HOUSE BILL REPORT

                  HB 2190

                      As Passed House:

                      February 5, 1996

Title:  An act relating to fees paid by railroad associations that are charitable organizations.

Brief Description:  Exempting railroad associations from certain fees.

Sponsors:  Representatives Dyer and B. Thomas.

Brief History:

  Committee Activity:

Finance:  1/17/96, 1/25/96 [DP].

  Floor Activity:

Passed House:  2/5/96, 96-0.

HOUSE COMMITTEE ON FINANCE

Majority Report:  Do pass.  Signed by 10 members:  Representatives B. Thomas, Chairman; Carrell, Vice Chairman; Boldt, Vice Chairman; Morris, Ranking Minority Member; Dickerson, Assistant Ranking Minority Member; Hymes; Mulliken; Schoesler; Sheldon and Van Luven.

Staff:  Cheri Keller (786-7093).

Background:  Under current law, all railroad associations pay an annual fee to the Utilities and Transportation Commission to cover the cost of regulation.  This fee is in the amount equal to 1.5 percent of the company's intrastate gross operating revenue.

Summary of Bill:  Railroad associations that qualify as not-for-profit charitable organizations under the federal Internal Revenue Code section 501(c)(3) are exempt from the fee.

Appropriation:  None.

Fiscal Note:  Available.

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

Testimony For:  Railways that would be covered under this act provide good family entertainment at a reasonable price.  These non-profit organizations operate entirely on donations and are staffed by volunteers, but they are saddled by increasing costs.  The money that would be saved will be used for restoration activities and enhancing the existing public education programs.

Testimony Against:  None.

Testified:  Representative Philip E. Dyer, prime sponsor; Alan Scott, WUTC; and Richard Anderson, Puget Sound Railway Historical Association.