SENATE BILL REPORT

                  SHB 1396

              As Reported By Senate Committee On:

               Transportation, February 23, 1996

Title:  An act relating to state highway bonds.

Brief Description:  Authorizing highway bonds.

Sponsors:  House Committee on Transportation (originally sponsored by Representatives K. Schmidt and R. Fisher).

Brief History:

Committee Activity:  Transportation:  2/21/96, 2/23/96 [DP].

SENATE COMMITTEE ON TRANSPORTATION

Majority Report:  Do pass.

  Signed by Senators Owen, Chair; Heavey, Vice Chair; Goings, Haugen, Morton, Prentice, Prince, Rasmussen, Schow, Thibaudeau and Wood.

Staff:  Brad Lovaas (786-7307)

Background:  The Special Category "C" program was established to finance major highway construction projects that could not be accomplished as part of the regular construction program.  The three projects are:  1) Division Street (north-south route) in Spokane; 2) 1st Avenue South Bridge in Seattle; and 3) SR 18 from I-5 to I-90 in southeast King County.

In 1990 the Legislature dedicated 3/4 of 1 cent of the motor vehicle fuel tax to the Special Category "C" program.  In 1993 the Legislature authorized the sale of $240 million of general obligation bonds for the construction of the three projects mentioned above, and pledged the 3/4 of 1 cent to debt service. 

Summary of Bill:  The bond authorization for the Special Category "C" program is increased by $60 million, from $240 to $300 million.  This additional bond authorization is applied to the shortfall in order to fully fund the SR 18 project.

Appropriation:  None.

Fiscal Note:  Not requested.

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

Testimony For:  Lower interest rates provide an opportunity to increase bonds within the revenue stream provided for debt service.

Testimony Against:  None.

Testified:  Helga Morgenstern, WSDOT (pro).