BILL REQ. #:  S-0840.1 

Read first time 01/21/2005.   Referred to Committee on International Trade & Economic Development.

     AN ACT Relating to the economic development strategic reserve account; amending RCW 67.70.190, 82.45.060, and 82.16.020; and adding a new section to chapter 43.330 RCW.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 43.330 RCW to read as follows:
     (1) The economic development strategic reserve account is created in the state treasury. Expenditures from the account may only be used to:
     (a) Provide support to the economic development commission;
     (b) Implement economic development projects consistent with the state's economic development strategy as updated by the economic development commission; or
     (c) Provide interim financing to augment existing public or industry association economic development programs.
     (2) Only the director of the department of community, trade, and economic development, or the director's designee, may authorize expenditures from the account. The director shall authorize funding for a minimum of one full-time equivalent staff position for the economic development commission.
     (3) The director shall not fund projects unless:
     (a) The project is or will be supported by the maximum feasible amount of local and private financial participation;
     (b) The project will produce significant long-term, regional, or statewide economic impacts;
     (c) The project will not require continuing state subsidies;
     (d) The project will not supplant private investment or duplicate similar efforts; and
     (e) The project will result in new jobs, job retention, or higher incomes for Washingtonians.

Sec. 2   RCW 67.70.190 and 1994 c 218 s 5 are each amended to read as follows:
     Unclaimed prizes shall be retained in the state lottery account for the person entitled thereto for one hundred eighty days after the drawing in which the prize is won, or after the official end of the game for instant prizes. If no claim is made for the prize within this time, the prize shall be ((retained in the state lottery fund for further use as prizes,)) deposited in the economic development strategic reserve account created in section 1 of this act and all rights to the prize shall be extinguished.

Sec. 3   RCW 82.45.060 and 2000 c 103 s 15 are each amended to read as follows:
     There is imposed an excise tax upon each sale of real property at the rate of one and twenty-eight one-hundredths percent of the selling price. An amount equal to seven and seven-tenths percent of the proceeds of this tax to the state treasurer shall be deposited in the public works assistance account created in RCW 43.155.050. An amount equal to one and one-half percent of the proceeds of this tax to the state treasurer shall be deposited in the economic development strategic reserve account created in section 1 of this act.

Sec. 4   RCW 82.16.020 and 1996 c 150 s 2 are each amended to read as follows:
     (1) There is levied and there shall be collected from every person a tax for the act or privilege of engaging within this state in any one or more of the businesses herein mentioned. The tax shall be equal to the gross income of the business, multiplied by the rate set out after the business, as follows:
     (a) Express, sewerage collection, and telegraph businesses: Three and six-tenths percent;
     (b) Light and power business: Three and sixty-two one-hundredths percent;
     (c) Gas distribution business: Three and six-tenths percent;
     (d) Urban transportation business: Six-tenths of one percent;
     (e) Vessels under sixty-five feet in length, except tugboats, operating upon the waters within the state: Six-tenths of one percent;
     (f) Motor transportation, railroad, railroad car, and tugboat businesses, and all public service businesses other than ones mentioned above: One and eight-tenths of one percent;
     (g) Water distribution business: Four and seven-tenths percent.
     (2) An additional tax is imposed equal to the rate specified in RCW 82.02.030 multiplied by the tax payable under subsection (1) of this section.
     (3) Twenty percent of the moneys collected under subsection (1) of this section on water distribution businesses and sixty percent of the moneys collected under subsection (1) of this section on sewerage collection businesses shall be deposited in the public works assistance account created in RCW 43.155.050.
     (4) Five percent of the moneys collected under subsection (1) of this section on light and power businesses and five percent of the moneys collected under subsection (1) of this section on gas distribution businesses shall be deposited in the economic development strategic reserve account created in section 1 of this act.