FINAL BILL REPORT

                 SHB 2730

                          C 94 L 96

                     Synopsis as Enacted

Brief Description:  Adjusting deductions to the city hardship assistance account.

Sponsors:  House Committee on Transportation (originally sponsored by Representatives McMahan, Sterk and K. Schmidt; by request of Transportation Improvement Board).

House Committee on Transportation

Senate Committee on Transportation

Background:  Based on recommendations of a committee of state, city, and county officials, the Legislature in 1991 shifted jurisdictional responsibility for several state and local roads.  The state took over responsibility for some local roads, and some cities and counties took over state highways.  The city hardship assistance account (CHAA) was created to help fund preservation projects on roadways taken over by cities with a population under 20,000.  Twelve cities currently are eligible for grants from the account.  Since April 1992, 2 percent of the state gas tax allocated to cities has been deposited into the account.  This allocation generates about $1.4 million per year, about twice the amount needed for the program.  The fund balance in the account at the end of the 1995-97 biennium will be about $4 million.

Summary:  The percentage of city gas tax revenue going to the CHAA is reduced from 2 percent to 1 percent.  Any fund balance in the account that is not required to carry out the program shall be returned to cities and towns, according to the normal city gas tax distribution.  The amount to be redistributed shall be determined as of July 1, 1996, and July 1 of each odd-numbered year thereafter, and shall be provided to the treasurer within 60 days.

Votes on Final Passage:

House     97 0

Senate    49 0

Effective:  June 6, 1996