title 81 RCW; creating new sections; making appropriations; providing an effective date; and declaring an emergency.

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

NEW SECTION. Sec. 1. PURPOSE OF STATE FREIGHT RAIL PROGRAM. The legislature finds that a balanced multimodal transportation system is required to maintain the state's commitment to the growing mobility needs of its citizens and commerce. Freight rail systems are important elements of this multimodal system.

Washington's economy relies heavily upon the freight rail system to ensure movement of the state's agricultural, chemical, and natural resource products to local, national, and international markets. Since 1970, Washington has lost nearly one-third of its five thousand two hundred rail miles to abandonment and bankruptcies, leaving approximately three thousand five hundred rail miles. Recognizing the implications of this trend for freight mobility and the state's economic future, the legislature believes that better freight rail planning, better cooperation to preserve rail lines, and increased financial assistance from the state are necessary to maintain and improve the freight rail system within the state.

NEW SECTION. Sec. 2. STATE FREIGHT RAIL PROGRAM. The Washington state department of transportation shall implement a state freight rail program for rail coordination, planning, and technical studies.

NEW SECTION. Sec. 3. FREIGHT RAIL PLANNING. (1) The department of transportation shall continue its responsibility for the development and implementation of the state rail plan and programs, and the utilities and transportation commission shall continue its responsibility for intrastate rates, service, and safety issues.

(2) The department of transportation shall maintain an enhanced data file on the rail system. Proprietary annual station traffic data from each railroad and the modal use of major shippers shall be obtained to the extent that such information is available.

(3) The department of transportation shall provide technical assistance, upon request, to state agencies and local interests. Technical assistance includes, but is not limited to, the following:

(a) Abandonment cost-benefit analyses;

(b) Assistance in the formation of county and port rail districts; and

(4) With funding authorized by the legislature, the department of transportation shall develop a cooperative process to conduct community and business information programs and to regularly disseminate information on rail matters. The following agencies and jurisdictions shall be involved in the process:

(a) The state departments of community development and trade and economic development;

(b) Local jurisdictions and local economic development agencies; and

NEW SECTION. Sec. 4. FREIGHT RAIL PRESERVATION PROGRAM. The state, counties, local communities, railroads, labor, and shippers all benefit from continuation of rail service and should participate in its preservation. Lines which provide benefits to the state and local jurisdictions, such as avoided roadway costs, reduced traffic congestion, economic development potential, environmental protection, and safety, should be assisted through the joint efforts of the state, local jurisdictions, and the private sector.

(1) The department of transportation shall continue to monitor the status of the state's light density line system through the state rail plan and various analyses, and shall seek alternatives to abandonment prior to interstate commerce commission proceedings, where feasible.

(2) The utilities and transportation commission shall intervene in interstate commerce commission proceedings on abandonments, when necessary, to protect the state's interest.

(3) As conditions warrant, the following criteria shall be used for identifying the state's essential rail system:

(a) Established regional and short-line carriers excluding private operations which are not common carriers;

(b) Former state project lines, which are lines that have been studied and have received funds from the state and federal governments;

(c) Lines serving major agricultural and forest product areas or terminals, with such terminals generally being within a fifty-mile radius of producing areas, and sites associated with commodities shipped by rail;

(d) Lines serving ports, seaports, and navigable river ports;

(e) Lines serving power plants or energy resources;

(f) Lines used for passenger service;

(g) Mainlines connecting to the national and Canadian rail systems;

(h) Major intermodal service points or hubs; and

(i) The military's strategic rail network.

(4) Local jurisdictions may implement rail service preservation projects in the absence of state participation.

(5) The department of transportation shall continue to monitor projects for which it provides assistance.

NEW SECTION. Sec. 5. RAIL CORRIDOR PRESERVATION GUIDELINES. In rail banking situations where it is not practicable to implement or continue freight rail service operations until some future date and the line's right of way is available for purchase and/or meets the criteria of chapter 47.76 RCW:

(1) The department of transportation shall preserve rail corridors for future rail service by purchasing the rights of way with funds specifically allocated within the essential rail banking account.

(2) Acquisition of rights of way may also include track, bridges, and associated elements.

(3) All corridors purchased under the rail bank program shall be identified by the department of transportation.

(4) All corridors acquired by municipalities by donation or reversion for future rail use shall be identified in the rail bank program.

(5) If it is determined that the rail rights of way are more appropriately utilized for purposes other than rail service, and nonrail funds for those purposes have been designated, the appropriate governmental agencies may acquire these through purchase, donation, or reversionary rights.

NEW SECTION. Sec. 6. FINANCING MECHANISMS AND SOURCES FOR PUBLIC RAILROADS. State funding for rail service preservation shall be related to state benefits, which include reducing state and county highway maintenance and repair costs, increasing economic development opportunities, preserving jobs, and considering safety, and shall be contingent upon appropriate local participation.

NEW SECTION. Sec. 7. ESSENTIAL RAIL BANKING ACCOUNT‑-CREATION. (1) The essential rail banking account is created in the state treasury. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used only for the purposes specified in this section.

(2) Moneys in the account may be used by the department to:

(a) Purchase unused rail rights of way; or

(b) Provide up to eighty percent of the funding through loans to port districts and county rail districts to purchase unused rail rights of way.

(3) Use of the moneys pursuant to subsection (2) of this section shall be for rights of way that meet the following criteria:

(a) The right of way has been identified, evaluated, and analyzed in the state rail plan prepared pursuant to this chapter;

(b) The right of way may be or has been abandoned and is available for acquisition;

(d) Reestablishment or maintenance of rail service would benefit the state of Washington.

!ixThe department may exercise its authority to use moneys in the account for the purposes of this section only with legislative appropriation for this purpose or upon receipt of a donation of funds sufficient to cover the property acquisition and management costs. The department may receive donations of funds for this purpose, which shall be conditioned upon, and made in consideration for the repurchase rights contained in RCW 47.76.040. Nothing in this section shall be interpreted or applied so as to impair the reversionary rights of abutting landowners, if any, without just compensation.

(4) All earnings of investments of balances in the essential rail banking account shall be credited to that account.

NEW SECTION. Sec. 8. EVALUATING PROGRAM PERFORMANCE. The department shall evaluate the state freight rail program performance at the end of six years with respect to past and current conditions and future needs.

NEW SECTION. Sec. 9. TAX RELIEF STUDY. The department of revenue, working with the department of transportation, shall study and report its findings to the legislative transportation committee with respect to a potential tax relief program under Title 84 RCW for railroad operating properties, which shall provide tax credits for railroad participation in rail service preservation or improvement projects implemented on the light density line system.

NEW SECTION. Sec. 10. MONITORING FEDERAL RAIL POLICIES. The state shall continue to monitor federal rail policies and congressional action and communicate to Washington's congressional delegation and federal transportation agencies the need for a balanced transportation system and associated funding.

Sec. 11. Section 6, chapter 303, Laws of 1983 as amended by section 64, chapter 57, Laws of 1985 and by section 2, chapter 432, Laws of 1985 and RCW 47.76.030 are each reenacted and amended to read as follows:

(1) The essential rail assistance account is hereby created in the state treasury. Moneys in the account may be appropriated only for the purposes specified in this section.

(2) Moneys in the account may be distributed to county rail districts and port districts for the purpose of:

(a) Acquiring, maintaining, or improving branch rail lines; ((or))

(b) Operating railroad equipment necessary to maintain essential rail service;

(c) Construction of transloading facilities to increase business on light density lines or to mitigate the impacts of abandonment; or

(d) Preservation, including operation, of viable light density lines, as identified by the Washington state department of transportation, in compliance with this chapter.

(3) ((~~Moneys in the account may be distributed to the department to purchase unused rail right of way that meets the following criteria:~~

~~(a) The right of way has been identified, evaluated, and analyzed in the state rail plan prepared pursuant to RCW 47.76.020;~~

~~(b) The right of way has been abandoned and is available for acquisition;~~

~~(c) The right of way has potential for future rail service; and~~

~~(d) Reestablishment of rail service in the future would benefit the state of Washington.~~

!ixThe department may exercise its authority to use moneys in the account for the purposes of this subsection only with legislative appropriation for this purpose or upon receipt of a donation of funds sufficient to cover the property acquisition and management costs. The department may receive donations of funds for this purpose, which shall be conditioned upon, and made in consideration for the repurchase rights contained in RCW 47.76.040. Nothing in this section shall be interpreted or applied so as to impair the reversionary rights of abutting landowners, if any, without just compensation.

~~(4)~~)) County rail districts and port districts may grant franchises to private railroads for the right to operate on lines acquired, repaired, or improved under this chapter.

((~~(5)~~)) (4) Moneys distributed under subsection (2) of this section shall not exceed eighty percent of the cost of the service or project undertaken. At least twenty percent of the cost shall be provided by the county, port district, or other local sources.

((~~(6)~~)) (5) The amount distributed under this section shall be repaid to the state by the county rail district or port district. The repayment shall occur within ten years of the distribution of the moneys and shall be deposited in the essential rail assistance account. Emergency loans shall be repaid within five years. The repayment schedule and rate of interest, if any, shall be set at the time of the distribution of the moneys.

((~~(7)~~)) (6) All earnings of investments of balances in the essential rail assistance account shall be credited to the general fund.

NEW SECTION. Sec. 12. PURPOSE OF STATE PASSENGER RAIL PROGRAM. Increasing congestion on Washington's roadways calls for identification and implementation of transportation alternatives, including rail transit, commuter rail, and Amtrak intercity rail. Such passenger rail alternatives are needed to accommodate the movement of goods and services, to serve travel demands, and to provide needed mobility. The legislature believes that local jurisdictions should coordinate and be responsible for passenger rail policy development, program planning, and implementation. The state should assist by working with local agencies on issues involving rights of way, partially financing projects meeting established state criteria, authorizing local jurisdictions to finance rail alternatives through voter-approved tax options, and providing technical assistance and information.

NEW SECTION. Sec. 13. STATE POLICY ROLES IN PASSENGER RAIL DEVELOPMENT. The department of transportation's current policy role in transit should be expanded to include passenger rail development as one element of a multimodal transportation system.

(1) The state department of transportation shall implement a passenger rail program for passenger rail coordination, planning, and technical studies with appropriations from the rail development account.

(2) The state shall assist local jurisdictions and metropolitan planning organizations with passenger rail planning efforts.

NEW SECTION. Sec. 14. RAIL PASSENGER POLICY DEVELOPMENT OUTSIDE CENTRAL PUGET SOUND. (1) In class A counties not bordered by class AA counties and in counties of the first class and smaller, city-owned transit systems, county transportation authorities, metropolitan municipal corporations, and public transportation benefit areas may elect to establish rail service. Such agencies shall form a regional policy committee with proportional representation based upon population distribution within the designated service area.

(a) City-owned transit systems, county transportation authorities, metropolitan municipal corporations, and public transportation benefit areas participating in joint regional policy committees shall seek voter approval within their own service boundaries of a rail plan and financing program.

(b) An interim regional rail transit authority may be formed pursuant to section 15(2) of this act and shall seek voter approval of a rail plan and financing program within its proposed service boundaries.

(2) City-owned transit systems, county transportation authorities, metropolitan municipal corporations, and public transportation benefit areas in counties adjoining state or international boundaries are authorized to participate in the regional rail transit programs of an adjoining state or nation.

NEW SECTION. Sec. 15. PASSENGER RAIL POLICY DEVELOPMENT IN CENTRAL PUGET SOUND. (1) Agencies in class AA counties and in class A counties bordering class AA counties that are currently authorized to provide rail transit planning and operating services, including but not limited to city-owned transit systems, county transportation authorities, metropolitan municipal corporations, and public transportation benefit areas, must establish through interlocal agreements a joint regional policy committee with proportional representation based upon the population distribution within each agency's designated service area, as determined by the parties to the agreement.

(a) The membership of the joint regional policy committee shall consist of locally elected officials who serve on the legislative authority of the transit systems and a representative from the department of transportation. Nonvoting membership for elected officials from adjoining counties may be allowed at the committee's discretion.

(b) The joint regional policy committee shall be responsible for the preparation and adoption of a regional rail system plan and an implementation program including a financing package.

(c) Interlocal agreements shall be executed within two years of the effective date of this act. The joint regional policy committee shall present a rail plan and local funding program to the boards of directors of the transit agencies within the service benefit area for adoption.

(d) Transit agencies shall present the adopted rail plan and financing program for voter approval within four years of the execution of the interlocal agreements. A simple majority vote is required for approval of the rail plan and financing program in any service district within each county. Rail service may proceed in any service area approving the plan and program.

(2) If the interlocal agreements have not been executed within two years from the effective date of this act, the designated metropolitan planning organization shall convene within one hundred eighty days a conference to be attended by an elected representative selected by the legislative authority of each city and county in class AA counties and in class A counties bordering class AA counties.

(a) Public notice of the conference shall occur thirty days before the date of the conference.

(b) The purpose of the conference is to evaluate the need for developing rail service in class AA counties and in class A counties bordering class AA counties and to determine the desirability of a regional approach to developing rail service.

(c) The conference may elect to continue rail efforts on a subregional basis through established transit planning and operating agencies.

(d) The conference may elect to pursue regional development by creating a multicounty interim regional rail transit authority. Conference members shall be responsible for determining the structure and composition of any interim regional rail transit authority.

(i) The interim regional authority shall propose a permanent authority or authorities for voter approval. Permanent regional rail authorities shall become the responsible agencies for rail planning, construction, operations, and funding within their service boundaries. Funding sources for a regional rail authority or authorities are separate from currently authorized funding sources for city-owned transit systems, county transportation authorities, metropolitan municipal authorities, or public transportation benefit areas.

(ii) State and local jurisdictions, county transportation authorities, metropolitan municipal corporations, or public transportation benefit areas shall retain responsibility for existing rail transit facilities and/or services, unless the responsibility is transferred to the rail transit authority or authorities by interlocal agreement.

(3) If, within four years of the execution of the interlocal agreements, a rail plan and financing program has not been approved by a simple majority vote within any of participating jurisdictions, the joint regional policy committee shall convene a conference within one hundred eighty days. Such a conference shall be for the same purpose and shall be subject to the same conditions as described in subsection (2) of this section.

(4) Rail service planning, construction, operations, and funding shall be governed through the interlocal agreement process, including but not limited to provision for a cost allocation and distribution formula, line alignment, station area locations, right of way transfers, and feeder transportation systems. The interlocal agreement shall include a mechanism for resolving conflicts among parties to the agreement.

NEW SECTION. Sec. 16. EXPANSION OF PASSENGER RAIL SERVICE BOUNDARIES. Regional passenger rail service boundaries may be expanded beyond the established service district through interlocal agreements among the transit agencies. Rail service boundaries may encompass smaller service districts than are authorized for existing transit agencies.

NEW SECTION. Sec. 17. STATE ROLE IN PASSENGER RAIL PROGRAM PLANNING AND IMPLEMENTATION. The state's planning role in rail transit development as one element of a multimodal transportation system should facilitate cooperative state and local planning efforts.

(1) The department of transportation may serve as a contractor for rail design, administer construction, and assist agencies authorized to provide rail service in the acquisition, preservation, and joint use of rights of way.

(2) The state and local jurisdictions may further cooperate with respect to the development of park-and-ride facilities, associated roadways, transfer stations, and other related projects. The department of transportation shall continue to follow its current policy with respect to park-and-ride lots and existing rights of way for passenger rail development, where appropriate.

NEW SECTION. Sec. 18. RESPONSIBILITY FOR PASSENGER RAIL IMPLEMENTATION. (1) The state shall not become an operating agent for regional passenger rail service.

(2) Agencies providing rail service are responsible for rail transit planning, construction, operations, and funding including station area design and development, and parking facilities. Agencies may implement necessary contracts, joint development agreements, and interlocal government agreements. Agencies providing rail service shall consult with local jurisdictions and cooperate with comprehensive planning processes.

(3) The utilities and transportation commission shall maintain safety responsibility for passenger rail service using freight lines. Agencies providing rail transit on lines other than freight lines shall maintain safety responsibility for that service.

NEW SECTION. Sec. 19. REGIONAL TRANSPORTATION PLANNING AND PASSENGER RAIL PLANNING. Regional transportation plans should be considered in adopting local land use plans. Regional transportation plans and local land use plans should address the impacts of urban growth on effective transit planning and development and provide for cooperation between local jurisdictions and transit agencies.

(1) Regional rail plans shall be included in the designated metropolitan planning organization's regional transportation plan review and update process to facilitate development of a coordinated multimodal transportation system and to meet federal funding requirements.

(2) The state and local jurisdictions shall cooperate in encouraging land uses compatible with passenger rail development. These include developing sufficient land use densities through local actions in rail corridors and near passenger rail stations, preserving transit rights of way, and protecting the region's environmental quality. Agencies providing passenger rail services, in cooperation with public and private interests, shall develop a program to promote transit-compatible land use and development.

(3) Agencies providing rail service and transit agencies shall develop a cooperative process for the planning, development, operations, and funding of feeder transportation systems.

(4) Jurisdictions, working through their designated metropolitan planning organizations, shall manage a right of way preservation review process which includes activities to promote the preservation of the high capacity transit rights of way.

(a) Jurisdictions shall forward all development proposals for projects within identified corridors to the designated metropolitan planning organizations, which shall distribute project files for local and regional agency review.

(b) The metropolitan planning organizations shall also review project files for conformance with the regional transportation plan and associated regional development strategies. The designated metropolitan planning organization shall communicate concerns to the originating jurisdiction and the joint regional policy committee or, if established, a regional rail transit authority.

NEW SECTION. Sec. 20. DEPARTMENT OF TRANSPORTATION RESPONSIBILITIES. The department of transportation shall, upon dissolution of the rail development commission, assume responsibility for the rail development account and shall review funding requests with criteria in subsection (3) of this section.

(1) The department of transportation shall establish an advisory council pursuant to RCW 47.01.091 to assist in the review of requests for rail development account funds. The council shall be comprised of one representative from each congressional district, the executive director or a designee of the transportation improvement board, and the chair or designee of the legislative transportation committee.

(2) State rail development account funds may provide up to eighty percent matching assistance for passenger rail planning efforts and for support of interim regional rail transit authorities.

(3) Authorizations for state funding for rail passenger planning projects shall be subject to the following criteria:

(a) Conformance with the designated metropolitan planning organization's regional transportation plan;

(b) Dedicated local funding;

(d) Preparation of an alternatives analysis where applicable;

(e) Satisfaction of urban mass transportation administration requirements, whenever useful; and

(f)(i) Establishment, through interlocal agreements, of a regional policy committee with proportional representation based upon population distribution within each agency's designated service area as defined in section 14 of this act;

(ii) Establishment of a demonstrated regional agreement through a multijurisdictional conference to pursue rail development on a subregional basis through established transit planning and operating agencies as defined in section 15 of this act; or

(iii) Establishment, through a multijurisdictional conference, of an interim regional rail transit authority as defined in section 15 of this act.

NEW SECTION. Sec. 21. IDENTIFICATION OF TRANSIT RIGHTS OF WAY. Local jurisdictions, agencies providing rail service, and the department of transportation shall identify transit rights of way. The following criteria are recommended for identifying these corridors:

(1) Capital and operating costs per corridor;

(2) Compliance with regional goals and plans;

(3) Congestion, measured in terms of traffic volumes and capacity of existing and new transportation systems;

(4) Current and future land use, with respect to activity centers, pedestrian access, and development densities in core areas;

(5) Economic development opportunities for jobs, joint development projects, or urban redevelopment programs;

(6) Environmental factors;

(7) Existing rights of way, established by railroad, utility, or roadway uses; and

(8) Transit ridership, both current and future, as measured by peak-hour ridership and passengers per hour throughout the day.

NEW SECTION. Sec. 22. RANKING OF CORRIDORS. Local jurisdictions, agencies providing rail service, and the department of transportation shall evaluate corridors for implementation priority. The following criteria are recommended for ranking such corridors:

(1) Appropriate land uses near station areas, as prescribed by local land use and transportation policies and measured by access to activity centers, nonresidential development, regional shopping facilities, population, and residential densities, as well as future development opportunities;

(2) Community acceptance of and financial commitment to a regional rail system;

(3) Congestion, measured in terms of traffic volumes and capacity of existing and new transportation systems;

(4) Corridor ridership including peak-hour, daily, and per mile ridership for transit and projected rail service;

(5) Cost-effectiveness, as indexed by annualized costs, cost per trip, travel time savings, local resources, and ridership in comparison to transportation system management options such as "no-build";

(6) Economic development, measured by percentage increases in jobs or access to jobs, and the potential to recapture lost right of way property tax revenue by encouraging joint development or urban redevelopment projects adjacent to the system; and

(7) Environmental impact.

NEW SECTION. Sec. 23. COMMUTER RAIL SERVICE. (1) The department of transportation and local jurisdictions shall seek to identify intercity rail rights of way which may be used for commuter rail service corridors in the future.

(2) City-owned transit service, county transportation authorities, metropolitan municipal corporations, and public transportation benefit areas may operate or contract for commuter rail service where it is deemed to be a reasonable alternative transit mode.

(3) Commuter rail projects seeking state or regional support shall be evaluated within the context of the designated metropolitan planning organization's regional transportation plans and shall be subject to the selection criteria in section 20(3) of this act.

(4) The utilities and transportation commission shall maintain safety responsibility for passenger rail service using freight lines. Agencies providing rail transit on lines other than freight lines shall maintain safety responsibility for that service.

NEW SECTION. Sec. 24. FINANCIAL RESPONSIBILITY. Agencies providing rail service shall determine optimal debt-to-equity ratios, establish capital and operations allocations, and establish fare-box recovery return policy.

NEW SECTION. Sec. 25. FINANCING FOR PASSENGER RAIL PROGRAMS. (1) The state authorizes to local jurisdictions, which are those agencies authorized to provide rail service, including city-owned transit systems, county transportation authorities, metropolitan municipal corporations and public transportation benefit areas, dedicated funding sources to ensure implementation of successful high quality passenger rail service.

(2) Agencies providing rail service should also seek other funds, including federal, state, local, and private sector assistance.

(3) Funding sources should satisfy each of the following criteria to the greatest extent possible:

(a) Acceptability;

(b) Ease of administration;

(d) Implementation feasibility;

(e) Revenue reliability; and

(f) Revenue yield.

(4) The state authorizes agencies participating in regional passenger rail development through interlocal agreements or a conference-approved interim regional rail authority or subregional process as defined in section 15 of this act to levy and collect the following voter approved local option funding sources:

(a) Employer tax;

(b) Special motor vehicle excise tax up to one percent;

(d) An ad valorem property tax in excess of the one percent limitation, not to exceed three dollars per one thousand dollars of assessed value;

(e) Sales tax on fuel;

(f) Sales and use tax of up to one percent; and

(g) Vehicle license fee.

Revenues from these taxes may only be used to support those purposes prescribed in subsection (8) of this section.

(5) Authorization in subsection (4) of this section shall not adversely affect the funding authority of existing transit agencies. Local option funds may be used to support implementation of interlocal agreements with respect to the establishment of regional rail transit service. Local jurisdictions shall retain control over moneys generated within their boundaries, although funds may be commingled for rail planning, construction, and operations as set forth in the agreements.

(6) Agencies providing passenger rail service may contract with the state for collection and transference of local option revenue.

(7) Dedicated rail funding shall be subject to voter approval by a simple majority within the proposed rail transit service districts.

(8) Agencies providing rail transit service shall retain responsibility for revenue encumbrance, disbursement, and bonding. Funds may be used for any purpose relating to planning, construction, and operation of a rail transit, commuter rail, and feeder transportation system.

(9) Jurisdictions may seek state and other funding for passenger rail projects from sources besides the rail development account, subject to the selection criteria in section 20(3) of this act.

NEW SECTION. Sec. 26. AMTRAK. The department, in conjunction with local jurisdictions, shall coordinate as appropriate with the designated metropolitan planning organizations to develop a program for improving Amtrak passenger rail service. The program may include:

(1) Determination of the appropriate level of Amtrak passenger rail service;

(2) Implementation of higher train speeds for Amtrak passenger rail service, where safety considerations permit;

(3) Recognition, in the state's long range planning process, of potential higher speed intercity passenger rail service, while monitoring socioeconomic and technological conditions as indicators for higher speed systems; and

(4) Identification of existing intercity rail rights of way which may be used for public transportation corridors in the future.

NEW SECTION. Sec. 27. AMTRAK DEPOTS. The department shall, when feasible, assist local jurisdictions in upgrading Amtrak depots. Multimodal use of these facilities shall be encouraged.

NEW SECTION. Sec. 28. AMTRAK SERVICE EXTENSION. (1) The department, in conjunction with local jurisdictions, shall coordinate as appropriate with designated metropolitan and provincial transportation organizations to pursue resumption of Amtrak service from Seattle to Vancouver, British Columbia, via Everett, Mount Vernon, and Bellingham.

(2) The department, in conjunction with local jurisdictions, shall study potential Amtrak service on the following routes:

(a) Daytime Spokane-Wenatchee-Everett-Seattle service;

(b) Daytime Spokane-Tri-Cities-Vancouver-Portland service;

(d) More frequent Portland-Vancouver-Kelso-Centralia- Olympia-Tacoma-Seattle service or increments thereof.

NEW SECTION. Sec. 29. AMTRAK COORDINATION. The department, with other state and local agencies shall coordinate as appropriate with designated metropolitan planning organizations to provide public information with respect to common carrier passenger transportation. This information may include maps, routes, and schedules of passenger rail service, local transit agencies, air carriers, private ground transportation providers, and international, state, and local ferry services.

The state shall continue its cooperative relationship with Amtrak and Canada's Via Rail system.

NEW SECTION. Sec. 30. AMTRAK SERVICE. The department, in conjunction with local jurisdictions, shall determine the appropriate level, source, and justification for funding of improved Amtrak passenger rail service.

NEW SECTION. Sec. 31. A new section is added to chapter 35.21 RCW to read as follows:

EMPLOYER TAX FOR PASSENGER RAIL SERVICE. Cities, county transportation authorities, metropolitan municipal corporations, and public transportation benefit areas, for the purpose of providing passenger rail service may submit an authorizing proposition to the voters and if approved may impose and collect a tax on the employers, based upon the employer's number of employees. The rate of such tax shall be approved by the voters.

NEW SECTION. Sec. 32. A new section is added to chapter 35.58 RCW to read as follows:

MOTOR VEHICLE EXCISE TAX FOR PASSENGER RAIL SERVICE. Any city, county transportation authority, metropolitan municipal corporation, or public transportation benefit area, for the purpose of providing passenger rail service may submit an authorizing proposition to the voters, and if approved, may levy and collect an excise tax, at a rate approved by the voters, but not exceeding one percent on the fair market value of every motor vehicle owned by a resident of such city, county transportation authority, metropolitan municipal corporation, or public transportation benefit area providing passenger rail service for the privilege of using such motor vehicle.

NEW SECTION. Sec. 33. A new section is added to chapter 35.21 RCW to read as follows:

PARKING TAX FOR PASSENGER RAIL SERVICE. Cities, county transportation authorities, metropolitan municipal corporations, and public transportation benefit areas, for the purpose of providing passenger rail service may submit an authorizing proposition to the voters and if approved may levy and collect annually upon every person engaged in commercial parking business activities, a parking tax equal to the gross proceeds of such business multiplied by a rate as approved by the voters.

NEW SECTION. Sec. 34. A new section is added to chapter 35.21 RCW to read as follows:

EXCESS AD VALOREM PROPERTY TAXES FOR RAIL PASSENGER SERVICE. (1) Cities, county transportation authorities, metropolitan municipal corporations, and public transportation benefit areas, for the purpose of providing passenger rail service, may levy an ad valorem property tax, in excess of the one percent limitation, upon the property within the taxing district for a one-year period whenever authorized by the voters of the taxing district pursuant to RCW 84.52.052 and Article VII, section 2(a) of the state Constitution.

(2) Cities, county transportation authorities, metropolitan municipal corporations, and public transportation benefit areas, for the purpose of providing passenger rail service, may provide for the retirement of voter approved general obligation bonds, issued for capital purposes only, by levying bond retirement ad valorem property tax levies, in excess of the one percent limitation, whenever authorized by the voters of the taxing district pursuant to Article VII, section 2(b) of the state Constitution and RCW 84.52.056.

NEW SECTION. Sec. 35. A new section is added to chapter 35.21 RCW to read as follows:

BONDING FOR PROPERTY TAX. (1) The following taxing districts: Cities, county transportation authorities, metropolitan municipal corporations, and public transportation benefit areas, for the purpose of providing passenger rail service, may issue general obligation bonds, not to exceed an amount, together with any other outstanding nonvoter approved general obligation indebtedness, equal to three-fourths of one percent of the value of taxable property within the district, as the term "value of taxable property" is defined in RCW 39.36.015. A taxing district may additionally issue general obligation bonds for capital purposes only, together with any outstanding general obligation indebtedness, not to exceed an amount equal to one and one-fourth percent of the value of the taxable property within the district, as the term "value of taxable property" is defined in RCW 39.36.015, when authorized by the voters of the taxing district pursuant to Article VIII, section 6 of the state Constitution, and to provide for the retirement thereof by excess property tax levies as provided in RCW 36.83.030(2). The taxing district may submit a single proposition to the voters which, if approved, authorizes both the issuance of the bonds and the bond retirement property tax levies.

(2) General obligation bonds with a maturity in excess of forty years shall not be issued. The governing body of the taxing district shall by resolution determine for each general obligation bond issue the amount, date, terms, conditions, denominations, maximum fixed or variable interest rate or rates, maturity or maturities, redemption rights, registration privileges, manner of execution, manner of sale, callable provisions, if any, covenants, and form, including registration as to principal and interest, registration as to principal only, or bearer. Registration may include, but not be limited to: (a) A book entry system of recording the ownership of a bond whether or not physical bonds are issued; or (b) recording the ownership of a bond together with the requirement that the transfer of ownership may only be effected by the surrender of the old bond and either the reissuance of the old bond or the issuance of a new bond to the new owner. Facsimile signatures may be used on the bonds and any coupons. Refunding general obligation bonds may be issued in the same manner as general obligation bonds are issued.

(3) Whenever general obligation bonds are issued to fund specific projects or enterprises that generate revenues, charges, user fees, or special assessments, the taxing district which issues the bonds may specifically pledge all or a portion of the revenues, charges, user fees, or special assessments to refund the general obligation bonds.

Sec. 36. Section 18, chapter 1, Laws of 1988 ex. sess. and RCW 84.52.052 are each amended to read as follows:

The limitations imposed by RCW 84.52.050 through 84.52.056, and RCW 84.52.043 shall not prevent the levy of additional taxes by any taxing district except school districts in which a larger levy is necessary in order to prevent the impairment of the obligation of contracts. Any county, metropolitan park district, park and recreation service area, park and recreation district, sewer district, water district, solid waste disposal district, public facilities district, flood control zone district, county rail district, service district, public hospital district, road district, rural county library district, island library district, intercounty rural library district, fire protection district, cemetery district, city, town, or cultural arts, stadium, ((~~and~~)) convention district, transportation benefit district, county transportation authority, metropolitan municipal corporation, and public transportation benefit area may levy and collect taxes at a rate in excess of the rate specified in RCW 84.52.050 through 84.52.056 and RCW 84.52.043, or RCW 84.55.010 through 84.55.050, when authorized so to do by the electors of such county, metropolitan park district, park and recreation service area, park and recreation district, sewer district, water district, solid waste disposal district, public facilities district, flood control zone district, county rail district, service district, public hospital district, road district, rural county library district, island library district, intercounty rural library district, fire protection district, cemetery district, city, town, or cultural arts, stadium, ((~~and~~)) convention district, transportation benefit district, county transportation authority, metropolitan municipal corporation, and public transportation benefit area in the manner set forth in Article VII, section 2(a) of the Constitution of this state, as amended by Amendment 64 and as thereafter amended, at a special or general election to be held in the year in which the levy is made.

A special election may be called and the time therefor fixed by the county legislative authority, or council, board of commissioners, or other governing body of any metropolitan park district, park and recreation service area, park and recreation district, sewer district, water district, solid waste disposal district, public facilities district, flood control zone district, county rail district, service district, public hospital district, road district, rural county library district, island library district, intercounty rural library district, fire protection district, cemetery district, city, town, or cultural arts, stadium, ((~~and~~)) convention district, transportation benefit district, county transportation authority, metropolitan municipal corporation, and public transportation benefit area, by giving notice thereof by publication in the manner provided by law for giving notices of general elections, at which special election the proposition authorizing such excess levy shall be submitted in such form as to enable the voters favoring the proposition to vote "yes" and those opposed thereto to vote "no."

NEW SECTION. Sec. 37. A new section is added to chapter 35.21 RCW to read as follows:

SALES TAX ON FUEL FOR PASSENGER RAIL SERVICE. Cities, county transportation authorities, metropolitan municipal corporations, and public transportation benefit areas, for the purpose of providing passenger rail service may submit an authorizing proposition to the voters and if approved may levy and collect a local sales tax at a rate to be approved by the voters on motor vehicle fuel, as the term is defined in RCW 82.36.010, on every sale to a consumer within the city, county transportation authority, metropolitan municipal corporation, and public transportation benefit area. "Consumer" means any person who purchases, acquires, owns, holds, or uses motor vehicle fuel except for the purpose of resale.

NEW SECTION. Sec. 38. A new section is added to chapter 82.14 RCW to read as follows:

SALES AND USE TAXES FOR PASSENGER RAIL SERVICE. The legislative bodies of cities, county transportation authorities, metropolitan municipal corporations, and public transportation benefit areas, for the purpose of providing passenger rail service may submit an authorizing proposition to the voters to perform the function of passenger rail service and if approved by a majority of persons voting, fix and impose a sales and use tax in accordance with the terms of this chapter.

The tax authorized pursuant to this section shall be in addition to the tax authorized by RCW 82.14.030 and shall be collected from those persons who are taxable by the state pursuant to chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event within such city, county transportation authority, metropolitan municipal corporation, or public transportation benefit area, as the case may be. The rate of such tax shall be approved by the voters and shall not exceed 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).

NEW SECTION. Sec. 39. A new section is added to chapter 35.21 RCW to read as follows:

VEHICLE LICENSE FEE FOR PASSENGER RAIL SERVICE. Cities, county transportation authorities, metropolitan municipal corporations, and public transportation benefit areas, for the purpose of providing passenger rail service may submit an authorizing proposition to the voters and if approved may levy and collect an additional fee on the licensing of vehicles within the city, county transportation authority, metropolitan municipal corporation, and public transportation benefit area, subject to license fees under RCW 46.16.060. The rate of such license fee shall be approved by the voters.

NEW SECTION. Sec. 40. A new section is added to chapter 35.21 RCW to read as follows:

BOND RETIREMENT FOR PASSENGER RAIL SERVICE. Cities, county transportation authorities, metropolitan municipal corporations, and public transportation benefit areas are authorized to pledge revenues from the employer tax authorized by section 31 of this act, the special motor vehicle excise tax authorized by section 32 of this act, the parking tax authorized by section 33 of this act, the excess property tax authorized by section 34 of this act, the sales tax on fuel authorized by section 37 of this act, the sales and use tax authorized by section 38 of this act, and the vehicle license fee authorized by section 39 of this act, to retire bonds issued for the purpose of providing passenger rail service.

NEW SECTION. Sec. 41. RAIL DEVELOPMENT ACCOUNT REVIEW. The department of transportation shall review the rail development account funding and allocation formula and propose appropriate changes to the 1991 legislature.

NEW SECTION. Sec. 42. The sum of four million seven hundred thousand dollars, or as much thereof as may be necessary, is transferred from the general fund to the essential rail assistance account and is appropriated for the biennium ending June 30, 1991, to the department of transportation for the purposes stated in RCW 47.76.030.

NEW SECTION. Sec. 43. The sum of two million two hundred thousand dollars, or as much thereof as may be necessary, is transferred from the general fund to the essential rail banking account and is appropriated for the biennium ending June 30, 1991, to the department of transportation for the purposes stated in section 7 of this act.

NEW SECTION. Sec. 44. The sum of four hundred twenty-six thousand dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1991, from the general fund to the department of transportation for the purposes of administration of the state freight rail program.

NEW SECTION. Sec. 45. The sum of eight million one hundred thirty-five thousand eight hundred fourteen dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1991, from the rail development account to the department of transportation for the purposes of implementing a passenger rail program under sections 12 through 25 of this act.

NEW SECTION. Sec. 46. The sum of five hundred thousand dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1991, from the rail development account to the department of transportation for the purposes of a study to determine ways of increasing Amtrak rail service coordination and planning efforts within the state of Washington.

NEW SECTION. Sec. 47. Sections 1 through 10 of this act are each added to chapter 47.76 RCW.

NEW SECTION. Sec. 48. Sections 12 through 25 of this act shall constitute a new chapter in Title 81 RCW.

NEW SECTION. Sec. 49. Sections 26 through 30 of this act shall constitute a new chapter in Title 47 RCW.

NEW SECTION. Sec. 50. Section headings as used in this act do not constitute any part of the law.

NEW SECTION. Sec. 51. 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. 52. 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 shall take effect July 1, 1989.