HOUSE BILL REPORT

HB 2764

As Reported by House Committee On:

Ways & Means

Title: An act relating to eliminating accounts and funds.

Brief Description: Eliminating accounts and funds.

Sponsors: Representative Alexander; by request of Office of Financial Management.

Brief History:

Committee Activity:

Ways & Means: 2/6/12 [DPS].

Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. Signed by 27 members: Representatives Hunter, Chair; Darneille, Vice Chair; Hasegawa, Vice Chair; Alexander, Ranking Minority Member; Bailey, Assistant Ranking Minority Member; Dammeier, Assistant Ranking Minority Member; Orcutt, Assistant Ranking Minority Member; Carlyle, Chandler, Cody, Dickerson, Haigh, Haler, Hinkle, Hudgins, Hunt, Kagi, Kenney, Ormsby, Parker, Pettigrew, Ross, Schmick, Seaquist, Springer, Sullivan and Wilcox.

Staff: Dave Johnson (786-7154).

Background:

In addition to the State General Fund, which may be expended for any lawful purpose, the state maintains several hundred funds and accounts that are dedicated to particular statutory purposes. These accounts generally fall into one of three categories: (1) accounts located in the state treasury, thereby subject to appropriation by the Legislature; (2) accounts held in the custody of the State Treasurer and typically not subject to legislative appropriation; and (3) accounts located in state agencies and institutions of higher education, known as local accounts. Some funds and accounts, due to lack of recent activity, have been deemed by the Office of Financial Management to be inactive accounts.

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Summary of Substitute Bill:

The following accounts are eliminated:

• 1975 Community College Capital Construction;

• 211 Account;

• Agency Payroll Revolving Fund;

• Agency Vendor Payment Revolving Fund;

• Airport Impact Mitigation Account;

• Americans with Disabilities Special Revolving Fund;

• Automatic Fingerprint Information System Account;

• Capitol Historic District Construction Account;

• College Savings Program Account;

• Common School Reimbursable Construction Account;

• County Public Health Account;

• County Sales and Use Tax Equalization Account;

• Digital Government Revolving Account;

• Disability Accommodation Revolving Fund;

• Displaced Workers Account;

• Distressed County Assistance Account;

• Dungeness Crab Appeals Account;

• Environmental Excellence Account;

• Federal Interest Payment Fund;

• Film and Video Promotion Account;

• Forests and Fish Account;

• Green Industries Jobs Training Account;

• Health System Capacity Account;

• Hood Canal Aquatic Rehabilitation Account;

• Liquor Control Board Construction and Maintenance Account;

• Metals Mining Account;

• Mobile Home Park Purchase Account;

• Municipal Sales and Use Tax Equalization;

• Nisqually Earthquake Account;

• Organized Crime Prosecution Revolving Fund;

• Public Facilities Construction Loan and Grant Revolving Account;

• Reading Achievement Account;

• Real Estate Excise Tax Grant Account;

• Small Business Incubator Account;

• Special Grass Seed Burning Research Account;

• Special Technology Funding Revolving Account;

• State Facilities Renewal Account;

• Students with Dependents Grant Account;

• Sulfur Dioxide Abatement Account;

• Tobacco Securitization Trust Account;

• Washington International Exchange Scholarship Endowment Fund;

• Washington International Exchange Trust Fund;

• Washington Natural Science, Wildlife, and Environmental Education Partnership Account;

• Water Conservation Account; and

• Water Storage Projects and Water Systems Facilities Subaccount.

Various statutory references to accounts being eliminated are also eliminated or modified. Any future revenues that would previously have been deposited in the Special Grass Seed Burning Research Account, Film and Video Promotion Account, Displaced Workers Account, and the Metals Mining Account are redirected to the State General Fund.

With two exceptions, any remaining moneys in accounts being eliminated would be transferred to the State General Fund. Remaining moneys in the State Facilities Renewal Account and the Capitol Historic District Construction Account are transferred to the State Building Construction Account.

Substitute Bill Compared to Original Bill:

The original bill repeals numerous funds and accounts. The substitute bill, by correcting a statutory reference, also repeals the Americans with Disabilities Special Revolving Fund.

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Appropriation: None.

Fiscal Note: Available.

Effective Date of Substitute Bill: The bill takes effect on July 1, 2012.

Staff Summary of Public Testimony:

(In support) This is a request bill from the Office of Financial Management. Two years ago, when we did this exercise, the Legislature included language directing us to work with the Office of the State Treasurer to biennially identify obsolete accounts. This bill is in response to that request. These are obsolete accounts without any recent activity other than, in a few instances, interest earnings. Most have no balance and there are a few with balances over $50,000.

(Opposed) None.

Persons Testifying: Julie Murray, Office of Financial Management.

Persons Signed In To Testify But Not Testifying: None.