HOUSE BILL REPORT

                  HB 1402

             As Reported By House Committee On:

               Transportation Policy & Budget

Title:  An act relating to the financing of street, road, and highway projects.

Brief Description:  Providing additional alternatives for financing street, road, and highway projects.

Sponsors:  Representatives Ogden, Carlson, Fisher, Blalock, O'Brien and Doumit.

Brief History:

Committee Activity:

Transportation Policy & Budget:  2/12/97, 3/6/97 [DPS].

HOUSE COMMITTEE ON TRANSPORTATION POLICY & BUDGET

Majority Report:  The substitute bill be substituted therefor and the substitute bill 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; Buck; Cairnes; Chandler; Constantine; DeBolt; Gardner; Hatfield; Johnson; Murray; O'Brien; Radcliff; Robertson; Romero; Scott; Skinner; Sterk; Wood and Zellinsky.

Staff:  Gene Baxstrom (786-7303).

Background:  Cities and counties are permitted to contract with property owners for street improvements which are required as a prerequisite to further property development.  For up to 15 years, partial reimbursement to those property owners may be required from other property owners who are determined to have benefitted from those improvements and who did not contribute to the original cost of the street projects.  A county, city or the state Department of Transportation (DOT) may also join in the financing of a project and be reimbursed the same as owners of real estate.

Summary of Substitute Bill:  The DOT is authorized to contract with property owners for highway improvements which are required as a prerequisite to further property development. 

A city, town or county is authorized to create an assessment reimbursement area on its own initiative, without participation of a private property owner, to finance the costs and to receive reimbursements from later development.  The DOT is also authorized to be the sole participant in such agreements.

Substitute Bill Compared to Original Bill:  The reference to expanded use of latecomer fees for roads and highways is eliminated.

Appropriation:  None.

Fiscal Note:  Not requested.

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

Testimony For:  This bill allows greater flexibility for cities, counties and the DOT to implement assessment reimbursement area fees.

Testimony Against:  None.

Testified:  Paula Hammond, Department of Transportation (pro); Craig Pridemore, Clark County  Department of Public Works (pro); and Dick Ducharme, Building Industry Association of Washington (neutral).