AN ACT
Relating to accelerating the implementation of projects currently eligible for
funding under the public works assistance program; amending RCW 43.155.070;
adding a new section to chapter 43.155 RCW; and creating a new section.
BE IT ENACTED BY THE LEGISLATURE
OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1. The
legislature finds that there continues to exist a great need for capital
projects to plan, acquire, design, construct, and repair local government
streets, roads, bridges, water systems, and storm and sanitary sewage systems.
It is the purpose of this act to accelerate the construction of these projects
under the public works assistance program.
NEW
SECTION. Sec. 2. A new
section is added to chapter 43.155 RCW to read as follows:
(1)
The board may make low-interest or interest-free loans to local governments for
preconstruction activities on public works projects before the legislature
approves the construction phase of the project. Preconstruction activities
include design, engineering, bid-document preparation, environmental studies,
right of way acquisition, and other preliminary phases of public works projects
as determined by the board. The purpose of the loans authorized in this
section is to accelerate the completion of public works projects by allowing
preconstruction activities to be performed before the approval of the
construction phase of the project by the legislature.
(2)
Projects receiving loans for preconstruction activities under this section must
be evaluated using the priority process and factors in RCW 43.155.070(2). The
receipt of a loan for preconstruction activities does not ensure the receipt of
a construction loan for the project under this chapter. Construction loans for
projects receiving a loan for preconstruction activities under this section are
subject to legislative approval under RCW 43.155.070 (4) and (5). The board
shall adopt a single application process for local governments seeking both a
loan for preconstruction activities under this section and a construction loan
for the project.
(3)
Preconstruction activity loans under this section may be made only from those
funds specifically appropriated from the public works assistance account for
such a purpose by the legislature.
Sec.
3. RCW
43.155.070 and 1993 c 39 s 1 are each amended to read as follows:
(1) To
qualify for loans or pledges under this chapter the board must determine that a
local government meets all of the following conditions:
(a)
The city or county must be imposing a tax under chapter 82.46 RCW at a rate of
at least one-quarter of one percent;
(b)
The local government must have developed a long-term plan for financing public
works needs;
(c)
The local government must be using all local revenue sources which are
reasonably available for funding public works, taking into consideration local
employment and economic factors; and
(d) A
county, city, or town that is required or chooses to plan under RCW 36.70A.040
must have adopted a comprehensive plan in conformance with the requirements of
chapter 36.70A RCW, after it is required that the comprehensive plan be
adopted, and must have adopted development regulations in conformance with the
requirements of chapter 36.70A RCW, after it is required that development
regulations be adopted.
(2)
The board shall develop a priority process for public works projects as
provided in this section. The intent of the priority process is to maximize
the value of public works projects accomplished with assistance under this
chapter. The board shall attempt to assure a geographical balance in assigning
priorities to projects. The board shall consider at least the following
factors in assigning a priority to a project:
(a)
Whether the local government receiving assistance has experienced severe fiscal
distress resulting from natural disaster or emergency public works needs;
(b)
Whether the project is critical in nature and would affect the health and
safety of a great number of citizens;
(c)
The cost of the project compared to the size of the local government and amount
of loan money available;
(d)
The number of communities served by or funding the project;
(e)
Whether the project is located in an area of high unemployment, compared to the
average state unemployment;
(f)
Whether the project is the acquisition, expansion, improvement, or renovation
by a local government of a public water system that is in violation of health
and safety standards, including the cost of extending existing service to such
a system;
(g)
The relative benefit of the project to the community, considering the present
level of economic activity in the community and the existing local capacity to
increase local economic activity in communities that have low economic growth;
and
(h)
Other criteria that the board considers advisable.
(3)
Existing debt or financial obligations of local governments shall not be
refinanced under this chapter. Each local government applicant shall provide documentation
of attempts to secure additional local or other sources of funding for each
public works project for which financial assistance is sought under this
chapter.
(4)
Before November 1 of each year, the board shall develop and submit to the ((chairs
of the ways and means)) appropriate fiscal committees of the senate
and house of representatives a description of the ((emergency)) loans
made under RCW 43.155.065, section 2 of this act, and subsection (7) of this
section during the preceding fiscal year and a prioritized list of projects
which are recommended for funding by the legislature, including one copy to the
staff of each of the committees. The list shall include, but not be limited
to, a description of each project and recommended financing, the terms and
conditions of the loan or financial guarantee, the local government
jurisdiction and unemployment rate, demonstration of the jurisdiction's
critical need for the project and documentation of local funds being used to
finance the public works project. The list shall also include measures of
fiscal capacity for each jurisdiction recommended for financial assistance,
compared to authorized limits and state averages, including local government
sales taxes; real estate excise taxes; property taxes; and charges for or taxes
on sewerage, water, garbage, and other utilities.
(5)
The board shall not sign contracts or otherwise financially obligate funds from
the public works assistance account before the legislature has appropriated
funds for a specific list of public works projects. The legislature may remove
projects from the list recommended by the board. The legislature shall not
change the order of the priorities recommended for funding by the board.
(6)
Subsection((s (4) and)) (5) of this section ((do)) does
not apply to loans made ((for emergency public works projects)) under
RCW 43.155.065, section 2 of this act, and subsection (7) of this section.
(7)(a)
Loans made for the purpose of capital facilities plans shall be exempted from
subsection((s (4) and)) (5) of this section. In no case shall the total
amount of funds utilized for capital facilities plans and emergency loans
exceed the limitation in RCW 43.155.065.
(b)
For the purposes of this section "capital facilities plans" means
those plans required by the growth management act, chapter 36.70A RCW, and
plans required by the public works board for local governments not subject to
the growth management act.
