H-0985.1 _______________________________________________
HOUSE BILL 1687
_______________________________________________
State of Washington 56th Legislature 1999 Regular Session
By Representatives Kessler, DeBolt, Mulliken, Doumit, Crouse, Alexander, Schindler, McMorris, Sump, Boldt, Haigh, Hatfield, Clements, Schoesler, B. Chandler, Cox, G. Chandler, Hankins, Delvin, Linville, Wolfe, Cooper, Radcliff, Mastin, Murray, Lisk, Skinner, Morris, Koster and Parlette
Read first time 02/02/1999. Referred to Committee on Economic Development, Housing & Trade.
AN ACT Relating to revolving funds for electric utilities serving rural areas to enhance local rural economic development activities; adding a new section to chapter 82.16 RCW; and creating new sections.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. The legislature finds that it is necessary to employ multiple approaches to revitalize the economy of Washington state's rural areas. The legislature also finds that where possible, Washington state should develop programs which can compliment other private, state, and federal programs. It is the intent of this act to compliment such rural economic development efforts by creating a public utility tax offset program to help establish locally based electric utility revolving fund programs to be used for economic development and job creation.
NEW SECTION. Sec. 2. A new section is added to chapter 82.16 RCW to read as follows:
(1) The following definitions apply to this section:
(a) "Qualifying project" means a project designed to achieve job creation or business retention, to add or upgrade nonelectrical infrastructure, to add or upgrade health and safety facilities, including low-income housing, or to add or upgrade emergency services in any designated qualifying rural area.
(b) "Qualifying rural area" means any geographic area of the state, including counties and parts thereof, where the local electric utility serves twenty-five or fewer meters per mile of distribution line, or where a municipal utility serves in a county that is classified by the United States census bureau as rural, or any county that is considered by the state or federal government to be economically disadvantaged based on low per capita income or high unemployment.
(c) "Electric utility rural economic development revolving fund" means a fund devoted exclusively to funding qualifying projects in qualifying rural areas.
(d) "Local board" is a board of directors with at least, but not limited to, three members who have been appointed by the sponsoring electric utility to oversee and direct the activities of the electric utility rural economic development revolving fund.
(2) Any light and power business subject to the provisions of this chapter shall be granted a fifty percent credit against the taxes imposed under this chapter, for contributions made directly to an electric utility rural economic development revolving fund, not to exceed one hundred thousand dollars per electric utility in any calendar year.
(3) The right to claim tax credits under this section expires December 31, 2005. However any credits claimed prior to that date remain available for use indefinitely, subject to restrictions set forth in subsection (6) of this section.
(4) To qualify for the credit in subsection (2) of this section, the light and power business shall establish an electric utility rural economic development revolving fund which is governed by a local board whose members shall reside in the qualifying rural area served by the light and power business. The local board shall have authority to determine all criteria and conditions for the expenditure of funds from the electric utility rural economic development fund, and for the terms and conditions of repayment.
(5) Any funds repaid to the electric utility rural economic development fund by recipients shall be made available for additional qualifying projects.
(6) If at any time the electric utility rural economic development fund is dissolved, any moneys claimed as a tax credit under this section shall either be granted to a qualifying project or refunded to the state within two years of termination.
NEW SECTION. Sec. 3. The department of revenue shall adopt any rules necessary to implement the provisions of this act.
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