H-2282.1          _______________________________________________

                            SUBSTITUTE HOUSE BILL 1788

                  _______________________________________________

State of Washington              54th Legislature             1995 Regular Session

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

Read first time 03/03/95.

Providing for more flexibility in the motor vehicle fund distributions to cities and counties.

     AN ACT Relating to increasing flexibility in motor vehicle fund distributions to cities and counties; amending RCW 46.68.115; and adding a new section to chapter 46.68 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  A new section is added to chapter 46.68 RCW to read as follows:

     For the  motor vehicle fund tax distributions to cities, towns, and counties provided for in RCW 46.68.090(1) (i) and (j), after the required deductions in RCW 46.68.110 and 46.68.120, the treasurer shall retain those amounts, or a portion thereof, in the motor vehicle fund and distribute a like amount from any other fund or account used for transportation purposes that is not restricted by the eighteenth amendment of the state Constitution.  Such funds or accounts include but are not limited to, the transportation fund, the Puget Sound ferry operating account, the marine operating account, and the Puget Sound capital construction account.  The motor vehicle fuel tax distribution may be retained and a like amount distributed from a fund or account that is not restricted by the eighteenth amendment of the state Constitution, only if the following conditions are met:

     (1) A request is made by the authorized agent of the local government to the state treasurer; and

     (2) The department of transportation has determined that sufficient non-eighteenth amendment revenues are available to meet the department's legislative mandates.  The department is authorized to transfer any appropriation made from any fund or account that is not restricted by the eighteenth amendment of the state Constitution to the motor vehicle fund-state provided there is adequate revenue in the motor vehicle fund-state account and provided that such funds can be used for activities permitted under the eighteenth amendment.

     The state treasurer shall adjust the motor vehicle fund distributions within sixty days of the request made by the authorized agent of the local government.  The state treasurer shall submit the adjusted distributions to the requesting locality and shall notify that locality of the portion of the distribution from non-eighteenth amendment sources that is available for nonhighway purposes.

     Sec. 2.  RCW 46.68.115 and 1987 c 234 s 1 are each amended to read as follows:

     The sums distributed to cities and towns as set forth in ((subsection (2) of)) RCW 46.68.100(2) shall be allocated between them as provided by RCW 46.68.110((, subject to the provisions of RCW 35.76.050,)) to be used exclusively:  For the construction, improvement, chip sealing, seal-coating, and repair of arterial highways and city streets as those terms are defined in RCW 46.04.030 and 46.04.120; for the maintenance of arterial highways and city streets for those cities with a population of less than fifteen thousand; ((or)) for the payment of any municipal indebtedness which may be incurred in the construction, improvement, chip sealing, seal-coating, and repair of arterial highways and city streets; or for public transportation purposes if the cities and towns choose to transfer this distribution for revenues from the funds and accounts that are not restricted by the eighteenth amendment, as provided for in section 1 of this act.

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