BILL REQ. #:  S-0753.1 

Read first time 01/31/2003.   Referred to Committee on Highways & Transportation.

     AN ACT Relating to funding for transportation; amending RCW 82.36.025; reenacting and amending RCW 82.36.025 and 46.68.090; creating a new section; providing for submission of part of this act to a vote of the people; and declaring an emergency.

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

NEW SECTION.  Sec. 1   The legislature finds that growing traffic congestion is having a severe impact on the quality of life and the economy in Washington state. It is incumbent upon the legislature to act quickly to address urgent transportation needs and to demonstrate to the public that transportation funds are being used efficiently and effectively to provide congestion relief and to enhance freight mobility.
     The legislature also recognizes that taxpayers desire a voice in the imposition of taxes and fees. It is therefore the intent of the legislature to provide both the immediate response to critical transportation issues by providing phased-in fuel tax increases in the 2003 legislative session and sending additional fuel tax increases to a public vote in 2004, to be effective in 2005 and 2006.

Sec. 2   RCW 82.36.025 and 1999 c 269 s 16 and 1999 c 94 s 29 are each reenacted and amended to read as follows:
     Until July 1, 2004, a motor vehicle fuel tax rate of ((twenty-three)) twenty-six cents per gallon ((shall apply)) applies to the sale, distribution, or use of motor vehicle fuel. Beginning July 1, 2004, a motor vehicle fuel tax rate of twenty-eight cents per gallon applies to the sale, distribution, or use of motor vehicle fuel.

Sec. 3   RCW 82.36.025 and 2003 c . . . s 2 (section 2 of this act) are each amended to read as follows:
     ((Until July 1, 2004, a motor vehicle fuel tax rate of twenty-six cents per gallon applies to the sale, distribution, or use of motor vehicle fuel.)) (1) Beginning July 1, 2004, a motor vehicle fuel tax rate of twenty-eight cents per gallon applies to the sale, distribution, or use of motor vehicle fuel.
     (2) Beginning July 1, 2005, a motor vehicle fuel tax rate of thirty-one cents per gallon applies to the sale, distribution, or use of motor vehicle fuel.
     (3) Beginning July 1, 2006, a motor vehicle fuel tax rate of thirty-three cents per gallon applies to the sale, distribution, or use of motor vehicle fuel.

Sec. 4   RCW 46.68.090 and 1999 c 269 s 2 and 1999 c 94 s 6 are each reenacted and amended to read as follows:
     (1) All moneys that have accrued or may accrue to the motor vehicle fund from the motor vehicle fuel tax and special fuel tax shall be first expended for purposes enumerated in (a) and (b) of this subsection. Until July 1, 2004, the remaining net tax amount shall be distributed monthly by the state treasurer in the following proportions ((set forth in (c) through (l) of this subsection)): For distribution to the motor vehicle fund an amount equal to 11.5385 percent to be expended for highway purposes of the state as defined in RCW 46.68.130; the remaining 88.4615 percent will be distributed as set forth in (c) through (l) of this subsection. Beginning July 1, 2004, the remaining net tax amount will be distributed monthly by the state treasurer in the following proportions: For distribution to the motor vehicle fund an amount equal to 17.8571 percent to be expended for highway purposes of the state as defined in RCW 46.68.130; the remaining 82.1429 percent will be distributed as set forth in (c) through (l) of this subsection.
     (a) For payment of refunds of motor vehicle fuel tax and special fuel tax that has been paid and is refundable as provided by law;
     (b) For payment of amounts to be expended pursuant to appropriations for the administrative expenses of the offices of state treasurer, state auditor, and the department of licensing of the state of Washington in the administration of the motor vehicle fuel tax and the special fuel tax, which sums shall be distributed monthly;
     (c) For distribution to the motor vehicle fund an amount equal to 44.387 percent to be expended for highway purposes of the state as defined in RCW 46.68.130;
     (d) For distribution to the special category C account, hereby created in the motor vehicle fund, an amount equal to 3.2609 percent to be expended for special category C projects. Special category C projects are category C projects that, due to high cost only, will require bond financing to complete construction.
     The following criteria, listed in order of priority, shall be used in determining which special category C projects have the highest priority:
     (i) Accident experience;
     (ii) Fatal accident experience;
     (iii) Capacity to move people and goods safely and at reasonable speeds without undue congestion; and
     (iv) Continuity of development of the highway transportation network.
     Moneys deposited in the special category C account in the motor vehicle fund may be used for payment of debt service on bonds the proceeds of which are used to finance special category C projects under this subsection (1)(d);
     (e) For distribution to the Puget Sound ferry operations account in the motor vehicle fund an amount equal to 2.3283 percent;
     (f) For distribution to the Puget Sound capital construction account in the motor vehicle fund an amount equal to 2.3726 percent;
     (g) For distribution to the urban arterial trust account in the motor vehicle fund an amount equal to 7.5597 percent;
     (h) For distribution to the transportation improvement account in the motor vehicle fund an amount equal to 5.6739 percent and expended in accordance with RCW 47.26.086;
     (i) For distribution to the cities and towns from the motor vehicle fund an amount equal to 10.6961 percent in accordance with RCW 46.68.110;
     (j) For distribution to the counties from the motor vehicle fund an amount equal to 19.2287 percent: (i) Out of which there shall be distributed from time to time, as directed by the department of transportation, those sums as may be necessary to carry out the provisions of RCW 47.56.725; and (ii) less any amounts appropriated to the county road administration board to implement the provisions of RCW 47.56.725(4), with the balance of such county share to be distributed monthly as the same accrues for distribution in accordance with RCW 46.68.120;
     (k) For distribution to the county arterial preservation account, hereby created in the motor vehicle fund an amount equal to 1.9565 percent. These funds shall be distributed by the county road administration board to counties in proportions corresponding to the number of paved arterial lane miles in the unincorporated area of each county and shall be used for improvements to sustain the structural, safety, and operational integrity of county arterials. The county road administration board shall adopt reasonable rules and develop policies to implement this program and to assure that a pavement management system is used;
     (l) For distribution to the rural arterial trust account in the motor vehicle fund an amount equal to 2.5363 percent and expended in accordance with RCW 36.79.020.
     (2) Nothing in this section or in RCW 46.68.130 may be construed so as to violate any terms or conditions contained in any highway construction bond issues now or hereafter authorized by statute and whose payment is by such statute pledged to be paid from any excise taxes on motor vehicle fuel and special fuels.

NEW SECTION.  Sec. 5   Sections 1, 2, and 4 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect immediately.

NEW SECTION.  Sec. 6   The secretary of state shall submit section 3 of this act to the people for their adoption and ratification, or rejection, at the general election to be held in this state in November 2004, in accordance with Article II, section 1 of the state Constitution and the laws adopted to facilitate its operation.