HOUSE BILL REPORT

HB 1256

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Summary of Substitute Bill

Removes the requirement that the Freight Mobility Strategic Investment Board (FMSIB) submit their project portfolio to the Office of Financial Management and the Legislature as part of their budget request.
Allows that the Freight Mobility Investment Account may only be used for projects approved by the FMSIB.
Allows that the Freight Mobility Multimodal Account may only be used for projects approved by the FMSIB.
Removes additional references to project portfolio submission.

Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. Signed by 26 members: Representatives Clibborn, Chair; Fey, Vice Chair; Liias, Vice Chair; Orcutt, Ranking Minority Member; Hargrove, Assistant Ranking Minority Member; Angel, Bergquist, Farrell, Fitzgibbon, Habib, Hayes, Johnson, Klippert, Kochmar, Kristiansen, Moeller, Morris, O'Ban, Riccelli, Rodne, Ryu, Sells, Takko, Tarleton, Upthegrove and Zeiger.

Background:

The Freight Mobility Strategic Investment Board (FMSIB) was created by the Legislature in 1998 to implement the state's freight mobility strategic investment program. The FMSIB was directed to solicit, review, evaluate, and prioritize freight projects from public entities. The list of prioritized freight projects were then submitted to the Office of Financial Management (OFM) and the Legislature as part of their budget request. The FMSIB is comprised of 12 members representing various aspects of the state and transportation system including cities, counties, ports, railroads, trucking, shipping, the general public, the OFM, and the Washington State Department of Transportation. The FMSIB is the administering agency for two freight mobility accounts in the state treasury: the Freight Mobility Investment Account; and the Freight Mobility Multimodal Account. Both accounts receive a statutory transfer of $6 million each biennium.

In January 2011 the Joint Transportation Committee (JTC) completed a "Local Agency Efficiencies" study which evaluated funding and services offered by four state agencies providing local transportation services and included the FMSIB. One recommendation from the study stated the FMSIB should be given the ability to finalize their project list without legislative approval; this would speed project implementation and put the FMSIB more in line with other agencies that provide local transportation services.

Under current law, expenditures from the Freight Mobility Investment Account and Freight Mobility Multimodal Account can only be used for freight mobility projects identified in the Omnibus Transportation Appropriations Act.

–––––––––––––––––––––––––––––––––

Summary of Substitute Bill:

Language requiring the FMSIB to submit their project list to the OFM and the Legislature as part of their budget request, and additional references to a submitted project list as part of the budget process are removed.

The Freight Mobility Investment Account and the Freight Mobility Multimodal Account, the two accounts the FMSIB administers for their capital program, are each amended to allow expenditures only to be used for freight mobility projects that have been approved by the FMSIB.

Substitute Bill Compared to Original Bill:

The substitute bill adds a section amending the Freight Mobility Multimodal Account, the second of two accounts administered by the FMSIB, to allow expenditures only to be used for freight mobility projects that have been approved by the FMSIB. The original bill only referenced the Freight Mobility Investment Account.

Additional references to submitting a project list as part of the budget process are also deleted, such as, "in the next project portfolio submitted by the board."

Staff Summary of Public Testimony:

(In support) This bill provides the FMSIB the flexibility to finalize and manage their project list. Under current statutory limitations, the FMSIB's ability to move funds among projects depending on need or schedule or apply savings from one project to another is constrained. A JTC efficiencies study recommended the flexibility provided by the bill, and the bill is supported by a Washington State Transportation Commission resolution. The bill protects the appropriation authority of the Legislature while providing the FMSIB needed flexibility.

(Opposed) None.