SENATE BILL REPORT

                   SB 6134

              As Passed Senate, February 11, 1998

Title:  An act relating to fuel taxes attributable to marine and nonhighway uses.

Brief Description:  Freeing the base for transfers of marine and nonhighway fuel taxes.

Sponsors:  Senators Oke, Rasmussen, Benton and Fraser.

Brief History:

Committee Activity:  Natural Resources & Parks:  1/30/98 [DP].

Passed Senate, 2/11/98, 44-0.

SENATE COMMITTEE ON NATURAL RESOURCES & PARKS

Majority Report:  Do pass.

  Signed by Senators Oke, Chair; Rossi, Vice Chair; Hargrove, Jacobsen, Morton, Prentice, Snyder, Spanel, Stevens and Swecker.

Staff:  Paul Mabrey (786-7412)

Background:  The marine fuel tax refund account was established to be the repository for monies derived from the tax on motor vehicle fuel used solely for marine applications.

If rightful claims for refunds are not timely made, the state of Washington succeeds to the right of such refunds.  On a monthly basis, the Director of the Department of Licensing requests the Treasurer to transfer a proportional amount of the monies from the marine fuel tax refund account to the recreational resource account and the remainder to motor vehicle fund.  The exact proportion depends on the fuel tax rate in effect January 1, 1990.  Whatever amount remains after payment to the recreational resource account is transferred to the motor vehicle fuel account.

Other non-highway use motor vehicle fuel tax refunds are handled similarly.  The State Treasurer periodically transfers money from the motor vehicle fund to the general fund to be used for programs affecting off-road vehicles.  Similarly, from time to time, the Treasurer transfers money from the motor vehicle account to the general fund for use in snowmobile related programs.  One of the factors used to determine the amounts to be transferred is the motor vehicle fuel tax rate in effect January 1, 1990.

Summary of Bill:  The State Treasurer is authorized to transfer such monies in the marine fuel tax refund account that are not required for payment of refund claims or costs to the recreational resource account only.  The calculation factor, "motor vehicle fuel tax rate in effect January 1, 1990,@ is eliminated.

Similarly, the calculation factor,"motor vehicle fuel tax rate in effect January 1, 1990," used to determine amounts to be transferred from the motor vehicle account to the general fund for the off-road vehicle account and the snowmobile account, is eliminated.

Appropriation:  None.

Fiscal Note:  Requested on January 27, 1998.

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

Testimony For:  There is general support for the legislation.  If more funds are made available from the passage of this bill, more work will be done by horse groups.  More money is needed to provide not only implements and tools but also materials for repairing and maintaining marine parks.  Increased funds will be used for boating access areas, ORV roads, and parking facilities.

Testimony Against:  None.

Testified:  PRO:  Ron Morgenthaler, NW Motorcycle Association; Loren McGovern, Backcountry Horseman of WA; Bernard Murray, Recreational Boating Association of WA; Jim Fox, Interagency Committee for Outdoor Recreation; Jane Boubel, WA Recreation Parks Association; Gene Tillett, Dept. of Fish and Wildlife.