HOUSE BILL REPORT

                  HB 1012

                       As Passed House

                      February 3, 1997

Title:  An act relating to state highway bonds.

Brief Description:  Authorizing highway bonds.

Sponsors:  By House Committee on Transportation Policy & Budget (originally sponsored by Representatives Cairnes, Skinner, Hankins, Robertson, Chandler, Mitchell, B. Thomas, L. Thomas, Cooke and Mielke).

Brief History:

Committee Activity:

Transportation Policy & Budget:  1/13/97, 1/16/97 [DP].

Floor Activity:

Passed House: 2/3/97, 97-0.

HOUSE COMMITTEE ON TRANSPORTATION POLICY & BUDGET

Majority Report:  Do pass.  Signed by 26 members:  Representatives K. Schmidt, Chairman; Hankins, Vice Chairman; Mielke, Vice Chairman; Mitchell, Vice Chairman; Fisher, Ranking Minority Member; Blalock, Assistant Ranking Minority Member; Cooper, Assistant Ranking Minority Member; Backlund; Cairnes; Chandler; Constantine; DeBolt; Gardner; Hatfield; Johnson; Murray; O'Brien; Ogden; Radcliff; Robertson; Romero; Scott; Skinner; Sterk; Wood and Zellinsky.

Staff:  Brad Lovaas (786-7307).

Background:  The Special Category AC@ program was established to finance major highway construction projects that could not be accomplished as part of the regular construction program.  The three projects are:  1) Division Street (north-south route) in Spokane; 2) 1st Avenue South bridge in Seattle; and 3) SR 18 from I-5 to I-90 in southeast King County.

In 1990 the Legislature dedicated 3/4 of 1 cent of the motor vehicle fuel tax to the Special Category AC@ program.  In 1993 the Legislature authorized the sale of $240 million of general obligation bonds for the construction of the three projects mentioned above, and pledged 3/4 of 1 cent to debt service.

Summary of Bill:  The bond authorization for the Special Category AC@ program is increased by $60 million, from $240 million to $300 million.  This additional bond authorization is applied to projects in the Special Category AC@ program.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  A bond authorization increase of $60 million can be supported due to lower interest rates.

Testimony Against:  None.

Testified:  Helga Morgenstern, Department of Transportation.