HOUSE BILL REPORT

                 SSB 6357

             As Reported By House Committee On:

                       Appropriations

Title:  An act relating to funding the municipal research council.

Brief Description:  Funding the municipal research council.

Sponsors:  Senate Committee on State & Local Government (originally sponsored by Senators Patterson, Horn, Haugen, Honeyford, Loveland, Winsley, Kline, McCaslin, Gardner and Spanel).

Brief History:

  Committee Activity:

Appropriations:  2/26/00, 2/28/00 [DP].

           Brief Summary of Substitute Bill

$Creates the City and Town Research Services Account to fund the Municipal Research Council with excess money from the Liquor Revolving Fund.

HOUSE COMMITTEE ON APPROPRIATIONS

Majority Report:  Do pass.  Signed by 30 members:  Representatives Huff, Republican Co-Chair; H. Sommers, Democratic Co-Chair; Barlean, Republican Vice Chair; Doumit, Democratic Vice Chair; D. Schmidt, Republican Vice Chair; Alexander; Benson; Clements; Cody; Crouse; Gombosky; Grant; Kagi; Keiser; Kenney; Kessler; Lambert; Linville; Lisk; Mastin; McIntire; McMorris; Mulliken; Parlette; Rockefeller; Ruderman; Sullivan; Sump; Tokuda and Wensman.

Staff:  Ronda Larson (786-7117).

Background:

The Municipal Research Council (MRC) is a state agency established in 1969 to contract for the provision of municipal research and services to cities, towns, and counties.  This research includes responding to city and county officials' requests for information on law, finance, growth management, personnel management, public works, and other issues.

Funding for services provided by the MRC to cities and towns formerly came from the state general fund and was derived from Motor Vehicle Excise Tax (MVET) distributions to cities and towns.  Initiative 695's repeal of the MVET eliminated this source of funding for the MRC.

Excess funds from the Liquor Revolving Fund consist of profit from liquor sales.  Cities and towns currently receive a share of this profit, which is distributed quarterly.  In 1999, towns' and cities' share amounted to $21 million.  For comparison purposes, the MRC's budget for services to cities and towns is approximately $1.8 million, or 8.6 percent of $21 million.

Summary of Bill:

The MRC's services to cities and towns are funded from the City and Town Research Services account, a newly created appropriated account.  The source of revenue for the account is a portion of the cities' and towns' share of the liquor revolving fund distributions.

Appropriation:  None.

Fiscal Note:  Available.

Effective Date:  The bill contains an emergency clause and takes effect on July 1, 2000.

Testimony For:  This bill has support from the Association of Washington Cities and the Association of Washington Counties.

Testimony Against:  None.

Testified:  Rich Yukubousky, Executive Director, Municipal Research and Services Center.