H-2022              _______________________________________________

                                                   HOUSE BILL NO. 2166

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State of Washington                               51st Legislature                              1989 Regular Session

By Representatives Heavey, Patrick and S. Wilson

Read first time 2/27/89 and referred to Committee on Trade & Economic Development.

AN ACT Relating to the repeal of the business cycle within the state of Washington; and creating new sections.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.     The legislature finds that the many parts of the state of Washington and the state in general, have enjoyed a positive economic climate that can, in short, be described as a "booming economy"; that this positive economic condition has been bountiful due to private enterprise and a free market economy that has permitted the broad expansion of the economy and increased employment in those areas blessed with such a condition; and that such economic conditions have increased tax revenues for the state and those local governments lucky enough to be located in those areas, even to the extent that state tax revenues consistently have exceeded their projections.

          The legislature further finds that those portions of the state that have not enjoyed the bounty of favorable economic conditions are suffering high levels of unemployment and severe reductions in tax revenues for local governments.

          The legislature recognizes that from time to time the economy, most recently in 1981 through 1983, turns down cyclically with the falling of tax revenue.  The legislature finds that the dread lapsing into bad economic times, with a corresponding reduction in tax revenues for government, is not acceptable.

NEW SECTION. Sec. 2.     Due to conditions described in section 1 of this act, the legislature repeals and abolishes the business cycle within the state of Washington to the extent that such a cycle means a downturn in the economy, but retains the business cycle only to the extent that any areas in the state with a bad economy shall return to a good economy.  This action shall be known as a palladium of plenty.