HOUSE BILL REPORT

HB 748

BYRepresentatives Baugher, Day, D. Sommers, Doty, Dellwo, Hankins, Cooper and Betrozoff; by request of Urban Arterial Board

Changing apportionment provisions for funds in the urban arterial trust account.

House Committe on Transportation

Majority Report:     Do pass.  (16)

     Signed by Representatives Walk, Chair; Baugher, Vice Chair; Cooper, Day, Dellwo, Doty, Fisch, Fisher, Gallagher, Hankins, Prince, C. Smith, D. Sommers, Sutherland, Vekich and K. Wilson.

Minority Report:     Do not pass.  (7)

     Signed by Representatives Heavey, Kremen, Meyers, Schmidt, Spanel, S. Wilson and Zellinsky.

House Staff:Gene Schlatter (786-7316)

AS PASSED HOUSE MARCH 10, 1987

BACKGROUND:

The current formula for apportionment of Urban Arterial trust funds to specific regions of the state is based on three criteria:  1) population, 2) "state" highway vehicle miles, and 3) "state" highway needs as defined by the Washington State Department of Transportation Category A six-year program.  Use of "state" highway data was developed as a stop gap measure in the absence of credible city and county needs information.

Also, at the beginning of each biennium, state statute requires the Urban Arterial Board (UAB) to establish new apportionment factors to be used on all funds deposited into the Urban Arterial Trust Account during the biennium.  When the legislature authorizes a new bond program, the UAB will obligate most of the amount at the beginning of the biennium.  However, most projects begin construction between 24 and 36 months from the time of original approval which means different apportionment factors may apply, thereby making the process of administration unmanageable.

SUMMARY:

The formula criteria for apportionment of the Urban Arterial Trust Fund is changed by replacing "state" highway needs (Category A) and "state" vehicle miles with city and county needs and city and county vehicle miles.

A second change relates to the apportionment of bond proceeds.  These proceeds will be apportioned using the apportionment factors for the biennium in which the bond authorization authority is obligated, rather than when construction on the new projects is started.

EFFECT OF SENATE AMENDMENT(S):  Agencies submitting projects to the Urban Arterial Board (UAB) with costs exceeding $1 million must furnish the UAB with a value engineering study.  The study must be performed by an interagency team approved by the UAB.  The UAB may waive the study requirement on projects costing over $1 million if the study is unnecessary.  The UAB may require an interagency value engineering study on projects costing less than $1 million if the study is warranted.

Fiscal Note:    Not Requested.

House Committee ‑ Testified For:     Bill Hordan, Urban Arterial Board (UAB); Bob Plaquet, Urban Arterial Board.

House Committee - Testified Against: None Presented.

House Committee - Testimony For:     By changing the formula to city/county needs and vehicle miles, the regional distribution of UAB funds will be more equitable.

House Committee - Testimony Against: None Presented.

VOTE ON FINAL PASSAGE:

     Yeas 77; Nays 20; Excused 1

Voting Nay:     Representatives Amondson, Barnes, Beck, Betrozoff, Brough, Ferguson, Fisch, Fuhrman, Hine, Holland, Kremen, May, Miller, Patrick, Sanders, Schmidt, Schoon, Walker, J. Williams and S. Wilson

Excused:   Representative Doty