Infrastructure, Transportation & Economic Development

Transportation Bills

The third week of session resulted in a few bills and continued briefings on "Transportation 101" in both chambers. In the Senate, SB 5207 (creating a freight congestion relief account) and SB 5272 (modifying the administration of fuel taxes, more commonly known as the "Tribal Fuel Tax" bill) packed the Senate hearing room.

The freight container bill received substantial opposition and the fuel tax bill had an array of concerns raised regarding how the reinstatement of the gas tax should occur. (Please see last week’s Bulletin for a summary). Although concerns have been raised, the underlying problems remain with both bills: funding for freight is inadequate and a legal remedy on how the state imposes the gas tax is critical for the state.

AWC Priority Issue
Transportation Benefit Districts

AWC is in the process of collecting bill signatures in the Senate and House for a proposed modification to Transportation Benefit Districts (TBDs). Under current law, TBDs can be created with a variety of voter approved fund sources. If a TBD is district-wide, AWC is requesting modification of two funds sources:

• To allow the first $20 of the maximum $100 Motor Vehicle License Fee to be councilmanic; and
• To allow impact fees to be councilmanic, including provisions prohibiting a district and a city from imposing the same fee (no double dipping).

Accountability measures are in place as well. Any TBD must have an identified plan (project list) or program affiliated with the use of the funds. In addition, the plan or program must also be adopted within a regional transportation planning organization plan. If enacted, this bill will provide cities with the opportunity to reinstate transportation funds lost due to I-776.

Please click here for more information on Transportation Benefit Districts and your projected losses due to I-776.

Providing a Single Ballot Proposition for Regional Transportation Investment Districts and Regional Transit Authorities (SB 5282)

When the Legislature concluded in 2006, it required that a regional vote in King, Pierce, and Snohomish County needed to include and pass both a roads element (Regional Transportation Investment District or RTID) and a transit element (Sound Transit Phase II). However, because RTID and Sound Transit do not share the same boundaries, it appeared that two votes would need to be taken at the polls. This bill would allow a single ballot provision and will eliminate voter confusion.

AWC Priority Issue
Local Infrastructure Financing Tool (SB 5115/HB 1277)

SB 5115 was heard this week. AWC would like to than Elle Chambers, City of Puyallup, Steve Burdick, City of Vancouver, and Michael Weight, City of Bothell, for testing in support of this legislation. We expect it to pass out of committee very soon. Its companion bill, HB 1277 has not been scheduled.

AWC Priority Issue
Dedicating Existing Revenue to Infrastructure Funding (HB 1361)

The genesis of this bill is from the Realtor’s Association. A substitute was introduced that redirects 3% of the state Real Estate Excise Tax (REET) as follows: 1% to the Public Works Trust Fund, 1% to the Community Economic Revitalization Board, and 1% to a new Growth Management Infrastructure Fund. Although concerns were raised about the Growth Management Infrastructure Fund, AWC testified in general support of the bill and has pledged to continue to work with the bill sponsors.

AWC Priority Issue
Providing for the Distribution of Funds Used for Jobs, Economic Development, and Local Capital Projects (HB 1790)

AWC, in collaboration with other associations, has worked to draft this legislation, which is complementary to HB 1361. This bill proposes the following, effective July 1, 2009:

• Eliminate the $50 million diversion from the Public Works Trust Fund; and
• Modify provisions of the Community Economic Revitalization Board to provide ongoing funding at the level identified this biennium ($20 million) and re-establish a funding source for public infrastructure investments identified with high wage jobs and private investments ($30 million).

The bill also include provisions to harmonize the 1st and 2nd Quarter REET.

Work Session on State Funding For Local Infrastructure

On February 1 at 1:30 pm, the Senate Ways and Means Committee is conducting a work session on state funding for local infrastructure. The work session will provide an overview of state infrastructure grant and loan programs and will include a panel discussing infrastructure for economic Development. Tom Trulove, Cheney Councilmember and Chair of the Community Economic Revitalization Board (CERB), will be part of the panel. We will use this opportunity to talk about the merits of CERB and other programs and why it is vital for the state to continue assisting in local infrastructure investments.

Changing Alternative Works Provisions (HB 1506)

This bill will be heard on February 2 at 8 am in the House State Government & Tribal Affairs Committee. This is the renewal and modification of the current General Contractor-Construction Manager (GC-CM) and Design Build (DB) public works authority.

On January 25, the Capital Projects Advisory Board met and offered several amendments to this bill. (The version on the legislature’s website should be considered a work in progress.) On first read, this is what the new bill will do:

Public Works Board Legislation (HB 1025/SB 5006 and HB 1068)

HB 1025, which authorizes projects recommended by the Public Works Board, has passed out of the House and has been referred to the Senate Ways and Means Committee. Its Senate companion bill, SB 5006 is scheduled for a hearing at 1:30 pm on February 1 in the Ways and Means Committee. HB 1068, which would increase non-construction loan limits for project financing through the Public Works Board, will be heard on January 25 at 8 am in the House Capital Budget Committee.

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