Transportation committee adopts striking amendment to HB 2711 and advances bill to rules

The Transportation Committee adopted a striking amendment to Engrossed Substitute House Bill 2,711 on March 4 and voted to advance the amended bill with a due‑pass recommendation to the rules committee.

Brian Moore, committee staff, told the committee the striking amendment removes most provisions of HB 2711 and replaces them with language from Senate Bill 6,352, with several additional changes. "The chart shows the provisions that are in the bill, and then we have asterisked where there are significant changes," Moore said, and he flagged a series of starred items for committee discussion, including an accelerated mobile driver's license date and new accounts for sustainable aviation fuel.

Why it matters: the amendment alters several taxes, fees and account structures that affect transportation funding statewide. Staff estimated net changes across the package, including both revenue increases from tax‑base clarifications and revenue reductions from exemptions and delayed tax increases.

Key provisions and staff explanations

- Mobile driver's license: The amendment moves implementation of the mobile driver's license/identicard from July 1, 2028, to Oct. 1, 2027. Moore described that as a significant scheduling change for implementation planning.

- Accounts and sustainable aviation fuel (SAF): The bill creates a sustainable aviation fuel airport infrastructure account and allows certain sustainable aviation fuel accounts to retain interest for airport purposes, and directs some aircraft tax deposits into that account.

- Trade‑in treatment for vessel and luxury vehicle taxes: The amendment clarifies that trade‑in value is included in calculating the recreational vessel tax and the luxury vehicle tax calculation is changed so trade‑in value is added back for the luxury tax; Moore said the clarification will produce positive revenue for those lines.

- Luxury vehicle provisions: The striking amendment provides a six‑month motor‑home exemption (July 1–Dec. 31), allows incremental payment of the luxury tax for leased vehicles, waives penalties and interest for dealers until June 30, and clarifies exemptions for enrolled tribal members and nonresidents.

- Special fuel (diesel) tax delay: Staff said a scheduled second increase in the special fuel/diesel tax would be delayed two years and its inflationary adjustment delayed, changing projected revenue timing.

- Traffic safety camera and driver‑education changes: Staff recommended removing the rebuttable‑presumption process for registered owners contesting traffic‑camera violations (requiring police reports, proof of sale, or sworn testimony to rebut). For camera revenue, beginning July 1, 2028, the amendment apportions $5,000 annually per active camera and an additional $5,000 for cameras active at least four years.

- Ferry payment‑card fees: The amendment clarifies that a recently authorized 3% surcharge applies to payment cards generally; staff said the language resolves ambiguity so debit‑card charges may be passed through in the same way as credit‑card charges.

- Supply‑chain competitiveness program and dredging funding: The bill creates a grant and loan program aimed at supply‑chain competitiveness, directs the department to work with public ports and federally recognized tribes, and establishes an account that in the senate‑passed budget funds the Columbia River cross‑Columbia River dredging project.

Fiscal impacts summarized

Moore summarized the package's estimated fiscal impacts: the two‑year delay to the diesel tax increase reduces revenues by about $34,000,000 over six years; the six‑month motor‑home exemption reduces revenues by about $6,500,000; including trade‑in value brings in approximately $18,100,000 for the luxury vehicle tax and about $138,000 for the recreational vessel tax; repeal of a proposed luxury aircraft tax was estimated to reduce receipts by about $21,500,000. Moore noted the luxury aircraft tax had not yet been implemented, so only estimates — not collections data — exist.

Questions and legal clarity

Committee members pressed staff for legal and administrative clarity on some items. On ferry surcharges, Clint McCarthy (committee staff) said state statutes have previously allowed the Department of Licensing to pass along card‑transaction fees and that staff could provide additional legal analysis if requested. Kelly Simpson (committee staff) said she did not see a per se legal bar to statutorily authorized surcharges but noted federal card‑issuer rules may apply.

Votes and next steps

Vice Chair Levick moved to adopt the striking amendment and later moved that Engrossed Substitute House Bill 2,711 as amended receive a due‑pass recommendation to the rules committee; both motions were moved, seconded, voice voted and carried. The committee advanced the bill to the rules committee subject to signature.

The committee recessed briefly for caucus before reconvening and completing the executive session. The committee adjourned after briefly recognizing staff.