SENATE BILL REPORT

                  SHB 1273

              As Reported By Senate Committee On:

                 Transportation, April 3, 1995

Title:  An act relating to refunding motor vehicle fuel and special fuel taxes to Indian tribes.

Brief Description:  Refunding motor vehicle fuel and special fuel taxes to Indian tribes.

Sponsors:  House Committee on Transportation (originally sponsored by Representatives Fuhrman, Blanton, Elliot and McMorris).

Brief History:

Committee Activity:  Transportation:  3/22/95, 4/3/95 [DPA].

SENATE COMMITTEE ON TRANSPORTATION

Majority Report:  Do pass as amended.

  Signed by Senators Owen, Chair; Heavey, Vice Chair; Fairley, Kohl, Morton, Oke, Prentice, Prince, Rasmussen, Schow, Sellar and Wood.

Staff:  Brian McMorrow (786-7304)

Background:  Washington State imposes taxes upon the distribution, sales, transfer, use or possession of motor vehicle fuel and diesel and other special fuels within the state.  Revenues from these taxes are used exclusively for highway purposes.

Summary of Amended Bill:  The Department of Licensing may enter into an agreement with any federally recognized Indian tribe located on a reservation within Washington State regarding the imposition, collection or use of motor fuel tax or special fuel tax.  The terms of the agreement must be substantially the same as the following cases:   Teo, et al. v. Steffensen, et al. or Confederated Tribes of the Colville Reservation v. DOL, et al.

Amended Bill Compared to Substitute Bill:  The amended bill eliminates the statement regarding pricing of fuels below market cost and unfair competition.

Appropriation:  None.

Fiscal Note:  Available.

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

Testimony For:  The bill makes it possible for the Department of Licensing to enter into agreements with Indian nations with regard to the collection of motor fuel tax and special fuel tax.

Testimony Against:  None.

Testified:  PRO:  Mike Sciacca, Washington Oil Marketers Assn.; Tim Hamilton, Automotive Trade Assn.; Robert Fately, Bob's Texaco; Jim Wadsworth, Jeff Lane, Fronda Woods, DOL; Dawn Vyvyan, Yakima Indian Nation.