HOUSE BILL REPORT

                  HB 1052

             As Reported By House Committee On:

                       Appropriations

Title:  An act relating to the review of nonappropriated funds.

Brief Description:  Reviewing nonappropriated funds.

Sponsors:  Representatives Horn and Silver.

Brief History:

  Committee Activity:

Appropriations:  1/31/96 [DPS].

HOUSE COMMITTEE ON APPROPRIATIONS

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  Signed by 27 members:  Representatives Huff, Chairman; Clements, Vice Chairman; Pelesky, Vice Chairman; H. Sommers, Ranking Minority Member; Valle, Assistant Ranking Minority Member; Basich; Beeksma; Brumsickle; Carlson; Chappell; Cooke; Crouse; Dyer; Foreman; Grant; Hargrove; Hickel; Jacobsen; Kessler; Linville; McMorris; Poulsen; Reams; Rust; Sehlin; Sheahan and Talcott.

Staff:  Victor Moore (786-7143).

Background:  When a fund is created specifically through legislation, the law specifies whether or not expenditures from the fund require legislative appropriation (appropriated vs. nonappropriated).  Similarly, the law states whether revenue and expenditure plans are to be submitted to the Office of Financial Management (allotted vs. nonallotted).  Currently, over 200 nonappropriated funds exist.  A majority of these funds are nonallotted funds, which require no review or tracking by the Office of Financial Management.  The revenue collected into these funds is well in excess of $16 billion for the 1993-95 biennium.

Summary of Substitute Bill:  SHB 1052 creates a task force on fiscal policy to examine the revenues to and the expenditures from all nonappropriated funds.  The task force is directed to explore the fee and charge-setting policies of agencies generating revenues for these funds, to recommend consistent policies in this area, and to recommend whether certain nonappropriated funds be appropriated.  

The task force is comprised of nine members: four from the House of Representatives, four from the Senate, and the director of the Office of Financial Management.  The task force is effective July 1, 1996.  The committee is directed to report its findings and recommendations to the Legislature by December 1, 1996.

Substitute Bill Compared to Original Bill:  The substitute bill changes the starting date of the task force study and the due date of the task force report.

Appropriation:  None.

Fiscal Note:  Available.

Effective Date of Substitute Bill:  The bill contains an emergency clause and takes effect immediately.

Testimony For:  None.

Testimony Against:  None.

Testified:  None.