FINAL BILL REPORT

                 EHB 1533

                         C 189 L 97

                     Synopsis as Enacted

Brief Description:  Using county road funds.

Sponsors:  Representatives Sehlin, Quall, K. Schmidt, D. Schmidt, Scott and Hankins.

House Committee on Transportation Policy & Budget

Senate Committee on Transportation

Background:  Revenues derived from the excise tax on motor vehicle fuel (gas tax) are dedicated to Ahighway purposes@ by the 18th Amendment of the Washington State Constitution.  The gas tax is collected by the Department of Licensing and deposited into the motor vehicle fund.  Distributions and appropriations, including distributions to cities and counties, from the motor vehicle fund are dedicated to Ahighway purposes.@

Risk management and insurance expenditures related to highways have historically qualified as a Ahighway purpose.@  A 1995 Skagit County audit, conducted by the state Auditor=s Office, raised questions as to the validity of these expenditures.

Summary:  Risk management, insurance, and self insurance programs are added to the list of eligible expenditures for the county road fund when directly related to county road purposes.  The requirement to use the money paid into the county road fund from the motor vehicle fund for proper county road purposes is extended to all monies paid into the county road fund.

Votes on Final Passage:

House970

Senate450

Effective:July 27,  1997