BILL REQ. #:  Z-0987.1 

Read first time 01/24/12.   Referred to Committee on Transportation.

     AN ACT Relating to transportation revenue; amending RCW 46.17.355, 46.68.035, 46.17.365, 46.17.350, 46.68.415, 36.73.065, 46.37.420, and 82.08.036; reenacting and amending RCW 43.84.092; adding a new section to chapter 46.08 RCW; adding new sections to chapter 46.68 RCW; adding a new section to chapter 47.66 RCW; adding a new section to chapter 82.80 RCW; adding a new section to chapter 46.37 RCW; adding a new section to chapter 46.17 RCW; creating new sections; prescribing penalties; providing an effective date; and providing a contingent expiration 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; cities will not have sufficient funds to maintain streets and bridges, and pavement conditions will continue to decline; and public transit systems will be forced to cut services even more at a time when demand for transit services is increasing dramatically.
     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.

Sec. 2   RCW 46.17.355 and 2011 c 171 s 61 are each amended to read as follows:
     (1) In lieu of the vehicle license fee required under RCW 46.17.350 and before accepting an application for a vehicle registration for motor vehicles described in RCW 46.16A.455, the department, county auditor or other agent, or subagent appointed by the director shall require the applicant, unless specifically exempt, to pay the following license fee by weight:

Sec. 3   RCW 46.68.035 and 2010 c 161 s 804 are each amended to read as follows:
     (1) The director shall forward all proceeds from vehicle license fees received by the director for vehicles registered under RCW 46.17.350(1)(c) ((and (k))), 46.17.355, and 46.17.400(1)(c) to the state treasurer to be distributed into accounts according to the following method:
     (((1) 22.36)) (a) 18.57 percent must be deposited into the state patrol highway account of the motor vehicle fund;
     (((2) 1.375)) (b) 1.143 percent must be deposited into the Puget Sound ferry operations account of the motor vehicle fund;
     (((3) 5.237)) (c) 4.352 percent must be deposited into the transportation 2003 account (nickel account);
     (((4) 11.533)) (d) 9.583 percent must be deposited into the transportation partnership account created in RCW 46.68.290; and
     (((5))) (e) The remaining ((proceeds)) 66.344 percent must be deposited into the motor vehicle fund, in which a minimum of thirty million dollars annually must be dedicated to pavement preservation.
     (2) The director shall forward all proceeds from the vehicle license fees received by the director for vehicles registered under RCW 46.17.350(1)(k) to the state treasurer to be distributed into accounts according to the following method:
     (a) 22.36 percent must be deposited into the state patrol highway account of the motor vehicle fund;
     (b) 1.375 percent must be deposited into the Puget Sound ferry operations account of the motor vehicle fund;
     (c) 5.237 percent must be deposited into the transportation 2003 account (nickel account);
     (d) 11.533 percent must be deposited into the transportation partnership account created in RCW 46.68.290; and
     (e) The remaining proceeds must be deposited in the motor vehicle fund.

Sec. 4   RCW 46.17.365 and 2010 c 161 s 533 are each amended to read as follows:
     (1) A person applying for a motor vehicle registration and paying the vehicle license fee required in RCW 46.17.350(1) (a), (d), (e), (h), (j), (n), and (o) shall pay a motor vehicle weight fee in addition to all other fees and taxes required by law. The motor vehicle weight fee:
     (a) Must be based on the motor vehicle scale weight((;)) as follows:

Sec. 5   RCW 46.17.350 and 2010 c 161 s 531 are each amended to read as follows:
     (1) Before accepting an application for a vehicle registration, the department, county auditor or other agent, or subagent appointed by the director shall require the applicant, unless specifically exempt, to pay the following vehicle license fee by vehicle type:

Sec. 6   RCW 46.68.415 and 2010 c 161 s 813 are each amended to read as follows:
     (1) The motor vehicle weight fee imposed under RCW 46.17.365(1) must be deposited ((every July 1st)) as follows:
     (a) On July 1st of each year, three million dollars to the freight mobility multimodal account created in RCW 46.68.310;
     (b) 16.09 percent to the state patrol highway account created in RCW 46.68.030;
     (c) 12.07 percent to the transit service mitigation account created in section 9 of this act;
     (d) 12.47 percent to the county arterial preservation account created in RCW 46.68.090;
     (e) 9.98 percent to the transportation improvement account created in RCW 47.26.084;
     (f) 2.49 percent to the small city pavement and sidewalk account created in RCW 47.26.340; and
     (((b))) (g) The remainder to the multimodal transportation account created in RCW 47.66.070.
     (2) The motor vehicle weight fee:
     (a) Must be used for transportation purposes;
     (b) May not be used for the general support of state government; and
     (c) Is imposed to provide funds to mitigate the impact of vehicle loads on the state roads and highways and is separate and distinct from other vehicle license fees. Proceeds from the fee may be used for transportation purposes, or for facilities and activities that reduce the number of vehicles or load weights on the state roads and highways, including passenger rail service.
     (3) The motor home vehicle weight fee imposed under RCW 46.17.365(2) must be deposited in the multimodal transportation account created in RCW 47.66.070.

NEW SECTION.  Sec. 7   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 handled in this state to be used for transportation purposes, including exports of petroleum products to be used for transportation purposes.
     (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 fee collected under this section must be deposited in the state transportation operations and maintenance account created in section 8 of this act.
     (4) The barrel fee imposed in subsection (1) of this section:
     (a) May be used only for maintaining and operating the state transportation system, which includes twenty-five million dollars annually for storm water retrofit projects;
     (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 to propel watercraft on the waters of the state;
     (iii) A source of fuel to propel aircraft;
     (iv) A source of fuel for the delivery of petroleum product; and
     (v) An ingredient or component of substances used to operate, build, repair, improve, or maintain public roads.

NEW SECTION.  Sec. 8   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 barrel fee created in section 7 of this act and revenues received from the fee imposed under RCW 46.37.420(3) 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.

NEW SECTION.  Sec. 9   A new section is added to chapter 46.68 RCW to read as follows:
     The transit service mitigation account is created in the state treasury. All revenues received under RCW 46.68.415(1)(c) must be deposited in the account. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used only for the grants provided under section 11 of this act.

Sec. 10   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 transit service mitigation 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. 11   A new section is added to chapter 47.66 RCW to read as follows:
     (1) The department shall establish a transit service mitigation grant program. The purpose of the grant program is to provide grants to public transit agencies to preserve transit service necessary to provide passengers access to jobs, schools, and other destinations. The grants must be based on factors that ensure mobility and connectivity, including the number of passengers served, miles driven, and hours operated. The department shall submit a prioritized list of all projects requesting funding to the legislature by December 1st of each year, beginning in 2012.
     (2) The department may establish an advisory committee to carry out the mandates of this section.
     (3) The department must report annually to the transportation committees of the legislature on the status of any grant projects funded by the program created under this section.

Sec. 12   RCW 36.73.065 and 2007 c 329 s 1 are each amended to read as follows:
     (1) Except as provided in subsection (4) of this section, taxes, fees, charges, and tolls may not be imposed by a district without approval of a majority of the voters in the district voting on a proposition at a general or special election. The proposition must include a specific description of the transportation improvement or improvements proposed by the district and the proposed taxes, fees, charges, and the range of tolls imposed by the district to raise revenue to fund the improvement or improvements.
     (2) Voter approval under this section shall be accorded substantial weight regarding the validity of a transportation improvement as defined in RCW 36.73.015.
     (3) A district may not increase any taxes, fees, charges, or range of tolls imposed under this chapter once the taxes, fees, charges, or tolls take effect, unless authorized by the district voters pursuant to RCW 36.73.160.
     (4)(a) A district that includes all the territory within the boundaries of the jurisdiction, or jurisdictions, establishing the district may impose by a majority vote of the governing board of the district the following fees and charges:
     (i) Up to twenty dollars of the vehicle fee authorized in RCW 82.80.140; or
     (ii) A fee or charge in accordance with RCW 36.73.120.
     (b) A district that includes all the territory within the boundaries of the jurisdiction, or jurisdictions, establishing the district may impose by a two-thirds majority vote of the governing board of the district up to forty dollars of the vehicle fee authorized in RCW 82.80.140.
     (c) The vehicle fee authorized in (a) of this subsection may only be imposed for a passenger-only ferry transportation improvement if the vehicle fee is first approved by a majority of the voters within the jurisdiction of the district.
     (((c))) (d)(i) A district solely comprised of a city or cities shall not impose the fees or charges identified in (a) of this subsection within one hundred eighty days after July 22, 2007, unless the county in which the city or cities reside, by resolution, declares that it will not impose the fees or charges identified in (a) of this subsection within the one hundred eighty-day period; or
     (ii) A district solely comprised of a city or cities identified in RCW 36.73.020(6)(b) shall not impose the fees or charges until after May 22, 2008, unless the county in which the city or cities reside, by resolution, declares that it will not impose the fees or charges identified in (a) of this subsection through May 22, 2008.
     (5) If the interlocal agreement in RCW 82.80.140(2)(a) cannot be reached, a district that includes only the unincorporated territory of a county may impose by a majority vote of the governing body of the district up to twenty dollars of the vehicle fee authorized in RCW 82.80.140.

NEW SECTION.  Sec. 13   A new section is added to chapter 82.80 RCW to read as follows:
     (1) A county may impose a local surcharge of not more than one percent of the value on vehicles registered to a person residing within the county. No surcharge may be imposed on vehicles licensed under RCW 46.17.355, except vehicles with an unladen weight of six thousand pounds or less, RCW 46.16A.425, 46.17.335, or 46.17.350(1)(c).
     (2) Counties imposing a tax under this section shall contract, before the effective date of the resolution or ordinance imposing a surcharge, administration and collection to the department of licensing, as appropriate, which shall deduct an amount, as provided by contract, for administration and collection expenses incurred by the department.
     (3) Counties imposing a tax under this section must use the funds for transportation projects, which may include investment in new or existing highways of statewide significance, principal arterials of regional significance, high capacity transportation, public transportation, and other transportation projects and programs of regional or statewide significance, including transportation demand management. Projects may also include the operation, preservation, and maintenance of these facilities or programs.
     (4) Counties imposing a tax under this section must negotiate an interlocal agreement with cities and the transit agency within the county to distribute a portion of the revenues to the cities and transit agency. The interlocal agreement must require that the county distribute a maximum of twenty dollars per vehicle in each city to the cities within the county for the cities to use on local road operations and maintenance needs. The interlocal agreement must be effective prior to the imposition of the tax. The interlocal agreement is effective when approved by the county and sixty percent of the cities representing seventy-five percent of the population of the cities within the county in which the countywide fee is collected.

Sec. 14   RCW 46.37.420 and 2007 c 140 s 2 are each amended to read as follows:
     (1) It is unlawful to operate a vehicle upon the public highways of this state unless it is completely equipped with pneumatic rubber tires except vehicles equipped with temporary-use spare tires that meet federal standards that are installed and used in accordance with the manufacturer's instructions.
     (2) No tire on a vehicle moved on a highway may have on its periphery any block, flange, cleat, or spike or any other protuberance of any material other than rubber which projects beyond the tread of the traction surface of the tire, except that it is permissible to use farm machinery equipped with pneumatic tires or solid rubber tracks having protuberances that will not injure the highway, and except also that it is permissible to use tire chains or metal studs imbedded within the tire of reasonable proportions and of a type conforming to rules adopted by the state patrol, upon any vehicle when required for safety because of snow, ice, or other conditions tending to cause a vehicle to skid. It is unlawful to use metal studs imbedded within the tire between April 1st and November 1st, except that a vehicle may be equipped year-round with tires that have retractable studs if: (a) The studs retract pneumatically or mechanically to below the wear bar of the tire when not in use; and (b) the retractable studs are engaged only between November 1st and April 1st. Retractable studs may be made of metal or other material and are not subject to the lightweight stud weight requirements under RCW 46.04.272. The state department of transportation may, from time to time, determine additional periods in which the use of tires with metal studs imbedded therein is lawful.
     (3)(a) In addition to the fee required under RCW 70.95.510, there is a five dollar fee on the sale of each new tire sold that contains studs or is pinned for studs. The fee imposed under this subsection must be paid by the buyer to the seller, and each seller shall collect from the buyer the full amount of the fee. The fee collected from the buyer by the seller must be paid to the department of revenue in accordance with RCW 82.32.045. The fee collected must be deposited in the state transportation operations and maintenance account created under section 8 of this act.
     (b) The department of revenue must collect on the business excise tax return from the businesses selling new tires that contain studs or are pinned for studs at retail the number of tires sold and the fee imposed under this subsection. The department of revenue must incorporate into the agency's audit cycle a reconciliation of the number of tires sold and the amount of revenue collected by the businesses selling new tires that contain studs or are pinned for studs.
     (c) All other applicable provisions of chapter 82.32 RCW have full force and application with respect to the fee imposed under this subsection.
     (d) The department of revenue must administer this subsection.
     (e) For the purposes of this subsection, "a new tire that contains studs" means a tire that is manufactured for vehicle purposes and contains metal studs imbedded by the tire manufacturer or retailer, and does not include bicycle tires or retreaded vehicle tires.
     (4) The state department of transportation and local authorities in their respective jurisdictions may issue special permits authorizing the operation upon a highway of traction engines or tractors having movable tracks with transverse corrugations upon the periphery of the movable tracks or farm tractors or other farm machinery, the operation of which upon a highway would otherwise be prohibited under this section.
     (((4))) (5) Tires with metal studs imbedded therein may be used between November 1st and April 1st upon school buses and fire department vehicles, any law or regulation to the contrary notwithstanding.

NEW SECTION.  Sec. 15   A new section is added to chapter 46.37 RCW to read as follows:
     (1) The fee imposed under RCW 46.37.420(3), to be collected by the seller, must be held in trust by the seller until paid to the department of revenue, and any seller who appropriates or converts the fee collected to his or her own use, or to any use other than the payment of the fee, to the extent that the money required to be collected is not available for payment on the due date is guilty of a gross misdemeanor.
     (2) If any seller fails to collect the fee imposed under RCW 46.37.420(3) or, having collected the fee, fails to pay the fee to the department of revenue by the date due, whether such failure is the result of the seller's own acts or the result of acts or conditions beyond the seller's control, the seller is personally liable to the state for the amount of the fee.
     (3) The amount of the fee imposed under RCW 46.37.420(3), until paid by the buyer to the seller or to the department of revenue, constitutes a debt from the buyer to the seller. Any seller who fails or refuses to collect the fee as required with the intent to violate RCW 46.37.420(3) or to gain some advantage or benefit, either direct or indirect, and any buyer who refuses to pay the fee due under RCW 46.37.420(3), is guilty of a misdemeanor.

Sec. 16   RCW 82.08.036 and 1989 c 431 s 45 are each amended to read as follows:
     The tax levied by RCW 82.08.020 ((shall)) does not apply to consideration: (1) Received as core deposits or credits in a retail or wholesale sale; ((or)) (2) received or collected upon the sale of a new replacement vehicle tire as a fee imposed under RCW 70.95.510; or (3) received or collected upon the sale of a new studded tire or tire pinned for studs as a fee imposed under RCW 46.37.420(3). For purposes of this section, the term "core deposits or credits" means the amount representing the value of returnable products such as batteries, starters, brakes, and other products with returnable value added for the purpose of recycling or remanufacturing.

NEW SECTION.  Sec. 17   A new section is added to chapter 46.17 RCW to read as follows:
     (1) Before accepting an application for an annual vehicle registration renewal for an electric vehicle that uses propulsion units powered to a significant extent by electricity, the department, county auditor or other agent, or subagent appointed by the director must require the applicant to pay a one hundred dollar roadway impact fee in addition to any other fees and taxes required by law. The one hundred dollar fee is due at the time of annual vehicle registration renewal.
     (2) This section only applies to:
     (a) A vehicle that is designed to have the capability to drive at a speed of more than thirty-five miles per hour; and
     (b) An annual vehicle registration renewal that is due on or after March 1, 2013.
     (3)(a) The roadway impact fee under this section is imposed to provide funds to mitigate the impact of vehicles on state roads and highways, and is separate and distinct from other vehicle license fees. Proceeds from the fee must be deposited in the motor vehicle fund created in RCW 46.68.070, subject to (b) of this subsection. One million five hundred thousand dollars of the revenue generated by the fee must be used by the department of transportation to conduct a pilot project to test the administrative and technical feasibility of a mileage-based user fee system for electric vehicles, to conclude by July 1, 2015. The department shall collaborate with the department of licensing, department of revenue, office of financial management, and the transportation committees of the legislature on the research and development of the pilot project, and with the Oregon department of transportation on technical and implementation aspects of a mileage-based user fee system. The department of transportation must issue a final report on the feasibility of a mileage-based user fee system and any authorization necessary to apply such a system to electric vehicles by July 1, 2015.
     (b) If after July 1, 2013, the amount of proceeds from the fee collected under this section exceeds one million dollars, the excess amount over one million dollars must be deposited as follows:
     (i) Seventy percent to the motor vehicle fund created in RCW 46.68.070;
     (ii) Fifteen percent to the transportation improvement account created in RCW 47.26.084; and
     (iii) Fifteen percent to the rural arterial trust account created in RCW 36.79.020.

NEW SECTION.  Sec. 18   Section 17 of this act expires on the effective date of legislation enacted by the legislature that imposes a vehicle miles traveled fee or tax.

NEW SECTION.  Sec. 19   The department of licensing must provide written notice of the expiration date of section 17 of this act to affected parties, the chief clerk of the house of representatives, the secretary of the senate, the office of the code reviser, and others as deemed appropriate by the department.

NEW SECTION.  Sec. 20   This act takes effect October 1, 2012.