FINAL BILL REPORT

HB 1055

                                   C 45 L 90

BYRepresentatives R. Fisher, Chandler, Zellinsky, Fraser, D. Sommers and Smith

Financing fire protection for state-owned buildings.

House Committe on State Government

Senate Committee on Governmental Operations

SYNOPSIS AS ENACTED

BACKGROUND:

State-owned property is not routinely assessed for value and does not generate property tax revenue to support the provision of fire protection services.  Therefore, the state has developed a variety of methods to reimburse the jurisdictions providing fire protection services.

Cities and towns are reimbursed through the Department of Community Development (DCD).  DCD is required to include, in its budget, funds sufficient to fund fire protection contracts made between state agencies and local communities.  The rate of reimbursement is calculated by dividing the total state-owned square-footage into the appropriation granted by the Legislature. For fiscal year 1988-89, the allocation for the program was $437,000 for the 93 cities participating, which provided reimbursement at a rate of about 1.17 cents per square foot.

If a community and the contracting state agency agree that the money provided through DCD is inadequate, a separate contract may be negotiated for supplemental funds.  Six cities negotiate additional contracts, and the supplemental reimbursement is funded through the agency's budget.

State agencies and local school districts with equipment or buildings located outside city limits must negotiate a contract with the appropriate fire protection district.  The reimbursement of fire protection districts is not centrally administered under a single agency and the contracts negotiated can vary widely.

In addition, the six institutions of higher education do not all use the same method of reimbursement for fire protection to the jurisdictions in which they are located.

SUMMARY:

The Office of Financial Management is directed to study the methods used by the state in reimbursing communities and fire protection districts for fire protection of state-owned property.  The study shall make recommendations to improve the consistency of payments.  Under the recommended method, consideration may be given to the type of facility being protected, and payments below a recommended minimum are to be eliminated.

The study will be submitted to the Ways and Means and Governmental Operations committees of the Senate, and the Appropriations and State Government committees of the House of Representatives by December 1, 1990.

VOTES ON FINAL PASSAGE:

      House 97   0

      Senate    47     0

EFFECTIVE:March 14, 1990