SB 856 — Mass transit; makes numerous changes to administration of and revenues for transit.

The members of the House of Delegates shall be appointed by the Speaker of the House for terms coincident with their terms of office, and the member of the Senate shall be appointed by the Senate Committee on Rules for a term coincident with his term of office.

The members of the General Assembly shall be eligible for reappointment for successive terms.

Vacancies occurring other than by expiration of a term shall be filled for the unexpired term.

Vacancies shall be filled in the same manner as the original appointments.

The Transportation District Commission of Hampton Roads shall consist of one nonlegislative citizen member appointed by the Governor from each county and city embraced by the transportation district.

However, for the gubernatorial appointments that will become effective July 1, 2016, three of the appointments shall be for initial terms of two years and three appointments shall be for terms of four years.

Thereafter, all gubernatorial appointments shall be for terms of four years so as to stagger the terms of the gubernatorial appointees.

The governing body of each such county or city may appoint either a member of its governing body or its county or city manager to serve as an ex officio member with voting privileges.

Every such ex officio member shall be allowed to attend all meetings of the commission that other members may be required to attend.

Vacancies shall be filled in the same manner as the original appointments.

B.

The Secretary or his designee and any appointed member the appointee of the Northern Virginia Transportation Commission are authorized to serve as members of the board of directors of the Washington Metropolitan Area Transit Authority (§ 33.2-3100 et seq.) and while so serving the provisions of § 2.2-2800 shall not apply to such member.

In appointing Virginia members of the board of directors of the Washington Metropolitan Area Transit Authority (WMATA), the Northern Virginia Transportation Commission shall include the Secretary or his designee as a principal member on the board of directors of WMATA.

Any designee serving as the principal member must reside in a locality served by WMATA.

In selecting from its membership those members a person to serve on the board of directors of WMATA, the Northern Virginia Transportation Commission shall comply with the following requirements:

1.

A board member shall not have been an employee of WMATA within one year of appointment to serve on the board of directors.

2.

A board member shall have (i) experience in at least one of the fields of transit planning, transportation planning, or land use planning;

transit or transportation management or other public sector management;

engineering;

finance;

public safety;

homeland security;

human resources;

or the law or (ii) knowledge of the region's transportation issues derived from working on regional transportation issue resolution.

3.

A board member shall be a regular patron of the services provided by WMATA.

4.

Board members shall serve a term of four years with a maximum of two consecutive terms.

A board member's term or terms must coincide with his term on the body that appointed him to the Northern Virginia Transportation Commission.

Any vacancy created if a board member cannot fulfill his term because his term on the appointing body has ended shall be filled for the unexpired term in the same manner as the member being replaced was appointed within 60 days of the vacancy.

The initial appointments to a four-year term will be as follows:

the Secretary, or his designee, for a term of four years;

the second principal member for a term of three years;

one alternate for a term of two years;

and the remaining alternate for a term of one year.

Thereafter, board members shall be appointed for terms of four years.

Service on the WMATA board of directors prior to July 1, 2012, shall not be considered in determining length of service.

Any person appointed to an initial one-year or two-year term, or appointed to an unexpired term in which two years or less is remaining, shall be eligible to serve two consecutive four-year terms after serving the initial or unexpired term.

5.

Members may be removed from the board of directors of WMATA if they attend fewer than three-fourths of the meetings in a calendar year;

if they are conflicted due to employment at WMATA;

or if they are found to be in violation of the State and Local Government Conflict of Interests Act (§ 2.2-3100 et seq.).

If a board member is removed during a term, the vacancy shall be filled pursuant to the provisions of subdivision 4.

6.

Each member of person appointed by the Northern Virginia Transportation Commission appointed to the board of directors of WMATA shall file semiannual reports with the Secretary's office beginning July 1, 2012.

The reports shall include (i) the dates of attendance at WMATA board meetings, (ii) any reasons for not attending a specific meeting, and (iii) dates and attendance at other WMATA-related public events.

7.

Each nonelected member of the Northern Virginia Transportation Commission appointed to the board of directors of WMATA shall be eligible to receive reasonable and necessary expenses and compensation pursuant to §§ 2.2-2813 and 2.2-2825 from the Northern Virginia Transportation Commission for attending meetings and for the performance of his official duties as a board member on that day.

Any entity that provides compensation to a WMATA board member for his service on the WMATA board shall be required to submit on July 1 of each year to the Secretary the amount of that compensation.

Such letter will remain on file with the Secretary's office and be available for public review.

C.

When the Northern Virginia Transportation Commission and the Potomac and Rappahannock Transportation Commission enter into an agreement to operate a commuter railway, the agreement governing the creation of the railway shall provide that the Chairman of the Commonwealth Transportation Board or his designee shall have one vote on the oversight board for the railway.

For each year in which the state contribution to the railway is greater than or equal to the highest contribution from an individual locality, the total annual subsidy as provided by the member localities used to determine vote weights shall be recalculated to include the Commonwealth contributing an amount equal to the highest contributing locality.

The vote weights shall be recalculated to provide the Chairman of the Commonwealth Transportation Board or his designee the same weight as the highest contributing locality.

The revised vote weights shall be used in determining the passage of motions before the oversight board.

Beginning in fiscal year 2019, $20 million each year shall be transferred from the Fund to the Washington Metropolitan Area Transit Authority Capital Fund established pursuant to § 33.2-3401.33.2-2401.

§ 33.2-2510.

Use of certain revenues by the Authority.

A.

All moneys received by the Authority and the proceeds of bonds issued pursuant to § 33.2-2511 shall be used by the Authority solely for transportation purposes benefiting those counties and cities that are embraced by the Authority.

Any moneys used by the Authority for the capital needs of the Washington Metropolitan Area Transit Authority (WMATA) pursuant to subdivision B 3 shall be determined to have been used solely for transportation purposes benefiting those counties and cities that are embraced by the Authority, provided that such moneys are used to pay the Commonwealth's share of the capital needs of WMATA as determined in the Authority's adopted annual budget.

B.

1.

Except as provided in subdivision subdivisions and 3, 30 percent of the revenues received by the Authority under subsection A shall be distributed on a pro rata basis, with each locality's share being the total of such fee and taxes received by the Authority that are generated or attributable to the locality divided by the total of such fee and taxes received by the Authority.

Of the revenues distributed pursuant to this subsection, as determined solely by the applicable locality, such revenues shall be used for additional urban or secondary highway construction, for other capital improvements that reduce congestion, for other transportation capital improvements that have been approved by the most recent long-range transportation plan adopted by the Authority, or for public transportation purposes.

None of the revenue distributed by this subsection may be used to repay debt issued before July 1, 2013.

Each locality shall create a separate, special fund in which all revenues received pursuant to this subsection and from the tax imposed pursuant to § 58.1-3221.3 shall be deposited.

Each locality shall provide annually to the Authority sufficient documentation as required by the Authority showing that the funds distributed under this subsection were used as required by this subsection.

2.

If a locality has not deposited into its special fund (i) revenues from the tax collected under § 58.1-3221.3 pursuant to the maximum tax rate allowed under that section or (ii) an amount, from sources other than moneys received from the Authority, that is equivalent to the revenue that the locality would receive if it was imposing the maximum tax authorized by § 58.1-3221.3, then the amount of revenue distributed to the locality pursuant to subdivision 1 shall be reduced by the difference between the amount of revenue that the locality would receive if it was imposing the maximum tax authorized by such section and the amount of revenue deposited into its special fund pursuant to clause (i) or (ii), as applicable.

The amount of any such reduction in revenue shall be redistributed according to subsection C E.

The provisions of this subdivision shall be ongoing and apply over annual periods as determined by the Authority.

3.

Prior to the distribution of revenues pursuant to subdivision B 1, $45 million annually shall be transferred to the WMATA Capital Fund established pursuant to § 33.2-3401.

C.

1.

The remaining 70 percent of the revenues received by the Authority under subsection A, plus the amount of any revenue to be redistributed pursuant to subsection B, shall be used by the Authority solely to fund transportation projects selected by the Authority that are contained in the regional transportation plan in accordance with § 33.2-2500 and that have been rated in accordance with § 33.2-257.

For only those regional funds received in fiscal year 2014, the requirement for rating in accordance with § 33.2-257 shall not apply.

The Authority shall give priority to selecting projects that are expected to provide the greatest congestion reduction relative to the cost of the project and shall document this information for each project selected.

Such projects selected by the Authority for funding shall be located (i) only in localities embraced by the Authority or (ii) in adjacent localities but only to the extent that such extension is an insubstantial part of the project and is essential to the viability of the project within the localities embraced by the Authority.

2.

Not less than 15 days prior to any decision by the Authority for the expenditure of funds pursuant to subdivision 1 for any project to create or improve any transportation facility, the Authority shall make the following publicly available:

(i) the project evaluation pursuant to § 33.2-257, (ii) the total amount of funds from the Authority to be used for the project, (iii) the total amount of funds from sources other than the Authority to be used for the project, and (iv) any other rating or scoring of other factors to be taken into account by the Authority related to each such transportation facility.

3.

All transportation projects undertaken by the Authority shall be completed by private contractors accompanied by performance measurement standards, and all contracts shall contain a provision granting the Authority the option to terminate the contract if contractors do not meet such standards.

Notwithstanding the foregoing, any locality may provide engineering services or right-of-way acquisition for any project with its own forces.

The Authority shall avail itself of the strategies permitted under the Public-Private Transportation Act (§ 33.2-1800 et seq.) whenever feasible and advantageous.

The Authority is independent of any state or local entity, including the Department and the Commonwealth Transportation Board, but the Authority, the Department, and the Commonwealth Transportation Board shall consult with one another to avoid duplication of efforts and, at the option of the Authority, may combine efforts to complete specific projects.

Notwithstanding the foregoing, at the request of the Authority, the Department may provide the Authority with engineering services or right-of-way acquisition for the project with its own forces.

4.

With regard to the revenues distributed under subdivision 1, each locality's total long-term benefit shall be approximately equal to the proportion of the total of the fees and taxes received by the Authority that are generated by or attributable to the locality divided by the total of such fees and taxes received by the Authority.

D.

For road construction and improvements pursuant to subsection B, the Department may, on a reimbursement basis, provide the locality with planning, engineering, right-of-way, and construction services for projects funded in whole by the revenues provided to the locality by the Authority.

CHAPTER 31.01.

METRO REFORM COMMISSION.

§ 33.2-3100.1.

Metro Reform Commission established;

membership;

duties.

A.

As used in this chapter, unless the context requires a different meaning:

"Commission" means the Metro Reform Commission.

"WMATA" means the Washington Metropolitan Area Transit Authority.

B.

There is hereby created the Metro Reform Commission.

The Commission shall consist of three members appointed as follows:

two members appointed by the Speaker of the House of Delegates and one member appointed by the Senate Committee on Rules.

Members of the Commission may or may not be members of the General Assembly.

Members shall be citizens of the Commonwealth, but shall not be required to reside in the area served by WMATA.

Members shall serve without compensation, but shall be entitled to be reimbursed for all reasonable and necessary expenses incurred in the performance of their duties pursuant to §§ 2.2-2813 and 2.2-2825.

C.

The Commission shall advise and make recommendations to the Signatories of the Washington Metropolitan Area Transit Authority Compact of 1966 on reforms to the National Capital Area Interest Arbitration Standards Act.

D.

The Commission shall request a semiannual report from the general manager of WMATA, or his designee, regarding the operation of WMATA, including updates regarding safety improvements and workforce.

Funding of the Commonwealth to support WMATA pursuant to § 33.2-1526.1 shall be contingent on such report being provided to the Commission.

All revenues dedicated to the Fund pursuant to §§§ 33.2-2400, 33.2-3404,subdivision 58.1-802.3,B 58.1-1741,3 58.1-1743,of § 33.2-2510, and 58.1-2290.20§§ 58.1-1741, and 58.1-1742 shall be paid into the state treasury and credited to the Fund as set forth in subsection B and shall be used for the payment of capital purposes incurred, or to be incurred, by WMATA.

Within the Fund, there shall be established a separate, segregated account into which revenues dedicated to the Fund pursuant to §§subdivision 33.2-3404,B 58.1-802.3,3 58.1-1743,of § 33.2-2510 and 58.1-2290.20§ 58.1-1742 shall be deposited (the Non-Restricted Account).

§ 33.2-3403.

NVTC report.

By November 1 of each year that funds are deposited into the Fund, NVTC shall report to the Governor and the General Assembly on the performance and condition of WMATA.

Such report shall contain, at a minimum, documentation of this following:

1.

The safety and reliability of the rapid heavy rail mass transportation system and bus network;

2.

The financial performance of WMATA related to the operations of the rapid heavy rail mass transportation system, including farebox recovery, service per rider, and cost per service hour;

3.

The financial performance of WMATA related to the operations of the bus mass transportation system, including farebox recovery, service per rider, and cost per service hour;

4.

Potential strategies to reduce the growth in such costs and to improve the efficiency of WMATA operations;

5.

Use of the funds provided from the Fund to improve the safety and condition of the rapid heavy rail mass transportation system;

and 6.

Ridership of the rapid heavy rail mass transportation system and the bus mass transportation system.

§ 33.2-3404.

Local transportation support for WMATA.

A.

Each locality that (i) is a member of a planning district that meets the criteria in § 58.1-802.2, (ii) is a member of the transportation district that meets the criteria in § 33.2-1936, and (iii) has financial obligations to a transit system that operates a rapid heavy rail mass transit system operating on an exclusive right-of-way and a bus mass transportation system that is owned, operated, or controlled by an agency or commission as defined in § 33.2-1901 shall annually transfer a portion of the revenues received pursuant to subsection B of § 33.2-2510 to the Fund.

B.

The transfer by each local government pursuant to subsection A shall be determined by multiplying $31 million by a fraction the numerator of which shall be such local government's share of capital funding for WMATA and the denominator of which shall be the total share of capital funding for WMATA for all local governments in the Commonwealth.

CHAPTER 35.

COMMUTER RAIL OPERATING AND CAPITAL FUND.

§ 33.2-3500.

Commuter Rail Operating and Capital Fund.

A.

The General Assembly declares it to be in the public interest that developing and continuing commuter rail operations and developing rail infrastructure, rolling stock, and support facilities to support commuter rail service are important elements of a balanced transportation system in the Commonwealth and further declares that retaining, maintaining, improving, and developing commuter rail-related infrastructure improvements and operations are essential to the Commonwealth's continued economic growth, vitality, and competitiveness in national and world markets.

B.

There is hereby created in the state treasury a special nonreverting fund to be known as the Commuter Rail Operating and Capital Fund, referred to in this section as "the Fund." The Fund shall be established on the books of the Comptroller and shall consist of funds deposited into the Fund pursuant to § 58.1-2299.20 and other funds as may be set forth in a general appropriation act or allocated by the Commonwealth Transportation Board.

Such funds shall be paid into the state treasury and credited to the Fund.

Interest earned on moneys in the Fund shall remain in the Fund and be credited to it.

Any moneys remaining in the Fund, including interest thereon, at the end of each fiscal year shall not revert to the general fund but shall remain in the Fund.

The Comptroller shall disburse funds in the Fund monthly to a transportation entity that, on July 1, 2018, (i) is operated jointly by two transportation districts in the Commonwealth and (ii) operates a commuter rail system.

C.

If the transportation entity described in subsection B determines that such moneys distributed to it exceed the amount required to meet the current capital and operating needs of such entity, it may invest such excess moneys to the same extent as provided in subsection A of § 33.2-1525 for excess funds in the Transportation Trust Fund.

D.

The amounts deposited into the Fund and the distribution and expenditure of such amounts shall not be used to calculate or reduce the share of federal, state, or local revenues otherwise available to participating jurisdictions.

Further, such revenues and moneys shall not be included in any computation of, or formula for, a locality's ability to pay for public education, upon which appropriations of state revenues to local governments for public education are determined.

§ 33.2-3501.

Use of revenues in the Fund.

A.

The transportation entity described in subsection B of § 33.2-3500 shall administer and expend, or commit, funds from the Fund to support the cost of operating commuter rail service;

acquiring, leasing, or improving railways or railroad equipment, rolling stock, rights-of-way, or facilities;

or assisting other appropriate entities to acquire, lease, or improve railways or railroad equipment, rolling stock, rights-of-way, or facilities for commuter rail transportation purposes whenever such transportation entity has determined that such acquisition, lease, or improvement is for the common good of a region of the Commonwealth or the Commonwealth as a whole.

Funds provided in this section may also be used as matching funds for federal grants to support commuter rail projects.

B.

Capital projects, including tracks and facilities constructed, and property, equipment, and rolling stock purchased, with funds from the Fund pursuant to this section shall be the property of the transportation entity described in subsection B of § 33.2-3500 for the useful life of the project, as determined by the Director of the Department of Rail and Public Transportation, and shall be made available for use by all commuter rail operations and common carriers using the railway system to which they connect under the trackage rights or operating agreements between the parties.

Such transportation entity may transfer ownership of any tracks or property to the Commonwealth.

Projects undertaken pursuant to this section shall be limited to those providing benefits to a region of the Commonwealth, the Commonwealth as a whole, or an adjacent jurisdiction served by commuter rail originating in the Commonwealth.

§ 33.2-3502.

Authority to issue bonds.

The transportation entity described in subsection B of § 33.2-3500 may issue bonds and other evidences of debt as may be authorized by this section or other law.

The provisions of Article 5 (§ 33.2-1920 et seq.) of Chapter 19 shall apply, mutatis mutandis, to the issuance of such bonds or other debt.

The Authority may issue bonds or other debt in such amounts as it deems appropriate.

The bonds may be supported by any funds available in the Fund, provided that the total amount of debt service for all outstanding bonds may not exceed 33 percent of the revenues dedicated to the Fund pursuant to § 58.1-2299.20.

§ 58.1-802.3.

Regional WMATA capital fee.

In addition to any other tax or fee imposed under the provisions of this chapter, a fee, delineated as the "regional WMATA capital fee," is hereby imposed on each deed, instrument, or writing by which lands, tenements, or other realty located in any county or city located in a transportation district established pursuant to Chapter 19 (§ 33.2-1900 et seq.) of Title 33.2 that as of January 1, 2018, meets the criteria established in § 33.2-1936 is sold and is granted, assigned, transferred, or otherwise conveyed to or vested in the purchaser or any other person, by such purchaser's direction.

The fee shall be imposed in a transportation district established pursuant to Chapter 19 (§ 33.2-1900 et seq.) of Title 33.2 that meets the criteria established in § 33.2-1936.

The rate of the fee, when the consideration or value of the interest, whichever is greater, equals or exceeds $100, shall be $0.10 for each $100 or fraction thereof, exclusive of the value of any lien or encumbrance remaining thereon at the time of the sale, whether such lien is assumed or the realty is sold subject to such lien or encumbrance.

The fee imposed by this section shall be paid by the grantor, or any person who signs on behalf of the grantor, of any deed, instrument, or writing subject to the fee imposed by this section.

No such deed, instrument, or other writing shall be admitted to record unless certification of the clerk wherein first recorded has been affixed thereto that the fee imposed pursuant to this section has been paid.

Fees imposed by this section shall be collected by the clerk of the court and deposited into the state treasury as soon as practicable.

Such fees shall then be deposited into special funds established by law.

In the case of the Northern Virginia Transportation District, the revenue generated and collected therein shall be deposited into the fund established in § 33.2-3401.

For additional transportation districts that may become subject to this section, funds shall be established by appropriate legislation.

(Contingent expiration date)dates) Distribution of recordation tax for certain transportation-related purposes.

(Contingent expiration date)date, see note) Disposition of revenues.

As provided in subsection A of § 58.1-638, of the funds becoming part of the Transportation Trust Fund pursuant to clause (ii) of subsection A,subdivision A 2, an aggregate of 4.2 percent shall be set aside as the Commonwealth Port Fund;

Article§ 11.58.1-1742.

Transportation(Contingent Transientexpiration Occupancydate) Taxes.Regional transient occupancy tax.

§In 58.1-1743.addition all other fees and taxes imposed under law, there is hereby imposed an additional transient occupancy tax at the rate of two percent of the amount of the charge for the occupancy of any room or space occupied in any county or city located in a Planning District established pursuant to Chapter 42 (§ 15.2-4200 et seq.) of Title 15.2 that (i) as of January 1, 2013, has a population of two million or more, as shown by the most recent United States Census, has not less than 1.7 million motor vehicles registered therein, and has a total transit ridership of not less than 50 million riders per year across all transit systems within the Planning District or (ii) as shown by the most recent United States Census meets the population criteria set forth in clause (i) and also meets the vehicle registration and ridership criteria set forth in clause (i).

TransportationIn districtany transientcase occupancyin tax.which the tax is imposed pursuant to clause (ii) such tax shall be effective beginning on the July 1 immediately following the calendar year in which all of the criteria have been met.

In addition to all other fees and taxes imposed under law, there is hereby imposed an additional transient occupancy tax at the rate of three percent of the amount of the charge for the occupancy of any room or space occupied in any county or city located in a transportation district established pursuant to Chapter 19 (§ 33.2-1900 et seq.) of Title 33.2 that as of January 1, 2018, meets the criteria established in § 33.2-1936.

In the case of thePlanning NorthernDistrict Virginia8, Transportation District, the revenue generated and collected therein shall be deposited into the fund established in § 33.2-2509 Washington Area Metropolitan Transit Authority Capital Fund pursuant to § 33.2-3401.

For additional transportation districts that may become subject to this section, funds shall be established by appropriate legislation.

§ 58.1-1744.

Local transportation transient occupancy tax.

In addition to all other fees and taxes imposed under law, there is hereby imposed an additional transient occupancy tax at the rate of two percent of the amount of the charge for the occupancy of any room or space occupied in any county or city that (i) is located in a planning district that, as of January 1, 2013, meets the criteria established in § 58.1-802.2 and (ii) is not located in a transportation district that, as of January 1, 2018, meets the criteria established in § 33.2-1936.

In any case in which the tax is imposed pursuant to clause (ii), such tax shall be effective beginning on the July 1 immediately following the calendar year in which all of the criteria have been met.

The tax imposed under this section shall be imposed only for the occupancy of any room or space that is suitable or intended for occupancy by transients for dwelling, lodging, or sleeping purposes.

The tax imposed under this section shall be administered by the locality in which the room or space is located in the same manner as it administers the tax authorized by § 58.1-3819 or 58.1-3840, mutatis mutandis, except as herein provided.

The revenue generated and collected from the tax shall be deposited by the local treasurer and may be used only for public transportation purposes.

§ 58.1-2289.

(For contingent expiration) Disposition of tax revenue generally.

A.

Unless otherwise provided in this section, all taxes and fees, including civil penalties, collected by the Commissioner pursuant to this chapter, less a reasonable amount to be allocated for refunds, shall be promptly paid into the state treasury and shall constitute special funds within the Commonwealth Transportation Fund.

Any balances remaining in these funds at the end of the year shall be available for use in subsequent years for the purposes set forth in this chapter, and any interest income on such funds shall accrue to these funds.

The Governor is hereby authorized to transfer out of such fund an amount necessary for the inspection of gasoline and motor grease measuring and distributing equipment, and for the inspection and analysis of gasoline for purity.

B.

The tax collected on each gallon of aviation fuel sold and delivered or used in this Commonwealth, less refunds, shall be paid into a special fund of the state treasury.

Proceeds of this special fund within the Commonwealth Transportation Fund shall be disbursed upon order of the Department of Aviation, on warrants of the Comptroller, to defray the cost of the administration of the laws of this Commonwealth relating to aviation, for the construction, maintenance and improvement of airports and landing fields to which the public now has or which it is proposed shall have access, and for the promotion of aviation in the interest of operators and the public generally.

C.

One-half cent of the tax collected on each gallon of fuel on which a refund has been paid for gasoline, gasohol, diesel fuel, blended fuel, or alternative fuel, for fuel consumed in tractors and unlicensed equipment used for agricultural purposes shall be paid into a special fund of the state treasury, known as the Virginia Agricultural Foundation Fund, to be disbursed to make certain refunds and defray the costs of the research and educational phases of the agricultural program, including supplemental salary payments to certain employees at Virginia Polytechnic Institute and State University, the Department of Agriculture and Consumer Services and the Virginia Truck and Ornamentals Research Station, including reasonable expenses of the Virginia Agricultural Council.

D.

One and one-half cents of the tax collected on each gallon of fuel used to propel a commercial watercraft upon which a refund has been paid shall be paid to the credit of the Game Protection Fund of the state treasury to be made available to the Board of Game and Inland Fisheries until expended for the purposes provided generally in subsection C of § 29.1-701, including acquisition, construction, improvement and maintenance of public boating access areas on the public waters of this Commonwealth and for other activities and purposes of direct benefit and interest to the boating public and for no other purpose.

However, one and one-half cents per gallon on fuel used by commercial fishing, oystering, clamming, and crabbing boats shall be paid to the Department of Transportation to be used for the construction, repair, improvement and maintenance of the public docks of this Commonwealth used by said commercial watercraft.

Any expenditures for the acquisition, construction, improvement and maintenance of the public docks shall be made according to a plan developed by the Virginia Marine Resources Commission.

From the tax collected pursuant to the provisions of this chapter from the sales of gasoline used for the propelling of watercraft, after deduction for lawful refunds, there shall be paid into the state treasury for use by the Marine Resources Commission, the Virginia Soil and Water Conservation Board, the State Water Control Board, and the Commonwealth Transportation Board to (i) improve the public docks as specified in this section, (ii) improve commercial and sports fisheries in Virginia's tidal waters, (iii) make environmental improvements including, without limitation, fisheries management and habitat enhancement in the Chesapeake and its tributaries, and (iv) further the purposes set forth in § 33.2-1510, a sum as established by the General Assembly.

E.

Of the remaining revenues deposited into the Commonwealth Transportation Fund pursuant to this chapter less refunds authorized by this chapter:

(i) 80 percent shall be deposited into the Highway Maintenance and Operating Fund established pursuant to § 33.2-1530, (ii) 11.3 percent shall be deposited into the Transportation Trust Fund established pursuant to § 33.2-1524, (iii) four percent shall be deposited into the Priority Transportation Fund, (iv) 3.11 3.7 percent shall be deposited into the Commonwealth Mass Transit Capital Fund established pursuant to subdivision A 4 c of § 58.1-638, and (v) one percent shall be transferred to a special fund within the Commonwealth Transportation Fund in the state treasury, to be used to meet the necessary expenses of the Department of Motor Vehicles, (vi) 0.35 of one percent shall be deposited into the Commonwealth Mass Transit Fund established pursuant to subdivision A 4 of § 58.1-638 and allocated to subdivision A 4 b (1)(b), and (vii) 0.24 of one percent shall be deposited into the Commonwealth Mass Transit Fund established pursuant to subdivision A 4 of § 58.1-638 and allocated to subdivision A 4 b (1)(a).

§ 58.1-2292.

Definitions.

As used in this chapter unless the context requires a different meaning:

"Alternative fuel" means the same as that term is defined in § 58.1-2201.

"Applied period" means the period of time in which a tax rate is imposed.

"Base period" means the period of time used to calculate the statewide average distributor price.

"Commissioner" means the Commissioner of the Department of Motor Vehicles.

"Cost price" means the same as that term is defined in § 58.1-602, and also includes all federal and state excise taxes and storage tank fees paid by the distributor.

"Cost price" does not include separately stated federal diesel fuel excise taxes, unless the distributor fails to exclude the federal diesel excise tax when collecting the tax imposed pursuant to this chapter.

"Department" means the Department of Motor Vehicles, acting directly or through its duly authorized officers and agents.

"Diesel fuel" means the same as that term is defined in § 58.1-2201.

"Distributor" means (i) any person engaged in the business of selling fuels in the Commonwealth who brings, or causes to be brought, into the Commonwealth from outside the Commonwealth any fuels for sale, or any other person engaged in the business of selling fuels in the Commonwealth;

(ii) any person who makes, manufactures, fabricates, processes, or stores fuels in the Commonwealth for sale in the Commonwealth;

or (iii) any person engaged in the business of selling fuels outside the Commonwealth who ships or transports fuels to any person in the business of selling fuels in the Commonwealth.

"Distributor charges" means the amount calculated by the Department to approximate the value of the items, on a per gallon basis, excluding the wholesale price of a gallon of fuel, upon which the tax imposed by § 58.1-2295 was calculated prior to July 1, 2018.

"Fuel" means any fuel subject to tax under Chapter (§ 58.1-2200 et seq.).

"Gasoline" means the same as that term is defined in § 58.1-2201.

"Gross sales" means the same as that term is defined in § 58.1-602.

"Liquid" means the same as that term is defined in § 58.1-2201.

"Retail dealer" means any person, including a distributor, who sells fuels to a consumer or to any person for any purpose other than resale.

"Sale" means the same as that term is defined in § 58.1-602 and also includes the distribution of fuel by a distributor to itself as a retail dealer.

"Sales price" means the same as that term is defined in § 58.1-602 and also includes all transportation and delivery charges, regardless of whether the charges are separately stated on the invoice.

Sales price does not include separately stated federal diesel fuel excise taxes, unless the distributor fails to exclude the federal diesel excise tax when collecting the tax imposed pursuant to this chapter.

"Statewide average distributor price" means the statewide average wholesale price of a gallon of unleaded regular gasoline or diesel fuel, as appropriate, plus distributor charges.

"Statewide average wholesale price" means the statewide average wholesale price of a gallon of unleaded regular gasoline or diesel fuel, as appropriate, calculated pursuant to § 58.1-2217.

"Wholesale price" means the same as that term is defined in § 58.1-2201.

§ 58.1-2295.

(Contingent expiration date) Levy;

payment of tax.

A.

1.

In addition to all other taxes now imposed by law, there is hereby imposed a tax upon every distributor who engages in the business of selling fuels at wholesale to retail dealers for retail sale in any county or city that is a member of (i) any transportation district in which a rapid heavy rail commuter mass transportation system operating on an exclusive right-of-way and a bus commuter mass transportation system are owned, operated, or controlled by an agency or commission as defined in § 33.2-1901 or (ii) any transportation district that is subject to subsection C of § 33.2-1915 and that is contiguous to the Northern Virginia Transportation District.

2.

In addition to all other taxes now imposed by law, there is hereby imposed a tax upon every distributor who engages in the business of selling fuels at wholesale to retail dealers for retail sale in any county or city that is located in a Planning District established pursuant to Chapter 42 (§ 15.2-4200 et seq.) of Title 15.2 that (i) as of January 1, 2013, has a population of not less than 1.5 million but fewer than two million, as shown by the most recent United States Census, has not less than 1.2 million but fewer than 1.7 million motor vehicles registered therein, and has a total transit ridership of not less than 15 million but fewer than 50 million riders per year across all transit systems within the Planning District or (ii) as shown by the most recent United States Census meets the population criteria set forth in clause (i) and also meets the vehicle registration and ridership criteria set forth in clause (i).

In any case in which the tax is imposed pursuant to clause (ii) such tax shall be effective beginning on the July 1 immediately following the calendar year in which all of the criteria have been met.

B.

1.

The tax shall be imposed on each gallon of fuel, other than diesel fuel, sold by a distributor to a retail dealer for retail sale in any such county or city described in subsection A at a rate of 2.1 percent of the sales price charged by a distributor for fuels sold to a retail dealer for retail sale in any such county or city.

In any such sale to a retail dealer in which the distributor and the retail dealer are the same person, the sales price charged by the distributor shall be the cost price to the distributor of the fuel statewide average distributor price of a gallon of unleaded regular gasoline as determined by the Commissioner pursuant to subdivision C 1.

For alternative fuels other than liquid alternative fuels, the Commissioner shall determine an equivalent tax rate based on gasoline gallon equivalency.

2.

The tax shall be imposed on each gallon of diesel fuel sold by a distributor to a retail dealer for retail sale in any such county or city at a rate of 2.1 percent of the statewide average distributor price of a gallon of diesel fuel as determined by the Commissioner pursuant to subdivision C 2.

C.

1.

To determine the statewide average distributor price of a gallon of unleaded regular gasoline, the Commissioner shall use the period from June 1 to November 30, inclusive, as the base period for the determination of the rate of the tax for the immediately following applied period beginning January 1 and ending June 30, inclusive.

The Commissioner shall use the period from December 1 to May 31, inclusive, as the base period for the determination of the rate of the tax for the immediately following applied period beginning July 1 and ending December 31, inclusive.

In no case shall the statewide average distributor price of a gallon of unleaded regular gasoline determined for the purposes of this section be less than the statewide average wholesale price of a gallon of unleaded regular gasoline on February 20, 2013, plus a distributor charge calculated by the Commissioner for that date.

2.

To determine the statewide average distributor price of a gallon of diesel fuel, the Commissioner shall use the period from June 1 to November 30, inclusive, as the base period for the determination of the rate of the tax for the immediately following applied period beginning January 1 and ending June 30, inclusive.

The Commissioner shall use the period from December to May 31, inclusive, as the base period for the determination of the rate of the tax for the immediately following applied period beginning July 1 and ending December 31, inclusive.

In no case shall the statewide average distributor price of a gallon of diesel fuel determined for the purposes of this section be less than the statewide average wholesale price of a gallon of diesel fuel on February 20, 2013, plus a distributor charge calculated by the Commissioner for that date.

D.

The tax levied under this section shall be imposed at the time of sale by the distributor to the retail dealer.

C.

E.

The tax imposed by this section shall be paid by the distributor, but the distributor shall separately state the amount of the tax and add such tax to the sales price or charge.

Thereafter, such tax shall be a debt from the retail dealer to the distributor until paid and shall be recoverable at law in the same manner as other debts.

No action at law or suit in equity under this chapter shall be maintained in the Commonwealth by any distributor who is not registered under § 58.1-2299.2 or is delinquent in the payment of taxes imposed under this chapter.

F.

Nothing in this section shall be construed to exempt the imposition and remittance of tax pursuant to this section in a sale to a retail dealer in which the distributor and the retail dealer are the same person.

§ 58.1-2299.

Bad debts.

A.

In any return filed under the provisions of this chapter, a distributor may credit, against the tax shown to be due on the return, the amount of tax previously returned and paid on accounts which are owed to the distributor and which have been found to be worthless within the period covered by the return.

The credit, however, shall not exceed the amount of the uncollected sales price determined by treating prior payments on each debt as consisting of the same proportion of the sales price, tax levied under this chapter, and other nontaxable charges as the total debt originally owed to the distributor tax due pursuant to § 58.1-2295 for the relevant applied period for the fuel delivered to the worthless accounts.

The amount of accounts for which a credit has been taken that are thereafter in whole or in part paid to the dealer shall be included in the first return filed after such collection.

B.

Notwithstanding any other provision of this section, a distributor whose volume and character of uncollectible accounts, including checks returned for insufficient funds, renders it impractical to substantiate the credit on an account-by-account basis may, subject to the approval of the Department, utilize an alternative method of substantiating the credit.

§ 58.1-2299.10.

Willful commission of prohibited acts;

criminal penalties.

Any person who willfully commits any of the following acts with the intent to (i) evade or circumvent the taxes imposed under this chapter or (ii) assist any other person in efforts to evade or circumvent such taxes is guilty of a Class 6 felony, if he:

1.

Does not pay the taxes imposed under this chapter and diverts the proceeds from such taxes for other purposes;

2.

Is a distributor required to be registered under the provisions of this chapter, or the agent or representative of such a distributor, and converts or attempts to convert proceeds from taxes imposed under this chapter for the use of the distributor or the distributor's agent or representative, with the intent to defraud the Commonwealth;

3.

Illegally collects taxes imposed under this chapter when not authorized or licensed by the Commissioner to do so;

4.

Conspires with any other person or persons to engage in an act, plan, or scheme to defraud the Commonwealth of proceeds from taxes levied under this chapter;

5.

Fails to remit to the Commissioner any tax levied pursuant to this chapter, if he (i) has added, or represented that he has added, the tax to the sales price for the fuel and (ii) has collected the amount of the tax;

or 6.

Applies for or collects from the Department a tax credit when the person knows or has reason to know that fuel for which the credit is claimed has been or will be used for a taxable purpose;

however, if the amount of fuel involved is not more than 20 gallons, such person is guilty of a Class misdemeanor.

§ 58.1-2299.14.

Recordkeeping requirements;

inspection of records;

civil penalties.

A.

Every distributor required to make a return and pay or collect any tax under this chapter shall keep and preserve suitable records of the sales taxable under this chapter, and such other books of account as may be necessary to determine the amount of tax due hereunder, and such other pertinent information as may be required by the Commissioner.

Such records shall be kept and maintained for a period to include the Department's current fiscal year and the previous three fiscal years.

B.

The Commissioner or any agent authorized by him may examine during the usual business hours all records, books, papers, or other documents of any distributor required to be registered under this chapter relating to the sales price amount of any fuel subject to taxation under this chapter to verify the truth and accuracy of any statement or any other information as to a particular sale.

C.

Any person who fails to keep or retain records as required by this section shall be subject to a civil penalty.

The amount of the civil penalty assessed against a person for his first violation shall be $1,000.

The amount of the civil penalty assessed against a person for each subsequent violation shall be $1,000 more than the amount of the civil penalty for the preceding violation.

D.

Any person who refuses to allow an inspection authorized under this section shall be subject to a civil penalty of $5,000 for each refusal.

§ 58.1-2299.20.

(Contingent expiration date) Disposition of tax revenues.

A.

All Except as provided in subsection C, all taxes, interest, and civil penalties paid to the Commissioner pursuant to this chapter for the sale of fuels at wholesale to retail dealers for retail sale in any county or city set forth in subdivision A 1 of § 58.1-2295, after subtraction of the direct costs of administration by the Department, shall be deposited in a special fund entitled the "Special Fund Account of the Transportation District of __________." The amounts deposited in the special fund shall be distributed monthly to the applicable transportation district commission of which the county or city is a member to be applied to the operating deficit, capital, and debt service of the mass transit system of such district or, in the case of a transportation district subject to the provisions of subsection C of § 33.2-1915, to be applied to and expended for any transportation purpose of such district.

In the case of a jurisdiction which, after July 1, 1989, joins a transportation district which was established on or before January 1, 1986, and is also subject to subsection C of § 33.2-1915, the funds collected from that jurisdiction shall be applied to and expended for any transportation purpose of such jurisdiction.

The direct costs of administration shall be credited to the funds appropriated to the Department.

B.

All taxes, interest, and civil penalties paid to the Commissioner pursuant to this chapter for the sale of fuels at wholesale to retail dealers for retail sale in any county or city set forth in subdivision A of § 58.1-2295, after subtraction of the direct costs of administration by the Department, shall be deposited into special funds established by law.

In the case of Planning District 23, the revenue generated and collected therein shall be deposited into the fund established in § 33.2-2600.

The direct cost of administration shall be credited to the funds appropriated to the Department.

C.

An amount equal to the increase in taxes, interest, and civil penalties paid to the Commissioner in fiscal year 2019 compared to fiscal year 2018 pursuant to this chapter for the sale of fuels at wholesale to retail dealers for retail sale in any county or city set forth in subdivision A 1 of § 58.1-2295, after subtraction of the direct cost of administration by the Department, shall be deposited as follows:

1.

Sixty-eight and four tenths of a percent of the funds attributable to a transportation district that meets the criteria in clause (i) of subdivision A 1 of § 58.1-2295 shall be deposited into the Washington Metropolitan Area Transit Authority Capital Fund established pursuant to § 33.2-3401;

Thirty-oneThat anduntil sixJuly tenths1, of2021, a percent of the fundsNorthern attributableVirginia toTransportation aCommission transportationshall districtnot thatmake meetsmore thethan criteriaone inappointment clauseto (i)the ofBoard subdivision A 1 of §the 58.1-2295Washington shallMetropolitan beArea depositedTransit intoAuthority, the Commuter Rail Operating and Capitalsuch Fundappointee establishedshall pursuantnot tobe §an 33.2-3500;elected official.

andHowever, 3.the Commission may appoint additional members to the Board in the event that the total number of appointees to the Board from entities other than the Commission exceeds four appointments.

All of the funds attributable to a transportation district that meets the criteria of clause (ii) of subdivision A 1 of § 58.1-2295 shall be deposited into the Commuter Rail Operating and Capital Fund established pursuant to § 33.2-3500.

§ 58.1-3221.3.

Classification of certain commercial and industrial real property and taxation of such property by certain localities.

A.

Beginning January 1, 2008, and solely for the purposes of imposing the tax authorized pursuant to this section, in the counties and cities that are wholly embraced by the Northern Virginia Transportation Authority and the Hampton Roads metropolitan planning area as of January 1, 2008, pursuant to § 134 of Title 23 of the United States Code, all real property used for or zoned to permit commercial or industrial uses is hereby declared to be a separate class of real property for local taxation.

Such classification of real property shall exclude all residential uses and all multifamily residential uses, including but not limited to single family residential units, cooperatives, condominiums, townhouses, apartments, or homes in a subdivision when leased on a unit by unit basis even though these units may be part of a larger building or parcel of real estate containing more than four residential units.

B.

In addition to all other taxes and fees permitted by law, (i) the governing body of any locality embraced by the Northern Virginia Transportation Authority may, by ordinance, annually impose on all real property in the locality specially classified in subsection A:

an amount of real property tax, in addition to such amount otherwise authorized by law, at a rate not to exceed $0.125 per $100 of assessed value as the governing body may, by ordinance, impose upon the annual assessed value of all real property used for or zoned to permit commercial or industrial uses;

and (ii) the governing body of any locality wholly embraced by the Hampton Roads metropolitan planning area as of January 1, 2008, pursuant to § 134 of Title 23 of the United States Code may, by ordinance, annually impose on all real property in the locality specially classified in subsection A:

an amount of real property tax, in addition to such amount otherwise authorized by law, at a rate not to exceed $0.10 per $100 of assessed value as the governing body may, by ordinance, impose upon the annual assessed value of all real property used for or zoned to permit commercial or industrial uses.

The authority granted in this subsection shall be subject to the following conditions:

(1) Upon appropriation, all revenues generated from the additional real property tax imposed shall be used to benefit the locality imposing the tax solely for (i) new road construction and associated planning, design, and right-of-way acquisition, including new additions to, expansions, or extensions of existing roads that add new capacity, service, or access, (ii) new public transit construction and associated planning, design, and right-of-way acquisition, including new additions to, expansions, or extensions of existing public transit projects that add new capacity, service, or access, (iii) other capital costs related to new transportation projects that add new capacity, service, or access and the operating costs directly related to the foregoing, or (iv) the issuance costs and debt service on bonds that may be issued to support the capital costs permitted in subdivisions (i), (ii), or (iii);

and (2) The additional real property tax imposed shall be levied, administered, enforced, and collected in the same manner as set forth in Subtitle III of Title 58.1 for the levy, administration, enforcement, and collection of local taxes.

In addition, the local assessor shall separately assess and set forth upon the locality's land book the fair market value of that portion of property that is defined as a separate class of real property for local taxation in accordance with the provisions of this section.

C.

Beginning January 1, 2008, in lieu of the authority set forth in subsections A and B above and solely for the purposes of imposing the tax authorized pursuant to this section, in the counties and cities wholly embraced by the Northern Virginia Transportation Authority and the Hampton Roads metropolitan planning area as of January 1, 2008, pursuant to § 134 of Title 23 of the United States Code, all real property used for or zoned to permit commercial or industrial uses is hereby declared to be a separate class of real property for local taxation.

Such classification of real property shall exclude all residential uses and all multifamily residential uses, including but not limited to single family residential units, cooperatives, condominiums, townhouses, apartments, or homes in a subdivision when leased on a unit by unit basis even though these units may be part of a larger building or parcel of real estate containing more than four residential units.

D.

In addition to all other taxes and fees permitted by law, (i) the governing body of any locality embraced by the Northern Virginia Transportation Authority may, by ordinance, create within its boundaries, one or more special regional transportation tax districts and, thereafter, may, by ordinance, impose upon the real property located in special regional transportation tax districts specially classified in subsection C within such special regional transportation tax districts:

an amount of real property tax, in addition to such amounts otherwise authorized by law, at a rate not to exceed $0.125 per $100 of assessed value as the governing body may, by ordinance, impose upon the annual assessed value of all real property used for or zoned to permit commercial or industrial uses;

and, (ii) the governing body of any locality wholly embraced by the Hampton Roads metropolitan planning area as of January 1, 2008, pursuant to § 134 of Title 23 of the United States Code may, by ordinance, create within its boundaries, one or more special regional transportation tax districts and, thereafter, may, by ordinance, impose upon the real property specially classified in subsection C within such special regional transportation tax districts:

an amount of real property tax, in addition to such amounts otherwise authorized by law, at a rate not to exceed $0.10 per $100 of assessed value as the governing body may, by ordinance, impose upon the annual assessed value of all real property used for or zoned to permit commercial or industrial uses.

The authority granted in this subsection shall be subject to the following conditions:

(1) Notwithstanding any other provisions of law to the contrary, upon appropriation, all revenues generated from the additional real property taxes imposed in accordance with subsection C and this subsection shall be used for transportation purposes that benefit the special regional transportation tax district to which such revenue is attributable and solely for (i) new road construction and associated planning, design, and right-of-way acquisition, including new additions to, expansions, or extensions of existing roads that add new capacity, service, or access,;

(ii) new public transit construction and associated planning, design, and right-of-way acquisition, including new additions to, expansions, or extensions of existing public transit projects that add new capacity, service, or access,;

(iii) other capital costs related to new transportation projects that add new capacity, service, or access and the operating costs directly related to the foregoing, or;

(iv) the issuance costs and debt service on bonds that may be issued to support the capital costs permitted in subdivisions subdivision (i), (ii), or (iii);

or (v) for a locality subject to § 33.2-3404, any other transportation purposes, provided that the amount used does not exceed the amount such locality is required to transfer pursuant to § 33.2-3404;

(2) Any local ordinance adopted in accordance with the provisions of subsection C and this subsection shall include the requirement that the additional real property taxes so authorized are to be imposed annually in accordance with applicable law;

(3) Any locality that imposes the additional real property taxes set forth in subsections A and B shall not be permitted to also impose the additional real property taxes set forth in subsection C and this subsection.

In addition, any locality electing to impose the additional real property taxes on all real property located in such locality that is specially classified in subsections A and B must do so in the manner prescribed in subsections A and B and not by creation of a special transportation tax district as set forth in subsection C and this subsection.

The creation of such special regional transportation tax districts shall not, however, affect the authority of a locality to establish tax districts pursuant to other provisions of law;

(4) The total revenues generated from the additional real property taxes imposed in accordance with subsection C and this subsection shall not be less than 85% of the revenues estimated to be generated when imposing the additional real property taxes in accordance with subsections A and B at the rate of $0.125 per $100 of assessed value in any locality embraced by the Northern Virginia Transportation Authority and at the rate of $0.10 per $100 of assessed value in any locality wholly embraced by the Hampton Roads metropolitan planning area as of January 1, 2008, pursuant to § 134 of Title 23 of the United States Code;

and (5) The additional real property taxes imposed pursuant to subsection C and this subsection shall be levied, administered, enforced, and collected, in the same manner as set forth in Subtitle III of Title 58.1 for the levy, administration, enforcement, and collection of all local taxes.

In addition, the local assessor shall separately assess and set forth upon the locality's land book the fair market value of that portion of property that is defined as separate class of real property for local taxation in accordance with the provisions of this section.

2.

That § 3 of the second enactment of Chapter 896 of the Acts of Assembly of 2007, as amended by Chapter 830 of the Acts of Assembly of 2011, is amended and reenacted as follows:

§ 3.

The net proceeds of the Bonds authorized by § 2 shall be used exclusively for the purpose of providing funds for paying the costs incurred or to be incurred for construction or funding of transportation projects pursuant to § 33.1-23.4:01 of the Code of Virginia, including but not limited to environmental and engineering studies, rights-of-way acquisition, improvements to all modes of transportation, acquisition, construction and related improvements, and any financing costs and other financing expenses.

Such costs may include the payment of interest on the Bonds for a period during construction and not exceeding one year after completion of construction of the projects.

That theeach secondcounty enactmentand ofcity Chapterlocated 896in ofPlanning theDistrict Acts8 ofon AssemblyJanuary of1, 2007,2018, asshall amendedexpend byor Chapterdisburse 830for oftransportation purposes each year an amount at least equal to the Actsaverage ofannual Assemblyamount ofexpended 2011,or isdisbursed amendedfor transportation by addingthe sectionscounty numberedor 3.1city, excluding bond proceeds or debt service payments and 3.2federal asor follows:state grants, between July 1, 2015, and June 30, 2018.

§Each 3.1.county or city that is a member of the Northern Virginia Transportation Commission or the Potomac Rappahannock Transportation Commission as of January 1, 2018, shall expend or disburse for the support of the Washington Metropolitan Area Transit Authority and the Virginia Railway Express an amount that is at least equal to the average annual amount expended or disbursed for such purposes by the county or city, excluding bond proceeds or debt service payments and federal or state grants, between July 1, 2015, and June 30, 2018.

The Commonwealth Transportation Board is hereby further authorized, by and with the consent of the Governor, to issue, pursuant to the provisions of the Transportation Development and Revenue Bond Act (§ 33.2-1700 et seq.

of the Code of Virginia), as amended from time to time, revenue obligations of the Commonwealth to be designated "Commonwealth of Virginia Transportation Capital Projects Revenue Bonds, Series ….." at one time in an aggregate principal amount not to exceed an additional $50 million for a total authorization of $3.05 billion, plus costs.

The issuance of any bonds under this act is subject to the provisions of subsection C of § 33.2-1527 of the Code of Virginia.

§ 3.2.

The net proceeds of the additional bonds authorized in § 3.1 of this enactment shall be used exclusively for the Commonwealth of Virginia to match federal funds provided for capital projects by the Washington Metropolitan Area Transit Authority.

That Articlethe 10provisions (§of 58.1-1742)this ofact Chapteramending 17§§ of33.2-2509, Title33.2-2510, 58.1and 58.1-1742 of the Code of Virginia isshall repealed.not become effective until 30 days after the District of Columbia and the State of Maryland each enact legislation or take actions to provide dedicated funding equal to their share of the $500 million in additional capital funding for the Washington Metropolitan Area Transit Authority.

That the provisions of this act amending §§ 33.2-2509, 33.2-2510, and 58.1-1742 of the Code of Virginia shall expire on June 30 of any fiscal year where the District of Columbia and the State of Maryland fail to provide dedicated funding equal to their share of the $500 million in additional capital funding for the Washington Metropolitan Area Transit Authority.

6.

That the Department of Rail and Public Transportation shall develop a prioritization process as required by § 33.2-214.3 of the Code of Virginia, as created by this act, for the Commonwealth Transportation Board's consideration.

The Board shall implement the prioritization process required by § 33.2-214.3 of the Code of Virginia, as created by this act, no later than July 1, 2019, and use such process for the development of the Six-Year Improvement Program for fiscal years 2020 through 2025.

7.

On the basis of these facts, the General Assembly finds that dedicated funding and the use of a special tax district for the Northern Virginia Transportation Commission is appropriate and necessary to support the capital needs of WMATA's rapid heavy rail mass transportation system.

6.

That, beginning July 1, 2019, the Commonwealth Transportation Board (the Board) shall withhold 20 percent of the funds available pursuant to subdivision C 3 of § 33.2-1526.1 of the Code of Virginia, as created by this act, each year unless (i) the Washington Metropolitan Area Transit Authority (WMATA) has adopted a detailed capital improvement program covering the current fiscal year and, at a minimum, the next five fiscal years, and at least one public hearing on such capital improvement program has been held in a locality embraced by the Northern Virginia Transportation Commission, and (ii) WMATA has adopted or updated a strategic plan within the preceding 36 months, and at least one public hearing on such plan or updated plan has been held in a locality embraced by the Northern Virginia Transportation Commission.

In order to satisfy the requirements of clause (ii) of this enactment, the first strategic plan adopted to comply with such requirements shall include a plan to align services with demand and to satisfy the other recommendations included in the report submitted pursuant to Item 436 R of Chapter 836 of the Acts of Assembly of 2017.

7.

That the Commonwealth Transportation Board shall withhold percent of the funds available pursuant to subdivision C 3 of § 33.2-1526.1 of the Code of Virginia, as created by this act, if any alternate members participate or take action as Washington Metropolitan Area Transit Authority (WMATA) Board members for a WMATA compact member when both members appointed by that same WMATA compact member are present at the WMATA Board meeting.

ThatThat, thefor Departmentprojects ofinitiated Railon and Publicafter Transportation,July in1, conjunction2018, withno theemployee Transitof Servicea DeliveryWMATA Advisorycontractor Committee,for shall develop a prioritizationWMATA processcapital asproject requiredlocated bysolely §within 33.2-214.3the ofCommonwealth theshall Codebe ofrequired Virginia,to ashave createdmembership byin thisa act,labor forunion theas Commonwealtha Transportationcondition Board'sof consideration.employment.

The Board shall implement the prioritization process required by § 33.2-214.3 no later than January 1, 2019, and use such process for the development of the Six-Year Improvement Program for fiscal years 2020 through 2025.

That the provisionsSecretary of thisTransportation act(the shallSecretary) notin becomecoordination effectivewith untilthe 30Northern daysVirginia afterTransportation Commission, shall engage his counterparts in the District of Columbia and the State of MarylandMaryland, eachand enactthe legislationappropriate orofficials takein actionsthe tofederal providegovernment, dedicatedfor fundingthe equalpurpose to their share of therevising $500 million in additional capital funding for the Washington Metropolitan Area Transit Authority,Authority exceptCompact that the provisions of §§1966 33.2-214.3(the Compact) and 33.2-1526.1implementing ofother thereforms Codenecessary ofto Virginia,ensure asthe createdshort-term by this act, and §long-term 58.1-602,viability subsection I of § 58.1-638, and §§ 58.1-2289, 58.1-2292, 58.1-2295, 58.1-2299, 58.1-2299.10, and 58.1-2299.14 of the CodeWashington ofMetropolitan Virginia,Area asTransit amendedAuthority by(WMATA). this act, shall become effective in due course.

In doing so, the Secretary shall develop, propose, and seek agreement on reforms related to the following:

(i) the legal and organizational structure of WMATA;

(ii) the composition and qualifications of the WMATA Board of Directors and the length of terms of its members, including the adoption of provisions that directors need not be required to hold public office and shall be appointed by each signatory on the basis of expertise and experience gained outside of government service in the operation of large transportation enterprises;

(iii) labor costs and labor relations;

(iv) the elimination of the mandatory binding-arbitration provision associated with union contract negotiations and the adoption of a provision that no employee of WMATA or employee of any WMATA contractor be required to have membership in a labor union as a condition of employment;

(v) measures necessary to resolve WMATA's $2.5 billion unfunded pension liability;

(vi) the transition of the employee pension plans to defined contribution plans, and other postemployment benefits issues;

(vii) implementation of the provisions of the Compact by the WMATA Board of Directors, management, and employees;

(viii) measures necessary to better ensure the safety of riders and employees, including safety in the event of a homeland security emergency in the national capital area;

(ix) financial and operations improvements necessary to ensure that WMATA's performance is at least as efficient as its closest comparable transit systems in the United States in terms of expense per passenger mile, vehicle revenue mile, and vehicle revenue hour;

and (x) other possible changes to the Compact that the Secretary may consider appropriate after consultation with the Chairmen of the House and Senate Committees on Transportation and the Metro Reform Commission established pursuant to § 33.2-3100.1 of the Code of Virginia, as created by this act.

The Secretary shall report to and consult quarterly with, beginning July 1, 2018, the Chairmen of the House and Senate Committees on Transportation and the Metro Reform Commission regarding activity undertaken in accordance with this enactment.

That the Department of Motor Vehicles shall develop guidelines, with the input of relevant stakeholders, to determine the distributor charges, as defined in § 58.1-2292 of the Code of Virginia, as amended by this act, to be added to the wholesale price of a gallon of fuel in order to establish the statewide average distributor price of a gallon of fuel pursuant to § 58.1-2295 of the Code of Virginia, as it is currently effective, as amended by this act.

Such guidelines shall include a procedure for a review of the items included in the distributor charge and an adjustment of the charge, if necessary, at the same time that the Department computes the tax for an applicable base period pursuant to § 58.1-2217 of the Code of Virginia.

The guidelines required by this enactment shall not be subject to the Administrative Process Act (§ 2.2-4000 et seq.

of the Code of Virginia).

11.

That the provisions of this act generating additional revenue through state taxes or fees for mass transit in the Commonwealth shall expire on December 31 of any year in which the General Assembly appropriates any of such additional revenues for any nontransportation purposes, or transfers any additional revenues that are to be deposited into the Washington Metropolitan Area Transit Authority Capital Fund pursuant to § 33.2-3401 of the Code of Virginia, as created by this act, or the Commuter Rail Operating and Capital Fund pursuant to § 33.2-3500 of the Code of Virginia, as created by this act.

12.

That nothing contained in this act shall be construed to appropriate or transfer any transportation revenues for nontransportation purposes pursuant to the twenty-second enactment of Chapter 896 of the Acts of Assembly of 2007, as amended by Chapter 830 of the Acts of Assembly of 2011, or the fourteenth enactment of Chapter 766 of the Acts of Assembly of 2013.

13.