"Sec. 1   RCW 47.01.051 and 1977 ex.s. c 151 s 5 are each amended to read as follows:
     There is hereby created a transportation commission, which shall consist of seven voting members appointed by the governor, with the consent of the senate. The present five members of the highway commission shall serve as five initial members of the transportation commission until their terms of office as highway commission members would have expired. The additional two members provided herein for the transportation commission shall be appointed for initial terms to expire on June 30, 1982, and June 30, 1983. Thereafter all terms shall be for six years. No elective state official ((or)), state officer, or state employee shall be a member of the commission((, and not more than four members of the commission shall at the time of appointment or thereafter during their respective terms of office be members of the same major political party. At the time of appointment or thereafter during their respective terms of office, four members of the commission shall reside in the western part of the state and three members shall reside in the eastern part of the state as divided north and south by the summit of the Cascade mountains. No more than two members of the commission shall reside in the same county)); however, the governor, or his or her designee, shall serve as a nonvoting member of the commission. Commission appointments should reflect both a wide range of transportation interests and a balanced statewide geographic representation. Commissioners ((shall not be removed from office by the governor before the expiration of their terms unless for a disqualifying change of residence or for cause based upon a determination of incapacity, incompetence, neglect of duty, or malfeasance in office by the superior court of the state of Washington in and for Thurston county upon petition and show cause proceedings duly brought therefor in said court and directed to the commissioner in question. No member shall be appointed for more than two consecutive terms)) may be removed from office by the governor before the expiration of their terms for cause.

Sec. 2   RCW 47.01.061 and 2005 c 319 s 4 are each amended to read as follows:
     (1) The commission shall meet at such times as it deems advisable but at least ((once every month)) on a quarterly basis with meetings to be held in different parts of the state. It may adopt its own rules and regulations and may establish its own procedure. It shall act collectively in harmony with recorded resolutions or motions adopted by majority vote of at least four members. The commission may appoint an ((administrative secretary)) executive director, and shall elect one of its members ((chairman)) chair for a term of one year. The ((chairman shall be able to)) chair may vote on all matters before the commission. The commission may from time to time retain planners, consultants, and other technical personnel to advise it in the performance of its duties.
     (2) The commission shall submit to each regular session of the legislature held in an odd-numbered year its own budget proposal necessary for the commission's operations separate from that proposed for the department.
     (3) Each member of the commission shall be compensated in accordance with RCW 43.03.250 and shall be reimbursed for actual necessary traveling and other expenses in going to, attending, and returning from meetings of the commission, and actual and necessary traveling and other expenses incurred in the discharge of such duties as may be requested by a majority vote of the commission or by the secretary of transportation, but in no event shall ((a commissioner be compensated in any year for more than one hundred twenty days, except the chairman of the commission who may be paid compensation for not more than one hundred fifty days)) the entire commission membership be compensated for more than one thousand two hundred thirty days combined. Service on the commission shall not be considered as service credit for the purposes of any public retirement system.
     (4) Each member of the commission shall disclose any actual or potential conflict of interest, if applicable under the circumstance, regarding any commission business.

Sec. 3   RCW 47.01.071 and 2005 c 319 s 5 are each amended to read as follows:
     The transportation commission shall have the following functions, powers, and duties:
     (1) To propose policies to be adopted by the governor and the legislature designed to assure the development and maintenance of a comprehensive and balanced statewide transportation system which will meet the needs of the people of this state for safe and efficient transportation services. Wherever appropriate the policies shall provide for the use of integrated, intermodal transportation systems to implement the social, economic, and environmental policies, goals, and objectives of the people of the state, and especially to conserve nonrenewable natural resources including land and energy. To this end the commission shall:
     (a) Develop transportation policies which are based on the policies, goals, and objectives expressed and inherent in existing state laws;
     (b) Inventory the adopted policies, goals, and objectives of the local and area-wide governmental bodies of the state and define the role of the state, regional, and local governments in determining transportation policies, in transportation planning, and in implementing the state transportation plan;
     (c) Propose a transportation policy for the state;
     (d) Establish a procedure for review and revision of the state transportation policy and for submission of proposed changes to the governor and the legislature;
     (e) To integrate the statewide transportation plan with the needs of the elderly and handicapped, and to coordinate federal and state programs directed at assisting local governments to answer such needs;
     (2) To provide for the effective coordination of state transportation planning with national transportation policy, state and local land use policies, and local and regional transportation plans and programs;
     (3) In conjunction with the provisions under RCW 47.01.075, to provide for public involvement in transportation designed to elicit the public's views both with respect to adequate transportation services and appropriate means of minimizing adverse social, economic, environmental, and energy impact of transportation programs;
     (4) To prepare a comprehensive and balanced statewide transportation plan which shall be based on the transportation policy adopted by the governor and the legislature, and applicable state and federal laws. The plan must reflect the priorities of government developed by the office of financial management and address regional needs, including multimodal transportation planning. The plan shall be reviewed and revised, and submitted to the governor and the house of representatives and senate standing committees on transportation, prior to each regular session of the legislature during an even-numbered year thereafter.
     The plan shall take into account federal law and regulations relating to the planning, construction, and operation of transportation facilities;
     (5) To propose to the governor and the legislature prior to the convening of each regular session held in an odd-numbered year a recommended budget for the operations of the commission as required by RCW 47.01.061;
     (6) ((To approve the issuance and sale of all bonds authorized by the legislature for capital construction of state highways, toll facilities, Columbia Basin county roads (for which reimbursement to the motor vehicle fund has been provided), urban arterial projects, and aviation facilities;
     (7))) To adopt such rules((, regulations, and policy directives)) as may be necessary to carry out reasonably and properly those functions expressly vested in the commission by statute;
     (((8))) (7) To contract with the office of financial management or other appropriate state agencies for administrative support, accounting services, computer services, and other support services necessary to carry out its other statutory duties;
     (8) To conduct transportation-related studies and policy analysis to the extent directed by the legislature or governor in the biennial transportation budget act, or as otherwise provided in law, and subject to the availability of amounts appropriated for this specific purpose; and
     (9) To exercise such other specific powers and duties as may be vested in the transportation commission by this or any other provision of law.

Sec. 4   RCW 47.01.075 and 2005 c 319 s 6 are each amended to read as follows:
     (1) The transportation commission shall provide a public forum for the development of transportation policy in Washington state to include coordination with regional transportation planning organizations, transportation stakeholders, counties, cities, and citizens. It may recommend to the secretary of transportation, the governor, and the legislature means for obtaining appropriate citizen and professional involvement in all transportation policy formulation and other matters related to the powers and duties of the department. It may further hold hearings and explore ways to improve the mobility of the citizenry. At least every five years, the commission shall convene regional forums to gather citizen input on transportation issues.
     (2) Every two years, in coordination with the development of the state biennial budget, the commission shall prepare the statewide multimodal transportation progress report ((that outlines the)) and propose to the office of financial management transportation priorities ((of)) for the ensuing biennium. The report must:
     (a) Consider the citizen input gathered at the forums;
     (b) Be developed with the assistance of state transportation-related agencies and organizations;
     (c) Be developed with the input from state, local, and regional jurisdictions, transportation service providers, ((and)) key transportation stakeholders, and the office of financial management;
     (d) Be considered by the secretary of transportation and other state transportation-related agencies in preparing proposed agency budgets and executive request legislation;
     (e) Be submitted by the commission to the governor and the legislature by October 1st of each even-numbered year for consideration by the governor.
     (3) In fulfilling its responsibilities under this section, the commission may create ad hoc committees or other such committees of limited duration as necessary.
     (4) In order to promote a better transportation system, the commission shall offer policy guidance and make recommendations to the governor and the legislature in key issue areas, including but not limited to:
     (a) Transportation finance;
     (b) Preserving, maintaining, and operating the statewide transportation system;
     (c) Transportation infrastructure needs;
     (d) Promoting best practices for adoption and use by transportation-related agencies and programs;
     (e) Transportation efficiencies that will improve service delivery and/or coordination;
     (f) Improved planning and coordination among transportation agencies and providers; ((and))
     (g) Use of intelligent transportation systems and other technology-based solutions; and
     (h) Reporting of performance against goals, targets, and benchmarks.

Sec. 5   RCW 47.01.091 and 1977 ex.s. c 151 s 9 are each amended to read as follows:
     The secretary shall establish such advisory councils as are necessary to carry out the purposes of this ((1977 amendatory act)) title, and to insure adequate public participation in the planning and development of transportation facilities. Members of such councils shall serve at the pleasure of the secretary and may receive per diem and necessary expenses, in accordance with RCW 43.03.050 and 43.03.060, as now or hereafter amended.

Sec. 6   RCW 47.01.101 and 2005 c 319 s 7 are each amended to read as follows:
     The secretary shall have the authority and it shall be his or her duty:
     (1) To serve as chief executive officer of the department with full administrative authority to direct all its activities;
     (2) To organize the department as he or she may deem necessary to carry out the work and responsibilities of the department effectively;
     (3) To designate and establish such transportation district, region, or branch offices as may be necessary or convenient, and to appoint assistants and delegate any powers, duties, and functions to them or any officer or employee of the department as deemed necessary to administer the department efficiently;
     (4) To direct and coordinate the programs of the various divisions of the department to assure that they achieve the greatest possible mutual benefit, produce a balanced overall effort, and eliminate unnecessary duplication of activity;
     (5) To adopt all department rules that are subject to the adoption procedures contained in the state administrative procedure act, except rules subject to adoption by the commission pursuant to statute;
     (6) To maintain and safeguard the official records of the department, including the commission's recorded resolutions and orders;
     (7) To provide, under contract or interagency agreement, ((full)) staff support to the commission, including long-term technical and administrative support as needed, to assist it in carrying out its functions, powers, and duties;
     (8) To execute and implement the biennial operating budget for the operation of the department in accordance with chapter 43.88 RCW and with legislative appropriation;
     (9) To advise the governor and the legislature with respect to matters under the jurisdiction of the department; and
     (10) To exercise all other powers and perform all other duties as are now or hereafter provided by law.

Sec. 7   RCW 47.01.280 and 2005 c 319 s 121 are each amended to read as follows:
     (1) Upon receiving an application for improvements to an existing state highway or highways pursuant to RCW 43.160.074 from the community economic revitalization board, the ((transportation commission)) department shall, in a timely manner, determine whether or not the proposed state highway improvements:
     (a) Meet the safety and design criteria of the department of transportation;
     (b) Will impair the operational integrity of the existing highway system; and
     (c) Will affect any other improvements planned by the department((; and
     (d) Will be consistent with its policies developed pursuant to RCW 47.01.071)).
     (2) Upon completion of its determination of the factors contained in subsection (1) of this section and any other factors it deems pertinent, the ((transportation commission)) department shall forward its approval, as submitted or amended or disapproval of the proposed improvements to the board, along with any recommendation it may wish to make concerning the desirability and feasibility of the proposed development. If the ((transportation commission)) department disapproves any proposed improvements, it shall specify its reasons for disapproval.
     (3) Upon notification from the board of an application's approval pursuant to RCW 43.160.074, the ((transportation commission)) department shall ((direct the department of transportation to)) carry out the improvements in coordination with the applicant.

Sec. 8   RCW 47.05.021 and 2005 c 319 s 8 are each amended to read as follows:
     (1) The department shall conduct periodic analyses of the entire state highway system((,)) and report to the ((commission)) office of financial management and the chairs of the transportation committees of the senate and house of representatives, any subsequent recommendations to subdivide, classify, and subclassify all designated state highways into the following three functional classes:
     (a) The "principal arterial system" shall consist of a connected network of rural arterial routes with appropriate extensions into and through urban areas, including all routes designated as part of the interstate system, which serve corridor movements having travel characteristics indicative of substantial statewide and interstate travel;
     (b) The "minor arterial system" shall, in conjunction with the principal arterial system, form a rural network of arterial routes linking cities and other activity centers which generate long distance travel, and, with appropriate extensions into and through urban areas, form an integrated network providing interstate and interregional service; and
     (c) The "collector system" shall consist of routes which primarily serve the more important intercounty, intracounty, and intraurban travel corridors, collect traffic from the system of local access roads and convey it to the arterial system, and on which, regardless of traffic volume, the predominant travel distances are shorter than on arterial routes.
     (2) The ((transportation commission)) department shall adopt a functional classification of highways. The ((commission)) department shall consider ((the recommendations of the department and testimony)) comments from the public and local municipalities. The ((commission)) department shall give consideration to criteria consistent with this section and federal regulations relating to the functional classification of highways, including but not limited to the following:
     (a) Urban population centers within and without the state stratified and ranked according to size;
     (b) Important traffic generating economic activities, including but not limited to recreation, agriculture, government, business, and industry;
     (c) Feasibility of the route, including availability of alternate routes within and without the state;
     (d) Directness of travel and distance between points of economic importance;
     (e) Length of trips;
     (f) Character and volume of traffic;
     (g) Preferential consideration for multiple service which shall include public transportation;
     (h) Reasonable spacing depending upon population density; and
     (i) System continuity.
     (3) The ((transportation commission)) department or the legislature shall designate state highways of statewide significance under RCW 47.06.140. If the ((commission)) department designates a state highway of statewide significance, it shall submit a list of such facilities for adoption by the legislature. This statewide system shall include at a minimum interstate highways and other statewide principal arterials that are needed to connect major communities across the state and support the state's economy.
     (4) The ((transportation commission)) department shall designate a freight and goods transportation system. This statewide system shall include state highways, county roads, and city streets. The ((commission)) department, in cooperation with cities and counties, shall review and make recommendations to the legislature regarding policies governing weight restrictions and road closures which affect the transportation of freight and goods.

Sec. 9   RCW 36.57A.191 and 2003 c 363 s 304 are each amended to read as follows:
     As a condition of receiving state funding, a public transportation benefit area authority shall submit a maintenance and preservation management plan for certification by the department of transportation ((commission or its successor entity)). The plan must inventory all transportation system assets within the direction and control of the authority, and provide a preservation plan based on lowest life-cycle cost methodologies.

Sec. 10   RCW 36.78.121 and 2003 c 363 s 307 are each amended to read as follows:
     The county road administration board, or its successor entity, shall establish a standard of good practice for maintenance of transportation system assets. This standard must be implemented by all counties no later than December 31, 2007. The board shall develop a model maintenance management system for use by counties. The board shall develop rules to assist the counties in the implementation of this system. Counties shall annually submit their maintenance plans to the board. The board shall compile the county data regarding maintenance management and annually submit it to the ((transportation commission or its successor entity)) office of financial management.

Sec. 11   RCW 36.79.120 and 1988 c 26 s 6 are each amended to read as follows:
     Counties receiving funds from the rural arterial trust account for construction of arterials and the construction of replacement bridges funded by the federal bridge replacement program on access roads in rural areas shall provide such matching funds as established by rules recommended by the board, subject to review, revision, and final approval by the ((state transportation commission)) office of financial management. Matching requirements shall be established after appropriate studies by the board, taking into account financial resources available to counties to meet arterial needs.

Sec. 12   RCW 36.79.130 and 1983 1st ex.s. c 49 s 13 are each amended to read as follows:
     Not later than November 1st of each even-numbered year the board shall prepare and present to the ((state transportation commission)) office of financial management a recommended budget for expenditures from the rural arterial trust account during the ensuing biennium. The budget shall contain an estimate of the revenues to be credited to the rural arterial trust account.
     The ((state transportation commission)) office of financial management shall review the budget as recommended, revise the budget as it deems proper, and include the budget as revised as a separate section of the transportation budget which it shall submit to the governor pursuant to chapter 43.88 RCW.

Sec. 13   RCW 36.120.020 and 2002 c 56 s 102 are each amended to read as follows:
     The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Board" means the governing body of a regional transportation investment district.
     (2) "Department" means the Washington state department of transportation.
     (3) "Highway of statewide significance" means an existing or proposed state route or federal interstate designated as a highway of statewide significance by the transportation commission, ((its successor entity)) the department, or the legislature.
     (4) "Lead agency" means a public agency that by law can plan, design, and build a transportation project and has been so designated by the district.
     (5) "Regional transportation investment district" or "district" means a municipal corporation whose boundaries are coextensive with two or more contiguous counties and that has been created by county legislative authorities and a vote of the people under this chapter to implement a regional transportation investment plan.
     (6) "Regional transportation investment district planning committee" or "planning committee" means the advisory committee created under RCW 36.120.030 to create and propose to county legislative authorities a regional transportation investment plan to develop, finance, and construct transportation projects.
     (7) "Regional transportation investment plan" or "plan" means a plan to develop, construct, and finance a transportation project or projects.
     (8) "Transportation project" means:
     (a) A capital improvement or improvements to a highway that has been designated, in whole or in part, as a highway of statewide significance, including an extension, that:
     (i) Adds a lane or new lanes to an existing state or federal highway; or
     (ii) Repairs or replaces a lane or lanes damaged by an event declared an emergency by the governor before January 1, 2002.
     (b) A capital improvement or improvements to all or a portion of a highway of statewide significance, including an extension, and may include the following associated multimodal capital improvements:
     (i) Approaches to highways of statewide significance;
     (ii) High-occupancy vehicle lanes;
     (iii) Flyover ramps;
     (iv) Park and ride lots;
     (v) Bus pullouts;
     (vi) Vans for vanpools;
     (vii) Buses; and
     (viii) Signalization, ramp metering, and other transportation system management improvements.
     (c) A capital improvement or improvements to all or a portion of a city street, county road, or existing highway or the creation of a new highway that intersects with a highway of statewide significance, if all of the following conditions are met:
     (i) The project is included in a plan that makes highway improvement projects that add capacity to a highway or highways of statewide significance;
     (ii) The secretary of transportation determines that the project would better relieve traffic congestion than investing that same money in adding capacity to a highway of statewide significance;
     (iii) Matching money equal to one-third of the total cost of the project is provided by local entities, including but not limited to a metropolitan planning organization, county, city, port, or private entity in which a county participating in a plan is located. Local entities may use federal grants to meet this matching requirement;
     (iv) In no case may the cumulative regional transportation investment district contribution to all projects constructed under this subsection (8)(c) exceed ten percent of the revenues generated by the district;
     (v) In no case may the cumulative regional transportation investment district contribution to all projects constructed under this subsection (8)(c) exceed one billion dollars; and
     (vi) The specific projects are included within the plan and submitted as part of the plan to a vote of the people.
     (d) Operations, preservation, and maintenance are excluded from this definition and may not be included in a regional transportation investment plan.
     (9) "Weighted vote" means a vote that reflects the population each board or planning committee member represents relative to the population represented by the total membership of the board or planning committee. Population will be determined using the federal 2000 census or subsequent federal census data.

Sec. 14   RCW 43.10.101 and 2005 c 319 s 104 are each amended to read as follows:
     The attorney general shall prepare annually a report to the transportation committees of the legislature, the governor, the department of transportation, and the transportation commission((, and the transportation performance audit board)) comprising a comprehensive summary of all cases involving tort claims against the department of transportation involving highways which were concluded and closed in the previous calendar year. The report shall include for each case closed:
     (1) A summary of the factual background of the case;
     (2) Identification of the attorneys representing the state and the opposing parties;
     (3) A synopsis of the legal theories asserted and the defenses presented;
     (4) Whether the case was tried, settled, or dismissed, and in whose favor;
     (5) The approximate number of attorney hours expended by the state on the case, together with the corresponding dollar amount billed therefore; and
     (6) Such other matters relating to the case as the attorney general deems relevant or appropriate, especially including any comments or recommendations for changes in statute law or agency practice that might effectively reduce the exposure of the state to such tort claims.

Sec. 15   RCW 46.44.042 and 1996 c 116 s 1 are each amended to read as follows:
     Subject to the maximum gross weights specified in RCW 46.44.041, it is unlawful to operate any vehicle upon the public highways with a gross weight, including load, upon any tire concentrated upon the surface of the highway in excess of six hundred pounds per inch width of such tire. An axle manufactured after July 31, 1993, carrying more than ten thousand pounds gross weight must be equipped with four or more tires. ((Effective January 1, 1997,)) An axle carrying more than ten thousand pounds gross weight must have four or more tires, regardless of date of manufacture. Instead of the four or more tires per axle requirements of this section, an axle may be equipped with two tires limited to five hundred pounds per inch width of tire. This section does not apply to vehicles operating under oversize or overweight permits, or both, issued under RCW 46.44.090, while carrying a nonreducible load.
     The following equipment may operate at six hundred pounds per inch width of tire: (1) A nonliftable steering axle or axles on the power unit; (2) a tiller axle on fire fighting apparatus; (3) a rear booster trailing axle equipped with two tires on a ready-mix concrete transit truck; and (4) a straddle trailer manufactured before January 1, 1996, equipped with single-tire axles or a single axle using a walking beam supported by two in-line single tires and used exclusively for the transport of fruit bins between field, storage, and processing. A straddle trailer manufactured after January 1, 1996, meeting this use criteria may carry five hundred fifteen pounds per inch width of tire on sixteen and one-half inch wide tires.
     For the purpose of this section, the width of tire in case of solid rubber or hollow center cushion tires, so long as the use thereof may be permitted by the law, shall be measured between the flanges of the rim. For the purpose of this section, the width of tires in case of pneumatic tires shall be the maximum overall normal inflated width as stipulated by the manufacturer when inflated to the pressure specified and without load thereon.
     The department of transportation, ((under rules adopted by the transportation commission)) by rule with respect to state highways, and a local authority, with respect to a public highway under its jurisdiction, may extend the weight table in RCW 46.44.041 to one hundred fifteen thousand pounds. However, the extension must be in compliance with federal law, and vehicles operating under the extension must be in full compliance with the 1997 axle and tire requirements under this section.

Sec. 16   RCW 46.44.080 and 1977 ex.s. c 151 s 29 are each amended to read as follows:
     Local authorities with respect to public highways under their jurisdiction may prohibit the operation thereon of motor trucks or other vehicles or may impose limits as to the weight thereof, or any other restrictions as may be deemed necessary, whenever any such public highway by reason of rain, snow, climatic or other conditions, will be seriously damaged or destroyed unless the operation of vehicles thereon be prohibited or restricted or the permissible weights thereof reduced: PROVIDED, That whenever a highway has been closed generally to vehicles or specified classes of vehicles, local authorities shall by general rule or by special permit authorize the operation thereon of school buses, emergency vehicles, and motor trucks transporting perishable commodities or commodities necessary for the health and welfare of local residents under such weight and speed restrictions as the local authorities deem necessary to protect the highway from undue damage: PROVIDED FURTHER, That the governing authorities of incorporated cities and towns shall not prohibit the use of any city street designated ((by the transportation commission as forming)) a part of the route of any primary state highway through any such incorporated city or town by vehicles or any class of vehicles or impose any restrictions or reductions in permissible weights unless such restriction, limitation, or prohibition, or reduction in permissible weights be first approved in writing by the department of transportation.
     The local authorities imposing any such restrictions or limitations, or prohibiting any use or reducing the permissible weights shall do so by proper ordinance or resolution and shall erect or cause to be erected and maintained signs designating the provisions of the ordinance or resolution in each end of the portion of any public highway affected thereby, and no such ordinance or resolution shall be effective unless and until such signs are erected and maintained.
     The department shall have the same authority as hereinabove granted to local authorities to prohibit or restrict the operation of vehicles upon state highways. The department shall give public notice of closure or restriction. The department may issue special permits for the operation of school buses and motor trucks transporting perishable commodities or commodities necessary for the health and welfare of local residents under specified weight and speed restrictions as may be necessary to protect any state highway from undue damage.

Sec. 17   RCW 46.44.090 and 2001 c 262 s 1 are each amended to read as follows:
     The department of transportation, pursuant to its rules ((adopted by the transportation commission)) with respect to state highways, and local authorities, with respect to public highways under their jurisdiction, may, upon application in writing and good cause being shown therefor, issue a special permit in writing, or electronically, authorizing the applicant to operate or move a vehicle or combination of vehicles of a size, weight of vehicle, or load exceeding the maximum set forth in RCW 46.44.010, 46.44.020, 46.44.030, 46.44.034, and 46.44.041 upon any public highway under the jurisdiction of the authority granting such permit and for the maintenance of which such authority is responsible.

Sec. 18   RCW 46.44.092 and 1989 c 398 s 2 are each amended to read as follows:
     Special permits may not be issued for movements on any state highway outside the limits of any city or town in excess of the following widths:
     On two-lane highways, fourteen feet;
     On multiple-lane highways where a physical barrier serving as a median divider separates opposing traffic lanes, twenty feet;
     On multiple-lane highways without a physical barrier serving as a median divider, thirty-two feet.
     These limits apply except under the following conditions:
     (1) In the case of buildings, the limitations referred to in this section for movement on any two lane state highway other than the national system of interstate and defense highways may be exceeded under the following conditions: (a) Controlled vehicular traffic shall be maintained in one direction at all times; (b) the maximum distance of movement shall not exceed five miles; additional contiguous permits shall not be issued to exceed the five-mile limit: PROVIDED, That when the department of transportation((, pursuant to general rules adopted by the transportation commission,)) determines a hardship would result, this limitation may be exceeded upon approval of the department of transportation; (c) prior to issuing a permit a qualified transportation department employee shall make a visual inspection of the building and route involved determining that the conditions listed herein shall be complied with and that structures or overhead obstructions may be cleared or moved in order to maintain a constant and uninterrupted movement of the building; (d) special escort or other precautions may be imposed to assure movement is made under the safest possible conditions, and the Washington state patrol shall be advised when and where the movement is to be made;
     (2) Permits may be issued for widths of vehicles in excess of the preceding limitations on highways or sections of highways which have been designed and constructed for width in excess of such limitations;
     (3) Permits may be issued for vehicles with a total outside width, including the load, of nine feet or less when the vehicle is equipped with a mechanism designed to cover the load pursuant to RCW 46.61.655;
     (4) These limitations may be rescinded when certification is made by military officials, or by officials of public or private power facilities, or when in the opinion of the department of transportation the movement or action is a necessary movement or action: PROVIDED FURTHER, That in the judgment of the department of transportation the structures and highway surfaces on the routes involved are capable of sustaining widths in excess of such limitation;
     (5) These limitations shall not apply to movement during daylight hours on any two lane state highway where the gross weight, including load, does not exceed eighty thousand pounds and the overall width of load does not exceed sixteen feet: PROVIDED, That the minimum and maximum speed of such movements, prescribed routes of such movements, the times of such movements, limitation upon frequency of trips (which limitation shall be not less than one per week), and conditions to assure safety of traffic may be prescribed by the department of transportation or local authority issuing such special permit.
     The applicant for any special permit shall specifically describe the vehicle or vehicles and load to be operated or moved and the particular state highways for which permit to operate is requested and whether such permit is requested for a single trip or for continuous operation.

Sec. 19   RCW 46.44.096 and 1996 c 92 s 1 are each amended to read as follows:
     In determining fees according to RCW 46.44.0941, mileage on state primary and secondary highways shall be determined from the planning survey records of the department of transportation, and the gross weight of the vehicle or vehicles, including load, shall be declared by the applicant. Overweight on which fees shall be paid will be gross loadings in excess of loadings authorized by law or axle loadings in excess of loadings authorized by law, whichever is the greater. Loads which are overweight and oversize shall be charged the fee for the overweight permit without additional fees being assessed for the oversize features.
     Special permits issued under RCW 46.44.047, 46.44.0941, or 46.44.095, may be obtained from offices of the department of transportation, ports of entry, or other agents appointed by the department.
     The department may appoint agents for the purposes of selling special motor vehicle permits, temporary additional tonnage permits, and log tolerance permits. Agents so appointed may retain three dollars and fifty cents for each permit sold to defray expenses incurred in handling and selling the permits. If the fee is collected by the department of transportation, the department shall certify the fee so collected to the state treasurer for deposit to the credit of the motor vehicle fund.
     The department may select a third party contractor, by means of competitive bid, to perform the department's permit issuance function, as provided under RCW 46.44.090. Factors the department shall consider, but is not limited to, in the selection of a third party contractor are economic benefit to both the department and the motor carrier industry, and enhancement of the overall level of permit service. For purposes of this section, "third party contractor" means a business entity that is authorized by the department to issue special permits. The department of transportation ((commission)) may adopt rules specifying the criteria that a business entity must meet in order to qualify as a third party contractor under this section.
     Fees established in RCW 46.44.0941 shall be paid to the political body issuing the permit if the entire movement is to be confined to roads, streets, or highways for which that political body is responsible. When a movement involves a combination of state highways, county roads, and/or city streets the fee shall be paid to the ((state)) department of transportation. When a movement is confined within the city limits of a city or town upon city streets, including routes of state highways on city streets, all fees shall be paid to the city or town involved. A permit will not be required from city or town authorities for a move involving a combination of city or town streets and state highways when the move through a city or town is being confined to the route of the state highway. When a move involves a combination of county roads and city streets the fee shall be paid to the county authorities, but the fee shall not be collected nor the county permit issued until valid permits are presented showing that the city or town authorities approve of the move in question. When the movement involves only county roads the fees collected shall be paid to the county involved. Fees established shall be paid to the political body issuing the permit if the entire use of the vehicle during the period covered by the permit shall be confined to the roads, streets, or highways for which that political body is responsible.

Sec. 20   RCW 46.61.450 and 1977 ex.s. c 151 s 39 are each amended to read as follows:
     It shall be unlawful for any person to operate a vehicle or any combination of vehicles over any bridge or other elevated structure or through any tunnel or underpass constituting a part of any public highway at a rate of speed or with a gross weight or of a size which is greater at any time than the maximum speed or maximum weight or size which can be maintained or carried with safety over any such bridge or structure or through any such tunnel or underpass when such bridge, structure, tunnel, or underpass is sign posted as hereinafter provided. The secretary of transportation, if it be a bridge, structure, tunnel, or underpass upon a state highway, or the governing body or authorities of any county, city, or town, if it be upon roads or streets under their jurisdiction, may restrict the speed which may be maintained or the gross weight or size which may be operated upon or over any such bridge or elevated structure or through any such tunnel or underpass with safety thereto. The secretary or the governing body or authorities of any county, city, or town having jurisdiction shall determine and declare the maximum speed or maximum gross weight or size which such bridge, elevated structure, tunnel, or underpass can withstand or accommodate and shall cause suitable signs stating such maximum speed or maximum gross weight, or size, or either, to be erected and maintained on the right hand side of such highway, road, or street and at a distance of not less than one hundred feet from each end of such bridge, structure, tunnel, or underpass and on the approach thereto: PROVIDED, That in the event that any such bridge, elevated structure, tunnel, or underpass is upon a city street designated by the department of transportation ((commission)) as forming a part of the route of any state highway through any such incorporated city or town the determination of any maximum speed or maximum gross weight or size which such bridge, elevated structure, tunnel, or underpass can withstand or accommodate shall not be enforceable at any speed, weight, or size less than the maximum allowed by law, unless with the approval in writing of the secretary. Upon the trial of any person charged with a violation of this section, proof of either violation of maximum speed or maximum weight, or size, or either, and the distance and location of such signs as are required, shall constitute conclusive evidence of the maximum speed or maximum weight, or size, or either, which can be maintained or carried with safety over such bridge or elevated structure or through such tunnel or underpass.

Sec. 21   RCW 46.68.113 and 2003 c 363 s 305 are each amended to read as follows:
     During the 2003-2005 biennium, cities and towns shall provide to the transportation commission, or its successor entity, preservation rating information on at least seventy percent of the total city and town arterial network. Thereafter, the preservation rating information requirement shall increase in five percent increments in subsequent biennia. The rating system used by cities and towns must be based upon the Washington state pavement rating method or an equivalent standard approved by the department of transportation ((commission or its successor entity)). Beginning January 1, 2007, the preservation rating information shall be submitted to the department.

Sec. 22   RCW 47.28.010 and 1977 ex.s. c 151 s 59 are each amended to read as follows:
     Whenever the general route of any state highway shall be designated and laid out as running to or by way of certain designated points, without specifying the particular route to be followed to or by way of such points, the ((transportation commission)) department shall determine the particular route to be followed by said state highway to or by way of said designated points, and shall be at liberty to select and adopt as a part of such state highway, the whole or any part of any existing public highway previously designated as a county road, primary road, or secondary road or now or hereafter classified as a county road. The ((commission)) department need not select and adopt the entire routes for such state highways at one time, but may select and adopt parts of such routes from time to time as it deems advisable. Where a state highway is designated as passing by way of a certain point, this shall not require the ((commission)) department to cause such state highway to pass through or touch such point but such designation is directional only and may be complied with by location in the general vicinity. The department ((of transportation)) is empowered to construct as a part of any state highway as designated and in addition to any portion meeting the limits of any incorporated city or town a bypass section either through or around any such incorporated city or town.

Sec. 23   RCW 47.28.170 and 1990 c 265 s 1 are each amended to read as follows:
     (1) Whenever the department finds that as a consequence of accident, natural disaster, or other emergency, an existing state highway is in jeopardy or is rendered impassible in one or both directions and the department further finds that prompt reconstruction, repair, or other work is needed to preserve or restore the highway for public travel, the department may obtain at least three written bids for the work without publishing a call for bids, and the secretary of transportation may award a contract forthwith to the lowest responsible bidder.
     The department shall notify any association or organization of contractors filing a request to regularly receive notification. Notification to an association or organization of contractors shall include: (a) The location of the work to be done; (b) the general anticipated nature of the work to be done; and (c) the date determined by the department as reasonable in view of the nature of the work and emergent nature of the problem after which the department will not receive bids.
     (2) Whenever the department finds it necessary to protect a highway facility from imminent damage or to perform emergency work to reopen a highway facility, the department may contract for such work on a negotiated basis not to exceed force account rates for a period not to exceed thirty working days.
     (3) The secretary shall review any contract exceeding ((two)) seven hundred thousand dollars awarded under subsection (1) or (2) of this section with the ((transportation commission at its next regularly scheduled meeting)) office of financial management within thirty days of the contract award.
     (4) Any person, firm, or corporation awarded a contract for work must be prequalified pursuant to RCW 47.28.070 and may be required to furnish a bid deposit or performance bond.

Sec. 24   RCW 47.38.060 and 1996 c 172 s 1 are each amended to read as follows:
     The ((transportation commission)) department may designate interstate safety rest areas, as appropriate, as locations for memorial signs to prisoners of war and those missing in action. The ((commission)) department shall adopt policies for the placement of memorial signs on interstate safety rest areas and may disapprove any memorial sign that it determines to be inappropriate or inconsistent with the policies. The policies shall include, but are not limited to, guidelines for the size and location of and inscriptions on memorial signs. The secretary shall adopt rules for administering this program. Nonprofit associations may have their name identified on a memorial sign if the association bears the cost of supplying and maintaining the memorial sign.

Sec. 25   RCW 47.52.133 and 1987 c 200 s 2 are each amended to read as follows:
     Except as provided in RCW 47.52.134, the ((transportation commission)) department and the highway authorities of the counties and incorporated cities and towns, with regard to facilities under their respective jurisdictions, prior to the establishment of any limited access facility, shall hold a public hearing within the county, city, or town wherein the limited access facility is to be established to determine the desirability of the plan proposed by such authority. Notice of such hearing shall be given to the owners of property abutting the section of any existing highway, road, or street being established as a limited access facility, as indicated in the tax rolls of the county, and in the case of a state limited access facility, to the county and/or city or town. Such notice shall be by United States mail in writing, setting forth a time for the hearing, which time shall be not less than fifteen days after mailing of such notice. Notice of such hearing also shall be given by publication not less than fifteen days prior to such hearing in one or more newspapers of general circulation within the county, city, or town. Such notice by publication shall be deemed sufficient as to any owner or reputed owner or any unknown owner or owner who cannot be located. Such notice shall indicate a suitable location where plans for such proposal may be inspected.

Sec. 26   RCW 47.52.145 and 1981 c 95 s 2 are each amended to read as follows:
     Whenever after the final adoption of a plan for a limited access highway by the ((transportation commission)) department, an additional design public hearing with respect to the facility or any portion thereof is conducted pursuant to federal law resulting in a revision of the design of the limited access plan, the ((commission)) department may modify the previously adopted limited access plan to conform to the revised design without further public hearings providing the following conditions are met:
     (1) As compared with the previously adopted limited access plan, the revised plan will not require additional or different right of way with respect to that section of highway for which the design has been revised, in excess of five percent by area; and
     (2) If the previously adopted limited access plan was modified by a board of review convened at the request of a county, city, or town, the legislative authority of the county, city, or town shall approve any revisions of the plan which conflict with modifications ordered by the board of review.

Sec. 27   RCW 47.52.210 and 1981 c 95 s 3 are each amended to read as follows:
     (1) Whenever the ((transportation commission)) department adopts a plan for a limited access highway to be constructed within the corporate limits of a city or town which incorporates existing city or town streets, title to such streets shall remain in the city or town, and the provisions of RCW 47.24.020 as now or hereafter amended shall continue to apply to such streets until such time that the highway is operated as either a partially or fully controlled access highway. Title to and full control over that portion of the city or town street incorporated into the limited access highway shall be vested in the state upon a declaration by the secretary of transportation that such highway is operational as a limited access facility, but in no event prior to the acquisition of right of way for such highway including access rights, and not later than the final completion of construction of such highway.
     (2) Upon the completion of construction of a state limited access highway within a city or town, the department of transportation may relinquish to the city or town streets constructed or improved as a functional part of the limited access highway, slope easements, landscaping areas, and other related improvements to be maintained and operated by the city or town in accordance with the limited access plan. Title to such property relinquished to a city or town shall be conveyed by a deed executed by the secretary of transportation and duly acknowledged. Relinquishment of such property to the city or town may be expressly conditioned upon the maintenance of access control acquired by the state and the continued operation of such property as a functional part of the limited access highway.

Sec. 28   RCW 81.112.086 and 2003 c 363 s 306 are each amended to read as follows:
     As a condition of receiving state funding, a regional transit authority shall submit a maintenance and preservation management plan for certification by the department of transportation ((commission or its successor entity)). The plan must inventory all transportation system assets within the direction and control of the transit authority, and provide a plan for preservation of assets based on lowest life-cycle cost methodologies.

Sec. 29   RCW 36.56.121 and 2003 c 363 s 303 are each amended to read as follows:
     As a condition of receiving state funding, a county that has assumed the transportation functions of a metropolitan municipal corporation shall submit a maintenance and preservation management plan for certification by the ((transportation commission or its successor entity)) department of transportation. The plan must inventory all transportation system assets within the direction and control of the county, and provide a preservation plan based on lowest life-cycle cost methodologies.

Sec. 30   RCW 36.57A.070 and 1985 c 6 s 5 are each amended to read as follows:
     The comprehensive transit plan adopted by the authority shall be reviewed by the state department of transportation ((commission)) to determine:
     (1) The completeness of service to be offered and the economic viability of the transit system proposed in such comprehensive transit plan;
     (2) Whether such plan integrates the proposed transportation system with existing transportation modes and systems that serve the benefit area;
     (3) Whether such plan coordinates that area's system and service with nearby public transportation systems;
     (4) Whether such plan is eligible for matching state or federal funds((;
     After reviewing the comprehensive transit plan, the state transportation commission shall have sixty days in which to approve such plan and to certify to the state treasurer that such public transportation benefit area shall be eligible to receive the motor vehicle excise tax proceeds authorized pursuant to RCW 35.58.273, as now or hereafter amended in the manner prescribed by chapter 82.44 RCW, as now or hereafter amended. To be approved a plan shall provide for coordinated transportation planning, the integration of such proposed transportation program with other transportation systems operating in areas adjacent to, or in the vicinity of the proposed public transportation benefit area, and be consistent with the public transportation coordination criteria adopted pursuant to the urban mass transportation act of 1964 as amended as of July 1, 1975. In the event such comprehensive plan is disapproved and ruled ineligible to receive motor vehicle tax proceeds, the state transportation commission shall provide written notice to the authority within thirty days as to the reasons for such plan's disapproval and such ineligibility. The authority may resubmit such plan upon reconsideration and correction of such deficiencies in the plan cited in such notice of disapproval)).

Sec. 31   RCW 47.10.861 and 2003 c 147 s 1 are each amended to read as follows:
     In order to provide funds necessary for the location, design, right of way, and construction of selected projects or improvements that are identified as transportation 2003 projects or improvements in the omnibus transportation budget, there shall be issued and sold upon the request of the secretary of the department of transportation ((commission)) a total of two billion six hundred million dollars of general obligation bonds of the state of Washington.

Sec. 32   RCW 47.10.862 and 2003 c 147 s 2 are each amended to read as follows:
     Upon the request of the secretary of the department of transportation ((commission)), as appropriate, the state finance committee shall supervise and provide for the issuance, sale, and retirement of the bonds in RCW 47.10.861 through 47.10.866 in accordance with chapter 39.42 RCW. Bonds authorized by RCW 47.10.861 through 47.10.866 shall be sold in the manner, at time or times, in amounts, and at the price as the state finance committee shall determine. No bonds may be offered for sale without prior legislative appropriation of the net proceeds of the sale of the bonds.
     The state finance committee shall consider the issuance of short-term obligations in lieu of long-term obligations for the purposes of more favorable interest rates, lower total interest costs, and increased marketability and for the purpose of retiring the bonds during the life of the project for which they were issued.

Sec. 33   RCW 47.10.843 and 1998 c 321 s 16 are each amended to read as follows:
     In order to provide funds necessary for the location, design, right of way, and construction of state and local highway improvements, there shall be issued and sold upon the request of the ((Washington state)) secretary of the department of transportation ((commission)) a maximum of one billion nine hundred million dollars of general obligation bonds of the state of Washington.

Sec. 34   RCW 47.10.844 and 1998 c 321 s 17 are each amended to read as follows:
     Upon the request of the secretary of the department of transportation ((commission)), the state finance committee shall supervise and provide for the issuance, sale, and retirement of the bonds authorized by RCW 47.10.843 through 47.10.848 in accordance with chapter 39.42 RCW. Bonds authorized by RCW 47.10.843 through 47.10.848 shall be sold in such manner, at such time or times, in such amounts, and at such price as the state finance committee shall determine. No such bonds may be offered for sale without prior legislative appropriation of the net proceeds of the sale of the bonds.
     The state finance committee shall consider the issuance of short-term obligations in lieu of long-term obligations for the purposes of more favorable interest rates, lower total interest costs, and increased marketability and for the purpose of retiring the bonds during the life of the project for which they were issued.

Sec. 35   RCW 47.10.834 and 1995 2nd sp.s. c 15 s 2 are each amended to read as follows:
     In order to provide funds necessary to implement the public-private transportation initiatives authorized by chapter 47.46 RCW, there shall be issued and sold upon the request of the ((Washington state)) secretary of the department of transportation ((commission)) a total of twenty-five million six hundred twenty-five thousand dollars of general obligation bonds of the state of Washington.

Sec. 36   RCW 47.10.835 and 1994 c 183 s 3 are each amended to read as follows:
     Upon the request of the secretary of the department of transportation ((commission)), the state finance committee shall supervise and provide for the issuance, sale, and retirement of the bonds authorized by RCW 47.10.834 through 47.10.841 in accordance with chapter 39.42 RCW. Bonds authorized by RCW 47.10.834 through 47.10.841 shall be sold in such manner, at such time or times, in such amounts, and at such price as the state finance committee shall determine. No such bonds may be offered for sale without prior legislative appropriation of the net proceeds of the sale of the bonds. In making such appropriation of the net proceeds of the sale of the bonds, the legislature shall specify what portion of the appropriation is provided for possible loans and what portion of the appropriation is provided for other forms of cash contributions to projects.
     The state finance committee shall consider the issuance of short-term obligations in lieu of long-term obligations for the purposes of more favorable interest rates, lower total interest costs, and increased marketability and for the purpose of retiring the bonds during the life of the project for which they were issued.

Sec. 37   RCW 47.10.819 and 1993 c 432 s 1 are each amended to read as follows:
     In order to provide funds necessary for the location, design, right of way, and construction of selected interstate and other highway improvements, there shall be issued and sold upon the request of the ((Washington state)) secretary of the department of transportation ((commission)) a total of one hundred million dollars of general obligation bonds of the state of Washington for the following purposes and specified sums:
     (1) Not to exceed twenty-five million dollars to pay the state's and local governments' share of matching funds for the ten demonstration projects identified in the Intermodal Surface Transportation Efficiency Act of 1991.
     (2) Not to exceed fifty million dollars to temporarily pay the regular federal share of construction in advance of federal-aid apportionments as authorized by this section.
     (3) Not to exceed twenty-five million dollars for loans to local governments to provide the required matching funds to take advantage of available federal funds. These loans shall be on such terms and conditions as determined by the ((Washington state)) secretary of the department of transportation ((commission)), but in no event may the loans be for a period of more than ten years. The interest rate on the loans authorized under this subsection shall be equal to the interest rate on the bonds sold for such purposes.

Sec. 38   RCW 47.10.820 and 1993 c 432 s 2 are each amended to read as follows:
     Upon the request of the secretary of the department of transportation ((commission)), the state finance committee shall supervise and provide for the issuance, sale, and retirement of the bonds authorized by RCW 47.10.819 through 47.10.824 in accordance with chapter 39.42 RCW. Bonds authorized by RCW 47.10.819 through 47.10.824 shall be sold in such manner, at such time or times, in such amounts, and at such price as the state finance committee shall determine. No such bonds may be offered for sale without prior legislative appropriation of the net proceeds of the sale of the bonds.
     The state finance committee shall consider the issuance of short-term obligations in lieu of long-term obligations for the purposes of more favorable interest rates, lower total interest costs, and increased marketability and for the purpose of retiring the bonds during the life of the project for which they were issued.

Sec. 39   RCW 47.02.120 and 1990 c 293 s 1 are each amended to read as follows:
     For the purpose of providing funds for the acquisition of headquarters facilities for district 1 of the department of transportation and costs incidental thereto, together with all improvements and equipment required to make the facilities suitable for the department's use, there shall be issued and sold upon the request of the ((Washington transportation commission)) secretary of the department of transportation a total of fifteen million dollars of general obligation bonds of the state of Washington.

Sec. 40   RCW 47.02.140 and 1990 c 293 s 3 are each amended to read as follows:
     Upon the request of the secretary of the department of transportation ((commission)), the state finance committee shall supervise and provide for the issuance, sale, and retirement of the bonds authorized by RCW 47.02.120 through 47.02.190 in accordance with chapter 39.42 RCW. Bonds authorized by RCW 47.02.120 through 47.02.190 shall be sold in such manner, at such time or times, in such amounts, and at such price as the state finance committee shall determine. Except for the purpose of repaying the loan from the motor vehicle fund, no such bonds may be offered for sale without prior legislative appropriation of the net proceeds of the sale of the bonds.
     The state finance committee shall consider the issuance of short-term obligations in lieu of long-term obligations for the purposes of more favorable interest rates, lower total interest costs, and increased marketability and for the purpose of retiring the bonds during the life of the project for which they were issued.

Sec. 41   RCW 47.17.132 and 1997 c 308 s 1 are each amended to read as follows:
     A state highway to be known as state route number 35 is established as follows:
     Beginning at the Washington-Oregon boundary line thence northerly to a junction with state route number 14 in the vicinity of White Salmon((; however, until such time as a bridge across the Columbia River is constructed at a location adopted by the transportation commission no existing route may be maintained or improved by the transportation commission as a temporary route for state route number 35)).

Sec. 42   RCW 47.24.010 and 1998 c 245 s 97 are each amended to read as follows:
     The department of transportation ((commission)) shall determine what streets, together with bridges thereon and wharves necessary for use for ferriage of motor vehicle traffic in connection with such streets, if any, in any incorporated cities and towns shall form a part of the route of state highways and between the first and fifteenth days of July of any year the department ((of transportation)) shall identify by brief description, the streets, together with the bridges thereon and wharves, if any, in such city or town which are designated as forming a part of the route of any state highway; and all such streets, including curbs and gutters and street intersections and such bridges and wharves, shall thereafter be a part of the state highway system and as such shall be constructed and maintained by the department ((of transportation)) from any state funds available therefor: PROVIDED, That the responsibility for the construction and maintenance of any such street together with its appurtenances may be returned to a city or a town upon certification by the department ((of transportation)) to the clerk of any city or town that such street, or portion thereof, is no longer required as a part of the state highway system: PROVIDED FURTHER, That any such certification that a street, or portion thereof, is no longer required as a part of the state highway system shall be made between the first and fifteenth of July following the determination by the department that such street or portion thereof is no longer required as a part of the state highway system, but this shall not prevent the department and any city or town from entering into an agreement that a city or town will accept responsibility for such a street or portion thereof at some time other than between the first and fifteenth of July of any year.

Sec. 43   RCW 43.88.030 and 2005 c 386 s 3 and 2005 c 319 s 108 are each reenacted and amended to read as follows:
     (1) The director of financial management shall provide all agencies with a complete set of instructions for submitting biennial budget requests to the director at least three months before agency budget documents are due into the office of financial management. The budget document or documents shall consist of the governor's budget message which shall be explanatory of the budget and shall contain an outline of the proposed financial policies of the state for the ensuing fiscal period, as well as an outline of the proposed six-year financial policies where applicable, and shall describe in connection therewith the important features of the budget. The biennial budget document or documents shall also describe performance indicators that demonstrate measurable progress towards priority results. The message shall set forth the reasons for salient changes from the previous fiscal period in expenditure and revenue items and shall explain any major changes in financial policy. Attached to the budget message shall be such supporting schedules, exhibits and other explanatory material in respect to both current operations and capital improvements as the governor shall deem to be useful to the legislature. The budget document or documents shall set forth a proposal for expenditures in the ensuing fiscal period, or six-year period where applicable, based upon the estimated revenues and caseloads as approved by the economic and revenue forecast council and caseload forecast council or upon the estimated revenues and caseloads of the office of financial management for those funds, accounts, sources, and programs for which the forecast councils do not prepare an official forecast. Revenues shall be estimated for such fiscal period from the source and at the rates existing by law at the time of submission of the budget document, including the supplemental budgets submitted in the even-numbered years of a biennium. However, the estimated revenues and caseloads for use in the governor's budget document may be adjusted to reflect budgetary revenue transfers and revenue and caseload estimates dependent upon budgetary assumptions of enrollments, workloads, and caseloads. All adjustments to the approved estimated revenues and caseloads must be set forth in the budget document. The governor may additionally submit, as an appendix to each supplemental, biennial, or six-year agency budget or to the budget document or documents, a proposal for expenditures in the ensuing fiscal period from revenue sources derived from proposed changes in existing statutes.
     ((Supplemental and biennial documents shall reflect a six-year expenditure plan consistent with estimated revenues from existing sources. Any additional revenue resulting from proposed changes to existing statutes shall be separately identified within the document as well as related expenditures for the six-year period.))
     The budget document or documents shall also contain:
     (a) Revenues classified by fund and source for the immediately past fiscal period, those received or anticipated for the current fiscal period, and those anticipated for the ensuing biennium;
     (b) The undesignated fund balance or deficit, by fund;
     (c) Such additional information dealing with expenditures, revenues, workload, performance, and personnel as the legislature may direct by law or concurrent resolution;
     (d) Such additional information dealing with revenues and expenditures as the governor shall deem pertinent and useful to the legislature;
     (e) Tabulations showing expenditures classified by fund, function, and agency;
     (f) The expenditures that include nonbudgeted, nonappropriated accounts outside the state treasury;
     (g) Identification of all proposed direct expenditures to implement the Puget Sound water quality plan under chapter 90.71 RCW, shown by agency and in total; and
     (h) Tabulations showing each postretirement adjustment by retirement system established after fiscal year 1991, to include, but not be limited to, estimated total payments made to the end of the previous biennial period, estimated payments for the present biennium, and estimated payments for the ensuing biennium.
     (2) The budget document or documents shall include detailed estimates of all anticipated revenues applicable to proposed operating or capital expenditures and shall also include all proposed operating or capital expenditures. The total of beginning undesignated fund balance and estimated revenues less working capital and other reserves shall equal or exceed the total of proposed applicable expenditures. The budget document or documents shall further include:
     (a) Interest, amortization and redemption charges on the state debt;
     (b) Payments of all reliefs, judgments, and claims;
     (c) Other statutory expenditures;
     (d) Expenditures incident to the operation for each agency;
     (e) Revenues derived from agency operations;
     (f) Expenditures and revenues shall be given in comparative form showing those incurred or received for the immediately past fiscal period and those anticipated for the current biennium and next ensuing biennium;
     (g) A showing and explanation of amounts of general fund and other funds obligations for debt service and any transfers of moneys that otherwise would have been available for appropriation;
     (h) Common school expenditures on a fiscal-year basis;
     (i) A showing, by agency, of the value and purpose of financing contracts for the lease/purchase or acquisition of personal or real property for the current and ensuing fiscal periods; and
     (j) A showing and explanation of anticipated amounts of general fund and other funds required to amortize the unfunded actuarial accrued liability of the retirement system specified under chapter 41.45 RCW, and the contributions to meet such amortization, stated in total dollars and as a level percentage of total compensation.
     (3) The governor's operating budget document or documents shall reflect the statewide priorities as required by RCW 43.88.090.
     (4) The governor's operating budget document or documents shall identify activities that are not addressing the statewide priorities.
     (5) A separate capital budget document or schedule shall be submitted that will contain the following:
     (a) A statement setting forth a long-range facilities plan for the state that identifies and includes the highest priority needs within affordable spending levels;
     (b) A capital program consisting of proposed capital projects for the next biennium and the two biennia succeeding the next biennium consistent with the long-range facilities plan. Insomuch as is practical, and recognizing emergent needs, the capital program shall reflect the priorities, projects, and spending levels proposed in previously submitted capital budget documents in order to provide a reliable long-range planning tool for the legislature and state agencies;
     (c) A capital plan consisting of proposed capital spending for at least four biennia succeeding the next biennium;
     (d) A strategic plan for reducing backlogs of maintenance and repair projects. The plan shall include a prioritized list of specific facility deficiencies and capital projects to address the deficiencies for each agency, cost estimates for each project, a schedule for completing projects over a reasonable period of time, and identification of normal maintenance activities to reduce future backlogs;
     (e) A statement of the reason or purpose for a project;
     (f) Verification that a project is consistent with the provisions set forth in chapter 36.70A RCW;
     (g) A statement about the proposed site, size, and estimated life of the project, if applicable;
     (h) Estimated total project cost;
     (i) For major projects valued over five million dollars, estimated costs for the following project components: Acquisition, consultant services, construction, equipment, project management, and other costs included as part of the project. Project component costs shall be displayed in a standard format defined by the office of financial management to allow comparisons between projects;
     (j) Estimated total project cost for each phase of the project as defined by the office of financial management;
     (k) Estimated ensuing biennium costs;
     (l) Estimated costs beyond the ensuing biennium;
     (m) Estimated construction start and completion dates;
     (n) Source and type of funds proposed;
     (o) Estimated ongoing operating budget costs or savings resulting from the project, including staffing and maintenance costs;
     (p) For any capital appropriation requested for a state agency for the acquisition of land or the capital improvement of land in which the primary purpose of the acquisition or improvement is recreation or wildlife habitat conservation, the capital budget document, or an omnibus list of recreation and habitat acquisitions provided with the governor's budget document, shall identify the projected costs of operation and maintenance for at least the two biennia succeeding the next biennium. Omnibus lists of habitat and recreation land acquisitions shall include individual project cost estimates for operation and maintenance as well as a total for all state projects included in the list. The document shall identify the source of funds from which the operation and maintenance costs are proposed to be funded;
     (q) Such other information bearing upon capital projects as the governor deems to be useful;
     (r) Standard terms, including a standard and uniform definition of normal maintenance, for all capital projects;
     (s) Such other information as the legislature may direct by law or concurrent resolution.
     For purposes of this subsection (5), the term "capital project" shall be defined subsequent to the analysis, findings, and recommendations of a joint committee comprised of representatives from the house capital appropriations committee, senate ways and means committee, legislative evaluation and accountability program committee, and office of financial management.
     (6) No change affecting the comparability of agency or program information relating to expenditures, revenues, workload, performance and personnel shall be made in the format of any budget document or report presented to the legislature under this section or RCW 43.88.160(1) relative to the format of the budget document or report which was presented to the previous regular session of the legislature during an odd-numbered year without prior legislative concurrence. Prior legislative concurrence shall consist of (a) a favorable majority vote on the proposal by the standing committees on ways and means of both houses if the legislature is in session or (b) a favorable majority vote on the proposal by members of the legislative evaluation and accountability program committee if the legislature is not in session.

NEW SECTION.  Sec. 44   A new section is added to chapter 47.01 RCW to read as follows:
     (1) The transportation commission may review the performance and outcome measures of transportation-related agencies. The purpose of these reviews is to ensure that the legislature and the governor have the means to adequately and accurately assess the performance and outcomes of those agencies and departments.
     (2) The performance and outcome measures and benchmarks of each transportation-related agency or department may be reviewed at the discretion of the transportation commission, or at the request of the legislature or the governor. In setting the schedule and the extent of performance reviews, the commission shall consider the timing and results of other recent state, federal, and independent reviews and audits, the seriousness of past findings, any inadequate remedial action taken by an agency or department, whether an agency or department lacks performance and outcome measures, and the desirability to include a diverse range of agencies or programs each year. The commission shall avoid duplication of effort in conducting performance reviews by coordinating with the state auditor, joint legislative audit and review committee, the citizen advisory board, and the governor's performance review process.
     (3) The reviews may include, but are not limited to:
     (a) A determination of whether the performance and outcome measures are consistent with legislative mandates, strategic plans, mission statements, and goals and objectives, and whether the legislature has established clear mandates, strategic plans, mission statements, and goals and objectives that lend themselves to performance and outcome measurement;
     (b) An examination of how agency management uses the measures to manage resources in an efficient and effective manner;
     (c) An assessment of how performance benchmarks are established for the purpose of assessing overall performance compared to external standards and benchmarks;
     (d) An examination of how an analysis of the measurement data is used to make planning and operational improvements;
     (e) A determination of how performance and outcome measures are used in the budget planning, development, and allotment processes and the extent to which the agency is in compliance with its responsibilities under RCW 43.88.090;
     (f) A review of how performance data are reported to and used by the legislature both in policy development and resource allocation;
     (g) An assessment of whether the performance measure data are reliable and collected in a uniform and timely manner;
     (h) A determination whether targeted funding investments and established priorities of government actually produce the intended and expected services and benefits; and
     (i) Recommendations as necessary or appropriate.
     (4) For the purposes of this section, "transportation-related agencies" means any state or local agency, board, special purpose district, or commission that receives or generates funding primarily for transportation-related purposes. At a minimum, the department of transportation, the Washington state patrol, the department of licensing, the transportation improvement board or its successor entity, the county road administration board or its successor entity, and the traffic safety commission are considered transportation-related agencies.
     (5) The state auditor, legislative auditor, governor, and director of the office of financial management shall report to the transportation commission on an annual basis concerning their performance improvement efforts to ensure coordination and avoid duplication of effort.

Sec. 45   RCW 47.05.030 and 2005 c 319 s 9 are each amended to read as follows:
     The department of transportation ((commission)) shall ((adopt)) develop a comprehensive ten-year investment program specifying program objectives and performance measures for the preservation and improvement programs defined in this section. The adopted ten-year investment program must be forwarded as a recommendation to the governor and the legislature. In the specification of investment program objectives and performance measures, the ((transportation commission, in consultation with the Washington state)) department of transportation((,)) shall define and adopt standards for effective programming and prioritization practices including a needs analysis process. The analysis process must ensure the identification of problems and deficiencies, the evaluation of alternative solutions and trade-offs, and estimations of the costs and benefits of prospective projects. ((The investment program must be revised based on directions by the office of financial management.)) The investment program must be based upon the needs identified in the state-owned highway component of the statewide comprehensive transportation plan ((as defined in RCW 47.01.071(3))).
     (1) The preservation program consists of those investments necessary to preserve the existing state highway system and to restore existing safety features, giving consideration to lowest life cycle costing. The preservation program must require use of the most cost-effective pavement surfaces, considering:
     (a) Life-cycle cost analysis;
     (b) Traffic volume;
     (c) Subgrade soil conditions;
     (d) Environmental and weather conditions;
     (e) Materials available; and
     (f) Construction factors.
     The comprehensive ten-year investment program for preservation must identify projects for two years and an investment plan for the remaining eight years.
     (2) The improvement program consists of investments needed to address identified deficiencies on the state highway system to increase mobility, address congestion, and improve safety, support for the economy, and protection of the environment. The ten-year investment program for improvements must identify projects for two years and major deficiencies proposed to be addressed in the ten-year period giving consideration to relative benefits and life cycle costing. The department of transportation ((commission)) program shall give higher priority for correcting identified deficiencies on those facilities classified as facilities of statewide significance as defined in RCW 47.06.140. Project prioritization must be based primarily upon cost-benefit analysis, where appropriate.
     The department of transportation shall submit the ten-year investment program to the transportation commission ((shall)). The transportation commission shall review, approve, and present the comprehensive ten-year investment program to the governor and the legislature as directed by the office of financial management.

Sec. 46   RCW 47.05.035 and 2005 c 319 s 10 are each amended to read as follows:
     (1) The department shall use the transportation demand modeling tools developed under subsection (2) of this section to evaluate investments based on the best mode or improvement, or mix of modes and improvements, to meet current and future long-term demand within a corridor or system for the lowest cost. The end result of these demand modeling tools is to provide a cost-benefit analysis by which the department can determine the relative mobility improvement and congestion relief each mode or improvement under consideration will provide and the relative investment each mode or improvement under consideration will need to achieve that relief.
     (2) The department will participate in the refinement, enhancement, and application of existing transportation demand modeling tools to be used to evaluate investments. This participation and use of transportation demand modeling tools will be phased in.
     (3) In developing program objectives and performance measures, the department shall evaluate investment trade-offs between the preservation and improvement programs. In making these investment trade-offs, the department shall evaluate, using cost-benefit techniques, roadway and bridge maintenance activities as compared to roadway and bridge preservation program activities and adjust those programs accordingly.
     (4) The department shall allocate the estimated revenue between preservation and improvement programs giving primary consideration to the following factors:
     (a) The relative needs in each of the programs and the system performance levels that can be achieved by meeting these needs;
     (b) The need to provide adequate funding for preservation to protect the state's investment in its existing highway system;
     (c) The continuity of future transportation development with those improvements previously programmed; and
     (d) The availability of dedicated funds for a specific type of work.
     (5) The ((commission shall review the results of the department's findings and shall consider those)) department shall consider the findings in this section in the development of the ten-year investment program.

Sec. 47   RCW 47.05.051 and 2005 c 319 s 11 are each amended to read as follows:
     (((1))) The comprehensive ten-year investment program shall be based upon the needs identified in the state-owned highway component of the statewide ((multimodal)) comprehensive transportation plan ((as defined in RCW 47.01.071(4))) and priority selection systems that incorporate the following criteria:
     (((a))) (1) Priority programming for the preservation program shall take into account the following, not necessarily in order of importance:
     (((i))) (a) Extending the service life of the existing highway system, including using the most cost-effective pavement surfaces, considering:
     (((A))) (i) Life-cycle cost analysis;
     (((B))) (ii) Traffic volume;
     (((C))) (iii) Subgrade soil conditions;
     (((D))) (iv) Environmental and weather conditions;
     (((E))) (v) Materials available; and
     (((F))) (vi) Construction factors;
     (((ii))) (b) Ensuring the structural ability to carry loads imposed upon highways and bridges; and
     (((iii))) (c) Minimizing life-cycle costs. ((The transportation commission in carrying out the provisions of this section may delegate to the department of transportation the authority to select preservation projects to be included in the ten-year program.
     (b))) (2) Priority programming for the improvement program must be based primarily upon the following, not necessarily in order of importance:
     (((i))) (a) Traffic congestion, delay, and accidents;
     (((ii))) (b) Location within a heavily traveled transportation corridor;
     (((iii))) (c) Except for projects in cities having a population of less than five thousand persons, synchronization with other potential transportation projects, including transit and multimodal projects, within the heavily traveled corridor; and
     (((iv))) (d) Use of benefit/cost analysis wherever feasible to determine the value of the proposed project.
     (((c))) (3) Priority programming for the improvement program may also take into account:
     (((i))) (a) Support for the state's economy, including job creation and job preservation;
     (((ii))) (b) The cost-effective movement of people and goods;
     (((iii))) (c) Accident and accident risk reduction;
     (((iv))) (d) Protection of the state's natural environment;
     (((v))) (e) Continuity and systematic development of the highway transportation network;
     (((vi))) (f) Consistency with local comprehensive plans developed under chapter 36.70A RCW including the following if they have been included in the comprehensive plan:
     (((A))) (i) Support for development in and revitalization of existing downtowns;
     (((B))) (ii) Extent that development implements local comprehensive plans for rural and urban residential and nonresidential densities;
     (((C))) (iii) Extent of compact, transit-oriented development for rural and urban residential and nonresidential densities;
     (((D))) (iv) Opportunities for multimodal transportation; and
     (((E))) (v) Extent to which the project accommodates planned growth and economic development;
     (((vii))) (g) Consistency with regional transportation plans developed under chapter 47.80 RCW;
     (((viii))) (h) Public views concerning proposed improvements;
     (((ix))) (i) The conservation of energy resources;
     (((x))) (j) Feasibility of financing the full proposed improvement;
     (((xi))) (k) Commitments established in previous legislative sessions;
     (((xii))) (l) Relative costs and benefits of candidate programs.
     (((d) Major projects addressing capacity deficiencies which prioritize allowing for preliminary engineering shall be reprioritized during the succeeding biennium, based upon updated project data. Reprioritized projects may be delayed or canceled by the transportation commission if higher priority projects are awaiting funding.
     (e) Major project approvals which significantly increase a project's scope or cost from original prioritization estimates shall include a review of the project's estimated revised priority rank and the level of funding provided. Projects may be delayed or canceled by the transportation commission if higher priority projects are awaiting funding.
     (2) The commission may depart from the priority programming established under subsection (1) of this section: (a) To the extent that otherwise funds cannot be utilized feasibly within the program; (b) as may be required by a court judgment, legally binding agreement, or state and federal laws and regulations; (c) as may be required to coordinate with federal, local, or other state agency construction projects; (d) to take advantage of some substantial financial benefit that may be available; (e) for continuity of route development; or (f) because of changed financial or physical conditions of an unforeseen or emergent nature. The commission or secretary of transportation shall maintain in its files information sufficient to show the extent to which the commission has departed from the established priority.
     (3) The commission shall identify those projects that yield freight mobility benefits or that alleviate the impacts of freight mobility upon affected communities.))

Sec. 48   RCW 47.29.010 and 2005 c 317 s 1 are each amended to read as follows:
     (1) The legislature finds that the public-private (([transportation])) transportation initiatives act created under chapter 47.46 RCW has not met the needs and expectations of the public or private sectors for the development of transportation projects. The legislature intends to phase out chapter 47.46 RCW coincident with the completion of the Tacoma Narrows Bridge - SR 16 public-private partnership. From July 24, 2005, this chapter will provide a more desirable and effective approach to developing transportation projects in partnership with the private sector by applying lessons learned from other states and from this state's ten-year experience with chapter 47.46 RCW.
     (2) It is the legislature's intent to achieve the following goals through the creation of this new approach to public-private partnerships:
     (a) To provide a well-defined mechanism to facilitate the collaboration between public and private entities in transportation;
     (b) To bring innovative thinking from the private sector and other states to bear on public projects within the state;
     (c) To provide greater flexibility in achieving the transportation projects; and
     (d) To allow for creative cost and risk sharing between the public and private partners.
     (3) The legislature intends that the powers granted in this chapter to the commission or department are in addition to any powers granted under chapter 47.56 RCW.
     (4) It is further the intent of the legislature that ((the commission shall be responsible for receiving, reviewing, and approving proposals with technical support of the department; rule making; and for oversight of contract execution. The department shall be responsible for evaluating proposals and negotiating contracts)) an expert review panel be established for each project developed under this act. Expert review panels shall be responsible for reviewing selected proposals, analyzing and reviewing tentative agreements, and making recommendations to the governor and the transportation commission on the advisability of executing agreements under this act.

NEW SECTION.  Sec. 49   A new section is added to chapter 47.29 RCW to read as follows:
     (1) The department shall establish an expert review panel to review, analyze, and make recommendations to the governor and the transportation commission on whether to approve, reject, or continue negotiations on a proposed project agreement under this chapter. The department shall provide staff to support the expert review panel, if requested by the panel. The expert review panel may utilize any of the consultants under contract for the department, and the expert review panel may contract for consulting expertise in specific areas as it deems necessary to ensure a thorough and critical review of any proposed project agreement.
     (2) The governor shall appoint members of an expert review panel that have experience in large capital project delivery, public-private partnerships, public financing of infrastructure improvements, or other areas of expertise that will benefit the panel. The panel shall consist of no less than three, but no more than five members, as determined by the governor.

NEW SECTION.  Sec. 50   A new section is added to chapter 47.29 RCW to read as follows:
     Upon receiving the recommendations of the expert review panel as provided in section 49 of this act, and upon consultation with the governor, the transportation commission shall either execute the proposed project agreement, reject the proposed project agreement, or continue further negotiations between the state and a private partner. The execution of any agreement or the rejection of any agreement shall constitute a final action for legal or administrative purposes.

NEW SECTION.  Sec. 51   The following acts or parts of acts are each repealed:
     (1) RCW 44.75.010 (Intent) and 2003 c 362 s 1;
     (2) RCW 44.75.020 (Definitions) and 2005 c 319 s 16 & 2003 c 362 s 2;
     (3) RCW 44.75.030 (Board created -- Membership) and 2005 c 319 s 17 & 2003 c 362 s 3;
     (4) RCW 44.75.040 (Procedures, compensation, support) and 2005 c 319 s 18 & 2003 c 362 s 4;
     (5) RCW 44.75.050 (Reviews of transportation-related agencies) and 2005 c 319 s 19 & 2003 c 362 s 5;
     (6) RCW 44.75.060 (Review methodology) and 2003 c 362 s 6;
     (7) RCW 44.75.070 (Scope of reviews) and 2003 c 362 s 7;
     (8) RCW 44.75.080 (Direction of audit) and 2005 c 319 s 20 & 2003 c 362 s 8;
     (9) RCW 44.75.090 (Professional experts) and 2005 c 319 s 21 & 2003 c 362 s 9;
     (10) RCW 44.75.100 (Audit reports) and 2005 c 319 s 22 & 2003 c 362 s 10;
     (11) RCW 44.75.110 (Scope of audit) and 2005 c 319 s 23 & 2003 c 362 s 11;
     (12) RCW 44.75.120 (Contents of report) and 2005 c 319 s 24 & 2003 c 362 s 12;
     (13) RCW 44.75.800 (Department of transportation audit) and 2003 c 362 s 15;
     (14) RCW 44.75.900 (Captions -- 2003 c 362) and 2003 c 362 s 18; and
     (15) RCW 44.75.901 (Effective date -- 2003 c 362) and 2003 c 362 s 19.

NEW SECTION.  Sec. 52   This act takes effect July 1, 2006."