HOUSE BILL REPORT

                  SB 5274

             As Reported By House Committee On:

                    Government Operations

Title:  An act relating to distribution of moneys to the municipal research council.

Brief Description:  Clarifying the funding formula for the municipal research council.

Sponsors:  Senators Haugen, McCaslin, Winsley, Wood and Palmer.

Brief History:

  Committee Activity:

Government Operations:  3/22/95, 3/24/95 [DP].

HOUSE COMMITTEE ON GOVERNMENT OPERATIONS

Majority Report:  Do pass.  Signed by 15 members:  Representatives Reams, Chairman; Goldsmith, Vice Chairman; L. Thomas, Vice Chairman; Rust, Ranking Minority Member; Scott, Assistant Ranking Minority Member; Chopp; R. Fisher; Hargrove; Honeyford; Hymes; Mulliken; D. Schmidt; Sommers; Van Luven and Wolfe.

Staff:  Bill Lynch (786-7092).

Background: The Municipal Research Council (MRC), through the Municipal Research and Services Center, provides a variety of legal, budgeting, planning, and other services to cities and towns in the state.  MRC is funded by deductions made from the municipal sales and use tax equalization account and the motor vehicle excise tax account.  Moneys from these accounts are otherwise distributed to cities and towns.

In 1990, the Legislature enacted two conflicting amendments regarding the distribution of funds to the Municipal Research Council.  One amendment provided that 65 percent of the MRC deduction came from the motor vehicle excise tax account and 35 percent came from the municipal sales and use tax equalization account.  The other amendment provided that the distribution for the MRC come solely from the motor vehicle excise tax account.

The Treasurer has continued to deduct funds for the MRC from both accounts.

Summary of Bill:  The enactment of a double code amendment in 1990 is corrected by reenactment.  The funding for the Municipal Research Council comes from the motor vehicle excise tax (65 percent) and the municipal sales and use tax equalization account (35 percent).

Appropriation:  None.

Fiscal Note:  Not requested.

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

Testimony For:  This corrects a double amendment that has had no real impact on the funding.  The bill applies only to cities and continues the funding formula agreed to by all cities.

Testimony Against:  None.

Testified:  Jim Justin, Association of Washington Cities; and Rich Yukubousky, Municipal Research and Services Center.