HOUSE BILL REPORT

                     ESHB 2338

                              As Passed House

                             February 15, 1992

Title:  An act relating to county research services.

Brief Description:  Authorizing a county research service.

Sponsor(s):  By House Committee on Local Government (originally sponsored by Representatives Haugen, Wood, Hine, Chandler, Cantwell, Brough, Rayburn, Horn, Rasmussen, Ferguson, Dorn, Riley, Forner, Mitchell, Spanel, Basich, Fuhrman, Jacobsen and Bray).

Brief History:

   Reported by House Committee on:

Local Government, January 24, 1992, DPS;

Revenue, February 8, 1992, DPS(LG-A REV);

Passed House, February 15, 1992, 90-0.

HOUSE COMMITTEE ON

LOCAL GOVERNMENT

Majority Report: The substitute bill be substituted therefor and the substitute bill do pass.  Signed by 15 members:  Representatives Haugen, Chair; Cooper, Vice Chair; Ferguson, Ranking Minority Member; Mitchell, Assistant Ranking Minority Member; Bray; Edmondson; Franklin; Horn; Nealey; Nelson; Rayburn; Roland; Wood; Wynne; and Zellinsky.

Staff:  Steve Lundin (786-7127).

HOUSE COMMITTEE ON

REVENUE

Majority Report: The substitute bill by Committee on Local Government be substituted therefor and the substitute bill as amended by Committee on Revenue do pass.  Signed by 13 members:  Representatives Wang, Chair; Fraser, Vice Chair; Brumsickle, Ranking Minority Member; Wynne, Assistant Ranking Minority Member; Appelwick; Belcher; Carlson; Day; J. Kohl; Leonard; Morris; Rust; and Silver.

Minority Report: Without recommendation.  Signed by 1 member:  Representative Morton.

Staff:  Rick Peterson  (786-7150).

Background:  The Municipal Research Council is a state agency established to contract for the provision of municipal research and services to cities and towns.  The council is composed of 18 members who are appointed as follows: (1) four members are appointed by the speaker of the House with equal representation from each of the two major political parties; (2) four members are appointed by the president of the Senate with equal representation from each of the two major political parties; (3) one member is appointed by the governor; and (4) nine members are appointed by the board of directors of the Association of Washington Cities.

Counties do not have a similar research council.

For years the Municipal Research Council has contracted with the Municipal Research and Services Center of Washington, a private non-profit corporation, for the provision of these services.

Money appropriated to the Municipal Research Council is diverted from state motor vehicle excise tax receipts that otherwise would be distributed to cities on a per capita basis.

One and six-tenths percent of the state motor vehicle excise tax receipts are placed into the county sales and use tax equalization account and are distributed to various counties under a distribution formula.  Unused moneys are returned to the state general fund.

In fiscal year 1991, $6.023 million was distributed to counties under the Sales and Use Tax Equalization Program and $538,000 was returned to the state general fund.

Summary of Bill:  The responsibilities of the Municipal Research Council are expanded to include contracting for county research and services, in addition to city and town research and services.  The services provided to cities and towns and to counties, shall be in proportion to the moneys appropriated for city and town research and services and county research and services.

The county research and services account is created in the state treasury.  Each year, moneys remaining after distribution of state motor vehicle excise tax receipts to counties under the Sales and Use Tax Equalization Program are placed into this account.  The annual amount shall not exceed the lesser of one half of the biennial appropriation for county research or 15 cents for each person residing in the unincorporated areas of the state.  If the moneys are not sufficient to fully fund both the distribution for county research and the distribution under SHB 2520, then both will be reduced proportionately.  Unused moneys are transferred to the state general fund.  Moneys in the county research and services account may be spent only after appropriation and only to finance the costs of county research.

The number of members on the Municipal Research Council is increased from 18 to 19.  Four of the legislative members are eliminated and replaced with five county-elected officials.  The governor appoints the county, city, and town officials to the Municipal Research Council.  Council members who are appointed as legislators or local officials lose their council positions, if they no longer are legislators or local officials.  A council member remains on the council after his or her term expires until a successor is appointed.

Fiscal Note:  Requested February 9, 1992.

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

Testimony For:  (Local Government) Counties, especially small counties, will greatly benefit from getting research services.

(Revenue) This bill will fund support services similar to those enjoyed by cities and towns through the Municipal Research Council.  The cities and counties have a mutual interest in the municipal research council because of issues relating to the Growth Management Act.

Testimony Against:  (Local Government) None.

(Revenue) None.

Witnesses:  (Local Government) Stan Finkelstein, Washington Association of Cities; Gary Lowe, Association of Washington Counties; and Rick Yukubousky, Municipal Research and Services Center of Washington.

(Revenue) Gary Lowe, Association of Washington Counties; Jackie McFayden, Association of Washington Cities; K.O. Rosenberg, Tri-Counties North East (Stevens, Ferry, and Pend Orielle); and Rich Yukubousky, Municipal Research Services Center (all in favor).