HOUSE BILL REPORT

                  HB 1304

             As Reported By House Committee On:

                       Transportation

Title:  An act relating to transportation improvement board bond retirement account revisions.

Brief Description:  Updating references to the transportation improvement board bond retirement account.

Sponsors:  Representatives Hankins, Fisher and K. Schmidt; by request of Transportation Improvement Board.

Brief History:

  Committee Activity:

Transportation:  2/15/99, 2/22/99 [DPS].

           Brief Summary of Substitute Bill

$Updates Transportation Improvement Board (TIB) bond authorizations to reflect the TIB bond retirement account.

$Allows the TIB bond retirement account to retain 80 percent of interest earned.

HOUSE COMMITTEE ON TRANSPORTATION

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  Signed by 28 members:  Representatives Fisher, Democratic Co-Chair; K. Schmidt, Republican Co-Chair; Cooper, Democratic 1st Vice Chair; Edwards, Democratic 2nd Vice Chair; Ericksen, Republican Vice Chair; Hankins, Republican Vice Chair; Buck; G. Chandler; DeBolt; Fortunato; Haigh; Hatfield; Hurst; Lovick; McDonald; Mielke; Mitchell; Morris; Murray; Ogden; Pflug; Radcliff; Romero; Schindler; Schual-Berke; Scott; Skinner and Wood.

Staff:  Gary LeBow (786-7304).

Background:

The Transportation Improvement Board (TIB) bond retirement account was created by the 1997 Legislature.  The account is used to pay for the principal and interest on TIB bonds.  Previously, the bond principal and interest payments for the TIB and the Department of Transportation were made from the highway bond retirement account.

The highway bond retirement account and the ferry bond retirement account retain 80 percent of interest earned; the other 20 percent is deposited into the treasury income account.

Summary of Substitute Bill:

References to the highway bond retirement account contained within TIB bond authorizations are changed to the TIB bond retirement account.  The TIB bond retirement account shall retain 80 percent of interest earned.

Substitute Bill Compared to Original Bill:  Technical correction to allow the account to retain 80 percent of its interest earnings after September 1, 2000.

Appropriation:  None.

Fiscal Note:  Available.

Effective Date of Substitute Bill:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  (original bill) This fixes legislation in 1997 that inadvertently left out updates to several bond authorization statutes and did not allow the account to retain 80 percent of its interest which is inconsistent with other transportation bond retirement accounts.

Testimony Against:  None.

Testified:  Rich Struna, Transportation Improvement Board.