HOUSE BILL REPORT

                  HB 2302

             As Reported By House Committee on:

               Capital Facilities & Financing

Title:  An act relating to appropriations for projects recommended by the public works board.

Brief Description:  Allocating moneys for public works projects recommended by the public works board.

Sponsor(s):  Representatives H. Sommers, Miller, Rasmussen, Jones, Orr and P. Johnson; by request of Department of Community Development.

Brief History:

  Reported by House Committee on:

Capital Facilities & Financing, January 29, 1992, DPS.

HOUSE COMMITTEE ON

CAPITAL FACILITIES & FINANCING

Majority Report: The substitute bill be substituted therefor and the substitute bill do pass.  Signed by 13 members:  Representatives H. Sommers, Chair; Rasmussen, Vice Chair; Schmidt, Ranking Minority Member; Neher, Assistant Ranking Minority Member; Beck; Brough; Casada; Fraser; Heavey; Jacobsen; Ogden; Peery; and Wang.

Staff:  Kenny Pittman (786-7392).

Background:  The Public Works Trust Fund was created by the Legislature in 1985 as a revolving loan fund program to assist local governments and special districts with infrastructure development.  The Public Works Board, within the Department of Community Development, is authorized to make low-interest or interest-free loans to finance the repair, replacement or improvement of essential public works systems: bridges, roads, water systems, and sanitary and storm sewer projects.  Growth-related public works projects, port districts and school districts are not eligible to receive funding through the Public Works Trust Fund.

Each year, the Public Works Board submits a list of projects to the Legislature for approval.  The Legislature may delete a project from the list but may not add any projects or change the order of project priorities.  The Public Works Trust Fund receives its revenue from dedicated revenue from utility and sales taxes on water, sewer, and garbage collection and from a portion of the real estate excise tax.

Summary of Substitute Bill:  The bill authorizes loans for 46 public works projects totaling $42,678,008 and a $1,000,000 loan pool for future emergency public works projects, all recommended by the Public Works Board for fiscal year 1992.  The appropriation for these projects was included in the 1991-1993 capital budget.

The public works projects authorized for funding are broken into the following categories: (1) 16 water projects for a total of $13,467,114; (2) 14 sanitary sewer projects for a total of $16,030,744; (3) eight planning projects for a total of $183,750; (4) seven road projects for a total of $12,288,400; and (5) one bridge project for a total of $708,000.

Substitute Bill Compared to Original Bill:  The substitute bill includes the $1,000,000 loan pool that may be used to finance unforseen emergency public works projects during fiscal year 1992.

Fiscal Note:  Not requested.

Effective Date of Substitute Bill:  The bill contains an emergency clause and takes effect immediately.

Testimony For:  This is a well-run program that helps local governments with essential public works, often involving public health and safety.

Testimony Against:  None.

Witnesses:  in favor: Robert C. Anderson, Public Works Board; Pete Butkus, Department of Community Development; David Beach, Clark County; Bill Whitcomb, city of Vancouver; Charles Shell, city of Seattle; Gary Lowe, Washington State Association of Counties; and Jim Justin, Association of Washington Cities.