BILL REQ. #:  H-0859.1 

Read first time 01/17/2007.   Referred to Committee on Local Government.

     AN ACT Relating to dedicating existing revenue to infrastructure funding; amending RCW 82.45.060; reenacting and amending RCW 43.84.092; adding new sections to chapter 36.70A RCW; and creating new sections.

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

NEW SECTION.  Sec. 1   The legislature finds that population growth in many areas of the state requires new, improved, or additional infrastructure to accommodate growth and protect the quality of life in Washington state. The legislature further finds that the needed infrastructure identified in the capital facilities elements of comprehensive plans adopted by counties and cities far exceed the existing funding available to county, city, or state agencies responsible for constructing or operating the needed infrastructure and that current programs available for local government infrastructure assistance are oversubscribed. The legislature further finds that funding for the Washington wildlife and recreation program has been insufficient to meet local demands for parks, open space, and habitat protection. The legislature therefore establishes the growth management infrastructure account to assist counties and cities in financing and constructing those infrastructure projects needed to accommodate growth, as identified in the capital facilities elements of growth management plans, and dedicates a portion of the real estate excise tax to the growth management infrastructure account and to the accounts used to fund the Washington wildlife and recreation program.

NEW SECTION.  Sec. 2   A new section is added to chapter 36.70A RCW to read as follows:
     For the purposes of this section and sections 3 and 4 of this act, the following definitions apply:
     (1) "Basic service" means that level of service necessary to meet only the minimum level of service sufficient to accommodate growth, specifically:
     (a) For bridge and road projects, a level of service category "c" on a scale of "a" to "f"; and
     (b) In no case may project landscaping be considered a minimum level of service.
     (2) "Board" means the public works board created in RCW 43.155.030.
     (3) "Financial assistance" means loans or loan guarantees.
     (4) "Growth infrastructure projects" means the acquisition, construction, reconstruction, rehabilitation, and improvement of only those bridges and roads that increase capacity necessary to accommodate projected growth.
     (5) "Local government" means counties, cities, and towns.

NEW SECTION.  Sec. 3   A new section is added to chapter 36.70A RCW to read as follows:
     (1) The growth management infrastructure account is created in the state treasury. Moneys may be placed in the account from the proceeds of bonds when authorized by the legislature or from any other lawful source. The board shall use appropriated moneys from the account to provide financial assistance to qualifying local governments for capital costs directly related to providing basic service for growth infrastructure projects necessary to accommodate residential, commercial, and industrial growth. Funds necessary to support the board's cost in administering sections 2 through 5 of this act shall be appropriated from the account.
     (2) The board shall manage appropriated funds from the account. The board has all responsibilities granted to it under RCW 43.155.040, 43.155.080, and 43.155.090 in carrying out the purposes of this section.
     (3) Existing debt or financial obligations of local governments may not be refinanced under this chapter unless refinancing existing debt or financial obligations will enable the use of other funds, in like amounts, for growth infrastructure projects. Each local government applicant shall provide documentation of attempts to secure additional local or other sources of funding for projects for which financial assistance is sought under this chapter.

NEW SECTION.  Sec. 4   A new section is added to chapter 36.70A RCW to read as follows:
     (1) To qualify for financial assistance local governments must meet the following standards:
     (a) Be in compliance with the provisions of this chapter;
     (b) Demonstrate that the growth infrastructure project increases existing capacity necessary to accommodate projected population and employment growth;
     (c) Demonstrate that the comprehensive land use plan, the zoning designations, the development regulations, and the capital facilities plan are sufficient to accommodate projected population and employment growth;
     (d) Demonstrate that a sufficient quantity of land suitable for development is available for the number of housing units necessary to accommodate projected growth; and
     (e) Demonstrate that development regulations allow the densities and housing types sufficient to accommodate existing and projected housing needs.
     (2) Additional points shall be awarded to applications that demonstrate the local government comprehensive plan policies and development regulations include any of the following:
     (a) Policies that provide for a variety of residential densities and housing types, such as additional dwelling units and cottage housing;
     (b) Policies that make adequate provisions for existing and projected housing needs for all economic segments of the community;
     (c) Policies that provide for a supply of housing sufficient to accommodate projected employment growth;
     (d) Policies that ensure no net loss of housing capacity by increasing land use capacity sufficient to recapture lost capacity through the adoption of development regulations that reduce capacity;
     (e) Policies that provide a receiving zone for transfer of development rights programs; and
     (f) Performance measures that gauge how the local government is accommodating growth and policies to adopt measures that increase the likelihood to accommodate projected growth.

NEW SECTION.  Sec. 5   Nothing in sections 3 and 4 of this act precludes the local government from using local funds in combination with financial assistance provided under sections 3 and 4 of this act to construct a project in excess of the minimum level financed under this act.

Sec. 6   RCW 43.84.092 and 2006 c 337 s 11, 2006 c 311 s 23, 2006 c 171 s 10, 2006 c 56 s 10, and 2006 c 6 s 8 are each reenacted and amended to read as follows:
     (1) All earnings of investments of surplus balances in the state treasury shall be deposited to the treasury income account, which account is hereby established in the state treasury.
     (2) The treasury income account shall be utilized to pay or receive funds associated with federal programs as required by the federal cash management improvement act of 1990. The treasury income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for refunds or allocations of interest earnings required by the cash management improvement act. Refunds of interest to the federal treasury required under the cash management improvement act fall under RCW 43.88.180 and shall not require appropriation. The office of financial management shall determine the amounts due to or from the federal government pursuant to the cash management improvement act. The office of financial management may direct transfers of funds between accounts as deemed necessary to implement the provisions of the cash management improvement act, and this subsection. Refunds or allocations shall occur prior to the distributions of earnings set forth in subsection (4) of this section.
     (3) Except for the provisions of RCW 43.84.160, the treasury income account may be utilized for the payment of purchased banking services on behalf of treasury funds including, but not limited to, depository, safekeeping, and disbursement functions for the state treasury and affected state agencies. The treasury income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for payments to financial institutions. Payments shall occur prior to distribution of earnings set forth in subsection (4) of this section.
     (4) Monthly, the state treasurer shall distribute the earnings credited to the treasury income account. The state treasurer shall credit the general fund with all the earnings credited to the treasury income account except:
     (a) The following accounts and funds shall receive their proportionate share of earnings based upon each account's and fund's average daily balance for the period: The capitol building construction account, the Cedar River channel construction and operation account, the Central Washington University capital projects account, the charitable, educational, penal and reformatory institutions account, the Columbia river basin water supply development account, the common school construction fund, the county criminal justice assistance account, the county sales and use tax equalization account, the data processing building construction account, the deferred compensation administrative account, the deferred compensation principal account, the department of retirement systems expense account, the developmental disabilities community trust account, the drinking water assistance account, the drinking water assistance administrative account, the drinking water assistance repayment account, the Eastern Washington University capital projects account, the education construction fund, the education legacy trust account, the election account, the emergency reserve fund, the energy freedom account, The Evergreen State College capital projects account, the federal forest revolving account, the freight mobility investment account, the freight mobility multimodal account, the growth management infrastructure account, the health services account, the public health services account, the health system capacity account, the personal health services account, the state higher education construction account, the higher education construction account, the highway infrastructure account, the high-occupancy toll lanes operations account, the industrial insurance premium refund account, the judges' retirement account, the judicial retirement administrative account, the judicial retirement principal account, the local leasehold excise tax account, the local real estate excise tax account, the local sales and use tax account, the medical aid account, the mobile home park relocation fund, the multimodal transportation account, the municipal criminal justice assistance account, the municipal sales and use tax equalization account, the natural resources deposit account, the oyster reserve land account, the pension funding stabilization account, the perpetual surveillance and maintenance account, the public employees' retirement system plan 1 account, the public employees' retirement system combined plan 2 and plan 3 account, the public facilities construction loan revolving account beginning July 1, 2004, the public health supplemental account, the public works assistance account, the Puyallup tribal settlement account, the real estate appraiser commission account, the regional mobility grant program account, the resource management cost account, the rural Washington loan fund, the site closure account, the small city pavement and sidewalk account, the special wildlife account, the state employees' insurance account, the state employees' insurance reserve account, the state investment board expense account, the state investment board commingled trust fund accounts, the supplemental pension account, the Tacoma Narrows toll bridge account, the teachers' retirement system plan 1 account, the teachers' retirement system combined plan 2 and plan 3 account, the tobacco prevention and control account, the tobacco settlement account, the transportation infrastructure account, the transportation partnership account, the tuition recovery trust fund, the University of Washington bond retirement fund, the University of Washington building account, the volunteer fire fighters' and reserve officers' relief and pension principal fund, the volunteer fire fighters' and reserve officers' administrative fund, the Washington fruit express account, the Washington judicial retirement system account, the Washington law enforcement officers' and fire fighters' system plan 1 retirement account, the Washington law enforcement officers' and fire fighters' system plan 2 retirement account, the Washington public safety employees' plan 2 retirement account, the Washington school employees' retirement system combined plan 2 and 3 account, the Washington state health insurance pool account, the Washington state patrol retirement account, the Washington State University building account, the Washington State University bond retirement fund, the water pollution control revolving fund, and the Western Washington University capital projects account. Earnings derived from investing balances of the agricultural permanent fund, the normal school permanent fund, the permanent common school fund, the scientific permanent fund, and the state university permanent fund shall be allocated to their respective beneficiary accounts. All earnings to be distributed under this subsection (4)(a) shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.
     (b) The following accounts and funds shall receive eighty percent of their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The aeronautics account, the aircraft search and rescue account, the county arterial preservation account, the department of licensing services account, the essential rail assistance account, the ferry bond retirement fund, the grade crossing protective fund, the high capacity transportation account, the highway bond retirement fund, the highway safety account, the motor vehicle fund, the motorcycle safety education account, the pilotage account, the public transportation systems account, the Puget Sound capital construction account, the Puget Sound ferry operations account, the recreational vehicle account, the rural arterial trust account, the safety and education account, the special category C account, the state patrol highway account, the transportation 2003 account (nickel account), the transportation equipment fund, the transportation fund, the transportation improvement account, the transportation improvement board bond retirement account, and the urban arterial trust account.
     (5) In conformance with Article II, section 37 of the state Constitution, no treasury accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

Sec. 7   RCW 82.45.060 and 2005 c 450 s 1 are each amended to read as follows:
     There is imposed an excise tax upon each sale of real property at the rate of one and twenty-eight one-hundredths percent of the selling price. An amount equal to six and one-tenth percent of the proceeds of this tax to the state treasurer shall be deposited in the public works assistance account created in RCW 43.155.050. An amount equal to three percent of the proceeds of this tax to the state treasurer shall be deposited in the growth management infrastructure account created in section 3 of this act. An amount equal to three percent of the proceeds of this tax to the state treasurer shall be divided among and deposited in the outdoor recreation account created in RCW 79A.15.050, the habitat conservation account created in RCW 79A.15.020, the riparian protection account created in RCW 79A.15.120, and the farmlands preservation account created in RCW 79A.15.130, in the proportion required by chapter 79A.15 RCW. An amount equal to one and six-tenths percent of the proceeds of this tax to the state treasurer shall be deposited in the city-county assistance account created in RCW 43.08.290.