2673-S2 AMH ORCU MATT 042

2SHB 2673 - H AMD TO H AMD (H5219.1/06) 932

By Representative Orcutt

ADOPTED 2/14/2006

   On page 1 of the amendment, line 26, strike all of subsection (5) and insert the following:

   "(5) "Board" means the community economic revitalization board under chapter 43.160 RCW."

   On page 6 of the amendment, line 16, after "the" strike "department" and insert "board"

   On page 6 of the amendment, line 27, after "by the" strike "department" and insert "board"

   On page 8 of the amendment, line 7, after "the" strike "department" and insert "board"

   On page 8 of the amendment, line 17, strike the remainder of the section and insert the following:

   (2) As a condition to imposing a sales and use tax under section 301 of this act, a city, town, or county must apply to the board at least one hundred fifty days before the effective date of any such tax. The application shall be in a form and manner prescribed by the board and shall include but is not limited to information establishing that the applicant is eligible to impose such a tax, the anticipated effective date for imposing the tax, the estimated number of years that the tax will be imposed, and the estimated amount of tax revenue to be received in each fiscal year that the tax will be imposed. For purposes of this section, "fiscal year" means the year beginning July 1st and ending the following June 30th. The board shall make available forms to be used for this purpose. As part of the application, a city, town, or county must provide to the board a copy of the ordinance creating the revenue development area as required in section 206 of this act. The board shall rule on completed applications within sixty days of receipt. The board may begin accepting and approving applications August 1, 2006. No new applications shall be considered by the board after the thirtieth day of September of the third year following the year in which the first application was received by the board.

   (3) The board shall establish a competitive process to prioritize applications and shall approve any tax that may be imposed under section 401 of this act. The board shall consult with the department of revenue in approving a proposed tax.

   (4) The board shall apply the following criteria for evaluation and ranking of applications:

   (a) The relative benefits provided to the community by the proposed economic or community development, including employment;

   (b) The present level of economic activity in the community and the existing local financial capacity to increase economic activity in the community;

   (c) The rate of return of the state's investment, that includes the expected increase in state and local tax revenues associated with the project;

   (d) The lack of another timely source of funding available to finance the project which would likely prevent the proposed community or economic development, absent the financing available under this act;

   (e) The ability of the project to improve the viability of existing business entities in the project area;

   (f) Whether or not the project is a partnership of multiple jurisdictions;

   (g) Demonstration that the requested assistance will directly stimulate community and economic development by facilitating the creation of new jobs or the retention of existing jobs; and

   (h) The availability of existing assets that applicants may apply to projects.

   (5)(a) A proposed tax may not be approved unless the applicant has entered into or expects to enter into a contract with a private developer relating to private investment that will result in the creation or retention of jobs upon completion of the project; and

   (b) A proposed tax may not be approved if the expected development will result in the relocation of jobs from another part of the state into the revenue development area, as defined in section 102 of this act.

   (6) As a part of the approval of applications under this section, the board shall approve the project award, the amount of tax under section 401 of this act, that an applicant may impose. The board shall consult with the department of revenue in determining the amount. The amount of tax approved by the board shall not exceed the lesser of one million dollars or the average amount of tax revenue that the applicant estimates that it will receive in all fiscal years through the imposition of a sales and use tax under section 401 of this act. A city, town, or county shall not receive, in any fiscal year, more revenues from taxes imposed under section 401 of this act than the amount approved by the board. The board shall not approve the receipt of more credit against the state sales and use tax than is authorized under subsection (7) of this section.

   (7) No more than five million dollars of credit against the state sales and use tax may be received by all cities, towns, and counties in any fiscal year.

   (8) The credit against the state sales and use tax shall be available to any city, town, or county imposing a tax under section 401 of this act only as long as the city, town, or county has outstanding indebtedness under section 501 of this act."

   Correct internal references accordingly

   On page 13 of the amendment, line 9, after "located," insert "the board,"

   On page 14 of the amendment, line 7, after "located," insert "the board,"

   On page 14 of the amendment, line 22, strike all of subsection (2) and insert the following:

   "(2) A sponsoring local government shall provide the board and the department accurate information describing the geographical boundaries of the revenue development area at the time of application. The information shall be provided in an electronic format or manner as prescribed by the department. The sponsoring local government shall ensure that the boundary information provided to the board and the department is kept current."

   On p. 16 of the amendment, line 23, after "the" strike "department" and insert "board"

   On p. 17 of the amendment, line 10, after "the" strike "department" and insert "board"

   On p. 18 of the amendment, line 30, strike all of subsection (8) and insert the following:

   "(8) Each year, the amount of taxes approved by the board for distribution to a sponsoring local government in the next fiscal year shall be the lesser of the amount of the project award in the approval notice described in section 202 of this act or the amount equal to the state contribution. The board shall consider information from reports described in section 403 of this act when determining the amount of state contributions for each fiscal year. A sponsoring local government shall not receive, in any fiscal year, more revenues from taxes imposed under the authority of this section than the amount approved annually by the board. The board shall not approve the receipt of more distributions of sales and use tax under this section to a sponsoring local government than is authorized under subsection (3) of this section."

   On p. 19 of the amendment, line 11, after "(10)" insert "(a) For the purposes of this section, "Board" means the community economic revitalization board under chapter 43.160 RCW.

   (b)"

   On p. 19 of the amendment, line 18, after "the" strike "department" and insert "board"

   On p. 20 of the amendment, line 6, after "The" strike "department" and insert "board"

   On p. 20 of the amendment, line 10, after "to the" strike "department" and insert "board"

EFFECT: Removes the demonstration projects and makes eligibility to impose new state-shared tax contingent upon approval by CERB.