SENATE BILL REPORT

                   HB 1539

              As Reported By Senate Committee On:

             Government Operations, April 4, 1997

Title:  An act relating to fire district associations.

Brief Description:  Regulating fire district associations.

Sponsors:  Representatives Honeyford, Fisher, Schoesler and Sheldon.

Brief History:

Committee Activity:  Government Operations:  3/28/97, 4/4/97 [DP].

SENATE COMMITTEE ON GOVERNMENT OPERATIONS

Majority Report:  Do pass.

  Signed by Senators McCaslin, Chair; Hale, Vice Chair; Anderson, Haugen, Horn, Patterson and Swanson.

Staff:  Kathleen Healy (786-7403)

Background:  Fire commissioners of fire protection districts are authorized to form an association under nonprofit corporation laws or by adopting articles of association.  The association gathers fire prevention and fighting information, holds meetings, and promotes economical and efficient operation of fire protection districts.  The nonprofit corporation>s expenses are paid from funds paid by member fire protection districts.  Contributions by any member fire protection district may not exceed 2.5 cents per $1,000 of assessed valuation of the district in any calendar year.

Summary of Bill:  The fire commissioners association which provides services for fire protection districts is declared to be a municipal corporation.

Appropriation:  None.

Fiscal Note:  Not requested.

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

Testimony For:  Recently, the Department of Revenue changed its approach to taxation of fire associations.  This bill places the associations back into the tax position they were two years ago, before DOR changed its approach.

Testimony Against:  None.

Testified:  Representative Honeyford, prime sponsor (pro); Pete Spiller, Fire Districts (pro).