HOUSE BILL REPORT

                  HB 2749

             As Reported By House Committee On:

                      Local Government

Title:  An act relating to cities and towns annexed by fire protection districts.

Brief Description:  Revising provisions relating to cities and towns annexed by fire protection districts.

Sponsors:  Representative Springer.

Brief History:

  Reported by House Committee on:

Local Government, February 1, 1994, DP.

HOUSE COMMITTEE ON LOCAL GOVERNMENT

Majority Report:  Do pass.  Signed by 11 members:  Representatives H. Myers, Chair; Springer, Vice Chair; Edmondson, Ranking Minority Member; Reams, Assistant Ranking Minority Member; Dunshee; R. Fisher; Horn; Moak; Rayburn; Van Luven and Zellinsky.

Staff:  Steve Lundin (786-7127).

Background:  Prior to the creation of the Law Enforcement Officers' and Fire Fighters' (LEOFF) retirement system, a pension system was created for paid fire fighters employed by any city, town or fire protection district.

A variety of different sources of money was used by each city, town or fire protection district that had a paid fire fighter under this old pension system to finance benefits.

Annually, the state treasurer distributes 45 percent of the receipts from the state's excise tax on fire insurance premiums to eligible cities, towns and fire protection districts for their pre-LEOFF fire fighters' pension obligations.  An eligible city, town or fire protection district receives an amount of these distributed tax receipts in the proportion that the number of its current fire fighters bears to the total number of current fire fighters in all of the eligible cities, towns and fire protection districts.

A fire protection district may annex an entire city or town with a population of 100,000 or less.

Summary of Bill:  The formula used to distribute a portion of the state's fire insurance premium tax receipts for purposes of the pre-LEOFF fire fighters' pension system is altered.

For any eligible city or town that was annexed by a fire protection district, at any time before, on, or after the effective date of this act, the eligible city or town receives state fire insurance premium tax receipts based upon the number of its fire fighters immediately before the annexation until all of the city's or town's obligations under the pre-LEOFF fire fighters' pension system have been satisfied.

Fiscal Note:  Not requested.

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

Testimony For:  This is a technical bill to take care of Kelso which was annexed by a fire protection district.  Without this bill Kelso has pension obligations but does not receive state moneys.  This bill has no fiscal impact on the state.

Testimony Against:  None.

Witnesses:  Doug Robinson, city of Kelso; and Stan Finkelstein, Association of Washington Cities.