SENATE BILL REPORT

SSB 5722

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Title: An act relating to the use of moneys collected from the local option sales tax to support chemical dependency or mental health treatment programs and therapeutic courts.

Brief Description: Concerning the use of moneys collected from the local option sales tax to support chemical dependency or mental health treatment programs and therapeutic courts.

Sponsors: Senate Committee on Human Services & Corrections (originally sponsored by Senators Hargrove, Morton, Stevens, Regala, Shin and McAuliffe).

Majority Report: That Substitute Senate Bill No. 5722 be substituted therefor, and the substitute bill do pass.

Signed by Senators Hargrove, Chair; Regala, Vice Chair; Stevens, Ranking Minority Member; Harper and McAuliffe.

Minority Report: That it be referred without recommendation.

Signed by Senators Baxter and Carrell.

Background: A county may impose a sales and use tax (tax) of 0.1 percent to support mental health treatment programs, chemical dependency treatment programs, and therapeutic courts. Limitations exist on the extent to which this money can be used to supplant funding for existing services. Fifteen counties have imposed this tax: Clallam, Clark, Ferry, Grays Harbor, Island, Jefferson, King, Okanogan, San Juan, Skagit, Snohomish, Spokane, Thurston, Wahkiakum, and Whatcom.

Summary of Substitute Bill: A county with a population greater than 25,000 which imposes the tax after December 1, 2010, may use up to 50 percent of monies collected to supplant funding for existing services in 2011-2012, up to 40 percent in 2013, up to 30 percent in 2014, up to 20 percent in 2015, and up to 10 percent in 2016. A county with a population less than 25,000 which imposes the tax after December 1, 2010, may use up to 80 percent of monies collected to supplant funding for existing services in 2011-2012, up to 60 percent in 2013, up to 40 percent in 2014, up to 20 percent in 2015, and up to 10 percent in 2016.

Monies used to support the cost of a judicial officer and support staff of a therapeutic court are exempt from supplant restrictions.

Staff Summary of Public Testimony on Original Bill: PRO: Lewis County has operated a drug court since 2005, which is threatened by the current budget crisis. Passing this tax with the new permission to supplant will make it more likely for this program to survive. Spending money on effective prevention programs reduces the impact on jails, emergency rooms, and the child welfare system. We like the carrot for new counties to pass this tax. We would like a longer supplant timeline for counties which have already implemented the tax.

Persons Testifying: PRO: Nelson Hunt, Lewis County Superior Court; Rebecca Peck, Samish Indian Nation; Rashi Gupta, Washington Association of Counties; Ellei Menzies, Service Employees International Union.

House Amendment(s): All jurisdictions, including those who adopted the tax before December 1, 2010, are allowed to supplant for an extended period of time.