SENATE BILL REPORT

SB 5482

As Reported by Senate Committee On:

Financial Institutions, Housing & Insurance, February 9, 2011

Title: An act relating to authorizing existing funding to house victims of human trafficking and their families.

Brief Description: Authorizing existing funding to house victims of human trafficking and their families.

Sponsors: Senators Kohl-Welles, Hobbs, Eide, Keiser, Fraser, Prentice and Conway.

Brief History:

Committee Activity: Financial Institutions, Housing & Insurance: 2/08/11, 2/09/11 [DP, w/oRec].

Majority Report: Do pass.

Signed by Senators Hobbs, Chair; Prentice, Vice Chair; Haugen and Keiser.

Minority Report: That it be referred without recommendation.

Signed by Senators Benton, Ranking Minority Member; Fain and Litzow.

Staff: Alison Mendiola (786-7483)

Background: Affordable Housing for All Surcharge. There is a $10 recording surcharge fee, of which the county auditor retains up to 5 percent for the collection and administration of the funds. Forty percent of the funds collected are remitted to the state Affordable Housing for All Account. The Department of Commerce (Commerce) uses these funds to provide housing and shelter for extremely low-income households. The remaining funds may be used by the counties to fund eligible housing activities for very low-income households, with priority for extremely low-income households by funding:

• the acquisition, construction, or rehabilitation of housing projects, including units for homeownership, rental units, farm worker housing, and single-room occupancy units;

• supporting building operation and maintenance costs of housing projects;

• rental assistance vouchers; and

• operating costs for emergency shelters and overnight shelters.

Homeless Housing Recording Surcharge. The Legislature enacted the Homeless Housing and Assistance Act in 2005, the goal of which is to reduce homelessness by 50 percent statewide and in each county by July 1, 2015. This goal is to be achieved through the creation of plans to address the causes of homelessness and the implementation of solutions to homelessness through state and county homeless housing programs. The Homeless Housing and Assistance Program is funded by a $10 surcharge for certain documents recorded by the county auditor. Of that $10 surcharge:

• the auditor retains 2 percent;

• 60 percent of the remaining funds remain within the participating county of origin;

• any city which assumes responsibility for reducing homelessness within its boundaries receives a percentage of the surcharge equal to the percentage of the city's local portion of the real estate excise tax; and

• the remaining monies are remitted to Commerce and deposited into the Home Security Fund, a nonappropriated account, of which 12.5 percent is used for administering the Homeless Housing Program, and the remaining funds provide housing and shelter for the homeless.

During the 2009-2011 and 2011-2013 biennia, the $10 surcharge is increased to $30.

There is also an $8 recording surcharge, of which:

• 90 percent of the funds are remitted to the county for its homeless housing plans and programs that accomplished the goals of the county's plan; and

• the remaining funds are deposited into the Home Security Fund and used by Commerce program administration, housing and shelter assistance for homeless persons, and the Homeless Housing Grant Program.

Summary of Bill: The funds received by both Commerce and counties under the Affordable Housing for All Surcharge may be used to house victims of human trafficking, and their families. Funds from the Home Security Fund may also be used to house victims of human trafficking, and their families.

Appropriation: None.

Fiscal Note: Available.

Committee/Commission/Task Force Created: No.

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

Staff Summary of Public Testimony: PRO: Washington was the first state to enact any legislation on human trafficking in 2002, which created the anti-trafficking task force. The issue of human trafficking came to light in the mid-to-late 90’s, when people were smuggled into the Port of Seattle in containers. There has also been the issue of mail order brides. People are being brought to Washington against their will for both labor or sexual exploitation. The original anti-trafficking task force recommended safe-house housing. Over the years, there has been an increased number of victims but a lack of housing as sometimes the victims don't qualify for domestic violence housing, or they may be too young, and there are also men who are trafficked.

Persons Testifying: PRO: Senator Kohl-Welles; Velma Veloria, citizen; Emma Catague, Asian Pacific Islander Washington Families Service Center; Sister Susan Francois, Intercommunity Peace and Justice Center.