SENATE BILL REPORT

                                    HB 1992

           AS REPORTED BY COMMITTEE ON TRANSPORTATION, APRIL 3, 1991

Brief Description:  Implementing advance right of way acquisitions.

SPONSORS:Representatives R. Fisher, Betrozoff, R. Meyers, Forner and Cantwell; by request of Department of Transportation.

HOUSE COMMITTEE ON TRANSPORTATION

SENATE COMMITTEE ON TRANSPORTATION

Majority Report:  Do pass as amended.

      Signed by Senators Patterson, Chairman; Nelson, Vice Chairman; von Reichbauer, Vice Chairman; Erwin, Madsen, Oke, Snyder, Thorsness, and Vognild. 

Staff:  Louise Bray Sandison (786‑7322)

Hearing Dates:April 2, 1991; April 3, 1991

BACKGROUND:

Under current law the Department of Transportation (DOT) is authorized to acquire rights of way between two and seven years in advance of programmed construction projects.  If federal money is available under Section 108, Title 23, United States Code, it is deposited into the advance right of way revolving fund, and the department is authorized to expend it without appropriation to acquire future rights of way.  When the DOT uses the right of way, it is required to reimburse the fund.  The DOT is authorized to expend monies in the fund without appropriation.

The cost of acquiring rights of way is rising, and the DOT would be able to reduce these acquisition costs if it had a reliable source of funds with which to acquire rights of way in advance of construction.

SUMMARY:

The Department of Transportation (DOT) is authorized to acquire rights of way not more than 10 years in advance of programed acquisition projects.  Property or property rights purchased must be in designated transportation corridors and be approved by the Transportation Commission as part of the state's six-year plan or included in the state's route development planning effort.

Initially, a deposit of $10 million from the motor vehicle fund is made into the advance right of way revolving fund.  In addition, all monies received by the DOT as rental income from real properties that are not subject to federal aid reimbursement, excluding moneys received from rental of capital facilities, are also deposited into the revolving fund.

The DOT is required to manage the properties in accordance with sound business practices.  When the property is used for a transportation project, the DOT shall reimburse the revolving fund at the current appraised value of the property.  If the DOT determines that a piece of property is not required for right of way, it may sell the property at fair market value.  Any monies acquired from such a sale shall be deposited into the revolving fund. 

The DOT is required to report to the Legislature and the Office of Financial Management (OFM) biennially regarding which properties were purchased and why, expenditures from the fund, and estimated savings to the state by virtue of the advance acquisition of rights of way.

Appropriation:  none

Revenue:  none

Fiscal Note:  available

SUMMARY OF PROPOSED SENATE AMENDMENT:

It is clarified that the revolving account may be used only for advance acquisition of highway right of way.

TESTIMONY FOR:

Allowing the Department of Transportation to acquire right of way well in advance of planned construction will reduce the cost of acquiring necessary transportation corridors.

TESTIMONY AGAINST:  None

TESTIFIED:  PRO:  Dennis Ingham, Phil Leach, Dept. of Transportation