SENATE BILL REPORT

HB 748

BYRepresentatives Baugher, Day, D. Sommers, Doty, Dellwo, Hankins, Cooper and Betrozoff; by request of Urban Arterial Board

Changing apportionment provisions for funds in the urban arterial trust account.

House Committe on Transportation

Senate Committee on Transportation

Senate Hearing Date(s):March 30, 1987

Majority Report:     Do pass as amended.

     Signed by Senators Peterson, Chairman; Bailey, Barr, Conner, DeJarnatt, Garrett, Halsan, Johnson, Nelson, Patterson, Sellar, Smitherman, von Reichbauer, West.

Senate Staff:Gene Schlatter (786-7316); Gene Baxstrom (786-7303)

                March 31, 1987

AS REPORTED BY COMMITTEE ON TRANSPORTATION, MARCH 30, 1987

BACKGROUND:

The current formula for apportionment of Urban Arterial trust funds to specific regions of the state is based on three criteria:  1) population, 2) "state" highway vehicle miles, and 3) "state" highway needs as defined by the Washington State Department of Transportation Category A six-year program.  Use of "state" highway data was developed as a stop gap measure in the absence of credible city and county needs information.

Also, at the beginning of each biennium, state statute requires the Urban Arterial Board (UAB) to establish new apportionment factors to be used on all funds deposited into the Urban Arterial Trust Account during the biennium.  When the Legislature authorizes a new bond program, the UAB will obligate most of the amount at the beginning of the biennium.  However, most projects begin construction between 24 and 36 months from the time of original approval which means different apportionment factors may apply, thereby making the process of administration unmanageable.

SUMMARY:

The formula criteria for apportionment of the Urban Arterial Trust Fund is changed by replacing "state" highway needs (Category A) and "state" vehicle miles with city and county needs and city and county vehicle miles.

A second change relates to the apportionment of bond proceeds.  These proceeds will be apportioned using the apportionment factors for the biennium in which the bond authorization authority is obligated, rather than when construction on the new projects is started.

SUMMARY OF PROPOSED SENATE AMENDMENT:

Agencies submitting urban arterial projects, which are approved for inclusion in the Urban Arterial Program budget and which are projected to cost more than $1 million, are required to perform a value engineering study on the project.  The Urban Arterial Board is granted authority to waive the requirement for projects over $1 million or to extend the requirement to projects estimated to cost less than $1 million.

Fiscal Note:    none requested

Senate Committee - Testified:   Representative Dick Nelson