SENATE BILL REPORT

SB 5239

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.

Majority Report: That Substitute Senate Bill No. 5239 be substituted therefor, and the substitute bill do pass.

Signed by Senators Benton, Vice Co-Chair; Eide, Co-Chair; King, Co-Chair; Billig, Brown, Carrell, Ericksen, Fain, Budget Leadership Cabinet; Hobbs, Mullet, Schlicher, Sheldon and Smith.

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. 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 Office of Financial Management (OFM), and the Washington State Department of Transportation. 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. FMSIB solicits, reviews, evaluates, and prioritizes freight projects from public entities. Annually, FMSIB submits the list of prioritized freight projects to OFM and the Legislature as part of their budget request. 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.

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 that 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.

Summary of Bill (Recommended Substitute): FMSIB is no longer required to submit a project list to OFM and the Legislature as part of their budget request. Expenditures from the Freight Mobility Investment Account and the Freight Mobility Multimodal Account may only to be used for freight mobility projects that have been approved by FMSIB.

Staff Summary of Public Testimony: PRO: By allowing FMSIB to operate like the Transportation Improvement Board and County Road Administration Board grant programs, the board will be able to move funds around as needed to advance projects that are ready to go and to more quickly use funds that are turned back from other projects.