HOUSE BILL REPORT

                  HB 1788

             As Reported By House Committee On:

                       Transportation

Title:  An act relating to increasing flexibility in motor vehicle fund distributions to cities and counties.

Brief Description:  Providing for more flexibility in the motor vehicle fund distributions to cities and counties.

Sponsors:  Representatives K. Schmidt, Chandler, Mitchell and Robertson.

Brief History:

  Committee Activity:

Transportation:  2/22/95, 2/28/95 [DPS].

HOUSE COMMITTEE ON TRANSPORTATION

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  Signed by 24 members:  Representatives K. Schmidt, Chairman; Benton, Vice Chairman; Mitchell, Vice Chairman; Skinner, Vice Chairman; Hatfield, Assistant Ranking Minority Member; Backlund; Blanton; Brown; Buck; Cairnes; Chandler; Chopp; Hankins; Horn; Johnson; Koster; McMahan; Ogden; Quall; Robertson; Romero; D. Schmidt; Scott and Tokuda.

Minority Report:  Do not pass.  Signed by 1 member:  Representative R. Fisher, Ranking Minority Member.

Staff:  Robin Rettew (786-7306).

Background:  The 23-cent state fuel tax is expected to generate about $1.3 billion in 1995-97.  Of this, $0.4 million will be directly distributed to cities and counties.

Cities receive 2.46 cents of the 23-cent state fuel tax and counties receive 4.43 cents of the 23-cent state fuel tax.

Use of motor vehicle funds is restricted by the 18th Amendment of the state constitution to highway purposes.

Summary of Substitute Bill:  Cities and counties are allowed to transfer state motor vehicle fund distributions for non-18th Amendment sources on a dollar-for-dollar basis.  Cities and counties could use non-18th Amendment fund sources for nonhighway purposes such as transit.

Substitute Bill Compared to Original Bill:  The substitute bill allows any fund sources not subject to the 18th Amendment to be transferred for motor vehicle fund distributions to cities and counties on a dollar-per-dollar basis.  The original bill limited the transfer between the motor vehicle and transportation funds.

Appropriation:  None.

Fiscal Note:  Not Requested.

Effective Date of Substitute Bill:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  None.

Testimony Against:  None.

Testified:  None.