HOUSE OF REPRESENTATIVES

                      Olympia, Washington

Bill Analysis      Bill No.  HB 1977

Enhancing accountability of public works contractors.

Brief Title                              Hearing Date: 2/24/99

Reps. Lantz, Miloscia, and Dunshee         Staff: Steve Lundin

Sponsor(s)                          State Government Committee

                                              Phone:  786-7127

BACKGROUND:

Legislation was enacted in 1993 establishing a process for the secretary of the Department of Transportation to enter into up to six demonstration public-private transportation initiatives.  Under this program the private entity, together with the department, studies, plans, designs, constructs, operates, and maintains transportation facilities and facilities using public ro private sources of financing.  Public funding may also be used to finance all or part of the project.  A project constructed using this procedure is part of the state highway system.

The private entity leases the public facilities it constructs and may charge user fees or tolls.  The private entity is allowed to receive a reasonable rate of return on its investment, as determined through an agreement negotiated with the department.  The private entity may modify user fees and tolls if the negotiated rate of return on its investment is not affected.

The department may contract with the private developer to conduct environmental impact studies, a public involvement program, and engineering and technical studies.

An advisory vote must be held on a project proposal in an affected area defined by the Department if a petition bearing at least 5000 signatures of persons opposed to the project is submitted.  The advisory vote is on the preferred alternative identified under the analysis prepared under the State Environmental Policy Act.

The department establishes a public-private local involvement committee that is composed of persons representing cities and counties in the affected area, organizations that support or oppose the proposal, and users of the project.  The Governor appoints the public members.  This committee serves in an advisory capacity to the Department on all matters relating to the advisory vote.  A public comment period must precede an advisory vote.  Based on comments received during this comment period, the department may alter the affected area.

County auditors prepare a description of the project that is included in a voters= pamphlet distributed in the affected area prior to the advisory vote.

SUMMARY:

An agreement or contract that the Department of Transportation enters into under the Public-Private Transportation Initiatives law subjects the private entity to all the laws applicable to public entities performing similar activities.  This includes, but is not limited to:

oBeing audited by the state auditor;

oProhibitions on the use of its facilities being used for campaign purposes;

oPublic disclosure and copying of its records to the same extent that its records were public records;

oOpen public meeting requirements as if it were a public entity; and

oEmployee whistleblower protection.

Any information gained by a private entity under such a contract may not be sold or transferred to another entity or used by the private entity for purposes other than those strictly related to performing its services under the contract without express statutory authority.

FISCAL NOTE:  Not requested.

EFFECTIVE DATE:  Ninety days after adjournment of session in which bill is passed.