SENATE BILL REPORT

                  SSB 6273

              As Passed Senate, February 10, 1996

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:  Ways & Means:  1/24/96, 1/25/96 [DPS].

Passed Senate, 2/10/96, 48-0.

SENATE COMMITTEE ON WAYS & MEANS

Majority Report:  That Substitute Senate Bill No. 6273 be substituted therefor, and the substitute bill do pass.

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

Staff:  Cathy Baker (786-7708)

Background:  The public works trust fund was created by the Legislature in 1985 as a revolving loan fund 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, is authorized to make low-interest or interest-free loans to finance the repair, replacement or improvement of the following public works systems:  bridges, roads, water systems, and sanitary and storm sewer projects.  Growth-related public works projects, port districts and school districts are not eligible to receive loans through the Public Works Board.

The public works trust fund receives its funding from utility and sales taxes on water, sewer and garbage collection, from a portion of the real estate excise tax, and from loan repayments.  The Department of Community, Trade, and Economic Development received an appropriation of $148,900,000 from the public works trust fund for the 1995-97 biennium.

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

Summary of Bill:  As recommended by the Public Works Board for fiscal year 1996, the following are authorized:  loans for 67 public works projects totaling $96,785,915.

The public works projects authorized for funding fall into the following categories:

(1)38 water projects for a total of 43,203,009;

(2)18 sewer projects for a total $36,150,717;

(3) 7  road projects for a total of $9,629,289;

(4) 3 storm sewer projects for a total of $3,802,900; and

(5) 1 bridge project for a total of $4,000,000.

Appropriation:  None.

Fiscal Note:  Not requested.

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

Testimony For:  The public works trust fund, in addition to providing vital infrastructure financing for local governments, creates jobs and fosters economic activity through construction projects.

Testimony Against:  None.

Testified:  PRO:  Pete Butkus, Department of Community, Trade, & Economic Development; Allan Darr, Operating Engineers, Local 302; Duke Schaub, Associated General Contractors; Dan Sexton, WA State Association of Plumbers & Pipefitters.