SENATE BILL REPORT

                                    SB 5546

                              AS OF MARCH 5, 1991

Brief Description:  Providing funds for mass rail transit.

SPONSORS:Senators Vognild, Bailey, Pelz, Johnson, Moore, Conner, Williams, Talmadge, Niemi, A. Smith, Murray, Bluechel, Rinehart, Snyder and Bauer.

SENATE COMMITTEE ON TRANSPORTATION

Staff:  Gene Baxstrom (786‑7303)

Hearing Dates:March 5, 1991

BACKGROUND:

Effective April 1, the state will collect a 23 cent per gallon tax on motor vehicle fuel.  The 18th Amendment to the State Constitution requires that all fees collected by the state as license fees for motor vehicles and excise taxes collected on the sale, distribution or use of motor vehicle fuel be placed into a special fund to be used exclusively for highway purposes.  Purposes include operating, engineering and legal expenses connected with administration of public highways and local roads and streets; construction, reconstruction, maintenance and repair of public roads which include traffic signals, policing, operation of bridges, and ferries; refunds on motor vehicle fuels; and cost of collection of revenues.

SUMMARY:

State motor fuel tax is increased by 1 cent per gallon with those additional revenues dedicated to the intrastate rapid rail account which is created in the motor vehicle fund.  Moneys in this account are to be used exclusively for development and construction of intrastate rapid rail transportation and may not be otherwise used for planning purposes.  State rapid rail transportation is declared a public highway to be part of the highway system as administered by the Department of Transportation. 

Prevailing wage rate is determined within this chapter and must be used on all public works projects for the development and construction of intrastate rapid rail transportation.

Appropriation:  none

Revenue:

Fiscal Note:  available