Bill Title: Public Transportation Expansion and Fare-Free Access Act

Preamble:

Whereas, access to affordable and reliable public transportation is essential for promoting economic development, reducing traffic congestion, improving air quality, and enhancing mobility and accessibility for all residents of Washington state; and

Whereas, investment in public transportation infrastructure and services is critical for addressing transportation challenges, promoting sustainable growth, and supporting the well-being and prosperity of communities across the state; and

Whereas, providing fare-free access to public transportation can further increase ridership, reduce barriers to mobility, and ensure equitable access to transportation services for all residents; and

Whereas, leveraging revenue from the energy sector and the sale of motor vehicles can provide sustainable funding for expanding public transportation and transitioning to a fare-free model; now, therefore,

Section 1: Definitions

(a) "Energy sector" refers to businesses and activities involved in the production, distribution, and sale of energy resources, including but not limited to oil, natural gas, electricity, and renewable energy sources.

(b) "Motor vehicles" refers to all types of passenger and commercial vehicles, including new and used cars, trucks, vans, motorcycles, and other motorized vehicles used for transportation purposes.

(c) "Fare-Free Access" refers to the provision of public transportation services without charging fares to riders.

Section 2: Energy Sector Tax

(a) An excise tax of 1% shall be levied on the total revenue generated by businesses operating in the energy sector in Washington state.

(b) The revenue generated from the energy sector tax shall be dedicated to funding public transportation infrastructure, operations, and services across the state, including initiatives to provide fare-free access to public transportation.

Section 3: Motor Vehicle Sales Tax

(a) A registration fee of $30 shall be imposed on the sale of all new and used motor vehicles in Washington state, including cars, trucks, vans, motorcycles, and other motorized vehicles.

(b) The revenue generated from the motor vehicle registration fee shall be earmarked for expanding and enhancing public transportation systems and services, including initiatives to provide fare-free access to public transportation.

Section 4: Allocation of Funds

(a) The revenue collected from the energy sector excise tax and the motor vehicle registration fee shall be deposited into a dedicated Public Transportation Expansion and Fare-Free Access Fund established for this purpose.

(b) Funds from the Public Transportation Expansion and Fare-Free Access Fund shall be allocated by the Washington State Department of Transportation (WSDOT) to transit agencies and regional transportation authorities for the planning, development, operation, and maintenance of public transportation systems and services, with a priority given to initiatives that provide fare-free access to public transportation.

(c) Transit agencies and regional transportation authorities shall submit annual reports detailing the use of funds received from the Public Transportation Expansion and Fare-Free Access Fund to the WSDOT for accountability and transparency purposes.

Section 5: Fare-Free Access Implementation

(a) Transit agencies and regional transportation authorities receiving funding under this act shall develop and implement plans to transition to fare-free access for all riders within 1 year of receiving funding.

(b) Fare-free access plans shall include strategies for covering the lost fare revenue through alternative funding sources, optimizing operational efficiencies, and enhancing the overall accessibility and affordability of public transportation services.

(c) The WSDOT shall provide technical assistance and guidance to transit agencies and regional transportation authorities in developing and implementing fare-free access plans.

Section 6: Effective Date

This act shall take effect on January 1, 2026, immediately following its passage into law.

Section 7: Severability

If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances shall not be affected.

Section 8: Repeal of Conflicting Provisions

All laws and parts of laws in conflict with this act are hereby repealed.

Section 9: Enactment

This act shall be enacted into law upon approval by the Governor.

Sponsor: Michael Holloman

Co-Sponsors: TBD

Date Introduced: TBD

Status: Draft