SENATE BILL REPORT
SB 5616
As Reported by Senate Committee On:
Ways & Means, January 31, 2022
Title: An act relating to accounts.
Brief Description: Concerning accounts.
Sponsors: Senator Rolfes; by request of Office of Financial Management.
Brief History:
Committee Activity: Ways & Means: 1/17/22, 1/31/22 [DPS-TRAN].
Brief Summary of First Substitute Bill
  • Revises the Manufacturing Cluster Acceleration Subaccount and the Driver Licensing Technology Support Subaccount to be separate accounts.
  • Revises eleven dedicated accounts to expand their allowable uses.
  • Reenacts five accounts created or revised in 2021-23 omnibus operating appropriation bill.
  • Creates the Clean Energy Transition Workforce Account.
  • Eliminates three inactive accounts.
SENATE COMMITTEE ON WAYS & MEANS
Majority Report: That Substitute Senate Bill No. 5616 be substituted therefor, and the substitute bill do pass and be referred to Committee on Transportation.
Signed by Senators Rolfes, Chair; Frockt, Vice Chair, Capital; Robinson, Vice Chair, Operating & Revenue; Wilson, L., Ranking Member; Brown, Assistant Ranking Member, Operating; Schoesler, Assistant Ranking Member, Capital; Honeyford, Ranking Minority Member, Capital; Billig, Braun, Carlyle, Conway, Dhingra, Gildon, Hasegawa, Hunt, Keiser, Mullet, Muzzall, Pedersen, Rivers, Van De Wege, Wagoner, Warnick and Wellman.
Staff: Julie Murray (786-7711)
Background:

In addition to the State General Fund, which may be expended for any lawful purpose, the state maintains several hundred accounts dedicated to particular statutory purposes. These accounts generally fall into one of the three following categories:

  • accounts located in the State Treasury, which require appropriation by the Legislature;
  • accounts held in the custody of the State Treasurer, which may or may not require legislative appropriation; and
  • accounts located in state agencies and institutions of higher education, known as local accounts, which may require approval by the Office of Financial Management.

 

Accounts are generally created in policy bills for the purpose of dedicating moneys in the account for the policy purposes of the bill.  Accounts are also created in omnibus appropriation bills to dedicate funding for specific purposes and appropriations.  Expenditures from dedicated accounts are limited to the purposes defined in law, and therefore, legislative action is required to temporarily or permanently expand or further restrict the purposes of a dedicated account.
Summary of Bill (First Substitute):

The following three accounts are revised:

  • the Manufacturing Cluster Acceleration Subaccount of the economic development strategic reserve is revised as a separate account;
  • the Driver Licensing Technology Support Subaccount of the highway safety fund is revised as separate account; and
  • the Energy Efficiency Account is revised to allow moneys to be used for loans, loan guarantees, and grants for projects that achieve reductions in greenhouse gas emissions for emissions-intensive, trade-exposed industries.

 

The following accounts are revised to make permanent uses of accounts that have appeared as temporary biennial uses in multiple operating budgets:

  • Disaster Response Account;
  • Personnel Service Fund;
  • State Treasurers Service Fund;
  • Performance Audits of State Government;
  • Public Works Assistance Account;
  • Criminal Justice Treatment Account;
  • Aquatic Lands Enhancement Account;
  • Liquor Excise Tax Account;
  • County Criminal Justice Assistance Account; and
  • Water Pollution Control Revolving Administration Account


The following five accounts created or revised in the 2021-23 omnibus operating appropriation bill are reenacted: 

  • Forest Resiliency Account;
  • Washington Rescue Plan Transition Account;
  • Coronavirus State Fiscal Recovery Fund;
  • COVID-19 Public Health Response Account; and 
  • Elementary and Secondary School Emergency Relief III Account


The Clean Energy Transition Workforce Account is created to provide dedicated funding to support workers who are affected by the state's transition away from fossil fuels to a clean energy economy and associated program administrative expenses.

 

The following three accounts are eliminated:

  • Veterans Conservation Corps Account;
  • Dedicated McCleary Penalty Account; and
  • Special Personnel Litigation Revolving Account
EFFECT OF CHANGES MADE BY WAYS & MEANS COMMITTEE (First Substitute):

The expanded uses of the Energy Efficiency Account is made permanent rather than only for the 2021-2023 fiscal biennium.

 

The following accounts are revised to make permanent uses of accounts that have appeared as temporary biennial uses in multiple operating budgets: Disaster Response Account; Personnel Service Fund; State Treasurers Service Fund; Performance Audits of State Government; Public Works Assistance Account; Criminal Justice Treatment Account; Aquatic Lands Enhancement Account; Liquor Excise Tax Account; County Criminal Justice Assistance Account; and Water Pollution Control Revolving Administration Account.

 

The following three accounts are eliminated:  Veterans Conservation Corps Account; Dedicated McCleary Penalty Account; and Special Personnel Litigation Revolving Account.
Appropriation: None.
Fiscal Note: Available.
Creates Committee/Commission/Task Force that includes Legislative members: No.
Effective Date: The bill contains several effective dates. Please refer to the bill.
Staff Summary of Public Testimony on Original Bill:

The committee recommended a different version of the bill than what was heard.  PRO:  This is a good government bill to clean up some statutes and to create a few accounts related to policy bills.
Persons Testifying: PRO: Senator Christine Rolfes, Prime Sponsor; Scott Merriman, Office of Financial Management.
Persons Signed In To Testify But Not Testifying: No one.