Washington State House of Representatives	BILL ANALYSIS
Transportation Committee

HB 2594

Brief Description:  Adjusting the relationship between a public transportation benefit area and a city.

Sponsors:  Representatives Edwards, Schmidt, Lovick, O'Brien, Miloscia, Barlean, Pearson and Dunshee.

Brief Summary of Bill

$A vote is required in Everett and the Community Transit service area to consolidate transit systems.

$If the consolidation is turned down, effective January 2004, Everett must pay Community Transit for services.

Hearing Date:  2/5/02

Staff:  Gene Baxstrom (786‑7303).

Background:

In 1975 the Legislature authorized creation of public transportation benefit areas (PTBAs), allowing cities and unincorporated areas to jointly create and operate an area wide transit system.  There are 19 PTBAs in the state, funded with a local option sales tax.  Cities which are not part of a PTBA are also allowed to operate their own transit systems, which may funded with a local option sales tax.  In some cases there may be an overlap in the service provided by a city transit system and the service provided by a PTBA.

Summary of Bill:

In a county with a population of more than 150,000, where a public transportation benefit area and a city both operate a public transportation system, the county must submit a ballot proposition to the voters within the city and the PTBA on whether the PTBA should acquire the city's transit system.  The vote must occur before September 30, 2003.  If the ballot proposition passes, the city system becomes part of the PTBA, assuming all obligations, including taxes.  The PTBA must compensate the PTBA for the fair market value of facilities and properties.  The PTBA must consider, within 90 days, restructuring its board.

If the ballot proposition fails, effective January 1, 2004, the city must pay the PTBA for services rendered its citizens.  The payment must be the average subsidy per passenger for each trip made by the residents of the city on the PTBA system and a portion of the PTBA's depreciation costs.  The first payment is due May 1, 2005, and each year thereafter.

Appropriation:  None.

Fiscal Note:  Requested on February 1, 2002.

Effective Date:  Ninety days after adjournment of session in which bill is passed.