VETO MESSAGE ON HB 2724-S

                   April 2, 1998

To the Honorable Speaker and Members,

  The House of Representatives of the State of Washington

Ladies and Gentlemen:

     I am returning herewith, without my approval, Substitute House Bill No. 2724 entitled:

"AN ACT Relating to legislative oversight of moneys received from fines, penalties, forfeitures, settlements, court orders, or other enforcement actions;"

     Substitute House Bill No. 2724 would provide that state agencies shall not expend moneys except pursuant to an appropriation by law, if the moneys are received in an administrative or judicial enforcement action, or settlement thereof, brought by the state.

     This legislation is in response to my veto last year of Engrossed Senate Bill No. 6039.  ESB 6039 provided that any fine or regulatory assessment imposed in an enforcement action under the insurance code must be collected by the Department of Revenue.  In my veto message, I asked that a comprehensive assessment be done throughout state government and that a uniform system be proposed to address any identified problems.

     No widespread or systemic problems were identified, and Substitute House Bill No. 2724 does not represent the uniform system that would be needed to address such problems had they been found.  Instead, the bill would provide a general rule requiring an appropriation of these types of funds, and would make several exceptions for some agencies but not for others.

     For these reasons, I have vetoed Substitute House Bill No. 2724 in its entirety.

                   Respectfully submitted,

                   Gary Locke

                   Governor