BILL REQ. #: H-2629.4
| State of Washington | 63rd Legislature | 2013 1st Special Session |
READ FIRST TIME 06/06/13.
AN ACT Relating to funding K-12 basic education and higher education by narrowing or eliminating tax preferences; amending RCW 82.04.260, 82.08.0293, 82.12.0293, 82.08.0273, 82.04.4452, 82.63.030, 82.12.0263, 28A.150.220, 28A.150.260, 28A.150.390, 28A.180.030, 28A.180.040, and 28A.230.090; amending 2013 1st sp.s. c ... (House Bill 1057) ss 502, 507, 509, 511, 514, and 515 (uncodified); reenacting and amending RCW 82.04.260; adding new sections to chapter 82.08 RCW; adding new sections to chapter 82.12 RCW; adding new sections to 2013 1st sp.s. c ... (House Bill 1057) (uncodified); adding a new section to chapter 82.32 RCW; adding a new section to chapter 43.135 RCW; adding a new section to chapter 39.42 RCW; creating a new section; repealing RCW 82.04.272; prescribing penalties; providing effective dates; providing an expiration date; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 101 RCW 82.04.260 and 2012 2nd sp.s. c 6 s 602 and 2012 2nd
sp.s. c 6 s 204 are each reenacted and amended to read as follows:
(1) Upon every person engaging within this state in the business of
manufacturing:
(a) Wheat into flour, barley into pearl barley, soybeans into
soybean oil, canola into canola oil, canola meal, or canola by-products, or sunflower seeds into sunflower oil; as to such persons the
amount of tax with respect to such business is equal to the value of
the flour, pearl barley, oil, canola meal, or canola by-product
manufactured, multiplied by the rate of 0.138 percent;
(b) Beginning July 1, 2015, seafood products that remain in a raw,
raw frozen, or raw salted state at the completion of the manufacturing
by that person; or selling manufactured seafood products that remain in
a raw, raw frozen, or raw salted state at the completion of the
manufacturing, to purchasers who transport in the ordinary course of
business the goods out of this state; as to such persons the amount of
tax with respect to such business is equal to the value of the products
manufactured or the gross proceeds derived from such sales, multiplied
by the rate of 0.138 percent. Sellers must keep and preserve records
for the period required by RCW 82.32.070 establishing that the goods
were transported by the purchaser in the ordinary course of business
out of this state;
(c) Beginning July 1, 2015, dairy products that as of September 20,
2001, are identified in 21 C.F.R., chapter 1, parts 131, 133, and 135,
including by-products from the manufacturing of the dairy products such
as whey and casein; or selling the same to purchasers who transport in
the ordinary course of business the goods out of state; as to such
persons the tax imposed is equal to the value of the products
manufactured or the gross proceeds derived from such sales multiplied
by the rate of 0.138 percent. Sellers must keep and preserve records
for the period required by RCW 82.32.070 establishing that the goods
were transported by the purchaser in the ordinary course of business
out of this state;
(d) Beginning July 1, 2015, fruits or vegetables by canning,
preserving, freezing, processing, or dehydrating fresh fruits or
vegetables, or selling at wholesale fruits or vegetables manufactured
by the seller by canning, preserving, freezing, processing, or
dehydrating fresh fruits or vegetables and sold to purchasers who
transport in the ordinary course of business the goods out of this
state; as to such persons the amount of tax with respect to such
business is equal to the value of the products manufactured or the
gross proceeds derived from such sales multiplied by the rate of 0.138
percent. Sellers must keep and preserve records for the period
required by RCW 82.32.070 establishing that the goods were transported
by the purchaser in the ordinary course of business out of this state;
(e) Until July 1, 2009, alcohol fuel, biodiesel fuel, or biodiesel
feedstock, as those terms are defined in RCW 82.29A.135; as to such
persons the amount of tax with respect to the business is equal to the
value of alcohol fuel, biodiesel fuel, or biodiesel feedstock
manufactured, multiplied by the rate of 0.138 percent; and
(f) Wood biomass fuel as defined in RCW 82.29A.135; as to such
persons the amount of tax with respect to the business is equal to the
value of wood biomass fuel manufactured, multiplied by the rate of
0.138 percent.
(2) Upon every person engaging within this state in the business of
splitting or processing dried peas; as to such persons the amount of
tax with respect to such business is equal to the value of the peas
split or processed, multiplied by the rate of 0.138 percent.
(3) Upon every nonprofit corporation and nonprofit association
engaging within this state in research and development, as to such
corporations and associations, the amount of tax with respect to such
activities is equal to the gross income derived from such activities
multiplied by the rate of 0.484 percent.
(4) Upon every person engaging within this state in the business of
slaughtering, breaking and/or processing perishable meat products
and/or selling the same at wholesale only and not at retail; as to such
persons the tax imposed is equal to the gross proceeds derived from
such sales multiplied by the rate of 0.138 percent.
(5) ((Upon every person engaging within this state in the business
of acting as a travel agent or tour operator; as to such persons the
amount of the tax with respect to such activities is equal to the gross
income derived from such activities multiplied by the rate of 0.275
percent.)) Upon every person engaging within this state in business as
an international steamship agent, international customs house broker,
international freight forwarder, vessel and/or cargo charter broker in
foreign commerce, and/or international air cargo agent; as to such
persons the amount of the tax with respect to only international
activities is equal to the gross income derived from such activities
multiplied by the rate of 0.275 percent.
(6)
(((7))) (6) Upon every person engaging within this state in the
business of stevedoring and associated activities pertinent to the
movement of goods and commodities in waterborne interstate or foreign
commerce; as to such persons the amount of tax with respect to such
business is equal to the gross proceeds derived from such activities
multiplied by the rate of 0.275 percent. Persons subject to taxation
under this subsection are exempt from payment of taxes imposed by
chapter 82.16 RCW for that portion of their business subject to
taxation under this subsection. Stevedoring and associated activities
pertinent to the conduct of goods and commodities in waterborne
interstate or foreign commerce are defined as all activities of a
labor, service or transportation nature whereby cargo may be loaded or
unloaded to or from vessels or barges, passing over, onto or under a
wharf, pier, or similar structure; cargo may be moved to a warehouse or
similar holding or storage yard or area to await further movement in
import or export or may move to a consolidation freight station and be
stuffed, unstuffed, containerized, separated or otherwise segregated or
aggregated for delivery or loaded on any mode of transportation for
delivery to its consignee. Specific activities included in this
definition are: Wharfage, handling, loading, unloading, moving of
cargo to a convenient place of delivery to the consignee or a
convenient place for further movement to export mode; documentation
services in connection with the receipt, delivery, checking, care,
custody and control of cargo required in the transfer of cargo;
imported automobile handling prior to delivery to consignee; terminal
stevedoring and incidental vessel services, including but not limited
to plugging and unplugging refrigerator service to containers,
trailers, and other refrigerated cargo receptacles, and securing ship
hatch covers.
(((8))) (7)(a) Upon every person engaging within this state in the
business of disposing of low-level waste, as defined in RCW 43.145.010;
as to such persons the amount of the tax with respect to such business
is equal to the gross income of the business, excluding any fees
imposed under chapter 43.200 RCW, multiplied by the rate of 3.3
percent.
(b) If the gross income of the taxpayer is attributable to
activities both within and without this state, the gross income
attributable to this state must be determined in accordance with the
methods of apportionment required under RCW 82.04.460.
(((9))) (8) Upon every person engaging within this state as an
insurance producer or title insurance agent licensed under chapter
48.17 RCW or a surplus line broker licensed under chapter 48.15 RCW; as
to such persons, the amount of the tax with respect to such licensed
activities is equal to the gross income of such business multiplied by
the rate of 0.484 percent.
(((10))) (9) Upon every person engaging within this state in
business as a hospital, as defined in chapter 70.41 RCW, that is
operated as a nonprofit corporation or by the state or any of its
political subdivisions, as to such persons, the amount of tax with
respect to such activities is equal to the gross income of the business
multiplied by the rate of 0.75 percent through June 30, 1995, and 1.5
percent thereafter.
(((11))) (10)(a) Beginning October 1, 2005, upon every person
engaging within this state in the business of manufacturing commercial
airplanes, or components of such airplanes, or making sales, at retail
or wholesale, of commercial airplanes or components of such airplanes,
manufactured by the seller, as to such persons the amount of tax with
respect to such business is, in the case of manufacturers, equal to the
value of the product manufactured and the gross proceeds of sales of
the product manufactured, or in the case of processors for hire, equal
to the gross income of the business, multiplied by the rate of:
(i) 0.4235 percent from October 1, 2005, through June 30, 2007; and
(ii) 0.2904 percent beginning July 1, 2007.
(b) Beginning July 1, 2008, upon every person who is not eligible
to report under the provisions of (a) of this subsection (((11))) (10)
and is engaging within this state in the business of manufacturing
tooling specifically designed for use in manufacturing commercial
airplanes or components of such airplanes, or making sales, at retail
or wholesale, of such tooling manufactured by the seller, as to such
persons the amount of tax with respect to such business is, in the case
of manufacturers, equal to the value of the product manufactured and
the gross proceeds of sales of the product manufactured, or in the case
of processors for hire, be equal to the gross income of the business,
multiplied by the rate of 0.2904 percent.
(c) For the purposes of this subsection (((11))) (10), "commercial
airplane" and "component" have the same meanings as provided in RCW
82.32.550.
(d) In addition to all other requirements under this title, a
person reporting under the tax rate provided in this subsection
(((11))) (10) must file a complete annual report with the department
under RCW 82.32.534.
(e) This subsection (((11))) (10) does not apply on and after July
1, 2024.
(((12))) (11)(a) Until July 1, 2024, upon every person engaging
within this state in the business of extracting timber or extracting
for hire timber; as to such persons the amount of tax with respect to
the business is, in the case of extractors, equal to the value of
products, including by-products, extracted, or in the case of
extractors for hire, equal to the gross income of the business,
multiplied by the rate of 0.4235 percent from July 1, 2006, through
June 30, 2007, and 0.2904 percent from July 1, 2007, through June 30,
2024.
(b) Until July 1, 2024, upon every person engaging within this
state in the business of manufacturing or processing for hire: (i)
Timber into timber products or wood products; or (ii) timber products
into other timber products or wood products; as to such persons the
amount of the tax with respect to the business is, in the case of
manufacturers, equal to the value of products, including by-products,
manufactured, or in the case of processors for hire, equal to the gross
income of the business, multiplied by the rate of 0.4235 percent from
July 1, 2006, through June 30, 2007, and 0.2904 percent from July 1,
2007, through June 30, 2024.
(c) Until July 1, 2024, upon every person engaging within this
state in the business of selling at wholesale: (i) Timber extracted by
that person; (ii) timber products manufactured by that person from
timber or other timber products; or (iii) wood products manufactured by
that person from timber or timber products; as to such persons the
amount of the tax with respect to the business is equal to the gross
proceeds of sales of the timber, timber products, or wood products
multiplied by the rate of 0.4235 percent from July 1, 2006, through
June 30, 2007, and 0.2904 percent from July 1, 2007, through June 30,
2024.
(d) Until July 1, 2024, upon every person engaging within this
state in the business of selling standing timber; as to such persons
the amount of the tax with respect to the business is equal to the
gross income of the business multiplied by the rate of 0.2904 percent.
For purposes of this subsection (((12))) (11)(d), "selling standing
timber" means the sale of timber apart from the land, where the buyer
is required to sever the timber within thirty months from the date of
the original contract, regardless of the method of payment for the
timber and whether title to the timber transfers before, upon, or after
severance.
(e) For purposes of this subsection, the following definitions
apply:
(i) "Biocomposite surface products" means surface material products
containing, by weight or volume, more than fifty percent recycled paper
and that also use nonpetroleum-based phenolic resin as a bonding agent.
(ii) "Paper and paper products" means products made of interwoven
cellulosic fibers held together largely by hydrogen bonding. "Paper
and paper products" includes newsprint; office, printing, fine, and
pressure-sensitive papers; paper napkins, towels, and toilet tissue;
kraft bag, construction, and other kraft industrial papers; paperboard,
liquid packaging containers, containerboard, corrugated, and solid-fiber containers including linerboard and corrugated medium; and
related types of cellulosic products containing primarily, by weight or
volume, cellulosic materials. "Paper and paper products" does not
include books, newspapers, magazines, periodicals, and other printed
publications, advertising materials, calendars, and similar types of
printed materials.
(iii) "Recycled paper" means paper and paper products having fifty
percent or more of their fiber content that comes from postconsumer
waste. For purposes of this subsection (((12))) (11)(e)(iii),
"postconsumer waste" means a finished material that would normally be
disposed of as solid waste, having completed its life cycle as a
consumer item.
(iv) "Timber" means forest trees, standing or down, on privately or
publicly owned land. "Timber" does not include Christmas trees that
are cultivated by agricultural methods or short-rotation hardwoods as
defined in RCW 84.33.035.
(v) "Timber products" means:
(A) Logs, wood chips, sawdust, wood waste, and similar products
obtained wholly from the processing of timber, short-rotation hardwoods
as defined in RCW 84.33.035, or both;
(B) Pulp, including market pulp and pulp derived from recovered
paper or paper products; and
(C) Recycled paper, but only when used in the manufacture of
biocomposite surface products.
(vi) "Wood products" means paper and paper products; dimensional
lumber; engineered wood products such as particleboard, oriented strand
board, medium density fiberboard, and plywood; wood doors; wood
windows; and biocomposite surface products.
(f) Except for small harvesters as defined in RCW 84.33.035, a
person reporting under the tax rate provided in this subsection
(((12))) (11) must file a complete annual survey with the department
under RCW 82.32.585.
(((13))) (12) Upon every person engaging within this state in
inspecting, testing, labeling, and storing canned salmon owned by
another person, as to such persons, the amount of tax with respect to
such activities is equal to the gross income derived from such
activities multiplied by the rate of 0.484 percent.
(((14))) (13)(a) Upon every person engaging within this state in
the business of printing a newspaper, publishing a newspaper, or both,
the amount of tax on such business is equal to the gross income of the
business multiplied by the rate of 0.365 percent through June 30, 2013,
and beginning July 1, 2013, multiplied by the rate of 0.35 percent.
(b) A person reporting under the tax rate provided in this
subsection (((14))) (13) must file a complete annual report with the
department under RCW 82.32.534.
Sec. 102 RCW 82.04.260 and 2012 2nd sp.s. c 6 s 204 are each
amended to read as follows:
(1) Upon every person engaging within this state in the business of
manufacturing:
(a) Wheat into flour, barley into pearl barley, soybeans into
soybean oil, canola into canola oil, canola meal, or canola by-products, or sunflower seeds into sunflower oil; as to such persons the
amount of tax with respect to such business is equal to the value of
the flour, pearl barley, oil, canola meal, or canola by-product
manufactured, multiplied by the rate of 0.138 percent;
(b) Beginning July 1, 2015, seafood products that remain in a raw,
raw frozen, or raw salted state at the completion of the manufacturing
by that person; or selling manufactured seafood products that remain in
a raw, raw frozen, or raw salted state at the completion of the
manufacturing, to purchasers who transport in the ordinary course of
business the goods out of this state; as to such persons the amount of
tax with respect to such business is equal to the value of the products
manufactured or the gross proceeds derived from such sales, multiplied
by the rate of 0.138 percent. Sellers must keep and preserve records
for the period required by RCW 82.32.070 establishing that the goods
were transported by the purchaser in the ordinary course of business
out of this state;
(c) Beginning July 1, 2015, dairy products that as of September 20,
2001, are identified in 21 C.F.R., chapter 1, parts 131, 133, and 135,
including by-products from the manufacturing of the dairy products such
as whey and casein; or selling the same to purchasers who transport in
the ordinary course of business the goods out of state; as to such
persons the tax imposed is equal to the value of the products
manufactured or the gross proceeds derived from such sales multiplied
by the rate of 0.138 percent. Sellers must keep and preserve records
for the period required by RCW 82.32.070 establishing that the goods
were transported by the purchaser in the ordinary course of business
out of this state;
(d) Beginning July 1, 2015, fruits or vegetables by canning,
preserving, freezing, processing, or dehydrating fresh fruits or
vegetables, or selling at wholesale fruits or vegetables manufactured
by the seller by canning, preserving, freezing, processing, or
dehydrating fresh fruits or vegetables and sold to purchasers who
transport in the ordinary course of business the goods out of this
state; as to such persons the amount of tax with respect to such
business is equal to the value of the products manufactured or the
gross proceeds derived from such sales multiplied by the rate of 0.138
percent. Sellers must keep and preserve records for the period
required by RCW 82.32.070 establishing that the goods were transported
by the purchaser in the ordinary course of business out of this state;
(e) Until July 1, 2009, alcohol fuel, biodiesel fuel, or biodiesel
feedstock, as those terms are defined in RCW 82.29A.135; as to such
persons the amount of tax with respect to the business is equal to the
value of alcohol fuel, biodiesel fuel, or biodiesel feedstock
manufactured, multiplied by the rate of 0.138 percent; and
(f) Wood biomass fuel as defined in RCW 82.29A.135; as to such
persons the amount of tax with respect to the business is equal to the
value of wood biomass fuel manufactured, multiplied by the rate of
0.138 percent.
(2) Upon every person engaging within this state in the business of
splitting or processing dried peas; as to such persons the amount of
tax with respect to such business is equal to the value of the peas
split or processed, multiplied by the rate of 0.138 percent.
(3) Upon every nonprofit corporation and nonprofit association
engaging within this state in research and development, as to such
corporations and associations, the amount of tax with respect to such
activities is equal to the gross income derived from such activities
multiplied by the rate of 0.484 percent.
(4) Upon every person engaging within this state in the business of
slaughtering, breaking and/or processing perishable meat products
and/or selling the same at wholesale only and not at retail; as to such
persons the tax imposed is equal to the gross proceeds derived from
such sales multiplied by the rate of 0.138 percent.
(5) ((Upon every person engaging within this state in the business
of acting as a travel agent or tour operator; as to such persons the
amount of the tax with respect to such activities is equal to the gross
income derived from such activities multiplied by the rate of 0.275
percent.)) Upon every person engaging within this state in business as
an international steamship agent, international customs house broker,
international freight forwarder, vessel and/or cargo charter broker in
foreign commerce, and/or international air cargo agent; as to such
persons the amount of the tax with respect to only international
activities is equal to the gross income derived from such activities
multiplied by the rate of 0.275 percent.
(6)
(((7))) (6) Upon every person engaging within this state in the
business of stevedoring and associated activities pertinent to the
movement of goods and commodities in waterborne interstate or foreign
commerce; as to such persons the amount of tax with respect to such
business is equal to the gross proceeds derived from such activities
multiplied by the rate of 0.275 percent. Persons subject to taxation
under this subsection are exempt from payment of taxes imposed by
chapter 82.16 RCW for that portion of their business subject to
taxation under this subsection. Stevedoring and associated activities
pertinent to the conduct of goods and commodities in waterborne
interstate or foreign commerce are defined as all activities of a
labor, service or transportation nature whereby cargo may be loaded or
unloaded to or from vessels or barges, passing over, onto or under a
wharf, pier, or similar structure; cargo may be moved to a warehouse or
similar holding or storage yard or area to await further movement in
import or export or may move to a consolidation freight station and be
stuffed, unstuffed, containerized, separated or otherwise segregated or
aggregated for delivery or loaded on any mode of transportation for
delivery to its consignee. Specific activities included in this
definition are: Wharfage, handling, loading, unloading, moving of
cargo to a convenient place of delivery to the consignee or a
convenient place for further movement to export mode; documentation
services in connection with the receipt, delivery, checking, care,
custody and control of cargo required in the transfer of cargo;
imported automobile handling prior to delivery to consignee; terminal
stevedoring and incidental vessel services, including but not limited
to plugging and unplugging refrigerator service to containers,
trailers, and other refrigerated cargo receptacles, and securing ship
hatch covers.
(((8))) (7)(a) Upon every person engaging within this state in the
business of disposing of low-level waste, as defined in RCW 43.145.010;
as to such persons the amount of the tax with respect to such business
is equal to the gross income of the business, excluding any fees
imposed under chapter 43.200 RCW, multiplied by the rate of 3.3
percent.
(b) If the gross income of the taxpayer is attributable to
activities both within and without this state, the gross income
attributable to this state must be determined in accordance with the
methods of apportionment required under RCW 82.04.460.
(((9))) (8) Upon every person engaging within this state as an
insurance producer or title insurance agent licensed under chapter
48.17 RCW or a surplus line broker licensed under chapter 48.15 RCW; as
to such persons, the amount of the tax with respect to such licensed
activities is equal to the gross income of such business multiplied by
the rate of 0.484 percent.
(((10))) (9) Upon every person engaging within this state in
business as a hospital, as defined in chapter 70.41 RCW, that is
operated as a nonprofit corporation or by the state or any of its
political subdivisions, as to such persons, the amount of tax with
respect to such activities is equal to the gross income of the business
multiplied by the rate of 0.75 percent through June 30, 1995, and 1.5
percent thereafter.
(((11))) (10)(a) Beginning October 1, 2005, upon every person
engaging within this state in the business of manufacturing commercial
airplanes, or components of such airplanes, or making sales, at retail
or wholesale, of commercial airplanes or components of such airplanes,
manufactured by the seller, as to such persons the amount of tax with
respect to such business is, in the case of manufacturers, equal to the
value of the product manufactured and the gross proceeds of sales of
the product manufactured, or in the case of processors for hire, equal
to the gross income of the business, multiplied by the rate of:
(i) 0.4235 percent from October 1, 2005, through June 30, 2007; and
(ii) 0.2904 percent beginning July 1, 2007.
(b) Beginning July 1, 2008, upon every person who is not eligible
to report under the provisions of (a) of this subsection (((11))) (10)
and is engaging within this state in the business of manufacturing
tooling specifically designed for use in manufacturing commercial
airplanes or components of such airplanes, or making sales, at retail
or wholesale, of such tooling manufactured by the seller, as to such
persons the amount of tax with respect to such business is, in the case
of manufacturers, equal to the value of the product manufactured and
the gross proceeds of sales of the product manufactured, or in the case
of processors for hire, be equal to the gross income of the business,
multiplied by the rate of 0.2904 percent.
(c) For the purposes of this subsection (((11))) (10), "commercial
airplane" and "component" have the same meanings as provided in RCW
82.32.550.
(d) In addition to all other requirements under this title, a
person reporting under the tax rate provided in this subsection
(((11))) (10) must file a complete annual report with the department
under RCW 82.32.534.
(e) This subsection (((11))) (10) does not apply on and after July
1, 2024.
(((12))) (11)(a) Until July 1, 2024, upon every person engaging
within this state in the business of extracting timber or extracting
for hire timber; as to such persons the amount of tax with respect to
the business is, in the case of extractors, equal to the value of
products, including by-products, extracted, or in the case of
extractors for hire, equal to the gross income of the business,
multiplied by the rate of 0.4235 percent from July 1, 2006, through
June 30, 2007, and 0.2904 percent from July 1, 2007, through June 30,
2024.
(b) Until July 1, 2024, upon every person engaging within this
state in the business of manufacturing or processing for hire: (i)
Timber into timber products or wood products; or (ii) timber products
into other timber products or wood products; as to such persons the
amount of the tax with respect to the business is, in the case of
manufacturers, equal to the value of products, including by-products,
manufactured, or in the case of processors for hire, equal to the gross
income of the business, multiplied by the rate of 0.4235 percent from
July 1, 2006, through June 30, 2007, and 0.2904 percent from July 1,
2007, through June 30, 2024.
(c) Until July 1, 2024, upon every person engaging within this
state in the business of selling at wholesale: (i) Timber extracted by
that person; (ii) timber products manufactured by that person from
timber or other timber products; or (iii) wood products manufactured by
that person from timber or timber products; as to such persons the
amount of the tax with respect to the business is equal to the gross
proceeds of sales of the timber, timber products, or wood products
multiplied by the rate of 0.4235 percent from July 1, 2006, through
June 30, 2007, and 0.2904 percent from July 1, 2007, through June 30,
2024.
(d) Until July 1, 2024, upon every person engaging within this
state in the business of selling standing timber; as to such persons
the amount of the tax with respect to the business is equal to the
gross income of the business multiplied by the rate of 0.2904 percent.
For purposes of this subsection (((12))) (11)(d), "selling standing
timber" means the sale of timber apart from the land, where the buyer
is required to sever the timber within thirty months from the date of
the original contract, regardless of the method of payment for the
timber and whether title to the timber transfers before, upon, or after
severance.
(e) For purposes of this subsection, the following definitions
apply:
(i) "Biocomposite surface products" means surface material products
containing, by weight or volume, more than fifty percent recycled paper
and that also use nonpetroleum-based phenolic resin as a bonding agent.
(ii) "Paper and paper products" means products made of interwoven
cellulosic fibers held together largely by hydrogen bonding. "Paper
and paper products" includes newsprint; office, printing, fine, and
pressure-sensitive papers; paper napkins, towels, and toilet tissue;
kraft bag, construction, and other kraft industrial papers; paperboard,
liquid packaging containers, containerboard, corrugated, and solid-fiber containers including linerboard and corrugated medium; and
related types of cellulosic products containing primarily, by weight or
volume, cellulosic materials. "Paper and paper products" does not
include books, newspapers, magazines, periodicals, and other printed
publications, advertising materials, calendars, and similar types of
printed materials.
(iii) "Recycled paper" means paper and paper products having fifty
percent or more of their fiber content that comes from postconsumer
waste. For purposes of this subsection (((12))) (11)(e)(iii),
"postconsumer waste" means a finished material that would normally be
disposed of as solid waste, having completed its life cycle as a
consumer item.
(iv) "Timber" means forest trees, standing or down, on privately or
publicly owned land. "Timber" does not include Christmas trees that
are cultivated by agricultural methods or short-rotation hardwoods as
defined in RCW 84.33.035.
(v) "Timber products" means:
(A) Logs, wood chips, sawdust, wood waste, and similar products
obtained wholly from the processing of timber, short-rotation hardwoods
as defined in RCW 84.33.035, or both;
(B) Pulp, including market pulp and pulp derived from recovered
paper or paper products; and
(C) Recycled paper, but only when used in the manufacture of
biocomposite surface products.
(vi) "Wood products" means paper and paper products; dimensional
lumber; engineered wood products such as particleboard, oriented strand
board, medium density fiberboard, and plywood; wood doors; wood
windows; and biocomposite surface products.
(f) Except for small harvesters as defined in RCW 84.33.035, a
person reporting under the tax rate provided in this subsection
(((12))) (11) must file a complete annual survey with the department
under RCW 82.32.585.
(((13))) (12) Upon every person engaging within this state in
inspecting, testing, labeling, and storing canned salmon owned by
another person, as to such persons, the amount of tax with respect to
such activities is equal to the gross income derived from such
activities multiplied by the rate of 0.484 percent.
(((14))) (13)(a) Upon every person engaging within this state in
the business of printing a newspaper, publishing a newspaper, or both,
the amount of tax on such business is equal to the gross income of the
business multiplied by the rate of 0.2904 percent.
(b) A person reporting under the tax rate provided in this
subsection (((14))) (13) must file a complete annual report with the
department under RCW 82.32.534.
Sec. 103 RCW 82.08.0293 and 2011 c 2 s 301 are each amended to
read as follows:
(1) The tax levied by RCW 82.08.020 does not apply to sales of food
and food ingredients. "Food and food ingredients" means substances,
whether in liquid, concentrated, solid, frozen, dried, or dehydrated
form, that are sold for ingestion or chewing by humans and are consumed
for their taste or nutritional value. "Food and food ingredients" does
not include:
(a) "Alcoholic beverages," which means beverages that are suitable
for human consumption and contain one-half of one percent or more of
alcohol by volume; and
(b) "Tobacco," which means cigarettes, cigars, chewing or pipe
tobacco, or any other item that contains tobacco.
(2) The exemption of "food and food ingredients" provided for in
subsection (1) of this section does not apply to prepared food, soft
drinks, bottled water, or dietary supplements. ((For purposes of this
subsection, the following definitions apply:)) The definitions in this
subsection apply throughout this section unless the context clearly
requires otherwise.
(a) "Bottled water" means water that is placed in a safety sealed
container or package for human consumption. Bottled water is calorie
free and does not contain sweeteners or other additives except that it
may contain: (i) Antimicrobial agents; (ii) fluoride; (iii)
carbonation; (iv) vitamins, minerals, and electrolytes; (v) oxygen;
(vi) preservatives; and (vii) only those flavors, extracts, or essences
derived from a spice or fruit. "Bottled water" includes water that is
delivered to the buyer in a reusable container that is not sold with
the water.
(b) "Dietary supplement" means any product, other than tobacco,
intended to supplement the diet that:
(i) Contains one or more of the following dietary ingredients:
(A) A vitamin;
(B) A mineral;
(C) An herb or other botanical;
(D) An amino acid;
(E) A dietary substance for use by humans to supplement the diet by
increasing the total dietary intake; or
(F) A concentrate, metabolite, constituent, extract, or combination
of any ingredient described in this subsection;
(ii) Is intended for ingestion in tablet, capsule, powder, softgel,
gelcap, or liquid form, or if not intended for ingestion in such form,
is not represented as conventional food and is not represented for use
as a sole item of a meal or of the diet; and
(iii) Is required to be labeled as a dietary supplement,
identifiable by the "supplement facts" box found on the label as
required pursuant to 21 C.F.R. Sec. 101.36, as amended or renumbered as
of January 1, 2003.
(((b))) (c)(i) "Prepared food" means:
(A) Food sold in a heated state or heated by the seller;
(B) Food sold with eating utensils provided by the seller,
including plates, knives, forks, spoons, glasses, cups, napkins, or
straws. A plate does not include a container or packaging used to
transport the food; or
(C) Two or more food ingredients mixed or combined by the seller
for sale as a single item, except:
(I) Food that is only cut, repackaged, or pasteurized by the
seller; or
(II) Raw eggs, fish, meat, poultry, and foods containing these raw
animal foods requiring cooking by the consumer as recommended by the
federal food and drug administration in chapter 3, part 401.11 of The
Food Code, published by the food and drug administration, as amended or
renumbered as of January 1, 2003, so as to prevent foodborne illness.
(ii) "Prepared food" does not include the following food or food
ingredients, if the food or food ingredients are sold without eating
utensils provided by the seller:
(A) Food sold by a seller whose proper primary North American
industry classification system (NAICS) classification is manufacturing
in sector 311, except subsector 3118 (bakeries), as provided in the
"North American industry classification system -- United States, 2002";
(B) Food sold in an unheated state by weight or volume as a single
item; or
(C) Bakery items. The term "bakery items" includes bread, rolls,
buns, biscuits, bagels, croissants, pastries, donuts, Danish, cakes,
tortes, pies, tarts, muffins, bars, cookies, or tortillas.
(((c))) (d) "Soft drinks" means nonalcoholic beverages that contain
natural or artificial sweeteners. Soft drinks do not include beverages
that contain: Milk or milk products; soy, rice, or similar milk
substitutes; or greater than fifty percent of vegetable or fruit juice
by volume.
(3) Notwithstanding anything in this section to the contrary, the
exemption of "food and food ingredients" provided in this section
applies to food and food ingredients that are furnished, prepared, or
served as meals:
(a) Under a state administered nutrition program for the aged as
provided for in the older Americans act (P.L. 95-478 Title III) and RCW
74.38.040(6);
(b) That are provided to senior citizens, individuals with
disabilities, or low-income persons by a not-for-profit organization
organized under chapter 24.03 or 24.12 RCW; or
(c) That are provided to residents, sixty-two years of age or
older, of a qualified low-income senior housing facility by the lessor
or operator of the facility. The sale of a meal that is billed to both
spouses of a marital community or both domestic partners of a domestic
partnership meets the age requirement in this subsection (3)(c) if at
least one of the spouses or domestic partners is at least sixty-two
years of age. For purposes of this subsection, "qualified low-income
senior housing facility" means a facility:
(i) That meets the definition of a qualified low-income housing
project under 26 U.S.C. Sec. 42 of the federal internal revenue code,
as existing on August 1, 2009;
(ii) That has been partially funded under 42 U.S.C. Sec. 1485; and
(iii) For which the lessor or operator has at any time been
entitled to claim a federal income tax credit under 26 U.S.C. Sec. 42
of the federal internal revenue code.
(4)(a) Subsection (1) of this section notwithstanding, the retail
sale of food and food ingredients is subject to sales tax under RCW
82.08.020 if the food and food ingredients are sold through a vending
machine. Except as provided in (b) of this subsection, the selling
price of food and food ingredients sold through a vending machine for
purposes of RCW 82.08.020 is fifty-seven percent of the gross receipts.
(b) For soft drinks and hot prepared food and food ingredients,
other than food and food ingredients which are heated after they have
been dispensed from the vending machine, the selling price is the total
gross receipts of such sales divided by the sum of one plus the sales
tax rate expressed as a decimal.
(c) For tax collected under this subsection (4), the requirements
that the tax be collected from the buyer and that the amount of tax be
stated as a separate item are waived.
Sec. 104 RCW 82.12.0293 and 2011 c 2 s 303 are each amended to
read as follows:
(1) The provisions of this chapter do not apply in respect to the
use of food and food ingredients for human consumption. "Food and food
ingredients" has the same meaning as in RCW 82.08.0293.
(2) The exemption of "food and food ingredients" provided for in
subsection (1) of this section does not apply to prepared food, soft
drinks, bottled water, or dietary supplements. "Prepared food," "soft
drinks," "bottled water," and "dietary supplements" have the same
meanings as in RCW 82.08.0293.
(3) Notwithstanding anything in this section to the contrary, the
exemption of "food and food ingredients" provided in this section
applies to food and food ingredients which are furnished, prepared, or
served as meals:
(a) Under a state administered nutrition program for the aged as
provided for in the older Americans act (P.L. 95-478 Title III) and RCW
74.38.040(6);
(b) Which are provided to senior citizens, individuals with
disabilities, or low-income persons by a not-for-profit organization
organized under chapter 24.03 or 24.12 RCW; or
(c) That are provided to residents, sixty-two years of age or
older, of a qualified low-income senior housing facility by the lessor
or operator of the facility. The sale of a meal that is billed to both
spouses of a marital community or both domestic partners of a domestic
partnership meets the age requirement in this subsection (3)(c) if at
least one of the spouses or domestic partners is at least sixty-two
years of age. For purposes of this subsection, "qualified low-income
senior housing facility" has the same meaning as in RCW 82.08.0293.
NEW SECTION. Sec. 105 A new section is added to chapter 82.08
RCW to read as follows:
(1) Subject to the conditions in this section, the tax levied by
RCW 82.08.020 does not apply to sales of bottled water dispensed or to
be dispensed to patients, pursuant to a prescription for use in the
cure, mitigation, treatment, or prevention of disease or other medical
condition.
(2) For purposes of this section, "prescription" means an order,
formula, or recipe issued in any form of oral, written, electronic, or
other means of transmission by a duly licensed practitioner authorized
by the laws of this state to prescribe.
(3) Except for sales of bottled water delivered to the buyer in a
reusable container that is not sold with the water, sellers must
collect tax on sales subject to this exemption. Any buyer that has
paid at least twenty-five dollars in state and local sales taxes on
purchases of bottled water subject to this exemption may apply for a
refund of the taxes directly from the department in a form and manner
prescribed by the department. The department must deny any refund
application if the amount of the refund requested is less than twenty-five dollars. No refund may be made for taxes paid more than four
years after the end of the calendar year in which the tax was paid to
the seller.
(4) The provisions of RCW 82.32.060 apply to refunds authorized
under this section.
(5) With respect to sales of bottled water delivered to the buyer
in a reusable container that is not sold with the water, buyers
claiming the exemption provided in this section must provide the seller
with an exemption certificate in a form and manner prescribed by the
department. The seller must retain a copy of the certificate for the
seller's files.
NEW SECTION. Sec. 106 A new section is added to chapter 82.12
RCW to read as follows:
(1) The provisions of this chapter do not apply in respect to the
use of bottled water dispensed or to be dispensed to patients, pursuant
to a prescription for use in the cure, mitigation, treatment, or
prevention of disease or medical condition.
(2) For the purposes of this section, "prescription" has the same
meaning as provided in section 105 of this act.
NEW SECTION. Sec. 107 A new section is added to chapter 82.08
RCW to read as follows:
(1)(a) Subject to the conditions in this section, the tax levied by
RCW 82.08.020 does not apply to sales of bottled water to persons whose
primary source of drinking water is unsafe.
(b) For purposes of this subsection and section 108 of this act, a
person's primary source of drinking water is unsafe if:
(i) The public water system providing the drinking water has issued
a public notification that the drinking water may pose a health risk,
and the notification is still in effect on the date that the bottled
water was purchased;
(ii) Test results on the person's drinking water, which are no more
than twelve months old, from a laboratory certified to perform drinking
water testing show that the person's drinking water does not meet safe
drinking water standards applicable to public water systems; or
(iii) The person otherwise establishes, to the department's
satisfaction, that the person's drinking water does not meet safe
drinking water standards applicable to public water systems.
(2) Except for sales of bottled water delivered to the buyer in a
reusable container that is not sold with the water, sellers must
collect tax on sales subject to this exemption. Any buyer that has
paid at least twenty-five dollars in state and local sales taxes on
purchases of bottled water subject to this exemption may apply for a
refund of the taxes directly from the department in a form and manner
prescribed by the department. The department must deny any refund
application if the amount of the refund requested is less than
twenty-five dollars. No refund may be made for taxes paid more than
four years after the end of the calendar year in which the tax was paid
to the seller.
(3) The provisions of RCW 82.32.060 apply to refunds authorized
under this section.
(4)(a) With respect to sales of bottled water delivered to the
buyer in a reusable container that is not sold with the water, buyers
claiming the exemption provided in this section must provide the seller
with an exemption certificate in a form and manner prescribed by the
department. The seller must retain a copy of the certificate for the
seller's files.
(b) The department may waive the requirement for an exemption
certificate in the event of disaster or similar circumstance.
NEW SECTION. Sec. 108 A new section is added to chapter 82.12
RCW to read as follows:
The provisions of this chapter do not apply in respect to the use
of bottled water by persons whose primary source of drinking water is
unsafe as provided in section 107 of this act.
Sec. 109 RCW 82.08.0273 and 2011 c 7 s 1 are each amended to read
as follows:
(1) Subject to the conditions and limitations in this section, an
exemption from the tax levied by RCW 82.08.020 ((does not apply to)) in
the form of a remittance from the department is provided for sales to
nonresidents of this state of tangible personal property, digital
goods, and digital codes((, when)). The exemption only applies if:
(a) The property is for use outside this state;
(b) The purchaser is a bona fide resident of a province or
territory of Canada or a state, territory, or possession of the United
States, other than the state of Washington; and
(i) Such state, possession, territory, or province does not impose,
or have imposed on its behalf, a generally applicable retail sales tax,
use tax, value added tax, gross receipts tax on retailing activities,
or similar generally applicable tax, of three percent or more; or
(ii) If imposing a tax described in (b)(i) of this subsection,
provides an exemption for sales to Washington residents by reason of
their residence; and
(c) The purchaser agrees, when requested, to grant the department
of revenue access to such records and other forms of verification at
((his or her)) the purchaser's place of residence to assure that such
purchases are not first used substantially in the state of Washington.
(2) Notwithstanding anything to the contrary in this chapter, if
parts or other tangible personal property are installed by the seller
during the course of repairing, cleaning, altering, or improving motor
vehicles, trailers, or campers and the seller makes a separate charge
for the tangible personal property, the tax levied by RCW 82.08.020
does not apply to the separately stated charge to a nonresident
purchaser for the tangible personal property but only if the separately
stated charge does not exceed either the seller's current publicly
stated retail price for the tangible personal property or, if no
publicly stated retail price is available, the seller's cost for the
tangible personal property. However, the exemption provided by this
section does not apply if tangible personal property is installed by
the seller during the course of repairing, cleaning, altering, or
improving motor vehicles, trailers, or campers and the seller makes a
single nonitemized charge for providing the tangible personal property
and service. All of the ((requirements)) provisions in subsections (1)
and (3) through (((6))) (7) of this section apply to this subsection.
(3)(a) Any person claiming exemption from retail sales tax under
the provisions of this section must ((display proof of his or her
current nonresident status as provided in this section)) pay the state
and local sales tax to the seller at the time of purchase and then
request a remittance from the department in accordance with this
subsection and subsection (4) of this section. A request for
remittance must include proof of the person's status as a nonresident
at the time of the purchase for which a remittance is requested. The
request for a remittance must also include any additional information
and documentation as required by the department, which may include a
description of the item purchased for which a remittance is requested,
the sales price of the item, the amount of state and local sales tax
paid on the item, the date of the purchase, the name of the seller and
the physical address where the sale took place, and copies of sales
receipts showing the qualified purchases.
(b) Acceptable proof of a nonresident person's status includes one
piece of identification such as a valid driver's license from the
jurisdiction in which the out-of-state residency is claimed or a valid
identification card which has a photograph of the holder and is issued
by the out-of-state jurisdiction. Identification under this subsection
(3)(b) must show the holder's residential address and have as one of
its legal purposes the establishment of residency in that out-of-state
jurisdiction.
(c) In lieu of furnishing proof of a person's nonresident status
under (b) of this subsection (3), a person claiming exemption from
retail sales tax under the provisions of this section may provide the
seller with an exemption certificate in compliance with subsection
(4)(b) of this section.
(4)(a) ((Nothing in this section requires the vendor to make tax
exempt retail sales to nonresidents. A vendor may choose to make sales
to nonresidents, collect the sales tax, and remit the amount of sales
tax collected to the state as otherwise provided by law. If the vendor
chooses to make a sale to a nonresident without collecting the sales
tax, the vendor must examine the purchaser's proof of nonresidence,
determine whether the proof is acceptable under subsection (3)(b) of
this section, and maintain records for each nontaxable sale which shall
show the type of proof accepted, including any identification numbers
where appropriate, and the expiration date, if any.)) (i) Beginning January 1, 2014,
through December 31, 2014, a person may request a remittance from the
department for state and local sales taxes paid by the person on
qualified retail purchases made in Washington between August 1, 2013,
and December 31, 2013.
(b) In lieu of using the method provided in (a) of this subsection
to document an exempt sale to a nonresident, a seller may accept from
the purchaser a properly completed uniform exemption certificate
approved by the streamlined sales and use tax agreement governing board
or any other exemption certificate as may be authorized by the
department and properly completed by the purchaser. A nonresident
purchaser who uses an exemption certificate authorized in this
subsection (4)(b) must include the purchaser's driver's license number
or other state-issued identification number and the state of issuance.
(c) In lieu of using the methods provided in (a) and (b) of this
subsection to document an exempt sale to a nonresident, a seller may
capture the relevant data elements as allowed under the streamlined
sales and use tax agreement.
(5)(a) Any person making fraudulent statements, which includes the
offer of fraudulent identification or fraudulently procured
identification to a vendor, in order to purchase goods without paying
retail sales tax is guilty of perjury under chapter 9A.72 RCW.
(b) Any person making tax exempt purchases under this section by
displaying proof of identification not his or her own, or counterfeit
identification, with intent to violate the provisions of this section,
is guilty of a misdemeanor and, in addition, is liable for the tax and
subject to a penalty equal to the greater of one hundred dollars or the
tax due on such purchases.
(6)(a) Any vendor who makes sales without collecting the tax and
who fails to maintain records of sales to nonresidents as provided in
this section is personally liable for the amount of tax due.
(b) Any vendor who makes sales without collecting the retail sales
tax under this section and who has actual knowledge that the
purchaser's proof of identification establishing out-of-state residency
is fraudulent is guilty of a misdemeanor and, in addition, is liable
for the tax and subject to a penalty equal to the greater of one
thousand dollars or the tax due on such sales. In addition, both the
purchaser and the vendor are liable for any penalties and interest
assessable under chapter 82.32 RCW.
(ii) Beginning January 1, 2015, a person may request a remittance
from the department during any calendar year for state and local sales
taxes paid by the person on qualified retail purchases made in
Washington during the immediately preceding calendar year only. No
application may be made with respect to purchases made before the
immediately preceding calendar year.
(b) The remittance request, including proof of nonresident status
and any other documentation and information required by the department,
must be made using an electronic application process as prescribed by
the department. Only one remittance request may be made by a person
per calendar year.
(c) The total amount of a remittance request must be at least
twenty-five dollars. The department must deny any request for a
remittance that is less than twenty-five dollars.
(d) The department will examine the applicant's proof of
nonresident status and any other documentation and information as
required in the application to determine whether the applicant is
entitled to a remittance under this section.
(5)(a) Any person making fraudulent statements to the department,
which includes the offer of fraudulent or fraudulently procured
identification or fraudulent sales receipts, in order to receive a
remittance of retail sales tax is guilty of perjury under chapter 9A.72
RCW.
(b) Any person requesting a remittance of sales tax from the
department by providing proof of identification or sales receipts not
the person's own, or counterfeit identification or sales receipts, with
intent to violate the provisions of this section, is guilty of a
misdemeanor and, in addition, is liable for the tax and subject to a
penalty equal to the greater of one hundred dollars or the tax due on
such purchases.
(6) The exemption provided by this section is for both state and
local sales taxes. For purposes of this section, "local sales tax"
means a sales tax imposed by a local government under the authority of
chapter 82.14 RCW, RCW 81.104.170, or other provision of law, and which
is imposed on the same taxable event as the state sales tax imposed in
this chapter.
(7) A nonresident who receives a refund of sales tax from the
seller for any reason with respect to a purchase made in this state is
not entitled to a remittance for the tax paid on the purchase. A
person who receives both a remittance under this section and a refund
from the seller with respect to the same purchase must immediately
repay the remittance to the department. Interest as provided in
chapter 82.32 RCW applies to amounts due under this section from the
date that the department made the remittance until the amount due under
this subsection is paid to the department. A person who receives a
remittance with respect to a purchase for which the person had, at the
time the person submitted the application for a remittance, already
received a refund of sales tax from the seller is also liable for the
evasion penalty in RCW 82.32.090(7) and is ineligible to receive any
further remittances from the department under this section.
Sec. 110 RCW 82.04.4452 and 2010 c 114 s 114 are each amended to
read as follows:
(1) In computing the tax imposed under this chapter, a credit is
allowed for each person whose research and development spending during
the year in which the credit is claimed exceeds 0.92 percent of the
person's taxable amount during the same calendar year.
(2)(a) The credit is calculated as follows:
(((a))) (i) Determine the greater of the amount of qualified
research and development expenditures of a person or eighty percent of
amounts received by a person other than a public educational or
research institution in compensation for the conduct of qualified
research and development;
(((b))) (ii) Subtract 0.92 percent of the person's taxable amount
from the amount determined under (a)(i) of this subsection;
(((c))) (iii) Multiply the amount determined under (((b))) (a)(ii)
of this subsection by ((the following:)) 1.50 percent.
(i) For the period June 10, 2004, through December 31, 2006, the
person's average tax rate for the calendar year for which the credit is
claimed;
(ii) For the calendar year ending December 31, 2007, the greater of
the person's average tax rate for that calendar year or 0.75 percent;
(iii) For the calendar year ending December 31, 2008, the greater
of the person's average tax rate for that calendar year or 1.0 percent;
(iv) For the calendar year ending December 31, 2009, the greater of
the person's average tax rate for that calendar year or 1.25 percent;
(v) For the calendar year ending December 31, 2010, and
thereafter,
(b) For purposes of calculating the credit, if a person's reporting
period is less than annual, the person may use an estimated average tax
rate for the calendar year for which the credit is claimed by using the
person's average tax rate for each reporting period. A person who uses
an estimated average tax rate must make an adjustment to the total
credit claimed for the calendar year using the person's actual average
tax rate for the calendar year when the person files its last return
for the calendar year for which the credit is claimed.
(3) Any person entitled to the credit provided in subsection (2) of
this section as a result of qualified research and development
conducted under contract may assign all or any portion of the credit to
the person contracting for the performance of the qualified research
and development.
(4) The credit, including any credit assigned to a person under
subsection (3) of this section, must be claimed against taxes due for
the same calendar year in which the qualified research and development
expenditures are incurred. The credit, including any credit assigned
to a person under subsection (3) of this section, for each calendar
year may not exceed the lesser of two million dollars or the amount of
tax otherwise due under this chapter for the calendar year.
(5) For any person claiming the credit, including any credit
assigned to a person under subsection (3) of this section, whose
research and development spending during the calendar year in which the
credit is claimed fails to exceed 0.92 percent of the person's taxable
amount during the same calendar year or who is otherwise ineligible,
the department must declare the taxes against which the credit was
claimed to be immediately due and payable. The department must assess
interest, but not penalties, on the taxes against which the credit was
claimed. Interest must be assessed at the rate provided for delinquent
excise taxes under chapter 82.32 RCW, retroactively to the date the
credit was claimed, and accrues until the taxes against which the
credit was claimed are repaid. Any credit assigned to a person under
subsection (3) of this section that is disallowed as a result of this
section may be claimed by the person who performed the qualified
research and development subject to the limitations set forth in
subsection (4) of this section.
(6) A person may not claim a credit under this section if the
person reported an annual gross amount, as reported on the state
combined excise tax return, of ten million dollars or more in the prior
calendar year. Taxpayers disallowed from claiming the credit under
this subsection (6) are not required to refund any credit claimed in
calendar year 2013 prior to the effective date of this section.
(7) A person claiming the credit provided in this section must file
a complete annual survey with the department under RCW 82.32.585.
(((7) For the purpose of this section:)) The definitions in this
subsection apply throughout this section unless the context clearly
requires otherwise.
(8)(a) "Average tax rate" means a person's total tax liability
under this chapter for the calendar year for which the credit is
claimed divided by the taxpayer's total taxable amount under this
chapter for the calendar year for which the credit is claimed.
(b) "Qualified research and development expenditures" means
operating expenses, including wages, compensation of a proprietor or a
partner in a partnership as determined under rules adopted by the
department, benefits, supplies, and computer expenses, directly
incurred in qualified research and development by a person claiming the
credit provided in this section. The term does not include amounts
paid to a person other than a public educational or research
institution to conduct qualified research and development. Nor does
the term include capital costs and overhead, such as expenses for land,
structures, or depreciable property.
(c) "Qualified research and development" ((shall have)) has the
same meaning as provided in RCW 82.63.010.
(d) "Research and development spending" means qualified research
and development expenditures plus eighty percent of amounts paid to a
person other than a public educational or research institution to
conduct qualified research and development.
(e) "Taxable amount" means the taxable amount subject to the tax
imposed in this chapter required to be reported on the person's
combined excise tax returns for the calendar year for which the credit
is claimed, less any taxable amount for which a credit is allowed under
RCW 82.04.440.
(((8))) (9) This section expires January 1, 2015.
Sec. 111 RCW 82.63.030 and 2008 c 15 s 4 are each amended to read
as follows:
(1) Except as provided in subsection (2) of this section, the
department ((shall)) must issue a sales and use tax deferral
certificate for state and local sales and use taxes due under chapters
82.08, 82.12, and 82.14 RCW on each eligible investment project.
(2) No certificate may be issued for an investment project that has
already received a deferral under chapter 82.60 RCW or this chapter,
except that an investment project for qualified research and
development that has already received a deferral may also receive an
additional deferral certificate for adapting the investment project for
use in pilot scale manufacturing.
(3) The department may not issue a certificate under this section
on or after July 1, 2013.
(4) This section ((shall)) expires January 1, 2015.
NEW SECTION. Sec. 112 RCW 82.04.272 (Tax on warehousing and
reselling prescription drugs) and 2013 c 19 s 127, 2003 c 168 s 401, &
1998 c 343 s 1 are each repealed.
NEW SECTION. Sec. 113 Section 112 of this act applies to taxes
due for reporting periods beginning on or after the effective date of
section 112 of this act.
Sec. 114 RCW 82.12.0263 and 1980 c 37 s 62 are each amended to
read as follows:
The provisions of this chapter ((shall)) do not apply in respect to
the use of biomass fuel by the extractor or manufacturer thereof when
used directly in the operation of the particular extractive operation
or manufacturing plant which produced or manufactured the same. For
purposes of this section, "biomass fuel" means wood waste and other
wood residuals, including forest derived biomass, but does not include
firewood or wood pellets. "Biomass fuel" also includes partially
organic by-products of pulp, paper, and wood manufacturing processes.
NEW SECTION. Sec. 115 A new section is added to chapter 82.12
RCW to read as follows:
The value of the article used with respect to refinery fuel gas
under this chapter is the most recent monthly United States natural gas
wellhead price, as published by the federal energy information
administration.
NEW SECTION. Sec. 201 A new section is added to 2013 1st sp.s.
c ... (House Bill 1057) (uncodified) to read as follows:
FOR THE UNIVERSITY OF WASHINGTON
(1) The sum of nine million seven hundred and twenty thousand
dollars is appropriated for the fiscal biennium ending June 30, 2015,
from the education legacy trust account--state to the University of
Washington.
(2) The sum of twenty four million eight hundred and sixty eight
thousand dollars is appropriated for the fiscal biennium ending June
30, 2015, from the education legacy trust account--state to the
University of Washington. The appropriation in this subsection is
provided solely for the expansion of computer science and engineering
enrollments. The university will work with the education research and
data center to establish program baselines and demonstrate enrollment
increases. By September 1, 2014, and each September 1st thereafter,
the university shall provide a report that provides the specific detail
on how these amounts were spent in the preceding fiscal year including
but not limited to the cost per student, student completion rates, and
the number of low-income students enrolled in each program, any process
changes or best-practices implemented by the college, and how many
students are enrolled in computer science and engineering programs
above the 2012-2013 academic year baseline.
NEW SECTION. Sec. 202 A new section is added to 2013 1st sp.s.
c ... (House Bill 1057) (uncodified) to read as follows:
FOR WASHINGTON STATE UNIVERSITY
(1) The sum of five million seven thousand dollars is appropriated
for the biennium ending June 30, 2015, from the education legacy trust
account--state to Washington State University.
(2) The sum of seventeen million six hundred and twenty eight
thousand dollars is appropriated for the fiscal biennium ending June
30, 2015, from the education legacy trust account--state to Washington
State University. The appropriation in this subsection is provided
solely for the expansion of computer science and engineering
enrollments. The university will work with the education research and
data center to establish program baselines and demonstrate enrollment
increases. By September 1, 2014, and each September 1st thereafter,
the university shall provide a report that provides the specific detail
on how these amounts were spent in the preceding fiscal year including
but not limited to the cost per student, student completion rates, and
the number of low-income students enrolled in each program, any process
changes or best-practices implemented by the college, and how many
students are enrolled in computer science and engineering programs
above the 2012-2013 academic year baseline.
NEW SECTION. Sec. 203 A new section is added to 2013 1st sp.s.
c ... (House Bill 1057) (uncodified) to read as follows:
FOR WESTERN WASHINGTON UNIVERSITY
(1) The sum of five million and twenty four thousand dollars is
appropriated for the fiscal biennium ending June 30, 2015, from the
education legacy trust account--state to the Western Washington
University.
(2) The sum of four million eight hundred and sixty eight dollars
is appropriated for the fiscal biennium ending June 30, 2015, from the
education legacy trust account--state to the Western Washington
University. The appropriation in this subsection is provided solely
for the expansion of computer science and engineering enrollments. The
university will work with the education research and data center to
establish program baselines and demonstrate enrollment increases. By
September 1, 2014, and each September 1st thereafter, the university
shall provide a report that provides the specific detail on how these
amounts were spent in the preceding fiscal year including but not
limited to the cost per student, student completion rates, and the
number of low-income students enrolled in each program, any process
changes or best-practices implemented by the college, and how many
students are enrolled in computer science and engineering programs
above the 2012-2013 academic year baseline.
NEW SECTION. Sec. 204 A new section is added to 2013 1st sp.s.
c ... (House Bill 1057) (uncodified) to read as follows:
FOR CENTRAL WASHINGTON UNIVERSITY
The sum of two million and eighteen thousand dollars is
appropriated for the fiscal biennium ending June 30, 2015, from the
education legacy trust account--state to Central Washington University.
NEW SECTION. Sec. 205 A new section is added to 2013 1st sp.s.
c ... (House Bill 1057) (uncodified) to read as follows:
FOR EASTERN WASHINGTON UNIVERSITY
The sum of one million and three hundred and fifteen thousand
dollars is appropriated for the fiscal biennium ending June 30, 2015,
from the education legacy trust account--state to Eastern Washington
University.
NEW SECTION. Sec. 206 A new section is added to 2013 1st sp.s.
c ... (House Bill 1057) (uncodified) to read as follows:
FOR THE EVERGREEN STATE COLLEGE
The sum of seven hundred and fifty two thousand dollars is
appropriated for the fiscal biennium ending June 30, 2015, from the
education legacy trust account--state to The Evergreen State College.
NEW SECTION. Sec. 207 A new section is added to 2013 1st sp.s.
c ... (House Bill 1057) (uncodified) to read as follows:
FOR THE STATE BOARD FOR COMMUNITY AND TECHNICAL COLLEGES
The sum of two million five hundred thousand dollars is
appropriated for the fiscal biennium ending June 30, 2015, from the
education legacy trust account--state to the state board for community
and technical colleges. The appropriation in this section is provided
solely for the student achievement initiative.
NEW SECTION. Sec. 208 A new section is added to 2013 1st sp.s.
c ... (House Bill 1057) (uncodified) to read as follows:
FOR THE STUDENT ACHIEVEMENT COUNCIL--OPPORTUNITY SCHOLARSHIP
The sum of five million dollars is appropriated for the fiscal
biennium ending June 30, 2015, from the education legacy trust
account--state to the student achievement council. The appropriation
in this section is provided solely for expenditure into the opportunity
scholarship match transfer account for purposes of the opportunity
scholarship program established in chapter 28B.145 RCW. The council
shall enter appropriate agreements with the administrator to
demonstrate receipt of consideration for public funds and use of public
funds for the specified statutory purposes.
Sec. 209 RCW 28A.150.220 and 2013 c 323 s 2 are each amended to
read as follows:
(1) In order for students to have the opportunity to develop the
basic education knowledge and skills under RCW 28A.150.210, school
districts must provide instruction of sufficient quantity and quality
and give students the opportunity to complete graduation requirements
that are intended to prepare them for postsecondary education, gainful
employment, and citizenship. The program established under this
section shall be the minimum instructional program of basic education
offered by school districts.
(2) Each school district shall make available to students the
following minimum instructional offering each school year:
(a) For students enrolled in grades one through twelve, at least a
district-wide annual average of one thousand hours, which shall be
increased district-wide to ((at least one thousand eighty instructional
hours for students enrolled in each of grades seven through twelve
and)) at least one thousand instructional hours for students in each of
grades one through six ((according to an implementation schedule
adopted by the legislature, but not before)) beginning with the ((2014-15)) 2017-18 school year((;)), and increased district-wide for students
in each of grades seven through twelve according to the following
implementation schedule:
Minimum instructional
hours for grades 7-12
2014-15 school year . . . . . . . . . . . . 1,020
2015-16 school year . . . . . . . . . . . . 1,040
2016-17 school year . . . . . . . . . . . . 1,060
2017-18 school year and thereafter . . . . . . . . . . . . 1,080
(b) For students enrolled in kindergarten, at least four hundred
fifty instructional hours, which shall be increased to at least one
thousand instructional hours according to the implementation schedule
under RCW 28A.150.315.
(3) The instructional program of basic education provided by each
school district shall include:
(a) Instruction in the essential academic learning requirements
under RCW 28A.655.070;
(b) Instruction that provides students the opportunity to complete
twenty-four credits for high school graduation, ((subject to a phased-in implementation of the twenty-four credits as established by the
legislature)) beginning with the graduating class of 2018. Course
distribution requirements may be established by the state board of
education under RCW 28A.230.090;
(c) If the essential academic learning requirements include a
requirement of languages other than English, the requirement may be met
by students receiving instruction in one or more American Indian
languages;
(d) Supplemental instruction and services for underachieving
students through the learning assistance program under RCW 28A.165.005
through 28A.165.065;
(e) Supplemental instruction and services for eligible and enrolled
students whose primary language is other than English through the
transitional bilingual instruction program under RCW 28A.180.010
through 28A.180.080;
(f) The opportunity for an appropriate education at public expense
as defined by RCW 28A.155.020 for all eligible students with
disabilities as defined in RCW 28A.155.020; and
(g) Programs for highly capable students under RCW 28A.185.010
through 28A.185.030.
(4) Nothing contained in this section shall be construed to require
individual students to attend school for any particular number of hours
per day or to take any particular courses.
(5) Each school district's kindergarten through twelfth grade basic
educational program shall be accessible to all students who are five
years of age, as provided by RCW 28A.225.160, and less than twenty-one
years of age and shall consist of a minimum of one hundred eighty
school days per school year in such grades as are conducted by a school
district, and one hundred eighty half-days of instruction, or
equivalent, in kindergarten, to be increased to a minimum of one
hundred eighty school days per school year according to the
implementation schedule under RCW 28A.150.315. However, schools
administering the Washington kindergarten inventory of developing
skills may use up to three school days at the beginning of the school
year to meet with parents and families as required in the parent
involvement component of the inventory. In addition, effective May 1,
1979, a school district may schedule the last five school days of the
one hundred and eighty day school year for noninstructional purposes in
the case of students who are graduating from high school, including,
but not limited to, the observance of graduation and early release from
school upon the request of a student, and all such students may be
claimed as a full-time equivalent student to the extent they could
otherwise have been so claimed for the purposes of RCW 28A.150.250 and
28A.150.260.
(6) Nothing in this section precludes a school district from
enriching the instructional program of basic education, such as
offering additional instruction or providing additional services,
programs, or activities that the school district determines to be
appropriate for the education of the school district's students.
(7) The state board of education shall adopt rules to implement and
ensure compliance with the program requirements imposed by this
section, RCW 28A.150.250 and 28A.150.260, and such related supplemental
program approval requirements as the state board may establish.
Sec. 210 RCW 28A.150.260 and 2011 1st sp.s. c 27 s 2 are each
amended to read as follows:
The purpose of this section is to provide for the allocation of
state funding that the legislature deems necessary to support school
districts in offering the minimum instructional program of basic
education under RCW 28A.150.220. The allocation shall be determined as
follows:
(1) The governor shall and the superintendent of public instruction
may recommend to the legislature a formula for the distribution of a
basic education instructional allocation for each common school
district.
(2) The distribution formula under this section shall be for
allocation purposes only. Except as may be required under chapter
28A.155, 28A.165, 28A.180, or 28A.185 RCW, or federal laws and
regulations, nothing in this section requires school districts to use
basic education instructional funds to implement a particular
instructional approach or service. Nothing in this section requires
school districts to maintain a particular classroom teacher-to-student
ratio or other staff-to-student ratio or to use allocated funds to pay
for particular types or classifications of staff. Nothing in this
section entitles an individual teacher to a particular teacher planning
period.
(3)(a) To the extent the technical details of the formula have been
adopted by the legislature and except when specifically provided as a
school district allocation, the distribution formula for the basic
education instructional allocation shall be based on minimum staffing
and nonstaff costs the legislature deems necessary to support
instruction and operations in prototypical schools serving high,
middle, and elementary school students as provided in this section.
The use of prototypical schools for the distribution formula does not
constitute legislative intent that schools should be operated or
structured in a similar fashion as the prototypes. Prototypical
schools illustrate the level of resources needed to operate a school of
a particular size with particular types and grade levels of students
using commonly understood terms and inputs, such as class size, hours
of instruction, and various categories of school staff. It is the
intent that the funding allocations to school districts be adjusted
from the school prototypes based on the actual number of annual average
full-time equivalent students in each grade level at each school in the
district and not based on the grade-level configuration of the school
to the extent that data is available. The allocations shall be further
adjusted from the school prototypes with minimum allocations for small
schools and to reflect other factors identified in the omnibus
appropriations act.
(b) For the purposes of this section, prototypical schools are
defined as follows:
(i) A prototypical high school has six hundred average annual full-time equivalent students in grades nine through twelve;
(ii) A prototypical middle school has four hundred thirty-two
average annual full-time equivalent students in grades seven and eight;
and
(iii) A prototypical elementary school has four hundred average
annual full-time equivalent students in grades kindergarten through
six.
(4)(a) The minimum allocation for each level of prototypical school
shall be based on the number of full-time equivalent classroom teachers
needed to provide instruction over the minimum required annual
instructional hours under RCW 28A.150.220 and provide at least one
teacher planning period per school day, and based on the following
general education average class size of full-time equivalent students
per teacher:
General education
average
class size
Grades K-3 . . . . . . . . . . . . 25.23
Grade 4 . . . . . . . . . . . . 27.00
Grades 5-6 . . . . . . . . . . . . 27.00
Grades 7-8 . . . . . . . . . . . . 28.53
Grades 9-12 . . . . . . . . . . . . 28.74
(b) During the 2011-2013 biennium and beginning with schools with
the highest percentage of students eligible for free and reduced-price
meals in the prior school year, the general education average class
size for grades K-3 shall be reduced until the average class size
funded under this subsection (4) is no more than 17.0 full-time
equivalent students per teacher beginning in the 2017-18 school year.
(c) The minimum allocation for each prototypical middle and high
school shall also provide for full-time equivalent classroom teachers
based on the following number of full-time equivalent students per
teacher in career and technical education:
Career and technical
education average
class size
Approved career and technical education offered at
the middle school and high school level . . . . . . . . . . . . 26.57
Skill center programs meeting the standards established
by the office of the superintendent of public
instruction . . . . . . . . . . . . 22.76
(d) In addition, the omnibus appropriations act shall at a minimum
specify:
(i) A high-poverty average class size in schools where more than
fifty percent of the students are eligible for free and reduced-price
meals; and
(ii) A specialty average class size for laboratory science,
advanced placement, and international baccalaureate courses.
(e) To support the increase in instructional hours required under
RCW 28A.150.220(2)(a), beginning with the 2014-15 school year, the
minimum allocation for each prototypical middle school and high school
must provide resources to provide an additional 0.5556 hours of
instruction per week per annual average full-time equivalent student
enrolled in grades seven through twelve, based on the general education
average class sizes specified in (a) of this subsection, which shall be
increased in equal annual increments until an additional 2.2222 hours
of instruction is provided in the 2017-18 school year and thereafter.
(5) The minimum allocation for each level of prototypical school
shall include allocations for the following types of staff in addition
to classroom teachers:
| Elementary School | Middle School | High School | |
| Principals, assistant principals, and other certificated building-level administrators . . . . . . . . . . . . | 1.253 | 1.353 | 1.880 |
| Teacher librarians, a function that includes information literacy, technology, and media to support school library media programs . . . . . . . . . . . . | 0.663 | 0.519 | 0.523 |
| Health and social services: | |||
| School nurses . . . . . . . . . . . . | 0.076 | 0.060 | 0.096 |
| Social workers . . . . . . . . . . . . | 0.042 | 0.006 | 0.015 |
| Psychologists . . . . . . . . . . . . | 0.017 | 0.002 | 0.007 |
| Guidance counselors, a function that includes parent outreach and graduation advising . . . . . . . . . . . . | 0.493 | (( 1.283 | (( 2.076 |
| Teaching assistance, including any aspect of educational instructional services provided by classified employees . . . . . . . . . . . . | 0.936 | 0.700 | 0.652 |
| Office support and other noninstructional aides . . . . . . . . . . . . | 2.012 | 2.325 | 3.269 |
| Custodians . . . . . . . . . . . . | 1.657 | 1.942 | 2.965 |
| Classified staff providing student and staff safety . . . . . . . . . . . . | 0.079 | 0.092 | 0.141 |
| (( | (( 0.167 | 0.00 | 0.00 |
Sec. 211 RCW 28A.150.390 and 2010 c 236 s 3 are each amended to
read as follows:
(1) The superintendent of public instruction shall submit to each
regular session of the legislature during an odd-numbered year a
programmed budget request for special education programs for students
with disabilities. Funding for programs operated by local school
districts shall be on an excess cost basis from appropriations provided
by the legislature for special education programs for students with
disabilities and shall take account of state funds accruing through RCW
28A.150.260 (4)(a) ((and)), (b), and (e), (5), (6), and (8).
(2) The excess cost allocation to school districts shall be based
on the following:
(a) A district's annual average headcount enrollment of students
ages birth through four and those five year olds not yet enrolled in
kindergarten who are eligible for and enrolled in special education,
multiplied by the district's base allocation per full-time equivalent
student, multiplied by 1.15; and
(b) A district's annual average full-time equivalent basic
education enrollment, multiplied by the district's funded enrollment
percent, multiplied by the district's base allocation per full-time
equivalent student, multiplied by 0.9309.
(3) As used in this section:
(a) "Base allocation" means the total state allocation to all
schools in the district generated by the distribution formula under RCW
28A.150.260 (4)(a) ((and)), (b), and (e), (5), (6), and (8), to be
divided by the district's full-time equivalent enrollment.
(b) "Basic education enrollment" means enrollment of resident
students including nonresident students enrolled under RCW 28A.225.225
and students from nonhigh districts enrolled under RCW 28A.225.210 and
excluding students residing in another district enrolled as part of an
interdistrict cooperative program under RCW 28A.225.250.
(c) "Enrollment percent" means the district's resident special
education annual average enrollment, excluding students ages birth
through four and those five year olds not yet enrolled in kindergarten,
as a percent of the district's annual average full-time equivalent
basic education enrollment.
(d) "Funded enrollment percent" means the lesser of the district's
actual enrollment percent or twelve and seven-tenths percent.
Sec. 212 RCW 28A.180.030 and 2001 1st sp.s. c 6 s 3 are each
amended to read as follows:
As used throughout this chapter, unless the context clearly
indicates otherwise:
(1) "Transitional bilingual instruction" means:
(a) A system of instruction which uses two languages, one of which
is English, as a means of instruction to build upon and expand language
skills to enable the pupil to achieve competency in English. Concepts
and information are introduced in the primary language and reinforced
in the second language: PROVIDED, That the program shall include
testing in the subject matter in English; or
(b) In those cases in which the use of two languages is not
practicable as established by the superintendent of public instruction
and unless otherwise prohibited by law, an alternative system of
instruction which may include English as a second language and is
designed to enable the pupil to achieve competency in English.
(2) "Primary language" means the language most often used by the
student for communication in his/her home.
(3) "Eligible pupil" means any enrollee of the school district
whose primary language is other than English and whose English language
skills are sufficiently deficient or absent to impair learning.
(4) "Exited pupil" means a student previously enrolled in the
transitional bilingual instruction program who is no longer eligible
for the program based on his or her performance on an English
proficiency assessment approved by the superintendent of public
instruction.
Sec. 213 RCW 28A.180.040 and 2009 c 380 s 5 are each amended to
read as follows:
(1) Every school district board of directors shall:
(a) Make available to each eligible pupil transitional bilingual
instruction to achieve competency in English, in accord with rules of
the superintendent of public instruction;
(b) Wherever feasible, ensure that communications to parents
emanating from the schools shall be appropriately bilingual for those
parents of pupils in the bilingual instruction program;
(c) Determine, by administration of an English test approved by the
superintendent of public instruction the number of eligible pupils
enrolled in the school district at the beginning of a school year and
thereafter during the year as necessary in individual cases;
(d) Ensure that a student who is a child of a military family in
transition and who has been assessed as in need of, or enrolled in, a
bilingual instruction program, the receiving school shall initially
honor placement of the student into a like program.
(i) The receiving school shall determine whether the district's
program is a like program when compared to the sending school's
program; and
(ii) The receiving school may conduct subsequent assessments
pursuant to RCW 28A.180.090 to determine appropriate placement and
continued enrollment in the program;
(e) Before the conclusion of each school year, measure each
eligible pupil's improvement in learning the English language by means
of a test approved by the superintendent of public instruction; ((and))
(f) Provide in-service training for teachers, counselors, and other
staff, who are involved in the district's transitional bilingual
program. Such training shall include appropriate instructional
strategies for children of culturally different backgrounds, use of
curriculum materials, and program models; and
(g) Make available a program of instructional support for up to two
years immediately after pupils exit from the program, for exited pupils
who need assistance in reaching grade-level performance in academic
subjects even though they have achieved English proficiency for
purposes of the transitional bilingual instructional program.
(2) The definitions in Article II of RCW 28A.705.010 apply to
subsection (1)(d) of this section.
Sec. 214 RCW 28A.230.090 and 2011 c 203 s 2 are each amended to
read as follows:
(1) The state board of education shall establish high school
graduation requirements or equivalencies for students, except as
provided in RCW 28A.230.122 and except those equivalencies established
by local high schools or school districts under RCW 28A.230.097. The
purpose of a high school diploma is to declare that a student is ready
for success in postsecondary education, gainful employment, and
citizenship, and is equipped with the skills to be a lifelong learner.
(a) Any course in Washington state history and government used to
fulfill high school graduation requirements shall consider including
information on the culture, history, and government of the American
Indian peoples who were the first inhabitants of the state.
(b) The certificate of academic achievement requirements under RCW
28A.655.061 or the certificate of individual achievement requirements
under RCW 28A.155.045 are required for graduation from a public high
school but are not the only requirements for graduation.
(c) Any decision on whether a student has met the state board's
high school graduation requirements for a high school and beyond plan
shall remain at the local level.
(2)(a) In recognition of the statutory authority of the state board
of education to establish and enforce minimum high school graduation
requirements, the state board shall periodically reevaluate the
graduation requirements and shall report such findings to the
legislature in a timely manner as determined by the state board.
(b) The state board shall reevaluate the graduation requirements
for students enrolled in vocationally intensive and rigorous career and
technical education programs, particularly those programs that lead to
a certificate or credential that is state or nationally recognized.
The purpose of the evaluation is to ensure that students enrolled in
these programs have sufficient opportunity to earn a certificate of
academic achievement, complete the program and earn the program's
certificate or credential, and complete other state and local
graduation requirements.
(c) The state board shall forward any proposed changes to the high
school graduation requirements to the education committees of the
legislature for review and to the quality education council established
under RCW 28A.290.010. The legislature shall have the opportunity to
act during a regular legislative session before the changes are adopted
through administrative rule by the state board. Changes that have a
fiscal impact on school districts, as identified by a fiscal analysis
prepared by the office of the superintendent of public instruction,
shall take effect only if formally authorized and funded by the
legislature through the omnibus appropriations act or other enacted
legislation.
(d) The state board of education shall adopt rules to implement the
career and college ready graduation requirement proposal adopted under
board resolution on November 10, 2010, to take effect beginning with
the graduating class of 2018. The provisions of chapter . . ., Laws of
2013 1st sp. sess. (this act) and the increased funding allocated under
RCW 28A.150.260 as amended by chapter . . ., Laws of 2013 1st sp. sess.
(this act) constitute the funding by the legislature required under
this section to implement the proposal.
(3) Pursuant to any requirement for instruction in languages other
than English established by the state board of education or a local
school district, or both, for purposes of high school graduation,
students who receive instruction in American sign language or one or
more American Indian languages shall be considered to have satisfied
the state or local school district graduation requirement for
instruction in one or more languages other than English.
(4) If requested by the student and his or her family, a student
who has completed high school courses before attending high school
shall be given high school credit which shall be applied to fulfilling
high school graduation requirements if:
(a) The course was taken with high school students, if the academic
level of the course exceeds the requirements for seventh and eighth
grade classes, and the student has successfully passed by completing
the same course requirements and examinations as the high school
students enrolled in the class; or
(b) The academic level of the course exceeds the requirements for
seventh and eighth grade classes and the course would qualify for high
school credit, because the course is similar or equivalent to a course
offered at a high school in the district as determined by the school
district board of directors.
(5) Students who have taken and successfully completed high school
courses under the circumstances in subsection (4) of this section shall
not be required to take an additional competency examination or perform
any other additional assignment to receive credit.
(6) At the college or university level, five quarter or three
semester hours equals one high school credit.
Sec. 215 2013 1st sp.s. c ... (HB 1057) s 502 (uncodified) is
amended to read as follows:
FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION -- FOR GENERAL APPORTIONMENT
General Fund -- State Appropriation (FY 2014) . . . . . . . . . . . . $5,445,282,000
General Fund -- State Appropriation (FY 2015) . . . . . . . . . . . . $5,735,636,000
Education Legacy Trust Account--State Appropriation . . . . . . . . . . . . (($25,283,000))
$166,115,000
TOTAL APPROPRIATION . . . . . . . . . . . . (($11,206,201,000))
$11,347,033,000
The appropriations in this section are subject to the following
conditions and limitations:
(1)(a) Each general fund fiscal year appropriation includes such
funds as are necessary to complete the school year ending in the fiscal
year and for prior fiscal year adjustments.
(b) For the 2013-14 and 2014-15 school years, the superintendent
shall allocate general apportionment funding to school districts as
provided in the funding formulas and salary schedules in sections 502
and 503 of this act, excluding (c) of this subsection.
(c) From July 1, 2013 to August 31, 2013, the superintendent shall
allocate general apportionment funding to school districts programs as
provided in sections 502 and 503, chapter 50, Laws of 2011 1st sp.
sess., as amended through sections 502 and 503 of the 2013 omnibus
supplemental operating appropriations act.
(d) The enrollment of any district shall be the annual average
number of full-time equivalent students and part-time students as
provided in RCW 28A.150.350, enrolled on the fourth day of school in
September and on the first school day of each month October through
June, including students who are in attendance pursuant to RCW
28A.335.160 and 28A.225.250 who do not reside within the servicing
school district. Any school district concluding its basic education
program in May must report the enrollment of the last school day held
in May in lieu of a June enrollment.
(2) CERTIFICATED INSTRUCTIONAL STAFF ALLOCATIONS
Allocations for certificated instructional staff salaries for the
2013-14 and 2014-15 school years are determined using formula-generated
staff units calculated pursuant to this subsection.
(a) Certificated instructional staff units, as defined in RCW
28A.150.410, shall be allocated to reflect the minimum class size
allocations, requirements, and school prototypes assumptions as
provided in RCW 28A.150.260. The superintendent shall make allocations
to school districts based on the district's annual average full-time
equivalent student enrollment in each grade.
(b) Additional certificated instructional staff units provided in
this subsection (2) that exceed the minimum requirements in RCW
28A.150.260 are enhancements outside the program of basic education,
except as otherwise provided in this section.
(c)(i) The superintendent shall base allocations for each level of
prototypical school on the following regular education average class
size of full-time equivalent students per teacher, except as provided
in (c)(ii) of this subsection:
| General education class size: | ||||
| Grade | RCW 28A.150.260 | 2013-14 School Year | 2014-15 School Year | |
| Grades K-3 | . . . . . . . . . . . . | 23.50 | 23.50 | |
| Grade 4 | . . . . . . . . . . . . | 27.00 | 27.00 | |
| Grades 5-6 | . . . . . . . . . . . . | 27.00 | 27.00 | |
| Grades 7-8 | . . . . . . . . . . . . | 28.53 | 28.53 | |
| Grades 9-12 | . . . . . . . . . . . . | 28.74 | 28.74 |
| General education class size in high poverty school: | 2013-14 School Year | 2014-15 School Year | |
| Grades K-3 | . . . . . . . . . . . . | 21.76 | 21.76 |
| Grade 4 | . . . . . . . . . . . . | 27.00 | 27.00 |
| Grades 5-6 | . . . . . . . . . . . . | 27.00 | 27.00 |
| Grades 7-8 | . . . . . . . . . . . . | 28.53 | 28.53 |
| Grades 9-12 | . . . . . . . . . . . . | 28.74 | 28.74 |
| Prototypical School Building: | ||
| Elementary School | . . . . . . . . . . . . | 1.253 |
| Middle School | . . . . . . . . . . . . | 1.353 |
| High School | . . . . . . . . . . . . | 1.880 |
| MSOC RATES/STUDENT FTE | ||
| MSOC Component | 2013-14 SCHOOL YEAR | 2014-15 SCHOOL YEAR |
| Technology | (( | (( |
| Utilities and Insurance | (( | (( |
| Curriculum and Textbooks | (( | (( |
| Other Supplies and Library Materials | (( | (( |
| Instructional Professional Development for Certificated and Classified Staff | (( | (( |
| Facilities Maintenance | (( | (( |
| Security and Central Office | (( | (( |
| TOTAL BASIC EDUCATION MSOC/STUDENT FTE | (( | (( |
Sec. 216 2013 1st sp.s. c ... (HB 1057) s 507 (uncodified) is
amended to read as follows:
FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION -- FOR SPECIAL EDUCATION
PROGRAMS
General Fund -- State Appropriation (FY 2014) . . . . . . . . . . . . $727,748,000
General Fund -- State Appropriation (FY 2015) . . . . . . . . . . . . $764,041,000
General Fund -- Federal Appropriation . . . . . . . . . . . . $462,020,000
Education Legacy Trust Account--State Appropriation . . . . . . . . . . . . (($756,000))
$14,544,000
TOTAL APPROPRIATION . . . . . . . . . . . . (($1,954,565,000))
$1,968,353,000
The appropriations in this section are subject to the following
conditions and limitations:
(1) Funding for special education programs is provided on an excess
cost basis, pursuant to RCW 28A.150.390. School districts shall ensure
that special education students as a class receive their full share of
the general apportionment allocation accruing through sections 502 and
504 of this act. To the extent a school district cannot provide an
appropriate education for special education students under chapter
28A.155 RCW through the general apportionment allocation, it shall
provide services through the special education excess cost allocation
funded in this section.
(2)(a) The superintendent of public instruction shall ensure that:
(i) Special education students are basic education students first;
(ii) As a class, special education students are entitled to the
full basic education allocation; and
(iii) Special education students are basic education students for
the entire school day.
(b) The superintendent of public instruction shall continue to
implement the full cost method of excess cost accounting, as designed
by the committee and recommended by the superintendent, pursuant to
section 501(1)(k), chapter 372, Laws of 2006.
(3) Each fiscal year appropriation includes such funds as are
necessary to complete the school year ending in the fiscal year and for
prior fiscal year adjustments.
(4)(a) For the 2013-14 and 2014-15 school years, the superintendent
shall allocate funding to school district programs for special
education students as provided in RCW 28A.150.390.
(b) From July 1, 2013 to August 31, 2013, the superintendent shall
allocate funding to school district programs for special education
students as provided in section 507, chapter 50, Laws of 2011 1st sp.
sess., as amended through section 507 of the 2013 omnibus supplemental
operating appropriations act.
(5) The following applies throughout this section: The definitions
for enrollment and enrollment percent are as specified in RCW
28A.150.390(3). Each district's general fund -- state funded special
education enrollment shall be the lesser of the district's actual
enrollment percent or 12.7 percent.
(6) At the request of any interdistrict cooperative of at least 15
districts in which all excess cost services for special education
students of the districts are provided by the cooperative, the maximum
enrollment percent shall be calculated in accordance with RCW
28A.150.390(3) (c) and (d), and shall be calculated in the aggregate
rather than individual district units. For purposes of this
subsection, the average basic education allocation per full-time
equivalent student shall be calculated in the aggregate rather than
individual district units.
(7) $34,227,000 of the general fund -- state appropriation for fiscal
year 2014, $35,592,000 of the general fund -- state appropriation for
fiscal year 2015, and $29,574,000 of the general fund -- federal
appropriation are provided solely for safety net awards for districts
with demonstrated needs for special education funding beyond the
amounts provided in subsection (4) of this section. If the federal
safety net awards based on the federal eligibility threshold exceed the
federal appropriation in this subsection (7) in any fiscal year, the
superintendent shall expend all available federal discretionary funds
necessary to meet this need. At the conclusion of each school year,
the superintendent shall recover safety net funds that were distributed
prospectively but for which districts were not subsequently eligible.
(a) For the 2013-14 and 2014-15 school years, safety net funds
shall be awarded by the state safety net oversight committee as
provided in section 109(1) chapter 548, Laws of 2009 (ESHB 2261).
(b) The office of the superintendent of public instruction shall
make award determinations for state safety net funding in August of
each school year. Determinations on school district eligibility for
state safety net awards shall be based on analysis of actual
expenditure data from the current school year.
(8) A maximum of $678,000 may be expended from the general fund -- state appropriations to fund 5.43 full-time equivalent teachers and 2.1
full-time equivalent aides at children's orthopedic hospital and
medical center. This amount is in lieu of money provided through the
home and hospital allocation and the special education program.
(9) The superintendent shall maintain the percentage of federal
flow-through to school districts at 85 percent. In addition to other
purposes, school districts may use increased federal funds for high-cost students, for purchasing regional special education services from
educational service districts, and for staff development activities
particularly relating to inclusion issues.
(10) A school district may carry over from one year to the next
year up to 10 percent of the general fund -- state funds allocated under
this program; however, carryover funds shall be expended in the special
education program.
(11) $252,000 of the general fund -- state appropriation for fiscal
year 2014 and $252,000 of the general fund -- state appropriation for
fiscal year 2015 are provided solely for two additional full-time
equivalent staff to support the work of the safety net committee and to
provide training and support to districts applying for safety net
awards.
(12) $50,000 of the general fund -- state appropriation for fiscal
year 2014, $50,000 of the general fund -- state appropriation for fiscal
year 2015, and $100,000 of the general fund -- federal appropriation
shall be expended to support a special education ombudsman program
within the office of superintendent of public instruction.
Sec. 217 2013 1st sp.s. c ... (HB 1057) s 509 (uncodified) is
amended to read as follows:
FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION -- FOR LOCAL EFFORT
ASSISTANCE
General Fund -- State Appropriation (FY 2014) . . . . . . . . . . . . $309,436,000
General Fund -- State Appropriation (FY 2015) . . . . . . . . . . . . $334,289,000
Education Legacy Trust Account--State Appropriation . . . . . . . . . . . . $835,000
TOTAL APPROPRIATION . . . . . . . . . . . . (($643,725,000))
$644,560,000
The appropriations in this section are subject to the following
conditions and limitations: For purposes of RCW 84.52.0531, the
increase per full-time equivalent student is 5.0 percent from the 2012-13 school year to the 2013-14 school year and 5.0 percent from the
2013-14 school year to the 2014-15 school year.
Sec. 218 2013 1st sp.s. c ... (HB 1057) s 511 (uncodified) is
amended to read as follows:
FOR PROGRAMS FOR HIGHLY CAPABLE STUDENTS
General Fund -- State Appropriation (FY 2014) . . . . . . . . . . . . $9,377,000
General Fund -- State Appropriation (FY 2015) . . . . . . . . . . . . $9,696,000
Education Legacy Trust Account--State Appropriation . . . . . . . . . . . . $34,000
TOTAL APPROPRIATION . . . . . . . . . . . . (($19,073,000))
$19,107,000
The appropriations in this section are subject to the following
conditions and limitations:
(1) Each general fund fiscal year appropriation includes such funds
as are necessary to complete the school year ending in the fiscal year
and for prior fiscal year adjustments.
(2)(a) For the 2013-14 and 2014-15 school years, the superintendent
shall allocate funding to school district programs for highly capable
students as provided in RCW 28A.150.260(10)(c). In calculating the
allocations, the superintendent shall assume the following: (i)
Additional instruction of 2.1590 hours per week per funded highly
capable program student; (ii) fifteen highly capable program students
per teacher; (iii) 36 instructional weeks per year; (iv) 900
instructional hours per teacher; and (v) the district's average staff
mix and compensation rates as provided in sections 503 and 504 of this
act.
(b) From July 1, 2013, to August 31, 2013, the superintendent shall
allocate funding to school districts programs for highly capable
students as provided in section 511, chapter 50, Laws of 2011 1st sp.
sess., as amended through section 511 of the 2013 omnibus supplemental
operating appropriations act.
(3) $85,000 of the general fund -- state appropriation for fiscal
year 2014 and $85,000 of the general fund -- state appropriation for
fiscal year 2015 are provided solely for the centrum program at Fort
Worden state park.
Sec. 219 2013 1st sp.s. c ... (HB 1057) s 514 (uncodified) is
amended to read as follows:
FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION -- FOR TRANSITIONAL
BILINGUAL PROGRAMS
General Fund -- State Appropriation (FY 2014) . . . . . . . . . . . . $89,123,000
General Fund -- State Appropriation (FY 2015) . . . . . . . . . . . . $95,248,000
General Fund -- Federal Appropriation . . . . . . . . . . . . $71,016,000
Education Legacy Trust Account--State Appropriation . . . . . . . . . . . . $12,869,000
TOTAL APPROPRIATION . . . . . . . . . . . . (($255,387,000))
$268,256,000
The appropriations in this section are subject to the following
conditions and limitations:
(1) Each general fund fiscal year appropriation includes such funds
as are necessary to complete the school year ending in the fiscal year
and for prior fiscal year adjustments.
(2)(a) For the 2013-14 and 2014-15 school years, the superintendent
shall allocate funding to school districts for transitional bilingual
programs as provided in RCW 28A.150.260(10)(b). In calculating the
allocations, the superintendent shall assume the following averages:
(i) Additional instruction of 4.7780 hours per week per transitional
bilingual program student in grades kindergarten through six in school
years 2013-14 and 2014-15; (ii) additional instruction of ((4.7780))
5.1850 hours per week in school year 2013-14 and ((4.7780 hours per
week in)) school year 2014-15 per transitional bilingual program
student in grades seven through eight; (iii) additional instruction of
((4.7780)) 5.8520 hours per week in school year 2013-14 and ((4.7780
hours per week in)) school year 2014-15 per transitional bilingual
program student in grades nine through twelve; (iv) additional
instruction of 1.0000 hours per week in school year 2013-14 for the
head count number of students who have exited the transitional
bilingual instruction program within the previous school year based on
their performance on the English proficiency assessment; (v) additional
instruction of 1.0000 hours per week in school year 2014-15 for the
head count number of students who have exited the transitional
bilingual instruction program within the previous two years based on
their performance on the English proficiency assessment; (vi) fifteen
transitional bilingual program students per teacher; (((v))) (vii) 36
instructional weeks per year; (((vi))) (viii) 900 instructional hours
per teacher; and (((vii))) (ix) the district's average staff mix and
compensation rates as provided in sections 503 and 504 of this act.
(b) From July 1, 2013, to August 31, 2013, the superintendent shall
allocate funding to school districts for transitional bilingual
instruction programs as provided in section 514, chapter 50, Laws of
2011 1st sp. sess., as amended through section 512 of the 2013 omnibus
supplemental operating appropriations act.
(3) The superintendent may withhold allocations to school districts
in subsection (2) of this section solely for the central provision of
assessments as provided in RCW 28A.180.090 (1) and (2) up to the
following amounts: 1.86 percent for school year 2013-14 and 1.79
percent for school year 2014-15.
(4) The general fund -- federal appropriation in this section is for
migrant education under Title I Part C and English language
acquisition, and language enhancement grants under Title III of the
elementary and secondary education act.
(5) $35,000 of the general fund -- state appropriation for fiscal
year 2014 and $35,000 of the general fund -- state appropriation for
fiscal year 2015 are provided solely to track current and former
transitional bilingual program students.
Sec. 220 2013 1st sp.s. c ... (HB 1057) s 515 (uncodified) is
amended to read as follows:
FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION -- FOR THE LEARNING
ASSISTANCE PROGRAM
General Fund -- State Appropriation (FY 2014) . . . . . . . . . . . . $158,963,000
General Fund -- State Appropriation (FY 2015) . . . . . . . . . . . . $175,003,000
General Fund -- Federal Appropriation . . . . . . . . . . . . $448,434,000
Education Legacy Trust Account--State Appropriation . . . . . . . . . . . . $275,000
TOTAL APPROPRIATION . . . . . . . . . . . . (($782,400,000))
$782,675,000
The appropriations in this section are subject to the following
conditions and limitations:
(1) The general fund -- state appropriations in this section are
subject to the following conditions and limitations:
(a) The appropriations include such funds as are necessary to
complete the school year ending in the fiscal year and for prior fiscal
year adjustments.
(b)(i) For the 2013-14 and 2014-15 school years, the superintendent
shall allocate funding to school districts for learning assistance
programs as provided in RCW 28A.150.260(10)(a). In calculating the
allocations, the superintendent shall assume the following averages:
(A) Additional instruction of 1.9200 hours per week per funded learning
assistance program student for the 2013-14 school year and the 2014-15
school year; (B) fifteen learning assistance program students per
teacher; (C) 36 instructional weeks per year; (D) 900 instructional
hours per teacher; and (E) the district's average staff mix and
compensation rates as provided in sections 503 and 504 of this act.
(ii) From July 1, 2013, to August 31, 2013, the superintendent
shall allocate funding to school districts for learning assistance
programs as provided in section 515, chapter 50, Laws of 2011 1st sp.
sess., as amended through section 513 of the 2013 omnibus supplemental
operating appropriations act.
(c) A school district's funded students for the learning assistance
program shall be the sum of the district's full-time equivalent
enrollment in grades K-12 for the prior school year multiplied by the
district's percentage of October headcount enrollment in grades K-12
eligible for free or reduced price lunch in the prior school year.
(2) Allocations made pursuant to subsection (1) of this section
shall be adjusted to reflect ineligible applications identified through
the annual income verification process required by the national school
lunch program, as recommended in the report of the state auditor on the
learning assistance program dated February, 2010.
(3) The general fund -- federal appropriation in this section is
provided for Title I Part A allocations of the no child left behind act
of 2001.
(4) A school district may carry over from one year to the next up
to 10 percent of the general fund--state funds allocated under this
program; however, carryover funds shall be expended for the learning
assistance program.
NEW SECTION. Sec. 301 A new section is added to chapter 82.32
RCW to read as follows:
(1) By the last workday of the second and fourth calendar quarters,
the state treasurer must transfer the amount specified in subsection
(2) of this section from the general fund to the education legacy trust
account. The first transfer under this subsection (1) must occur by
December 31, 2013.
(2) By December 15th and by June 15th of each year, the department
must estimate the increase in state general fund revenues from the
changes made under part I of this act for the current and prior
calendar quarters and notify the state treasurer of the increase.
NEW SECTION. Sec. 302 A new section is added to chapter 43.135
RCW to read as follows:
RCW 43.135.034(4) does not apply to the transfers under section 301
of this act.
NEW SECTION. Sec. 303 A new section is added to chapter 39.42
RCW to read as follows:
The purpose of repealing or narrowing tax preferences in part I of
this act is to support education-related expenditures from the
education legacy trust account. For this reason, general state
revenues transferred to the education legacy trust account under
section 301 of this act are excluded from the calculation of general
state revenues for purposes of Article VIII, section 1 of the state
Constitution and RCW 39.42.130 and 39.42.140.
NEW SECTION. Sec. 401 (1) Except as otherwise provided in this
section, 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 July 1, 2013.
(2) Sections 101, 103 through 109, 112, and 113 of this act are
necessary for the immediate preservation of the public peace, health,
or safety, or support of the state government and its existing public
institutions, and take effect August 1, 2013.
(3) Sections 209 through 214 of this act are necessary for the
immediate preservation of the public peace, health, or safety, or
support of the state government and its existing public institutions,
and take effect September 1, 2013.
NEW SECTION. Sec. 402 Section 102 of this act takes effect July
1, 2015.
NEW SECTION. Sec. 403 Section 101 of this act expires July 1,
2015.