HOUSE BILL ANALYSIS

                 SSB 5400

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

                    Brief Summary of Bill

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

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 Referendum 49, 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:

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.

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

Fiscal Note:  Available.