HOUSE BILL REPORT

HB 1606

As Reported by House Committee On:

Transportation

Title: An act relating to requiring transportation benefit districts to hold public hearings prior to imposing fees or charges by a vote of the governing board.

Brief Description: Requiring transportation benefit districts to hold public hearings prior to imposing fees or charges by a vote of the governing board.

Sponsors: Representatives Pike, Tarleton, Orcutt, Stambaugh, Harmsworth, Gregerson and Hargrove.

Brief History:

Committee Activity:

Transportation: 2/6/17, 2/8/17 [DP].

Majority Report: Do pass. Signed by 24 members: Representatives Clibborn, Chair; Farrell, Vice Chair; Fey, Vice Chair; Wylie, Vice Chair; Orcutt, Ranking Minority Member; Hargrove, Assistant Ranking Minority Member; Harmsworth, Assistant Ranking Minority Member; Chapman, Gregerson, Hayes, Irwin, Lovick, McBride, Morris, Ortiz-Self, Pellicciotti, Pike, Riccelli, Rodne, Shea, Stambaugh, Tarleton, Van Werven and Young.

Staff: David Munnecke (786-7315).

Background:

Transportation Benefit Districts, in General.

A transportation benefit district (TBD or district) is a quasi-municipal corporation and independent taxing authority that may be established by a county or city for the purpose of acquiring, constructing, improving, providing, and funding transportation improvements within the district.

When establishing the TBD's area, the county or city proposing to create the TBD may only include other jurisdictions through interlocal agreements. The TBD may include areas within more than one county, city, port district, county transportation authority, or public transportation benefit area. A TBD may be comprised of less than the entire area within each participating jurisdiction.

Revenue Sources.

A TBD has independent taxing authority to implement the following revenue measures, all of which are subject to voter approval:

• a local sales and use tax of up to 0.2 percent;

• a local annual vehicle fee of up to $100 on vehicle license renewals, $50 of which may be imposed without voter approval;

• excess property taxes, for a period of up to one year; and

• tolls, subject to legislative authorization if on state routes and approval by the Washington State Transportation Commission if only affecting state routes.

A TBD may impose the following revenue measures without voter approval through a majority vote of the governing body:

• transportation impact fees on commercial and industrial development; and

• except for passenger-only ferry improvements, up to $50 in local annual vehicle fees, in stages, if the TBD includes all the territory within the boundaries of the jurisdiction(s) establishing the TBD and certain other timing and notice requirements are met.

Public Hearings.

A legislative authority proposing to establish, modify the boundaries of, or dissolve a TBD is required to hold a public hearing after providing the required notice. In certain cases, a TBD must also hold a public hearing prior to expanding either the functions of the TBD or the transportation improvements to be provided or funded by the TBD.

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Summary of Bill:

A TBD is required to hold a public hearing prior to imposing a fee or charge by a vote of the governing board.

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Appropriation: None.

Fiscal Note: Requested on February 5, 2017.

Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.

Staff Summary of Public Testimony:

(In support) A TBD has the authority to raise fees without a vote of the people, but it should be required to hold a public hearing first. This bill adds five words to the statute to put this requirement in place.

(Opposed) None.

Persons Testifying: Representative Pike, prime sponsor.

Persons Signed In To Testify But Not Testifying: None.