Notice of Committee Passage for Senate Bill 5483

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SB 5483, titled AN ACT Relating to transportation funding, has been passed by the Senate Committee on Transportation. The Office of Financial Management has identified this bill as requiring a ten-year projection of increased cost to the taxpayers or affected fee payers.

Ten-year projection:

Fiscal Year			Aviation fuel	Bulk data, per record	DOL service fee	Driver abstract fee	Driver license photo only fee	Driver monitoring fee	Enhanced driver licenses and identicards	EV $100+$50+$75	EV per mile fee (RUC)	For Hire and TNC Fees	Forward Washington	Fuel tax diesel	Fuel tax gasoline	intermittent use trailer fee	License plate technology fee	Motor home weight fee	Passenger Vehicle weight fees	Peer-to-peer vehicle rental tax	Personal trailers	Plate fees	Quick title fee	Retail Sales Tax	Special Benefit Assessment	Standard driver license and identicard fees	Stolen vehicle check fee	Third party delivery trip fee	Title fee	Trip permit admin fees and surcharge	Vehicle look up fee	Vehicles paying Freight Project Fee (Trucks >10K lbs)	Vehicles paying Weight-based Reg. Fee (Trucks <=10K lbs)	Watercraft excise tax	Total
2022		$ -570,000	$ 657,300	$ 379,800	$ 660,800	$ 1,606,000	$ 1,542,000	$ 389,600	$ 6,972,400	$	$	$ 4,129,100	$ 2,370,000	$ 55,645,200	$ 202,489,400	$ 34,500	$ 330,400	$ 1,134,000	$ 54,821,900	$ 290,000	$ 1,721,400	$ 10,830,300	$ 200,000	$ 22,590,000	$	$ 5,520,000	$ 1,744,000	$ 3,168,000	$ 1,826,200	$ 2,717,800	$ 783,000	$ 5,513,700	$ 15,217,400	$ 13,265,400	$ 417,979,600
2023		-890,000	1,041,100	506,400	910,900	2,270,100	2,221,000	550,800	9,510,000			8,464,900	3,810,000	69,008,400	249,035,800	58,700	455,400	1,516,000		540,000	2,356,100	14,858,600	267,700	36,137,000	19,515,000	7,387,000	4,723,000	8,628,000	2,416,300	3,687,100	1,046,400	7,480,200		16,559,000	$ 474,070,900
2024		-900,000	1,122,300	506,400	925,400	2,313,100	2,196,000	561,200	8,681,000			12,398,000	3,980,000	70,086,300	251,425,300	71,200	462,700	1,520,000		670,000	2,417,400	14,946,300	268,000	36,645,000	37,747,000	6,750,000	4,806,400	9,793,000	2,419,200	3,746,100	1,048,800	7,599,900		16,162,000	$ 500,368,000
2025		-890,000	1,124,800	506,400	940,200	2,356,900	2,196,000	571,900	8,883,000			12,713,700	4,030,000	71,144,700	253,349,700	82,500	470,100	1,522,000		830,000	2,479,000	15,027,900	269,500	37,129,000	39,851,000	6,912,000	4,889,800	11,115,000	2,433,100	3,806,100	1,051,200	7,721,500		16,158,200	$ 508,675,200
2026		-870,000	1,127,800	506,400	953,400	2,371,000	2,196,000	575,200	9,452,000	-13,756,300	15,119,400	13,040,000	4,080,000	72,268,200	255,157,100	93,700	476,700	1,526,000		1,030,000	2,544,000	15,083,700	271,400	37,497,000	41,992,000	7,372,000	4,977,100	12,616,000	2,450,300	3,859,400	1,053,600	7,829,600		16,158,200	$ 519,050,900
2027		-860,000	1,128,800	506,400	961,000	2,385,300	2,196,000	578,700	10,616,000	-32,240,100	34,875,700	13,377,200	4,120,000	73,634,600	256,712,100	103,700	480,500	1,530,000		1,090,000	2,609,300	14,998,800	269,700	80,225,000	43,676,000	8,266,000	5,035,900	14,319,000	2,435,400	3,890,200	1,056,000	7,892,200		16,158,200	$ 572,027,600
2028		-840,000	1,128,100	506,400	968,700	2,399,300	2,196,000	582,100	10,004,000	-37,184,000	39,868,300	13,725,600	4,170,000	74,804,800	257,954,300	113,700	484,400	1,532,000		1,160,000	2,678,000	15,011,400	268,600	80,259,000	44,986,000	7,786,000	5,094,700	16,252,000	2,425,100	3,921,400	1,058,400	7,955,400		16,158,200	$ 577,427,900
2029		-830,000	1,128,200	506,400	973,600	2,412,400	2,196,000	585,300	9,881,000	-42,206,900	45,083,100	14,085,400	4,200,000	76,047,100	259,192,200	118,700	486,800	1,536,000		1,230,000	2,745,400	15,064,700	270,700	80,290,000	46,335,000	7,693,000	5,149,600	18,446,000	2,444,600	3,941,000	1,060,800	7,995,100		16,158,200	$ 584,219,400
2030		-810,000	1,130,800	506,400	978,400	2,425,300	2,196,000	588,400	9,319,000	-48,066,800	62,993,000	14,457,200	4,290,000	77,355,700	260,421,700	118,700	489,200	1,538,000		1,300,000	2,817,900	15,028,000	270,000	80,190,000	47,726,000	7,258,000	5,205,000	20,936,000	2,437,600	3,960,600	1,063,200	8,035,100		16,158,200	$ 602,316,600
2031		-800,000	1,135,300	506,400	983,300	2,437,800	2,196,000	591,500	9,511,000	-53,730,100	70,200,100	14,841,100	4,290,000	78,729,300	261,527,900	118,700	491,700	1,542,000		1,380,000	2,888,900	14,982,400	269,000	80,090,000	49,158,000	7,408,000	5,260,100	23,763,000	2,428,200	3,980,400	1,065,600	8,075,300		16,158,200	$ 611,479,100
Total:		$ -8,260,000	$ 10,724,500	$ 4,937,400	$ 9,255,700	$ 22,977,200	$ 21,331,000	$ 5,574,700	$ 92,829,400	$ -227,184,200	$ 268,139,600	$ 121,232,200	$ 39,340,000	$ 718,724,300	$ 2,507,265,500	$ 914,100	$ 4,627,900	$ 14,896,000	$ 54,821,900	$ 9,520,000	$ 25,257,400	$ 145,832,100	$ 2,624,600	$ 571,052,000	$ 370,986,000	$ 72,352,000	$ 46,885,600	$ 139,036,000	$ 23,716,000	$ 37,510,100	$ 10,287,000	$ 76,098,000	$ 15,217,400	$ 159,093,800	$ 5,367,615,200

Department of Transportation:

Senate bill 5483 is the Senate transportation revenue bill that raises money for transportation projects and puts the increased or new revenue primarily in two accounts: The Forward Washington and Forward Flexible accounts. Most revenue impacts in this bill will be reported by the Department of Licensing and some will be reported by the Department of Revenue in their fiscal note estimates. The creation of the new transportation accounts in section 801 and 802 and the revenue transfers contained in sections 808 and 809 of the bill will be reported in the Office of the State Treasurers fiscal note. 

The following sections of the bill have changes that directly affect WSDOT, or report on revenues that the department collects. Some parts of this cash receipts impact are quantifiable like the 25-cent ferry capital vessel surcharge and other components are indeterminate like the amount of revenue generated from the unpiloted aircraft systems,  

Sections 601 and 602 has the Ferry Capital Vessel Surcharge. Beginning October 1, 2021, the commission must impose an additional vessel replacement surcharge of 25 cents on every one-way and round-trip ferry fare sold, including multiride and monthly pass fares. The new WSF revenue impacts are reported in the cash receipts section.

Sections 701 through 705 propose a per mile fee on electric and hybrid vehicles. By December 1, 2023, the department and the Transportation Commission must collaborate to develop an implementation plan for the voluntary early adoption program to impose a per mile fee on electric and hybrid vehicles. The department and Commission must develop a plan to incorporate the ongoing work of the transportation commission in evaluating a road usage charge. The bill outlines the necessary components of the plan. By July 1, 2025, the department in consultation with the transportation commission must establish a voluntary early adoption program that allows the registered owner of an electric or hybrid vehicle to start paying a per mile fee earlier than the mandatory participation date of July 1, 2026. The voluntary early adoption program must include participation of at least 500 electric, hybrid and internal combustion light duty trucks fleet vehicles. Beginning July 1, 2026, before accepting an application for an initial annual vehicle registration or renewal for a vehicle that uses at least one method of propulsion that is capable of traveling at least 30 miles using only battery power a per mile fee is charged. The rate of the per mile fee is as follows: 2 cents per mile from July 1, 2026 through June 30, 2029 and then from July 1, 2029 and thereafter 2.5 cents per miles driven. Proceeds from the per mile fee imposed must be used for preservation and maintenance and deposited into the motor vehicle fund. WSDOT will have additional expenditure impacts from having to coordinate on the administration of this new per mile charge on electric and hybrid vehicles but the actual revenue estimates from the per mile fee will be reported by the Department of Licensing fiscal note.

Section 807 deletes legislative intent to provide loans to the TNB account to remove the need for future toll rate increases that would be repaid by extending duration of toll collection. Section 808 replaces the loan program deleted in section 807 and an assumed 25 cent toll rate increase with future TNB Account Transfers from the Forward Washington account to the TNB account in FY 2022 – FY 2031 as grants that would not require repayment. Each year has varying amounts transferred to the TNB account and this will be reported by OST in their fiscal note. 

Sections 810-813 has a new commercial unpiloted aircraft registration fee.  This proposal establishes a commercial unpiloted aircraft system registration fee. It also establishes an unpiloted aircraft system coordinator to serve in an advisory role and the bill outlines the duties of this new position. The Department must review the fee schedule based on the number of unpiloted aircraft systems registered. The registration fee is exempt for personal and hobby unpiloted aircraft systems. This portion of the bill draft is indeterminate.

Sections 814 and 815 restricts the Transportation Commission from establishing toll exemptions for transit busses on toll bridges, applying to the SR 16 TNB and SR 520 Bridge, including publicly owned or operated transit buses, passenger motor vehicle licensed as ride sharing, school buses and privately owned and operated passenger buses. The Commission set a uniform exemptions policy for all toll facilities in 2018, including for these vehicle types. The fiscal impact of this change is indeterminate due to the pandemic and depends on trip patterns and transit service levels once the effects of pandemic have subsided. 

Cash Receipts Impact

SB 5483 is the Senate transportation revenue bill which raises money for transportation projects and puts the increased or new revenue primarily in two accounts: The Forward Washington and Forward Flexible accounts. A lot of the revenue impacts in this bill will be reported by the Department of Licensing and a few revenue sources will be reported by the Department of Revenue in their fiscal note estimates. The creation of the new transportation accounts in section 801 and 802 and the revenue transfers contained in sections 808 and 809 of this bill will be reported in the OST fiscal note. 

The following sections of the bill contain impacts that directly impact WSDOT or report on revenues that WSDOT collects. Some parts of this cash receipts impact are quantifiable like the 25-cent ferry capital vessel surcharge and other components are indeterminate like the amount of revenue generated from the unpiloted aircraft systems.

Sections 601 and 602 has the Ferry Capital Vessel Surcharge. The new WSF revenue impacts are reported in the cash receipts section.

Sections 810-813 has a new commercial unpiloted aircraft registration fee.  This proposal establishes a commercial unpiloted aircraft system registration fee. It also establishes an unpiloted aircraft system coordinator to serve in an advisory role and the bill outlines the duties of this new position. The Department must review the fee schedule based on the number of unpiloted aircraft systems registered. The registration fee is exempt for personal and hobby unpiloted aircraft systems. An estimate for non-recreational commercial unpiloted aircraft would be speculative at this point, given the lack of data available about how many of such aircraft are used and would report in Washington State. The cash receipts impact is indeterminate. By way of example, if there were 1,000 small unpiloted commercial aircraft registered in Washington State, this would yield $15,000 in gross revenue annually.

Sections 814 and 815 restricts the Transportation Commission from establishing toll exemptions for transit busses on toll bridges, applying to the SR 16 TNB and SR 520 Bridge, including publicly owned or operated transit buses, passenger motor vehicle licensed as ride sharing, school buses and privately owned and operated passenger buses. The Commission set a uniform exemptions policy for all toll facilities in 2018, including for these vehicle types.

The fiscal impact of this change is indeterminate due to the pandemic and depends on trip patterns and transit service levels once the effects of pandemic have subsided. At pre-COVID service levels, removing transit and rideshare exemptions would increase toll revenue on TNB by approximately $235,000 annually, and by approximately $2.7 million on SR 520, while having an equivalent negative impact on transit agency budgets. Transit service levels and exemption value for FY 2021 is significantly smaller than these amounts and the rate of recovery to pre-COVID service levels is unknown. No impact is assumed to the SR 99 Tunnel which is not classified as a toll bridge.

Ten-year projection prepared in consultation with the following agencies:

Department of Revenue
Department of Licensing
Department of Transportation

The following legislators voted do pass:

Senator Tim Sheldon
Democrat
(360) 786-7668
Timothy.Sheldon@leg.wa.gov

Senator Steve Hobbs
Democrat
(360) 786-7686
steve.hobbs@leg.wa.gov

Senator Annette Cleveland
Democrat
(360) 786-7696
Annette.Cleveland@leg.wa.gov

Senator Rebecca Saldaña
Democrat
(360) 786-7688
rebecca.saldana@leg.wa.gov

Senator Mona Das
Democrat
(360) 786-7692
DAS_MO@leg.wa.gov

Senator Joe Nguyen
Democrat
(360) 786-7667
NGUYEN_JO@leg.wa.gov

Senator Claire Wilson
Democrat
(360) 786-7658
WILSON_CL@leg.wa.gov

Senator Emily Randall
Democrat
(360) 786-7650
RANDALL_EM@leg.wa.gov

Senator Liz Lovelett
Democrat
(360) 786-7678
Liz.Lovelett@leg.wa.gov

Senator T'wina Nobles
Democrat
(360) 786-7654
T'wina.Nobles@leg.wa.gov


The following legislators voted do not pass:

Senator Mike Padden
Republican
(360) 786-7606
Mike.Padden@leg.wa.gov

Senator Brad Hawkins
Republican
(360) 786-7622
brad.hawkins@leg.wa.gov

Senator Phil Fortunato
Republican
(360) 786-7660
phil.fortunato@leg.wa.gov

Senator Curtis King
Republican
(360) 786-7626
Curtis.King@leg.wa.gov

Senator Jeff Wilson
Republican
(360) 786-7636
Jeff.Wilson@leg.wa.gov



Legislative Bill Information Website: http://apps.leg.wa.gov/billinfo/

Initiative 960 Website: http://www.ofm.wa.gov/tax/default.asp