SENATE BILL REPORT

                  SHB 2256

              As Reported By Senate Committee On:

                Ways & Means, February 26, 1996

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

Brief Description:  Authorizing certain public works projects.

Sponsors:  House Committee on Capital Budget (originally sponsored by Representatives Honeyford, Chopp, Keiser, Regala, Dickerson, Mason and Patterson; by request of Public Works Board and Department of Community, Trade, and Economic Development).

Brief History:

Committee Activity:  Ways & Means:  2/26/96 [DP].

SENATE COMMITTEE ON WAYS & MEANS

Majority Report:  Do pass.

  Signed by Senators Loveland, Vice Chair; Bauer, Cantu, Drew, Finkbeiner, Fraser, Hargrove, Hochstatter, Johnson, Kohl, Long, McDonald, Pelz, Quigley, Roach, Sheldon, Snyder, Spanel, Strannigan, Sutherland, West, Winsley and Wojahn.

Staff:  Cathy Baker (786-7708)

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 projects from the list, but it can neither add any projects nor 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.  Twenty million dollars of this amount 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.

Summary of Bill:  As recommended by the Public Works Board for fiscal year 1996, loans for 67 public works projects, totaling $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, totaling $43,203,009;

(2)  Eighteen sewer projects, totaling $36,150,717;

(3)  Seven road projects totaling, $9,629,289;

(4)  Three storm sewer projects, totaling $3,802,900; and

(5)  One bridge project, totaling $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:  No one.