BILL REQ. #: H-0303.1
State of Washington | 62nd Legislature | 2011 Regular Session |
Read first time 01/19/11. Referred to Committee on Health & Human Services Appropriations & Oversight.
AN ACT Relating to creating the safety net assessment to fund services for people with developmental disabilities; amending RCW 82.16.010, 82.16.020, 82.16.020, and 35.21.710; reenacting and amending RCW 82.16.010; adding a new section to chapter 82.16 RCW; creating a new section; providing an effective date; and providing an expiration date.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 82.16.010 and 2010 c 106 s 224 are each amended to
read as follows:
For the purposes of this chapter, unless otherwise required by the
context:
(1) "Community residential service business" means the business of
providing habilitation, instruction, and support to clients who have a
disability meeting the definition of a developmental disability as
defined in RCW 71A.10.020(3). "Community residential service business"
also means a business that is licensed and/or certified by the aging
and disabilities services administration at the department of social
and health services to provide the services described in this
subsection.
(2) "Express business" means the business of carrying property for
public hire on the line of any common carrier operated in this state,
when such common carrier is not owned or leased by the person engaging
in such business.
(((2))) (3) "Gas distribution business" means the business of
operating a plant or system for the production or distribution for hire
or sale of gas, whether manufactured or natural.
(((3))) (4) "Gross income" means the value proceeding or accruing
from the performance of the particular public service or transportation
business involved, including operations incidental thereto, but without
any deduction on account of the cost of the commodity furnished or
sold, the cost of materials used, labor costs, interest, discount,
delivery costs, taxes, or any other expense whatsoever paid or accrued
and without any deduction on account of losses.
(((4))) (5) "Light and power business" means the business of
operating a plant or system for the generation, production or
distribution of electrical energy for hire or sale and/or for the
wheeling of electricity for others.
(((5))) (6) "Log transportation business" means the business of
transporting logs by truck, except when such transportation meets the
definition of urban transportation business or occurs exclusively upon
private roads.
(((6))) (7) "Motor transportation business" means the business
(except urban transportation business) of operating any motor propelled
vehicle by which persons or property of others are conveyed for hire,
and includes, but is not limited to, the operation of any motor
propelled vehicle as an auto transportation company (except urban
transportation business), common carrier, or contract carrier as
defined by RCW 81.68.010 and 81.80.010. However, "motor transportation
business" does not mean or include: (a) A log transportation business;
or (b) the transportation of logs or other forest products exclusively
upon private roads or private highways.
(((7))) (8)(a) "Public service business" means any of the
businesses defined in subsections (1), (2), (((4), (6), (8), (9), (10),
(12), and (13))) (3), (5), (7), (9), (10), (11), (13), and (14) of this
section or any business subject to control by the state, or having the
powers of eminent domain and the duties incident thereto, or any
business hereafter declared by the legislature to be of a public
service nature, except telephone business and low-level radioactive
waste site operating companies as redefined in RCW 81.04.010. It
includes, among others, without limiting the scope hereof: Airplane
transportation, boom, dock, ferry, pipe line, toll bridge, toll logging
road, water transportation and wharf businesses.
(b) The definitions in this subsection (((7))) (8)(b) apply
throughout this subsection (((7))) (8).
(i) "Competitive telephone service" has the same meaning as in RCW
82.04.065.
(ii) "Network telephone service" means the providing by any person
of access to a telephone network, telephone network switching service,
toll service, or coin telephone services, or the providing of
telephonic, video, data, or similar communication or transmission for
hire, via a telephone network, toll line or channel, cable, microwave,
or similar communication or transmission system. "Network telephone
service" includes the provision of transmission to and from the site of
an internet provider via a telephone network, toll line or channel,
cable, microwave, or similar communication or transmission system.
"Network telephone service" does not include the providing of
competitive telephone service, the providing of cable television
service, the providing of broadcast services by radio or television
stations, nor the provision of internet access as defined in RCW
82.04.297, including the reception of dial-in connection, provided at
the site of the internet service provider.
(iii) "Telephone business" means the business of providing network
telephone service. It includes cooperative or farmer line telephone
companies or associations operating an exchange.
(iv) "Telephone service" means competitive telephone service or
network telephone service, or both, as defined in (b)(i) and (ii) of
this subsection.
(((8))) (9) "Railroad business" means the business of operating any
railroad, by whatever power operated, for public use in the conveyance
of persons or property for hire. It shall not, however, include any
business herein defined as an urban transportation business.
(((9))) (10) "Railroad car business" means the business of
operating stock cars, furniture cars, refrigerator cars, fruit cars,
poultry cars, tank cars, sleeping cars, parlor cars, buffet cars,
tourist cars, or any other kinds of cars used for transportation of
property or persons upon the line of any railroad operated in this
state when such railroad is not owned or leased by the person engaging
in such business.
(((10))) (11) "Telegraph business" means the business of affording
telegraphic communication for hire.
(((11))) (12) "Tugboat business" means the business of operating
tugboats, towboats, wharf boats or similar vessels in the towing or
pushing of vessels, barges or rafts for hire.
(((12))) (13) "Urban transportation business" means the business of
operating any vehicle for public use in the conveyance of persons or
property for hire, insofar as (a) operating entirely within the
corporate limits of any city or town, or within five miles of the
corporate limits thereof, or (b) operating entirely within and between
cities and towns whose corporate limits are not more than five miles
apart or within five miles of the corporate limits of either thereof.
Included herein, but without limiting the scope hereof, is the business
of operating passenger vehicles of every type and also the business of
operating cartage, pickup, or delivery services, including in such
services the collection and distribution of property arriving from or
destined to a point within or without the state, whether or not such
collection or distribution be made by the person performing a local or
interstate line-haul of such property.
(((13))) (14) "Water distribution business" means the business of
operating a plant or system for the distribution of water for hire or
sale.
(((14))) (15) The meaning attributed, in chapter 82.04 RCW, to the
term "tax year," "person," "value proceeding or accruing," "business,"
"engaging in business," "in this state," "within this state," "cash
discount" and "successor" applies equally in the provisions of this
chapter.
Sec. 2 RCW 82.16.010 and 2009 c 535 s 1110 are each reenacted and
amended to read as follows:
For the purposes of this chapter, unless otherwise required by the
context:
(1) "Community residential service business" means the business of
providing habilitation, instruction, and support to clients who have a
disability meeting the definition of a developmental disability as
defined in RCW 71A.10.020(3). "Community residential service business"
also means a business that is licensed and/or certified by the aging
and disabilities services administration at the department of social
and health services to provide the services described in this
subsection.
(2) "Express business" means the business of carrying property for
public hire on the line of any common carrier operated in this state,
when such common carrier is not owned or leased by the person engaging
in such business.
(((2))) (3) "Gas distribution business" means the business of
operating a plant or system for the production or distribution for hire
or sale of gas, whether manufactured or natural.
(((3))) (4) "Gross income" means the value proceeding or accruing
from the performance of the particular public service or transportation
business involved, including operations incidental thereto, but without
any deduction on account of the cost of the commodity furnished or
sold, the cost of materials used, labor costs, interest, discount,
delivery costs, taxes, or any other expense whatsoever paid or accrued
and without any deduction on account of losses.
(((4))) (5) "Light and power business" means the business of
operating a plant or system for the generation, production or
distribution of electrical energy for hire or sale and/or for the
wheeling of electricity for others.
(((5))) (6) "Motor transportation business" means the business
(except urban transportation business) of operating any motor propelled
vehicle by which persons or property of others are conveyed for hire,
and includes, but is not limited to, the operation of any motor
propelled vehicle as an auto transportation company (except urban
transportation business), common carrier, or contract carrier as
defined by RCW 81.68.010 and 81.80.010. However, "motor transportation
business" does not mean or include the transportation of logs or other
forest products exclusively upon private roads or private highways.
(((6))) (7)(a) "Public service business" means any of the
businesses defined in subsections (((1), (2), (4), (5), (7), (8), (9),
(11), and (12))) (2), (3), (5), (6), (8), (9), (10), (12), and (13) of
this section or any business subject to control by the state, or having
the powers of eminent domain and the duties incident thereto, or any
business hereafter declared by the legislature to be of a public
service nature, except telephone business and low-level radioactive
waste site operating companies as redefined in RCW 81.04.010. It
includes, among others, without limiting the scope hereof: Airplane
transportation, boom, dock, ferry, pipe line, toll bridge, toll logging
road, water transportation and wharf businesses.
(b) The definitions in this subsection (((6))) (7)(b) apply
throughout this subsection (((6))) (7).
(i) "Competitive telephone service" has the same meaning as in RCW
82.04.065.
(ii) "Network telephone service" means the providing by any person
of access to a telephone network, telephone network switching service,
toll service, or coin telephone services, or the providing of
telephonic, video, data, or similar communication or transmission for
hire, via a telephone network, toll line or channel, cable, microwave,
or similar communication or transmission system. "Network telephone
service" includes the provision of transmission to and from the site of
an internet provider via a telephone network, toll line or channel,
cable, microwave, or similar communication or transmission system.
"Network telephone service" does not include the providing of
competitive telephone service, the providing of cable television
service, the providing of broadcast services by radio or television
stations, nor the provision of internet access as defined in RCW
82.04.297, including the reception of dial-in connection, provided at
the site of the internet service provider.
(iii) "Telephone business" means the business of providing network
telephone service. It includes cooperative or farmer line telephone
companies or associations operating an exchange.
(iv) "Telephone service" means competitive telephone service or
network telephone service, or both, as defined in (b)(i) and (ii) of
this subsection.
(((7))) (8) "Railroad business" means the business of operating any
railroad, by whatever power operated, for public use in the conveyance
of persons or property for hire. It ((shall)) may not, however,
include any business herein defined as an urban transportation
business.
(((8))) (9) "Railroad car business" means the business of operating
stock cars, furniture cars, refrigerator cars, fruit cars, poultry
cars, tank cars, sleeping cars, parlor cars, buffet cars, tourist cars,
or any other kinds of cars used for transportation of property or
persons upon the line of any railroad operated in this state when such
railroad is not owned or leased by the person engaging in such
business.
(((9))) (10) "Telegraph business" means the business of affording
telegraphic communication for hire.
(((10))) (11) "Tugboat business" means the business of operating
tugboats, towboats, wharf boats or similar vessels in the towing or
pushing of vessels, barges or rafts for hire.
(((11))) (12) "Urban transportation business" means the business of
operating any vehicle for public use in the conveyance of persons or
property for hire, insofar as (a) operating entirely within the
corporate limits of any city or town, or within five miles of the
corporate limits thereof, or (b) operating entirely within and between
cities and towns whose corporate limits are not more than five miles
apart or within five miles of the corporate limits of either thereof.
Included herein, but without limiting the scope hereof, is the business
of operating passenger vehicles of every type and also the business of
operating cartage, pickup, or delivery services, including in such
services the collection and distribution of property arriving from or
destined to a point within or without the state, whether or not such
collection or distribution be made by the person performing a local or
interstate line-haul of such property.
(((12))) (13) "Water distribution business" means the business of
operating a plant or system for the distribution of water for hire or
sale.
(((13))) (14) The meaning attributed, in chapter 82.04 RCW, to the
term "tax year," "person," "value proceeding or accruing," "business,"
"engaging in business," "in this state," "within this state," "cash
discount" and "successor" shall apply equally in the provisions of this
chapter.
Sec. 3 RCW 82.16.020 and 2009 c 469 s 702 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)) is 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;
(h) Log transportation business: One and twenty-eight one-hundredths percent;
(i) Community residential service 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)) must be deposited in the public works
assistance account created in RCW 43.155.050.
(4) 80.5 percent of the moneys collected under subsection (1)(i) of
this section must be deposited in the community residential investment
account.
(5) If at any time the centers for medicare and medicaid services
make a determination that any federal matching funds appropriated in
conjunction with appropriations from the community residential
investment account and the home and community based investment account
cannot be validly appropriated, the tax under subsection (1)(i) of this
section must cease to be imposed.
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)) is 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;
(h) Community residential service 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)) must be deposited in the public works
assistance account created in RCW 43.155.050.
(4) 80.5 percent of the moneys collected under subsection (1)(h) of
this section must be deposited in the community residential investment
account.
(5) If at any time the centers for medicare and medicaid services
make a determination that any federal matching funds appropriated in
conjunction with appropriations from the community residential
investment account and the home and community based investment account
cannot be validly appropriated, the tax under subsection (1)(h) of this
section must cease to be imposed.
NEW SECTION. Sec. 5 A new section is added to chapter 82.16 RCW
to read as follows:
(1) The community residential investment account is created in the
state treasury. Moneys in the account may be spent only after
appropriation. Expenditures from the account may only be used for the
following purposes:
(a) To increase rates paid to community residential service
businesses from the rates provided in section 205(1), chapter 564, Laws
of 2009; or
(b) To enhance the rates paid to increase compensation to staff
providing habilitative instruction and support services, and homogenize
administrative and indirect client support rates.
(2) The home and community based services investment account is
created in the state treasury. Moneys in the account may be spent only
after appropriation. Expenditures from the account may only be used
for home and community based services provided by the aging and
disabilities services administration at the department of social and
health services.
(3) Whenever vendor rates for supported living providers are
established, or otherwise affected by legislative action, the funding
for the vendor rates must be allocated such that the difference in
vendor rates of King and Snohomish counties remains the same as
established in 2010.
Sec. 6 RCW 35.21.710 and 2002 c 179 s 1 are each amended to read
as follows:
Any city which imposes a license fee or tax upon business
activities consisting of the making of retail sales of tangible
personal property which are measured by gross receipts or gross income
from such sales, ((shall)) must impose such tax at a single uniform
rate upon all such business activities. The taxing authority granted
to cities for taxes upon business activities measured by gross receipts
or gross income from sales ((shall)) may not exceed a rate of .0020;
except that any city with an adopted ordinance at a higher rate, as of
January 1, 1982 ((shall)) must be limited to a maximum increase of ten
percent of the January 1982 rate, not to exceed an annual incremental
increase of two percent of current rate((: PROVIDED, That)). However:
Any adopted ordinance which classifies according to different types of
business or services ((shall be)) is subject to both the ten percent
and the two percent annual incremental increase limitation on each tax
rate((: PROVIDED FURTHER, That)); and all surtaxes on business and
occupation classifications in effect as of January 1, 1982, ((shall))
must expire no later than December 31, 1982, or by expiration date
established by local ordinance. Cities which impose a license fee or
tax upon business activities consisting of the making of retail sales
of tangible personal property which are measured by gross receipts or
gross income from such sales ((shall)) must be required to submit an
annual report to the state auditor identifying the rate established and
the revenues received from each fee or tax. This section ((shall))
does not apply to any business activities subject to the tax imposed by
chapter 82.16 RCW, except community residential service businesses.
For purposes of this section, the providing to consumers of competitive
telephone service, as defined in RCW 82.04.065, or the providing of
payphone service, ((shall be)) is subject to tax at the same rate as
business activities consisting of the making of retail sales of
tangible personal property. As used in this section, "payphone
service" means making telephone service available to the public on a
fee-per-call basis, independent of any other commercial transaction,
for the purpose of making telephone calls, when the telephone can only
be activated by inserting coins, calling collect, using a calling card
or credit card, or dialing a toll-free number, and the provider of the
service owns or leases the telephone equipment but does not own the
telephone line providing the service to that equipment and has no
affiliation with the owner of the telephone line.
NEW SECTION. Sec. 7 By June 30, 2016, the joint legislative
audit and review committee in consultation with the department of
social and health services and the department of revenue, must conduct
a review of the taxes imposed by this act on community residential
services businesses. In this review, the committee must consult with
a broad range of interested stakeholders. The review must consider
issues including benefits of the tax, compliance with the tax, any
determinations by the centers for medicaid and medicare services
regarding the tax, administrative costs, other administrative issues
and other issues deemed appropriate. The committee must report to the
legislature on its findings and any recommendations related to the
taxes imposed in this act and related services funded by these taxes by
December 1, 2016.
NEW SECTION. Sec. 8 Sections 2 and 4 of this act take effect
June 30, 2013.
NEW SECTION. Sec. 9 Sections 1 and 3 of this act expire June 30,
2013.