HOUSE BILL REPORT

                 SSB 6273

             As Reported By House Committee On:

                       Capital Budget

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

Brief Description:  Authorizing certain public works projects.

Sponsors:  Senate Committee on Ways & Means (originally sponsored by Senators Quigley, West, Goings, Wood, Winsley, Spanel and Haugen; by request of Public Works Board and Department of Community, Trade, and Economic Development).

Brief History:

  Committee Activity:

Capital Budget:  2/20/96, 2/23/96 [DP].

HOUSE COMMITTEE ON CAPITAL BUDGET

Majority Report:  Do pass.  Signed by 14 members:  Representatives Sehlin, Chairman; Ogden, Ranking Minority Member; Chopp, Assistant Ranking Minority Member; Costa; Hankins; Koster; Mitchell; Pennington; Regala; Romero; Silver; D. Sommers; L. Thomas and Valle.

Staff:  Karl Herzog (786-7271).

Background:  The public works assistance account, commonly known as the public works trust fund, was created by the Legislature in 1985 as a revolving loan program to assist local governments and special purpose districts with infrastructure projects.  The Public Works Board, within the Department of Community, Trade and Economic Development (CTED), is authorized to make low-interest or interest-free loans from the account to finance the repair, replacement, or improvement of the following public works systems:bridges, roads, water systems, and sanitary and storm sewer projects.  Neither port districts nor school districts are eligible to receive loans from the account.

The account receives dedicated revenue from utility and sales taxes on water, sewer service, and garbage collection; from a portion of the real estate excise tax; and from loan repayments.

Each year, the Public Works Board is required to submit a list of public works projects to the Legislature for approval.  The Legislature may delete a project from the list, but may not add any project or change the order of project priorities.

The public works assistance account appropriation is made in the capital budget, but the project list is submitted annually in separate legislation.

CTED received an appropriation of $148.9 million from the public works assistance account in the 1995-97 Capital Budget.  Of this amount, $20 million was provided specifically for pre-construction activity loans under Chapter 363, Laws of 1995.  The remaining $128.9 million is available for public works project loans, divided between fiscal year 1996 and fiscal year 1997.

Summary of Bill:  As recommended by the Public Works Board for fiscal year 1996, loans for 67 public works projects, totalling $96,785,915, are authorized to be issued from the public works assistance account using funds previously appropriated in the capital budget.  These projects fall into the following categories:

(1)  thirty-eight water projects, totalling $43,203,009;

(2)  eighteen sewer projects, totalling $36,150,717;

(3)  seven road projects, totalling $9,629,289;

(4)  three storm sewer projects, totalling $3,802,900; and

(5)  one bridge project, totalling $4,000,000.

Appropriation:  None.

Fiscal Note:  Not requested.

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

Testimony For:  None.

Testimony Against:  None.

Testified:  None.