Title: An act relating to city and town use of state fuel tax distributions.

Brief Description: Modifying city and town use of state fuel tax distributions.

Sponsors: By Senate Committee on Transportation (originally sponsored by Senators Swecker, Haugen, Esser and Spanel).

Brief History:

Transportation: 3/23/05 [DP].

Floor Activity:

Passed House: 4/6/05, 94-0.

HOUSE COMMITTEE ON TRANSPORTATION

Majority Report: Do pass. Signed by 21 members: Representatives Murray, Chair; Wallace, Vice Chair; Woods, Ranking Minority Member; Skinner, Assistant Ranking Minority Member; Buck, Campbell, Dickerson, Flannigan, Hankins, Hudgins, Jarrett, Kilmer, Lovick, Morris, Nixon, Schindler, Simpson, B. Sullivan, Takko, Upthegrove and Wood.

Staff: Jerry Long (786-7306).

Background:

RCW 46.68.110 governs the allocation of the 10.9691 percent of statewide fuel tax revenues distributed to cities and towns.

Prior to distributions to cities and towns ratably on the population last determined by the Office of Financial Management, there are three deductions from the statewide revenues distributed to cities and towns:

• 1.5 percent for the supervision of work and expenditures of incorporated                   cities and towns on city and town streets including federal aid programs for which the                      Department of Transportation (DOT) has responsibility for;
• 33/100 of 1 percent for the DOT for highway jurisdictional studies and other studies; and,
• 1 percent for the City Hardship Assistance Program.

The statute mandates that 31.86 percent of the funds distributed to cities and towns be used for certain purposes depending on the size of the city or town. For cities and towns with a population of 15,000 or more, these funds can only be used for the construction, improvement, chip sealing, seal coating and repair of arterial highways and city streets. For cities and towns with a population of less than 15,000, the funds can only be used for the maintenance of arterial highways and city streets.

Summary of Bill:

Removes the restrictions on the uses of funds for cities and towns regardless of size as measured by population. However, as fuel tax revenues, the funds remain restricted to highway purposes as set forth in the 18th Amendment to the Washington State Constitution.

Appropriation: None.

Fiscal Note: Available.

Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.

Testimony For: None.

Testimony Against: None.

Persons Testifying: None.

Persons Signed In To Testify But Not Testifying: None.