HOUSE BILL REPORT

 

 

                                   ESB 6909

 

 

BYSenators Newhouse, Anderson, Benitz, Smith, Patterson, Thorsness, Patrick, Nelson, Smitherman, Warnke, Vognild, Talmadge, Matson, Bailey, Bauer, Gaspard, Conner, Barr, Hansen, Sutherland, Murray, Madsen, Fleming, Johnson and von Reichbauer

 

 

Providing for local criminal justice and other fiscal assistance.

 

BACKGROUND:

 

Current law prescribes that 17 percent of all motor vehicle excise tax (MVET) receipts deposited in the general fund from the basic 2 percent rate be distributed to incorporated cities and towns.  Of this amount, 65 percent is distributed for the support of public safety and health programs.  According to a Senate Committee on Ways and Means staff report, it is estimated that approximately $43.0 million of the $68.7 million 1989-91 MVET distribution to cities and towns will be spent for public safety programs.

 

Counties do not currently receive a share of state motor vehicle excise tax revenues for public safety programs.  County officials have argued that county criminal justice expenditures have risen rapidly in recent years, and that additional revenues are necessary to insure the continued provision of criminal justice services.

 

SUMMARY:

 

A sum equal to 7.38 percent of all MVET receipts deposited in the general fund from the basic 2 percent rate is allocated to the county criminal justice assistance account which is created in the state treasury.

 

Two and four one-hundredths percent of the funds allocated to the account are appropriated annually to the prosecution assistance revolving account.  These funds (estimated to be approximately $500,000 in fiscal year 1991) are available for distribution by the Department of Community Development (DCD) for grants to local governments for investigation and prosecution costs incurred in exceptional criminal cases, provided that such costs exceed 5 percent of the local government's annual operating budget.

 

The remaining funds in the county criminal justice assistance account (estimated to be $24,000,000 in fiscal year 1991) will be distributed to county governments for criminal justice purposes, on the basis of an individual county's population, crime rate, and superior court criminal filings per 1,000 residents.

 

A sum equal to 1.5 percent of all MVET receipts deposited in the general fund from the basic 2 percent rate (estimated to be approximately $5,000,000 in fiscal year 1991) is allocated to the municipal criminal justice assistance account which is created in the state treasury.  Funds in the account would be distributed on a per capita basis to cities meeting specified criteria.  Allocations would not exceed $1.0 million per city during any calendar year.

 

The city and county criminal justice assistance provisions sunset June 30, 1995.

 

Local governments are required to file an annual criminal justice plan with DCD to document current criminal justice activities, allocation of resources, and efforts to coordinate criminal justice programs with other local jurisdictions.  This provision sunsets June 30, 1995.

 

A one-time $9.0 million GF-State appropriation is made for allocation to the four counties with the highest crime rate.  The moneys would be distributed ratably based on population.  These moneys must be used exclusively for criminal justice purposes.

 

A one-time $1.7 million GF-State appropriation is made for distribution to cities under 10,000 in population that do not receive any other criminal justice distribution.  These moneys must be used exclusively for criminal justice purposes.

 

A 15-member Local Criminal Justice Advisory Group (LCJAG) is created within DCD.  The LCJAG would make recommendations to the department for funding from the prosecution assistance revolving account, establish criteria for an annual criminal justice plan, and identify approaches for dealing with criminal justice problems.  This provision would sunset in FY 1995.

 

The LCJAG is required to submit specified information to the legislative fiscal committees by December 1, 1990, regarding county criminal justice expenditures, unused revenue authority, and available debt capacity.

 

Local sales and use taxes, and the interest on these taxes, are to be distributed monthly to cities, counties, and transit districts.

 

Cities and towns are required to inform the State Actuary by November 1 of each even-numbered year on the fiscal condition of specified firemen's pension systems.  The State Actuary is required to report to the Legislature by January 1 of each odd-numbered year the fiscal condition of these specified pension systems.  Moneys not used from the fire insurance premiums tax shall be returned to the state for redistribution to other cities with firemen pension obligations.

 

Specified unclaimed property may be retained by local governments; however, such property must still be reported to the state.

 

The requirement that three or more unpaid parking violations may be reported to the Department of Licensing is reduced to two.  Notification requirements for local jurisdictions reporting unpaid parking fines to the Department of Licensing for motor vehicle license renewal purposes are reduced form 150 days to 120 days.  The $10 surcharge imposed on unpaid parking fines is increased to $15.

 

The method of calculation for sales tax equalization to new cities is changed.

 

Convicted offenders are required to pay for their jail processing costs when the court determines that they are able to pay.

 

Six-year excess property tax levies are authorized for all taxing districts other than the state.  These provisions take effect only if the voters approve a constitutional amendment authorizing six-year levies.

 

Increased local government revenues resulting from legislative acts since 1980 are to be counted as reimbursement under Initiative 62.  It is declared that adequate reimbursement has been provided under this and previous acts of the Legislature and that no additional reimbursement is required for new programs enacted prior to July 1, 1990.

 

Local government fiscal notes are required to be submitted to the Legislature on any bill or amendment that imposes new programs or responsibilities on local governments.

 

Appropriation:    $10.7 million GF-State, $24.5 million County Criminal Justice Assistance Account, and $5.0 million Municipal Criminal Justice Assistance Account.

 

Revenue:    yes

 

Fiscal Note:      none requested

 

Effective Date:The bill contains an emergency clause and takes effect immediately, except criminal justice funding and jail processing cost provisions take effect July 1, 1990; pension and parking ticket provisions take effect January 1, 1991; and six-year levy provisions take effect January 1, 1991, if the voters approve an authorizing constitutional amendment.