H-3809              _______________________________________________

                                                   HOUSE BILL NO. 2837

                        _______________________________________________

State of Washington                               51st Legislature                              1990 Regular Session

By Representatives Betrozoff, H. Sommers, Holland, Peery, Walker, Pruitt, Winsley, Doty and Miller

Read first time 1/24/90 and referred to Committee on Capital Facilities & Financing.

AN ACT Relating to a dedicated revenue source for financing common  school education construction; adding a new section to chapter 82.32 RCW; and creating new sections.

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

NEW SECTION. Sec. 1.     There is a significant and growing backlog in common school construction projects.  These projects have been approved by local communities, but state matching funds are not available.   Therefore, the legislature finds it necessary to supplement existing revenues with an additional source of revenue to finance needed and approved common educational facilities.

          It is the intent of the legislature, should congress pass legislation similar to the "Brooks" bill, which substitutes an "economic presence" test for the "physical presence" test for out-of-state businesses that do direct marketing, mail order, and other like business in this state, to dedicate this additional revenue to common school construction projects.

          It is further the legislature's intent that the department of revenue will work cooperatively with the retail industry in this state when developing the administrative rules necessary for the implementation of the new revenue source for education.

NEW SECTION. Sec. 2.  A new section is added to chapter 82.32 RCW to read as follows:

          (1) The intent of this section is to provide a dedicated revenue source for education construction purposes. Since it is not practical to determine precisely the revenues derived from the collection of tax on mail order, direct marketing, and other like sources  a fixed percentage of all sales and use taxes shall be dedicated in lieu thereof.

          (2) On or before January 1 of each year, the department of revenue shall provide the legislature with an updated estimate of the percentage of sales tax revenues attributable to retail sales from mail order, direct marketing, and other like sources.

          (3) The common school education construction account is created in the state treasury.  One and five-tenths percent of all receipts from the taxes imposed in RCW 82.08.020 and 82.12.020 shall be deposited in the account.  Expenditures from the account may be used only for the purpose of acquisition, construction, alteration, repair, or equipping of facilities for the common schools.    The moneys in this account shall not be used for debt service payments nor shall they be used to incur state indebtedness.

          (4) The dedication under subsection (1) of this section shall continue as long as the common schools continue to need the additional revenue for construction.  The superintendent of public instruction shall report annually to the appropriate committees of the senate and house of representatives regarding the status of common school construction funding.

NEW SECTION. Sec. 3.     If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 4.     This act shall take effect when congress enacts the "Brooks" bill or legislation similar to the "Brooks" bill.