SENATE BILL REPORT

                   SB 5842

              As Reported By Senate Committee On:

           Agriculture & Environment, March 5, 1997

                 Ways & Means, March 10, 1997

Title:  An act relating to litter control and recycling.

Brief Description:  Pertaining to litter control and recycling.

Sponsors:  Senators Swecker, Winsley and Fraser.

Brief History:

Committee Activity:  Agriculture & Environment:  2/25/97, 3/5/97 [DPS-WM].

Ways & Means:  3/10/97 [DP2S].

SENATE COMMITTEE ON AGRICULTURE & ENVIRONMENT

Majority Report:  That Substitute Senate Bill No. 5842 be substituted therefor, and the substitute bill do pass and be referred to Committee on Ways & Means.

  Signed by Senators Morton, Chair; Swecker, Vice Chair; Fraser, McAuliffe, Oke and Rasmussen.

Staff:  Kari Guy (786-7437)

SENATE COMMITTEE ON WAYS & MEANS

Majority Report:  That Second Substitute Senate Bill No. 5842 be substituted therefor, and the second substitute bill do pass.

  Signed by Senators West, Chair; Strannigan, Vice Chair; Bauer, Brown, Fraser, Hochstatter, Kohl, Long, Loveland, McDonald, Roach, Rossi, Schow, Sheldon, Snyder, Spanel, Swecker and Winsley.

Staff:  Cathy Baker (786-7708)

Background:  The 1971 Legislature enacted the Model Litter Control and Recycling Act to control and recycle litter in the state.  To fund these efforts, the Legislature imposed a tax on the value of certain products manufactured or sold within the state, to be collected annually.  The rate of .015 percent is imposed on the gross proceeds of the manufacture, wholesale, or retail of certain products, including food, cigarettes, soft drinks, newspapers, and other grocery products.

In 1992 the act was amended to change the allocation of litter account revenues.  The act requires that 40 to 50 percent of revenues must be used for youth programs for litter pickup, and to enforce compliance with the litter tax.  The remaining revenues are to be used for programs for public education and awareness, and programs to foster private recycling efforts, encourage recycling, and develop markets for recyclable materials.

For the 1995-1997 biennium, revenue from the litter account was allocated as follows:

C27 percent for the Ecology Youth Corps litter pickup program;

C40 percent for Department of Ecology waste reduction and recycling programs;

C26 percent to the Clean Washington Center for market development for recycled materials;

C5 percent to the Department of Natural Resources for litter pickup by correction camp crews;

Cless than 1 percent to the State Parks and Recreation Commission for recycling efforts in state parks; and

C1 percent for tax administration by the Department of Revenue.

Summary of Second Substitute Bill:  After July 30, 1997, expenditures from the litter control account must be used as follows:

C55 percent for youth litter patrol programs;

C15 percent to provide grants to local government for litter cleanup;

C15 percent for public education and awareness programs;

CThe remainder for Department of Revenue administrative costs and Department of Ecology costs for policy development, planning, and technical assistance for recycling.

The litter tax is collected by the Department of Revenue on a quarterly basis. 

The litter account may be used for litter cleanup by correctional work crews.  The Department of Ecology is authorized to enter into an interagency agreement with the Department of Corrections to provide for litter cleanup in areas that are not accessible to youth crews.

Second Substitute Bill Compared to Substitute Bill:  The $100,000 cap on the amount of litter tax paid per person per year is removed.  The Department of Ecology may enter into an interagency agreement with the Department of Corrections to have correctional crews clean up litter in areas that are not accessible to youth crews.

Substitute Bill Compared to Original Bill:  Funds provided in the original bill for commercial consumer education programs and local government grants for public education are deleted.

Appropriation:  None.

Fiscal Note:  Available.

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

Testimony For (Agriculture & Environment):  The litter tax was intended to be used for litter control, and this bill would return the funds to that use.  Quarterly collection of the tax will increase revenues. 

Testimony Against (Agriculture & Environment):  The distribution of funds will have a large impact on Department of Ecology technical assistance programs for local governments.  Recycling is an important tool in litter control.

Testified (Agriculture & Environment):  Bill Vogler, Washington Association of Counties; Jim Pendowski, Department of Ecology Solid Waste Program; Elizabeth Schrag, Washington State Recycling Association; Bob Gee, WRA/WFI (pro); Stewart Simon, Safeway (pro); Dick Ducharme, Beer and Wine Wholesalers Association of Washington (pro); Bill Fritz, Reynolds Aluminum Co. (pro).

Testimony For (Ways & Means):  The bill will help increase the state=s litter cleanup efforts.  It will provide additional funds for the Department of Revenue to increase compliance with the tax.

Testimony Against (Ways & Means):   The distribution of funds will have a large impact on Department of Ecology technical assistance programs for local governments.

Testified (Ways & Means):  Bob Gee, WA Food Industry (pro); Dan Silver, Department of Ecology.