SENATE BILL REPORT

SHB 1446

BYHouse Committee on Local Government (originally sponsored by Representatives Haugen, Ferguson, Sayan, S. Wilson, Jones, May, Dorn, Rasmussen and O'Brien; by request of Department of Community Development)

Authorizing loans for emergency public works projects.

House Committe on Local Government

Rereferred House Committee on Ways & Means/Appropriations

Senate Committee on Ways & Means

Senate Hearing Date(s):February 26, 1988; February 27, 1988

Majority Report:  Do pass as amended.

      Signed by Senators McDonald, Chairman; Craswell, Vice Chairman; Bauer, Bluechel, Cantu, Deccio, Fleming, Gaspard, Hayner, Johnson, Lee, Newhouse, Saling, Smith, Talmadge, Vognild, Williams, Wojahn, Zimmerman.

Senate Staff:Lynn French (786-7715)

                  March 1, 1988

AS REPORTED BY COMMITTEE ON WAYS & MEANS, FEBRUARY 27, 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 5 percent of the total amount appropriated.

These emergency loans may not be made for the amount of a project that is 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.

SUMMARY OF PROPOSED SENATE AMENDMENT:

The emergency projects are defined as those necessitated by natural disaster or immediate threat to public health and safety.

Appropriation:   

Revenue:   

Fiscal Note:      requested January 27, 1988

Senate Committee - Testified: Jim Justin, AWC (pro)