HOUSE BILL REPORT

                  HB 2539

             As Reported By House Committee on:

                       Appropriations

Title:  An act relating to border areas.

Brief Description:  Creating the border areas account.

Sponsor(s):  Representatives Kremen, Fuhrman, Orr and Spanel; by request of Department of Community Development.

Brief History:

  Reported by House Committee on:

Appropriations, February 3, 1992, DP.

HOUSE COMMITTEE ON

APPROPRIATIONS

Majority Report: Do pass.  Signed by 29 members:  Representatives Locke, Chair; Inslee, Vice Chair; Spanel, Vice Chair; Silver, Ranking Minority Member; Morton, Assistant Ranking Minority Member; Appelwick; Belcher; Bowman; Braddock; Brekke; Carlson; Dorn; Ferguson; Fuhrman; Hine; Lisk; May; Mielke; Nealey; Peery; Pruitt; Rust; D. Sommers; H. Sommers; Sprenkle; Valle; Vance; Wang; and Wineberry.

Staff:  Nancy Stevenson (786-7137).

Background:  A law passed by the 1988 Legislature allocates 0.3 percent of the liquor revolving account revenues to the Department of Community Development (DCD) for distribution to border areas.  These areas have historically received compensation from the state to mitigate the impact of border crossing activity on local law enforcement agencies.

The 1988 statute requires the distribution be made by formula established in rule by the department.  Border areas are defined as Blaine, Everson, Friday Harbor, Lynden, Nooksack, Northport, Oroville, Port Angeles, Sumas, and Point Roberts.

The Office of Financial Management and the state auditor have indicated to DCD that in order to comply with generally accepted accounting practices, liquor revenues for distribution to border areas need to be deposited and distributed from a separate account.

Summary of Bill:  The border areas account is established as a non-appropriated account within the state treasury.  Expenditures may only be made to border areas.

Fiscal Note:  Not requested.

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

Testimony For:  None.

Testimony Against:  None.

Witnesses:  None.