5468-S2.E AMH TEH AMH-51

5468-S2.E AME TEH AMH-51

E2SSB 5468 - H COMM AMD

By Committee on Trade, Economic Development & Housing

ADOPTED AS AMENDED 3/3/94

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. The legislature finds that when public funds are used to support private enterprise, the public may gain through the creation of new jobs, the diversification of the economy, or higher quality jobs for existing workers. The legislature further finds that such returns on public investments are not automatic and that tax-based incentives, in particular, may result in a greater tax burden on businesses and individuals that are not eligible for the public support. It is the purpose of this chapter to collect information sufficient to allow the legislature and the executive branch to make informed decisions about the merits of existing tax-based incentives and loan programs intended to encourage economic development in the state.

NEW SECTION. Sec. 2. (1) The department of revenue and the department of community, trade, and economic development shall gather such baseline data as is necessary to measure the effect on businesses of any of the following benefits: (a) A loan of one hundred thousand dollars or more from the development loan fund; (b) fifty thousand dollars or more in tax credits under chapter 82.62 RCW or chapter . . . (House Bill No. 2663), Laws of 1994; or (c) a deferral of one hundred thousand dollars or more in taxes under chapter 82.60 or 82.61 RCW, or chapter . . . (House Bill No. 2663), Laws of 1994. The departments shall measure the effect of the programs on job creation, the number of jobs created for Washington residents, company growth, the introduction of new products, the diversification of the state's economy, growth in investments, the movement of firms or the consolidation of firms' operation into the state, and such other factors as the departments select.

(2) The departments shall also measure whether the businesses receiving the benefits: (a) Have complied with federal and state requirements for affirmative action in hiring and promotion of its employees; (b) have provided an average wage that is above the average wage paid by firms located in the same county that share the same two-digit standard industrial code; (c) have provided basic health coverage at a level at least equivalent to basic health coverage under chapter 70.47 RCW; (d) have complied with all applicable federal and state environmental and employment laws and regulations; and (e) have complied with the requirements of all federal and state plant closure laws if reducing operations at a facility or relocating a facility.

(3) Businesses applying for one of the benefits specified in subsection (1) of this section shall submit employment impact estimates to the departments specifying the number and types of jobs, with wage rates and benefits for those jobs, that the business submitting the application expects to be eliminated, created, or retained on the project site and on other employment sites of the business in Washington as a result of the project that is the subject of the application.

(4) The departments shall specify that upon a certain date or dates, the businesses which receive one of the benefits specified in subsection (1) of this section shall submit to the department an employment impact statement stating the net number and types of jobs eliminated, created, or retained, with the wage rates and benefits for those jobs, by the business in Washington as a result of the benefit received.

(5) The information collected on individual businesses under this section is not subject to public disclosure.

(6) The departments shall report their findings to the executive-legislative committee on economic development policy, or the appropriate legislative committees, if the executive-legislative committee on economic development policy is not created by statute, by September 1, 1995. The report shall provide aggregate information on businesses that share the same two-digit standard industrial code.

(7) The executive-legislative committee on economic development policy shall evaluate the departments' report and make recommendations to the governor and the legislature on the continuation of the benefit programs and any conditions under which they should operate if they are to continue.

NEW SECTION. Sec. 3. Sections 1 and 2 of this act shall constitute a new chapter in Title 43 RCW.

NEW SECTION. Sec. 4. 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 shall take effect March 1, 1994."