BILL REQ. #:  H-4086.3 

READ FIRST TIME 02/07/12.   

     AN ACT Relating to transportation revenue; reenacting and amending RCW 43.84.092; adding a new section to chapter 46.08 RCW; adding a new section to chapter 46.68 RCW; creating a new section; and providing an effective date.

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

NEW SECTION.  Sec. 1   The legislature finds that the state's transportation system is the backbone of Washington's economy and must be well-coordinated and well-maintained to enable people and goods to move safely and efficiently throughout the state.
     The legislature further finds that the purchasing power of funds to pay for operations and maintenance continues to decline while costs have risen. Without additional funding: The state department of transportation will not be able to preserve the state's highways and bridges or maintain ferry service; counties will not have funding to maintain county roads and fix unsound bridges; and cities will not have sufficient funds to maintain streets and bridges, and pavement conditions will continue to decline.
     The legislature intends that the barrel fee in this act constitutes a dedicated source of funds for operating and maintaining the state's highway and ferry system. The legislature further intends that the barrel fee constitutes state revenue intended to be used for highway purposes, is levied only for highway purposes provided in Article II, section 40 of the state Constitution, and is specifically placed in the motor vehicle fund to be used for those highway purposes.

NEW SECTION.  Sec. 2   A new section is added to chapter 46.08 RCW to read as follows:
     (1) A fee is imposed on every person who refines petroleum products in this state. The amount of the fee is one dollar and fifty cents per barrel on each barrel of petroleum product refined in this state to be used for transportation purposes in the state of Washington.
     (2) The department must collect the fee imposed under this section. Chapter 82.32 RCW applies to the administration, collection, and enforcement of the fee imposed under this section.
     (3) The director shall forward all proceeds from the barrel fee collected under this section to the state treasurer to be distributed according to the following method:
     (a) Fifty percent must be deposited into the state transportation operations and maintenance account created in section 3 of this act;
     (b) Twenty-five percent must be apportioned monthly as such funds accrue among the several cities and towns within the state ratably on the basis of the population last determined by the office of financial management; and
     (c) Twenty-five percent must be apportioned monthly to the several counties in accordance with RCW 46.68.122 and 46.68.124.
     (4) The barrel fee imposed in subsection (1) of this section:
     (a) May be used only for maintaining and operating the transportation system;
     (b) May not be used for the general support of state government;
     (c) Constitutes state revenue intended to be used for highway purposes under Article II, section 40 of the state Constitution; and
     (d) Is imposed to mitigate the impact of the transportation of oil on state roads and highways and the use of petroleum product for transportation purposes on public roads or on Puget Sound.
     (5) Any person having paid the fee imposed under this section who uses petroleum product for a purpose other than a transportation purpose may claim a refund or credit against the fee paid respective to petroleum product used for nontransportation purposes. The refund or credit allowed under this section must be claimed on such forms and is subject to such requirements as the department may prescribe by rule.
     (6) For purposes of this section:
     (a) "Barrel" means a unit of measurement of volume equal to forty-two United States gallons of crude oil or petroleum product.
     (b) "Department" means the department of revenue.
     (c) "Person" has the meaning as provided in RCW 82.04.030.
     (d) "Petroleum product" means any liquid hydrocarbons at atmospheric temperature and pressure that are the product of fractionation, distillation, or other refining or processing of crude oil, and that are used as, useable as, or may be refined as fuel, or fuel blendstock, including gasoline, diesel fuel, aviation fuel, asphalt and road oil, lubricants, and heavy fuel oil.
     (e) "Used for transportation purposes" means petroleum products used as:
     (i) A source of fuel to propel motor vehicles on public roads;
     (ii) A source of fuel for the delivery of petroleum product; and
     (iii) An ingredient or component of substances used to operate, build, repair, improve, or maintain public roads.

NEW SECTION.  Sec. 3   A new section is added to chapter 46.68 RCW to read as follows:
     The state transportation operations and maintenance account is created in the motor vehicle fund established in RCW 46.68.070. All revenues received by the department for the state from the barrel fee created in section 2 of this act must be deposited into the account. Moneys in the account may only be spent after appropriation. Consistent with Article II, section 40 of the state Constitution, expenditures from the account may be used only for the operations and maintenance of state roads and highways and state ferries.

Sec. 4   RCW 43.84.092 and 2011 1st sp.s. c 16 s 6, 2011 1st sp.s. c 7 s 22, 2011 c 369 s 6, 2011 c 339 s 1, 2011 c 311 s 9, 2011 c 272 s 3, 2011 c 120 s 3, and 2011 c 83 s 7 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 aeronautics account, the aircraft search and rescue account, the budget stabilization account, the capital vessel replacement account, 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 cleanup settlement account, the Columbia river basin water supply development account, the Columbia river basin taxable bond water supply development account, the Columbia river basin water supply revenue recovery account, the common school construction fund, the county arterial preservation account, the county criminal justice assistance account, the county sales and use tax equalization account, the deferred compensation administrative account, the deferred compensation principal account, the department of licensing services 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 Interstate 405 express toll lanes operations account, the education construction fund, the education legacy trust account, the election account, the energy freedom account, the energy recovery act account, the essential rail assistance account, The Evergreen State College capital projects account, the federal forest revolving account, the ferry bond retirement fund, the freight congestion relief account, the freight mobility investment account, the freight mobility multimodal account, the grade crossing protective fund, the public health services account, the health system capacity account, the high capacity transportation account, the state higher education construction account, the higher education construction account, the highway bond retirement fund, the highway infrastructure account, the highway safety account, the high occupancy toll lanes operations account, the hospital safety net assessment fund, 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 marine resources stewardship trust account, the medical aid account, the mobile home park relocation fund, the motor vehicle fund, the motorcycle safety education account, the multiagency permitting team account, 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 transportation systems account, the public works assistance account, the Puget Sound capital construction account, the Puget Sound ferry operations account, the Puyallup tribal settlement account, the real estate appraiser commission account, the recreational vehicle account, the regional mobility grant program account, the resource management cost account, the rural arterial trust account, the rural mobility grant program account, the rural Washington loan fund, the site closure account, the skilled nursing facility safety net trust fund, the small city pavement and sidewalk account, the special category C 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 state patrol highway account, the state route number 520 civil penalties account, the state route number 520 corridor account, the state transportation operations and maintenance account, the state wildlife account, 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 2003 account (nickel account), the transportation equipment fund, the transportation fund, the transportation improvement account, the transportation improvement board bond retirement account, the transportation infrastructure account, the transportation partnership account, the traumatic brain injury account, the tuition recovery trust fund, the University of Washington bond retirement fund, the University of Washington building account, the volunteer firefighters' and reserve officers' relief and pension principal fund, the volunteer firefighters' and reserve officers' administrative fund, the Washington judicial retirement system account, the Washington law enforcement officers' and firefighters' system plan 1 retirement account, the Washington law enforcement officers' and firefighters' 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 economic development commission 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.
     (b) Any state agency that has independent authority over accounts or funds not statutorily required to be held in the state treasury that deposits funds into a fund or account in the state treasury pursuant to an agreement with the office of the state treasurer shall receive its proportionate share of earnings based upon each account's or fund's average daily balance for the period.
     (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.

NEW SECTION.  Sec. 5   This act takes effect October 1, 2012.