SENATE BILL REPORT

HB 825

BYRepresentatives Walk and Fisher

Revising motor vehicle fund uses.

House Committe on Transportation

Senate Committee on Transportation

Senate Hearing Date(s):March 30, 1987

Majority Report:     Do pass.

     Signed by Senators Peterson, Chairman; Bailey, Barr, Bender, DeJarnatt, Garrett, Nelson, Patterson, Sellar, Smitherman, West.

Senate Staff:Robin Rettew (786-7306)

                April 1, 1987

AS REPORTED BY COMMITTEE ON TRANSPORTATION, MARCH 30, 1987

BACKGROUND:

Cities and towns receive 11.53 percent of the 17C portion of the gas tax. Of that distribution, 6.92 percent must be used for municipal street purposes, and 4.61 percent must be used for arterial highways and city streets.  There are restrictions on what kinds of work may be done with the distributions

Distributions must be used for the following purposes:  a) the construction, improvement, and repair of arterial highways and city streets; b) the maintenance of city streets as approved by the Department of Transportation State Aid Engineer for cities with populations 5,000 or less (larger cities may not use distributions for maintenance); and c) the payment of any municipal indebtedness incurred in the construction, improvement, and repair of arterial highways and city streets.

SUMMARY:

Distributions of the gas tax to cities and towns may be used for chip-sealing and seal coating on arterial highways and city streets.  Distributions may also be used for maintenance of arterial highways, as well as for streets in cities with a population of 15,000 or less, and approval by the Department of Transportation Engineer is no longer required.  Distributions may be used to pay for municipal indebtedness incurred for chip sealing and seal-coating.

Fiscal Note:    none requested

Senate Committee - Testified:   Peter King, Association of Cities