HOUSE BILL REPORT

                  HB 1088

             As Reported By House Committee On:

                    Environmental Affairs

                           Revenue

Title:  An act relating to the solid waste collection tax.

Brief Description:  Extending the expiration date of the solid waste collection tax.

Sponsors:  Representatives Rust, Horn, J. Kohl and Bray; by request of Department of Ecology.

Brief History:

  Reported by House Committee on:

Environmental Affairs, January 28, 1993, DPS;

Revenue, February 24, 1993, DPS(ENA-A REV).

HOUSE COMMITTEE ON ENVIRONMENTAL AFFAIRS

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  Signed by 10 members:  Representatives Rust, Chair; J. Kohl, Vice Chair; Horn, Ranking Minority Member; Bray; Edmondson; Hansen; Holm; L. Johnson; Linville; and Roland.

Minority Report:  Without recommendation.  Signed by 2 members:  Representatives Van Luven, Assistant Ranking Minority Member and Sheahan.

Staff:  Rick Anderson (786-7114).

Background:  A 1 percent tax on solid waste collection was created by the Legislature in 1989 as a part of the "Waste Not Washington Act."  This act established a statewide recycling goal of 50 percent by 1995, and required local governments to plan for waste reduction and recycling, provide curbside recycling programs in urban areas, and provide a system of drop-boxes and buy back centers in rural areas.

The tax generates about $5 million per year and is subject to legislative appropriation.  Funds from the tax are used to review local government solid waste plans, provide technical assistance to implement recycling programs, and issue grants to implement waste reduction and recycling programs.

The tax is scheduled to terminate on July 1, 1993.  The Joint Select Committee on Preferred Solid Waste Management was charged, as one of its duties, to review the need for extending the tax.  The select committee was terminated on July 30, 1991 and did not review the tax.

Summary of Substitute Bill:  The bill extends the expiration date of the tax from July 1, 1993 to July 1, 1995.

The activities eligible for the 1 percent tax on solid waste collection are specified as follows:  plan review, technical assistance and grants to local governments, and market development activities.

Substitute Bill Compared to Original Bill:  The substitute bill adds a provision specifying how money from the tax can be used.

Fiscal Note:  Requested January 29, 1993.

Effective Date of Substitute Bill:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  Washington state leads all states with a 34 percent recycling rate.  The 1 percent tax is necessary to continue making progress toward the 50 percent recycling goal.  The Department of Ecology's proposal to emphasize technical assistance and grants to local governments and to de-emphasize plan review will help local governments reach the 50 percent goal.

Testimony Against:  None.

Witnesses:  Narda Pierce, Department of Ecology; Bruce Wishart, Sierra Club; Bill Vogler, Washington Association of Counties; John Paul Jones, Washington Refuse and Recycling Association; Ray Hoffman, City of Seattle; Michelle Minstrell, The Evergreen State College; Kathleen Collins, Association of Washington Cities; David Michener, Waste Management Workers of America; Elizabeth Schrag, Washington Citizens for Recycling; and Rick Singer, Department of Transportation.

HOUSE COMMITTEE ON REVENUE

Majority Report:  The substitute bill by Committee on Environmental Affairs be substituted therefor and the substitute bill as amended by Committee on Revenue do pass.  Signed by 14 members:  Representatives G. Fisher, Chair; Foreman, Ranking Minority Member; Fuhrman, Assistant Ranking Minority Member; Anderson; Cothern; Leonard; Morris; Romero; Rust; Silver; Talcott; Thibaudeau; Van Luven; and Wang.

Staff:  Keitlyn Watson (786-7310).

Summary of Recommendation of Committee on Revenue Compared to Recommendation of Committee on Environmental Affairs:  The amended substitute bill corrects a grammatical error and allows expenditures from the solid waste management account to be used for administration and collection of the tax.

Fiscal Note:  Available.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  The Waste Not Washington Act of 1989 was a landmark in state solid waste systems development.  The act established the solid waste management account, funded by a 1 percent tax on solid waste, to pay for solid waste planning and technical assistance to local governments for recycling.  If funding is extended, the successes of 1989-93 will be secured and furthered.  Decisions about how the revenue is spent has been a collaborative effort, and a higher percentage will be given as grants to local governments in the 1993-95 biennium than in the current biennium. The state is aiming toward 50 percent recycling by 1995, and the recycling rate has already improved.

Testimony Against:  None.

Witnesses:  (All in favor):  Rep. Nancy Rust, prime sponsor; Tom Eaton, Department of Ecology; Kathleen Collins, Association of Washington Cities; and Bill Vogler, Washington State Association of Counties.