HOUSE BILL REPORT

                  SB 5070

                       As Passed House

                        April 6, 1993

Title:  An act relating to labor relations consultants.

Brief Description:  Using labor relations consultants.

Sponsors:  Senators Prentice and Roach.

Brief History:

  Reported by House Committee on:

Commerce & Labor, March 23, 1993, DP;

Passed House, April 6, 1993, 63-35.

HOUSE COMMITTEE ON COMMERCE & LABOR

Majority Report:  Do pass.  Signed by 6 members:  Representatives Heavey, Chair; G. Cole, Vice Chair; Conway; King; Springer; and Veloria.

Minority Report:  Do not pass.  Signed by 3 members:  Representatives Lisk, Ranking Minority Member; Chandler, Assistant Ranking Minority Member; and Horn.

Staff:  Jim Kelley (786-7166).

Background:  The state's taxing districts and political subdivisions are required to file yearly financial reports with the state auditor.  In addition to listing all collections made or receipts, accounts due but not collected, and expenditures, the reports must contain:  (1) a statement of all costs of ownership, operation, and income of each public service industry owned and operated by a municipality; (2) a statement of the entire public debt of every taxing district, showing the purpose for which each item of the debt was created and the provision made for payment; and (3) a classified statement of all receipts and expenditures by any public institution.  Specific details about expenditures for labor relations consultants are not among the enumerated items that must be reported.

Summary of Bill:  The yearly financial reports filed by taxing districts and political subdivisions with the state auditor must include, in addition to the other enumerated items, a statement of all expenditures for labor relations consultants, with the identification of each consultant, compensation, and the terms and conditions of each agreement or arrangement.

Fiscal Note:  Available.

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

Testimony For:  The House of Representatives has passed similar bills in the last three sessions.  The bill requires the disclosure of important public information, relating to the expenditure of public funds.  People have the right to know how and to whom their tax dollars are spent.  The fiscal impact is negligible.

Testimony Against:  This information is already available at city hall.  This bill creates an unnecessary burden and could open the door to more onerous requirements.  The sole purpose is to limit the local governments' ability to advance their best arguments, which saves the public's money in the long run.

Witnesses:  Sam Kinville, Washington State Council of County and City Employees (in favor); and Jim Justin, Association of Washington Cities (opposed).