Z-1097.3          _______________________________________________

                                  HOUSE BILL 2730

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State of Washington              54th Legislature             1996 Regular Session

By Representatives McMahan, Sterk and K. Schmidt; by request of Transportation Improvement Board

Read first time 01/17/96.  Referred to Committee on Transportation.

Adjusting deductions to the city hardship assistance account.

     AN ACT Relating to deductions from motor vehicle funds to cities and towns; and reenacting and amending RCW 46.68.110.

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

     Sec. 1.  RCW 46.68.110 and 1991 sp.s. c 15 s 46 and 1991 c 342 s 59 are each reenacted and amended to read as follows:

     Funds credited to the incorporated cities and towns of the state as set forth in ((subdivision (1) of)) RCW 46.68.100(1) shall be subject to deduction and distribution as follows:

     (1) One and one-half percent of such sums shall be deducted monthly as such sums are credited and set aside for the use of the department of transportation for the supervision of work and expenditures of such incorporated cities and towns on the city and town streets thereof, including the supervision and administration of federal-aid programs for which the department of transportation has responsibility:  PROVIDED, That any moneys so retained and not expended shall be credited in the succeeding biennium to the incorporated cities and towns in proportion to deductions herein made;

     (2) Thirty-three one-hundredths of one percent of such funds shall be deducted monthly, as such funds accrue, and set aside for the use of the department of transportation for the purpose of funding the cities' share of the costs of highway jurisdiction studies and other studies.  Any funds so retained and not expended shall be credited in the succeeding biennium to the cities in proportion to the deductions made;

     (3) ((From April 1, 1992, two)) One percent of such funds shall be deducted monthly, as such funds accrue, to be deposited in the city hardship assistance account, hereby created in the motor vehicle fund, to implement the city hardship assistance program, as provided in RCW 47.26.164.  However, any moneys so retained and not required shall be credited in the succeeding biennium to the incorporated cities and towns in proportion to deductions under this subsection.  Any such moneys so retained and not required on July 1, 1996, must be credited and distributed by December 31, 1996;

     (4) The balance remaining to the credit of incorporated cities and towns after such deduction shall be apportioned monthly as such funds accrue among the several cities and towns within the state ratably on the basis of the population last determined by the office of financial management.

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