Trial court upholds constitutionality of I-976 on all but two legal challenges

On February 12, the King County Superior Court ruled on the constitutionality of Initiative 976 (I-976) and upheld the initiative on the majority of legal challenges. Two legal arguments require a factual determination to be decided: impairment of the City of Burien’s bonds that pledge transportation benefit district (TBD) revenues, and a challenge related to referencing a private company, Kelley Blue Book, in the initiative.

The judge rejected plaintiff coalition’s arguments that the initiative violated the state constitution’s provisions related to single subject and subject in title (article II, section 19) and amendment without reference (article II, section 37). The decision follows a full day of oral arguments on February 7.

AWC is part of a broad coalition of plaintiffs in the case filed in November. We were disappointed by the ruling, but we have always expected that the state Supreme Court will ultimately decide I-976’s constitutionality.

The Superior Court’s order retains the preliminary injunction imposed last fall while the factual issues are pending resolution. The injunction means that vehicle license fees will continue to be imposed under current law and distributed to the appropriate entities. As cities continue to receive TBD revenues, each will need to consider the best approach on whether and how to use those funds while the case is pending.

If the Washington State Supreme Court ultimately decides that I-976 is constitutional, state law requires the Department of Licensing to refund any overpaid vehicle license fees during the injunction period—including local vehicle license fees.

Please consult your city’s legal counsel for specific advice about how the court’s recent decision, injunction, and WSDOT project delays may impact your city.