SENATE BILL REPORT

                   SB 5290

              As Reported By Senate Committee On:

                Ways & Means, February 13, 1997

Title:  An act relating to the liquor control board construction and maintenance account.

Brief Description:  Providing that the liquor control board construction and maintenance account retain its earnings.

Sponsors:  Senators West and Spanel; by request of Liquor Control Board.

Brief History:

Committee Activity:  Ways & Means:  2/12/97, 2/13/97 [DPS].

SENATE COMMITTEE ON WAYS & MEANS

Majority Report:  That Substitute Senate Bill No. 5290 be substituted therefor, and the substitute bill do pass.

  Signed by Senators West, Chair; Deccio, Vice Chair; Strannigan, Vice Chair; Brown, Kohl, Long, Loveland, McDonald, Rossi, Schow, Sheldon, Spanel, Swecker, Thibaudeau and Winsley.

Staff:  Bryon Moore (786-7726)

Background:  In the 1995 legislative session, the Liquor Control Board was given authority to finance a new distribution center through Certificates of Participation, an alternative financing method.  In order to pay for the debt service and other costs related to the construction of the new distribution center, the Liquor Control Board imposed an additional markup on distilled spirits sold in state liquor stores and agencies on July 1, 1996.  This markup has been deposited into the liquor revolving account.

Summary of Substitute Bill:  The Liquor Control Board construction and maintenance account is created in the state treasury.  The Liquor Control Board must deposit the additional markup into the account.  The account is to be used for the construction and maintenance of the new distribution center.

Substitute Bill Compared to Original Bill:  The provision allowing the Liquor Control Board construction and maintenance account to retain its own interest is removed.  The State Treasurer is directed to transfer from the liquor revolving account to the Liquor Control Board construction and maintenance account the revenue generated from the additional markup imposed on July 1, 1996.

Appropriation:  None.

Fiscal Note:  Available.

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

Testimony For:  The Liquor Control Board needs the new account in order to pay for the costs associated with the new distribution center.

Testimony Against:  None.

Testified:  Louis Solomon, Susan Heltsley, Liquor Control Board (pro).