Z-1459.1  _______________________________________________

                          HOUSE BILL 2941

          _______________________________________________

State of Washington      57th Legislature     2002 Regular Session

By Representatives Delvin, Hankins, Grant and Kessler

Read first time 02/11/2002.  Referred to Committee on Finance.

Creating a special impact mitigation program to offset the impact of construction of a nuclear waste treatment and immobilization plant.

    AN ACT Relating to creating a special impact mitigation assistance program to offset the impact of the construction of a nuclear waste treatment and immobilization plant; adding a new section to chapter 82.32 RCW; adding a new section to chapter 70.99 RCW; creating a new section; and providing an effective date.

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

NEW SECTION. Sec. 1.  The legislature recognizes the fiscal impact the proposed nuclear waste treatment and immobilization plant at Hanford will have on local government operations from the influx of thousands of workers constructing the plant.  The legislature further recognizes that the facility will be located on federal land, which is exempt from property taxation.  Therefore, the local governments have limited tax sources to offset these increased costs.  It is the intent of the legislature to create a special impact mitigation assistance program funded by a portion of the state business and occupation tax collected from the prime contractor on the construction of the project.

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

    (1) As provided in subsection (2) of this section, the business and occupation tax imposed under chapter 82.04 RCW and remitted by the prime contractor responsible for the construction and/or commissioning of a nuclear waste treatment and immobilization plant shall be deposited into the nuclear waste mitigation account created in section 3 of this act.

    (2)(a) Beginning July 1, 2002, and ending no later than December 31, 2012, the department shall, on a quarterly basis, transmit the tax proceeds under subsection (1) of this section to the state treasurer who shall deposit them into the nuclear waste mitigation account.

    (b) Distributions under this section may not exceed two million dollars in any one year.  Total distributions may not exceed ten million dollars.

    (c) The distribution under this section shall be made based on an estimate of the tax remitted to the department by the prime contractor that is attributable to the contract for construction and/or commissioning of a nuclear waste treatment and immobilization plant.  The estimate shall be done using information obtained from the United States department of energy and from the affected taxpayer.

NEW SECTION. Sec. 3.  A new section is added to chapter 70.99 RCW to read as follows:

    The nuclear waste mitigation account is created in the custody of the state treasurer.  Receipts from section 2 of this act must be deposited into the account.  The state treasurer shall annually distribute the money in the account to the county or counties where construction takes place.  Money received by a county or counties must be distributed by the county or counties to local governments using a formula devised by the Hanford communities organization, created pursuant to interlocal agreement under chapter 39.34 RCW.  Only the state treasurer may authorize the annual distributions from this account.  The account is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.  Notwithstanding the provisions of RCW 43.84.092, investment earnings on the funds shall be deposited into the nuclear waste mitigation account.

NEW SECTION. Sec. 4.  This act takes effect July 1, 2002.

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