BP BHEAD INT H [atlas:bill]

BE IT RESOLVED, BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE STATE OF WASHINGTON, IN LEGISLATIVE SESSION ASSEMBLED:

THAT, At the next general election to be held in this state the secretary of state shall submit to the qualified voters of the state for their approval and ratification, or rejection, an amendment to Article VII, section ... of the Constitution of the state of Washington to read as follows:

Article VII, section . . .. Notwithstanding any provision of this Constitution, the legislature may by general law authorize the legislative authority of any county, city, or town to create boundaries within its jurisdiction, containing only real property which will increase in true and fair value by reason of specified transportation improvements within those boundaries, and may provide that all or a portion of the ad valorem taxes levied within those boundaries against increases in the true and fair value of the real property as a result of the transportation improvements may be used to pay for the specified transportation improvements or to pay public obligations incurred to fund the specified transportation improvements. Public obligations incurred for these transportation improvements and payable solely from revenues from these transportation improvements and any ad valorem taxes levied against the increases in real property value shall not constitute general indebtedness.

For the purposes of this section, "ad valorem taxes" means:

(1) Ad valorem taxes subject to the aggregate limitation on tax levies by the state and all taxing districts in section 2 of this Article; and

(2) Ad valorem taxes levied by port districts and public utility districts, except for ad valorem taxes levied specifically for the purpose of making required payments of principal and interest on general indebtedness.

Nothing in this section authorizes the provision of transportation improvements which counties, cities, and towns may not otherwise provide.

Nothing in this section authorizes a county, city, or town to exercise powers of eminent domain contrary to the provisions of Article I, section 16 of this Constitution.

Nothing in this section authorizes a county, city, or town to pledge all or part of its full faith and credit or any other tax revenues without complying with the laws relating to the incurring of general indebtedness, including Article VIII, section 1 and section 6 of this Constitution, or to aggregate tax levies in excess of the limitation on levies in section 2 of this Article. However, no bonds that constitute general indebtedness and which use the funding mechanism contained in this section shall be issued to fund all or a portion of the specified transportation improvements unless a public hearing on the issue of the bonds is held prior to the time boundaries are created pursuant to this section. The notice for a public hearing shall include: (1) A statement that the county, city, or town must pledge its full faith and credit toward the payment of any general indebtedness which uses the funding mechanism contained in the section; (2) a statement that in the absence of sufficient revenues under this funding mechanism, the debt service must be made from then existing taxes or other revenues, which may result in an increase in taxes or reduction in existing programs; and (3) an estimate of the dollar amount of debt service on the bonds per year, and an estimate of the total principal and interest payments required for the full term of the bonds. The use of the funding mechanism contained in this section to pay principal and interest on general indebtedness, which is not required to be approved by the voters pursuant to Article VIII, section 6 of this Constitution, is subject to potential referendum approval by simple majority vote of the voters of the county, city, or town.

After the initial adoption of a law by the legislature authorizing the use of ad valorem taxes levied against increases in the true and fair value of real property to finance specified transportation improvements, no amendment to the act which expands the nature of the areas within which ad valorem taxes levied against increases in the true and fair value of real property may be used to finance specified transportation improvements, or adds to the purposes and types of transportation improvements that may be financed with these revenues, or reduces the requirements which must be met if public obligations are incurred to fund the specified transportation improvements, shall be valid unless the amendment is enacted by a favorable vote of three-fifths of the members elected to each house of the legislature and is subject to referendum petition.

BE IT FURTHER RESOLVED, That the secretary of state shall cause notice of the foregoing constitutional amendment to be published at least four times during the four weeks next preceding the election in every legal newspaper in the state.