BILL REQ. #:  S-4476.1 

Read first time 01/23/2006.   Referred to Committee on Water, Energy & Environment.

     AN ACT Relating to a state public utility tax credit for providing special needs transportation services; adding a new section to chapter 82.16 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   A new section is added to chapter 82.16 RCW to read as follows:
     (1) Subject to the limitations in this section, an eligible light and power business may claim a credit against the tax imposed under this chapter.
     (2) The amount of credit is equal to the amount of contributions made in any fiscal year by an eligible light and power business to a public utility district special needs transportation fund.
     (3) The credit under this section shall not exceed twenty-five thousand dollars per fiscal year per eligible light and power business.
     (4) The credit under this section shall be claimed against taxes due for the same fiscal year in which contributions to a public utility district special needs transportation fund are made by the eligible light and power business. The credit claimed for each reporting period shall not exceed the amount of tax otherwise due under this chapter for the reporting period. Credit earned in any fiscal year shall not be carried forward or backward and claimed against taxes due for prior or subsequent fiscal years. Refunds shall not be granted in the place of a credit. Any unused credit expires.
     (5) Any amounts paid to an eligible light and power business by qualified recipients for ADA-compliant transportation provided or acquired by the light and power business for the qualified recipient making the payment shall be deposited into the public utility district special needs transportation fund.
     (6) If contributions for which a credit under this section was claimed are remaining in a public utility district special needs transportation fund at the time that the fund is dissolved or are otherwise not used for ADA-compliant transportation, the light and power business shall immediately repay to the department the amount of taxes against which the credit was claimed. Interest, but not penalties, shall apply to amounts due under this subsection, retroactively to the date the credit was claimed, and shall accrue until the taxes against which the credit was claimed are repaid.
     (7) Unless the context clearly requires otherwise, the definitions in this subsection apply throughout this section.
     (a) "ADA-compliant transportation" means general purpose transportation services that meet the requirements of the Americans with Disabilities Act of 1990, 42 U.S.C. Sec. 12101 et seq., applicable to public entities operating a demand responsive transportation system. For purposes of this subsection (7)(a), "demand responsive transportation system" means any transportation system other than a transportation system that operates along a prescribed route according to a fixed schedule. Demand responsive transportation systems typically include services provided by taxis, limousines, vans, or shuttle buses.
     (b) "Eligible light and power business" means a light and power business that:
     (i) Is a public utility district authorized under Title 54 RCW; and
     (ii) Primarily or exclusively serves residents of a rural area.
     (c) "Fiscal year" means a year that begins July 1st and ends June 30th of the following year.
     (d) "Public utility district special needs transportation fund" means a fund established by an eligible light and power business that is devoted and used exclusively by the eligible light and power business in:
     (i) Providing or acquiring ADA-compliant transportation for qualified recipients; and
     (ii) Acquiring motor vehicles or other transportation equipment necessary for the eligible light and power business to provide ADA-compliant transportation for qualified recipients.
     (e) "Qualified recipient" means any person, including his or her personal attendants, with a disability or who is at least sixty years of age, resides in a rural area, and who because of physical or mental disability, income status, or age is unable to transport himself or herself or to purchase appropriate transportation. For purposes of this subsection (7)(e), "person with a disability" means an individual with a physical or mental impairment that substantially limits one or more of the major life activities such as caring for one's self, performing manual tasks, walking, seeing, hearing, speaking, breathing, learning, or working.
     (f) "Rural area" means a county that has a population density of less than nine persons per square mile as determined by the office of financial management.

NEW SECTION.  Sec. 2   This act applies to contributions made to a public utility district special needs transportation fund, as defined in section 1 of this act, after the effective date of this section.

NEW SECTION.  Sec. 3   This act takes effect July 1, 2006.