CERTIFICATION OF ENROLLMENT
ENGROSSED SECOND SUBSTITUTE HOUSE BILL 1069
Chapter 296, Laws of 2021
(partial veto)
67th Legislature
2021 Regular Session
LOCAL GOVERNMENTS—FISCAL FLEXIBILITY
EFFECTIVE DATE: May 13, 2021
Passed by the House February 25, 2021 CERTIFICATE
Yeas 56 Nays 42
I, Bernard Dean, Chief Clerk of the
House of Representatives of the
LAURIE JINKINS State of Washington, do hereby
Speaker of the House of certify that the attached is
Representatives ENGROSSED SECOND SUBSTITUTE HOUSE
BILL 1069 as passed by the House of
Representatives and the Senate on
the dates hereon set forth.
Passed by the Senate April 11, 2021
Yeas 26 Nays 22
BERNARD DEAN
DENNY HECK Chief Clerk
President of the Senate
Approved May 13, 2021 11:43 AM with FILED
the exception of sections 9, 17, and
18 which are vetoed. May 13, 2021
Secretary of State
JAY INSLEE State of Washington
Governor of the State of Washington
 ENGROSSED SECOND SUBSTITUTE HOUSE BILL 1069
Passed Legislature - 2021 Regular Session
State of Washington 67th Legislature 2021 Regular Session
By House Finance (originally sponsored by Representatives Pollet,
Duerr, Leavitt, Wylie, Tharinger, Kloba, Senn, Ryu, Callan, and Fey)
READ FIRST TIME 02/01/21.
1 AN ACT Relating to local government fiscal flexibility; amending
2 RCW 82.14.310, 82.14.320, 82.14.330, 82.14.340, 82.14.450, 82.14.460,
3 82.04.050, 82.04.050, 82.46.010, 82.46.015, 82.46.035, 82.46.037,
4 84.55.050, 35.21.290, and 35.67.210; creating a new section;
5 providing an effective date; providing an expiration date; and
6 declaring an emergency.
7 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
8 NEW SECTION. Sec. 1. The legislature finds that the COVID-19
9 pandemic, as recognized by emergency proclamations issued by the
10 governor, has resulted in an unprecedented drop in local government
11 revenues. The legislature intends to provide local governments with
12 increased flexibility in the use of existing revenues in order to
13 enable local governments to continue to provide essential services
14 and to facilitate economic recovery through December 31, 2023.
15 PART I
16 CRIMINAL JUSTICE SALES TAX
17 Sec. 2. RCW 82.14.310 and 2019 c 415 s 988 are each amended to
18 read as follows:
p. 1 E2SHB 1069.SL
 1 (1) The county criminal justice assistance account is created in
2 the state treasury. Beginning in fiscal year 2000, the state
3 treasurer must transfer into the county criminal justice assistance
4 account from the general fund the sum of ((twenty-three million two
5 hundred thousand dollars)) $23,200,000 divided into four equal
6 deposits occurring on July 1, October 1, January 1, and April 1. For
7 each fiscal year thereafter, the state treasurer must increase the
8 total transfer by the fiscal growth factor, as defined in RCW
9 43.135.025, forecast for that fiscal year by the office of financial
10 management in November of the preceding year.
11 (2) The moneys deposited in the county criminal justice
12 assistance account for distribution under this section, less any
13 moneys appropriated for purposes under subsections (4) and (5) of
14 this section, must be distributed at such times as distributions are
15 made under RCW 82.44.150 and on the relative basis of each county's
16 funding factor as determined under this subsection.
17 (a) A county's funding factor is the sum of:
18 (i) The population of the county, divided by ((one thousand))
19 1,000, and multiplied by two-tenths;
20 (ii) The crime rate of the county, multiplied by three-tenths;
21 and
22 (iii) The annual number of criminal cases filed in the county
23 superior court, for each ((one thousand)) 1,000 in population,
24 multiplied by five-tenths.
25 (b) Under this section and RCW 82.14.320 and 82.14.330:
26 (i) The population of the county or city is as last determined by
27 the office of financial management;
28 (ii) The crime rate of the county or city is the annual
29 occurrence of specified criminal offenses, as calculated in the most
30 recent annual report on crime in Washington state as published by the
31 Washington association of sheriffs and police chiefs, for each ((one
32 thousand)) 1,000 in population;
33 (iii) The annual number of criminal cases filed in the county
34 superior court must be determined by the most recent annual report of
35 the courts of Washington, as published by the administrative office
36 of the courts;
37 (iv) Distributions and eligibility for distributions in the
38 1989-1991 biennium must be based on 1988 figures for both the crime
39 rate as described under (ii) of this subsection and the annual number
40 of criminal cases that are filed as described under (iii) of this
p. 2 E2SHB 1069.SL
 1 subsection. Future distributions must be based on the most recent
2 figures for both the crime rate as described under (ii) of this
3 subsection and the annual number of criminal cases that are filed as
4 described under (iii) of this subsection.
5 (3) Moneys distributed under this section must be expended
6 exclusively for criminal justice purposes ((and)). Except after the
7 effective date of this section through December 31, 2023, these funds
8 may not be used to replace or supplant existing funding. Criminal
9 justice purposes are defined as activities that substantially assist
10 the criminal justice system, which may include circumstances where
11 ancillary benefit to the civil or juvenile justice system occurs, and
12 which includes (a) domestic violence services such as those provided
13 by domestic violence programs, community advocates, and legal
14 advocates, as defined in RCW 70.123.020, and (b) during the 2001-2003
15 fiscal biennium, juvenile dispositional hearings relating to
16 petitions for at-risk youth, truancy, and children in need of
17 services. Existing funding for purposes of this subsection is defined
18 as calendar year 1989 actual operating expenditures for criminal
19 justice purposes. Calendar year 1989 actual operating expenditures
20 for criminal justice purposes exclude the following: Expenditures for
21 extraordinary events not likely to reoccur, changes in contract
22 provisions for criminal justice services, beyond the control of the
23 local jurisdiction receiving the services, and major nonrecurring
24 capital expenditures.
25 (4) Not more than five percent of the funds deposited to the
26 county criminal justice assistance account may be available for
27 appropriations for enhancements to the state patrol crime laboratory
28 system and the continuing costs related to these enhancements. Funds
29 appropriated from this account for such enhancements may not supplant
30 existing funds from the state general fund.
31 (5) During the 2017-2019 fiscal biennium, the sum of ((one
32 hundred fifty-three thousand dollars)) $153,000, and during the
33 2019-2021 fiscal biennium, the sum of ((five hundred ten thousand
34 dollars)) $510,000, may be appropriated for the Washington state
35 patrol to provide investigative assistance and report services to
36 assist local law enforcement agencies to prosecute criminals. It is
37 the intent of the legislature that this policy will be continued in
38 subsequent fiscal biennia.
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 1 Sec. 3. RCW 82.14.320 and 2011 1st sp.s. c 50 s 971 are each
2 amended to read as follows:
3 (1) The municipal criminal justice assistance account is created
4 in the state treasury. Beginning in fiscal year 2000, the state
5 treasurer must transfer into the municipal criminal justice
6 assistance account for distribution under this section from the
7 general fund the sum of ((four million six hundred thousand dollars))
8 $4,600,000 divided into four equal deposits occurring on July 1,
9 October 1, January 1, and April 1. For each fiscal year thereafter,
10 the state treasurer must increase the total transfer by the fiscal
11 growth factor, as defined in RCW 43.135.025, forecast for that fiscal
12 year by the office of financial management in November of the
13 preceding year.
14 (2) No city may receive a distribution under this section from
15 the municipal criminal justice assistance account unless:
16 (a) The city has a crime rate in excess of ((one hundred twenty-
17 five)) 125 percent of the statewide average as calculated in the most
18 recent annual report on crime in Washington state as published by the
19 Washington association of sheriffs and police chiefs;
20 (b) The city has levied the tax authorized in RCW 82.14.030(2) at
21 the maximum rate or the tax authorized in RCW 82.46.010(3) at the
22 maximum rate; and
23 (c) The city has a per capita yield from the tax imposed under
24 RCW 82.14.030(1) at the maximum rate of less than ((one hundred
25 fifty)) 150 percent of the statewide average per capita yield for all
26 cities from such local sales and use tax.
27 (3) The moneys deposited in the municipal criminal justice
28 assistance account for distribution under this section, less any
29 moneys appropriated for purposes under subsection (7) of this
30 section, must be distributed at such times as distributions are made
31 under RCW 82.44.150. The distributions must be made as follows:
32 (a) Unless reduced by this subsection, ((thirty)) 30 percent of
33 the moneys must be distributed ratably based on population as last
34 determined by the office of financial management to those cities
35 eligible under subsection (2) of this section that have a crime rate
36 determined under subsection (2)(a) of this section which is greater
37 than ((one hundred seventy-five)) 175 percent of the statewide
38 average crime rate. No city may receive more than ((fifty)) 50
39 percent of any moneys distributed under this subsection (a) but, if a
40 city distribution is reduced as a result of exceeding the ((fifty))
p. 4 E2SHB 1069.SL
 1 50 percent limitation, the amount not distributed must be distributed
2 under (b) of this subsection.
3 (b) The remainder of the moneys, including any moneys not
4 distributed in subsection (2)(a) of this section, must be distributed
5 to all cities eligible under subsection (2) of this section ratably
6 based on population as last determined by the office of financial
7 management.
8 (4) No city may receive more than ((thirty)) 30 percent of all
9 moneys distributed under subsection (3) of this section.
10 (5) Notwithstanding other provisions of this section, the
11 distributions to any city that substantially decriminalizes or
12 repeals its criminal code after July 1, 1990, and that does not
13 reimburse the county for costs associated with criminal cases under
14 RCW 3.50.800 or 3.50.805(2), must be made to the county in which the
15 city is located.
16 (6) Moneys distributed under this section must be expended
17 exclusively for criminal justice purposes ((and)). Except after the
18 effective date of this section through December 31, 2023, these funds
19 may not be used to replace or supplant existing funding. Criminal
20 justice purposes are defined as activities that substantially assist
21 the criminal justice system, which may include circumstances where
22 ancillary benefit to the civil justice system occurs, and which
23 includes domestic violence services such as those provided by
24 domestic violence programs, community advocates, and legal advocates,
25 as defined in RCW 70.123.020, and publications and public educational
26 efforts designed to provide information and assistance to parents in
27 dealing with runaway or at-risk youth. Existing funding for purposes
28 of this subsection is defined as calendar year 1989 actual operating
29 expenditures for criminal justice purposes. Calendar year 1989 actual
30 operating expenditures for criminal justice purposes exclude the
31 following: Expenditures for extraordinary events not likely to
32 reoccur, changes in contract provisions for criminal justice
33 services, beyond the control of the local jurisdiction receiving the
34 services, and major nonrecurring capital expenditures.
35 (7) Not more than five percent of the funds deposited to the
36 municipal criminal justice assistance account may be available for
37 appropriations for enhancements to the state patrol crime laboratory
38 system and the continuing costs related to these enhancements. Funds
39 appropriated from this account for such enhancements may not supplant
40 existing funds from the state general fund.
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1 (8) During the 2011-2013 fiscal biennium, the amount that would
2 otherwise be transferred into the municipal criminal justice
3 assistance account from the general fund under subsection (1) of this
4 section must be reduced by 3.4 percent.
5 Sec. 4. RCW 82.14.330 and 2011 1st sp.s. c 50 s 972 are each
6 amended to read as follows:
7 (1)(a) Beginning in fiscal year 2000, the state treasurer must
8 transfer into the municipal criminal justice assistance account for
9 distribution under this section from the general fund the sum of
10 ((four million six hundred thousand dollars)) $4,600,000 divided into
11 four equal deposits occurring on July 1, October 1, January 1, and
12 April 1. For each fiscal year thereafter, the state treasurer must
13 increase the total transfer by the fiscal growth factor, as defined
14 in RCW 43.135.025, forecast for that fiscal year by the office of
15 financial management in November of the preceding year. The moneys
16 deposited in the municipal criminal justice assistance account for
17 distribution under this section, less any moneys appropriated for
18 purposes under subsection (4) of this section, must be distributed to
19 the cities of the state as follows:
20 (i) ((Twenty)) 20 percent appropriated for distribution must be
21 distributed to cities with a three-year average violent crime rate
22 for each ((one thousand)) 1,000 in population in excess of ((one
23 hundred fifty)) 150 percent of the statewide three-year average
24 violent crime rate for each ((one thousand)) 1,000 in population. The
25 three-year average violent crime rate must be calculated using the
26 violent crime rates for each of the preceding three years from the
27 annual reports on crime in Washington state as published by the
28 Washington association of sheriffs and police chiefs. Moneys must be
29 distributed under this subsection (1)(a) ratably based on population
30 as last determined by the office of financial management, but no city
31 may receive more than one dollar per capita. Moneys remaining
32 undistributed under this subsection at the end of each calendar year
33 must be distributed to the criminal justice training commission to
34 reimburse participating city law enforcement agencies with ((ten)) 10
35 or fewer full-time commissioned patrol officers the cost of temporary
36 replacement of each officer who is enrolled in basic law enforcement
37 training, as provided in RCW 43.101.200.
38 (ii) ((Sixteen)) 16 percent must be distributed to cities ratably
39 based on population as last determined by the office of financial
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 1 management, but no city may receive less than ((one thousand
2 dollars)) $1,000.
3 (b) The moneys deposited in the municipal criminal justice
4 assistance account for distribution under this subsection (1) must be
5 distributed at such times as distributions are made under RCW
6 82.44.150.
7 (c) Moneys distributed under this subsection (1) must be expended
8 exclusively for criminal justice purposes ((and)). Except after the
9 effective date of this section through December 31, 2023, these funds
10 may not be used to replace or supplant existing funding. Criminal
11 justice purposes are defined as activities that substantially assist
12 the criminal justice system, which may include circumstances where
13 ancillary benefit to the civil justice system occurs, and which
14 includes domestic violence services such as those provided by
15 domestic violence programs, community advocates, and legal advocates,
16 as defined in RCW 70.123.020. Existing funding for purposes of this
17 subsection is defined as calendar year 1989 actual operating
18 expenditures for criminal justice purposes. Calendar year 1989 actual
19 operating expenditures for criminal justice purposes exclude the
20 following: Expenditures for extraordinary events not likely to
21 reoccur, changes in contract provisions for criminal justice
22 services, beyond the control of the local jurisdiction receiving the
23 services, and major nonrecurring ca