S-4259

AN ACT Relating to business incentive disclosure; adding new sections to chapter 82.32 RCW; adding a new section to chapter 82.04 RCW; adding new sections to chapter 82.08 RCW; adding new sections to chapter 82.12 RCW; adding a new section to chapter 82.60 RCW; adding a new section to chapter 82.62 RCW; adding a new section to chapter 82.63 RCW; and creating a new section.

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

NEW SECTION. Sec. 1. The definitions in this section apply throughout sections 1 through 12 of this act unless the context clearly requires otherwise.

(1) "Business incentive" or "incentive" means a tax credit, tax deferral, or tax exemption taken by or provided to a recipient under:

(a) Chapter 82.60, 82.62, or 82.63 RCW; or

(b) RCW 82.04.4452, 82.04.44525, 82.04.4456, 82.04.4457, 82.08.02565, 82.08.820, 82.12.02565, or 82.12.820.

(2) "Employee benefits" means employer-provided health or medical insurance, vacation or sick leave, and pension or retirement benefits.

(3) "Recipient" means any for-profit business entity that receives a business incentive.

(4) "Wage bands" means the following five groupings of wage rates: (a) Up to state minimum wage plus two dollars per hour; (b) between state minimum wage plus two dollars and one cent to state minimum wage plus four dollars per hour; (c) between state minimum wage plus four dollars and one cent to state minimum wage plus six dollars per hour; (d) between state minimum wage plus six dollars and one cent to state minimum wage plus eight dollars per hour; (e) between state minimum wage plus eight dollars and one cent to state minimum wage plus ten dollars; and (f) greater than state minimum wage plus ten dollars per hour.

NEW SECTION. Sec. 2. (1) A recipient who during a calendar year has taken an exemption, credit, or deferral identified as a business incentive in this act must report as required by this section.

(2) The department of revenue shall collect information on the exemption under RCW 82.08.02565 and 82.12.02565 using a statistical sampling of recipients, rather than by a recipient report under subsection (1) of this section.

(3) The department of revenue shall develop a business incentive disclosure statement and make it available electronically and in paper form and shall provide a copy to all affected recipients.

(4) The department may request information necessary for the legislature to evaluate the effectiveness of the business incentives, such as the value of the incentive, net new jobs created as a result of the incentive, and the average hourly wages of net new jobs created.

(5)(a) The department of revenue shall provide a business incentive disclosure report to the appropriate committees of the legislature by September 1st of each year and shall post a copy of the report on the department web site.

(b) The report shall include a compilation and a summary of the data gathered under this section. In addition, the report shall include a breakdown of the data by geographic area and by industry, as well as wage bands, benefits, job classification, and hiring levels. After September 1, 2004, the report shall include a section comparing the data over time.

(c) The report shall also include specific recommendations on whether the definition of business incentives identified in section 1 of this act should be expanded or contracted based on the department's experience in producing the report and based on changes in statutes.

(6) The confidentiality provisions of RCW 82.32.330 do not apply to the business incentive disclosure statement received by the department of revenue under this section or to any survey data gathered under this section and the business incentive disclosure statement and any data may be disclosed to the public.

NEW SECTION. Sec. 3. A new section is added to chapter 82.04 RCW to read as follows:

In addition to any other reporting requirements under this chapter, a recipient taking a credit under RCW 82.04.4452, 82.04.44525, 82.04.4456, or 82.04.4457 must complete and return the business incentive disclosure statement in section 2 of this act to the department of revenue by March 1st of each year. As used in this section, "recipient" has the same meaning as in section 1 of this act.

NEW SECTION. Sec. 4. A new section is added to chapter 82.08 RCW to read as follows:

In addition to any other reporting requirements under RCW 82.08.820, a recipient taking the exemption under RCW 82.08.820 must complete and return the business incentive disclosure statement in section 2 of this act to the department of revenue by March 1st of each year. As used in this section, "recipient" has the same meaning as in section 1 of this act.

NEW SECTION. Sec. 5. A new section is added to chapter 82.08 RCW to read as follows:

In addition to any other reporting requirements under RCW 82.08.02565, a recipient taking the exemption as under RCW 82.08.02565 must, if asked in writing by the department of revenue, participate in a statistical sampling conducted under section 2 of this act. As used in this section, "recipient" has the same meaning as in section 1 of this act.

NEW SECTION. Sec. 6. A new section is added to chapter 82.12 RCW to read as follows:

In addition to any other reporting requirements under RCW 82.12.820, a recipient taking the exemption under RCW 82.12.820 must complete and return the business incentive disclosure statement in section 2 of this act to the department of revenue by March 1st of each year. As used in this section, "recipient" has the same meaning as in section 1 of this act.

NEW SECTION. Sec. 7. A new section is added to chapter 82.12 RCW to read as follows:

In addition to any other reporting requirements under RCW 82.12.02565, a recipient taking the exemption as a credit under RCW 82.12.02565 must, if asked in writing by the department of revenue, participate in a statistical sampling conducted under section 2 of this act. As used in this section, "recipient" has the same meaning as in section 1 of this act.

NEW SECTION. Sec. 8. A new section is added to chapter 82.60 RCW to read as follows:

In addition to any other requirements under this chapter, a recipient participating in the deferral program under this chapter must complete and return the business incentive disclosure statement in section 2 of this act to the department of revenue by March 1st of each year. As used in this section, "recipient" has the same meaning as in section 1 of this act.

NEW SECTION. Sec. 9. A new section is added to chapter 82.62 RCW to read as follows:

In addition to any other requirements under this chapter, a recipient taking the credit under this chapter must complete and return the business incentive disclosure statement in section 2 of this act to the department of revenue by March 1st of each year. As used in this section, "recipient" has the same meaning as in section 1 of this act.

NEW SECTION. Sec. 10. A new section is added to chapter 82.63 RCW to read as follows:

NEW SECTION. Sec. 11. Sections 1 and 2 of this act are each added to chapter 82.32 RCW.

NEW SECTION. Sec. 12. This act applies to all business incentives granted, received, or taken during calendar year 2002 and thereafter.