BILL REQ. #:  S-4563.1 

Read first time 01/23/08.   Referred to Committee on Economic Development, Trade & Management.

     AN ACT Relating to addressing the digital literacy and technology training needs of low-income and underserved areas through state support of community technology programs; adding a new section to chapter 82.04 RCW; adding a new section to chapter 82.29A RCW; adding a new chapter to Title 28B RCW; and providing an expiration date.

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

NEW SECTION.  Sec. 1   The legislature finds that information technology plays an increasingly important role in the state's economy but that the knowledge level and adoption of information technologies are limited in some areas of the state. It is the intent of this act to address digital literacy and technology training needs of low-income and underserved areas of the state through state support of community technology programs.

NEW SECTION.  Sec. 2   The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Center" means the Washington State University center to bridge the digital divide.
     (2) "Community technology program" means a program engaged in diffusing information and communications technology in local communities, particularly in underserved areas.
     (3) "Telecommunications company" has the same meaning as provided in RCW 80.04.010 and includes providers of internet services subject to tax under RCW 82.04.297.

NEW SECTION.  Sec. 3   The technology opportunity program is created to support the efforts of community technology programs throughout the state. The technology opportunity program must be administered by the Washington State University center to bridge the digital divide.
     (1) In implementing the technology opportunity program the center must:
     (a) Provide organizational and capacity building support to community technology programs throughout the state, and identify and facilitate the availability of other public and private sources of funds to enhance the purposes of this chapter and the work of community technology programs. No more than fifteen percent of funds received by the center for the program may be expended on these functions;
     (b) Establish a competitive grant program and provide grants to community technology programs to provide training and skill-building opportunities, access to hardware and software, internet connectivity, and assistance in the adoption of information and communication technologies in low-income and underserved areas of the state.
     (2) Grant applicants must:
     (a) Provide evidence that the applicant is a nonprofit entity;
     (b) Define the geographic area or population to be served;
     (c) Include in the application the results of a needs assessment addressing, in the geographic area or among the population to be served: The impact of inadequacies in technology access or knowledge, barriers faced, and services needed;
     (d) Explain in detail the strategy for addressing the needs identified and an implementation plan including objectives, tasks, and benchmarks for the applicant and the role that other organizations will play in assisting the applicant's efforts;
     (e) Provide evidence of matching funds and resources committed to the applicant's strategy and evidence that funds applied for, if received, will be used to increase the applicant's level of effort beyond the current level; and
     (f) Comply with such other requirements as the center establishes.
     (3) The center may use no more than ten percent of funds received for the technology opportunity program to cover administrative expenses.
     (4) The center must establish expected program outcomes for each grant recipient and must require grant recipients to provide an annual accounting of program outcomes.

NEW SECTION.  Sec. 4   The Washington technology opportunity account is established in the state treasury. All receipts from the provisions of sections 5 and 6 of this act must be deposited into the account. Donated funds from private and public sources may also be deposited into the account. Expenditures from the account may be used only for the operation of the technology opportunity program as provided in sections 1 through 3 of this act.

NEW SECTION.  Sec. 5   A new section is added to chapter 82.04 RCW to read as follows:
     (1) For purposes of this section, "telecommunications company" has the same meaning as provided in section 2 of this act.
     (2) A telecommunications company is allowed a credit against taxes due under this chapter in an amount equal to fifty percent of contributions made in any fiscal year directly to the Washington technology opportunity account. The credit must be taken in a form and manner as required by the department. The telecommunications company must make the contribution before claiming a credit authorized under this section. The credit under this section may not exceed two hundred thousand dollars per fiscal year per telecommunications company. The credit may not exceed the tax that would otherwise be due under this chapter. Refunds may not be granted in the place of credits.
     (3) Except as provided under subsection (4) of this section, a tax credit claimed under this section may not be carried over to another year.
     (4) Any amount of tax credit otherwise allowable under this section not claimed by a telecommunications company in any calendar year may be carried over and claimed against the tax liability for the next succeeding calendar year. Any credit remaining unused in the next succeeding calendar year may be carried forward and claimed against the tax liability for the second succeeding calendar year; and any credit not used in that second succeeding calendar year may be carried over and claimed against the tax liability for the third succeeding calendar year, but may not be carried over for any calendar year thereafter.
     (5) Credits are available on a first in-time basis. The department must disallow any credits, or portion thereof, that would cause the total amount of credits claimed under this section during any calendar year to exceed five hundred thousand dollars. If this limitation is reached, the department must notify the Washington State University center to bridge the digital divide that the annual statewide limit has been met. In addition, if this statewide limitation is reached, the department also must provide written notice to any telecommunications company that has claimed tax credits in excess of the statewide limitation in this subsection. The notice to a telecommunications company must indicate the amount of tax due and must provide that the tax be paid within thirty days from the date of such notice. The department may not assess penalties and interest as provided in chapter 82.32 RCW on the amount due in the initial notice if the amount due is paid by the due date specified in the notice, or any extension thereof.
     (6) To claim a credit under this section, a telecommunications company must electronically file with the department all returns, forms, and any other information required by the department, in an electronic format as provided or approved by the department. Any return, form, or information required to be filed in an electronic format under this section is not filed until received by the department in an electronic format. As used in this subsection, "returns" has the same meaning as "return" in RCW 82.32.050.
     (7) No application is necessary for the tax credit. The person must keep records necessary for the department to verify eligibility under this section.
     (8) The Washington State University center to bridge the digital divide must provide to the department, upon request, such information as is needed to verify eligibility for credit under this section, including information regarding contributions made to benefit the community technology program.
     (9) The department may not allow any credit under this section before July 1, 2008.
     (10) This section expires June 30, 2018.

NEW SECTION.  Sec. 6   A new section is added to chapter 82.29A RCW to read as follows:
     Taxes collected under RCW 82.29A.030 from a telecommunications company, as defined in section 2 of this act, as a result of the company's leasehold interest in publicly owned property must be deposited in the Washington technology opportunity account created in section 4 of this act.

NEW SECTION.  Sec. 7   Sections 1 through 4 of this act constitute a new chapter in Title 28B RCW.