HOUSE BILL REPORT

HB 1446

BYRepresentatives Haugen, Ferguson, Sayan, S. Wilson, Jones, May, Dorn, Rasmussen and O'Brien; by request of Department of Community Development

Authorizing loans for emergency public works projects.

House Committe on Local Government

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (13)

      Signed by Representatives Haugen, Chair; Cooper, Vice Chair; Beck, Butterfield, Dorn, Ferguson, Hine, Jones, Nealey, Nelson, Nutley, Rayburn and Zellinsky.

House Staff:Steve Lundin (786-7127)

Rereferred House Committee on Ways & Means/Appropriations

Majority Report:  The substitute bill by Committee on Local Government be substituted therefor and the substitute bill do pass.  (22)

      Signed by Representatives Locke, Chair; Belcher, Braddock, Brekke, Bristow, Brough, Butterfield, Ebersole, Fuhrman, Grant, Grimm, Hine, McLean, Nealey, Peery, Sayan, Silver, H. Sommers, Spanel, Sprenkle, Wang and B. Williams.

AS REPORTED BY COMMITTEE ON WAYS & MEANS/APPROPRIATIONS

FEBRUARY 2, 1988

BACKGROUND:

Legislation was enacted in 1985 establishing the Public Works Assistance Account which is used as a source of money to make low-interest or interest-free loans to local governments for street and road, bridge, water system, and storm or sanitary sewer projects.  The loan program is administered by a thirteen member public works board, the members of which are appointed by the Governor.

The Board submits a list of projects to the Legislature that are recommended for such loans.  A loan may not be made for a project unless the project is included in a specific list of projects that is part of an appropriation of funds by the Legislature for such purposes.

SUMMARY:

SUBSTITUTE BILL:  The public works board is authorized to make loans for emergency public works projects that are not included within the specific list of projects contained in the appropriation for the Public Works Assistance Account.  Emergency loans only may be made from money appropriated for general emergency loan purposes within the Public Works Assistance Account, which cannot exceed five percent of the total amount appropriated.

These emergency loans may not be made for the amount of a project that is reimbursed from federal disaster or emergency funds, state disaster or emergency funds, insurance settlements, or litigation.  An attempt should be made to put emergency projects receiving such loans out for competitive bids, but such projects are not required to be put out for competitive bid.

The annual report to the Legislature on proposed projects to receive such loans must include a description of projects receiving emergency loans in the preceding fiscal year.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The five percent limitation was added.  An attempt to put these projects out to bid should be made.  The reporting requirement was added.

CHANGES PROPOSED BY COMMITTEE ON WAYS & MEANS/APPROPRIATIONS:  None.

Fiscal Note:      Requested January 27, 1988.

House Committee ‑ Testified For:    (Local Government)  Pete Butkus, Department of Community Development; Gary Lowe, Washington State Association of Counties; Jim Justin, Association of Washington Cities; and Duke Schaub, Association of General Contractors.

(Ways & Means/Appropriations)  Pete Butkus, Department of Community Development; and Jim Justin, Association of Washington Cities.

House Committee - Testified Against:      (Local Government)  None Presented.

(Ways & Means/Appropriations)  None Presented.

House Committee - Testimony For:    (Local Government)  Emergency projects are unforeseen.  A source of funding for smaller emergency public works projects is needed.

(Ways & Means/Appropriations)  Natural disasters such as lightning strikes and landslides sometimes damage public works.  Health or safety considerations require immediate rehabilitation of these facilities.

House Committee - Testimony Against:      (Local Government)  None Presented.

(Ways & Means/Appropriations)  None Presented.