(1)(a) The Puget Sound taxpayer accountability account is created in the state treasury. Moneys in the account may be spent only after appropriation. Expenditures from the account may only be used for distribution to or appropriation for contracted services in counties where a portion of the county is within the boundaries of a regional transit authority that includes a county with a population of one million five hundred thousand or more. Counties and contracted service providers may use distributions from the account only ((for educational services)) to improve educational outcomes in early learning, K-12, and higher education including, but not limited to, for ((youths))facilities and programs for children and youth that are low-income, homeless, or in foster care, or other vulnerable populations; and for the purposes in subsection (2) of this section. ((Counties))Entities receiving distributions under this section must track all expenditures and uses of the funds. To the greatest extent practicable, the expenditures of the counties must follow the requirements of any transportation subarea equity element used by the regional transit authority.

(3)(a) Except as provided in (b) of this subsection, beginning September 1, 2017, and by the last day of September, December, March, and June of each year thereafter, the state treasurer ((shall))must distribute moneys deposited in the Puget Sound taxpayer accountability account to counties for which a portion of the county is within the boundaries of a regional transit authority that includes a county with a population of one million five hundred thousand. The treasurer must make the distribution to the counties on the relative basis of that transit authority's population that lives within the respective counties.

(b) If a county has not adopted a sales and use tax under RCW 82.14.460 before July 1, 2019, then in lieu of distributing to the county under (a) of this subsection the legislature may appropriate the distribution attributable to that county to the department of commerce for expenditure in that county under a contract with a nonprofit community service organization. The contract must be for services that will improve educational outcomes as described in subsection (1) of this section and the contractor must have broad experience in administering grants and contracts for education-related services in the county. The legislature may also appropriate a portion of that distribution to the department of commerce for expenditure as capital facilities grants in that county for purposes of subsection (1) of this section, subject to the matching and oversight requirements of RCW 43.63A.125 (2)(c), (5), and (6).