[atlas:bill]

AN ACT Relating to subsidy disclosure; adding new sections to chapter 82.32 RCW; adding a new section to chapter 82.04 RCW; adding new sections to chapter 82.08 RCW; adding new sections to chapter 82.12 RCW; adding a new section to chapter 82.60 RCW; adding a new section to chapter 82.62 RCW; adding a new section to chapter 82.63 RCW; and creating a new section.

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

NEW SECTION. Sec. 1. The definitions in this section apply throughout sections 1 through 12 of this act unless the context clearly requires otherwise.

(1) "Benefit date" means the date that the recipient receives the business incentive. If the business incentive involves the purchase, lease, or donation of physical equipment, then the benefit date begins when the recipient acquires the equipment. If the business incentive is for improvements to property, then the benefit date refers to the earliest date when the improvements are finished for the entire project, unless the project is being done in phases.

(2) "Business incentive" or "incentive" means a tax credit, tax deferral, or tax exemption taken by or provided to a recipient under:

(a) Chapter 82.60, 82.62, or 82.63 RCW; or

(b) RCW 82.04.4452, 82.04.44525, 82.04.4456, 82.04.4457, 82.08.02565, 82.08.820, 82.12.02565, or 82.12.820.

(3) "Employee benefits" means employer-provided health or medical insurance, vacation or sick leave, and pension or retirement benefits.

(4) "Government agency" means a state government agency.

(5) "Grantor" means a state government agency with the authority to grant a business incentive or administer incentive programs.

(6) "Recipient" means any for-profit business entity that receives a business incentive.

(7) "State government agency" means any state agency that has the authority to award business incentives or administer programs identified in this section.

(8) "Wage bands" means the following five groupings of wage rates: (a) Up to state minimum wage plus two dollars per hour; (b) between state minimum wage plus two dollars and one cent to state minimum wage plus four dollars per hour; (c) between state minimum wage plus four dollars and one cent to state minimum wage plus six dollars per hour; (d) between state minimum wage plus six dollars and one cent to state minimum wage plus eight dollars per hour; (e) between state minimum wage plus eight dollars and one cent to state minimum wage plus ten dollars; and (f) greater than state minimum wage plus ten dollars per hour.

NEW SECTION. Sec. 2. (1) A recipient who during a calendar year has taken an exemption, credit, or deferral identified as a business incentive in this act must report as required by this section.

(2) The department of revenue shall evaluate the exemption under RCW 82.08.02565 and 82.12.02565 using a statistical sampling of recipients, rather than by a recipient report under subsection (1) of this section.

(3) The department of revenue shall develop the business incentive disclosure statement and make the form available electronically and in paper form and shall provide a copy of the form to all affected recipients. The recipient must provide to the government agency that provided the business incentive and the department of revenue a business incentive disclosure statement in the following format and that contains the following information:

WASHINGTON BUSINESS INCENTIVE DISCLOSURE STATEMENT

(Please return by March 1st of each year)

If during the previous calendar year you have received a tax exemption or taken a credit or qualified for an exemption or participated in a tax deferral program, or have been selected to participate in a statistical sampling conducted by the department of revenue, identified as a business incentive, you must fill out this form and return it to the department of revenue. Failure to submit a complete report renders that recipient prospectively ineligible for all of the programs identified as a business incentive.

Please type or print in dark ink.

1. Name and address of recipient of business incentive

2. Business Registration Number

3. Identification of project/location of project

4. Signature and phone number of person filling out form

5. Name of state agency providing business incentive

6. Type of business incentive (use separate form for each type of business incentive received)

7. Date business incentive agreement was signed (if applicable)

8. Date business incentive was provided

9. Date project (building, machinery, etc.) was placed in service, constructed, or acquired

10. Dollar value of business incentive

11. Job creation/retention goals for business receiving the incentive (please specify)

12. Average hourly wage goals for business receiving the incentive (per hour)

13. Actual jobs created/retained since business received the incentive (please specify)

14. Actual average hourly wage paid to employees hired since receiving the incentive

15. Goals of business incentive received, as a result of the business incentive: (Please indicate number of employees by category of job, e.g. full-time, part-time, or contingent/temporary job, number of employees per wage band, and indicate if employee benefits are provided)

16. Actual performance since project completed, as a result of the business incentive: (Please indicate number of employees by category of job, e.g. full-time, part-time, or contingent/temporary job, number of employees per wage band, and indicate if employee benefits are provided)

17. Last date actual wage and job creation/retention levels documented

18. Have all wage and job goals been achieved?

G Yes - do not submit future forms for this project

G No - please submit another form next year

19. Did you take the machinery and equipment exemption in the last year and if the answer is "yes" please estimate the amount of tax exempted?

20. Date this disclosure form completed

(4)(a) The department of revenue shall provide a business incentive disclosure report to the appropriate committees of the legislature by September 1st of each year and shall post a copy of the report on the department web site.

(b) The report shall include a compilation and a summary of the data gathered under this section. In addition, the report shall include a breakdown of the data by geographic area and by industry, as well as wage bands, benefits, job classification, and hiring levels. After September 1, 2004, the report shall include a section comparing the data over time.

(c) The report shall also include specific recommendations on whether the business incentives identified in section 1 of this act should be expanded or contracted based on the department's experience in producing the report and based on changes in statutes.

(5) A recipient who fails to submit a complete report under this section or who refuses to participate in the sampling under subsection (2) of this section is ineligible on a prospective basis for any of the business incentives identified in section 1 of this act. The department of revenue shall notify the recipient in writing by mail that he or she is no longer eligible for any of the identified business incentives. The recipient is ineligible the effective date of the postmark of the notice letter from the department of revenue. If the recipient satisfactorily completes the form or, if selected for the survey, participates in the survey, the department of revenue shall send a letter to the recipient indicating that the basis for the ineligibility has been corrected. The letter from the department of revenue is proof that eligibility on this basis has been restored, and is effective prospectively on the date the letter is postmarked.

(6) The confidentiality provisions of RCW 82.32.330 do not apply to the forms received by the department of revenue under this section or to any survey data gathered under this section and the forms and any data may be disclosed to the public.

NEW SECTION. Sec. 3. A new section is added to chapter 82.04 RCW to read as follows:

In addition to any other reporting requirements under this chapter, a recipient taking a credit under RCW 82.04.4452, 82.04.44525, 82.04.4456, or 82.04.4457 must complete and return the form in section 2 of this act to the department of revenue by March 1st of each year. A recipient who fails to report is ineligible on a prospective basis for the business incentives identified in section 1 of this act, subject to the provisions of section 2(5) of this act. As used in this section, "recipient" has the same meaning as in section 1 of this act.

NEW SECTION. Sec. 4. A new section is added to chapter 82.08 RCW to read as follows:

In addition to any other reporting requirements under RCW 82.08.820, a recipient taking the exemption under RCW 82.08.820 must complete and return the form in section 2 of this act to the department of revenue by March 1st of each year. A recipient who fails to do so is ineligible on a prospective basis for the business incentives identified in section 1 of this act, subject to the provisions of section 2(5) of this act. As used in this section, "recipient" has the same meaning as in section 1 of this act.

NEW SECTION. Sec. 5. A new section is added to chapter 82.08 RCW to read as follows:

In addition to any other reporting requirements under RCW 82.08.02565, a recipient taking the exemption as under RCW 82.08.02565 must, if asked in writing by the department of revenue, participate in a statistical sampling conducted under section 2 of this act. A recipient who fails to participate is ineligible on a prospective basis for the business incentives identified in section 1 of this act, subject to the provisions of section 2(5) of this act. As used in this section, "recipient" has the same meaning as in section 1 of this act.

NEW SECTION. Sec. 6. A new section is added to chapter 82.12 RCW to read as follows:

In addition to any other reporting requirements under RCW 82.12.820, a recipient taking the exemption under RCW 82.12.820 must complete and return the form in section 2 of this act to the department of revenue by March 1st of each year. A recipient who fails to do so is ineligible on a prospective basis for the business incentives identified in section 1 of this act, subject to the provisions of section 2(5) of this act. As used in this section, "recipient" has the same meaning as in section 1 of this act.

NEW SECTION. Sec. 7. A new section is added to chapter 82.12 RCW to read as follows:

In addition to any other reporting requirements under RCW 82.12.02565, a recipient taking the exemption as a credit under RCW 82.12.02565 must, if asked in writing by the department of revenue, participate in a statistical sampling conducted under section 2 of this act. A recipient who fails to participate is ineligible on a prospective basis for the business incentives identified in section 1 of this act, subject to the provisions of section 2(5) of this act. As used in this section, "recipient" has the same meaning as in section 1 of this act.

NEW SECTION. Sec. 8. A new section is added to chapter 82.60 RCW to read as follows:

In addition to any other requirements under this chapter, a recipient participating in the deferral program under this chapter must complete and return the form in section 2 of this act to the department of revenue by March 1st of each year. A recipient who fails to report is ineligible on a prospective basis for the business incentives identified in section 1 of this act, subject to the provisions of section 2(5) of this act. As used in this section, "recipient" has the same meaning as in section 1 of this act.

NEW SECTION. Sec. 9. A new section is added to chapter 82.62 RCW to read as follows:

In addition to any other requirements under this chapter, a recipient taking the credit under this chapter must complete and return the form in section 2 of this act to the department of revenue by March 1st of each year. A recipient who fails to report is ineligible on a prospective basis for the business incentives identified in section 1 of this act, subject to the provisions of section 2(5) of this act. As used in this section, "recipient" has the same meaning as in section 1 of this act.

NEW SECTION. Sec. 10. A new section is added to chapter 82.63 RCW to read as follows:

NEW SECTION. Sec. 11. Sections 1 and 2 of this act are each added to chapter 82.32 RCW.

NEW SECTION. Sec. 12. This act applies to all business incentives granted, received, or taken during calendar year 2002 and thereafter.