SENATE BILL REPORT

SB 5843

BYSenators Moore, Bender, Fleming, Bauer, Johnson and Stratton

Imposing an insurance premium tax for purposes of traffic safety programs.

Senate Committee on Financial Institutions

Senate Hearing Date(s):February 27, 1987

Majority Report:  Do pass and refer to Committee on Ways & Means.

      Signed by Senators Moore, Chairman; Bender, Vice Chairman; Bottiger, Fleming, McDermott, Metcalf, Pullen, von Reichbauer.

Senate Staff:Phil Sorensen (786-7470)

                  March 3, 1987

AS REPORTED BY COMMITTEE ON FINANCIAL INSTITUTIONS, FEBRUARY 27, 1987

BACKGROUND:

Four years ago the Washington Traffic Safety Commission created 16 community based DWI task forces.  Each task force was given a minimum federal grant that provided for a program coordinator, clerical support, printing, and travel money.  Additionally, each local community provided supplemental funding which matched approximately one-half the total grant.

Recent reductions of the federal budget have cut the Commission's budget by 17 percent.  Further reductions threaten the existence of the task forces and the programs which operate through schools, the liquor industry, law enforcement, courts, parent groups, and treatment programs.

SUMMARY:

Life and annuity, disability, and vehicle insurers authorized to do business in this state are assessed a premium tax surcharge amounting to two and one-half percent of the premium tax already being collected.  The surcharge funds collected are deposited in the traffic safety fund created by this act.

The deposited funds are used by the Traffic Safety Commission to develop and implement a statewide comprehensive safety program addressing the problem of drinking drivers and other activities deemed a major contributor to injury, death, and property damage on Washington's highways.

Revenue:    yes

Fiscal Note:      available

Effective Date:July 1, 1987

Senate Committee - Testified: Foster Cronyn, Washington Insurers; Sam McCullum, Chuck Hayes, Ford W. Keine, Jim Grant, Washington Traffic Safety Commission; Mike Kapphahn, Farmers Insurance; Harold Fosso, State Farm; Dan Wolfe, SAFECO; Kurt Shewar, Washington State Association of Counties