BILL REQ. #:  H-0662.1 

Read first time 02/05/13.   Referred to Committee on Appropriations.

     AN ACT Relating to utilizing a portion of public utility tax collected for water distribution to fund the health programs of the departments of ecology and health; and amending RCW 82.16.020, 90.03.650, and 70.119A.120.

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

Sec. 1   RCW 82.16.020 and 2011 1st sp.s. c 48 s 7033 are each amended to read as follows:
     (1) There is levied and ((there shall be)) collected from every person a tax for the act or privilege of engaging within this state in any one or more of the businesses herein mentioned. The tax ((shall be)) is equal to the gross income of the business, multiplied by the rate set out after the business, as follows:
     (a) Express, sewerage collection, and telegraph businesses: Three and six-tenths percent;
     (b) Light and power business: Three and sixty-two one-hundredths percent;
     (c) Gas distribution business: Three and six-tenths percent;
     (d) Urban transportation business: Six-tenths of one percent;
     (e) Vessels under sixty-five feet in length, except tugboats, operating upon the waters within the state: Six-tenths of one percent;
     (f) Motor transportation, railroad, railroad car, and tugboat businesses, and all public service businesses other than ones mentioned above: One and eight-tenths of one percent;
     (g) Water distribution business: Four and seven-tenths percent.
     (2) An additional tax is imposed equal to the rate specified in RCW 82.02.030 multiplied by the tax payable under subsection (1) of this section.
     (3) Twenty percent of the moneys collected under subsection (1) of this section on water distribution businesses and sixty percent of the moneys collected under subsection (1) of this section on sewerage collection businesses shall be deposited in the public works assistance account created in RCW 43.155.050((: PROVIDED, That)). However, during the fiscal year 2011, twenty percent of the moneys collected under subsection (1) of this section on water distribution businesses and sixty percent of the moneys collected under subsection (1) of this section on sewerage collection businesses must be deposited in the general fund for general purpose expenditures.
     (4)(a) Ten percent of the moneys collected under subsection (1) of this section on water distribution businesses must be deposited into the water rights processing account created in RCW 90.03.650; the use of such funds must be for but not limited to the following:
     (i) Department of ecology review of water system plans;
     (ii) Providing matching funds for United States geological survey hydrological models;
     (iii) Data tracking of actual water use on a watershed by watershed basis; and
     (iv) Water right processing.
     (b) Ten percent of the moneys collected under subsection (1) of this section on water distribution businesses must be deposited into the safe drinking water account created in RCW 70.119A.120; the use of such funds must be for but not limited to the following:
     (i) Department of health activities required to maintain state primacy under the federal safe drinking water act;
     (ii) Providing matching funds for United States environmental protection agency grants to the department of health for drinking water regulatory development and implementation;
     (iii) Department of health educational programs intended to assist public water system operators in understanding and complying with state and federal regulations; and
     (iv) Department of health public water system advisory committees to assist the department of health in addressing public drinking water issues.
     (c) The revenue dedication in this subsection is intended to link revenue provided by water utilities to the services provided to utilities and their customers by the department of ecology and the department of health.

Sec. 2   RCW 90.03.650 and 2010 c 285 s 4 are each amended to read as follows:
     The water rights processing account is created in the state treasury. All receipts from the fees collected under RCW 90.03.655, 90.03.665, and 90.44.540 and the identified portion of taxes collected under RCW 82.16.020 must be deposited into the account. Money in the account may be spent only after appropriation. Expenditures from the account may only be used to support the processing of water right applications for a new appropriation, change, transfer, or amendment of a water right as provided in this chapter and chapters 90.42 and 90.44 RCW or for the examination, certification, and renewal of certification of water right examiners as provided in RCW 90.03.665.

Sec. 3   RCW 70.119A.120 and 1991 c 304 s 6 are each amended to read as follows:
     The safe drinking water account is created in the general fund of the state treasury. All receipts from the operating permit fees required to be paid under RCW 70.119A.110 ((shall)) and the identified portion of taxes collected under RCW 82.16.020 must be deposited into the account. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used by the department of health to carry out the purposes of chapter 304, Laws of 1991 and to carry out contracts with local governments in accordance with this chapter.