S‑2306.2      _____________________________________________

SECOND SUBSTITUTE SENATE BILL 5540

           _____________________________________________

State of Washington      57th Legislature     2001 Regular Session

By Senate Committee on Ways & Means (originally sponsored by Senators Franklin, Eide, Regala, Fraser, Costa, Rasmussen, Patterson, Kline, Kohl‑Welles, Winsley and Gardner; by request of Governor Locke)

READ FIRST TIME 03/27/01. 

_1      AN ACT Relating to public utility tax credits for home energy

_2  assistance programs for low-income households; amending RCW

_3  74.38.070; and adding a new section to chapter 82.16 RCW.

_4  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

_5      NEW SECTION. Sec. 1.  A new section is added to chapter 82.16

_6  RCW to read as follows:

_7      (1) Unless the context clearly requires otherwise, the

_8  definitions in this subsection apply throughout this section.

_9      (a) "Base credit" means the maximum amount of credit against

10  the tax imposed by this chapter that each light and power business

11  or gas distribution business may take each fiscal year as

12  calculated by the department.  The base credit is equal to the

13  proportionate share that the total grants received by each light

14  and power business or gas distribution business in the prior

15  fiscal year bears to the total grants received by all light and

16  power businesses and gas distribution businesses in the prior

17  fiscal year multiplied by two million five hundred thousand

18  dollars.

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_1      (b) "Billing discount" means a reduction in the amount charged

_2  for providing service to qualifying persons in Washington made by

_3  a light and power business or a gas distribution business.  Billing

_4  discount does not include grants received by the light and power

_5  business or a gas distribution business.

_6      (c) "Grant" means funds provided to a light and power business

_7  or gas distribution business by the department of community,

_8  trade, and economic development or by a qualifying organization.

_9      (d) "Low-income home energy assistance program" means energy

10  assistance programs for low-income households as defined on

11  December 31, 2000, in the low-income home energy assistance act of

12  1981 as amended August 1, 1999, 42 U.S.C. Sec. 8623 et seq.

13      (e) "Qualifying person" means a Washington resident who applies

14  for assistance and qualifies for a grant regardless of whether

15  that person receives a grant.

16      (f) "Qualifying contribution" means money given by a light and

17  power business or a gas distribution business to a qualifying

18  organization, exclusive of money received in the prior fiscal year

19  from its customers for the purpose of assisting other customers.

20      (g) "Qualifying organization" means an entity that has a

21  contractual agreement with the department of community, trade, and

22  economic development to administer in a specified service area low-

23  income home energy assistance funds received from the federal

24  government and such other funds that may be received by the

25  entity.

26      (2) Subject to the limitations in this section, a light and

27  power business or a gas distribution business may take a credit

28  each fiscal year against the tax imposed under this chapter for

29  qualifying contributions that are equal to or greater than one

30  hundred twenty-five percent of the qualifying contributions given

31  in fiscal year 2000 and for billing discounts that are equal to or

32  greater than one hundred twenty-five percent of the billing

33  discounts given in fiscal year 2000.  If no billing discounts were

34  given in fiscal year 2000 a credit shall be allowed on any billing

35  discounts given in any subsequent fiscal year.  Thereafter, credit

36  shall be allowed on billing discounts given that are equal to or

37  greater than one hundred twenty-five percent of the billing

38  discounts given in the first fiscal year such billing discounts

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_1  are given.  The amount of credit shall be fifty percent of the total

_2  billing discounts and qualifying contributions, limited to the

_3  base credit for the same fiscal year.

_4      (3) The total amount of credit, statewide, that may be taken in

_5  any fiscal year shall not exceed one million five hundred thousand

_6  dollars.  By May 1st of each year starting in 2002, the department

_7  of community, trade, and economic development shall notify the

_8  department of revenue in writing of the grants received in the

_9  current fiscal year by each light and power business and gas

10  distribution business.

11      (4)(a) Not later than June 1st of each year beginning in 2002,

12  the department shall publish the base credit for each light and

13  power business and gas distribution business for the next fiscal

14  year.

15      (b) Not later than July 1st of each year beginning in 2002,

16  application for credit must by made to the department including

17  but not limited to the following information:  Billing discounts

18  given by the applicant in fiscal year 2000; qualifying

19  contributions given by the applicant in the prior fiscal year; the

20  amount of money received in the prior fiscal year from customers

21  for the purpose of assisting other customers; the base credit for

22  the next fiscal year for the applicant; the qualifying

23  contributions anticipated to be given in the next fiscal year; and

24  billing discounts anticipated to be given in the next fiscal

25  year.  No credit under this section will be allowed to a light and

26  power business or gas distribution business that does not file the

27  application by July 1st.

28      (c) Not later than August 1st of each year beginning in 2002,

29  the department shall notify each applicant of the amount of credit

30  that may be taken in that fiscal year.

31      (d) The balance of base credits not used by other light and

32  power businesses and gas distribution businesses shall be ratably

33  distributed to applicants under the formula in subsection (1)(a)

34  of this section.  The total amount of credit that may be taken by an

35  applicant is the base credit plus any ratable portion of unused

36  base credit.

37      (5) The credit taken under this section is limited to the

38  amount of tax imposed under this chapter for the fiscal year.  The

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_1  credit must be claimed in the fiscal year in which the billing

_2  reduction is made.  Any unused credit expires.  Refunds shall not be

_3  given in place of credits.

_4      (6) No credit may be taken for billing discounts made before

_5  July 1, 2001.  Within two weeks of the effective date of this

_6  section, the department of community, trade, and economic

_7  development shall notify the department of revenue in writing of

_8  the grants received in fiscal year 2001 by each light and power

_9  business and gas distribution business.  Within four weeks of the

10  effective date of this section, the department of revenue shall

11  publish the base credit for each light and power business and gas

12  distribution business for fiscal year 2002.  Within eight weeks of

13  the effective date of this section, application to the department

14  must be made showing the information required in subsection (4)(b)

15  of this section.  Within twelve weeks of the effective date of this

16  section, the department shall notify each applicant of the amount

17  of credit that may be taken in fiscal year 2002.

18      Sec. 2.  RCW 74.38.070 and 1998 c 300 s 8 are each amended to read

19  as follows:

20      (1) Notwithstanding any other provision of law, any county,

21  city, town, municipal corporation, or quasi municipal corporation

22  providing utility services may provide such services at reduced

23  rates for low income senior citizens or other low-income

24  citizens:  PROVIDED, That, for the purposes of this section, "low-

25  income senior citizen" or "other low-income citizen" shall be

26  defined by appropriate ordinance or resolution adopted by the

27  governing body of the county, city, town, municipal corporation,

28  or quasi municipal corporation providing the utility services

29  except as provided in subsection (2) of this section.  Any

30  reduction in rates granted in whatever manner to low-income senior

31  citizens or other low-income citizens in one part of a service

32  area shall be uniformly extended to low-income senior citizens or

33  other low-income citizens in all other parts of the service area.

34      (2) For purposes of implementing this section by any public

35  utility district, (a) "low-income senior citizen" means a person

36  who is sixty-two years of age or older and whose total income,

37  including that of his or her spouse or cotenant, does not exceed

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_1  the amount specified in RCW 84.36.381(5)(b), ((as now or hereafter

_2  amended)) and (b) "other low-income citizen" means a person within

_3  the defined group established by appropriate ordinance or

_4  resolution as provided in subsection (1) of this section whose

_5  household income does not exceed the amount specified in RCW

_6  70.164.020(4).

‑‑‑ END ‑‑‑

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