Brief Description: Authorizing a new subaccount in the public works assistance account.

Brief Summary of Engrossed Bill

(As Amended by House)

• A subaccount is created in the Public Works Assistance Account to receive money to fund water storage projects and water systems facilities. The subaccount keeps its interest earned (rather than the interest going to the General Fund).

Majority Report: Do pass as amended. Signed by 23 members: Representatives Dunshee, Chair; Hunt, Vice Chair; Alexander, Ranking Minority Member; Priest, Assistant Ranking Minority Member; Armstrong, Benson, Blake, Bush, Chase, Flannigan, Hankins, Hinkle, Kirby, Lantz, McIntire, Morrell, Newhouse, O'Brien, Orcutt, Schoesler, Simpson, Veloria and Woods.

The Public Works Assistance Account, commonly known as the Public Works Trust Fund, was created by the Legislature in 1985 to provide a source of loan funds to assist local governments and special purpose districts with infrastructure projects. The Public Works Board, within the Department of Community, Trade and Economic Development, is authorized to make low-interest or interest-free loans from the account to finance the repair, replacement, or improvement of the following public works systems: bridges; roads; water and sewage systems; and solid waste and recycling facilities. All local governments except port districts and school districts are eligible to receive loans. In addition to construction projects, the Public Works Assistance Account can also be used for emergency loans, preconstruction loans, and capital facility planning loans.

The interest earned on accounts in the State Treasury goes to the General Fund unless a statute states otherwise.

A subaccount is created in the Public Works Assistance Account (for the Public Works Trust Fund) to receive money to fund water storage projects and water systems facilities. Any projects funded by the subaccount must follow the competitive bid requirements applicable to Public Works Trust Fund projects. The subaccount is administered by the Public Works Board and is separate from the other programs managed by the Public Works Board. The interest earned on the subaccount is deposited in the subaccount.

Effective Date of Amended Bill: The bill contains an emergency clause and takes effect immediately.

Testimony For: The bill creates a subaccount to handle appropriations for water storage and water systems facilities projects that is managed by an agency with a good track record in this area.