[atlas:bill]

AN ACT Relating to creating a special impact mitigation assistance program to offset the impact of the construction of a nuclear waste treatment and immobilization plant; reenacting and amending RCW 43.79A.040; adding a new section to chapter 82.32 RCW; adding a new section to chapter 70.99 RCW; creating a new section; and providing an effective date.

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

NEW SECTION. Sec. 1. The legislature recognizes the fiscal impact the proposed nuclear waste treatment and immobilization plant at Hanford will have on local government operations from the influx of thousands of workers constructing the plant. The legislature further recognizes that the facility will be located on federal land, which is exempt from property taxation. Therefore, the local governments have limited tax sources to offset these increased costs. It is the intent of the legislature to create a special impact mitigation assistance program funded by a portion of the state business and occupation tax collected from the prime contractor on the construction of the project.

NEW SECTION. Sec. 2. A new section is added to chapter 82.32 RCW to read as follows:

(1) As provided in subsection (2) of this section, the business and occupation tax imposed under chapter 82.04 RCW and remitted by the prime contractor responsible for the construction and/or commissioning of a nuclear waste treatment and immobilization plant shall be deposited into the nuclear waste mitigation account created in section 3 of this act.

(2)(a) Beginning July 1, 2002, and ending no later than December 31, 2012, the department shall, on a quarterly basis, transmit the tax proceeds under subsection (1) of this section to the state treasurer who shall deposit them into the nuclear waste mitigation account.

(b) Distributions under this section may not exceed two million dollars in any one year. Total distributions may not exceed ten million dollars.

(c) The distribution under this section shall be made based on an estimate of the tax remitted to the department by the prime contractor that is attributable to the contract for construction and/or commissioning of a nuclear waste treatment and immobilization plant. The estimate shall be done using information obtained from the United States department of energy and from the affected taxpayer.

NEW SECTION. Sec. 3. A new section is added to chapter 70.99 RCW to read as follows:

The nuclear waste mitigation account is created in the custody of the state treasurer. Receipts from section 2 of this act must be deposited into the account. The state treasurer shall annually distribute the money in the account to the county or counties where construction takes place. Money received by a county or counties must be distributed by the county or counties to local governments using a formula devised by the Hanford communities organization, created pursuant to interlocal agreement under chapter 39.34 RCW. Only the state treasurer may authorize the annual distributions from this account. The account is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures. Notwithstanding the provisions of RCW 43.84.092, investment earnings on the funds shall be deposited into the nuclear waste mitigation account.

Sec. 4. RCW 43.79A.040 and 2001 c 201 s 4 and 2001 c 184 s 4 are each reenacted and amended to read as follows:

(1) Money in the treasurer's trust fund may be deposited, invested, and reinvested by the state treasurer in accordance with RCW 43.84.080 in the same manner and to the same extent as if the money were in the state treasury.

(2) All income received from investment of the treasurer's trust fund shall be set aside in an account in the treasury trust fund to be known as the investment income account.

(3) The investment income account may be utilized for the payment of purchased banking services on behalf of treasurer's trust funds including, but not limited to, depository, safekeeping, and disbursement functions for the state treasurer or affected state agencies. The investment income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for payments to financial institutions. Payments shall occur prior to distribution of earnings set forth in subsection (4) of this section.

(4)(a) Monthly, the state treasurer shall distribute the earnings credited to the investment income account to the state general fund except under (b) and (c) of this subsection.

(b) The following accounts and funds shall receive their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The college savings program account, the Washington advanced college tuition payment program account, the agricultural local fund, the American Indian scholarship endowment fund, the basic health plan self-insurance reserve account, the Washington international exchange scholarship endowment fund, the developmental disabilities endowment trust fund, the energy account, the fair fund, the game farm alternative account, the grain inspection revolving fund, the juvenile accountability incentive account, the nuclear waste mitigation account, the rural rehabilitation account, the stadium and exhibition center account, the youth athletic facility account, the self-insurance revolving fund, the sulfur dioxide abatement account, and the children's trust fund. However, the earnings to be distributed shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.

(c) The following accounts and funds shall receive eighty percent of their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The advanced right of way revolving fund, the advanced environmental mitigation revolving account, the city and county advance right-of-way revolving fund, the federal narcotics asset forfeitures account, the high occupancy vehicle account, the local rail service assistance account, and the miscellaneous transportation programs account.

(5) In conformance with Article II, section 37 of the state Constitution, no trust accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

NEW SECTION. Sec. 5. This act takes effect July 1, 2002.