FINAL BILL REPORT

SHB 1825

PARTIAL VETO

                                   C 43 L 90

BYHouse Committee on Transportation (originally sponsored by Representatives R. Fisher, Wood, Walk, Nelson, G. Fisher, Day, Hankins, Walker, Cantwell, Todd, Heavey, Winsley, Pruitt, Wang, Prentice, R. King, Scott, Crane and Fraser)

Changing provisions relating to high capacity transportation systems.

House Committe on Transportation

Senate Committee on Transportation

SYNOPSIS AS ENACTED

BACKGROUND:

Since 1970, the total miles of rail line in Washington have declined from 5,200 to 3,400.  More than 1,000 miles of track were abandoned in the 1980s when federal law eased railroad abandonment procedures.  Many of these abandoned rail lines served rural areas and carried primarily agricultural commodities.  The abandonment of rail service has resulted in increased use of motor freight carriage on rural county roads and on state highways.

The Legislature has, since 1983, enacted numerous provisions to address the rail freight abandonment issue.  These provisions include authorizing the creation of county rail districts to enable local areas to support rail freight services, authorizing port districts to operate rail services, creating a state Rail Assistance Account to provide financial aid to local rail efforts, and authorizing the Department of Transportation to acquire abandoned rail rights-of-way to enhance the likelihood of the reestablishment of rail services.  These programs, together with federal rail assistance, have provided limited support for retaining rail services.  No state funds have been authorized for these rail assistance or rail preservation programs.

State involvement with rail passenger service has largely been in planning and study efforts.  The state has participated in federal studies for improved rail passenger service in the West Coast corridor, with a major study completed in 1978.  Evaluations of high-speed type systems in Western Washington were done by the Legislative Transportation Committee in the early 1970s and in 1984.  The 1984 study recommended increased efforts to preserve rail rights-of-way for future rail needs, either for high-speed or light rail services.

The Puget Sound Council of Governments and METRO (King County) completed in 1986 a Multi-Corridor Study to assess future needs for improved transportation in the Puget Sound region.  That study recommended that a light rail system be implemented by the year 2020 to serve the region's transportation needs.  Since that report was issued, both agencies have taken steps to accelerate rail planning, with a 1995 project start date.  METRO currently is performing an evaluation of a light rail and a high capacity bus system alternative, and will compare those and other options.  It is anticipated that a proposal to fund and develop a recommended system will be submitted to service area voters in the fall of 1992.  Existing transit agencies in the Puget Sound area have the authority to build and operate rail transit systems.

In 1987, the Legislature created the Rail Development Commission.  This 19-member commission, consisting of local government representatives and private citizens, was directed to develop and recommend to the Legislature a state policy regarding the appropriate state role for rail freight and rail passenger systems.  The commission began its work in 1987 and delivered its final report to the Legislature on December 1, 1988.  That report recommended state policy for rail freight, including the identification of funding levels necessary to assist local efforts and preserve essential rail corridors.  Rail passenger issues addressed included institutional recommendations for development of light rail systems, rights-of-way preservation, and funding for such systems.  The future state role with regard to intercity rail systems was also recommended.

Funding for high occupancy vehicle (HOV) lanes in urban counties is limited.  The Department of Transportation's current plans project development of 150 lane-miles of HOV lanes on state highways in the Puget Sound area, primarily along the interstate system.  Improvements are projected through 1995 but are subject to limitations on funding, primarily federal funding for Interstate-related projects.  Projected costs for the system of HOV lanes, not including I-90, park-and-ride lots, and flyer stops, are about $550-600 million.  Over $100 million has already been expended (not including I-90).  At least $250 million is anticipated in federal funds.  Local facility needs and program approaches are being evaluated through a regional planning effort.

SUMMARY:

A state policy is established regarding rail freight assistance, high capacity transportation planning and development, and intercity passenger system encouragement.  A process to accelerate development of high occupancy vehicle (HOV) lanes is provided.

Rail Freight.  It is declared that it is in the state's interest to preserve certain rail service.  The Department of Transportation (DOT) is directed to supplement its rail freight program to include enhanced data collection and improved technical assistance to state agencies and local interests.  This assistance may include rail line abandonment cost benefit analyses, assistance in forming county and port rail districts, and feasibility studies for rail service continuation.  DOT is directed to monitor the status of the state's light density line system through the State Rail Plan and to seek alternatives to abandonment prior to Interstate Commerce Commission proceedings, where feasible.  Criteria are established for identifying components of the state's essential rail system, including those lines serving major agriculture and forest products area terminals, seaports, power plants, major intermodal service points or hubs, lines used for passenger service, and strategic military rail services.

DOT is directed to preserve rail corridors for future rail service based on certain criteria and when funds are specifically allocated for that purpose.  The essential rail banking account is created for funds allocated to preserving rail corridors.  Money in that account may also be used by the department to provide up to 80 percent of the funding for loans to first class cities, port districts, and county rail districts to purchase unused rail rights-of-way. Those rights-of-way acquired must have been identified, evaluated,  and analyzed in the State Rail Plan and the rights-of-way must be intended for abandonment or abandoned and be available for acquisition.  Funds for acquisition of any line must have approval of the Legislative Transportation Committee (LTC).

Uses of the essential rail assistance account are expanded to include construction of transloading facilities to increase business on light density lines, to mitigate the impacts of abandonment, or to preserve service along viable light density lines.  First class cities are made eligible for account funds and are authorized to operate transportation systems beyond their corporate limits in the county within which they are located.  The loan period for money in the rail assistance account is extended from 10 to 15 years. State funding must be related to state benefits.

The Department of Revenue, in conjunction with the DOT, is directed to study and report to the LTC by December 1, 1991, on the feasibility of property tax credits for railroads to maintain or improve service on light density lines.  The DOT is directed to evaluate the performance of the state freight rail program at the end of a six-year period and report to the LTC.  An LTC study of issues associated with public and private acquisition of abandoned and rail-banked rail corridors must be completed by December 1, 1990.

High Occupancy Vehicle Lanes.  The need for accelerated development of HOV lanes is recognized, and AA counties and A counties adjoining a class AA county (King, Pierce and Snohomish) are authorized to accelerate the development of that program.  Counties are encouraged to adopt goals for reducing single-occupant vehicles during peak hours.  Counties imposing taxes for HOV lane development are required to develop the programs in conjunction with transit agencies.

Two voter-approved tax sources are authorized in class AA counties and in class A counties adjoining class AA counties to accelerate development of the HOV system:  an employer tax and a motor vehicle excise tax (MVET) surcharge.  Counties are authorized to impose an employer tax of up to $2 per month per employee within the county.  Credits may be granted to employers who adopt agreements to increase vehicle occupancy or provide at least one-half the cost of transit passes.

Class AA counties and class A counties adjoining a class AA county may impose a surcharge of up to 15 percent on the basic state MVET paid on vehicles within the county.  This surcharge does not apply to trucks licensed for over 6,000 pounds.

Funds generated by the employer tax or the MVET surcharge must be used for HOV improvements and programs.  These improvements include transit and carpool lanes and ramps, park-and-ride lots, transit centers, preemption signalization, intersection by-pass structures and ferry loading lanes.  The program includes ridematch and developer ride-share programs.  Funds are to be used for the following priorities:  accelerating HOV lanes on the Interstate system and the state highway system, and HOV lane improvements on local arterials.  Funds may be pledged for bonds until the year 2000.

Money may be used by transit agencies for commuter rail with voter approval. Counties may contract with the Department of Licensing for collection of the MVET and with the Department of Revenue or other appropriate agencies for collection of the employer tax.  Money collected is to be deposited into a newly-created high occupancy vehicle account to be distributed without appropriation.

High Capacity Transportation.  A state policy regarding the development of high capacity transportation (HCT) and commuter rail systems is established and HCT is defined.  The Legislature declares that local jurisdictions should coordinate and be responsible for HCT policy development, program planning, and implementation.  The state's role is to assist those agencies on issues involving rights-of-way, to serve as a contractor for design and construction, to authorize local jurisdictions to finance HCT alternatives through voter-approved tax options, and to provide technical assistance and information.  The Department of Transportation is to carry out those roles but may not operate HCT service.  Local agencies are directed to cooperate in encouraging land uses compatible with HCT development and to improve local land use and transportation planning decisions.

A process is established for implementing HCT assistance in the state.  For areas outside the central Puget Sound region, existing transit agencies are authorized to provide HCT service.  Those agencies are directed to form a Regional Policy Committee with proportional representation based upon population distribution within the designated service area for a proposed system.

For the central Puget Sound region (King, Pierce, and Snohomish counties), public transportation agencies currently authorized to provide rail transit planning and operating services are directed to establish, through interlocal agreements, a Joint Regional Policy Committee with proportional representation.  The membership of the committee is to consist of locally elected officials who serve on transit system boards and a representative from the Department of Transportation.  Interlocal agreements establishing the committee are to be executed within two years.  The Joint Regional Policy Committee is to prepare a regional HCT plan and financing program.  Member transit agencies are directed to present the adopted plan and financing program for voter approval within four years of the execution of the interlocal agreements.  A majority vote is required for approval of the HCT plan and financing program in any service district within each county.

If interlocal agreements are not executed within two years, or if voter approval has not been obtained within four years, the Metropolitan Planning Organization (MPO) of the area is to convene a conference within 180 days.  This conference is to be attended by elected representatives selected by each city and county in class AA counties and in class A counties bordering a class AA county.  The conference is to evaluate the need for developing HCT service in the region and to determine the desirability of a regional approach to such service.  The conference may elect to create a multi-county Interim Regional High Capacity Transportation Authority, whose membership is to be determined by conference members.  The Interim Regional High Capacity Transit Authority shall propose a permanent authority or authorities for voter approval.  Expansion of regional HCT service boundaries is provided for by interlocal agreements among transit agencies.

State and local jurisdictions are encouraged to cooperate with respect to development of park-and-ride facilities and co-development of existing rights-of-way for HCT system development.

The DOT is given responsibility for the Rail Development Commission's activities upon the commission's dissolution on June 30, 1989, and assumes responsibility for administering the Rail Development Account, which is renamed the High Capacity Transportation Account.  The department is to establish an advisory council to assist in the review of requests for HCT account funds.  Account funds may provide up to 80 percent matching assistance for HCT planning efforts and for support of interim HCT authorities.  Criteria for obtaining state funding are established, including conformance with designated MPO regional transportation plans, dedicated local funding, satisfaction of specific planning requirements, and establishment of regional policy committees with proportional representation.

A process for evaluating HCT alternatives is prescribed.  The process is modeled after the alternatives analysis required by the Urban Mass Transportation Administration.  The analysis includes evaluation of a range of transportation options to address transportation needs, including doing nothing, developing low capital and higher capital facilities, and requiring notification of property owners along corridors being evaluated.  An independent project oversight review panel process is established.  This multidisciplinary 10-member expert review panel will be made up of appointees by the governor, secretary of the DOT, and the chair of the LTC.  Consultants to assist the panel are to be employed by the LTC.  Review by a panel is required for any HCT project to utilize new tax sources authorized in this act or which will involve more than $500,000 of HCT account funds.  Commuter rail projects funded with HOV funding sources are subject to panel review.  Project funding must be voter approved.

The DOT, in conjunction with local jurisdictions, is directed to identify transit rights-of-way, to rank those corridors for implementation priority, and to seek to identify intercity rail rights-of-way that may be used for commuter rail service corridors in the future.

Intercity Passenger Rail Service.  The DOT is to coordinate, with local jurisdictions, a program for improving AMTRAK passenger rail service.  The program may include determination of appropriate levels of AMTRAK passenger rail service, implementation of higher train speeds for AMTRAK service, recognition of the potential for higher speed intercity passenger rail service, and identification of existing intercity rail rights-of-way that may be used for public transportation corridors in the future.  The DOT is encouraged to assist local jurisdictions in upgrading AMTRAK depots, to provide for multimodal use.  The DOT is to pursue resumption of AMTRAK service from Seattle to Vancouver, British Columbia, and to study the potential for AMTRAK service along several other corridors in the state.

High Capacity Funding.  Local option taxing authority is provided for planning, construction, and operation of HCT service for any transit agency located in King, Pierce, Snohomish, Thurston, Clark, and Spokane counties.  These local tax options all require voter approval:  1) an employer tax not exceeding $2 per month (preempted by HOV employer tax), 2) a sales and use tax of up to 1 percent, and 3) a local option motor vehicle excise tax of up to 1 percent,  (equal to 1 percent rate before MVET simplification contained in C 42 L 90; trucks over 6,000 pounds are exempt; combined MVET rate for HOV and HCT may not exceed .8 percent and adjoining counties must have a common local option MVET rate).  Bond authority for capital programs funded by these taxes is provided.

VOTES ON FINAL PASSAGE:

      House 64  29

      Senate    36    12 (Senate amended)

      House 66  27 (House concurred)

EFFECTIVE:March 14, 1990

Partial Veto Summary:  The veto removes the section amended by other legislation.  (See VETO MESSAGE)