SENATE BILL REPORT

                  SHB 1788

              As Reported By Senate Committee On:

                Transportation, March 28, 1995

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:  House Committee on Transportation (originally sponsored by Representatives K. Schmidt, Chandler, Mitchell and Robertson).

Brief History:

Committee Activity:  Transportation:  3/28/95 [DPA]

SENATE COMMITTEE ON TRANSPORTATION

Majority Report:  Do pass as amended.

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

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 Amended 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 may use non-18th amendment fund sources for nonhighway purposes such as transit.

Amended Bill Compared to Substitute Bill:  Technical changes are made.

Appropriation:  None.

Fiscal Note:  Not requested.

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

Testimony For:  None.

Testimony Against:  None.

Testified:  No one.