HOUSE BILL REPORT

HB 1060

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.

As Reported by House Committee On:

Environment

General Government & Information Technology

Title: An act relating to directing state investments of existing litter tax revenues under chapter 82.19 RCW in material waste management efforts without increasing the tax rate

Brief Description: Directing state investments of existing litter tax revenues under chapter 82.19 RCW in material waste management efforts without increasing the tax rate.

Sponsors: Representatives Fitzgibbon, Short, Farrell, Pike, Gregerson, Jinkins and Fey.

Brief History:

Committee Activity:

Environment: 1/13/15, 1/20/15 [DPS];

General Government & Information Technology: 2/3/15, 2/6/15 [DPS(ENVI)].

Brief Summary of Substitute Bill

  • Adds composting as a subject covered by the Waste Reduction, Recycling, and Litter Control Act.

  • Changes the specified allowable uses of litter tax revenues allocated to litter collection efforts coordinated by the Department of Ecology (ECY), waste reduction and recycling programs managed by the ECY, and local government waste reduction and recycling programs.

  • Makes permanent certain allowed uses of litter tax revenues on waste reduction, recycling, and litter control programs that had previously been specified only for the 2013-2015 biennium.

  • Amends and permanently establishes a 2013-2015 biennium matching fund competitive grant program administered by the ECY for litter reduction and recycling programs run by local governments and nonprofit organizations.

HOUSE COMMITTEE ON ENVIRONMENT

Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. Signed by 8 members: Representatives Fitzgibbon, Chair; Peterson, Vice Chair; Shea, Ranking Minority Member; Short, Assistant Ranking Minority Member; Fey, Goodman, McBride and Pike.

Minority Report: Do not pass. Signed by 1 member: Representative Taylor.

Staff: Jacob Lipson (786-7196).

Background:

The Waste Reduction, Recycling, and Litter Control Act (Act), dating to 1971, prohibits littering and establishes statewide programs to prevent and clean up litter, reduce waste, and increase recycling. These programs are funded by the 0.00015 percent litter tax on manufacturers', wholesalers', and retailers' gross proceeds on 13 categories of consumer products. The products subject to the litter tax include human food, pet food, groceries, cigarettes, tobacco products, wine, beer, malt beverages, soft drinks, carbonated water, household paper products, cleaning agents, toiletries, nondrug drugstore assorted products, and glass, metal, plastic, and synthetic fiber containers.

Allowed Uses of Litter Tax Revenues: Waste Reduction, Recycling, and Litter Control Act Programs.

The programs funded by the litter tax under the Act include litter collection efforts by state agencies including the Department of Ecology (ECY), and state assistance of local government waste reduction and recycling programs. Also established by the Act is the ECY Youth Corps program, which employs teens to collect litter from highways, parks, and other public areas.

In most years, litter tax revenues have been directed into a Waste Reduction, Recycling, and Litter Control Account (Account), from which it is distributed to fund the Act's programs as follows:

2013 Amendments to Litter Tax Allowed Uses and Waste Reduction, Recycling, and Litter Control Act Programs.

The 2013 Legislature enacted legislation which distributes $5 million per fiscal year of litter tax revenue to the State Parks Renewal and Stewardship Account until July 1, 2017. This money is to be used to fund the operations and maintenance of state parks.

In addition, several changes to the allowable uses of litter tax revenues in the Account were made in the 2013-15 operating budget passed in 2013, and apply only during the 2013-2015 biennium. Under these 2013 amendments, during the 2013-2015 biennium litter tax funds used for Act programs must generally be prioritized for recycling and litter programs for the products subject to the litter tax. In addition, the following specific uses of litter tax funds in the Account are authorized during the 2013-2015 biennium:

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Summary of Substitute Bill:

Scope of the Act.

The encouragement of composting is added as a purpose of the Act. State and local government programs authorized by the Act may include composting activities in addition to waste reduction, recycling, and litter control efforts. In addition, the 2013-2015 biennium requirement that Act programs prioritize the 13 categories of products subject to the litter tax is made a continuing part of state law. The requirement that the ECY periodically conduct a statewide litter survey targeting litter composition, sources, demographics, and geographic trends is eliminated.

Allocation of Litter Tax Funds.

The changes to the specific allowable uses of litter tax funds in the Account made in the 2013 budget are, with some further changes, extended on a non-expiring basis beyond the 2013-2015 biennium.

Extended permanently is the 2013-2015 biennium's funding of the ECY Youth Corps among the state agency litter collection activities funded as part of the 50 percent allocation of Account money to the ECY.

The 2013-15 biennium's matching fund competitive grant program is also extended permanently. The competitive grant program is funded from any unspent funds in the 20 percent of Account money that is also allocated to the ECY for local government waste reduction, litter control, composting, and recycling efforts. Composting is added as a subject of the matching fund competitive grant program, and the following restrictions and structural elements are added to the grant program:

Substitute Bill Compared to Original Bill:

The requirement that the ECY periodically conduct a statewide litter survey targeting litter composition, sources, demographics, and geographic trends is eliminated. The matching fund competitive grant program is funded with unspent funds from the 20 percent of Account money allocated to local government program activities, rather than directly out of the 20 percent allocation for local government activities and also from unspent funds from other Act programs. Public awareness activities are allowed to be funded out of the 30 percent allocation of Account money to the ECY's waste reduction programs.

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Appropriation: None.

Fiscal Note: Available.

Effective Date of Substitute Bill: This bill takes effect 90 days after adjournment of the session in which the bill is passed, except for sections 3, relating to allowed uses of funds in the Account, and 6, relating to distribution of Litter Tax revenues, which take effect June 30, 2017.

Staff Summary of Public Testimony:

(In support) This bill will clarify historical, successful uses of litter tax funds like the ECY's youth cleanup programs, technical assistance to local governments, and waste reduction efforts. The bill will also create a couple of new uses, like including composting among the waste reduction programs. Since the Legislature began deferring litter tax money to fund state parks, litter pickup crews have been cut, recycling rates have fallen below 50 percent, and public outreach efforts have faltered for lack of funds. This bill will help restore the original intent of the litter tax by eventually restoring funding to these programs, although the bill intentionally will not affect the planned diversion of $10 million to Washington State Parks and Recreation Commission in the upcoming biennium. Although the State has much to be proud of in its recycling record, there is still much more that needs to be done to avoid unnecessary waste and increase recycling, and this bill will support those efforts.

(Opposed) None.

Persons Testifying: Laurie Davies, Department of Ecology; Jan Gee, Washington Food Industry Association; and Suellen Mele, Zero Waste Washington.

Persons Signed In To Testify But Not Testifying: None.

HOUSE COMMITTEE ON GENERAL GOVERNMENT & INFORMATION TECHNOLOGY

Majority Report: The substitute bill by Committee on Environment be substituted therefor and the substitute bill do pass. Signed by 7 members: Representatives Hudgins, Chair; Senn, Vice Chair; MacEwen, Ranking Minority Member; Caldier, Assistant Ranking Minority Member; McCabe, Morris and Takko.

Staff: Dan Jones (786-7118).

Summary of Recommendation of Committee On General Government & Information Technology Compared to Recommendation of Committee On Environment:

No new changes were recommended.

Appropriation: None.

Fiscal Note: Available.

Effective Date of Substitute Bill: This bill takes effect 90 days after adjournment of the session in which the bill is passed, except for section 3 relating to allowed uses of funds in the Account, and section 6 relating to distribution of litter tax revenues, which take effect June 30, 2017.

Staff Summary of Public Testimony:

(In support) This bill will clarify the policy behind the original passage of the litter tax, and make sure litter tax dollars go towards their intended use of waste reduction and litter control of products subject to the tax. This bill will make permanent some of the temporary changes to the litter tax enacted in the operating budget this biennium, and will not have any fiscal impact. The Department of Ecology currently operates a grant program to local governments, and this bill will create a new competitive grant program for nonprofit organizations using funds that local governments don't spend. This bill will continue to support the operations of the State Parks and Recreation Commission by not changing the $10 million per biennium diversion that is in effect through the next biennium.

(Opposed) None.

Persons Testifying: Carolyn Logue, Washington Food Industry Association; Laurie Davies, Department of Ecology; and Daniel Farber, Washington State Parks.

Persons Signed In To Testify But Not Testifying: None.