HOUSE BILL REPORT

HB 1303

BYRepresentatives Kremen, Haugen, Fuhrman, Hargrove, Braddock, Jones, Spanel and Bristow

Providing for a distribution from the liquor revolving fund to border areas.

House Committe on Local Government

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (13)

      Signed by Representatives Haugen, Chair; Cooper, Vice Chair; Beck, Butterfield, Dorn, Ferguson, Hine, Jones, Nealey, Nelson, Nutley, Rayburn and Zellinsky.

House Staff:Steve Lundin (786-7127)

Rereferred House Committee on Ways & Means

Majority Report:  The second substitute bill be substituted therefor and the second substitute bill do pass.  (24)

      Signed by Representatives Grimm, Chair; Bristow, Vice Chair; Appelwick, Belcher, Braddock, Brekke, Butterfield, Dellwo, Ebersole, Fuhrman, Grant, Hine, Holland, Locke, Nealey, Peery, Rust, Schoon, Silver, H. Sommers, Spanel, Sprenkle, Wang and B. Williams. 

House Staff:      Rick Wickman (786-7136)

AS REPORTED BY COMMITTEE ON WAYS & MEANS

FEBRUARY 6, 1988

BACKGROUND:

State liquor license fees and other liquor revenues are placed into the liquor revolving fund.  After payment for the expenses of the state liquor control board, and some distributions to alcohol and drug programs, the remaining money in this fund (referred to as liquor profits) is distributed as follows: (1) fifty percent to the state; (2) ten percent to counties; and (3) forty percent to cities and towns.

Distributions of these gross percentage allocations to individual counties, cities and towns from the liquor revolving fund are made on the basis of population.  The only restriction on a county, city, or town receiving these funds is that at least two percent be used for alcoholism programs.

Each county receives an amount equal to the ten percent amount distributed to all counties, multiplied by a fraction, the numerator of which is the population of the unincorporated area of the county, and the denominator of which is the total statewide unincorporated area population.

Each city and town receives an amount equal to the forty percent amount distributed to all cities and towns, multiplied by a fraction, the numerator of which is the population of the city or town and the denominator of which is the total population of all cities and towns in the state.

SUMMARY:

SUBSTITUTE BILL:  Distribution of state liquor profits is altered to reduce the amount placed in the state general fund by three-tenths of one percent, from fifty percent to forty nine and seven-tenths percent.

This three-tenths of one percent is to be allocated by the department of community development to Whatcom County and the cities of Blaine, Everson, Friday Harbor, Lynden, Nooksack, Northport, Oroville, Port Angeles and Sumas, pursuant to a formula developed by the department based upon border traffic and historical public impacts of law enforcement problems caused by the border.  Distributions to Whatcom County only may be spent within the Point Roberts area.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The amount to be distributed was increased from one-quarter of one percent to three-tenths of one percent.  The eligible cities were listed specifically instead of being any city located within seven or fewer air miles of the Canadian/Washington State border.

CHANGES PROPOSED BY COMMITTEE ON WAYS & MEANS: Three tenth of one percent of moneys in the liquor revolving fund are allocated to the Department of Community Development for border area law enforcement programs.  After this distribution, 50 percent of moneys remaining are distributed to the state; 40 percent to cities and towns; 10 percent to counties.

Fiscal Note:      Requested January 20, 1988.

Effective Date:The bill takes effect July 1, 1989.

House Committee ‑ Testified For:    (Local Government)  Representatives Kremen and Braddock; Larry Mount, Whatcom County Sheriff; James Hinchey, City of Blaine Police Department; Howard Bowen, Sumas Police Chief; Stan Finkelstein, Association of Washington Cities; and Gary Lowe, Washington State Association of Counties.

(Ways & Means)  None Presented.

House Committee - Testified Against:      (Local Government)  None Presented.

(Ways & Means)  None Presented.

House Committee - Testimony For:    (Local Government)  These areas have abnormally high law enforcement and traffic problems due to their proximity to the border crossings.  The Legislature has been appropriating money to these jurisdictions to assist financing such activities for quite a few years.  This creates an automatic source of funding.

(Ways & Means)  None Presented.

House Committee - Testimony Against:      (Local Government)  None Presented.

(Ways & Means)  None Presented.