HOUSE BILL REPORT

SSB 6404

BYSenate Committee on Governmental Operations (originally sponsored by Senators Lee, Halsan, Bailey and Garrett; by request of Department of Community Development)

Authorizing loans for emergency public works projects.

House Committe on Local Government

Majority Report:  Do pass.  (12)

      Signed by Representatives Haugen, Chair; Cooper, Vice Chair; Beck, Bumgarner, Butterfield, Dorn, Ferguson, Jones, Nealey, Nelson, Nutley and Rayburn.

House Staff:Steve Lundin (786-7127)

AS PASSED HOUSE MARCH 6, 1988

BACKGROUND:

Legislation was enacted in 1985 establishing the Public Works Assistance Account, which is used as a source of money to make low-interest or interest-free loans to local governments for street and road, bridge, water system, and storm or sanitary sewer projects.  The loan program is administered by a thirteen member public works board, the members of which are appointed by the Governor.

The Board submits a list of projects to the Legislature that are recommended for such loans.  A loan may not be made for a project unless the project is included in a specific list of projects that is part of an appropriation of funds by the Legislature for such purposes.

SUMMARY:

The public works board is authorized to make loans for emergency public works projects that are not included within the specific list of projects contained in the appropriation for the Public Works Assistance Account.  Emergency loans only may be made from money appropriated for general emergency loan purposes within the Public Works Assistance Account, which cannot exceed five percent of the total amount appropriated.

These emergency loans may be made for the amount of a project that is not reimbursed from federal disaster or emergency funds, state disaster or emergency funds, insurance settlements, or litigation.  An attempt should be made to put emergency projects receiving such loans out for competitive bids, but such projects are not required to be put out for competitive bid.

The annual report to the Legislature on proposed projects to receive such loans must include a description of projects receiving emergency loans in the preceding fiscal year.

Fiscal Note:      Available.

House Committee ‑ Testified For:    Pete Butkus, Department of Community Development; Jim Justin, Association of Washington Cities; and Joe Daniels, Water and Wastewater Districts.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    Emergency projects are unforeseen.  A source of funding for smaller emergency public works projects is needed.

House Committee - Testimony Against:      None Presented.