BILL REQ. #:  H-3230.3 

Read first time 01/16/14.   Referred to Committee on Technology & Economic Development.

     AN ACT Relating to improving the methods for evaluation of the local infrastructure financing tool program; amending RCW 39.102.140 and 39.102.200; creating a new section; repealing 2010 c 164 s 13 (uncodified); repealing 2009 c 518 s 25 (uncodified); repealing 2009 c 267 s 9 (uncodified); repealing 2008 c 209 s 2 (uncodified); and repealing 2007 c 229 s 17 (uncodified).

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   (1) The department of commerce shall submit a report to the legislature by November 1, 2014, evaluating the data and information collection methodologies used by sponsoring local governments to comply with the requirements of RCW 39.102.140. The report must include: (a) An evaluation of the methodologies used by sponsoring local governments to collect data and information; (b) an evaluation of the reliability of the data and information reported by sponsoring local governments; and (c) recommendations for changes to the reporting requirements, the data and information collection methodologies used by sponsoring local governments, or other features of the local infrastructure financing tool program in order to ensure that the information reported under RCW 39.102.140 is suitable for evaluating the effectiveness of the local infrastructure financing tool program.
     (2) Sponsoring local governments must, upon request, provide the department of commerce with information necessary for the completion of the report required under this section.

Sec. 2   RCW 39.102.140 and 2013 2nd sp.s. c 21 s 5 are each amended to read as follows:
     (1) A sponsoring local government shall provide a report to the board and the department by March 1st of each year. The report shall contain the following information:
     (a) The amount of local excise tax allocation revenues, local property tax allocation revenues, other revenues from local public sources, and taxes under RCW 82.14.475 received by the sponsoring local government, cosponsoring local government, or any participating local government during the preceding calendar year that were dedicated to pay the public improvements financed in whole or in part with local infrastructure financing, and a summary of how these revenues were expended;
     (b) The names of any businesses locating within the revenue development area as a result of the public improvements undertaken by the sponsoring local government and financed in whole or in part with local infrastructure financing;
     (c) The total number of permanent jobs created in the revenue development area as a result of the public improvements undertaken by the sponsoring local government and financed in whole or in part with local infrastructure financing;
     (d) The average wages and benefits received by all employees of businesses locating within the revenue development area as a result of the public improvements undertaken by the sponsoring local government and financed in whole or in part with local infrastructure financing;
     (e) That the sponsoring local government is in compliance with RCW 39.102.070; and
     (f) Beginning with the reports due March 1, 2010, the following must also be included:
     (i) A list of public improvements financed on a pay-as-you-go basis in previous calendar years and by indebtedness issued under this chapter;
     (ii) The date when any indebtedness issued under this chapter is expected to be retired;
     (iii) At least once every three years, updated estimates of state excise tax allocation revenues, state property tax allocation revenues, and local excise tax increments, as determined by the sponsoring local government, that are estimated to have been received by the state, any participating local government, sponsoring local government, and cosponsoring local government, since the approval of the project award under RCW 39.102.040 by the board; and
     (iv) Any other information required by the department or the board to enable the department or the board to fulfill its duties under this chapter and RCW 82.14.475.
     (2) The board shall make a report available to the public and the legislature by June 1st of each even-numbered year. The report shall include a list of public improvements undertaken by sponsoring local governments and financed in whole or in part with local infrastructure financing and it shall also include a summary of the information provided to the department by sponsoring local governments under subsection (1) of this section.
     (3) The department, upon request, must assist a sponsoring local government in estimating the amount of state excise tax allocation revenues and local excise tax increments required in subsection (1)(f)(iii) of this section.
     (4) The board, the department, the department of commerce, the employment security department, and sponsoring local governments must, upon request, provide the joint legislative audit and review committee with assistance in collecting data and information necessary for the completion of the report required in RCW 39.102.200.

Sec. 3   RCW 39.102.200 and 2006 c 181 s 601 are each amended to read as follows:
     Beginning September 1, 2013, and continuing every five years thereafter, the joint legislative audit and review committee shall submit a report to the appropriate committees of the legislature evaluating the economic activity in revenue development areas.
     (1) ((The report shall, at a minimum, evaluate the effectiveness of the local infrastructure financing tool program, including a project-by-project review. The report shall evaluate the project's interim results based on the selection criteria. The report shall also measure:
     (a) Employment changes in the revenue development area;
     (b) Property tax changes in the revenue development area;
     (c) Sales and use tax changes in the revenue development area;
     (d) Property value changes in the revenue development area; and
     (e) Changes in housing and existing commercial activities based on the impact analysis and mitigation plan required in RCW 39.102.080(2))) The report must include:
     (a) A description of the information used to evaluate the economic activity within each revenue development area;
     (b) An assessment of whether economic activity has increased, decreased, or remained stagnant within each revenue development area, which may include an analysis of employment changes, property tax changes, sales and use tax changes, property value changes, or any other appropriate measures of economic activity; and
     (c) An assessment of whether a change in economic activity in each revenue development area can be attributed to the local infrastructure financing tool program, unless completion of the assessment is not possible with the information available to the joint legislative audit and review committee.
     (2) The report that is due September 1, 2028, should also include any recommendations regarding whether or not the program should be expanded statewide and what impact the expansion would have on economic development in Washington.
     (3) The joint legislative audit and review committee may use information collected by the board, the department, the department of commerce, sponsoring local governments, the employment security department, and other entities as needed to complete reports. The joint legislative audit and review committee may request information and assistance from the board, the department, the department of commerce, sponsoring local governments, and the employment security department as needed to complete reports.
     (4) The joint legislative audit and review committee is not required to comply with the "Government Auditing Standards" under RCW 44.28.065 in completing reports under this section if the legislative auditor finds that compliance with those standards is not possible as a result of incomplete or inaccurate information. In such case, the report must include: (a) Notice that the evaluation was not completed in accordance with the "Government Auditing Standards;" (b) an assessment of the reliability of the evaluation and report; and (c) a description of the information or assistance necessary to complete the next report in accordance with the "Government Auditing Standards."

NEW SECTION.  Sec. 4   The following acts or parts of acts are each repealed:
     (1) 2010 c 164 s 13 (uncodified);
     (2) 2009 c 518 s 25 (uncodified);
     (3) 2009 c 267 s 9 (uncodified);
     (4) 2008 c 209 s 2 (uncodified); and
     (5) 2007 c 229 s 17 (uncodified).