BILL REQ. #:  S-4776.3 

READ FIRST TIME 02/09/10.   

     AN ACT ((Relating to fiscal matters.)) Amending provisions related to Initiative Measure No. 960.

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

NEW SECTION.  Sec. 1   ((This act shall be known as the fiscal matters act of 2009.)) A new section is added to chapter 43.135 RCW to read as follows:
     In order to preserve funding for education, public safety, health care, and safety net services for elderly, disabled, and vulnerable people, it is the intent of the legislature to provide a means to stabilize revenue collections.

NEW SECTION.  Sec. 2   A new section is added to chapter 43.135 RCW to read as follows:
     (1) For any bill introduced in either the house of representatives or the senate that raises taxes as defined by RCW 43.135.035 or increases fees, the office of financial management must expeditiously determine its cost to the taxpayers in its first ten years of imposition, must promptly and without delay report the results of its analysis by public press release via e-mail to each member of the house of representatives, each member of the senate, the news media, and the public, and must post and maintain these releases on its web site. Any ten-year cost projection must include a year-by-year breakdown. For any bill containing more than one revenue source, a ten-year cost projection for each revenue source will be included along with the bill's total ten-year cost projection. The press release shall include the names of the legislators, and their contact information, who are sponsors and cosponsors of the bill so they can provide information to, and answer questions from, the public.
     (2) Any time any legislative committee schedules a public hearing on a bill that raises taxes as defined by RCW 43.135.035 or increases fees, the office of financial management must promptly and without delay report the results of its most up-to-date analysis of the bill required by subsection (1) of this section and the date, time, and location of the hearing by public press release via e-mail to each member of the house of representatives, each member of the senate, the news media, and the public, and must post and maintain these releases on its web site. The press release required by this subsection must include all the information required by subsection (1) of this section and the names of the legislators, and their contact information, who are members of the legislative committee conducting the hearing so they can provide information to, and answer questions from, the public.
     (3) Each time a bill that raises taxes as defined by RCW 43.135.035 or increases fees is approved by any legislative committee or by at least a simple majority in either the house of representatives or the senate, the office of financial management must expeditiously reexamine and redetermine its ten-year cost projection due to amendment or other changes during the legislative process, must promptly and without delay report the results of its most up-to-date analysis by public press release via e-mail to each member of the house of representatives, each member of the senate, the news media, and the public, and must post and maintain these releases on its web site. Any ten-year cost projection must include a year-by-year breakdown. For any bill containing more than one revenue source, a ten-year cost projection for each revenue source will be included along with the bill's total ten-year cost projection. The press release shall include the names of the legislators, and their contact information, and how they voted on the bill so they can provide information to, and answer questions from, the public.
     (4) For the purposes of this section, "names of legislators, and their contact information" includes each legislator's position (senator or representative), first name, last name, party affiliation (for example, Democrat or Republican), city or town they live in, office phone number, and office e-mail address.
     (5) For the purposes of this section, "news media" means any member of the press or media organization, including newspapers, radio, and television, that signs up with the office of financial management to receive the public press releases by e-mail.
     (6) For the purposes of this section, "the public" means any person, group, or organization that signs up with the office of financial management to receive the public press releases by e-mail.

Sec. 3   RCW 43.88A.020 and 2008 c 1 s 3 (Initiative Measure No. 960, approved November 6, 2007) are each amended to read as follows:
     The office of financial management shall, in cooperation with appropriate legislative committees and legislative staff, establish a procedure for the provision of fiscal notes on the expected impact of bills and resolutions which increase or decrease or tend to increase or decrease state government revenues or expenditures. Such fiscal notes shall indicate by fiscal year the impact for the remainder of the biennium in which the bill or resolution will first take effect as well as a cumulative forecast of the fiscal impact for the succeeding four fiscal years. Fiscal notes shall separately identify the fiscal impacts on the operating and capital budgets. Estimates of fiscal impacts shall be calculated using the procedures contained in the fiscal note instructions issued by the office of financial management.
     In establishing the fiscal impact called for pursuant to this chapter, the office of financial management shall coordinate the development of fiscal notes with all state agencies affected.
     ((The preparation and dissemination of the ongoing cost projections and other requirements of RCW 43.135.031 for bills increasing taxes or fees shall take precedence over fiscal notes.))

Sec. 4   RCW 43.88A.030 and 2008 c 1 s 4 (Initiative Measure No. 960, approved November 6, 2007) are each amended to read as follows:
     When a fiscal note is prepared and approved as to form, accuracy, and completeness by the office of financial management, which depicts the expected fiscal impact of a bill or resolution, copies shall be filed immediately with:
     (1) The chairperson of the committee to which the bill or resolution was referred upon introduction in the house of origin;
     (2) The senate committee on ways and means, or its successor; and
     (3) The house committees on revenue and appropriations, or their successors.
     Whenever possible, such fiscal note ((and, in the case of a bill increasing taxes or fees, the cost projection and other information required under RCW 43.135.031)) shall be provided prior to or at the time the bill or resolution is first heard by the committee of reference in the house of origin.
     When a fiscal note has been prepared for a bill or resolution, a copy of the fiscal note shall be placed in the bill books or otherwise attached to the bill or resolution and shall remain with the bill or resolution throughout the legislative process insofar as possible. ((For bills increasing taxes or fees, the cost projection and other information required by RCW 43.135.031 shall be placed in the bill books or otherwise attached to the bill or resolution and shall remain with the bill or resolution throughout the legislative process insofar as possible)).

Sec. 5   RCW 43.135.035 and 2009 c 479 s 36 are each amended to read as follows:
     (1) After July 1, 1995, any action or combination of actions by the legislature that raises state revenue or requires revenue-neutral tax shifts ((raises taxes)) may be taken only if approved by a ((two-thirds)) majority vote of each house ((of the legislature)), and then only if state expenditures in any fiscal year, including the new revenue, will not exceed the state expenditure limits established under this chapter. ((Pursuant to the referendum power set forth in Article II, section 1(b) of the state Constitution, tax increases may be referred to the voters for their approval or rejection at an election.))
     (2)(a) If the legislative action under subsection (1) of this section will result in expenditures in excess of the state expenditure limit, then the action of the legislature shall not take effect until approved by a vote of the people at a November general election. The state expenditure limit committee shall adjust the state expenditure limit by the amount of additional revenue approved by the voters under this section. This adjustment shall not exceed the amount of revenue generated by the legislative action during the first full fiscal year in which it is in effect. The state expenditure limit shall be adjusted downward upon expiration or repeal of the legislative action.
     (b) The ballot title for any vote of the people required under this section shall be substantially as follows:

     "Shall taxes be imposed on . . . . . . . in order to allow a spending increase above last year's authorized spending adjusted for personal income growth?"

     (3)(a) The state expenditure limit may be exceeded upon declaration of an emergency for a period not to exceed twenty-four months by a law approved by a two-thirds vote of each house of the legislature and signed by the governor. The law shall set forth the nature of the emergency, which is limited to natural disasters that require immediate government action to alleviate human suffering and provide humanitarian assistance. The state expenditure limit may be exceeded for no more than twenty-four months following the declaration of the emergency and only for the purposes contained in the emergency declaration.
     (b) Additional taxes required for an emergency under this section may be imposed only until thirty days following the next general election, unless an extension is approved at that general election. The additional taxes shall expire upon expiration of the declaration of emergency. The legislature shall not impose additional taxes for emergency purposes under this subsection unless funds in the education construction fund have been exhausted.
     (c) The state or any political subdivision of the state shall not impose any tax on intangible property listed in RCW 84.36.070 as that statute exists on January 1, 1993.
     (4) If the cost of any state program or function is shifted from the state general fund to another source of funding, or if moneys are transferred from the state general fund to another fund or account, the state expenditure limit committee, acting pursuant to RCW 43.135.025(5), shall lower the state expenditure limit to reflect the shift. For the purposes of this section, a transfer of money from the state general fund to another fund or account includes any state legislative action taken that has the effect of reducing revenues from a particular source, where such revenues would otherwise be deposited into the state general fund, while increasing the revenues from that particular source to another state or local government account. This subsection does not apply to: (a) The dedication or use of lottery revenues under RCW 67.70.240(3), in support of education or education expenditures; or (b) a transfer of moneys to, or an expenditure from, the budget stabilization account.
     (5) If the cost of any state program or function and the ongoing revenue necessary to fund the program or function are shifted to the state general fund on or after January 1, 2007, the state expenditure limit committee, acting pursuant to RCW 43.135.025(5), shall increase the state expenditure limit to reflect the shift ((unless the shifted revenue had previously been shifted from the general fund)).
     (((6) For the purposes of chapter 1, Laws of 2008, "raises taxes" means any action or combination of actions by the legislature that increases state tax revenue deposited in any fund, budget, or account, regardless of whether the revenues are deposited into the general fund.))

NEW SECTION.  Sec. 6   A new section is added to chapter 43.135 RCW to read as follows:
     (1) If legislative action raising taxes as defined by RCW 43.135.035 is blocked from a public vote or is not referred to the people by a referendum petition found to be sufficient under RCW 29A.72.250, a measure for an advisory vote of the people is required and shall be placed on the next general election ballot under chapter 1, Laws of 2008.
     (a) If legislative action raising taxes involves more than one revenue source, each tax being increased shall be subject to a separate measure for an advisory vote of the people under the requirements of chapter 1, Laws of 2008.
     (2) No later than the first of August, the attorney general will send written notice to the secretary of state of any tax increase that is subject to an advisory vote of the people, under the provisions and exceptions provided by chapter 1, Laws of 2008. Within five days of receiving such written notice from the attorney general, the secretary of state will assign a serial number for a measure for an advisory vote of the people and transmit one copy of the measure bearing its serial number to the attorney general as required by RCW 29A.72.040, for any tax increase identified by the attorney general as needing an advisory vote of the people for that year's general election ballot. Saturdays, Sundays, and legal holidays are not counted in calculating the time limits in this subsection.
     (3) For the purposes of this section, "blocked from a public vote" includes adding an emergency clause to a bill increasing taxes, bonding or contractually obligating taxes, or otherwise preventing a referendum on a bill increasing taxes.
     (4) If legislative action raising taxes is referred to the people by the legislature or is included in an initiative to the people found to be sufficient under RCW 29A.72.250, then the tax increase is exempt from an advisory vote of the people under chapter 1, Laws of 2008.

Sec. 7   RCW 29A.72.040 and 2008 c 1 s 7 (Initiative Measure No. 960, approved November 6, 2007) are each amended to read as follows:
     The secretary of state shall give a serial number to each initiative, referendum bill, or referendum measure, ((or measure for an advisory vote of the people,)) using a separate series for initiatives to the legislature, initiatives to the people, referendum bills, and referendum measures, ((and measures for an advisory vote of the people,)) and forthwith transmit one copy of the measure proposed bearing its serial number to the attorney general. Thereafter a measure shall be known and designated on all petitions, ballots, and proceedings as "Initiative Measure No. ....," "Referendum Bill No. ....," or "Referendum Measure No. ...((.," or "Advisory Vote No. .....))."

NEW SECTION.  Sec. 8   A new section is added to chapter 29A.72 RCW to read as follows:
     Within five days of receipt of a measure for an advisory vote of the people from the secretary of state under RCW 29A.72.040 the attorney general shall formulate a short description not exceeding thirty-three words and not subject to appeal, of each tax increase and shall transmit a certified copy of such short description meeting the requirements of this section to the secretary of state. The description must be formulated and displayed on the ballot substantially as follows:

"The legislature imposed, without a vote of the people, (identification of tax and description of increase), costing (most up-to-date ten-year cost projection, expressed in dollars and rounded to the nearest million) in its first ten years, for government spending. This tax increase should be:

                Repealed . . . [ ]
               Maintained . . . [ ]"

Saturdays, Sundays, and legal holidays are not counted in calculating the time limits in this section. The words "This tax increase should be: Repealed . . . [ ] Maintained . . . [ ]" are not counted in the thirty-three word limit for a short description under this section.

NEW SECTION.  Sec. 9   A new section is added to chapter 29A.72 RCW to read as follows:
     When the short description is finally established under RCW 29A.72.283, the secretary of state shall file the instrument establishing it with the proposed measure and transmit a copy thereof by mail to the chief clerk of the house of representatives, the secretary of the senate, and to any other individuals who have made written request for such notification. Thereafter such short description shall be the description of the measure in all ballots and other proceedings in relation thereto.

Sec. 10   RCW 29A.72.250 and 2008 c 1 s 10 (Initiative Measure No. 960, approved November 6, 2007) are each amended to read as follows:
     If a referendum or initiative petition for submission of a measure to the people is found sufficient, the secretary of state shall at the time and in the manner that he or she certifies *for the county auditors of the various counties the names of candidates for state and district officers certify to each county auditor the serial numbers and ballot titles of the several initiative and referendum measures ((and serial numbers and short descriptions of measures submitted for an advisory vote of the people)) to be voted upon at the next ensuing general election or special election ordered by the legislature.

Sec. 11   RCW 29A.72.290 and 2008 c 1 s 11 (Initiative Measure No. 960, approved November 6, 2007) are each amended to read as follows:
     The county auditor of each county shall print on the official ballots for the election at which initiative and referendum measures ((and measures for an advisory vote of the people)) are to be submitted to the people for their approval or rejection, the serial numbers and ballot titles certified by the secretary of state ((and the serial numbers and short descriptions of measures for an advisory vote of the people)). They must appear under separate headings in the order of the serial numbers as follows:
     (1) Measures proposed for submission to the people by initiative petition will be under the heading, "Proposed by Initiative Petition";
     (2) Bills passed by the legislature and ordered referred to the people by referendum petition will be under the heading, "Passed by the Legislature and Ordered Referred by Petition";
     (3) Bills passed and referred to the people by the legislature will be under the heading, "Proposed to the People by the Legislature";
     (4) Measures proposed to the legislature and rejected or not acted upon will be under the heading, "Proposed to the Legislature and Referred to the People";
     (5) Measures proposed to the legislature and alternative measures passed by the legislature in lieu thereof will be under the heading, "Initiated by Petition and Alternative by Legislature."((;
     (6) Measures for an advisory vote of the people under RCW 29A.72.040 will be under the heading, "Advisory Vote of the People."))

Sec. 12   RCW 29A.32.031 and 2009 c 415 s 2 are each amended to read as follows:
     The voters' pamphlet published or distributed under RCW 29A.32.010 must contain:
     (1) Information about each ((measure for an advisory vote of the people and each)) ballot measure initiated by or referred to the voters for their approval or rejection as required by RCW 29A.32.070;
     (2) In even-numbered years, statements, if submitted, from candidates for the office of president and vice president of the United States, United States senator, United States representative, governor, lieutenant governor, secretary of state, state treasurer, state auditor, attorney general, commissioner of public lands, superintendent of public instruction, insurance commissioner, state senator, state representative, justice of the supreme court, judge of the court of appeals, or judge of the superior court. Candidates may also submit campaign contact information and a photograph not more than five years old in a format that the secretary of state determines to be suitable for reproduction in the voters' pamphlet;
     (3) In odd-numbered years, if any office voted upon statewide appears on the ballot due to a vacancy, then statements and photographs for candidates for any vacant office listed in subsection (2) of this section must appear;
     (4) Contact information for the public disclosure commission established under RCW 42.17.350;
     (5) Contact information for major political parties;
     (6) A brief statement explaining the deletion and addition of language for proposed measures under RCW 29A.32.080; and
     (7) Any additional information pertaining to elections as may be required by law or in the judgment of the secretary of state is deemed informative to the voters.

Sec. 13   RCW 29A.32.070 and 2009 c 415 s 5 are each amended to read as follows:
     The secretary of state shall determine the format and layout of the voters' pamphlet published under RCW 29A.32.010. The secretary of state shall print the pamphlet in clear, readable type on a size, quality, and weight of paper that in the judgment of the secretary of state best serves the voters. The pamphlet must contain a table of contents. Measures and arguments must be printed in the order specified by RCW 29A.72.290.
     The voters' pamphlet must provide the following information for each statewide issue on the ballot ((except measures for an advisory vote of the people whose requirements are provided in subsection (11) of this section)):
     (1) The legal identification of the measure by serial designation or number;
     (2) The official ballot title of the measure;
     (3) A statement prepared by the attorney general explaining the law as it presently exists;
     (4) A statement prepared by the attorney general explaining the effect of the proposed measure if it becomes law;
     (5) The fiscal impact statement prepared under RCW 29A.72.025;
     (6) The total number of votes cast for and against the measure in the senate and house of representatives, if the measure has been passed by the legislature;
     (7) An argument advocating the voters' approval of the measure together with any statement in rebuttal of the opposing argument;
     (8) An argument advocating the voters' rejection of the measure together with any statement in rebuttal of the opposing argument;
     (9) Each argument or rebuttal statement must be followed by the names of the committee members who submitted them, and may be followed by a telephone number that citizens may call to obtain information on the ballot measure;
     (10) The full text of *the measure((;
     (11) Two pages shall be provided in the general election voters' pamphlet for each measure for an advisory vote of the people under RCW 43.135.041 and shall consist of the serial number assigned by the secretary of state under RCW 29A.72.040, the short description formulated by the attorney general under RCW 29A.72.283, the tax increase's most up-to-date ten-year cost projection, including a year-by-year breakdown, by the office of financial management under RCW 43.135.031, and the names of the legislators, and their contact information, and how they voted on the increase upon final passage so they can provide information to, and answer questions from, the public. For the purposes of this subsection, "names of legislators, and their contact information" includes each legislator's position (senator or representative), first name, last name, party affiliation (for example, Democrat or Republican), city or town they live in, office phone number, and office e-mail address)).

Sec. 14   RCW 43.135.055 and 2008 c 1 s 14 (Initiative Measure No. 960, approved November 6, 2007) are each amended to read as follows:
     (1) No fee may ((be imposed or)) increase((d)) in any fiscal year by a percentage in excess of the fiscal growth factor for that fiscal year without prior legislative approval ((and must be subject to the accountability procedures required by RCW 43.135.031)).
     (2) This section does not apply to an assessment made by an agricultural commodity commission or board created by state statute or created under a marketing agreement or order under chapter 15.65 or 15.66 RCW, or to the forest products commission, if the assessment is approved by referendum in accordance with the provisions of the statutes creating the commission or board or chapter 15.65 or 15.66 RCW for approving such assessments.

NEW SECTION.  Sec. 15   The following acts or parts of acts are each repealed:
     (1) RCW 43.135.031 (Bills raising taxes or fees -- Cost analysis--Press release -- Notice of hearings -- Updated analyses) and 2008 c 1 s 2;
     (2) RCW 43.135.041 (Tax legislation -- Advisory vote -- Duties of the attorney general and secretary of state -- Exemption) and 2008 c 1 s 6;
     (3) RCW 29A.72.283 (Advisory vote on tax legislation -- Short description) and 2008 c 1 s 8; and
     (4) RCW 29A.72.285 (Advisory vote on tax legislation -- Short description filing and transmittal) and 2008 c 1 s 9.

NEW SECTION.  Sec. 16   Sections 2, 6, 8, and 9 of this act take effect July 1, 2011.

NEW SECTION.  Sec. 17   Sections 3, 4, 5, 7, 10, 11, 12, 13, and 14 of the act expire July 1, 2011.

NEW SECTION.  Sec. 18   This act does not affect any existing right acquired or liability or obligation incurred under the sections amended or repealed or under any rule or order adopted under those sections, nor does it affect any proceeding instituted under those sections.

NEW SECTION.  Sec. 19   This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.