5529 AMS REAR WILS 053

SB 5529 - S AMD 361

By Senator Reardon

4/14/03 ADOPTED

On page 3, after line 32, strike the remainder of the bill and insert the following:

"(10) This section expires ((December 31, 2004)) January 1, 2015.

NEW SECTION. Sec. 2. A new section is added to chapter 50.38 RCW to read as follows:

(1) Based upon information provided to the department by the department of revenue and data obtained by the department from employers for other lawful purposes, the department shall identify for the year before and every five years after the renewal of the tax credit in RCW 82.04.4452 the following information:

(a) North American industry classification for businesses utilizing the tax credit;

(b) The number of employees, reported in aggregate by North American industry classification, employed by businesses utilizing the tax credit;

(c) The average wages received by persons, reported by North American industry classification, employed by businesses utilizing the tax credit.

(2) The department shall provide to the joint legislative audit and review committee, for the year before and every five years after the renewal of the tax credit in RCW 82.04.4452, a report containing the following information:

(a) The number of businesses, reported in aggregate by North American industry classification, utilizing the tax credit;

(b) The number of employees, reported in aggregate by North American industry classification, employed by businesses utilizing the tax credit;

(c) The average wages of employees employed by businesses utilizing the tax credit reported in aggregate, and grouped by North American industry classification.

(3) All information shall be based on calendar year data and shall be provided to the joint legislative audit and review committee by the fifteenth day of March of the year before and every five years after the renewal of the tax credit in RCW 82.04.4452.

(4) Nothing in this section shall be construed to affect in any way the right of privacy and confidentiality as to individual and employer records maintained by the department, as provided under RCW 50.13.020.

NEW SECTION. Sec. 3. A new section is added to chapter 82.32 RCW to read as follows:

(1) Based upon information provided by taxpayers, on Form 26-0003e-1, or its successor form, or Form Rev 81-1013-1, or its successor form, or Form 81-1012, or its successor form, to the department, the department shall identify for the year before and every five years after the renewal of the tax credit in RCW 82.04.4452 the following information:

(a) The businesses utilizing the tax credit;

(b) The total value of the tax credit taken by each business for that year;

(c) The qualifying investment made by the business utilizing the tax credit.

(2) The department shall provide to the employment security department a list of all businesses utilizing the tax credit and the North American industry classification of each business. This information shall be based on calendar year data and shall be provided to the employment security department by the fifteenth day of February of the year before and every five years after the renewal of the tax credit in RCW 82.04.4452.

(3) The department shall provide to the joint legislative audit and review committee the number of businesses utilizing the tax credit, the value of the credit received, and the value of qualifying investments made by businesses utilizing the tax credit, reported in aggregate by North American industry classification. This information shall be based on calendar year data and shall be provided to the joint legislative audit and review committee by the fifteenth day of February of the year before and every five years after the renewal of the tax credit in RCW 82.04.4452.

(4) Nothing in this section shall be construed to affect in any way the right of privacy and confidentiality as to individual and employer records maintained by the department as provided under RCW 82.32.330.

NEW SECTION. Sec. 4. A new section is added to chapter 44.28 RCW to read as follows:

(1) The joint legislative audit and review committee shall provide a report to the legislature the year before and every five years after the renewal of the tax credit in RCW 82.04.4452. The report shall be based upon information provided by the employment security department and the department of revenue. Proprietary information shall remain confidential as otherwise provided by law. The report shall include, but is not limited to:

(a) Total value of tax revenue forgone as a result of the tax credit;

(b) Total value of qualifying investments made under the tax credit;

(c) Direct employment created or retained that is associated with the tax credit and average wages, reported in aggregate by North American industry classification;

(d) Total indirect employment created or retained associated with the tax deferral;

(e) Additional sales, property, and business and occupation tax revenues associated with the tax credit.

(2) In conducting this evaluation, the joint legislative audit and review committee shall use a generally accepted economic model and may contract with outside economic experts."

SB 5529 - S AMD

By Senator ....

On page 1, line 2 of the title, after "credit;" strike "and"

On page 1, line 3 of the title, after "82.04.4452" insert "; adding a new section to chapter 50.38 RCW; adding a new section to chapter 82.32 RCW; adding a new section to chapter 44.28 RCW; and providing an expiration date."

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EFFECT: Provides a 10-year expiration date and requires a study by JLARC.