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5987-S.E AMH TR H2721.1 ESSB 5987 - H COMM AMD By Committee on Transportation Strike everything after the enacting clause and insert the 1 following: 2 "PART I 3 MOTOR VEHICLE AND SPECIAL FUEL TAXES 4 Sec. 101. RCW 82.36.025 and 2007 c 515 s 3 are each amended to 5 read as follows: 6 (1) A motor vehicle fuel tax rate of twenty-three cents per 7 gallon on motor vehicle fuel shall be imposed on motor vehicle fuel 8 licensees, other than motor vehicle fuel distributors. 9 (2) Beginning July 1, 2003, an additional and cumulative motor 10 vehicle fuel tax rate of five cents per gallon on motor vehicle fuel 11 shall be imposed on motor vehicle fuel licensees, other than motor 12 vehicle fuel distributors. This subsection (2) expires when the bonds 13 issued for transportation 2003 projects are retired. 14 (3) Beginning July 1, 2005, an additional and cumulative motor 15 vehicle fuel tax rate of three cents per gallon on motor vehicle fuel 16 shall be imposed on motor vehicle fuel licensees, other than motor 17 vehicle fuel distributors. 18 (4) Beginning July 1, 2006, an additional and cumulative motor 19 vehicle fuel tax rate of three cents per gallon on motor vehicle fuel 20 shall be imposed on motor vehicle fuel licensees, other than motor 21 vehicle fuel distributors. 22 (5) Beginning July 1, 2007, an additional and cumulative motor 23 vehicle fuel tax rate of two cents per gallon on motor vehicle fuel 24 shall be imposed on motor vehicle fuel licensees, other than motor 25 vehicle fuel distributors. 26 (6) Beginning July 1, 2008, an additional and cumulative motor 27 vehicle fuel tax rate of one and one-half cents per gallon on motor 28 vehicle fuel shall be imposed on motor vehicle fuel licensees, other 29 than motor vehicle fuel distributors. 30 (7) Beginning July 1, 2015, an additional and cumulative motor 31 vehicle fuel tax rate of five cents per gallon on motor vehicle fuel 32 Official Print - 1 5987-S.E AMH TR H2721.1

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Page 1: 5 Sec. 101. ESSB 5987 - H COMM AMD 5987-S.E …lawfilesext.leg.wa.gov/biennium/2015-16/Pdf/Amendments... · 2015-04-17 · 5987-S.E AMH TR H2721.1 ESSB 5987 - H COMM AMD By Committee

5987-S.E AMH TR H2721.1

ESSB 5987 - H COMM AMD By Committee on Transportation

Strike everything after the enacting clause and insert the1following:2

"PART I3MOTOR VEHICLE AND SPECIAL FUEL TAXES4

Sec. 101. RCW 82.36.025 and 2007 c 515 s 3 are each amended to5read as follows:6

(1) A motor vehicle fuel tax rate of twenty-three cents per7gallon on motor vehicle fuel shall be imposed on motor vehicle fuel8licensees, other than motor vehicle fuel distributors.9

(2) Beginning July 1, 2003, an additional and cumulative motor10vehicle fuel tax rate of five cents per gallon on motor vehicle fuel11shall be imposed on motor vehicle fuel licensees, other than motor12vehicle fuel distributors. This subsection (2) expires when the bonds13issued for transportation 2003 projects are retired.14

(3) Beginning July 1, 2005, an additional and cumulative motor15vehicle fuel tax rate of three cents per gallon on motor vehicle fuel16shall be imposed on motor vehicle fuel licensees, other than motor17vehicle fuel distributors.18

(4) Beginning July 1, 2006, an additional and cumulative motor19vehicle fuel tax rate of three cents per gallon on motor vehicle fuel20shall be imposed on motor vehicle fuel licensees, other than motor21vehicle fuel distributors.22

(5) Beginning July 1, 2007, an additional and cumulative motor23vehicle fuel tax rate of two cents per gallon on motor vehicle fuel24shall be imposed on motor vehicle fuel licensees, other than motor25vehicle fuel distributors.26

(6) Beginning July 1, 2008, an additional and cumulative motor27vehicle fuel tax rate of one and one-half cents per gallon on motor28vehicle fuel shall be imposed on motor vehicle fuel licensees, other29than motor vehicle fuel distributors.30

(7) Beginning July 1, 2015, an additional and cumulative motor31vehicle fuel tax rate of five cents per gallon on motor vehicle fuel32

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shall be imposed on motor vehicle fuel licensees, other than motor1vehicle fuel distributors.2

Sec. 102. RCW 82.38.030 and 2014 c 216 s 201 are each amended to3read as follows:4

(1) There is levied and imposed upon fuel licensees a tax at the5rate of twenty-three cents per ((each)) gallon of fuel((, measured at6standard pressure and temperature)).7

(2) Beginning July 1, 2003, an additional and cumulative tax rate8of five cents per ((each)) gallon of fuel((, measured at standard9pressure and temperature)) is imposed on fuel licensees. This10subsection (2) expires when the bonds issued for transportation 200311projects are retired.12

(3) Beginning July 1, 2005, an additional and cumulative tax rate13of three cents per ((each)) gallon of fuel((, measured at standard14pressure and temperature)) is imposed on fuel licensees.15

(4) Beginning July 1, 2006, an additional and cumulative tax rate16of three cents per ((each)) gallon of fuel((, measured at standard17pressure and temperature)) is imposed on fuel licensees.18

(5) Beginning July 1, 2007, an additional and cumulative tax rate19of two cents per ((each)) gallon of fuel((, measured at standard20pressure and temperature)) is imposed on fuel licensees.21

(6) Beginning July 1, 2008, an additional and cumulative tax rate22of one and one-half cents per ((each)) gallon of fuel((, measured at23standard pressure and temperature)) is imposed on fuel licensees.24

(7) Beginning July 1, 2015, an additional and cumulative tax rate25of five cents per gallon of fuel is imposed on fuel licensees.26

(8) Taxes are imposed when:27(a) Fuel is removed in this state from a terminal if the fuel is28

removed at the rack unless the removal is by a licensed supplier or29distributor for direct delivery to a destination outside of the30state, or the removal is by a fuel supplier for direct delivery to an31international fuel tax agreement licensee under RCW 82.38.320;32

(b) Fuel is removed in this state from a refinery if either of33the following applies:34

(i) The removal is by bulk transfer and the refiner or the owner35of the fuel immediately before the removal is not a licensed36supplier; or37

(ii) The removal is at the refinery rack unless the removal is to38a licensed supplier or distributor for direct delivery to a39

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destination outside of the state, or the removal is to a licensed1supplier for direct delivery to an international fuel tax agreement2licensee under RCW 82.38.320;3

(c) Fuel enters into this state for sale, consumption, use, or4storage, unless the fuel enters this state for direct delivery to an5international fuel tax agreement licensee under RCW 82.38.320, if6either of the following applies:7

(i) The entry is by bulk transfer and the importer is not a8licensed supplier; or9

(ii) The entry is not by bulk transfer;10(d) Fuel enters this state by means outside the bulk transfer-11

terminal system and is delivered directly to a licensed terminal12unless the owner is a licensed distributor or supplier;13

(e) Fuel is sold or removed in this state to an unlicensed entity14unless there was a prior taxable removal, entry, or sale of the fuel;15

(f) Blended fuel is removed or sold in this state by the blender16of the fuel. The number of gallons of blended fuel subject to tax is17the difference between the total number of gallons of blended fuel18removed or sold and the number of gallons of previously taxed fuel19used to produce the blended fuel;20

(g) Dyed special fuel is used on a highway, as authorized by the21internal revenue code, unless the use is exempt from the fuel tax;22

(h) Dyed special fuel is held for sale, sold, used, or is23intended to be used in violation of this chapter;24

(i) Special fuel purchased by an international fuel tax agreement25licensee under RCW 82.38.320 is used on a highway; and26

(j) Fuel is sold by a licensed fuel supplier to a fuel27distributor or fuel blender and the fuel is not removed from the bulk28transfer-terminal system.29

Sec. 103. RCW 82.38.030 and 2015 c ... s 102 (section 102 of30this act) are each amended to read as follows:31

(1) There is levied and imposed upon fuel licensees a tax at the32rate of twenty-three cents per gallon of fuel.33

(2) Beginning July 1, 2003, an additional and cumulative tax rate34of five cents per gallon of fuel is imposed on fuel licensees. This35subsection (2) expires when the bonds issued for transportation 200336projects are retired.37

(3) Beginning July 1, 2005, an additional and cumulative tax rate38of three cents per gallon of fuel is imposed on fuel licensees.39

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(4) Beginning July 1, 2006, an additional and cumulative tax rate1of three cents per gallon of fuel is imposed on fuel licensees.2

(5) Beginning July 1, 2007, an additional and cumulative tax rate3of two cents per gallon of fuel is imposed on fuel licensees.4

(6) Beginning July 1, 2008, an additional and cumulative tax rate5of one and one-half cents per gallon of fuel is imposed on fuel6licensees.7

(7) Beginning July 1, 2015, an additional and cumulative tax rate8of five cents per gallon of fuel is imposed on fuel licensees.9

(8) Beginning July 1, 2016, an additional and cumulative tax rate10of four and two-tenths cents per gallon of fuel is imposed on fuel11licensees.12

(9) Beginning July 1, 2017, an additional and cumulative tax rate13of two and one-half cents per gallon of fuel is imposed on fuel14licensees.15

(10) Taxes are imposed when:16(a) Fuel is removed in this state from a terminal if the fuel is17

removed at the rack unless the removal is by a licensed supplier or18distributor for direct delivery to a destination outside of the19state, or the removal is by a fuel supplier for direct delivery to an20international fuel tax agreement licensee under RCW 82.38.320;21

(b) Fuel is removed in this state from a refinery if either of22the following applies:23

(i) The removal is by bulk transfer and the refiner or the owner24of the fuel immediately before the removal is not a licensed25supplier; or26

(ii) The removal is at the refinery rack unless the removal is to27a licensed supplier or distributor for direct delivery to a28destination outside of the state, or the removal is to a licensed29supplier for direct delivery to an international fuel tax agreement30licensee under RCW 82.38.320;31

(c) Fuel enters into this state for sale, consumption, use, or32storage, unless the fuel enters this state for direct delivery to an33international fuel tax agreement licensee under RCW 82.38.320, if34either of the following applies:35

(i) The entry is by bulk transfer and the importer is not a36licensed supplier; or37

(ii) The entry is not by bulk transfer;38

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(d) Fuel enters this state by means outside the bulk transfer-1terminal system and is delivered directly to a licensed terminal2unless the owner is a licensed distributor or supplier;3

(e) Fuel is sold or removed in this state to an unlicensed entity4unless there was a prior taxable removal, entry, or sale of the fuel;5

(f) Blended fuel is removed or sold in this state by the blender6of the fuel. The number of gallons of blended fuel subject to tax is7the difference between the total number of gallons of blended fuel8removed or sold and the number of gallons of previously taxed fuel9used to produce the blended fuel;10

(g) Dyed special fuel is used on a highway, as authorized by the11internal revenue code, unless the use is exempt from the fuel tax;12

(h) Dyed special fuel is held for sale, sold, used, or is13intended to be used in violation of this chapter;14

(i) Special fuel purchased by an international fuel tax agreement15licensee under RCW 82.38.320 is used on a highway; and16

(j) Fuel is sold by a licensed fuel supplier to a fuel17distributor or fuel blender and the fuel is not removed from the bulk18transfer-terminal system.19

Sec. 104. RCW 46.68.090 and 2011 c 120 s 4 are each amended to20read as follows:21

(1) All moneys that have accrued or may accrue to the motor22vehicle fund from the motor vehicle fuel tax and special fuel tax23shall be first expended for purposes enumerated in (a) and (b) of24this subsection. The remaining net tax amount shall be distributed25monthly by the state treasurer in accordance with subsections (2)26through (((7))) (8) of this section.27

(a) For payment of refunds of motor vehicle fuel tax and special28fuel tax that has been paid and is refundable as provided by law;29

(b) For payment of amounts to be expended pursuant to30appropriations for the administrative expenses of the offices of31state treasurer, state auditor, and the department of licensing of32the state of Washington in the administration of the motor vehicle33fuel tax and the special fuel tax, which sums shall be distributed34monthly.35

(2) All of the remaining net tax amount collected under RCW3682.36.025(1) and 82.38.030(1) shall be distributed as set forth in37(a) through (j) of this subsection.38

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(a) For distribution to the motor vehicle fund an amount equal to144.387 percent to be expended for highway purposes of the state as2defined in RCW 46.68.130;3

(b) For distribution to the special category C account, hereby4created in the motor vehicle fund, an amount equal to 3.2609 percent5to be expended for special category C projects. Special category C6projects are category C projects that, due to high cost only, will7require bond financing to complete construction.8

The following criteria, listed in order of priority, shall be9used in determining which special category C projects have the10highest priority:11

(i) Accident experience;12(ii) Fatal accident experience;13(iii) Capacity to move people and goods safely and at reasonable14

speeds without undue congestion; and15(iv) Continuity of development of the highway transportation16

network.17Moneys deposited in the special category C account in the motor18

vehicle fund may be used for payment of debt service on bonds the19proceeds of which are used to finance special category C projects20under this subsection (2)(b);21

(c) For distribution to the Puget Sound ferry operations account22in the motor vehicle fund an amount equal to 2.3283 percent;23

(d) For distribution to the Puget Sound capital construction24account in the motor vehicle fund an amount equal to 2.3726 percent;25

(e) For distribution to the transportation improvement account in26the motor vehicle fund an amount equal to 7.5597 percent;27

(f) For distribution to the transportation improvement account in28the motor vehicle fund an amount equal to 5.6739 percent and expended29in accordance with RCW 47.26.086;30

(g) For distribution to the cities and towns from the motor31vehicle fund an amount equal to 10.6961 percent in accordance with32RCW 46.68.110;33

(h) For distribution to the counties from the motor vehicle fund34an amount equal to 19.2287 percent: (i) Out of which there shall be35distributed from time to time, as directed by the department of36transportation, those sums as may be necessary to carry out the37provisions of RCW 47.56.725; and (ii) less any amounts appropriated38to the county road administration board to implement the provisions39of RCW 47.56.725(4), with the balance of such county share to be40

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distributed monthly as the same accrues for distribution in1accordance with RCW 46.68.120;2

(i) For distribution to the county arterial preservation account,3hereby created in the motor vehicle fund an amount equal to 1.95654percent. These funds shall be distributed by the county road5administration board to counties in proportions corresponding to the6number of paved arterial lane miles in the unincorporated area of7each county and shall be used for improvements to sustain the8structural, safety, and operational integrity of county arterials.9The county road administration board shall adopt reasonable rules and10develop policies to implement this program and to assure that a11pavement management system is used;12

(j) For distribution to the rural arterial trust account in the13motor vehicle fund an amount equal to 2.5363 percent and expended in14accordance with RCW 36.79.020.15

(3) The remaining net tax amount collected under RCW 82.36.025(2)16and 82.38.030(2) shall be distributed to the transportation 200317account (nickel account).18

(4) The remaining net tax amount collected under RCW 82.36.025(3)19and 82.38.030(3) shall be distributed as follows:20

(a) 8.3333 percent shall be distributed to the incorporated21cities and towns of the state in accordance with RCW 46.68.110;22

(b) 8.3333 percent shall be distributed to counties of the state23in accordance with RCW 46.68.120; and24

(c) The remainder shall be distributed to the transportation25partnership account created in RCW 46.68.290.26

(5) The remaining net tax amount collected under RCW 82.36.025(4)27and 82.38.030(4) shall be distributed as follows:28

(a) 8.3333 percent shall be distributed to the incorporated29cities and towns of the state in accordance with RCW 46.68.110;30

(b) 8.3333 percent shall be distributed to counties of the state31in accordance with RCW 46.68.120; and32

(c) The remainder shall be distributed to the transportation33partnership account created in RCW 46.68.290.34

(6) The remaining net tax amount collected under RCW 82.36.02535(5) and (6) and 82.38.030 (5) and (6) shall be distributed to the36transportation partnership account created in RCW 46.68.290.37

(7) The remaining net tax amount collected under RCW 82.36.025(7)38and 82.38.030(7) shall be distributed as follows:39

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(a) Ten percent shall be distributed to the incorporated cities1and towns of the state in accordance with RCW 46.68.110;2

(b) Ten percent shall be distributed to counties of the state in3accordance with RCW 46.68.120; and4

(c) The remainder shall be distributed to the connecting5Washington account created in section 106 of this act.6

(8) Nothing in this section or in RCW 46.68.130 may be construed7so as to violate any terms or conditions contained in any highway8construction bond issues now or hereafter authorized by statute and9whose payment is by such statute pledged to be paid from any excise10taxes on ((motor vehicle fuel and special)) fuel((s)).11

Sec. 105. RCW 46.68.090 and 2013 c 225 s 645 are each amended to12read as follows:13

(1) All moneys that have accrued or may accrue to the motor14vehicle fund from the ((motor vehicle fuel tax and special)) fuel tax15must be first expended for purposes enumerated in (a) and (b) of this16subsection. The remaining net tax amount must be distributed monthly17by the state treasurer in accordance with subsections (2) through18(((7))) (8) of this section.19

(a) For payment of refunds of ((motor vehicle fuel tax and20special)) fuel tax that has been paid and is refundable as provided21by law;22

(b) For payment of amounts to be expended pursuant to23appropriations for the administrative expenses of the offices of24state treasurer, state auditor, and the department of licensing of25the state of Washington in the administration of the ((motor vehicle26fuel tax and the special)) fuel tax, which sums must be distributed27monthly.28

(2) All of the remaining net tax amount collected under RCW2982.38.030(1) must be distributed as set forth in (a) through (j) of30this subsection.31

(a) For distribution to the motor vehicle fund an amount equal to3244.387 percent to be expended for highway purposes of the state as33defined in RCW 46.68.130;34

(b)(i) For distribution to the special category C account, hereby35created in the motor vehicle fund, an amount equal to 3.2609 percent36to be expended for special category C projects. Special category C37projects are category C projects that, due to high cost only, will38require bond financing to complete construction.39

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(ii) The following criteria, listed in order of priority, must be1used in determining which special category C projects have the2highest priority:3

(A) Accident experience;4(B) Fatal accident experience;5(C) Capacity to move people and goods safely and at reasonable6

speeds without undue congestion; and7(D) Continuity of development of the highway transportation8

network.9(iii) Moneys deposited in the special category C account in the10

motor vehicle fund may be used for payment of debt service on bonds11the proceeds of which are used to finance special category C projects12under this subsection (2)(b);13

(c) For distribution to the Puget Sound ferry operations account14in the motor vehicle fund an amount equal to 2.3283 percent;15

(d) For distribution to the Puget Sound capital construction16account in the motor vehicle fund an amount equal to 2.3726 percent;17

(e) For distribution to the transportation improvement account in18the motor vehicle fund an amount equal to 7.5597 percent;19

(f) For distribution to the transportation improvement account in20the motor vehicle fund an amount equal to 5.6739 percent and expended21in accordance with RCW 47.26.086;22

(g) For distribution to the cities and towns from the motor23vehicle fund an amount equal to 10.6961 percent in accordance with24RCW 46.68.110;25

(h) For distribution to the counties from the motor vehicle fund26an amount equal to 19.2287 percent: (i) Out of which there must be27distributed from time to time, as directed by the department of28transportation, those sums as may be necessary to carry out the29provisions of RCW 47.56.725; and (ii) less any amounts appropriated30to the county road administration board to implement the provisions31of RCW 47.56.725(4), with the balance of such county share to be32distributed monthly as the same accrues for distribution in33accordance with RCW 46.68.120;34

(i) For distribution to the county arterial preservation account,35hereby created in the motor vehicle fund an amount equal to 1.956536percent. These funds must be distributed by the county road37administration board to counties in proportions corresponding to the38number of paved arterial lane miles in the unincorporated area of39each county and must be used for improvements to sustain the40

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structural, safety, and operational integrity of county arterials.1The county road administration board must adopt reasonable rules and2develop policies to implement this program and to assure that a3pavement management system is used;4

(j) For distribution to the rural arterial trust account in the5motor vehicle fund an amount equal to 2.5363 percent and expended in6accordance with RCW 36.79.020.7

(3) The remaining net tax amount collected under RCW 82.38.030(2)8must be distributed to the transportation 2003 account (nickel9account).10

(4) The remaining net tax amount collected under RCW 82.38.030(3)11must be distributed as follows:12

(a) 8.3333 percent must be distributed to the incorporated cities13and towns of the state in accordance with RCW 46.68.110;14

(b) 8.3333 percent must be distributed to counties of the state15in accordance with RCW 46.68.120; and16

(c) The remainder must be distributed to the transportation17partnership account created in RCW 46.68.290.18

(5) The remaining net tax amount collected under RCW 82.38.030(4)19must be distributed as follows:20

(a) 8.3333 percent must be distributed to the incorporated cities21and towns of the state in accordance with RCW 46.68.110;22

(b) 8.3333 percent must be distributed to counties of the state23in accordance with RCW 46.68.120; and24

(c) The remainder must be distributed to the transportation25partnership account created in RCW 46.68.290.26

(6) The remaining net tax amount collected under RCW 82.38.03027(5) and (6) must be distributed to the transportation partnership28account created in RCW 46.68.290.29

(7) The remaining net tax amount collected under RCW 82.38.030(7)30must be distributed as follows:31

(a) Ten percent must be distributed to the incorporated cities32and towns of the state in accordance with RCW 46.68.110;33

(b) Ten percent must be distributed to counties of the state in34accordance with RCW 46.68.120; and35

(c) The remainder must be distributed to the connecting36Washington account created in section 106 of this act.37

(8) The remaining net tax amount collected under RCW 82.38.03038(8) and (9) must be distributed to the connecting Washington account39created in section 106 of this act.40

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(9) Nothing in this section or in RCW 46.68.130 may be construed1so as to violate any terms or conditions contained in any highway2construction bond issues now or hereafter authorized by statute and3whose payment is by such statute pledged to be paid from any excise4taxes on ((motor vehicle fuel and special)) fuel((s)).5

NEW SECTION. Sec. 106. A new section is added to chapter 46.686RCW to read as follows:7

The connecting Washington account is created in the motor vehicle8fund. Moneys in the account may be spent only after appropriation.9Expenditures from the account must be used only for projects or10improvements identified as connecting Washington projects or11improvements in a transportation appropriations act, including any12principal and interest on bonds authorized for the projects or13improvements.14

Sec. 107. RCW 43.84.092 and 2014 c 112 s 106, 2014 c 74 s 5, and152014 c 32 s 6 are each reenacted and amended to read as follows:16

(1) All earnings of investments of surplus balances in the state17treasury shall be deposited to the treasury income account, which18account is hereby established in the state treasury.19

(2) The treasury income account shall be utilized to pay or20receive funds associated with federal programs as required by the21federal cash management improvement act of 1990. The treasury income22account is subject in all respects to chapter 43.88 RCW, but no23appropriation is required for refunds or allocations of interest24earnings required by the cash management improvement act. Refunds of25interest to the federal treasury required under the cash management26improvement act fall under RCW 43.88.180 and shall not require27appropriation. The office of financial management shall determine the28amounts due to or from the federal government pursuant to the cash29management improvement act. The office of financial management may30direct transfers of funds between accounts as deemed necessary to31implement the provisions of the cash management improvement act, and32this subsection. Refunds or allocations shall occur prior to the33distributions of earnings set forth in subsection (4) of this34section.35

(3) Except for the provisions of RCW 43.84.160, the treasury36income account may be utilized for the payment of purchased banking37services on behalf of treasury funds including, but not limited to,38

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depository, safekeeping, and disbursement functions for the state1treasury and affected state agencies. The treasury income account is2subject in all respects to chapter 43.88 RCW, but no appropriation is3required for payments to financial institutions. Payments shall occur4prior to distribution of earnings set forth in subsection (4) of this5section.6

(4) Monthly, the state treasurer shall distribute the earnings7credited to the treasury income account. The state treasurer shall8credit the general fund with all the earnings credited to the9treasury income account except:10

(a) The following accounts and funds shall receive their11proportionate share of earnings based upon each account's and fund's12average daily balance for the period: The aeronautics account, the13aircraft search and rescue account, the Alaskan Way viaduct14replacement project account, the brownfield redevelopment trust fund15account, the budget stabilization account, the capital vessel16replacement account, the capitol building construction account, the17Cedar River channel construction and operation account, the Central18Washington University capital projects account, the charitable,19educational, penal and reformatory institutions account, the cleanup20settlement account, the Columbia river basin water supply development21account, the Columbia river basin taxable bond water supply22development account, the Columbia river basin water supply revenue23recovery account, the common school construction fund, the community24forest trust account, the connecting Washington account, the county25arterial preservation account, the county criminal justice assistance26account, the deferred compensation administrative account, the27deferred compensation principal account, the department of licensing28services account, the department of retirement systems expense29account, the developmental disabilities community trust account, the30diesel idle reduction account, the drinking water assistance account,31the drinking water assistance administrative account, the drinking32water assistance repayment account, the Eastern Washington University33capital projects account, the Interstate 405 express toll lanes34operations account, the education construction fund, the education35legacy trust account, the election account, the energy freedom36account, the energy recovery act account, the essential rail37assistance account, The Evergreen State College capital projects38account, the federal forest revolving account, the ferry bond39retirement fund, the freight mobility investment account, the freight40

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mobility multimodal account, the grade crossing protective fund, the1public health services account, the high capacity transportation2account, the state higher education construction account, the higher3education construction account, the highway bond retirement fund, the4highway infrastructure account, the highway safety fund, the high5occupancy toll lanes operations account, the hospital safety net6assessment fund, the industrial insurance premium refund account, the7judges' retirement account, the judicial retirement administrative8account, the judicial retirement principal account, the local9leasehold excise tax account, the local real estate excise tax10account, the local sales and use tax account, the marine resources11stewardship trust account, the medical aid account, the mobile home12park relocation fund, the motor vehicle fund, the motorcycle safety13education account, the multimodal transportation account, the14multiuse roadway safety account, the municipal criminal justice15assistance account, the natural resources deposit account, the oyster16reserve land account, the pension funding stabilization account, the17perpetual surveillance and maintenance account, the public employees'18retirement system plan 1 account, the public employees' retirement19system combined plan 2 and plan 3 account, the public facilities20construction loan revolving account beginning July 1, 2004, the21public health supplemental account, the public works assistance22account, the Puget Sound capital construction account, the Puget23Sound ferry operations account, the real estate appraiser commission24account, the recreational vehicle account, the regional mobility25grant program account, the resource management cost account, the26rural arterial trust account, the rural mobility grant program27account, the rural Washington loan fund, the site closure account,28the skilled nursing facility safety net trust fund, the small city29pavement and sidewalk account, the special category C account, the30special wildlife account, the state employees' insurance account, the31state employees' insurance reserve account, the state investment32board expense account, the state investment board commingled trust33fund accounts, the state patrol highway account, the state route34number 520 civil penalties account, the state route number 52035corridor account, the state wildlife account, the supplemental36pension account, the Tacoma Narrows toll bridge account, the37teachers' retirement system plan 1 account, the teachers' retirement38system combined plan 2 and plan 3 account, the tobacco prevention and39control account, the tobacco settlement account, the toll facility40

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bond retirement account, the transportation 2003 account (nickel1account), the transportation equipment fund, the transportation fund,2the transportation improvement account, the transportation3improvement board bond retirement account, the transportation4infrastructure account, the transportation partnership account, the5traumatic brain injury account, the tuition recovery trust fund, the6University of Washington bond retirement fund, the University of7Washington building account, the volunteer firefighters' and reserve8officers' relief and pension principal fund, the volunteer9firefighters' and reserve officers' administrative fund, the10Washington judicial retirement system account, the Washington law11enforcement officers' and firefighters' system plan 1 retirement12account, the Washington law enforcement officers' and firefighters'13system plan 2 retirement account, the Washington public safety14employees' plan 2 retirement account, the Washington school15employees' retirement system combined plan 2 and 3 account, the16Washington state health insurance pool account, the Washington state17patrol retirement account, the Washington State University building18account, the Washington State University bond retirement fund, the19water pollution control revolving administration account, the water20pollution control revolving fund, the Western Washington University21capital projects account, the Yakima integrated plan implementation22account, the Yakima integrated plan implementation revenue recovery23account, and the Yakima integrated plan implementation taxable bond24account. Earnings derived from investing balances of the agricultural25permanent fund, the normal school permanent fund, the permanent26common school fund, the scientific permanent fund, the state27university permanent fund, and the state reclamation revolving28account shall be allocated to their respective beneficiary accounts.29

(b) Any state agency that has independent authority over accounts30or funds not statutorily required to be held in the state treasury31that deposits funds into a fund or account in the state treasury32pursuant to an agreement with the office of the state treasurer shall33receive its proportionate share of earnings based upon each account's34or fund's average daily balance for the period.35

(5) In conformance with Article II, section 37 of the state36Constitution, no treasury accounts or funds shall be allocated37earnings without the specific affirmative directive of this section.38

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Sec. 108. RCW 43.84.092 and 2014 c 112 s 107, 2014 c 74 s 6, and12014 c 32 s 7 are each reenacted and amended to read as follows:2

(1) All earnings of investments of surplus balances in the state3treasury shall be deposited to the treasury income account, which4account is hereby established in the state treasury.5

(2) The treasury income account shall be utilized to pay or6receive funds associated with federal programs as required by the7federal cash management improvement act of 1990. The treasury income8account is subject in all respects to chapter 43.88 RCW, but no9appropriation is required for refunds or allocations of interest10earnings required by the cash management improvement act. Refunds of11interest to the federal treasury required under the cash management12improvement act fall under RCW 43.88.180 and shall not require13appropriation. The office of financial management shall determine the14amounts due to or from the federal government pursuant to the cash15management improvement act. The office of financial management may16direct transfers of funds between accounts as deemed necessary to17implement the provisions of the cash management improvement act, and18this subsection. Refunds or allocations shall occur prior to the19distributions of earnings set forth in subsection (4) of this20section.21

(3) Except for the provisions of RCW 43.84.160, the treasury22income account may be utilized for the payment of purchased banking23services on behalf of treasury funds including, but not limited to,24depository, safekeeping, and disbursement functions for the state25treasury and affected state agencies. The treasury income account is26subject in all respects to chapter 43.88 RCW, but no appropriation is27required for payments to financial institutions. Payments shall occur28prior to distribution of earnings set forth in subsection (4) of this29section.30

(4) Monthly, the state treasurer shall distribute the earnings31credited to the treasury income account. The state treasurer shall32credit the general fund with all the earnings credited to the33treasury income account except:34

(a) The following accounts and funds shall receive their35proportionate share of earnings based upon each account's and fund's36average daily balance for the period: The aeronautics account, the37aircraft search and rescue account, the Alaskan Way viaduct38replacement project account, the brownfield redevelopment trust fund39account, the budget stabilization account, the capital vessel40

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replacement account, the capitol building construction account, the1Cedar River channel construction and operation account, the Central2Washington University capital projects account, the charitable,3educational, penal and reformatory institutions account, the cleanup4settlement account, the Columbia river basin water supply development5account, the Columbia river basin taxable bond water supply6development account, the Columbia river basin water supply revenue7recovery account, the Columbia river crossing project account, the8common school construction fund, the community forest trust account,9the connecting Washington account, the county arterial preservation10account, the county criminal justice assistance account, the deferred11compensation administrative account, the deferred compensation12principal account, the department of licensing services account, the13department of retirement systems expense account, the developmental14disabilities community trust account, the diesel idle reduction15account, the drinking water assistance account, the drinking water16assistance administrative account, the drinking water assistance17repayment account, the Eastern Washington University capital projects18account, the Interstate 405 express toll lanes operations account,19the education construction fund, the education legacy trust account,20the election account, the energy freedom account, the energy recovery21act account, the essential rail assistance account, The Evergreen22State College capital projects account, the federal forest revolving23account, the ferry bond retirement fund, the freight mobility24investment account, the freight mobility multimodal account, the25grade crossing protective fund, the public health services account,26the high capacity transportation account, the state higher education27construction account, the higher education construction account, the28highway bond retirement fund, the highway infrastructure account, the29highway safety fund, the high occupancy toll lanes operations30account, the hospital safety net assessment fund, the industrial31insurance premium refund account, the judges' retirement account, the32judicial retirement administrative account, the judicial retirement33principal account, the local leasehold excise tax account, the local34real estate excise tax account, the local sales and use tax account,35the marine resources stewardship trust account, the medical aid36account, the mobile home park relocation fund, the motor vehicle37fund, the motorcycle safety education account, the multimodal38transportation account, the multiuse roadway safety account, the39municipal criminal justice assistance account, the natural resources40

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deposit account, the oyster reserve land account, the pension funding1stabilization account, the perpetual surveillance and maintenance2account, the public employees' retirement system plan 1 account, the3public employees' retirement system combined plan 2 and plan 34account, the public facilities construction loan revolving account5beginning July 1, 2004, the public health supplemental account, the6public works assistance account, the Puget Sound capital construction7account, the Puget Sound ferry operations account, the real estate8appraiser commission account, the recreational vehicle account, the9regional mobility grant program account, the resource management cost10account, the rural arterial trust account, the rural mobility grant11program account, the rural Washington loan fund, the site closure12account, the skilled nursing facility safety net trust fund, the13small city pavement and sidewalk account, the special category C14account, the special wildlife account, the state employees' insurance15account, the state employees' insurance reserve account, the state16investment board expense account, the state investment board17commingled trust fund accounts, the state patrol highway account, the18state route number 520 civil penalties account, the state route19number 520 corridor account, the state wildlife account, the20supplemental pension account, the Tacoma Narrows toll bridge account,21the teachers' retirement system plan 1 account, the teachers'22retirement system combined plan 2 and plan 3 account, the tobacco23prevention and control account, the tobacco settlement account, the24toll facility bond retirement account, the transportation 200325account (nickel account), the transportation equipment fund, the26transportation fund, the transportation improvement account, the27transportation improvement board bond retirement account, the28transportation infrastructure account, the transportation partnership29account, the traumatic brain injury account, the tuition recovery30trust fund, the University of Washington bond retirement fund, the31University of Washington building account, the volunteer32firefighters' and reserve officers' relief and pension principal33fund, the volunteer firefighters' and reserve officers'34administrative fund, the Washington judicial retirement system35account, the Washington law enforcement officers' and firefighters'36system plan 1 retirement account, the Washington law enforcement37officers' and firefighters' system plan 2 retirement account, the38Washington public safety employees' plan 2 retirement account, the39Washington school employees' retirement system combined plan 2 and 340

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account, the Washington state health insurance pool account, the1Washington state patrol retirement account, the Washington State2University building account, the Washington State University bond3retirement fund, the water pollution control revolving administration4account, the water pollution control revolving fund, the Western5Washington University capital projects account, the Yakima integrated6plan implementation account, the Yakima integrated plan7implementation revenue recovery account, and the Yakima integrated8plan implementation taxable bond account. Earnings derived from9investing balances of the agricultural permanent fund, the normal10school permanent fund, the permanent common school fund, the11scientific permanent fund, the state university permanent fund, and12the state reclamation revolving account shall be allocated to their13respective beneficiary accounts.14

(b) Any state agency that has independent authority over accounts15or funds not statutorily required to be held in the state treasury16that deposits funds into a fund or account in the state treasury17pursuant to an agreement with the office of the state treasurer shall18receive its proportionate share of earnings based upon each account's19or fund's average daily balance for the period.20

(5) In conformance with Article II, section 37 of the state21Constitution, no treasury accounts or funds shall be allocated22earnings without the specific affirmative directive of this section.23

Nonhighway Refunds24

Sec. 109. RCW 46.09.520 and 2010 1st sp.s. c 37 s 936 and 2010 c25161 s 222 are each reenacted and amended to read as follows:26

(1) From time to time, but at least once each year, the state27treasurer shall refund from the motor vehicle fund one percent of the28motor vehicle fuel tax revenues collected under chapter 82.36 RCW,29based on a tax rate of: (a) Nineteen cents per gallon of motor30vehicle fuel from July 1, 2003, through June 30, 2005; (b) twenty31cents per gallon of motor vehicle fuel from July 1, 2005, through32June 30, 2007; (c) twenty-one cents per gallon of motor vehicle fuel33from July 1, 2007, through June 30, 2009; (d) twenty-two cents per34gallon of motor vehicle fuel from July 1, 2009, through June 30,352011; ((and)) (e) twenty-three cents per gallon of motor vehicle fuel36((beginning)) from July 1, 2011, through June 30, 2015; and (f)37twenty-eight cents per gallon of motor vehicle fuel beginning July 1,38

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2015, and thereafter, less proper deductions for refunds and costs of1collection as provided in RCW 46.68.090.2

(2) The treasurer shall place these funds in the general fund as3follows:4

(a) Thirty-six percent shall be credited to the ORV and5nonhighway vehicle account and administered by the department of6natural resources solely for acquisition, planning, development,7maintenance, and management of ORV, nonmotorized, and nonhighway road8recreation facilities, and information programs and maintenance of9nonhighway roads;10

(b) Three and one-half percent shall be credited to the ORV and11nonhighway vehicle account and administered by the department of fish12and wildlife solely for the acquisition, planning, development,13maintenance, and management of ORV, nonmotorized, and nonhighway road14recreation facilities and the maintenance of nonhighway roads;15

(c) Two percent shall be credited to the ORV and nonhighway16vehicle account and administered by the parks and recreation17commission solely for the acquisition, planning, development,18maintenance, and management of ORV, nonmotorized, and nonhighway road19recreation facilities; and20

(d) Fifty-eight and one-half percent shall be credited to the21nonhighway and off-road vehicle activities program account to be22administered by the board for planning, acquisition, development,23maintenance, and management of ORV, nonmotorized, and nonhighway road24recreation facilities and for education, information, and law25enforcement programs. The funds under this subsection shall be26expended in accordance with the following limitations:27

(i) Not more than thirty percent may be expended for education,28information, and law enforcement programs under this chapter;29

(ii) Not less than seventy percent may be expended for ORV,30nonmotorized, and nonhighway road recreation facilities. Except as31provided in (d)(iii) of this subsection, of this amount:32

(A) Not less than thirty percent, together with the funds the33board receives under RCW 46.68.045, may be expended for ORV34recreation facilities;35

(B) Not less than thirty percent may be expended for nonmotorized36recreation facilities. Funds expended under this subsection37(2)(d)(ii)(B) shall be known as Ira Spring outdoor recreation38facilities funds; and39

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(C) Not less than thirty percent may be expended for nonhighway1road recreation facilities;2

(iii) The board may waive the minimum percentage cited in (d)(ii)3of this subsection due to insufficient requests for funds or projects4that score low in the board's project evaluation. Funds remaining5after such a waiver must be allocated in accordance with board6policy.7

(3) On a yearly basis an agency may not, except as provided in8RCW 46.68.045, expend more than ten percent of the funds it receives9under this chapter for general administration expenses incurred in10carrying out this chapter.11

(4) During the 2009-2011 fiscal biennium, the legislature may12appropriate such amounts as reflect the excess fund balance in the13NOVA account to the department of natural resources to install14consistent off-road vehicle signage at department-managed recreation15sites, and to implement the recreation opportunities on department-16managed lands in the Reiter block and Ahtanum state forest, and to17the state parks and recreation commission. The legislature finds that18the appropriation of funds from the NOVA account during the 2009-201119fiscal biennium for maintenance and operation of state parks or to20improve accessibility for boaters and off-road vehicle users at state21parks will benefit boaters and off-road vehicle users and others who22use nonhighway and nonmotorized recreational facilities. The23appropriations under this subsection are not required to follow the24specific distribution specified in subsection (2) of this section.25

Sec. 110. RCW 46.09.520 and 2015 c ... s 109 (section 109 of26this act) and 2013 c 225 s 608 are each reenacted and amended to read27as follows:28

(1) From time to time, but at least once each year, the state29treasurer must refund from the motor vehicle fund one percent of the30motor vehicle fuel tax revenues collected under chapter 82.38 RCW,31based on a tax rate of: (a) Nineteen cents per gallon of motor32vehicle fuel from July 1, 2003, through June 30, 2005; (b) twenty33cents per gallon of motor vehicle fuel from July 1, 2005, through34June 30, 2007; (c) twenty-one cents per gallon of motor vehicle fuel35from July 1, 2007, through June 30, 2009; (d) twenty-two cents per36gallon of motor vehicle fuel from July 1, 2009, through June 30,372011; (e) twenty-three cents per gallon of motor vehicle fuel from38July 1, 2011, through June 30, 2015; ((and)) (f) twenty-eight cents39

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per gallon of motor vehicle fuel ((beginning)) from July 1, 2015,1through June 30, 2016; (g) thirty-two and two-tenths cents per gallon2of motor vehicle fuel from July 1, 2016, through June 30, 2017; and3(h) thirty-four and seven-tenths cents per gallon of motor vehicle4fuel beginning July 1, 2017, and thereafter, less proper deductions5for refunds and costs of collection as provided in RCW 46.68.090.6

(2) The treasurer must place these funds in the general fund as7follows:8

(a) Thirty-six percent must be credited to the ORV and nonhighway9vehicle account and administered by the department of natural10resources solely for acquisition, planning, development, maintenance,11and management of ORV, nonmotorized, and nonhighway road recreation12facilities, and information programs and maintenance of nonhighway13roads;14

(b) Three and one-half percent must be credited to the ORV and15nonhighway vehicle account and administered by the department of fish16and wildlife solely for the acquisition, planning, development,17maintenance, and management of ORV, nonmotorized, and nonhighway road18recreation facilities and the maintenance of nonhighway roads;19

(c) Two percent must be credited to the ORV and nonhighway20vehicle account and administered by the parks and recreation21commission solely for the acquisition, planning, development,22maintenance, and management of ORV, nonmotorized, and nonhighway road23recreation facilities; and24

(d) Fifty-eight and one-half percent must be credited to the25nonhighway and off-road vehicle activities program account to be26administered by the board for planning, acquisition, development,27maintenance, and management of ORV, nonmotorized, and nonhighway road28recreation facilities and for education, information, and law29enforcement programs. The funds under this subsection must be30expended in accordance with the following limitations:31

(i) Not more than thirty percent may be expended for education,32information, and law enforcement programs under this chapter;33

(ii) Not less than seventy percent may be expended for ORV,34nonmotorized, and nonhighway road recreation facilities. Except as35provided in (d)(iii) of this subsection, of this amount:36

(A) Not less than thirty percent, together with the funds the37board receives under RCW 46.68.045, may be expended for ORV38recreation facilities;39

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(B) Not less than thirty percent may be expended for nonmotorized1recreation facilities. Funds expended under this subsection2(2)(d)(ii)(B) are known as Ira Spring outdoor recreation facilities3funds; and4

(C) Not less than thirty percent may be expended for nonhighway5road recreation facilities;6

(iii) The board may waive the minimum percentage cited in (d)(ii)7of this subsection due to insufficient requests for funds or projects8that score low in the board's project evaluation. Funds remaining9after such a waiver must be allocated in accordance with board10policy.11

(3) On a yearly basis an agency may not, except as provided in12RCW 46.68.045, expend more than ten percent of the funds it receives13under this chapter for general administration expenses incurred in14carrying out this chapter.15

(4) During the 2009-2011 fiscal biennium, the legislature may16appropriate such amounts as reflect the excess fund balance in the17NOVA account to the department of natural resources to install18consistent off-road vehicle signage at department-managed recreation19sites, and to implement the recreation opportunities on department-20managed lands in the Reiter block and Ahtanum state forest, and to21the state parks and recreation commission. The legislature finds that22the appropriation of funds from the NOVA account during the 2009-201123fiscal biennium for maintenance and operation of state parks or to24improve accessibility for boaters and off-road vehicle users at state25parks will benefit boaters and off-road vehicle users and others who26use nonhighway and nonmotorized recreational facilities. The27appropriations under this subsection are not required to follow the28specific distribution specified in subsection (2) of this section.29

Sec. 111. RCW 46.10.530 and 2003 c 361 s 408 are each amended to30read as follows:31

From time to time, but at least once each four years, the32department shall determine the amount of moneys paid to it as motor33vehicle fuel tax that is tax on snowmobile fuel. Such determination34shall use one hundred thirty-five gallons as the average yearly fuel35usage per snowmobile, the number of registered snowmobiles during the36calendar year under determination, and a fuel tax rate of: (1)37Nineteen cents per gallon of motor vehicle fuel from July 1, 2003,38through June 30, 2005; (2) twenty cents per gallon of motor vehicle39

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fuel from July 1, 2005, through June 30, 2007; (3) twenty-one cents1per gallon of motor vehicle fuel from July 1, 2007, through June 30,22009; (4) twenty-two cents per gallon of motor vehicle fuel from July31, 2009, through June 30, 2011; ((and)) (5) twenty-three cents per4gallon of motor vehicle fuel ((beginning)) from July 1, 2011, through5June 30, 2015; (6) twenty-eight cents per gallon of motor vehicle6fuel from July 1, 2015, through June 30, 2016; (7) thirty-two and7two-tenths cents per gallon of motor vehicle fuel from July 1, 2016,8through June 30, 2017; and (8) thirty-four and seven-tenths cents per9gallon of motor vehicle fuel beginning July 1, 2017, and thereafter.10

Sec. 112. RCW 79A.25.070 and 2010 c 23 s 3 are each amended to11read as follows:12

Upon expiration of the time limited by RCW 82.36.330 for claiming13of refunds of tax on marine fuel, the state of Washington shall14succeed to the right to such refunds. The director of licensing,15after taking into account past and anticipated claims for refunds16from and deposits to the marine fuel tax refund account, shall17request the state treasurer to transfer monthly from the marine fuel18tax refund account an amount equal to the proportion of the moneys in19the account representing a motor vehicle fuel tax rate of: (1)20Nineteen cents per gallon of motor vehicle fuel from July 1, 2003,21through June 30, 2005; (2) twenty cents per gallon of motor vehicle22fuel from July 1, 2005, through June 30, 2007; (3) twenty-one cents23per gallon of motor vehicle fuel from July 1, 2007, through June 30,242009; (4) twenty-two cents per gallon of motor vehicle fuel from July251, 2009, through June 30, 2011; ((and)) (5) twenty-three cents per26gallon of motor vehicle fuel ((beginning)) from July 1, 2011, through27June 30, 2015; (6) twenty-eight cents per gallon of motor vehicle28fuel from July 1, 2015, through June 30, 2016; (7) thirty-two and29two-tenths cents per gallon of motor vehicle fuel from July 1, 2016,30through June 30, 2017; and (8) thirty-four and seven-tenths cents per31gallon of motor vehicle fuel beginning July 1, 2017, and thereafter,32to the recreation resource account and the remainder to the motor33vehicle fund.34

PART II35FEES36

License Fees By Weight & Freight Project Fee37

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Sec. 201. RCW 46.17.355 and 2011 c 171 s 61 are each amended to1read as follows:2

(1) In lieu of the vehicle license fee required under RCW346.17.350 and before accepting an application for a vehicle4registration for motor vehicles described in RCW 46.16A.455, the5department, county auditor or other agent, or subagent appointed by6the director shall require the applicant, unless specifically exempt,7to pay the following license fee by weight:8 9 WEIGHT SCHEDULE A SCHEDULE B

10 4,000 pounds (($ 38.00)) $ 53.00 (($ 38.00)) $ 53.00

11 6,000 pounds (($ 48.00)) $ 73.00 (($ 48.00)) $ 73.00

12 8,000 pounds (($ 58.00)) $ 93.00 (($ 58.00)) $ 93.00

13 10,000 pounds (($ 60.00)) $ 93.00 (($ 60.00)) $ 93.00

14 12,000 pounds (($ 77.00)) $ 81.00 (($ 77.00)) $ 81.00

15 14,000 pounds $ 88.00 $ 88.00

16 16,000 pounds $ 100.00 $ 100.00

17 18,000 pounds $ 152.00 $ 152.00

18 20,000 pounds $ 169.00 $ 169.00

19 22,000 pounds $ 183.00 $ 183.00

20 24,000 pounds $ 198.00 $ 198.00

21 26,000 pounds $ 209.00 $ 209.00

22 28,000 pounds $ 247.00 $ 247.00

23 30,000 pounds $ 285.00 $ 285.00

24 32,000 pounds $ 344.00 $ 344.00

25 34,000 pounds $ 366.00 $ 366.00

26 36,000 pounds $ 397.00 $ 397.00

27 38,000 pounds $ 436.00 $ 436.00

28 40,000 pounds $ 499.00 $ 499.00

29 42,000 pounds $ 519.00 $ 609.00

30 44,000 pounds $ 530.00 $ 620.00

31 46,000 pounds $ 570.00 $ 660.00

32 48,000 pounds $ 594.00 $ 684.00

33 50,000 pounds $ 645.00 $ 735.00

34 52,000 pounds $ 678.00 $ 768.00

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1 54,000 pounds $ 732.00 $ 822.00

2 56,000 pounds $ 773.00 $ 863.00

3 58,000 pounds $ 804.00 $ 894.00

4 60,000 pounds $ 857.00 $ 947.00

5 62,000 pounds $ 919.00 $ 1,009.00

6 64,000 pounds $ 939.00 $ 1,029.00

7 66,000 pounds $ 1,046.00 $ 1,136.00

8 68,000 pounds $ 1,091.00 $ 1,181.00

9 70,000 pounds $ 1,175.00 $ 1,265.00

10 72,000 pounds $ 1,257.00 $ 1,347.00

11 74,000 pounds $ 1,366.00 $ 1,456.00

12 76,000 pounds $ 1,476.00 $ 1,566.00

13 78,000 pounds $ 1,612.00 $ 1,702.00

14 80,000 pounds $ 1,740.00 $ 1,830.00

15 82,000 pounds $ 1,861.00 $ 1,951.00

16 84,000 pounds $ 1,981.00 $ 2,071.00

17 86,000 pounds $ 2,102.00 $ 2,192.00

18 88,000 pounds $ 2,223.00 $ 2,313.00

19 90,000 pounds $ 2,344.00 $ 2,434.00

20 92,000 pounds $ 2,464.00 $ 2,554.00

21 94,000 pounds $ 2,585.00 $ 2,675.00

22 96,000 pounds $ 2,706.00 $ 2,796.00

23 98,000 pounds $ 2,827.00 $ 2,917.00

24 100,000 pounds $ 2,947.00 $ 3,037.00

25 102,000 pounds $ 3,068.00 $ 3,158.00

26 104,000 pounds $ 3,189.00 $ 3,279.00

27 105,500 pounds $ 3,310.00 $ 3,400.00

(2) Schedule A applies to vehicles either used exclusively for28hauling logs or that do not tow trailers. Schedule B applies to29vehicles that tow trailers and are not covered under Schedule A.30

(3) If the resultant gross weight is not listed in the table31provided in subsection (1) of this section, it must be increased to32the next higher weight.33

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(4) The license fees provided in subsection (1) of this section1and the freight project fee provided in subsection (6) of this2section are in addition to the filing fee required under RCW346.17.005 and any other fee or tax required by law.4

(5) The license fee based on declared gross weight as provided in5subsection (1) of this section must be distributed under RCW646.68.035.7

(6) In addition to the license fee based on declared gross weight8as provided in subsection (1) of this section, the department, county9auditor or other agent, or subagent appointed by the director must10require an applicant with a vehicle with a declared gross weight of11more than 10,000 pounds, unless specifically exempt, to pay a freight12project fee equal to fifteen percent of the license fee provided in13subsection (1) of this section, rounded to the nearest whole dollar,14which must be distributed under RCW 46.68.035.15

(7) Beginning July 1, 2022, in addition to the license fee based16on declared gross weight as provided in subsection (1) of this17section, the department, county auditor or other agent, or subagent18appointed by the director must require an applicant with a vehicle19with a declared gross weight of less than or equal to 12,000 pounds,20unless specifically exempt, to pay an additional weight fee of eight21dollars, which must be distributed under RCW 46.68.035.22

Sec. 202. RCW 46.68.035 and 2010 c 161 s 804 are each amended to23read as follows:24

The director shall forward all proceeds from vehicle license fees25received by the director for vehicles registered under RCW2646.17.350(1) (c) and (k), 46.17.355, and 46.17.400(1)(c) to the state27treasurer to be distributed into accounts according to the following28method:29

(1) 22.36 percent must be deposited into the state patrol highway30account of the motor vehicle fund;31

(2) 1.375 percent must be deposited into the Puget Sound ferry32operations account of the motor vehicle fund;33

(3) 5.237 percent must be deposited into the transportation 200334account (nickel account);35

(4) 11.533 percent must be deposited into the transportation36partnership account created in RCW 46.68.290; and37

(5) The remaining proceeds must be deposited into the motor38vehicle fund, except that up to eight million three hundred thousand39

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dollars must be deposited into the freight mobility investment1account created in RCW 46.68.300 every July 1st, beginning July 1,22016.3

Passenger Vehicle Weight Fees4

Sec. 203. RCW 46.17.365 and 2010 c 161 s 533 are each amended to5read as follows:6

(1) A person applying for a motor vehicle registration and paying7the vehicle license fee required in RCW 46.17.350(1) (a), (d), (e),8(h), (j), (n), and (o) shall pay a motor vehicle weight fee in9addition to all other fees and taxes required by law. The motor10vehicle weight fee:11

(a) Must be based on the motor vehicle scale weight as follows:12 13 WEIGHT FEE

14 4,000 pounds $ 25.00

15 6,000 pounds $ 45.00

16 8,000 pounds $ 65.00

17 16,000 pounds and over $ 72.00;

(b) ((Is the difference determined by subtracting the vehicle18license fee required in RCW 46.17.350 from the license fee in19Schedule B of RCW 46.17.355, plus two dollars)) If the resultant20motor vehicle scale weight is not listed in the table provided in (a)21of this subsection, must be increased to the next highest weight; and22

(c) Must be distributed under RCW 46.68.415.23(2) A person applying for a motor home vehicle registration24

shall, in lieu of the motor vehicle weight fee required in subsection25(1) of this section, pay a motor home vehicle weight fee of seventy-26five dollars in addition to all other fees and taxes required by law.27The motor home vehicle weight fee must be distributed under RCW2846.68.415.29

(3) Beginning July 1, 2022, in addition to the motor vehicle30weight fee as provided in subsection (1) of this section, the31department, county auditor or other agent, or subagent appointed by32the director must require an applicant to pay an additional weight33fee of eight dollars, which must be distributed to the multimodal34transportation account under RCW 47.66.070.35

(4) The department shall:36

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(a) Rely on motor vehicle empty scale weights provided by vehicle1manufacturers, or other sources defined by the department, to2determine the weight of each motor vehicle; and3

(b) Adopt rules for determining weight for vehicles without4manufacturer empty scale weights.5

NEW SECTION. Sec. 204. Sections 201 and 203 of this act apply6to vehicle registrations that are due or become due on or after July71, 2016.8

Commercial Driver's License Fees9

Sec. 205. RCW 46.25.052 and 2013 c 224 s 5 are each amended to10read as follows:11

(1) The department may issue a CLP to an applicant who is at12least eighteen years of age and holds a valid Washington state13driver's license and who has:14

(a) Submitted an application on a form or in a format provided by15the department;16

(b) Passed the general knowledge examination required for17issuance of a CDL under RCW 46.25.060 for the commercial motor18vehicle classification in which the applicant operates or expects to19operate; and20

(c) Paid the appropriate examination fee or fees and an21application fee of ((ten)) forty dollars.22

(2) A CLP must be marked "commercial learner's permit" or "CLP,"23and must be, to the maximum extent practicable, tamperproof. Other24than a photograph of the applicant, it must include, but not be25limited to, the information required on a CDL under RCW 46.25.080(1).26

(3) The holder of a CLP may drive a commercial motor vehicle on a27highway only when in possession of a valid driver's license and28accompanied by the holder of a valid CDL who has the proper CDL29classification and endorsement or endorsements necessary to operate30the commercial motor vehicle. The CDL holder must at all times be31physically present in the front seat of the vehicle next to the CLP32holder or, in the case of a passenger vehicle, directly behind or in33the first row behind the driver and must have the CLP holder under34observation and direct supervision.35

(4) A CLP may be classified in the same manner as a CDL under RCW3646.25.080(2)(a).37

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(5) CLPs may be issued with only P, S, or N endorsements as1described in RCW 46.25.080(2)(b).2

(a) The holder of a CLP with a P endorsement must have taken and3passed the P endorsement knowledge examination. The holder of a CLP4with a P endorsement is prohibited from operating a commercial motor5vehicle carrying passengers other than authorized employees or6representatives of the department and the federal motor carrier7safety administration, examiners, other trainees, and the CDL holder8accompanying the CLP holder as required under subsection (2) of this9section. The P endorsement must be class specific.10

(b) The holder of a CLP with an S endorsement must have taken and11passed the S endorsement knowledge examination. The holder of a CLP12with an S endorsement is prohibited from operating a school bus with13passengers other than authorized employees or representatives of the14department and the federal motor carrier safety administration,15examiners, other trainees, and the CDL holder accompanying the CLP16holder as required under subsection (2) of this section.17

(c) The holder of a CLP with an N endorsement must have taken and18passed the N endorsement knowledge examination. The holder of a CLP19with an N endorsement may only operate an empty tank vehicle and is20prohibited from operating any tank vehicle that previously contained21hazardous materials and has not been purged of any residue.22

(6) A CLP may be issued with appropriate restrictions as23described in RCW 46.25.080(2)(c). In addition, a CLP may be issued24with the following restrictions:25

(a) "P" restricts the driver from operating a bus with26passengers;27

(b) "X" restricts the driver from operating a tank vehicle that28contains cargo; and29

(c) Any restriction as established by rule of the department.30(7) The holder of a CLP is not authorized to operate a commercial31

motor vehicle transporting hazardous materials.32(8) A CLP may not be issued for a period to exceed one hundred33

eighty days. The department may renew the CLP for one additional one34hundred eighty-day period without requiring the CLP holder to retake35the general and endorsement knowledge examinations.36

(9) The department must transmit the fees collected for CLPs to37the state treasurer for deposit in the highway safety fund.38

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Sec. 206. RCW 46.25.060 and 2013 c 224 s 6 are each amended to1read as follows:2

(1)(a) No person may be issued a commercial driver's license3unless that person:4

(i) Is a resident of this state;5(ii) Has successfully completed a course of instruction in the6

operation of a commercial motor vehicle that has been approved by the7director or has been certified by an employer as having the skills8and training necessary to operate a commercial motor vehicle safely;9

(iii) If he or she does not hold a valid commercial driver's10license of the appropriate classification, has been issued a11commercial learner's permit under RCW 46.25.052; and12

(iv) Has passed a knowledge and skills examination for driving a13commercial motor vehicle that complies with minimum federal standards14established by federal regulation enumerated in 49 C.F.R. Part 383,15subparts F, G, and H, in addition to other requirements imposed by16state law or federal regulation. The department may not allow the17person to take the skills examination during the first fourteen days18after initial issuance of the person's commercial learner's permit.19The examinations must be prescribed and conducted by the department.20

(b) In addition to the fee charged for issuance or renewal of any21license, the applicant shall pay a fee of no more than ((ten))22thirty-five dollars for ((each)) the classified knowledge23examination, classified endorsement knowledge examination, or any24combination of classified license and endorsement knowledge25examinations. The applicant shall pay a fee of no more than ((one))26two hundred fifty dollars for each classified skill examination or27combination of classified skill examinations conducted by the28department.29

(c) The department may authorize a person, including an agency of30this or another state, an employer, a private driver training31facility, or other private institution, or a department, agency, or32instrumentality of local government, to administer the skills33examination specified by this section under the following conditions:34

(i) The examination is the same which would otherwise be35administered by the state;36

(ii) The third party has entered into an agreement with the state37that complies with the requirements of 49 C.F.R. Sec. 383.75; and38

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(iii) The director has adopted rules as to the third party1testing program and the development and justification for fees2charged by any third party.3

(d) If the applicant's primary use of a commercial driver's4license is for any of the following, then the applicant shall pay a5fee of no more than ((seventy-five)) two hundred twenty-five dollars6for ((each)) the classified skill examination or combination of7classified skill examinations whether conducted by the department or8a third-party tester:9

(i) Public benefit not-for-profit corporations that are federally10supported head start programs; or11

(ii) Public benefit not-for-profit corporations that support12early childhood education and assistance programs as described in RCW1343.215.405(2).14

(e) If the applicant's primary use of a commercial driver's15license is to drive a school bus, the applicant shall pay a fee of no16more than one hundred dollars for the classified skill examination or17combination of classified skill examinations conducted by the18department.19

(f) Payment of the examination fees under this subsection20entitles the applicant to take the examination up to two times in21order to pass.22

(2)(a) The department may waive the skills examination and the23requirement for completion of a course of instruction in the24operation of a commercial motor vehicle specified in this section for25a commercial driver's license applicant who meets the requirements of2649 C.F.R. Sec. 383.77.27

(b) An applicant who operates a commercial motor vehicle for28agribusiness purposes is exempt from the course of instruction29completion and employer skills and training certification30requirements under this section. By January 1, 2010, the department31shall submit recommendations regarding the continuance of this32exemption to the transportation committees of the legislature. For33purposes of this subsection (2)(b), "agribusiness" means a private34carrier who in the normal course of business primarily transports:35

(i) Farm machinery, farm equipment, implements of husbandry, farm36supplies, and materials used in farming;37

(ii) Agricultural inputs, such as seed, feed, fertilizer, and38crop protection products;39

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(iii) Unprocessed agricultural commodities, as defined in RCW117.21.020, where such commodities are produced by farmers, ranchers,2vineyardists, or orchardists; or3

(iv) Any combination of (b)(i) through (iii) of this subsection.4The department shall notify the transportation committees of the5

legislature if the federal government takes action affecting the6exemption provided in this subsection (2)(b).7

(3) A commercial driver's license or commercial learner's permit8may not be issued to a person while the person is subject to a9disqualification from driving a commercial motor vehicle, or while10the person's driver's license is suspended, revoked, or canceled in11any state, nor may a commercial driver's license be issued to a12person who has a commercial driver's license issued by any other13state unless the person first surrenders all such licenses, which14must be returned to the issuing state for cancellation.15

Sec. 207. RCW 46.25.100 and 2013 c 224 s 12 are each amended to16read as follows:17

When a person has been disqualified from operating a commercial18motor vehicle, the person is not entitled to have the commercial19driver's license or commercial learner's permit restored until after20the expiration of the appropriate disqualification period required21under RCW 46.25.090 or until the department has received a drug and22alcohol assessment and evidence is presented of satisfactory23participation in or completion of any required drug or alcohol24treatment program for ending the disqualification under RCW2546.25.090(7). After expiration of the appropriate period and upon26payment of a requalification fee of ((twenty)) thirty-five dollars,27or one hundred fifty dollars if the person has been disqualified28under RCW 46.25.090(7), the person may apply for a new, duplicate, or29renewal commercial driver's license or commercial learner's permit as30provided by law. If the person has been disqualified for a period of31one year or more, the person shall demonstrate that he or she meets32the commercial driver's license or commercial learner's permit33qualification standards specified in RCW 46.25.060.34

Enhanced Driver's License & Identicard Fees35

Sec. 208. RCW 46.20.202 and 2007 c 7 s 1 are each amended to36read as follows:37

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(1) The department may enter into a memorandum of understanding1with any federal agency for the purposes of facilitating the crossing2of the border between the state of Washington and the Canadian3province of British Columbia.4

(2) The department may enter into an agreement with the Canadian5province of British Columbia for the purposes of implementing a6border-crossing initiative.7

(3)(a) The department may issue an enhanced driver's license or8identicard for the purposes of crossing the border between the state9of Washington and the Canadian province of British Columbia to an10applicant who provides the department with proof of: United States11citizenship, identity, and state residency. The department shall12continue to offer a standard driver's license and identicard. If the13department chooses to issue an enhanced driver's license, the14department must allow each applicant to choose between a standard15driver's license or identicard, or an enhanced driver's license or16identicard.17

(b) The department shall implement a one-to-many biometric18matching system for the enhanced driver's license or identicard. An19applicant for an enhanced driver's license or identicard shall submit20a biometric identifier as designated by the department. The biometric21identifier must be used solely for the purpose of verifying the22identity of the holders and for any purpose set out in RCW 46.20.037.23Applicants are required to sign a declaration acknowledging their24understanding of the one-to-many biometric match.25

(c) The enhanced driver's license or identicard must include26reasonable security measures to protect the privacy of Washington27state residents, including reasonable safeguards to protect against28unauthorized disclosure of data about Washington state residents. If29the enhanced driver's license or identicard includes a radio30frequency identification chip, or similar technology, the department31shall ensure that the technology is encrypted or otherwise secure32from unauthorized data access.33

(d) The requirements of this subsection are in addition to the34requirements otherwise imposed on applicants for a driver's license35or identicard. The department shall adopt such rules as necessary to36meet the requirements of this subsection. From time to time the37department shall review technological innovations related to the38security of identity cards and amend the rules related to enhanced39driver's licenses and identicards as the director deems consistent40

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with this section and appropriate to protect the privacy of1Washington state residents.2

(e) Notwithstanding RCW 46.20.118, the department may make images3associated with enhanced drivers' licenses or identicards from the4negative file available to United States customs and border agents5for the purposes of verifying identity.6

(4) ((The department may set a fee for the issuance of enhanced7drivers' licenses and identicards under this section.)) The fee for8an enhanced driver's license or enhanced identicard is fifty-four9dollars, which is in addition to the fees for any regular driver's10license or identicard. If the enhanced driver's license or enhanced11identicard is issued, renewed, or extended for a period other than12six years, the fee for each class is nine dollars for each year that13the enhanced driver's license or enhanced identicard is issued,14renewed, or extended.15

Report of Sale & Transitional Ownership Fees16

Sec. 209. RCW 46.17.050 and 2014 c 59 s 3 are each amended to17read as follows:18

(1) Before accepting a report of sale filed under RCW1946.12.650(2), the department, county auditor or other agent, or20subagent appointed by the director shall require the applicant to21pay((:22

(1))) the filing fee under RCW 46.17.005(1), the license plate23technology fee under RCW 46.17.015, ((and)) the license service fee24under RCW 46.17.025 ((to the county auditor or other agent; and25

(2))), and the service fee under RCW 46.17.040(1)(b) ((to the26subagent)).27

(2) Services fees collected under this section by the department28or county auditor or other agent appointed by the director must be29credited to the capital vessel replacement account under RCW3047.60.322.31

Sec. 210. RCW 46.17.060 and 2014 c 59 s 4 are each amended to32read as follows:33

(1) Before accepting a transitional ownership record filed under34RCW 46.12.660, the department, county auditor or other agent, or35subagent appointed by the director shall require the applicant to36pay((:37

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(1))) the filing fee under RCW 46.17.005(1), the license plate1technology fee under RCW 46.17.015, ((and)) the license service fee2under RCW 46.17.025 ((to the county auditor or other agent; and3

(2))), and the service fee under RCW 46.17.040(1)(b) ((to the4subagent)).5

(2) Services fees collected under this section by the department6or county auditor or other agent appointed by the director must be7credited to the capital vessel replacement account under RCW847.60.322.9

Sec. 211. RCW 46.17.100 and 2012 c 74 s 1 are each amended to10read as follows:11

Before accepting an application for a certificate of title as12required in this title, the department, county auditor or other13agent, or subagent appointed by the director shall require the14applicant to pay a fifteen dollar application fee in addition to any15other fees and taxes required by law.16

(1) Five dollars of the certificate of title application fee must17be distributed under RCW 46.68.020.18

(2) ((Ten)) Five dollars of the certificate of title application19fee must be credited to the transportation 2003 account (nickel20account) created in RCW 46.68.280.21

(3) Five dollars of the certificate of title application fee must22be credited to the Puget Sound capital construction account created23in RCW 47.60.505.24

Sec. 212. RCW 47.60.322 and 2014 c 59 s 1 are each amended to25read as follows:26

(((1))) The capital vessel replacement account is created in the27motor vehicle fund. All revenues generated from the vessel28replacement surcharge under RCW 47.60.315(7) and service fees29collected by the department of licensing or county auditor or other30agent appointed by the director under RCW 46.17.040, 46.17.050, and3146.17.060 must be deposited into the account. Moneys in the account32may be spent only after appropriation. Expenditures from the account33may be used only for the construction or purchase of ferry vessels34and to pay the principal and interest on bonds authorized for the35construction or purchase of ferry vessels. However, expenditures from36the account must first be used to support the construction or37

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purchase, including any applicable financing costs, of a ferry vessel1with a carrying capacity of at least one hundred forty-four cars.2

(((2) The state treasurer may not transfer any moneys from the3capital vessel replacement account except to the transportation 20034account (nickel account) for debt service on bonds issued for the5construction of 144-car class ferry vessels.))6

Sec. 213. RCW 46.12.650 and 2010 c 161 s 309 are each amended to7read as follows:8

(1) Releasing interest. An owner releasing interest in a vehicle9shall:10

(a) Sign the release of interest section provided on the11certificate of title or on a release of interest document or form12approved by the department;13

(b) Give the certificate of title or most recent evidence of14ownership to the person gaining the interest in the vehicle;15

(c) Give the person gaining interest in the vehicle an odometer16disclosure statement if one is required; and17

(d) Report the vehicle sold as provided in subsection (2) of this18section.19

(2) Report of sale. An owner shall notify the department, county20auditor or other agent, or subagent appointed by the director in21writing within ((five)) twenty-one business days after a vehicle is22or has been:23

(a) Sold;24(b) Given as a gift to another person;25(c) Traded, either privately or to a dealership;26(d) Donated to charity;27(e) Turned over to an insurance company or wrecking yard; or28(f) Disposed of.29(3) Report of sale properly filed. A report of sale is properly30

filed if it is received by the department, county auditor or other31agent, or subagent appointed by the director within ((five)) twenty-32one business days after the date of sale or transfer and it includes:33

(a) The date of sale or transfer;34(b) The owner's name and address;35(c) The name and address of the person acquiring the vehicle;36(d) The vehicle identification number and license plate number;37

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(e) A date or stamp by the department showing it was received on1or before the ((fifth)) twenty-first business day after the date of2sale or transfer; and3

(f) Payment of the fees required under RCW 46.17.050 ((if the4report of sale is processed by a county auditor or other agent or5subagent appointed by the director)).6

(4) Report of sale - administration. (a) The department shall:7(((a))) (i) Provide or approve reports of sale forms;8(((b))) (ii) Provide a system enabling an owner to submit reports9

of sale electronically;10(((c))) (iii) Immediately update the department's vehicle record11

when a report of sale has been filed;12(((d))) (iv) Provide instructions on release of interest forms13

that allow the seller of a vehicle to release their interest in a14vehicle at the same time a financial institution, as defined in RCW15((30.22.040)) 30A.22.040, releases its lien on the vehicle; and16

(((e))) (v) Send a report to the department of revenue that lists17vehicles for which a report of sale has been received but no transfer18of ownership has taken place. The department shall send the report19once each quarter.20

(b) A report of sale that is received by the department, county21auditor or other agent, or subagent appointed by the director after22the twenty-first day becomes effective on the day it is received by23the department, county auditor or other agent, or subagent appointed24by the director.25

(5)(a) Transferring ownership. A person who has recently acquired26a vehicle by purchase, exchange, gift, lease, inheritance, or legal27action shall apply to the department, county auditor or other agent,28or subagent appointed by the director for a new certificate of title29within fifteen days of delivery of the vehicle. A secured party who30has possession of the certificate of title shall either:31

(i) Apply for a new certificate of title on behalf of the owner32and pay the fee required under RCW 46.17.100; or33

(ii) Provide all required documents to the owner, as long as the34transfer was not a breach of its security agreement, to allow the35owner to apply for a new certificate of title.36

(b) Compliance with this subsection does not affect the rights of37the secured party.38

(6) Certificate of title delivered to secured party. The39certificate of title must be kept by or delivered to the person who40

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becomes the secured party when a security interest is reserved or1created at the time of the transfer of ownership. The parties must2comply with RCW 46.12.675.3

(7) Penalty for late transfer. A person who has recently acquired4a motor vehicle by purchase, exchange, gift, lease, inheritance, or5legal action who does not apply for a new certificate of title within6fifteen calendar days of delivery of the vehicle is charged a7penalty, as described in RCW 46.17.140, when applying for a new8certificate of title. It is a misdemeanor to fail or neglect to apply9for a transfer of ownership within forty-five days after delivery of10the vehicle. The misdemeanor is a single continuing offense for each11day that passes regardless of the number of days that have elapsed12following the forty-five day time period.13

(8) Penalty for late transfer - exceptions. The penalty is not14charged if the delay in application is due to at least one of the15following:16

(a) The department requests additional supporting documents;17(b) The department, county auditor or other agent, or subagent18

fails to perform or is neglectful;19(c) The owner is prevented from applying due to an illness or20

extended hospitalization;21(d) The legal owner fails or neglects to release interest;22(e) The owner did not know of the filing of a report of sale by23

the previous owner and signs an affidavit to the fact; or24(f) The department finds other conditions exist that adequately25

explain the delay.26(9) Review and issue. The department shall review applications27

for certificates of title and issue certificates of title when it has28determined that all applicable provisions of law have been complied29with.30

(10) Rules. The department may adopt rules as necessary to31implement this section.32

PART III33LOCAL REVENUE OPTIONS34

Transportation Benefit Districts35

Sec. 301. RCW 36.73.065 and 2012 c 152 s 3 are each amended to36read as follows:37

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(1) Except as provided in subsection (4) of this section, taxes,1fees, charges, and tolls may not be imposed by a district without2approval of a majority of the voters in the district voting on a3proposition at a general or special election. The proposition must4include a specific description of: (a) The transportation improvement5or improvements proposed by the district; (b) any rebate program6proposed to be established under RCW 36.73.067; and (c) the proposed7taxes, fees, charges, and the range of tolls imposed by the district8to raise revenue to fund the improvement or improvements or rebate9program, as applicable.10

(2) Voter approval under this section must be accorded11substantial weight regarding the validity of a transportation12improvement as defined in RCW 36.73.015.13

(3) A district may not increase any taxes, fees, charges, or14range of tolls imposed or change a rebate program under this chapter15once the taxes, fees, charges, tolls, or rebate program takes effect,16((unless)) except:17

(a) If authorized by the district voters pursuant to RCW1836.73.160 or, with respect to a change in a rebate program, a19material change policy adopted pursuant to RCW 36.73.160 is followed;20or21

(b) For up to fifty dollars of the vehicle fee authorized in RCW2282.80.140 by the governing board of the district if a vehicle fee of23twenty dollars has been imposed for at least twenty-four months.24

(4)(a) A district that includes all the territory within the25boundaries of the jurisdiction, or jurisdictions, establishing the26district may impose by a majority vote of the governing board of the27district the following fees and charges:28

(i) Up to twenty dollars of the vehicle fee authorized in RCW2982.80.140; ((or))30

(ii) Up to fifty dollars of the vehicle fee authorized in RCW3182.80.140 if a vehicle fee of twenty dollars has been imposed for at32least twenty-four months; or33

(iii) A fee or charge in accordance with RCW 36.73.120.34(b) The vehicle fee authorized in (a) of this subsection may only35

be imposed for a passenger-only ferry transportation improvement if36the vehicle fee is first approved by a majority of the voters within37the jurisdiction of the district.38

(c)(i) A district solely comprised of a city or cities ((shall))39may not impose the fees or charges identified in (a) of this40

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subsection within one hundred eighty days after July 22, 2007, unless1the county in which the city or cities reside, by resolution,2declares that it will not impose the fees or charges identified in3(a) of this subsection within the one hundred eighty-day period; or4

(ii) A district solely comprised of a city or cities identified5in RCW 36.73.020(6)(b) may not impose the fees or charges until after6May 22, 2008, unless the county in which the city or cities reside,7by resolution, declares that it will not impose the fees or charges8identified in (a) of this subsection through May 22, 2008.9

(5) If the interlocal agreement in RCW 82.80.140(2)(a) cannot be10reached, a district that includes only the unincorporated territory11of a county may impose by a majority vote of the governing body of12the district up to: (a) Twenty dollars of the vehicle fee authorized13in RCW 82.80.140; or (b) fifty dollars of the vehicle fee authorized14in RCW 82.80.140 if a fee of twenty dollars has been imposed for at15least twenty-four months.16

Sec. 302. RCW 82.80.140 and 2010 c 161 s 917 are each amended to17read as follows:18

(1) Subject to the provisions of RCW 36.73.065, a transportation19benefit district under chapter 36.73 RCW may fix and impose an annual20vehicle fee, not to exceed one hundred dollars per vehicle registered21in the district, for each vehicle subject to vehicle license fees22under RCW 46.17.350(1) (a), (c), (d), (e), (g), (h), (j), or (n)23through (q) and for each vehicle subject to gross weight license fees24under RCW 46.17.355 with a scale weight of six thousand pounds or25less.26

(2)(a) A district that includes all the territory within the27boundaries of the jurisdiction, or jurisdictions, establishing the28district may impose by a majority vote of the governing board of the29district up to twenty dollars of the vehicle fee authorized in30subsection (1) of this section or up to fifty dollars of the vehicle31fee authorized in subsection (1) of this section if a twenty dollar32vehicle fee has been imposed for at least twenty-four months.33

If the district is countywide, the revenues of the fee ((shall))34must be distributed to each city within the ((county)) district by35interlocal agreement. The interlocal agreement is effective when36approved by the ((county)) district and sixty percent of the cities37representing seventy-five percent of the population of the cities38

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within the ((county)) district in which the countywide fee is1collected.2

(b) A district may not impose a fee under this subsection (2):3(i) For a passenger-only ferry transportation improvement unless4

the vehicle fee is first approved by a majority of the voters within5the jurisdiction of the district; or6

(ii) That, if combined with the fees previously imposed by7another district within its boundaries under RCW 36.73.065(4)(a)(i),8exceeds ((twenty)) fifty dollars.9

If a district imposes or increases a fee under this subsection10(2) that, if combined with the fees previously imposed by another11district within its boundaries, exceeds ((twenty)) fifty dollars, the12district shall provide a credit for the previously imposed fees so13that the combined vehicle fee does not exceed ((twenty)) fifty14dollars.15

(3) The department of licensing shall administer and collect the16fee. The department shall deduct a percentage amount, as provided by17contract, not to exceed one percent of the fees collected, for18administration and collection expenses incurred by it. The department19shall remit remaining proceeds to the custody of the state treasurer.20The state treasurer shall distribute the proceeds to the district on21a monthly basis.22

(4) No fee under this section may be collected until six months23after approval under RCW 36.73.065.24

(5) The vehicle fee under this section applies only when renewing25a vehicle registration, and is effective upon the registration26renewal date as provided by the department of licensing.27

(6) The following vehicles are exempt from the fee under this28section:29

(a) Campers, as defined in RCW 46.04.085;30(b) Farm tractors or farm vehicles, as defined in RCW 46.04.18031

and 46.04.181;32(c) Mopeds, as defined in RCW 46.04.304;33(d) Off-road and nonhighway vehicles, as defined in RCW34

46.04.365;35(e) Private use single-axle trailer, as defined in RCW 46.04.422;36(f) Snowmobiles, as defined in RCW 46.04.546; and37(g) Vehicles registered under chapter 46.87 RCW and the38

international registration plan.39

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Sec. 303. RCW 36.73.015 and 2012 c 152 s 1 are each amended to1read as follows:2

The definitions in this section apply throughout this chapter3unless the context clearly requires otherwise.4

(1) "City" means a city or town.5(2) "District" means a transportation benefit district created6

under this chapter.7(3) "Low-income" means household income set by the district8

creating the rebate program that is at or below ((forty-five))9seventy-five percent of the median household income, adjusted for10household size, for the district in which the fees, taxes, or tolls11were imposed.12

(4) "Rebate program" means an optional program established by a13transportation benefit district that includes a city with a14population of five hundred thousand persons or more for the purpose15of providing rebates to low-income individuals for fees, taxes,16and/or tolls imposed by such transportation benefit district for: (a)17Vehicle fees imposed under RCW 36.73.040(3)(b); (b) sales and use18taxes imposed under RCW 36.73.040(3)(a); and/or (c) tolls imposed19under RCW 36.73.040(3)(d).20

(5) "Supplemental transportation improvement" or "supplemental21improvement" means any project, work, or undertaking to provide22public transportation service, in addition to a district's existing23or planned voter-approved transportation improvements, proposed by a24participating city member of the district under RCW 36.73.180.25

(6) "Transportation improvement" means a project contained in the26transportation plan of the state, a regional transportation planning27organization, city, county, or eligible jurisdiction as identified in28RCW 36.73.020(2). A project may include investment in new or existing29highways of statewide significance, principal arterials of regional30significance, high capacity transportation, public transportation,31and other transportation projects and programs of regional or32statewide significance including transportation demand management.33Projects may also include the operation, preservation, and34maintenance of these facilities or programs.35

Community Transit Sales Tax36

Sec. 304. RCW 82.14.045 and 2008 c 86 s 102 are each amended to37read as follows:38

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(1) The legislative body of any city pursuant to RCW 35.92.060,1of any county which has created an unincorporated transportation2benefit area pursuant to RCW 36.57.100 and 36.57.110, of any public3transportation benefit area pursuant to RCW 36.57A.080 and436.57A.090, of any county transportation authority established5pursuant to chapter 36.57 RCW, and of any metropolitan municipal6corporation within a county with a population of one million or more7pursuant to chapter 35.58 RCW, may, by resolution or ordinance for8the sole purpose of providing funds for the operation, maintenance,9or capital needs of public transportation systems or public10transportation limited to persons with special needs under RCW1136.57.130 and 36.57A.180, and in lieu of the excise taxes authorized12by RCW 35.95.040, submit an authorizing proposition to the voters or13include such authorization in a proposition to perform the function14of public transportation or public transportation limited to persons15with special needs under RCW 36.57.130 and 36.57A.180, and if16approved by a majority of persons voting thereon, impose a sales and17use tax in accordance with the terms of this chapter. Where an18authorizing proposition is submitted by a county on behalf of an19unincorporated transportation benefit area, it shall be voted upon by20the voters residing within the boundaries of such unincorporated21transportation benefit area and, if approved, the sales and use tax22shall be imposed only within such area. Notwithstanding any23provisions of this section to the contrary, any county in which a24county public transportation plan has been adopted pursuant to RCW2536.57.070 and the voters of such county have authorized the26imposition of a sales and use tax pursuant to the provisions of27section 10, chapter 167, Laws of 1974 ex. sess., prior to July 1,281975, shall be authorized to fix and impose a sales and use tax as29provided in this section at not to exceed the rate so authorized30without additional approval of the voters of such county as otherwise31required by this section.32

The tax authorized by this section shall be in addition to the33tax authorized by RCW 82.14.030 and shall be collected from those34persons who are taxable by the state under chapters 82.08 and 82.1235RCW upon the occurrence of any taxable event within such city, public36transportation benefit area, county, or metropolitan municipal37corporation as the case may be. The rate of such tax shall be one-38tenth, two-tenths, three-tenths, four-tenths, five-tenths, six-39tenths, seven-tenths, eight-tenths, or nine-tenths of one percent of40

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the selling price (in the case of a sales tax) or value of the1article used (in the case of a use tax). The rate of such tax shall2not exceed the rate authorized by the voters unless such increase3shall be similarly approved.4

(2)(a) In the event a metropolitan municipal corporation imposes5a sales and use tax pursuant to this chapter no city, county which6has created an unincorporated transportation benefit area, public7transportation benefit area authority, or county transportation8authority wholly within such metropolitan municipal corporation shall9be empowered to impose and/or collect taxes under RCW 35.95.040 or10this section, but nothing herein shall prevent such city or county11from imposing sales and use taxes pursuant to any other12authorization.13

(b) In the event a county transportation authority imposes a14sales and use tax under this section, no city, county which has15created an unincorporated transportation benefit area, public16transportation benefit area, or metropolitan municipal corporation,17located within the territory of the authority, shall be empowered to18impose or collect taxes under RCW 35.95.040 or this section.19

(c) In the event a public transportation benefit area imposes a20sales and use tax under this section, no city, county which has21created an unincorporated transportation benefit area, or22metropolitan municipal corporation, located wholly or partly within23the territory of the public transportation benefit area, shall be24empowered to impose or collect taxes under RCW 35.95.040 or this25section.26

(3) The legislative body of a public transportation benefit area27located in a county with either a population of two hundred thirty28thousand or more that borders Puget Sound that also contains two or29more cities with a population greater than forty thousand or a30population of seven hundred thousand or more that also contains a31city with a population of seventy-five thousand or more operating a32transit system pursuant to chapter 35.95 RCW may submit an33authorizing proposition to the voters and, if approved by a majority34of persons voting on the proposition, impose a sales and use tax in35accordance with the terms of this chapter of one-tenth, two-tenths,36or three-tenths of one percent of the selling price, in the case of a37sales tax, or value of the article used, in the case of a use tax, in38addition to the rate in subsection (1) of this section.39

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Passenger-Only Ferry Service Districts1

NEW SECTION. Sec. 305. A new section is added to chapter 36.57A2RCW to read as follows:3

(1) A governing body of a public transportation benefit area,4located in a county that only borders the western side of Puget Sound5with a population of more than two hundred thousand and contains one6or more Washington state ferries terminals, may establish one or more7passenger-only ferry service districts within all or a portion of the8boundaries of the public transportation benefit area establishing the9passenger-only ferry service district. A passenger-only ferry service10district may include all or a portion of a city or town as long as11all or a portion of the city or town boundaries are within the12boundaries of the establishing public transportation benefit area.13The members of the public transportation benefit area governing body14proposing to establish the passenger-only ferry service district,15acting ex officio and independently, constitutes the governing body16of the passenger-only ferry service district.17

(2) A passenger-only ferry service district may establish,18finance, and provide passenger-only ferry service, and associated19services to support and augment passenger-only ferry service20operation, within its boundaries in the same manner as authorized for21public transportation benefit areas under this chapter.22

(3) A passenger-only ferry service district constitutes a body23corporate and possesses all the usual powers of a corporation for24public purposes as well as all other powers that may be conferred by25statute including, but not limited to, the authority to hire26employees, staff, and services, to enter into contracts, to acquire,27hold, and dispose of real and personal property, and to sue and be28sued. Public works contract limits applicable to the public29transportation benefit area that established the passenger-only ferry30service district apply to the district. For purposes of this section,31"passenger-only ferry service district" means a quasi-municipal32corporation and independent taxing authority within the meaning of33Article VII, section 1 of the state Constitution, and a taxing34district within the meaning of Article VII, section 2 of the state35Constitution, created by the legislative body of a public36transportation benefit area.37

(4) Before a passenger-only ferry service district may provide38passenger-only ferry service, it must develop a passenger-only ferry39

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investment plan, including elements: To operate or contract for the1operation of passenger-only ferry services; to purchase, lease, or2rent ferry vessels and dock facilities for the provision of transit3service; and to identify other activities necessary to implement the4plan. The plan must set forth terminal locations to be served,5projected costs of providing services, and revenues to be generated6from tolls, locally collected tax revenues, and other revenue7sources. The plan must ensure that services provided under the plan8are for the benefit of the residents of the passenger-only ferry9service district. The passenger-only ferry service district may use10any of its powers to carry out this purpose, unless otherwise11prohibited by law. In addition, the passenger-only ferry service12district may enter into: Contracts and agreements to operate13passenger-only ferry service; public-private partnerships; and14design-build, general contractor/construction management, or other15alternative procurement processes substantially consistent with16chapter 39.10 RCW.17

(5) A passenger-only ferry service district may be dissolved by a18majority vote of the governing body when all obligations under any19general obligation bonds issued by the passenger-only ferry service20district have been discharged and any other contractual obligations21of the passenger-only ferry service district have either been22discharged or assumed by another governmental entity.23

NEW SECTION. Sec. 306. A new section is added to chapter 36.57A24RCW to read as follows:25

(1) A passenger-only ferry service district may, as part of a26passenger-only ferry investment plan, recommend some or all of the27following revenue sources as provided in this chapter:28

(a) A sales and use tax, as authorized in section 307 of this29act;30

(b) A parking tax, as authorized in section 308 of this act;31(c) Tolls for passengers, packages, and, where applicable,32

parking; and33(d) Charges or licensing fees for advertising, leasing space for34

services to ferry passengers, and other revenue generating35activities.36

(2) Taxes may not be imposed without an affirmative vote of the37majority of the voters within the boundaries of the passenger-only38ferry service district voting on a single ballot proposition to both39

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approve a passenger-only ferry investment plan and to approve taxes1to implement the plan. Revenues from these taxes and fees may be used2only to implement the plan and must be used for the benefit of the3residents of the passenger-only ferry service district. A district4must contract with the department of revenue for the administration5and collection of a sales and use tax as authorized in section 307 of6this act. A district may contract with other appropriate entities for7the administration and collection of any of the other taxes or8charges authorized in this section.9

NEW SECTION. Sec. 307. A new section is added to chapter 82.1410RCW to read as follows:11

(1) Passenger-only ferry service districts providing passenger-12only ferry service as provided in section 305 of this act may submit13an authorizing proposition to the voters and, if approved by a14majority of persons voting, fix and impose a sales and use tax in15accordance with the terms of this chapter, solely for the purpose of16providing passenger-only ferry service and associated services to17support and augment passenger-only ferry service operation.18

(2) The tax authorized under this section is in addition to other19taxes authorized by law and must be collected from those persons who20are taxable by the state under chapters 82.08 and 82.12 RCW upon the21occurrence of a taxable event within the taxing district. The maximum22rate of the tax must be approved by the voters and may not exceed23three-tenths of one percent of the selling price in the case of a24sales tax or value of the article used in the case of a use tax.25

NEW SECTION. Sec. 308. A new section is added to chapter 82.8026RCW to read as follows:27

(1) Subject to the conditions of this section, a passenger-only28ferry service district located in a county with a population of one29million or less as of January 1, 2016, may fix and impose a parking30tax on all persons engaged in a commercial parking business within31its respective jurisdiction.32

(2) In lieu of the tax in subsection (1) of this section, a33passenger-only ferry service district located in a county with a34population of one million or less as of January 1, 2016, may fix and35impose a tax for the act or privilege of parking a motor vehicle in a36facility operated by a commercial parking business. The passenger-37only ferry service district may provide that:38

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(a) The tax is paid by the operator or owner of the motor1vehicle;2

(b) The tax applies to all parking for which a fee is paid,3whether paid or leased, including parking supplied with a lease of4nonresidential space;5

(c) The tax is collected by the operator of the facility and6remitted to the city, county, or passenger-only ferry service7district;8

(d) The tax is a fee per vehicle or is measured by the parking9charge;10

(e) The tax rate varies with zoning or location of the facility,11the duration of the parking, the time of entry or exit, the type or12use of the vehicle, or other reasonable factors; and13

(f) Tax exempt carpools, vehicles with special license plates and14parking placards for persons with disabilities, or government15vehicles are exempt from the tax.16

(3) The rate of the tax under subsection (1) of this section may17be based either upon gross proceeds or the number of vehicle stalls18available for commercial parking use. The rates charged must be19uniform for the same class or type of commercial parking business.20

(4) The passenger-only ferry service district levying the tax21provided for in subsection (1) or (2) of this section may provide for22its payment on a monthly, quarterly, or annual basis.23

(5) The proceeds of the parking tax imposed by a passenger-only24ferry service district under subsection (1) or (2) of this section25must be used as provided in section 306 of this act.26

(6) "Commercial parking business" as used in this section, means27the ownership, lease, operation, or management of a commercial28parking lot in which fees are charged. "Commercial parking lot" means29a covered or uncovered area with stalls for the purpose of parking30motor vehicles.31

NEW SECTION. Sec. 309. A new section is added to chapter 36.57A32RCW to read as follows:33

(1) To carry out the purposes of this chapter, a passenger-only34ferry service district may issue general obligation bonds, not to35exceed an amount, together with any other outstanding nonvoter-36approved general obligation indebtedness, equal to one and one-half37percent of the value of the taxable property within the area, as the38term "value of the taxable property" is defined in RCW 39.36.015. A39

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passenger-only ferry service district may also issue general1obligation bonds for capital purposes only, together with any2outstanding general obligation indebtedness, not to exceed an amount3equal to five percent of the value of the taxable property within the4area, as the term "value of the taxable property" is defined in RCW539.36.015, when authorized by the voters of the area pursuant to6Article VIII, section 6 of the state Constitution.7

(2) General obligation bonds with a maturity in excess of twenty-8five years may not be issued. The governing body of the passenger-9only ferry service district must by resolution determine for each10general obligation bond issue the amount, date, terms, conditions,11denominations, maximum fixed or variable interest rate or rates,12maturity or maturities, redemption rights, registration privileges,13manner of execution, manner of sale, callable provisions, if any,14covenants, and form, including registration as to principal and15interest, registration as to principal only, or bearer. Registration16may include, but not be limited to: (a) A book entry system of17recording the ownership of a bond whether or not physical bonds are18issued, or (b) recording the ownership of a bond together with the19requirement that the transfer of ownership may only be effected by20the surrender of the old bond and either the reissuance of the old21bond or the issuance of a new bond to the new owner. Facsimile22signatures may be used on the bonds and any coupons. Refunding23general obligation bonds may be issued in the same manner as general24obligation bonds are issued.25

(3) Whenever general obligation bonds are issued to fund specific26projects or enterprises that generate revenues, charges, user fees,27or special assessments, the passenger-only ferry service district may28specifically pledge all or a portion of the revenues, charges, user29fees, or special assessments to refund the general obligation bonds.30The passenger-only ferry service district may also pledge any other31revenues that may be available to the district.32

(4) In addition to general obligation bonds, a passenger-only33ferry service district may issue revenue bonds to be issued and sold34in accordance with chapter 39.46 RCW.35

Sound Transit Funding - ST336

Sec. 310. RCW 81.104.140 and 2002 c 56 s 202 are each amended to37read as follows:38

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(1) Agencies authorized to provide high capacity transportation1service, including transit agencies and regional transit authorities,2and regional transportation investment districts acting with the3agreement of an agency, are hereby granted dedicated funding sources4for such systems. These dedicated funding sources, as set forth in5RCW 81.104.150, 81.104.160, ((and)) 81.104.170, and section 313 of6this act, are authorized only for agencies located in (a) each county7with a population of two hundred ten thousand or more and (b) each8county with a population of from one hundred twenty-five thousand to9less than two hundred ten thousand except for those counties that do10not border a county with a population as described under (a) of this11subsection. In any county with a population of one million or more or12in any county having a population of four hundred thousand or more13bordering a county with a population of one million or more, these14funding sources may be imposed only by a regional transit authority15or a regional transportation investment district. Regional16transportation investment districts may, with the approval of the17regional transit authority within its boundaries, impose the taxes18authorized under this chapter, but only upon approval of the voters19and to the extent that the maximum amount of taxes authorized under20this chapter have not been imposed.21

(2) Agencies planning to construct and operate a high capacity22transportation system should also seek other funds, including23federal, state, local, and private sector assistance.24

(3) Funding sources should satisfy each of the following criteria25to the greatest extent possible:26

(a) Acceptability;27(b) Ease of administration;28(c) Equity;29(d) Implementation feasibility;30(e) Revenue reliability; and31(f) Revenue yield.32(4)(a) Agencies participating in regional high capacity33

transportation system development are authorized to levy and collect34the following voter-approved local option funding sources:35

(((a))) (i) Employer tax as provided in RCW 81.104.150, other36than by regional transportation investment districts;37

(((b))) (ii) Special motor vehicle excise tax as provided in RCW3881.104.160; ((and39

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(c))) (iii) Regular property tax as provided in section 313 of1this act; and2

(iv) Sales and use tax as provided in RCW 81.104.170.3(b) Revenues from these taxes may be used only to support those4

purposes prescribed in subsection (10) of this section. Before the5date of an election authorizing an agency to impose any of the taxes6enumerated in this section and authorized in RCW 81.104.150,781.104.160, ((and)) 81.104.170, and section 313 of this act, the8agency must comply with the process prescribed in RCW 81.104.100 (1)9and (2), section 314 of this act, and 81.104.110. No construction on10exclusive right-of-way may occur before the requirements of RCW1181.104.100(3) are met.12

(5) Except for the regular property tax authorized in section 31313of this act, the authorization in subsection (4) of this section14((shall)) may not adversely affect the funding authority of transit15agencies not provided for in this chapter. Local option funds may be16used to support implementation of interlocal agreements with respect17to the establishment of regional high capacity transportation18service. Except when a regional transit authority exists, local19jurisdictions ((shall)) must retain control over moneys generated20within their boundaries, although funds may be commingled with those21generated in other areas for planning, construction, and operation of22high capacity transportation systems as set forth in the agreements.23

(6) Except for the regular property tax authorized in section 31324of this act, agencies planning to construct and operate high capacity25transportation systems may contract with the state for collection and26transference of voter-approved local option revenue.27

(7) Dedicated high capacity transportation funding sources28authorized in RCW 81.104.150, 81.104.160, ((and)) 81.104.170 ((shall29be)), and section 313 of this act are subject to voter approval by a30simple majority. A single ballot proposition may seek approval for31one or more of the authorized taxing sources. The ballot title32((shall)) must reference the document identified in subsection (8) of33this section.34

(8) Agencies ((shall)) must provide to the registered voters in35the area a document describing the systems plan and the financing36plan set forth in RCW 81.104.100. It ((shall)) must also describe the37relationship of the system to regional issues such as development38density at station locations and activity centers, and the39interrelationship of the system to adopted land use and40

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transportation demand management goals within the region. This1document ((shall)) must be provided to the voters at least twenty2days prior to the date of the election.3

(9) For any election in which voter approval is sought for a high4capacity transportation system plan and financing plan pursuant to5RCW 81.104.040, a local voter's pamphlet ((shall)) must be produced6as provided in chapter ((29.81A)) 29A.32 RCW.7

(10)(a) Agencies providing high capacity transportation service8((shall)) must retain responsibility for revenue encumbrance,9disbursement, and bonding. Funds may be used for any purpose relating10to planning, construction, and operation of high capacity11transportation systems and commuter rail systems, personal rapid12transit, busways, bus sets, and entrained and linked buses.13

(b) A regional transit authority that imposes a motor vehicle14excise tax after the effective date of this section, imposes a15property tax, or increases a sales and use tax to more than nine-16tenths of one percent may use the revenues from such taxes or tax17increases to provide regional trails that directly connect to the18systems described in this subsection.19

(c) A regional transit authority that imposes a motor vehicle20excise tax after the effective date of this section, imposes a21property tax, or increases a sales and use tax to more than nine-22tenths of one percent must undertake a process in which the23authority's board formally considers inclusion of the name, Scott24White, in the naming convention associated with either the University25of Washington or Roosevelt stations.26

Sec. 311. RCW 81.104.160 and 2010 c 161 s 903 are each amended27to read as follows:28

(1) Regional transit authorities that include a county with a29population of more than one million five hundred thousand may submit30an authorizing proposition to the voters, and if approved, may levy31and collect an excise tax, at a rate approved by the voters, but not32exceeding eighty one-hundredths of one percent on the value, under33chapter 82.44 RCW, of every motor vehicle owned by a resident of the34taxing district, solely for the purpose of providing high capacity35transportation service. The maximum tax rate under this subsection36does not include a motor vehicle excise tax approved before the37effective date of this section if the tax will terminate on the date38bond debt to which the tax is pledged is repaid. In any county39

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imposing a motor vehicle excise tax surcharge pursuant to RCW181.100.060, the maximum tax rate under this section must be reduced2to a rate equal to eighty one-hundredths of one percent on the value3less the equivalent motor vehicle excise tax rate of the surcharge4imposed pursuant to RCW 81.100.060. This tax does not apply to5vehicles licensed under RCW 46.16A.455 except vehicles with an6unladen weight of six thousand pounds or less, RCW 46.16A.425 or746.17.335(2). Notwithstanding any other provision of this subsection8or chapter 82.44 RCW, a motor vehicle excise tax imposed by a9regional transit authority before or after the effective date of this10section must comply with chapter 82.44 RCW as it existed on January111, 1996, until December 31st of the year in which the regional12transit authority repays bond debt to which a motor vehicle excise13tax was pledged before the effective date of this section. Motor14vehicle taxes collected by regional transit authorities after15December 31st of the year in which a regional transit authority16repays bond debt to which a motor vehicle excise tax was pledged17before the effective date of this section must comply with chapter1882.44 RCW as it existed on the date the tax was approved by voters.19

(2) An agency and high capacity transportation corridor area may20impose a sales and use tax solely for the purpose of providing high21capacity transportation service, in addition to the tax authorized by22RCW 82.14.030, upon retail car rentals within the applicable23jurisdiction that are taxable by the state under chapters 82.08 and2482.12 RCW. The rate of tax ((shall)) may not exceed 2.172 percent.25The rate of tax imposed under this subsection must bear the same26ratio of the 2.172 percent authorized that the rate imposed under27subsection (1) of this section bears to the rate authorized under28subsection (1) of this section. The base of the tax ((shall be)) is29the selling price in the case of a sales tax or the rental value of30the vehicle used in the case of a use tax.31

((Any motor vehicle excise tax previously imposed under the32provisions of RCW 81.104.160(1) shall be repealed, terminated, and33expire on December 5, 2002, except for a motor vehicle excise tax for34which revenues have been contractually pledged to repay a bonded debt35issued before December 5, 2002, as determined by Pierce County et al.36v. State, 159 Wn.2d 16, 148 P.3d 1002 (2006).)) (3) In the case of37bonds that were previously issued, the motor vehicle excise tax must38comply with chapter 82.44 RCW as it existed on January 1, 1996.39

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Sec. 312. RCW 81.104.170 and 2009 c 469 s 106 and 2009 c 280 s 51are each reenacted and amended to read as follows:2

(1) Cities that operate transit systems, county transportation3authorities, metropolitan municipal corporations, public4transportation benefit areas, high capacity transportation corridor5areas, and regional transit authorities may submit an authorizing6proposition to the voters and if approved by a majority of persons7voting, fix and impose a sales and use tax in accordance with the8terms of this chapter, solely for the purpose of providing high9capacity transportation service.10

(2) The tax authorized pursuant to this section ((shall be)) is11in addition to the tax authorized by RCW 82.14.030 and ((shall)) must12be collected from those persons who are taxable by the state pursuant13to chapters 82.08 and 82.12 RCW upon the occurrence of any taxable14event within the taxing district.15

(a) Except for the tax imposed under (b) of this subsection by16regional transit authorities that include a county with a population17of more than one million five hundred thousand, the maximum rate of18such tax ((shall)) must be approved by the voters and ((shall)) may19not exceed one percent of the selling price (in the case of a sales20tax) or value of the article used (in the case of a use tax). The21maximum rate of such tax that may be imposed ((shall)) may not exceed22nine-tenths of one percent in any county that imposes a tax under RCW2382.14.340, or within a regional transit authority if any county24within the authority imposes a tax under RCW 82.14.340.25

(b) The maximum rate of such tax that may be imposed by a26regional transit authority that includes a county with a population27of more than one million five hundred thousand must be approved by28the voters and may not exceed 1.4 percent.29

(3)(a) The exemptions in RCW 82.08.820 and 82.12.820 are for the30state portion of the sales and use tax and do not extend to the tax31authorized in this section.32

(b) The exemptions in RCW 82.08.962 and 82.12.962 are for the33state and local sales and use taxes and include the tax authorized by34this section.35

NEW SECTION. Sec. 313. A new section is added to chapter 81.10436RCW to read as follows:37

(1) A regional transit authority that includes a county with a38population of more than one million five hundred thousand may impose39

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a regular property tax levy in an amount not to exceed twenty-five1cents per thousand dollars of the assessed value of property in the2regional transit authority district in accordance with the terms of3this section.4

(2) Any tax imposed under this section must be used for the5purpose of providing high capacity transportation service, as set6forth in a proposition that is approved by a majority of the7registered voters that vote on the proposition.8

(3) Property taxes imposed under this section may be imposed for9the period of time required to pay the cost to plan, design,10construct, operate, and maintain the transit facilities set forth in11the approved proposition. Property taxes pledged to repay bonds may12be imposed at the pledged amount until the bonds are retired. After13the bonds are retired, property taxes authorized under this section14must be:15

(a) Reduced to the level required to operate and maintain the16regional transit authority's transit facilities; or17

(b) Terminated, unless the taxes have been extended by public18vote.19

(4) The limitations in RCW 84.52.043 do not apply to the tax20authorized in this section.21

(5) The limitation in RCW 84.55.010 does not apply to the first22levy imposed under this section.23

NEW SECTION. Sec. 314. A new section is added to chapter 81.10424RCW to read as follows:25

A regional transit authority that includes a county with a26population of more than one million five hundred thousand must27develop and approve a plan, which meets the requirements of any28transportation subarea equity element utilized by the authority, to29implement a regional transit-oriented development strategy for30diverse, vibrant, mixed-use communities consistent with transit-31oriented development plans approved by any regional transportation32planning organization within the regional transit authority33boundaries. This plan must include the following:34

(1) The authority must agree to contribute a minimum of two35million five hundred dollars to a revolving loan fund to support36affordable housing development for transit-oriented development.37

(2) The authority must provide a first right of refusal, eighty38percent of developable surplus property, and air rights to local39

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governments and nonprofit developers at a discount for long-term1affordable housing, which may be part of a mixed-income or mixed-use2development, provided that a regional transit authority is not3required to comply with a requirement imposed by this subsection if4the requirement is in conflict with the federal requirements5necessary to establish or maintain eligibility for a federal grant6program or would result in a loss of federal funds to the regional7transit authority.8

(3) The authority, when disposing of property for transit-9oriented development, must require a minimum of eighty percent of10housing units to be dedicated to long-term affordable housing for11persons, families, or unrelated persons living together whose12adjusted income is below eighty percent of the median income,13adjusted for household size, for the county where the housing is14located, provided that a regional transit authority is not required15to comply with a requirement imposed by this subsection if the16requirement is in conflict with the federal requirements necessary to17establish or maintain eligibility for a federal grant program or18would result in a loss of federal funds to the regional transit19authority.20

Sec. 315. RCW 84.52.043 and 2011 c 275 s 2 are each amended to21read as follows:22

Within and subject to the limitations imposed by RCW 84.52.050 as23amended, the regular ad valorem tax levies upon real and personal24property by the taxing districts hereafter named are as follows:25

(1) Levies of the senior taxing districts are as follows: (a) The26levy by the state may not exceed three dollars and sixty cents per27thousand dollars of assessed value adjusted to the state equalized28value in accordance with the indicated ratio fixed by the state29department of revenue to be used exclusively for the support of the30common schools; (b) the levy by any county may not exceed one dollar31and eighty cents per thousand dollars of assessed value; (c) the levy32by any road district may not exceed two dollars and twenty-five cents33per thousand dollars of assessed value; and (d) the levy by any city34or town may not exceed three dollars and thirty-seven and one-half35cents per thousand dollars of assessed value. However any county is36hereby authorized to increase its levy from one dollar and eighty37cents to a rate not to exceed two dollars and forty-seven and one-38half cents per thousand dollars of assessed value for general county39

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purposes if the total levies for both the county and any road1district within the county do not exceed four dollars and five cents2per thousand dollars of assessed value, and no other taxing district3has its levy reduced as a result of the increased county levy.4

(2) The aggregate levies of junior taxing districts and senior5taxing districts, other than the state, may not exceed five dollars6and ninety cents per thousand dollars of assessed valuation. The term7"junior taxing districts" includes all taxing districts other than8the state, counties, road districts, cities, towns, port districts,9and public utility districts. The limitations provided in this10subsection do not apply to: (a) Levies at the rates provided by11existing law by or for any port or public utility district; (b)12excess property tax levies authorized in Article VII, section 2 of13the state Constitution; (c) levies for acquiring conservation futures14as authorized under RCW 84.34.230; (d) levies for emergency medical15care or emergency medical services imposed under RCW 84.52.069; (e)16levies to finance affordable housing for very low-income housing17imposed under RCW 84.52.105; (f) the portions of levies by18metropolitan park districts that are protected under RCW 84.52.120;19(g) levies imposed by ferry districts under RCW 36.54.130; (h) levies20for criminal justice purposes under RCW 84.52.135; (i) the portions21of levies by fire protection districts that are protected under RCW2284.52.125; (j) levies by counties for transit-related purposes under23RCW 84.52.140; ((and)) (k) the protected portion of the levies24imposed under RCW 86.15.160 by flood control zone districts in a25county with a population of seven hundred seventy-five thousand or26more that are coextensive with a county; and (l) levies imposed by a27regional transit authority under section 313 of this act.28

Sec. 316. RCW 84.52.043 and 2009 c 551 s 6 are each amended to29read as follows:30

Within and subject to the limitations imposed by RCW 84.52.050 as31amended, the regular ad valorem tax levies upon real and personal32property by the taxing districts hereafter named ((shall be)) are as33follows:34

(1) Levies of the senior taxing districts ((shall be)) are as35follows: (a) The levy by the state ((shall)) may not exceed three36dollars and sixty cents per thousand dollars of assessed value37adjusted to the state equalized value in accordance with the38indicated ratio fixed by the state department of revenue to be used39

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exclusively for the support of the common schools; (b) the levy by1any county ((shall)) may not exceed one dollar and eighty cents per2thousand dollars of assessed value; (c) the levy by any road district3((shall)) may not exceed two dollars and twenty-five cents per4thousand dollars of assessed value; and (d) the levy by any city or5town ((shall)) may not exceed three dollars and thirty-seven and one-6half cents per thousand dollars of assessed value. However any county7is hereby authorized to increase its levy from one dollar and eighty8cents to a rate not to exceed two dollars and forty-seven and one-9half cents per thousand dollars of assessed value for general county10purposes if the total levies for both the county and any road11district within the county do not exceed four dollars and five cents12per thousand dollars of assessed value, and no other taxing district13has its levy reduced as a result of the increased county levy.14

(2) The aggregate levies of junior taxing districts and senior15taxing districts, other than the state, ((shall)) may not exceed five16dollars and ninety cents per thousand dollars of assessed valuation.17The term "junior taxing districts" includes all taxing districts18other than the state, counties, road districts, cities, towns, port19districts, and public utility districts. The limitations provided in20this subsection ((shall)) do not apply to: (a) Levies at the rates21provided by existing law by or for any port or public utility22district; (b) excess property tax levies authorized in Article VII,23section 2 of the state Constitution; (c) levies for acquiring24conservation futures as authorized under RCW 84.34.230; (d) levies25for emergency medical care or emergency medical services imposed26under RCW 84.52.069; (e) levies to finance affordable housing for27very low-income housing imposed under RCW 84.52.105; (f) the portions28of levies by metropolitan park districts that are protected under RCW2984.52.120; (g) levies imposed by ferry districts under RCW 36.54.130;30(h) levies for criminal justice purposes under RCW 84.52.135; (i) the31portions of levies by fire protection districts that are protected32under RCW 84.52.125; ((and)) (j) levies by counties for transit-33related purposes under RCW 84.52.140; and (k) levies imposed by a34regional transit authority under section 313 of this act.35

Sec. 317. RCW 84.52.010 and 2011 1st sp.s. c 28 s 2 are each36amended to read as follows:37

(1) Except as is permitted under RCW 84.55.050, all taxes must be38levied or voted in specific amounts.39

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(2) The rate percent of all taxes for state and county purposes,1and purposes of taxing districts coextensive with the county, must be2determined, calculated and fixed by the county assessors of the3respective counties, within the limitations provided by law, upon the4assessed valuation of the property of the county, as shown by the5completed tax rolls of the county, and the rate percent of all taxes6levied for purposes of taxing districts within any county must be7determined, calculated and fixed by the county assessors of the8respective counties, within the limitations provided by law, upon the9assessed valuation of the property of the taxing districts10respectively.11

(3) When a county assessor finds that the aggregate rate of tax12levy on any property, that is subject to the limitations set forth in13RCW 84.52.043 or 84.52.050, exceeds the limitations provided in14either of these sections, the assessor must recompute and establish a15consolidated levy in the following manner:16

(a) The full certified rates of tax levy for state, county,17county road district, regional transit authority, and city or town18purposes must be extended on the tax rolls in amounts not exceeding19the limitations established by law; however any state levy takes20precedence over all other levies and may not be reduced for any21purpose other than that required by RCW 84.55.010. If, as a result of22the levies imposed under RCW 36.54.130, 84.34.230, 84.52.069,2384.52.105, the portion of the levy by a metropolitan park district24that was protected under RCW 84.52.120, 84.52.125, 84.52.135,2584.52.140, and the protected portion of the levy under RCW 86.15.16026by flood control zone districts in a county with a population of27seven hundred seventy-five thousand or more that are coextensive with28a county, the combined rate of regular property tax levies that are29subject to the one percent limitation exceeds one percent of the true30and fair value of any property, then these levies must be reduced as31follows:32

(i) The portion of the levy by a metropolitan park district that33has a population of less than one hundred fifty thousand and is34located in a county with a population of one million five hundred35thousand or more that is protected under RCW 84.52.120 must be36reduced until the combined rate no longer exceeds one percent of the37true and fair value of any property or must be eliminated;38

(ii) If the combined rate of regular property tax levies that are39subject to the one percent limitation still exceeds one percent of40

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the true and fair value of any property, the protected portion of the1levy imposed under RCW 86.15.160 by a flood control zone district in2a county with a population of seven hundred seventy-five thousand or3more that is coextensive with a county must be reduced until the4combined rate no longer exceeds one percent of the true and fair5value of any property or must be eliminated;6

(iii) If the combined rate of regular property tax levies that7are subject to the one percent limitation still exceeds one percent8of the true and fair value of any property, the levy imposed by a9county under RCW 84.52.140 must be reduced until the combined rate no10longer exceeds one percent of the true and fair value of any property11or must be eliminated;12

(iv) If the combined rate of regular property tax levies that are13subject to the one percent limitation still exceeds one percent of14the true and fair value of any property, the portion of the levy by a15fire protection district that is protected under RCW 84.52.125 must16be reduced until the combined rate no longer exceeds one percent of17the true and fair value of any property or must be eliminated;18

(v) If the combined rate of regular property tax levies that are19subject to the one percent limitation still exceeds one percent of20the true and fair value of any property, the levy imposed by a county21under RCW 84.52.135 must be reduced until the combined rate no longer22exceeds one percent of the true and fair value of any property or23must be eliminated;24

(vi) If the combined rate of regular property tax levies that are25subject to the one percent limitation still exceeds one percent of26the true and fair value of any property, the levy imposed by a ferry27district under RCW 36.54.130 must be reduced until the combined rate28no longer exceeds one percent of the true and fair value of any29property or must be eliminated;30

(vii) If the combined rate of regular property tax levies that31are subject to the one percent limitation still exceeds one percent32of the true and fair value of any property, the portion of the levy33by a metropolitan park district with a population of one hundred34fifty thousand or more that is protected under RCW 84.52.120 must be35reduced until the combined rate no longer exceeds one percent of the36true and fair value of any property or must be eliminated;37

(viii) If the combined rate of regular property tax levies that38are subject to the one percent limitation still exceeds one percent39of the true and fair value of any property, then the levies imposed40

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under RCW 84.34.230, 84.52.105, and any portion of the levy imposed1under RCW 84.52.069 that is in excess of thirty cents per thousand2dollars of assessed value, must be reduced on a pro rata basis until3the combined rate no longer exceeds one percent of the true and fair4value of any property or must be eliminated; and5

(ix) If the combined rate of regular property tax levies that are6subject to the one percent limitation still exceeds one percent of7the true and fair value of any property, then the thirty cents per8thousand dollars of assessed value of tax levy imposed under RCW984.52.069 must be reduced until the combined rate no longer exceeds10one percent of the true and fair value of any property or must be11eliminated.12

(b) The certified rates of tax levy subject to these limitations13by all junior taxing districts imposing taxes on such property must14be reduced or eliminated as follows to bring the consolidated levy of15taxes on such property within the provisions of these limitations:16

(i) First, the certified property tax levy rates of those junior17taxing districts authorized under RCW 36.68.525, 36.69.145,1835.95A.100, and 67.38.130 must be reduced on a pro rata basis or19eliminated;20

(ii) Second, if the consolidated tax levy rate still exceeds21these limitations, the certified property tax levy rates of flood22control zone districts other than the portion of a levy protected23under RCW 84.52.815 must be reduced on a pro rata basis or24eliminated;25

(iii) Third, if the consolidated tax levy rate still exceeds26these limitations, the certified property tax levy rates of all other27junior taxing districts, other than fire protection districts,28regional fire protection service authorities, library districts, the29first fifty cent per thousand dollars of assessed valuation levies30for metropolitan park districts, and the first fifty cent per31thousand dollars of assessed valuation levies for public hospital32districts, must be reduced on a pro rata basis or eliminated;33

(iv) Fourth, if the consolidated tax levy rate still exceeds34these limitations, the first fifty cent per thousand dollars of35assessed valuation levies for metropolitan park districts created on36or after January 1, 2002, must be reduced on a pro rata basis or37eliminated;38

(v) Fifth, if the consolidated tax levy rate still exceeds these39limitations, the certified property tax levy rates authorized to fire40

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protection districts under RCW 52.16.140 and 52.16.160 and regional1fire protection service authorities under RCW 52.26.140(1) (b) and2(c) must be reduced on a pro rata basis or eliminated; and3

(vi) Sixth, if the consolidated tax levy rate still exceeds these4limitations, the certified property tax levy rates authorized for5fire protection districts under RCW 52.16.130, regional fire6protection service authorities under RCW 52.26.140(1)(a), library7districts, metropolitan park districts created before January 1,82002, under their first fifty cent per thousand dollars of assessed9valuation levy, and public hospital districts under their first fifty10cent per thousand dollars of assessed valuation levy, must be reduced11on a pro rata basis or eliminated.12

Sec. 318. RCW 84.52.010 and 2009 c 551 s 7 are each amended to13read as follows:14

(1) Except as is permitted under RCW 84.55.050, all taxes15((shall)) must be levied or voted in specific amounts.16

(2) The rate percent of all taxes for state and county purposes,17and purposes of taxing districts coextensive with the county,18((shall)) must be determined, calculated and fixed by the county19assessors of the respective counties, within the limitations provided20by law, upon the assessed valuation of the property of the county, as21shown by the completed tax rolls of the county, and the rate percent22of all taxes levied for purposes of taxing districts within any23county ((shall)) must be determined, calculated and fixed by the24county assessors of the respective counties, within the limitations25provided by law, upon the assessed valuation of the property of the26taxing districts respectively.27

(3) When a county assessor finds that the aggregate rate of tax28levy on any property, that is subject to the limitations set forth in29RCW 84.52.043 or 84.52.050, exceeds the limitations provided in30either of these sections, the assessor ((shall)) must recompute and31establish a consolidated levy in the following manner:32

(((1))) (a) The full certified rates of tax levy for state,33county, county road district, regional transit authority, and city or34town purposes ((shall)) must be extended on the tax rolls in amounts35not exceeding the limitations established by law; however any state36levy ((shall)) takes precedence over all other levies and ((shall))37may not be reduced for any purpose other than that required by RCW3884.55.010. If, as a result of the levies imposed under RCW 36.54.130,39

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84.34.230, 84.52.069, 84.52.105, the portion of the levy by a1metropolitan park district that was protected under RCW 84.52.120,284.52.125, 84.52.135, and 84.52.140, the combined rate of regular3property tax levies that are subject to the one percent limitation4exceeds one percent of the true and fair value of any property, then5these levies ((shall)) must be reduced as follows:6

(((a))) (i) The levy imposed by a county under RCW 84.52.1407((shall)) must be reduced until the combined rate no longer exceeds8one percent of the true and fair value of any property or ((shall))9must be eliminated;10

(((b))) (ii) If the combined rate of regular property tax levies11that are subject to the one percent limitation still exceeds one12percent of the true and fair value of any property, the portion of13the levy by a fire protection district that is protected under RCW1484.52.125 ((shall)) must be reduced until the combined rate no longer15exceeds one percent of the true and fair value of any property or16((shall)) must be eliminated;17

(((c))) (iii) If the combined rate of regular property tax levies18that are subject to the one percent limitation still exceeds one19percent of the true and fair value of any property, the levy imposed20by a county under RCW 84.52.135 must be reduced until the combined21rate no longer exceeds one percent of the true and fair value of any22property or must be eliminated;23

(((d))) (iv) If the combined rate of regular property tax levies24that are subject to the one percent limitation still exceeds one25percent of the true and fair value of any property, the levy imposed26by a ferry district under RCW 36.54.130 must be reduced until the27combined rate no longer exceeds one percent of the true and fair28value of any property or must be eliminated;29

(((e))) (v) If the combined rate of regular property tax levies30that are subject to the one percent limitation still exceeds one31percent of the true and fair value of any property, the portion of32the levy by a metropolitan park district that is protected under RCW3384.52.120 ((shall)) must be reduced until the combined rate no longer34exceeds one percent of the true and fair value of any property or35((shall)) must be eliminated;36

(((f))) (vi) If the combined rate of regular property tax levies37that are subject to the one percent limitation still exceeds one38percent of the true and fair value of any property, then the levies39imposed under RCW 84.34.230, 84.52.105, and any portion of the levy40

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imposed under RCW 84.52.069 that is in excess of thirty cents per1thousand dollars of assessed value, ((shall)) must be reduced on a2pro rata basis until the combined rate no longer exceeds one percent3of the true and fair value of any property or ((shall)) must be4eliminated; and5

(((g))) (vii) If the combined rate of regular property tax levies6that are subject to the one percent limitation still exceeds one7percent of the true and fair value of any property, then the thirty8cents per thousand dollars of assessed value of tax levy imposed9under RCW 84.52.069 ((shall)) must be reduced until the combined rate10no longer exceeds one percent of the true and fair value of any11property or eliminated.12

(((2))) (b) The certified rates of tax levy subject to these13limitations by all junior taxing districts imposing taxes on such14property ((shall)) must be reduced or eliminated as follows to bring15the consolidated levy of taxes on such property within the provisions16of these limitations:17

(((a))) (i) First, the certified property tax levy rates of those18junior taxing districts authorized under RCW 36.68.525, 36.69.145,1935.95A.100, and 67.38.130 ((shall)) must be reduced on a pro rata20basis or eliminated;21

(((b))) (ii) Second, if the consolidated tax levy rate still22exceeds these limitations, the certified property tax levy rates of23flood control zone districts ((shall)) must be reduced on a pro rata24basis or eliminated;25

(((c))) (iii) Third, if the consolidated tax levy rate still26exceeds these limitations, the certified property tax levy rates of27all other junior taxing districts, other than fire protection28districts, regional fire protection service authorities, library29districts, the first fifty cent per thousand dollars of assessed30valuation levies for metropolitan park districts, and the first fifty31cent per thousand dollars of assessed valuation levies for public32hospital districts, ((shall)) must be reduced on a pro rata basis or33eliminated;34

(((d))) (iv) Fourth, if the consolidated tax levy rate still35exceeds these limitations, the first fifty cent per thousand dollars36of assessed valuation levies for metropolitan park districts created37on or after January 1, 2002, ((shall)) must be reduced on a pro rata38basis or eliminated;39

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(((e))) (v) Fifth, if the consolidated tax levy rate still1exceeds these limitations, the certified property tax levy rates2authorized to fire protection districts under RCW 52.16.140 and352.16.160 and regional fire protection service authorities under RCW452.26.140(1) (b) and (c) ((shall)) must be reduced on a pro rata5basis or eliminated; and6

(((f))) (vi) Sixth, if the consolidated tax levy rate still7exceeds these limitations, the certified property tax levy rates8authorized for fire protection districts under RCW 52.16.130,9regional fire protection service authorities under RCW1052.26.140(1)(a), library districts, metropolitan park districts11created before January 1, 2002, under their first fifty cent per12thousand dollars of assessed valuation levy, and public hospital13districts under their first fifty cent per thousand dollars of14assessed valuation levy, ((shall)) must be reduced on a pro rata15basis or eliminated.16

Sec. 319. RCW 84.04.120 and 1999 c 153 s 69 are each amended to17read as follows:18

"Taxing district" ((shall be held and construed to mean and19include)) means the state and any county, city, town, port district,20school district, road district, metropolitan park district, regional21transit authority, water-sewer district, or other municipal22corporation, now or hereafter existing, having the power or23authorized by law to impose burdens upon property within the district24in proportion to the value thereof, for the purpose of obtaining25revenue for public purposes, as distinguished from municipal26corporations authorized to impose burdens, or for which burdens may27be imposed, for such purposes, upon property in proportion to the28benefits accruing thereto.29

Sec. 320. RCW 81.104.180 and 2009 c 280 s 6 are each amended to30read as follows:31

Cities that operate transit systems, county transportation32authorities, metropolitan municipal corporations, public33transportation benefit areas, high capacity transportation corridor34areas, and regional transit authorities are authorized to pledge35revenues from the employer tax authorized by RCW 81.104.150, the36taxes authorized by RCW 81.104.160, ((and)) the sales and use tax37authorized by RCW 81.104.170, and the property tax authorized by38

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section 313 of this act, to retire bonds issued solely for the1purpose of providing high capacity transportation service.2

Sec. 321. RCW 81.112.050 and 2010 c 19 s 3 are each amended to3read as follows:4

(1) At the time of formation, the area to be included within the5boundary of the authority shall be that area set forth in the system6plan adopted by the joint regional policy committee. Prior to7submitting the system and financing plan to the voters, the authority8may make adjustments to the boundaries as deemed appropriate but must9assure that, to the extent possible, the boundaries: (a) Include the10largest-population urban growth area designated by each county under11chapter 36.70A RCW; and (b) follow election precinct boundaries. If a12portion of any city is determined to be within the service area, the13entire city must be included within the boundaries of the authority.14Subsequent to formation, when territory is annexed to a city located15within the boundaries of the authority, the territory is16simultaneously included within the boundaries of the authority and17subject to all taxes and other liabilities and obligations applicable18within the city with respect to the authority as provided in RCW1935.13.500 and 35A.14.475, subject to RCW 84.09.030 and 82.14.055, and20notwithstanding any other provision of law.21

(2) After voters within the authority boundaries have approved22the system and financing plan, elections to add areas contiguous to23the authority boundaries may be called by resolution of the regional24transit authority, after consultation with affected transit agencies25and with the concurrence of the legislative authority of the city or26town if the area is incorporated, or with the concurrence of the27county legislative authority if the area is unincorporated. Only28those areas that would benefit from the services provided by the29authority may be included and services or projects proposed for the30area must be consistent with the regional transportation plan. The31election may include a single ballot proposition providing for32annexation to the authority boundaries and imposition of the taxes at33rates already imposed within the authority boundaries, subject to RCW3484.09.030 and 82.14.055.35

(((3) Upon receipt of a resolution requesting exclusion from the36boundaries of the authority from a city whose municipal boundaries37cross the boundaries of an authority and thereby result in only a38portion of the city being subject to local option taxes imposed by39

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the authority under chapters 81.104 and 81.112 RCW in order to1implement a high capacity transit plan, and where the vote to approve2the city's incorporation occurred simultaneously with an election3approving the local option taxes, then upon a two-thirds majority4vote of the governing board of the authority, the governing board5shall redraw the boundaries of the authority to exclude that portion6of the city that is located within the authority's boundaries, and7the excluded area is no longer subject to local option taxes imposed8by the authority. This subsection expires December 31, 1998.))9

PART IV10MISCELLANEOUS11

Sec. 401. RCW 47.04.320 and 2011 c 257 s 2 are each amended to12read as follows:13

(1) The department shall establish a complete streets grant14program ((within the department's highways and local programs15division, or its successor)). During program development, the16department shall include, at a minimum, the department of archaeology17and historic preservation, local governments, and other organizations18or groups that are interested in the complete streets grant program.19The purpose of the grant program is to encourage local governments to20adopt urban arterial retrofit street ordinances designed to provide21safe access to all users, including bicyclists, pedestrians,22motorists, and public transportation users, with the goals of:23

(a) Promoting healthy communities by encouraging walking,24bicycling, and using public transportation;25

(b) Improving safety by designing major arterials to include26features such as wider sidewalks, dedicated bicycle facilities,27medians, and pedestrian streetscape features, including trees where28appropriate;29

(c) Protecting the environment and reducing congestion by30providing safe alternatives to single-occupancy driving; and31

(d) Preserving community character by involving local citizens32and stakeholders to participate in planning and design decisions.33

(2) For purposes of this section:34(a) "Eligible project" means (i) a local government street35

retrofit project that includes the addition of, or significant repair36to, facilities that provide street access with all users in mind,37including pedestrians, bicyclists, and public transportation users;38

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or (ii) a retrofit project on city streets that are part of a state1highway that include the addition of, or significant repair to,2facilities that provide ((street)) access with all users in mind,3including pedestrians, bicyclists, and public transportation users.4

(b) "Local government" means incorporated cities and towns that5have adopted a jurisdiction-wide complete streets ordinance that6plans for the needs of all users and is consistent with sound7engineering principles.8

(c) "Sound engineering principles" means peer-reviewed, context9sensitive solutions guides, reports, and publications, consistent10with the purposes of this section.11

(3) In carrying out the purposes of this section, the department12may award funding, subject to the availability of amounts13appropriated for this specific purpose, only to eligible projects14that are designed consistent with sound engineering principles.15

(4) The department must report annually to the transportation16committees of the legislature on the status of any grant projects17funded by the program created under this section.18

Sec. 402. RCW 81.77.170 and 1989 c 431 s 36 are each amended to19read as follows:20

For rate-making purposes, a fee, charge, or tax on the collection21or disposal of solid waste ((shall be)) is considered a normal22operating expense of the solid waste collection company, including23all taxes and fees imposed or increased under this act. Filing for24pass-through of any such fee, charge, or tax is not considered a25general rate proceeding.26

Effective Dates and Other Miscellaneous Provisions27

Sec. 403. 2013 c 225 s 650 (uncodified) is amended to read as28follows:29

((This act takes effect July 1, 2015.)) Section 110 of this act30takes effect July 1, 2015. Sections 101 through 109, 111 through 304,31and 306 through 647 of this act take effect July 1, 2016.32

NEW SECTION. Sec. 404. 2013 c 225 s 305 is repealed.33

NEW SECTION. Sec. 405. If any provision of this act or its34application to any person or circumstance is held invalid, the35

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remainder of the act or the application of the provision to other1persons or circumstances is not affected.2

NEW SECTION. Sec. 406. Sections 101, 102, 104, 109, 111, 112,3304, 403, and 404 of this act are necessary for the immediate4preservation of the public peace, health, or safety, or support of5the state government and its existing public institutions, and take6effect July 1, 2015.7

NEW SECTION. Sec. 407. Sections 103, 105, 110, 201 through 203,8and 205 through 208 of this act take effect July 1, 2016.9

NEW SECTION. Sec. 408. Section 107 of this act expires on the10date the requirements set out in section 7, chapter 36, Laws of 201211are met.12

NEW SECTION. Sec. 409. Section 108 of this act takes effect on13the date the requirements set out in section 7, chapter 36, Laws of142012 are met.15

NEW SECTION. Sec. 410. Sections 101, 102, 104, and 109 of this16act expire July 1, 2016.17

NEW SECTION. Sec. 411. Sections 209 through 213 of this act18take effect July 1, 2017.19

NEW SECTION. Sec. 412. Sections 315 and 317 of this act expire20January 1, 2018.21

NEW SECTION. Sec. 413. Sections 316 and 318 of this act take22effect January 1, 2018."23

Correct the title.24

EFFECT: Makes the following changes to the underlying bill:(1) Removes the provisions from the substantive sections of the

bill making those sections contingent on the passage of variousbills;

(2) Provides one-half cent out of the first five cent increase inthe fuel tax to both the counties and the cities and towns;

(3) Makes various technical corrections to the fuel tax statutes;

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(4) Removes the provisions transferring various fees to theconnecting Washington account if a low carbon fuel standard or otherfuel standards based on carbon intensity are implemented;

(5) Requires an 8.3 million dollar per year transfer of vehiclelicense fee proceeds to the freight mobility investment account;

(6) Removes the repeal of the handling loss deduction;(7) Removes the provisions modifying the current electric vehicle

fee and establishing the Washington electric vehicle infrastructurebank;

(8) Removes the studded tire fee authorization;(9) Removes the intermittent trailer license plate and

registration authorization;(10) Transfers five dollars of the certificate of title fee to

the Puget Sound capital construction account and allows funds in thecapital vessel replacement account to be used for the constructionand purchase of ferry vessels in general;

(11) Increases the transportation benefit district vehicle feeauthorization from forty dollars to fifty dollars;

(12) Adds transit agencies in certain counties to the transitagencies that may impose a sales and use tax of up to 0.3 percentwith a vote of the people;

(13) Increases the regional transit authority (RTA) revenueauthorizations in the bill to a 0.8 percent motor vehicle excise taxand a twenty-five cents per thousand dollars of assessed valueproperty tax;

(14) Allows an RTA using the new revenue authorizations to spendthe revenues on regional trails that connect to the RTA's system andrequires such an RTA to consider including the name, Scott White, incertain station names;

(15) Requires certain RTAs to develop and approve a transit-oriented development (TOD) plan that includes an approximately 2million dollar contribution to a TOD loan fund, providing certainproperties and property rights for affordable housing, and requiringthat surplus TOD properties require that eighty percent of the unitsbe dedicated to affordable housing for persons whose adjusted incomeis below eighty percent of the median county income, so long as theplan is not in conflict with federal requirements;

(16) Removes the ability to spend complete streets grant fundsfor county roads;

(17) Removes the extension of the Tacoma Narrows bridge sales taxdeferral; and

(18) Provides an emergency clause for the increase in sales taxauthority provided to certain public transportation benefit areas.

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