HOUSE BILL REPORT

HB 2361

BYRepresentatives H. Sommers, Silver, Vekich, Sayan, Jones, Hargrove, Basich, Schoon, Braddock, Peery and Betrozoff

Clarifying the 1989 appropriation for dredging Grays Harbor.

House Committe on Capital Facilities & Financing

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (13)

      Signed by Representatives H. Sommers, Chair; Rasmussen, Vice Chair; Schoon, Ranking Republican Member; Beck, Betrozoff, Bowman, Fraser, Heavey, Jacobsen, Peery, Rector, Wang and Winsley.

House Staff:Bill Robinson (786-7140)

AS REPORTED BY COMMITTEE ON CAPITAL FACILITIES & FINANCING

JANUARY 23, 1990

BACKGROUND:

The 1987 Legislature appropriated $10 million of state money to the Department of Community Development for the Grays Harbor dredging project.  A condition of the appropriation required a $40 million match from the United States Army Corps of Engineers and $10 million from the Port of Grays Harbor.  Because the project was not begun during the 1987-89 biennium, the Legislature reappropriated the funds for the 1989-91 biennium.

An informal Attorney General's opinion has interpreted the condition to mean that an advance appropriation of the full $40 million from the federal government or a legally binding commitment from Congress is necessary in order to expend the state funds.  This is not possible since the harbor dredging is a three year project and Congress makes annual appropriations.  The federal appropriation for the first year of the project is $13 million.

SUMMARY:

SUBSTITUTE BILL:  The condition on the state appropriation is amended to require an authorization of $40 million and an appropriation of $13 million from the federal government and a $10 million authorization from local government.  Up to $3.5 million of the first year's local match may consist of property, easements or other expenditures approved by the Corps of Engineers.  State funds will be disbursed at a rate of one dollar for every four dollars of federal funds and one dollar of local funds.  The Port of Grays Harbor will substitute the state appropriation from other non-state public grants or funding sources.  In the event the total project cost is reduced, the state funds will be reduced proportionally.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The limit on the amount of in-kind contributions for the local match is replaced with a dollar amount ($3.4 million) and a description of the types of expenditures that qualify as a match.  The match ratio of one dollar of local money for one dollar of state money is added.  The condition that the Port of Grays Harbor attempt to obtain additional non-state funding sources for the project is reinstated.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Representative Vekich; Jim Boldt; Tim Arnold, Department of Community Development; Henry Soike, Port of Grays Harbor testified for the substitute bill.

House Committee - Testified Against:      No one.

House Committee - Testimony For:    This is a technical amendment of the capital budget to clarify the legislative conditions on the appropriation for the Grays Harbor dredging project.  The Port of Grays Harbor must sign contracts for the start of the project by the end of January and needs the language clarified before that time.  The Port has already invested $3.4 million in land easements and dike construction in preparation of the dredging and will use these expenditures as part of the Port's match for the first year of the project.

House Committee - Testimony Against:      None.