HOUSE BILL REPORT

                      HB 1411

                     As Reported By House Committee on:

                             Energy & Utilities

Title:  An act relating to the distribution of receipts from the privilege tax imposed on public utility districts operating facilities for the generation, distribution, and sale of electric energy.

Brief Description:  Revising provisions relating to the privilege tax imposed on public utility districts.

Sponsor(s):  Representatives Hochstatter, Chandler, Nealey, Prince and Fuhrman.

Brief History:

   Reported by House Committee on:

Energy & Utilities, February 14, 1991, DP.

HOUSE COMMITTEE ON

ENERGY & UTILITIES

Majority Report: Do pass.  Signed by 8 members:  Representatives Grant, Chair; H. Myers, Vice Chair; May, Ranking Minority Member; Hochstatter, Assistant Ranking Minority Member; Casada; Cooper; R. Fisher; and Jacobsen.

Minority Report: Do not pass.  Signed by 2 members:  Representatives Bray; and Rayburn.

Staff:  Fred Adair (786-7113).

Background:  In 1977, the distribution of privilege tax receipts to be received from operation of the Washington Public Power Supply System's WNP-2 nuclear electric power plant was specified.  An impact area of 35 miles radius from the Hanford Reservation Wye Barricade less the area north of the southern Township 15 boundary (State Route 24 going east from Mattawa and the Adams/Franklin County border) was established.

Public infrastructure within the impact area receives the tax receipts, distributed per a specified formula.

Today there is interest in including the area within the 35 mile circle, but north of the Southern Township 15 boundary.

Summary of Bill:  The impact area for distribution of WNP-2 privilege tax receipts is extended to include the area north of the southern boundary of Township 15 but within the 35 mile radius from the Hanford Reservation Wye Barricade.

Fiscal Note:  Available.

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

Testimony For:  There have been changes since the law's inception which merit inclusion of the new area.  The Vernita Bridge has been completed, for instance.  The tax input has risen in recent years such that the remaining area likely will get as much as before since the area being added involves only a small population increase.  (The tax distribution is based on population within the specified area.)

Testimony Against:  None.

Witnesses:  Robert Maestre, City Manager, Othello, but also for Adams County and applicable fire districts.