FINAL BILL REPORT

                   SB 5378

                          C 159 L 95

                      Synopsis as Enacted

Brief Description:  Modifying border area fund distribution.

Sponsors:  Senators Haugen, Morton and Winsley; by request of Department of Community, Trade, and Economic Development.

Senate Committee on Government Operations

House Committee on Government Operations

Background:  Three-tenths of 1 percent of funds from the liquor revolving fund (approximately $170,000/year) are distributed to the Department of Community, Trade, and Economic Development (DCTED) to be allocated to border areas (Blaine, Everson, Friday Harbor, Lynden, Nooksack, Northport, Oroville, Port Angeles, Sumas, and Point Roberts).  These funds are distributed under a formula developed by DCTED, by rule, based on border traffic and historical impacts of law enforcement problems caused by the border on local budgets.

It has been brought to DCTED's attention that it is illegally administering this program with federal funds.

Summary:  Border area is redefined as any incorporated city or town located within seven miles of the Washington-Canadian border or any point of land surrounded on three sides by water and adjacent to the Canadian border.

The funds and any supplemental resources are distributed to border areas by the State Treasurer, subject to the distribution formula developed by the Department of Community, Trade, and Economic Development.  The method used to calculate the distribution formula is clarified in statute:  65 percent ratably based on border area traffic totals; 25 percent ratably based on border related crime statistics; and 10 percent ratably based on per capita law enforcement spending.

The distribution formula may be updated every three years upon request of recipient.

Votes on Final Passage:

Senate    48 0

House     96 0 (House amended)

Senate    43 0 (Senate concurred)

Effective:  July 1, 1995