HOUSE BILL REPORT

                 SSB 5400

             As Reported By House Committee On:

                       Appropriations

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

Brief Description:  Clarifying distributions to the office of municipal research.

Sponsors:  Senate Committee on Ways & Means (originally sponsored by Senators Haugen, Loveland, Honeyford, Patterson, Horn and Costa).

Brief History:

  Committee Activity:

Appropriations:  4/1/99, 4/5/99 [DP].

           Brief Summary of Substitute Bill

$Replaces references to the general fund with references to the city police and fire protection assistance account for Municipal Research Council funding.

HOUSE COMMITTEE ON APPROPRIATIONS

Majority Report:  Do pass.  Signed by 32 members:  Representatives Huff, Republican Co-Chair; H. Sommers, Democratic Co-Chair; Alexander, Republican Vice Chair; Doumit, Democratic Vice Chair; D. Schmidt, Republican Vice Chair; Barlean; Benson; Boldt; Carlson; Clements; Cody; Crouse; Gombosky; Grant; Kagi; Keiser; Kenney; Kessler; Lambert; Linville; Lisk; Mastin; McIntire; McMorris; Mulliken; Parlette; Regala; Rockefeller; Ruderman; Sullivan; Tokuda and Wensman.

Staff:  Heather Flodstrom (786-7391).

Background:

The state imposes an excise tax (MVET) for using a motor vehicle on the highways of the state.  A portion of the tax is distributed to cities and towns for police and fire protection. However, before making the distribution to cities, a portion of the tax is deducted for distribution to the Municipal Research Council.

Before enactment of Referendum 49 in 1998, the portion of the tax that was distributed to cities and towns was deposited into the state general fund.  Referendum 49 changed that by having the MVET deposited into a separate city police and fire protection assistance account.  However, references to the state general fund for the Municipal Research Council portion of the MVET were overlooked.

Summary of Bill:

References to the state general fund are replaced with references to the city police and fire protection assistance account, which will restore the link between the MVET and the Municipal Research Council distribution.

Appropriation:  None.

Fiscal Note:  Requested on January 24, 1999.

Effective Date:  Bill contains an emergency clause and takes effect immediately.

Testimony For:  This bill clarifies the intent of Referendum 49 by making sure that moneys come off the top of the MVET collection to go to the Municipal Research Council before going to cities and towns.  The emergency clause makes sure this gets done before the 99-01 biennial budget.

Testimony Against:  None.

Testified:  Jim Justin, Association of Washington Cities.