SENATE BILL REPORT

ESHB 1533

As Reported By Senate Committee On:

Ways & Means, March 27, 2003

Title: An act relating to public water projects.

Brief Description: Authorizing a new subaccount in the public works assistance account.

Sponsors: House Committee on Capital Budget (originally sponsored by Representatives Schoesler, Linville, Chandler, Grant, Clements, Newhouse, Armstrong and Delvin).

Brief History:

Committee Activity: Ways & Means: 3/25/03, 3/27/03 [DPA].

SENATE COMMITTEE ON WAYS & MEANS

Majority Report: Do pass as amended.

      Signed by Senators Rossi, Chair; Zarelli, Vice Chair; Brown, Doumit, Fairley, Fraser, Honeyford, Johnson, Regala, Roach, Sheahan and Winsley.

Staff: David Schumacher (786-7474)

Background: The Public Works Assistance Account, commonly known as the Public Works Trust Fund, was created by the Legislature in 1985 to provide low-interest or interest-free loans to local governments to finance certain specified public works projects. The account receives revenue from the state real estate excise tax, utility and sales taxes on local water, sewer, and garbage collection, and loan repayments.

The Public Works Board, within the Department of Community, Trade, and Economic Development, is authorized to make loans from the account to local governments. Each year, the board submits a list of projects proposed to be funded from the account to the Legislature for approval.

Summary of Amended Bill: The Public Works Board must create a new subaccount in the Public Works Assistance Account to fund local government water storage and water systems projects. Projects funded by subaccount funds must meet competitive bid requirements.

Amended Bill Compared to Substitute Bill: The amendment makes it clear that no money from the public works assistance account may be spent in this newly created subaccount.

Appropriation: None.

Fiscal Note: Not requested.

Effective Date: The bill contains an emergency clause and takes effect immediately.

Testimony For: The Public Works Board is a lean and efficient manager of projects and is the perfect place to oversee the water projects that are envisioned for this subaccount.

Testimony Against: None.

Testified: PRO: Rep. Schoesler, prime sponsor.