BILL REQ. #:  H-4098.1 

READ FIRST TIME 02/07/12.   

     AN ACT Relating to the existing authority to impose a sales and use tax for public facilities districts by providing flexibility in the submittal of the sales and use tax to voters by distressed public facilities districts; amending RCW 82.14.048; and declaring an emergency.

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

Sec. 1   RCW 82.14.048 and 2009 c 533 s 3 are each amended to read as follows:
     (1)(a) The governing board of a public facilities district under chapter 36.100 or 35.57 RCW may submit an authorizing proposition to the voters of the district, and if the proposition is approved by a majority of persons voting, impose a sales and use tax in accordance with the terms of this chapter.
     (b) The legislative authority of any city entering into an interlocal agreement under chapter 39.34 RCW to form a public facilities district under chapter 35.57 RCW that qualifies as a distressed public facilities district may submit an authorizing proposition to the voters of the city and, if the proposition is approved by a majority of the persons voting, impose a sales and use tax in accordance with the requirements of this section. To impose the tax authorized under this subsection (1)(b), the legislative body of the city must submit the authorizing proposition to the voters by July 1, 2013. The tax authorized under this subsection (1)(b) expires on December 31st of the year in which all outstanding indebtedness of the distressed public facilities district has been paid or legally defeased.
     (2) The ((tax)) taxes authorized in this section ((shall be)) are in addition to any other taxes authorized by law and shall be collected from those persons who are taxable by the state under chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event within the public facilities district. The rate of tax shall not exceed two-tenths of one percent of the selling price in the case of a sales tax, or value of the article used, in the case of a use tax. A public facilities district formed under RCW 35.57.010(1)(e) may not impose the tax authorized under this subsection at a rate that exceeds two-tenths of one percent minus the rate of the highest tax authorized by this subsection that is imposed by any other public facilities district within its boundaries. If a public facilities district formed under RCW 35.57.010(1)(e) has imposed a tax under this subsection and issued or incurred obligations pledging that tax, so long as those obligations are outstanding no other public facilities district within its boundaries may thereafter impose a tax under this subsection at a rate that would reduce the rate of the tax that was pledged to the repayment of those obligations. A public facilities district that imposes a tax under this subsection is responsible f60;  (4) The term local governments for purposes of this chapter includes but is not limited to all counties, cities, and other political subdivisions, municipal corporations, and quasi-municipal corporations, however denominated.
     (((4))) (5) The state auditor shall establish a schedule to govern the auditing of local governments which shall include: A designation of the various classifications of local governments; a designation of the frequency for auditing each type of local government; and a description of events which cause a more frequent audit to be conducted.
     (((5))) (6) On every such examination, inquiry shall be made as to the financial condition and resources of the local government; whether the Constitution and laws of the state, the ordinances and orders of the local government, and the requirements of the state auditor have been properly complied with; and into the methods and accuracy of the accounts and reports.
     (((6))) (7) A report of such examination shall be made and filed in the office of state auditor, and one copy shall be transmitted to the local government. A copy of any report containing findings of noncompliance with state law shall be transmitted to the attorney general. If any such report discloses malfeasance, misfeasance, or nonfeasance in office on the part of any public officer or employee, within thirty days from the receipt of his or her copy of the report, the attorney general shall institute, in the proper county, such legal action as is proper in the premises by civil process and prosecute the same to final determination to carry into effect the findings of the examination.
     (((7))) (8) It shall be unlawful for any local government or the responsible head thereof, to make a settlement or compromise of any claim arising out of such malfeasance, misfeasance, or nonfeasance, or any action commenced therefor, or for any court to enter upon any compromise or settlement of such action, without the written approval and consent of the attorney general and the state auditor.

Sec. 2   RCW 43.17.390 and 2009 c 564 s 931 are each amended to read as follows:
     (1) Starting in 2012, and at least once every three years thereafter, each agency shall apply to the Washington state quality award((, or similar organization,)) for an independent assessment of its quality management, accountability, and performance system. The assessment shall evaluate the effectiveness of all elements of its management, accountability, and performance system, including: Leadership, strategic planning, customer focus, analysis and information, employee performance management, and process improvement. The purpose of the assessment is to recognize best practice and identify improvement opportunities.
     (2) Each agency shall provide the governor's office with an electronic copy of its independent assessment application and any feedback provided by the independent assessor.
     (3) Pursuant to subsection (1) of this section, state agencies must provide electronic copies of Washington state quality award assessments, feedback reports, and corrective action plans to the government management accountability and performance program, the joint legislative audit and review committee, and the state auditor. Each of these entities must post the assessments, feedback reports, and corrective action plans on its web site.
     (4) Agencies must track employees trained in performance management and report to the government management accountability and performance program.
     (5) The government management accountability and performance program must coordinate with the Washington state quality award to develop an implementation plan with dates for all state agencies to accomplish a full assessment by 2013 and every three years thereafter until a score of sixty percent is obtained.
     (6) The office of financial management must use the Washington state quality award assessments as a measure for the priorities of government program.
     (7) A performance audit of the priorities of government program must be completed by January 2013. The state auditor must review each state agency's performance management system, Washington state quality award assessment, annual self-assessments, and corrective action plans for all performance audits.

NEW SECTION.  Sec. 3   A new section is added to chapter 44.04 RCW to read as follows:
     The house of representatives must complete a Washington state quality award assessment by June 30, 2013, and every two years thereafter until a score of sixty percent is obtained.

NEW SECTION.  Sec. 4   (1) The sum of fifty thousand dollars, or as much thereof as may be necessary, is appropriated for the fiscal year ending June 30, 2013, from the general fund to the Washington quality award council for Washington state quality awards, or other quality management training, as provided in section 2(4) of this act.
     (2) The sum of fifty thousand dollars, or as much thereof as may be necessary, is appropriated for the fiscal year ending June 30, 2014, from the general fund to the Washington quality award council for Washington state quality awards, or other quality management training, as provided in section 2(4) of this act.

NEW SECTION.  Sec. 5   The sum of two hundred thousand dollars, or as much thereof as may be necessary, is appropriated for the fiscal year ending June 30, 2013, from the general fund to the state auditor for a performance audit of the priorities of government program as provided in section 2(7) of this act.

NEW SECTION.  Sec. 6   A new section is added to chapter 43.09 RCW to read as follows:
     The auditor shall establish an annual assessment and performance grading program. The program shall consist of conducting annual performance assessments and grading state agency performance. Areas to be assessed shall include quality management, productivity, fiscal efficiency, program effectiveness, contract management and oversight, internal audit, internal and external customer satisfaction, statutory and regulatory compliance, and technology systems and online services. As part of this program, the auditor shall:
     (1) Consult with and seek input from elected officials, state employees including front-line employees, and professionals with a background in performance management for establishing the grading standards. In developing the criteria, the auditor shall consider already developed best practices and audit criteria used by government or nongovernment organizations. Before the assessment, the agencies must be given the criteria for the assessment and the standards for grading;
     (2) Contract or partner with public or private entities that have expertise in either public sector reviews or technical expertise, or both, in individual assessment areas to perform the assessments and grading of all state agencies. The auditor may contract or partner with more than one entity for different assessment areas; and
     (3) Submit the results of the assessment and grading program to the governor, the office of financial management, appropriate legislative committees, and the public by December 15th of each year. The results of the annual assessments and performance grading must be posted on the internet.

Sec. 7   RCW 82.08.020 and 2011 c 171 s 120 are each amended to read as follows:
     (1) There is levied and collected a tax equal to six and five-tenths percent of the selling price on each retail sale in this state of:
     (a) Tangible personal property, unless the sale is specifically excluded from the RCW 82.04.050 definition of retail sale;
     (b) Digital goods, digital codes, and digital automated services, if the sale is included within the RCW 82.04.050 definition of retail sale;
     (c) Services, other than digital automated services, included within the RCW 82.04.050 definition of retail sale;
     (d) Extended warranties to consumers; and
     (e) Anything else, the sale of which is included within the RCW 82.04.050 definition of retail sale.
     (2) There is levied and collected an additional tax on each retail car rental, regardless of whether the vehicle is licensed in this state, equal to five and nine-tenths percent of the selling price. The revenue collected under this subsection must be deposited in the multimodal transportation account created in RCW 47.66.070.
     (3) Beginning July 1, 2003, there is levied and collected an additional tax of three-tenths of one percent of the selling price on each retail sale of a motor vehicle in this state, other than retail car rentals taxed under subsection (2) of this section. The revenue collected under this subsection must be deposited in the multimodal transportation account created in RCW 47.66.070.
     (4) For purposes of subsection (3) of this section, "motor vehicle" has the meaning provided in RCW 46.04.320, but does not include farm tractors or farm vehicles as defined in RCW 46.04.180 and 46.04.181, off-road vehicles as defined in RCW 46.04.365, nonhighway vehicles as defined in RCW 46.09.310, and snowmobiles as defined in RCW 46.04.546.
     (5) Beginning on December 8, 2005, 0.16 percent of the taxes collected under subsection (1) of this section must be dedicated to funding comprehensive performance audits required under RCW 43.09.470 and the performance assessments and scorecard program in section 6 of this act. The revenue identified in this subsection must be deposited in the performance audits of government account created in RCW 43.09.475.
     (6) The taxes imposed under this chapter apply to successive retail sales of the same property.
     (7) The rates provided in this section apply to taxes imposed under chapter 82.12 RCW as provided in RCW 82.12.020.

Sec. 8   RCW 82.12.0201 and 2006 c 1 s 4 are each amended to read as follows:
     Beginning on December 8, 2005, 0.16 percent of the taxes collected under RCW 82.12.020 based on the rate in RCW 82.08.020(1) shall be dedicated to funding comprehensive performance audits under RCW 43.09.470 and the performance assessments and scorecard program under section 6 of this act. Revenue identified in this section shall be deposited in the performance audits of government account created in RCW 43.09.475.