Brief Description: Determining rates for the rental of county equipment.

Sponsors: By Representatives Kessler, Ericks and B. Sullivan.

House Committee on Local Government
Senate Committee on Government Operations & Elections

Background:

State law requires a county to establish an "equipment rental and revolving fund" (fund) in the county treasury. The purpose of the fund is to provide funding for the following:

• the purchase, repair, and maintenance of county road department equipment;
• the purchase or manufacture of materials and supplies for the county road department; and
• the administration and operation of the fund.

The fund consists of monies paid by various county departments for the use of the equipment owned by the fund. The monies paid into the fund from budgets of these county departments, in turn, provide for the purchase and maintenance of county road department equipment.

The fund must be administered by the county engineer or other appointee of the county government. The duties of the fund administrator include responsibility for the establishment of terms and charges for the sale of materials or supplies purchased, maintained, or manufactured with monies from the fund.

Equipment owned by the fund may be subject to rental by county departments to provide funding for the costs of equipment replacement, materials and supplies, maintenance, and repair. The rental rates must be determined by the county engineer and are subject to annual review by the county government. Only the county engineer if authorized to determine rental rates.

Summary:

A county government is authorized to designate an appointee to set rates for the rental of equipment owned by the county's equipment rental and revolving fund.

The county road administration board is authorized to inquire into the rental rate setting process as part of its statutory oversight responsibility.

Votes on Final Passage:

House   95   0
Senate   45   0   (Senate amended)
House   95   0   (House concurred)

Effective: July 22, 2007