FINAL BILL REPORT

HB 825

                                  C 234 L 87

BYRepresentatives Walk and Fisher

Revising motor vehicle fund uses.

House Committe on Transportation

Senate Committee on Transportation

SYNOPSIS AS ENACTED

BACKGROUND:

Cities and towns receive 11.53 percent of the 17 cent portion of the state fuel tax.  Of that distribution, 6.92 percent must be used for municipal street purposes, and 4.61 percent must be used for arterial highways and city streets.

Distributions must be used for the following purposes:  1) the construction, improvement and repair of arterial highways and city streets; 2) the maintenance of city streets as approved by the Department of Transportation State-Aid Engineer for cities with populations of 5,000 or less (larger cities may not use distributions for maintenance); and 3) the payment of any municipal indebtedness incurred in the construction, improvement and repair of arterial highways and city streets.

SUMMARY:

Distributions of the fuel tax to cities and towns may be used for chip-sealing and seal coating on arterial highways and city streets.  Distributions may also be used for maintenance of arterial highways, as well as for streets in cities with a population of 15,000 or less.  Approval by the Department of Transportation State-Aid Engineer is no longer required.  Distributions may be used to pay for municipal indebtedness incurred for chip sealing and seal-coating.

VOTES ON FINAL PASSAGE:

      House 96   0

      Senate    46     0

EFFECTIVE:July 26, 1987