6809-S.E AMH FIN H5928.1

ESSB 6809  - H COMM AMD
     By Committee on Finance

NOT ADOPTED 03/06/2008

     On page 2, beginning on line 25, strike subsection (4) and insert the following:
     "(4) For any fiscal year, a person may not claim the working families' tax exemption authorized under this section unless the exemption has been approved by the legislature in accordance with section 4 of this act."

     On page 3, line 6, after "2009" insert ", and for every year thereafter, application shall be made between June 30th and January 1st"

     On page 3, after line 34, insert the following:

"NEW SECTION.  Sec. 4   A new section is added to chapter 82.32 RCW to read as follows:
     (1) A person may not claim the working families' tax exemption under section 2 of this act unless a bill, separate and distinct from the state omnibus appropriations act, has been signed into law that authorizes the exemption provided in section 2 of this act. The legislative authorization only applies to exemptions claimed in the calendar year in which the bill is enacted. The legislature shall enact a new authorization bill to authorize the exemption under section 2 of this act for any calendar year.
     (2) The bill required under subsection (1) of this section must:
     (a) Have a bill title that states: "AN ACT Relating to legislative authorization for the working families' tax exemption; [other technical requirements as normally required by the office of the code reviser]";
     (b) Provide a statement that authorizes individuals to submit applications during the six-month period described in section 2(5)(c) of this act for the calendar year in which the legislative authorization bill is enacted; and
     (c) Provide a reasonable fiscal estimate of the cost of the working families' tax exemption for the calendar year in which the legislative authorization bill is enacted.

NEW SECTION.  Sec. 5   (1) The Washington state institute for public policy shall conduct a study that analyzes, compares, and contrasts the economic impacts, both short and long-term, of providing the tax exemption for low-income families under section 2 of this act with a potential targeted investment, of similar fiscal cost, in early learning, K-12, or higher education for low-income families. "Economic impacts" includes increases in education levels; growth in wages, labor productivity, and employment; increases in home ownership and entrepreneurial investment; and any other factors the institute deems necessary for the proper comparison and evaluation of these programs.
     (2) The Washington state institute for public policy shall report the findings of its study to the economic development and fiscal committees of the legislature by December 1, 2012.

NEW SECTION.  Sec. 6   This act expires July 1, 2013.

NEW SECTION.  Sec. 7   If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 2008, in the omnibus appropriations act, this act is null and void."

     Correct the title.

EFFECT:  Replaces the requirement that the exemption be suspended if directed by the operating budget with a requirement that the Legislature reauthorize the exemption in a separate bill every year. Requires the Washington state institute for public policy to compare and contrast the sales tax remittance with an alternative proposal that would invest in early learning, K-12, or higher education for lower- income families and report to the Legislature by December 1, 2012. Provides an expiration date of July 1, 2013. Adds a null and void clause making the bill null and void if funding is not provided in the operating budget.

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