Infrastructure, Transportation & Economic Development

Because most of the infrastructure, transportation and economic development related bills have fiscal implications, they are still "in play" until Monday, March 5. Consequently, many of these bills are likely to be amended before they are passed to the floor.

AWC Priority
Transportation Benefit Districts (TBDs) (HB 1858)

The House bill will be up for executive session on Friday, March 2.

As introduced, this bill would:

• Allow councilmanic authority to impose the first $20 of the maximum $100 vehicle license fee if a TBD is jurisdiction-wide.
• Allow councilmanic impact fees if a TBD is jurisdiction-wide. Provisions prohibiting a city (district) from imposing the same fee is included (a no double dipping requirement).

AWC Priority
Changing Alternative Public Works Provisions (SHB 1506)

This is the renewal and modification of the current General Contractor-Construction Manager (GC-CM) and Design Build (DB) public works authority. The bill passed out of the House Capital Budget Committee this week. Please see the February 2 edition of the Bulletin for a detailed description of the substitute bill.

AWC Priority
Funding for Jobs, Economic Development, and Local Capital Projects (SHB 1790/SSB 5762)

Because both of these bills are fiscal bills, they have been referred to the Appropriations Committee in the House and the Ways and Means Committee in the Senate. Because the bills dedicate funds to CERB and reduce future general fund flexibility, we are expecting the respective House and Senate leadership to determine the status of these bills over the weekend.

Effective, July 1, 2009, these substitute bills will accomplish the following:

• Eliminate the 2009-2011 $50 million Public Works Trust Fund diversion to the Job Development Fund;
• Provide ongoing funding for the Community Economic Revitalization Board (CERB) at $50 million/biennium;
• Replace the current laundry list of private investment (industries) eligible for CERB assistance with recommendations by the State Economic Development Commission;
• Add as part of the CERB prioritization process that jobs must pay at least the average countywide hourly wage or offer health insurance to employees and identify if investments accomplish projected population and employment growth or other GMA requirements;
• Eliminate the Job Development Fund program; and
• Harmonize the 1st and 2nd quarter REET (House bill only).

The funding source is 3.3% of the state Real Estate Excise Tax (REET), beginning July 1, 2009

AWC Priority
Local Infrastructure Finance Tool (LIFT) (SHB 1277/SSB 5115)

These bills would:

• Increase the limit of the annual state contribution to LIFT projects in the state from $5 million per year to $10 million per year, allowing an additional round of applications for $2.5 million in the competitive LIFT project awards in calendar years 2008 and 2009;
• Repeal the one per county prohibition on using this authority;
• Eliminate an assessed value per square foot requirement; and
• Provide several technical changes that will make the authority more flexible.

SHB 1277 is scheduled for executive action on Friday, March 2. SSB 5115 is scheduled in the Ways and Means Committee on the same day. To date, both bills are nearly the same.

Regional Transportation Commissions (RTC) (SSB 5803)

SSB 5803, which creates a regional transportation commission, was passed out of committee. This bill is the most far-reaching transportation policy bill this session and should be watched closely. The RTC would assume many of the powers and duties of Sound Transit, the Regional Transportation Improvement District, and the Puget Sound Regional Council. Project eligibility is broad and is focused on regional transportation solutions (rather than Highways of Statewide Significance, for example).

City Hardship Assistance Program Funds for Street Maintenance (SHB 1482/SSB 5483)

The House bill has already passed the House and has been referred to the Senate. The Senate bill is on second reading. These bills will move any remaining City Hardship Assistance Program funding to the Small City Pavement Preservation and Sidewalk Account.

Funding Qualifying Projects Through the Urban Corridor Program (HB 2331)

HB 2331 was heard on February 27 and is scheduled for executive session. This bill would direct $20 million to the Transportation Improvement Board (TIB). In testimony, there was support for TIB but concern over the revenue stream and some of the eligibility criteria. At the time of this publication, a substitute bill was up for vote that would create a new fund for TIB but does not provide an appropriation.

Preserving Rail Corridors (HB 2344)

Heard earlier this week, HB 2344 has three parts: 1) a requirement relating to the incorporation of rail lines in the (transportation) planning element of a city plan; 2) a notice requirement when rail lines are proposed for sale or change in use; and 3) a legislative approval requirement before rail lines could be sold.

We have heard from several cities that the legislative approval requirement is problematic. At the time of this printing, an amendment was being proposed to remove the legislator approval requirement. We do expect the amendment to be adopted. AWC will continue to monitor this bill as it moves out of the House Transportation Committee.

Changing Provisions Concerning Limitation of Claims Under a Construction Contract (SHB 1765)

This bill has passed out of the House Judiciary Committee and is now in the House Rules Committee. It reflects yet another proposal to change contracting law in a post Michael M. Johnson v. Spokane County environment. In short, this bill allows enforcement of a contractor's claim right under certain circumstances when the contractor has not complied with time or form requirements for submitting the claim.

AWC and several public owners have strong concerns about this bill. As a counter proposal, AWC, schools, ports, and counties jointly recommended a substitute bill that would clarify the claims process or suggested that the Capital Advisory Review Board include this as part of its interim work plan.

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