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TWENTY-FOURTH DAY


First Special Session


__________


MORNING SESSION


__________


House Chamber, Olympia, Wednesday, May 17, 1995


             The House was called to order at 10:00 a.m. by the Speaker (Representative Horn presiding). The Clerk called the roll and a quorum was present.


             The flag was escorted to the rostrum by a Sergeant at Arms Color Guard, Pages Tory Tjersland and Ken Dunn. Prayer was offered by Representative Cooke.


             Reading of the Journal of the previous day was dispensed with and it was ordered to stand approved.


             The Speaker (Representative Horn presiding) declared the House to be at ease.


             The Speaker called the House to order.


MESSAGE FROM THE SENATE


May 16, 1995


Mr. Speaker:


             The Senate has passed:


SENATE BILL NO. 6010,

SUBSTITUTE SENATE BILL NO. 6058,

ENGROSSED SENATE CONCURRENT RESOLUTION NO. 8404,



and the same are herewith transmitted.


Marty Brown, Secretary


SIGNED BY THE SPEAKER


             The Speaker announced he was signing:


SUBSTITUTE SENATE BILL NO. 5408,


             There being no objection, the Rules Committee was relieved of Engrossed Substitute House Bill No. 1317, House Bill No. 1016 and Substitute House Bill No. 1093 and the bills were placed on third reading.


MOTION


             On motion of Representative Patterson, Representatives Chappell, Dellwo, Ogden, Scott and Tokuda were excused.


             There being no objection, the rules were suspended, and House Bill No. 1016 was returned to second reading for the purpose of an amendment.


             HOUSE BILL NO. 1016, by Representatives K. Schmidt and Kremen

 

Exempting state and county ferry fuel sales and use tax.


             The bill was read the second time.


             Representative K. Schmidt moved adoption of the following amendment by Representative K. Schmidt:


             Strike everything after the enacting clause and insert the following:


             "Sec. 1. RCW 82.38.030 and 1989 c 193 s 3 are each amended to read as follows:

             (1) There is hereby levied and imposed upon special fuel users a tax at the rate computed in the manner provided in RCW 82.36.025 per gallon or each one hundred cubic feet of compressed natural gas measured at standard pressure and temperature on the use of special fuel in any motor vehicle, or a ferry owned or operated by the state of Washington or one of its political subdivisions, operated upon the highways or waterways of this state during the fiscal year for which such rate is applicable.

             (2) The tax shall be collected by the special fuel dealer and shall be paid over to the department as hereinafter provided: (a) With respect to all special fuel delivered by a special fuel dealer into supply tanks of motor vehicles or into storage facilities used for the fueling of motor vehicles at unbonded service stations in this state; or (b) in all other transactions where the purchaser is not the holder of a valid special fuel license issued pursuant to this chapter allowing the purchase of untaxed special fuel, except sales of special fuel for export. To claim an exemption on account of sales by a licensed special fuel dealer for export, the purchaser shall obtain from the selling special fuel dealer, and such selling special fuel dealer must furnish the purchaser, an invoice giving such details of the sale for export as the director may require, copies of which shall be furnished the department and the entity of the state or foreign jurisdiction of destination which is charged by the laws of that state or foreign jurisdiction with the control or monitoring or both, of the sales or movement of special fuel in that state or foreign jurisdiction.

             (3) The tax shall be paid over to the department by the special fuel user as hereinafter provided with respect to the taxable use of special fuel upon which the tax has not previously been imposed.

             It is expressly provided that delivery of special fuel may be made without collecting the tax otherwise imposed, when such deliveries are made by a bonded special fuel dealer to special fuel users who are authorized by the department as hereinafter provided, to purchase fuel without payment of tax to the bonded special fuel dealer.


             Sec. 2. RCW 82.36.410 and 1973 c 95 s 5 are each amended to read as follows:

             All moneys collected by the director shall be transmitted forthwith to the state treasurer, together with a statement showing whence the moneys were derived, and shall be by him credited to the motor vehicle fund. All revenues from fuel purchased for marine use by the state ferry system shall be credited to the Puget Sound ferry operations account created under RCW 47.60.530. All revenues from fuel purchased for marine use by Pierce, Skagit, and Whatcom counties for county ferry operations shall be credited to the motor vehicle fund and distributed under RCW 46.68.100(3) and allocated according to RCW 47.56.725. All revenues from fuel purchased by Wahkiakum county for county ferry operations shall be directly reimbursed by the state treasurer to the Wahkiakum county treasurer.


             Sec. 3. RCW 47.56.725 and 1991 c 310 s 1 are each amended to read as follows:

             (1) The department is hereby authorized to enter into a continuing agreement with Pierce, Skagit, and Whatcom counties pursuant to which the department shall, from time to time, direct the distribution to each of the counties the amounts authorized in subsection (2) of this section in accordance with RCW 46.68.100.

             (2) The department is authorized to include in each agreement a provision for the distribution of funds to each county to reimburse the county for fifty percent of the deficit incurred during each previous fiscal year in the operation and maintenance of the ferry system owned and operated by the county. The total amount to be reimbursed to Pierce, Skagit, and Whatcom counties collectively shall not exceed one million dollars in any biennium. Refunds of motor vehicle fuel taxes for county ferry operations shall not be considered in the amount to be reimbursed. Each county agreement shall contain a requirement that the county shall maintain tolls on its ferries at least equal to tolls in place on January 1, 1990.

             (3) The annual fiscal year operating and maintenance deficit, if any, shall be determined by Pierce, Skagit, and Whatcom counties subject to review and approval of the department. The annual fiscal year operating and maintenance deficit is defined as the total of operations and maintenance expenditures less the sum of ferry toll revenues and that portion of fuel tax revenue distributions which are attributable to the county ferry as determined by the department. Distribution of the amounts authorized by subsection (2) of this section by the state treasurer shall be directed by the department upon the receipt of properly executed vouchers from each county.

             (4) The county road administration board may evaluate requests by Pierce, Skagit, Wahkiakum, and Whatcom counties for county ferry capital improvement funds. The board shall evaluate the requests and, if approved by a majority of the board, submit the requests to the legislature for funding out of the amounts available under RCW 46.68.100(3). Any county making a request under this subsection shall first seek funding through the public works trust fund, or any other available revenue source, where appropriate."


             On page 1, line 1 of the title, after "ferries;" strike the remainder of the title and insert "and amending RCW 82.38.030, 82.36.410, and 47.56.725."


             Representative K. Schmidt spoke in favor of the adoption of the amendment.


MOTION


             On motion of Representative Patterson, Representatives Brown and Morris were excused.


             The amendment was adopted.


             The bill was ordered engrossed.


             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.


             Representatives K. Schmidt and R. Fisher spoke in favor of passage of the bill.


MOTION


             On motion of Representative Talcott, Representative Horn was excused.


             The Speaker stated the question before the House to be final passage of Engrossed House Bill No. 1016.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed House Bill No. 1016, and the bill passed the House by the following vote: Yeas - 74, Nays - 15, Absent - 0, Excused - 9.

             Voting yea: Representatives Appelwick, Backlund, Ballasiotes, Basich, Beeksma, Benton, Blanton, Boldt, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Clements, Conway, Cooke, Costa, Crouse, Delvin, Dyer, Elliot, Fisher, R., Foreman, Fuhrman, Goldsmith, Grant, Hankins, Hargrove, Hatfield, Hickel, Honeyford, Huff, Hymes, Jacobsen, Johnson, Kessler, Koster, Kremen, Lambert, Lisk, Mastin, McMahan, McMorris, Mielke, Mitchell, Mulliken, Pennington, Quall, Radcliff, Reams, Regala, Robertson, Romero, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Sterk, Stevens, Talcott, Thomas, B., Thomas, L., Thompson, Van Luven, Wolfe and Mr. Speaker - 74.

             Voting nay: Representatives Casada, Chopp, Cody, Cole, Dickerson, Fisher, G., Mason, Patterson, Pelesky, Poulsen, Rust, Sommers, Thibaudeau, Valle and Veloria - 15.

             Excused: Representatives Brown, Chandler, Chappell, Dellwo, Ebersole, Horn, Morris, Ogden and Tokuda - 9.


             Engrossed House Bill No. 1016, having received the constitutional majority, was declared passed.


             There being no objection, the rules were suspended, and Substitute House Bill No. 1093 was returned to second reading for the purpose of an amendment.


             SUBSTITUTE HOUSE BILL NO. 1093, by House Committee on Transportation (originally sponsored by Representatives K. Schmidt, Johnson, Romero and Wolfe; by request of Department of General Administration)

 

Revising bidding procedures for public agencies.


             The bill was read the second time.


             Representative K. Schmidt moved adoption of the following amendment by Representative K. Schmidt:


             Strike everything after the enacting clause and insert the following:


             "Sec. 1. RCW 47.56.030 and 1977 ex.s. c 151 s 66 are each amended to read as follows:

             The department of transportation shall have full charge of the construction of all toll bridges and other toll facilities including the Washington state ferries, and the operation and maintenance thereof. The transportation commission shall determine and establish the tolls and charges thereon, and shall perform all duties and exercise all powers relating to the financing, refinancing, and fiscal management of all toll bridges and other toll facilities including the Washington state ferries, and bonded indebtedness in the manner provided by law. The department shall have full charge of design of all toll facilities. The department shall proceed with the construction of such toll bridges and other facilities and the approaches thereto by contract in the manner of state highway construction immediately upon there being made available funds for such work and shall prosecute such work to completion as rapidly as practicable. The department is authorized to negotiate contracts for any amount without bid in order to make repairs to ferries or ferry terminal facilities or removal of such facilities whenever continued use of ferries or ferry terminal facilities constitutes a real or immediate danger to the traveling public or precludes prudent use of such ferries or facilities.

             The department shall proceed with the procurement of materials, supplies, services, and equipment needed for the support, maintenance, and use of a ferry, ferry terminal, or other facility operated by Washington state ferries, in accordance with chapter 43.19 RCW except as follows:

             (1) When the secretary of the department of transportation determines in writing that the use of invitation for bid is either not practicable or not advantageous to the state and it may be necessary to make competitive evaluations, including technical or performance evaluations among acceptable proposals to complete the contract award, a contract may be entered into by use of a competitive sealed proposals method, and a formal request for proposals solicitation. Such formal request for proposals solicitation shall include a functional description of the needs and requirements of the state and the significant factors.

             (2) When purchases are made through a formal request for proposals solicitation the contract shall be awarded to the responsible proposer whose competitive sealed proposal is determined in writing to be the most advantageous to the state taking into consideration price and other evaluation factors set forth in the request for proposals. No significant factors may be used in evaluating a proposal that are not specified in the request for proposals. Factors that may be considered in evaluating proposals include but are not limited to: Price maintainability; reliability; commonality; performance levels; life cycle cost if applicable under this section; cost of transportation or delivery; delivery schedule offered; installation cost; cost of spare parts; availability of parts and service offered; and the following:

             (a) The ability, capacity, and skill of the proposer to perform the contract or provide the service required;

             (b) The character, integrity, reputation, judgment, experience, and efficiency of the proposer;

             (c) Whether the proposer can perform the contract within the time specified;

             (d) The quality of performance of previous contracts or services;

             (e) The previous and existing compliance by the proposer with laws relating to the contract or services;

             (f) Objective, measurable criteria defined in the request for proposal. These criteria may include but are not limited to items such as discounts, delivery costs, maintenance services costs, installation costs, and transportation costs; and

             (g) Such other information as may be secured having a bearing on the decision to award the contract.

             When purchases are made through a request for proposal process, proposals received shall be evaluated based on the evaluation factors set forth in the request for proposal. When a life cycle cost analysis is used, the life cycle cost of a proposal shall be given at least the same relative importance as the initial price element specified in the request of proposal documents. The department may reject any and all proposals received. If the proposals are not rejected, the award shall be made to the proposer whose proposal is most advantageous to the department, considering price and the other evaluation factors set forth in the request for proposal.

             (3) The legislative transportation committee shall review the secretary's use of the request for proposals solicitation for Washington state ferries projects to determine if the process established under this act is appropriate. The results of the review, including recommendations for modification of the request for proposal process, shall be reported to the house of representatives and senate transportation committees by January 1, 1997.


             Sec. 2. RCW 47.60.140 and 1987 c 69 s 1 are each amended to read as follows:

             (1) The department is empowered to operate such ferry system, including all operations, whether intrastate or international, upon any route or routes, and toll bridges as a revenue-producing and self-liquidating undertaking. The department has full charge of the construction, rehabilitation, rebuilding, enlarging, improving, operation, and maintenance of the ferry system, including toll bridges, approaches, and roadways incidental thereto that may be authorized by the department, including the collection of tolls and other charges for the services and facilities of the undertaking. The department has the exclusive right to enter into leases and contracts for use and occupancy by other parties of the concessions and space located on the ferries, wharves, docks, approaches, and landings, but, except as provided in subsection (2) of this section, no such leases or contracts may be entered into for more than ((five years, nor without public advertisement for bids as may be prescribed by the department. However, except as provided in subsection (2) of this section, the Colman Dock facilities may be leased for a period not to exceed)) ten years, nor without a competitive contract process, except as otherwise provided in this section. The competitive process shall be either an invitation for bids in accordance with the process established by chapter 43.19 RCW, or a request for proposals in accordance with the process established by RCW 47.56.030.

             (2) As part of a joint development agreement under which a public or private developer constructs or installs improvements on ferry system property, the department may lease all or part of such property and improvements to such developers for that period of time, not to exceed fifty-five years, or not to exceed thirty years for those areas located within harbor areas, which the department determines is necessary to allow the developer to make reasonable recovery on its initial investment. Any lease entered into as provided for in this subsection that involves state aquatic lands shall conform with the Washington state Constitution and applicable statutory requirements as determined by the department of natural resources. That portion of the lease rate attributable to the state aquatic lands shall be distributed in the same manner as other lease revenues derived from state aquatic lands as provided in RCW 79.24.580.


             NEW SECTION. Sec. 3. The following acts or parts of acts are each repealed:

             (1) RCW 47.60.651 and 1987 c 183 s 1;

             (2) RCW 47.60.653 and 1987 c 183 s 2;

             (3) RCW 47.60.655 and 1987 c 183 s 3;

             (4) RCW 47.60.657 and 1987 c 183 s 4;

             (5) RCW 47.60.659 and 1987 c 183 s 5; and

             (6) RCW 47.60.661 and 1987 c 183 s 6.


             NEW SECTION. Sec. 4. 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 immediately."


             On page 1, line 2 of the title, after "ferries;" strike the remainder of the title and insert "amending RCW 47.56.030 and 47.60.140; repealing RCW 47.60.651, 47.60.653, 47.60.655, 47.60.657, 47.60.659, and 47.60.661; and declaring an emergency."


             Representative K. Schmidt spoke in favor of the adoption of the amendment.


             The amendment was adopted.


             The bill was ordered engrossed.


             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.


             The Speaker stated the question before the House to be final passage of Engrossed Substitute House Bill No. 1093.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 1093, and the bill passed the House by the following vote: Yeas - 89, Nays - 0, Absent - 0, Excused - 9.

             Voting yea: Representatives Appelwick, Backlund, Ballasiotes, Basich, Beeksma, Benton, Blanton, Boldt, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chopp, Clements, Cody, Cole, Conway, Cooke, Costa, Crouse, Delvin, Dickerson, Dyer, Elliot, Fisher, G., Fisher, R., Foreman, Fuhrman, Goldsmith, Grant, Hankins, Hargrove, Hatfield, Hickel, Honeyford, Huff, Hymes, Jacobsen, Johnson, Kessler, Koster, Kremen, Lambert, Lisk, Mason, Mastin, McMahan, McMorris, Mielke, Mitchell, Mulliken, Patterson, Pelesky, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Romero, Rust, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Sommers, Sterk, Stevens, Talcott, Thibaudeau, Thomas, B., Thomas, L., Thompson, Valle, Van Luven, Veloria, Wolfe and Mr. Speaker - 89.

             Excused: Representatives Brown, Chandler, Chappell, Dellwo, Ebersole, Horn, Morris, Ogden and Tokuda - 9.

             Engrossed Substitute House Bill No. 1093, having received the constitutional majority, was declared passed.


             There being no objection, the House reverted to the fourth order of business.


INTRODUCTIONS AND FIRST READING

 

SSB 5231          by Senate Committee on Transportation (originally sponsored by Senators Owen and Prince; by request of Department of Transportation)

 

Separating payment of transportation agency tort liabilities.

 

SB 6073            by Senators Smith and Schow

 

Amending RCW 46.63.020 to include reference to section 5 of Substitute Senate Bill No. 5141.


             There being no objection, the rules were suspended, and Substitute Senate Bill No. 5231 and Senate Bill No. 6073 were advanced to second reading and read the second time in full.


             SUBSTITUTE SENATE BILL NO. 5231, by Senate Committee on Transportation (originally sponsored by Senators Owen and Prince; by request of Department of Transportation)

 

Separating payment of transportation agency tort liabilities.


             The bill was read the second time.


             There being no objection, the House deferred further consideration of Substitute Senate Bill No. 5231 and the bill held it's place on the second reading calendar.


             The Speaker declared the House to be at ease.


             The Speaker called the House to order.


             There being no objection, the House resumed consideration of Substitute Senate Bill No. 5231.


             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.


             Representative K. Schmidt spoke in favor of passage of the bill.


             The Speaker stated the question before the House to be final passage of Substitute Senate Bill No. 5231.


ROLL CALL


             The Clerk called the roll on the final passage of Substitute Senate Bill No. 5231, and the bill passed the House by the following vote: Yeas - 90, Nays - 0, Absent - 0, Excused - 8.

             Voting yea: Representatives Appelwick, Backlund, Ballasiotes, Basich, Beeksma, Benton, Blanton, Boldt, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chopp, Clements, Cody, Cole, Conway, Cooke, Costa, Crouse, Delvin, Dickerson, Dyer, Ebersole, Elliot, Fisher, G., Fisher, R., Foreman, Fuhrman, Goldsmith, Grant, Hankins, Hargrove, Hatfield, Hickel, Honeyford, Horn, Huff, Hymes, Jacobsen, Johnson, Kessler, Koster, Kremen, Lambert, Lisk, Mason, Mastin, McMahan, McMorris, Mielke, Mitchell, Mulliken, Patterson, Pelesky, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Romero, Rust, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Sommers, Sterk, Stevens, Talcott, Thibaudeau, Thomas, B., Thomas, L., Valle, Van Luven, Veloria, Wolfe and Mr. Speaker - 90.

             Excused: Representatives Brown, Chandler, Chappell, Dellwo, Morris, Ogden, Thompson and Tokuda - 8.


             Substitute Senate Bill No. 5231, having received the constitutional majority, was declared passed.


             SENATE BILL NO. 6073, by Senators Smith and Schow

 

Amending RCW 46.63.020 to include reference to section 5 of Substitute Senate Bill No. 5141.


             The bill was read the second time.


             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.


             Representative Sheahan spoke in favor of passage of the bill.


             The Speaker stated the question before the House to be final passage of Senate Bill No. 6073.


ROLL CALL


             The Clerk called the roll on the final passage of Senate Bill No. 6073, and the bill passed the House by the following vote: Yeas - 90, Nays - 0, Absent - 0, Excused - 8.

             Voting yea: Representatives Appelwick, Backlund, Ballasiotes, Basich, Beeksma, Benton, Blanton, Boldt, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Casada, Chopp, Clements, Cody, Cole, Conway, Cooke, Costa, Crouse, Delvin, Dickerson, Dyer, Ebersole, Elliot, Fisher, G., Fisher, R., Foreman, Fuhrman, Goldsmith, Grant, Hankins, Hargrove, Hatfield, Hickel, Honeyford, Horn, Huff, Hymes, Jacobsen, Johnson, Kessler, Koster, Kremen, Lambert, Lisk, Mason, Mastin, McMahan, McMorris, Mielke, Mitchell, Mulliken, Patterson, Pelesky, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Romero, Rust, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Silver, Skinner, Smith, Sommers, Sterk, Stevens, Talcott, Thibaudeau, Thomas, B., Thomas, L., Valle, Van Luven, Veloria, Wolfe and Mr. Speaker - 90.

             Excused: Representatives Brown, Chandler, Chappell, Dellwo, Morris, Ogden, Thompson and Tokuda - 8.


             Senate Bill No. 6073, having received the constitutional majority, was declared passed.


             There being no objection, the rules were suspended, and Engrossed Substitute House Bill No. 1317 was returned to second reading for the purpose of an amendment.


             ENGROSSED SUBSTITUTE HOUSE BILL NO. 1317, by House Committee on Transportation (originally sponsored by Representatives Robertson, Cairnes, B. Thomas, Mitchell, Van Luven, Dyer, Lambert, Radcliff, D. Schmidt, Backlund, Cooke, Reams, Campbell, Stevens, L. Thomas and Koster)

 

Revising the selection process for transportation systems and facilities demonstration projects.


             The bill was read the second time.


             With the consent of the House, amendment number 930 to Engrossed Substitute House Bill No. 1317 was withdrawn.


             Representative R. Fisher moved adoption of the following amendment by Representative R. Fisher:


             Strike everything after the enacting clause and insert the following:


             "NEW SECTION. Sec. 1. The following acts or parts of acts are each repealed:

             (1) RCW 47.46.010 and 1993 c 370 s 1;

             (2) RCW 47.46.020 and 1993 c 370 s 2;

             (3) RCW 47.46.030 and 1993 c 370 s 3;

             (4) RCW 47.46.040 and 1993 c 370 s 4;

             (5) RCW 47.46.050 and 1993 c 370 s 5; and

             (6) RCW 47.46.900 and 1993 c 370 s 7.


             NEW SECTION. Sec. 2. 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, 1995.


             NEW SECTION. Sec. 3. The legislature finds and declares:

             It is essential for the economic, social, and environmental well-being of the state and the maintenance of a high quality of life that the people of the state have an efficient transportation system.

             The ability of the state to provide an efficient transportation system will be enhanced by a public-private sector program providing for private entities to undertake all or a portion of the study, planning, design, development, financing, acquisition, installation, construction or improvement, operation, and maintenance of transportation systems and facility projects.

             A public-private initiatives program will provide benefits to both the public and private sectors. Public-private initiatives provide a sound economic investment opportunity for the private sector. Such initiatives will provide the state with increased access to property development and project opportunities, financial and development expertise, and will supplement state transportation revenues, allowing the state to use its limited resources for other needed projects.

             The public-private initiatives program, to the fullest extent possible, should encourage and promote business and employment opportunities for Washington state citizens.

             The public-private initiatives program should be implemented in cooperation and consultation with affected local jurisdictions.

             The secretary of transportation should be permitted and encouraged to test the feasibility of building privately funded transportation systems and facilities or segments thereof through the use of innovative agreements with the private sector. The secretary of transportation should be vested with the authority to solicit, evaluate, negotiate, and administer public-private agreements with the private sector relating to the planning, construction, upgrading, or reconstruction of transportation systems and facilities.

             The department of transportation should be encouraged to take advantage of new opportunities provided by federal legislation under section 1012 of the Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA). That section establishes a new program authorizing federal participation in construction or improvement or improvement of publicly or privately owned toll roads, bridges, and tunnels, and allows states to leverage available federal funds as a means for attracting private sector capital.


             NEW SECTION. Sec. 4. As used in this chapter, "transportation systems and facilities" means capital-related improvements and additions to the state's transportation infrastructure, including but not limited to highways, roads, bridges, vehicles, and equipment, marine-related facilities, vehicles, and equipment, park and ride lots, transit stations and equipment, transportation management systems, and other transportation-related investments.


             NEW SECTION. Sec. 5. The secretary or a designee shall solicit proposals from, and negotiate and enter into agreements with, private entities to undertake as appropriate, together with the department and other public entities, all or a portion of the study, planning, design, construction, operation, and maintenance of transportation systems and facilities, using in whole or in part private sources of financing.

             The public-private initiative program may develop up to six demonstration projects. Each proposal shall be weighed on its own merits, and each of the six agreements shall be negotiated individually, and as a stand-alone project. The commission shall approve each of the selected projects.

             Proposals and demonstration projects may be selected by the public and private sectors at their discretion. All projects designed, constructed, and operated under this authority must comply with all applicable rules and statutes in existence at the time the agreement is executed, including but not limited to the following provisions: Chapter 39.12 RCW, this title, RCW 41.06.380, chapter 47.64 RCW, RCW 49.60.180, and 49 C.F.R. Part 21.

             The secretary or a designee shall consult with legal, financial, and other experts within and outside state government in the negotiation and development of the agreements.


             NEW SECTION. Sec. 6. Agreements shall provide for private ownership of the projects during the construction period. After completion and final acceptance of each project or discrete segment thereof, the agreement shall provide for state ownership of the transportation systems and facilities and lease to the private entity unless the state elects to provide for ownership of the facility by the private entity during the term of the agreement.

             The state shall lease each of the demonstration projects, or applicable project segments, to the private entities for operating purposes for up to fifty years.

             The department may exercise any power possessed by it to facilitate the development, construction, financing operation, and maintenance of transportation projects under this chapter. Agreements for maintenance services entered into under this section shall provide for full reimbursement for services rendered by the department or other state agencies. Agreements for police services under the agreement may be entered into with any qualified law enforcement agency, and shall provide for full reimbursement for services rendered by that agency. The department may provide services for which it is reimbursed, including but not limited to preliminary planning, environmental certification, and preliminary design of the demonstration projects.

             The plans and specifications for each project constructed under this section shall comply with the department's standards for state projects. A facility constructed by and leased to a private entity is deemed to be a part of the state highway system for purposes of identification, maintenance, and enforcement of traffic laws and for the purposes of applicable sections of this title. Upon reversion of the facility to the state, the project must meet all applicable state standards. Agreements shall address responsibility for reconstruction or renovations that are required in order for a facility to meet all applicable state standards upon reversion of the facility to the state.

             For the purpose of facilitating these projects and to assist the private entity in the financing, development, construction, and operation of the transportation systems and facilities, the agreements may include provisions for the department to exercise its authority, including the lease of facilities, rights of way, and airspace, exercise of the power of eminent domain, granting of development rights and opportunities, granting of necessary easements and rights of access, issuance of permits and other authorizations, protection from competition, remedies in the event of default of either of the parties, granting of contractual and real property rights, liability during construction and the term of the lease, authority to negotiate acquisition of rights of way in excess of appraised value, and any other provision deemed necessary by the secretary.

             The agreements entered into under this section may include provisions authorizing the state to grant necessary easements and lease to a private entity existing rights of way or rights of way subsequently acquired with public or private financing. The agreements may also include provisions to lease to the entity airspace above or below the right of way associated or to be associated with the private entity's transportation facility. In consideration for the reversion rights in these privately constructed facilities, the department may negotiate a charge for the lease of airspace rights during the term of the agreement for a period not to exceed fifty years. If, after the expiration of this period, the department continues to lease these airspace rights to the private entity, it shall do so only at fair market value. The agreement may also provide the private entity the right of first refusal to undertake projects utilizing airspace owned by the state in the vicinity of the public-private project.

             Agreements under this section may include any contractual provision that is necessary to protect the project revenues required to repay the costs incurred to study, plan, design, finance, acquire, build, install, operate, enforce laws, and maintain toll highways, bridges, and tunnels and which will not unreasonably inhibit or prohibit the development of additional public transportation systems and facilities. Agreements under this section must secure and maintain liability insurance coverage in amounts appropriate to protect the project's viability and may address state indemnification of the private entity for design and construction liability where the state has approved relevant design and construction plans. Nothing in this chapter limits the right of the secretary and his or her agents to render such advice and to make such recommendations as they deem to be in the best interests of the state and the public.


             NEW SECTION. Sec. 7. The department may enter into agreements using federal, state, and local financing in connection with the projects, including without limitation, grants, loans, and other measures authorized by section 1012 of ISTEA, and to do such things as necessary and desirable to maximize the funding and financing, including the formation of a revolving loan fund to implement this section.

             Agreements entered into under this section shall authorize the private entity to lease the facilities within a designated area or areas from the state and to impose user fees or tolls within the designated area to allow a reasonable rate of return on investment, as established through a negotiated agreement between the state and the private entity. The negotiated agreement shall determine a maximum rate of return on investment, based on project characteristics. If the negotiated rate of return on investment is not affected, the private entity may establish and modify toll rates and user fees.

             Agreements may establish "incentive" rates of return beyond the negotiated maximum rate of return on investment. The incentive rates of return shall be designed to provide financial benefits to the affected public jurisdictions and the private entity, given the attainment of various safety, performance, or transportation demand management goals. The incentive rates of return shall be negotiated in the agreement.

             Agreements shall require that over the term of the ownership or lease the user fees or toll revenues be applied to payment of the private entity's capital outlay costs for the project, including interest expense, the costs associated with operations, toll collection, maintenance and administration of the facility, reimbursement to the state for the costs of project review and oversight, technical and law enforcement services, establishment of a fund to assure the adequacy of maintenance expenditures, and a reasonable return on investment to the private entity. The use of any excess toll revenues or user fees may be negotiated between the parties.

             After expiration of the lease of a facility to a private entity, the secretary may continue to charge user fees or tolls for the use of the facility, with these revenues to be used for operations and maintenance of the facility, or to be paid to the local transportation planning agency, or any combination of such uses.


             NEW SECTION. Sec. 8. Sections 3 through 7 of this act shall be submitted to the people for their adoption and ratification, or rejection, at the next succeeding general election to be held in this state, in accordance with Article II, section 1 of the state Constitution, as amended, and the laws adopted to facilitate the operation thereof. The ballot title for this referendum measure is as follows:

"Shall the state supplement state revenue by authorizing private sector financing for the construction of unfunded transportation systems and facilities through user fees or tolls?"


             NEW SECTION. Sec. 9. Sections 3 through 7 of this act are each added to chapter 47.46 RCW."


             Fix the title accordingly.

             Representative R. Fisher spoke in favor of the adoption of the amendment.


             Representative Robertson spoke against the adoption of the amendment.


             The amendment was not adopted.


             Representative Robertson moved adoption of the following amendment by Representative Robertson:


             Strike everything after the enacting clause and insert the following:


             "Sec. 1. RCW 47.46.010 and 1993 c 370 s 1 are each amended to read as follows:

             The legislature finds and declares:

             It is essential for the economic, social, and environmental well-being of the state and the maintenance of a high quality of life that the people of the state have an efficient transportation system.

             The ability of the state to provide an efficient transportation system will be enhanced by a public-private sector program providing for private entities to undertake all or a portion of the study, planning, design, development, financing, acquisition, installation, construction or improvement, operation, and maintenance of transportation systems and facility projects.

             A public-private initiatives program will provide benefits to both the public and private sectors. Public-private initiatives provide a sound economic investment opportunity for the private sector. Such initiatives will provide the state with increased access to property development and project opportunities, financial and development expertise, and will supplement state transportation revenues, allowing the state to use its limited resources for other needed projects.

             The public-private initiatives program, to the fullest extent possible, should encourage and promote business and employment opportunities for Washington state citizens.

             The public-private initiatives program should be implemented in cooperation and consultation with affected local jurisdictions.

             The secretary of transportation should be permitted and encouraged to test the feasibility of building privately funded transportation systems and facilities or segments thereof through the use of innovative agreements with the private sector. The secretary of transportation should be vested with the authority to solicit, evaluate, negotiate, and administer public-private agreements with the private sector relating to the planning, construction, upgrading, or reconstruction of transportation systems and facilities.

             Agreements negotiated under a public-private initiatives program will not bestow on private entities an immediate right to construct and operate the proposed transportation facilities. Rather, agreements will grant to private entities the opportunity to design the proposed facilities, demonstrate public support for proposed facilities, and complete the planning processes required in order to obtain a future decision by the department of transportation and other state and local lead agencies on whether the facilities should be permitted and built.

             Agreements negotiated under the public-private initiative's program should establish the conditions under which the private developer may secure the approval necessary to develop and operate the proposed transportation facilities; create a framework to attract the private capital necessary to finance their development; and ensure that the transportation facilities will be designed, constructed, and operated in accordance with applicable local, regional, state, and federal laws and the applicable standards and policies of the department of transportation.

             The legislature finds that the Puget Sound congestion pricing project, selected under this chapter, raises major transportation policy, economic, and equity concerns. These relate to the integrity of the state's high-occupancy vehicle program; the cost-effective movement of freight and goods; the diversion of traffic to local streets and arterials; and possible financial hardship to commuters. The legislature further finds that these potential economic and social impacts require comprehensive legislative review prior to advancement of the project and directs that the secretary not proceed with the implementation of the project without prior approval of the legislature.

             The department of transportation should be encouraged to take advantage of new opportunities provided by federal legislation under section 1012 of the Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA). That section establishes a new program authorizing federal participation in construction or improvement or improvement of publicly or privately owned toll roads, bridges, and tunnels, and allows states to leverage available federal funds as a means for attracting private sector capital.


             Sec. 2. RCW 47.46.030 and 1993 c 370 s 3 are each amended to read as follows:

             (1) The secretary or a designee shall solicit proposals from, and negotiate and enter into agreements with, private entities to undertake as appropriate, together with the department and other public entities, all or a portion of the study, planning, design, construction, operation, and maintenance of transportation systems and facilities, using in whole or in part private sources of financing.

             The public-private initiative program may develop up to six demonstration projects. Each proposal shall be weighed on its own merits, and each of the six agreements shall be negotiated individually, and as a stand-alone project. ((The commission shall approve each of the selected projects.

             Proposals and demonstration projects may be selected by the public and private sectors at their discretion. All projects designed, constructed, and operated under this authority must comply with all applicable rules and statutes in existence at the time the agreement is executed, including but not limited to the following provisions: Chapter 39.12 RCW, this title, RCW 41.06.380, chapter 47.64 RCW, RCW 49.60.180, and 49 C.F.R. Part 21.

             The secretary or a designee shall consult with legal, financial, and other experts within and outside state government in the negotiation and development of the agreements.)) (2) If projects selected prior to September 1, 1994, are terminated by the public or private sectors, no other projects shall be selected as replacement projects until the department develops a public involvement process to identify prospective projects.

             The public involvement process for replacement projects shall, at a minimum, identify projects that: (a) Have the potential of achieving overall public support among users of the projects, residents of communities in the vicinity of the projects, and residents of communities impacted by the projects; (b) meet a state transportation need; (c) provide a significant state benefit; and (d) have the capability of receiving more than one proposal from private entities to ensure greater competition among proposers and maximum cost benefits to users. Prospective projects may include projects identified by the department or submitted by the private sector.

             The department shall develop a public involvement plan for identifying replacement projects and the cost of the plan by January 1, 1997, and shall submit the plan to the legislative transportation committee for review. Project selections for replacement projects made after September 1, 1994, shall be carried out utilizing the public involvement process developed by the department and reviewed by the legislative transportation committee. Projects that meet the criteria established under this section shall be submitted for review by the Washington state transportation commission. The commission shall submit a list of eligible projects to the legislative transportation committee for its consideration. If within forty-five calendar days of submission the legislative transportation committee has not adopted a resolution recommending that the secretary reject an eligible project, the secretary is authorized to solicit proposals for the eligible project.

             (3) The department shall require projects selected by the department prior to and after September 1, 1994, except as provided for in subsection (12) of this section, to comply with the requirements of subsections (4) through (11) of this section.

             (4) Prior to entering into agreements with private entities under the requirements of RCW 47.46.040 for any project selected before or after September 1, 1994, except as provided for in subsection (12) of this section, the department shall require an advisory vote as mandated under subsections (5) through (11) of this section.

             (5)(a) Prior to conducting the advisory vote, the department shall establish a committee comprised of individuals who represent cities and counties in the vicinity of the project; organizations formed to support or oppose the project; and users of the project. The committee shall be named the public-private local involvement committee, and be known as the local involvement committee.

             (b) The members of the local involvement committee shall be: (i) An elected official from each city within the county or counties in which the project is located; (ii) an elected official from each county in which the project is located; (iii) two persons from each county in which the project is located who represent an organization formed in support of the project, if the organization exists; (iv) two persons from each county in which the project is located who represent an organization formed to oppose the project, if the organization exists; and (v) two public members active in a state-wide transportation organization. If the committee makeup results in an even number of committee members, there shall be an additional appointment of an elected official from the county in which all, or the greatest portion of the project is located.

             (c) City and county elected officials shall be appointed by a majority of the members of the city and county legislative authorities of each city and county in which the project is located. The county legislative authority of each county in which the project is located shall identify and validate organizations officially formed in support of or in opposition to the project and shall make the appointments required under this section from a list submitted by the chair of the organizations. Public members shall be appointed by the governor. All appointments to the local involvement committee shall be made and submitted to the department of transportation no later than August 1, 1995. Vacancies in the membership of the local involvement committee shall be filled by the appointing authority under (b) of this subsection for each position on the committee.

             (6) In preparing for the advisory vote the department and the local involvement committee shall conduct a comprehensive analysis of traffic patterns and economic impact to determine and define the geographical boundary of the project area that is most affected by the imposition of tolls or user fees authorized under this chapter. The area so defined is referred to in this section as the affected project area. In defining the affected project area, the department and the local involvement committee shall, at a minimum, undertake: (a) A comparison of the estimated percentage of residents of communities in the vicinity of and impacted by the project who could be subject to tolls or user fees and the estimated percentage of other users and transient traffic that could be subject to tolls or user fees; (b) an analysis of the anticipated traffic diversion patterns; (c) an analysis of the potential economic impact resulting from proposed toll rates or user fee rates imposed on residents, commercial traffic, and commercial entities in communities in the vicinity of and impacted by the project; (d) an analysis of the economic impact of tolls or user fees on the price of goods and services generally; and (e) an analysis of the relationship of the project to state transportation needs and benefits.

             (7) After a determination and definition by the department and the local involvement committee of the affected project area, the department and the local involvement committee shall conduct a minimum thirty-day public comment period. The department and the local involvement committee may make adjustments to the definition of the geographical boundary of the affected project area, based on comments received from the public. Within fourteen calendar days after the public comment period, the department and the local involvement committee shall establish the boundaries of the affected project area in units no smaller than a precinct as defined in RCW 29.01.120.

             If after establishing the boundaries of the affected project area, the department and the local involvement committee determine that the membership of the local involvement committee requires modification, the department and the committee shall submit recommendations for modification to the legislative transportation committee for consideration by the house of representatives and senate transportation committees during the next succeeding legislative session.

             (8) The department and the local involvement committee shall develop a project description for selected projects, using project proposals submitted as a result of solicitations by the department for proposals, technical evaluations of project proposals, and any other salient information. After developing the project description, the department and the local involvement committee shall conduct a thirty-day public comment period. The department and the local involvement committee may make adjustments to the project description based on comments received from the public. Within fourteen calendar days after the public comment period, the department and the local involvement committee shall transmit a copy of the map depicting the affected project area and the project description and characteristics to the county auditor of the county in which any portion of the affected project area, as defined by the department and the local involvement committee, is located.

             (9) The department and the local involvement committee shall provide the legislative transportation committee with progress reports on the status of the definition of the affected project area and project description and characteristics.

             (10) Upon receipt of the map and the project description and characteristics, the county auditor shall, within sixty days, verify the precincts that are located within the affected project area. The county auditor shall prepare the text identifying and describing the affected project area and the project and shall set an election date for the submission of a ballot proposition authorizing the imposition of tolls or user fees to implement the proposed project within the affected project area, which date may be the next succeeding general election to be held in the state, or at a special election, if requested by the department. The text of the project must appear in a voter's pamphlet for the affected project area. The department shall pay the costs of publication and distribution. The special election date must be the next date for a special election provided under RCW 29.13.020 that is at least sixty days but, if authorized under RCW 29.13.020, no more than ninety days after the receipt of the final map and project description and characteristics by the auditor. The department shall pay the cost of an election held under this section.

             (11) The department and the local involvement committee shall submit the results of the advisory vote on any project selected under this chapter, along with any other pertinent information, to the legislative transportation committee within seven calendar days of certification of the vote. No later than thirty days prior to the next legislative session, the legislative transportation committee shall adopt a resolution making a recommendation to the department regarding the disposition of the project proposals.

             (12) Subsections (5) through (11) of this section shall not apply to projects selected prior to September 1, 1994, that have no organized public opposition as demonstrated by the submission to the department of petitions bearing at least five thousand signatures opposing the project, collected after September 1, 1994, and by thirty calendar days after the effective date of this act.


             Sec. 3. RCW 47.46.040 and 1993 c 370 s 4 are each amended to read as follows:

             (1) All projects designed, constructed, and operated under this authority must comply with all applicable rules and statutes in existence at the time the agreement is executed, including but not limited to the following provisions: Chapter 39.12 RCW, this title, RCW 41.06.380, chapter 47.64 RCW, RCW 49.60.180, and 49 C.F.R. Part 21.

             (2) The secretary or a designee shall consult with legal, financial, and other experts within and outside state government in the negotiation and development of the agreements.

             (3) Agreements shall provide for private ownership of the projects during the construction period. After completion and final acceptance of each project or discrete segment thereof, the agreement shall provide for state ownership of the transportation systems and facilities and lease to the private entity unless the state elects to provide for ownership of the facility by the private entity during the term of the agreement.

             The state shall lease each of the demonstration projects, or applicable project segments, to the private entities for operating purposes for up to fifty years.

             (4) The department may exercise any power possessed by it to facilitate the development, construction, financing operation, and maintenance of transportation projects under this chapter. Agreements for maintenance services entered into under this section shall provide for full reimbursement for services rendered by the department or other state agencies. Agreements for police services for projects, involving state highway routes, developed under ((the agreement may)) agreements shall be entered into with ((any qualified law enforcement agency, and shall provide for full reimbursement for services rendered by that agency)) the Washington state patrol. The agreement for police services shall provide that the state patrol will be reimbursed for costs on a comparable basis with the costs incurred for comparable service on other state highway routes. The department may provide services for which it is reimbursed, including but not limited to preliminary planning, environmental certification, and preliminary design of the demonstration projects.

             (5) The plans and specifications for each project constructed under this section shall comply with the department's standards for state projects. A facility constructed by and leased to a private entity is deemed to be a part of the state highway system for purposes of identification, maintenance, and enforcement of traffic laws and for the purposes of applicable sections of this title. Upon reversion of the facility to the state, the project must meet all applicable state standards. Agreements shall address responsibility for reconstruction or renovations that are required in order for a facility to meet all applicable state standards upon reversion of the facility to the state.

             (6) For the purpose of facilitating these projects and to assist the private entity in the financing, development, construction, and operation of the transportation systems and facilities, the agreements may include provisions for the department to exercise its authority, including the lease of facilities, rights of way, and airspace, exercise of the power of eminent domain, granting of development rights and opportunities, granting of necessary easements and rights of access, issuance of permits and other authorizations, protection from competition, remedies in the event of default of either of the parties, granting of contractual and real property rights, liability during construction and the term of the lease, authority to negotiate acquisition of rights of way in excess of appraised value, and any other provision deemed necessary by the secretary.

             (7) The agreements entered into under this section may include provisions authorizing the state to grant necessary easements and lease to a private entity existing rights of way or rights of way subsequently acquired with public or private financing. The agreements may also include provisions to lease to the entity airspace above or below the right of way associated or to be associated with the private entity's transportation facility. In consideration for the reversion rights in these privately constructed facilities, the department may negotiate a charge for the lease of airspace rights during the term of the agreement for a period not to exceed fifty years. If, after the expiration of this period, the department continues to lease these airspace rights to the private entity, it shall do so only at fair market value. The agreement may also provide the private entity the right of first refusal to undertake projects utilizing airspace owned by the state in the vicinity of the public-private project.

             (8) Agreements under this section may include any contractual provision that is necessary to protect the project revenues required to repay the costs incurred to study, plan, design, finance, acquire, build, install, operate, enforce laws, and maintain toll highways, bridges, and tunnels and which will not unreasonably inhibit or prohibit the development of additional public transportation systems and facilities. Agreements under this section must secure and maintain liability insurance coverage in amounts appropriate to protect the project's viability and may address state indemnification of the private entity for design and construction liability where the state has approved relevant design and construction plans.

             (9) Agreements shall include a process that provides for public involvement in decision making with respect to the development of the projects.

             (10)(a) In carrying out the public involvement process required in subsection (9) of this section, the private entity shall proactively seek public participation through a process appropriate to the characteristics of the project that assesses and demonstrates overall public support among: Users of the project, residents of communities in the vicinity of the project, and residents of communities impacted by the project. The public involvement process shall provide opportunities for users and residents to comment upon key issues regarding the project including, but not limited to: (i) Alternative sizes and scopes; (ii) design; (iii) environmental assessment; (iv) right of way and access plans; (v) traffic impacts; (vi) tolling or user fee strategies and tolling or user fee ranges; (vii) project cost; (viii) construction impacts; (ix) facility operation; and (x) any other salient characteristics.

             (b) The private entity shall cause to be conducted on one or more occasions, a comprehensive inventory of public positions of users and of residents of communities in the affected project area. If the affected project area has not been defined, the private entity shall define the affected project area by conducting, at a minimum: (i) A comparison of the estimated percentage of residents of communities in the vicinity of and impacted by the project who could be subject to tolls or user fees and the estimated percentage of other users and transient traffic that could be subject to tolls or user fees; (ii) an analysis of the anticipated traffic diversion patterns; (iii) an analysis of the potential economic impact resulting from proposed toll rates or user fee rates imposed on residents, commercial traffic, and commercial entities in communities in the vicinity of and impacted by the project; (iv) an analysis of the economic impact of tolls or user fees on the price of goods and services generally; and (v) an analysis of the relationship of the project to state transportation needs and benefits.

             The agreement may require an advisory vote by users of and residents in the affected project area under the terms and conditions established for the vote in RCW 47.46.030(5) through (10), except that the private entity shall pay all costs associated with the advisory vote.

             The comprehensive inventory of public positions shall be conducted by an independent accountant or other independent professional jointly selected and supervised by the private entity and the department in consultation with the local involvement committee and the legislative transportation committee. The independent accountant or other independent professional must have a proven history and expertise in assessing public opinion and shall not have a direct or indirect interest in such project. The results of the inventory of public positions shall be made available for public review and comment.

             (c) In seeking public participation, the private entity shall involve the local involvement committee established under RCW 47.46.030. If no local involvement committee has been established for the project prior to entering into the agreement, the private entity shall, at a minimum, establish the committee as required under the specifications of RCW 47.46.030(5) (b) and (c). Additions to the committee may be made as a result of defining the affected project area as required under subsection (10)(b) of this section.

             (d) The local involvement committee shall act in an advisory capacity to the department and the private entity on all issues related to the development and implementation of the public involvement process established under this section.

             (e) The department and the private entity shall provide the legislative transportation committee and the local involvement committee with progress reports on the status of the public involvement process and the inventory of public positions. The results of the inventory of public positions, including public comment on such inventory of public positions, shall be forwarded to the legislative transportation committee and the local involvement committee for their review.

             (11) Nothing in this chapter limits the right of the secretary and his or her agents to render such advice and to make such recommendations as they deem to be in the best interests of the state and the public.


             Sec. 4. RCW 47.46.050 and 1993 c 370 s 5 are each amended to read as follows:

             (1) The department may enter into agreements using federal, state, and local financing in connection with the projects, including without limitation, grants, loans, and other measures authorized by section 1012 of ISTEA, and to do such things as necessary and desirable to maximize the funding and financing, including the formation of a revolving loan fund to implement this section.

             (2) Agreements entered into under this section shall authorize the private entity to lease the facilities within a designated area or areas from the state and to impose user fees or tolls within the designated area to allow a reasonable rate of return on investment, as established through a negotiated agreement between the state and the private entity. The negotiated agreement shall determine a maximum rate of return on investment, based on project characteristics. If the negotiated rate of return on investment is not affected, the private entity may establish and modify toll rates and user fees.

             (3) Agreements may establish "incentive" rates of return beyond the negotiated maximum rate of return on investment. The incentive rates of return shall be designed to provide financial benefits to the affected public jurisdictions and the private entity, given the attainment of various safety, performance, or transportation demand management goals. The incentive rates of return shall be negotiated in the agreement.

             (4) Agreements shall require that over the term of the ownership or lease the user fees or toll revenues be applied only to payment of the private entity's capital outlay costs for the project, including project development costs, interest expense, the costs associated with design, construction, operations, toll collection, maintenance and administration of the ((facility)) project, reimbursement to the state for all costs associated with an election as required under RCW 47.46.030, the costs of project review and oversight, technical and law enforcement services, establishment of a fund to assure the adequacy of maintenance expenditures, and a reasonable return on investment to the private entity. ((The use of any excess toll revenues or user fees may be negotiated between the parties.

             After expiration of the lease of a facility to a private entity, the secretary may continue to charge user fees or tolls for the use of the facility, with these revenues to be used for operations and maintenance of the facility, or to be paid to the local transportation planning agency, or any combination of such uses.)) A negotiated agreement shall not extend the term of the ownership or lease beyond the period of time required for payment of the private entity's capital outlay costs for the project under this subsection.


             NEW SECTION. Sec. 5. 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 immediately."


             On page 1, line 1 of the title, after "facilities;" strike the remainder of the title and insert "amending RCW 47.46.010, 47.46.030, 47.46.040, and 47.46.050; and declaring an emergency."


             Representatives Robertson, Chopp and K. Schmidt spoke in favor of the adoption of the amendment.


             Representative R. Fisher spoke against the adoption of the amendment.


POINT OF INQUIRY


             Representative Robertson yielded to a question by Representative K. Schmidt.


             Representative K. Schmidt: Is it the intent of Engrossed Substitute House Bill No. 1317 that the signatures (opposing a particular project) collected under the requirements of Section 2, Subsection (12) of the bill, be collected in the locality in the proximate vicinity of such project?


             Representative Robertson: Yes, that is the intent; and it is in keeping with the requirements that the advisory vote be in the affected project area.


             The amendment was adopted.


             The bill was ordered engrossed.


             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.


             Representatives Robertson and D. Schmidt spoke in favor of passage of the bill.


             Representative R. Fisher spoke against passage of the bill.


             The Speaker stated the question before the House to be final passage of Second Engrossed Substitute House Bill No. 1317.


ROLL CALL


             The Clerk called the roll on the final passage of Second Engrossed Substitute House Bill No. 1317, and the bill passed the House by the following vote: Yeas - 79, Nays - 12, Absent - 0, Excused - 7.

             Voting yea: Representatives Appelwick, Backlund, Ballasiotes, Basich, Beeksma, Benton, Blanton, Boldt, Brumsickle, Buck, Cairnes, Campbell, Carlson, Carrell, Chopp, Clements, Cole, Conway, Cooke, Costa, Crouse, Delvin, Dickerson, Dyer, Ebersole, Elliot, Fisher, G., Foreman, Fuhrman, Goldsmith, Grant, Hankins, Hatfield, Hickel, Honeyford, Horn, Huff, Hymes, Jacobsen, Johnson, Kessler, Koster, Kremen, Lambert, Lisk, Mastin, McMahan, McMorris, Mitchell, Mulliken, Ogden, Patterson, Pelesky, Pennington, Poulsen, Quall, Radcliff, Reams, Robertson, Rust, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Skinner, Smith, Sterk, Stevens, Talcott, Thibaudeau, Thomas, B., Thomas, L., Van Luven, Wolfe and Mr. Speaker - 79.

             Voting nay: Representatives Casada, Cody, Fisher, R., Hargrove, Mason, Mielke, Regala, Romero, Silver, Sommers, Valle and Veloria - 12.

             Excused: Representatives Brown, Chandler, Chappell, Dellwo, Morris, Thompson and Tokuda - 7.


             Second Engrossed Substitute House Bill No. 1317, having received the constitutional majority, was declared passed.


STATEMENT FOR THE JOURNAL


             I intended to vote NAY on Second Engrossed Substitute House Bill No. 1317.


CATHY WOLFE, 22nd District


             There being no objection, the House advanced to the eleventh order of business.


MOTION


             There being no objection, the House adjourned until 10:00 a.m., Thursday, May 18, 1995.


CLYDE BALLARD, Speaker

TIMOTHY A. MARTIN, Chief Clerk