INITIATIVE 1185

To the People

Chapter 1, Laws of 2013

Regular Session

Taxes and fees imposed by state government.

EFFECTIVE DATE: December 6, 2012

Approved by the

People of the State of Washington

in the General Election on

November 6, 2012

ORIGINALLY FILED

January 6, 2012

Secretary of State

 1AN ACT Relating to taxes and fees imposed by state government;

 2amending RCW 43.135.034, 43.135.055, 43.135.031, and 43.135.041;

 3creating new sections; and repealing 2010 c 4 s 2.

 4BE IT ENACTED BY THE PEOPLE OF THE STATE OF WASHINGTON:

 5INTENT

 6NEW SECTION. Sec. 1. This initiative should deter the governor

 7and the legislature from sidestepping, suspending, or repealing any of

 8Initiative 1053's policies which voters approved by a huge margin in

 92010. The people insist that tax increases receive either two-thirds

10legislative approval or voter approval and fee increases receive a

11simple majority vote. These important policies ensure that taxpayers

12will be protected and that taking more of the people's money will

13always be an absolute last resort.

14PROTECTING TAXPAYERS BY REQUIRING EITHER TWO-THIRDS LEGISLATIVE

15APPROVAL OR VOTER APPROVAL FOR THE LEGISLATURE TO RAISE TAXES

 1Sec. 2. RCW 43.135.034 and 2011 c 1 s 2 are each amended to read

 2as follows:

 3(1)(a) ((After July 1, 1995, a)) Any action or combination of

 4actions by the legislature that raises taxes may be taken only if

 5approved by ((at least)) a two-thirds ((legislative approval)) vote in

 6both the house of representatives and the senate. Pursuant to the

 7referendum power set forth in Article II, section 1(b) of the state

 8Constitution, tax increases may be referred to the voters for their

 9approval or rejection at an election.

10(b) For the purposes of this chapter, "raises taxes" means any

11action or combination of actions by the state legislature that

12increases state tax revenue deposited in any fund, budget, or account,

13regardless of whether the revenues are deposited into the general fund.

14(2)(a) If the legislative action under subsection (1) of this

15section will result in expenditures in excess of the state expenditure

16limit, then the action of the legislature shall not take effect until

17approved by a vote of the people at a November general election. The

18state expenditure limit committee shall adjust the state expenditure

19limit by the amount of additional revenue approved by the voters under

20this section. This adjustment shall not exceed the amount of revenue

21generated by the legislative action during the first full fiscal year

22in which it is in effect. The state expenditure limit shall be

23adjusted downward upon expiration or repeal of the legislative action.

24(b) The ballot title for any vote of the people required under this

25section shall be substantially as follows:

26"Shall taxes be imposed on . . . . . . . in order to allow a

27spending increase above last year's authorized spending adjusted for

28personal income growth?"

29(3)(a) The state expenditure limit may be exceeded upon declaration

30of an emergency for a period not to exceed twenty-four months by a law

31approved by a two-thirds vote of each house of the legislature and

32signed by the governor. The law shall set forth the nature of the

33emergency, which is limited to natural disasters that require immediate

34government action to alleviate human suffering and provide humanitarian

35assistance. The state expenditure limit may be exceeded for no more

36than twenty-four months following the declaration of the emergency and

37only for the purposes contained in the emergency declaration.

 1(b) Additional taxes required for an emergency under this section

 2may be imposed only until thirty days following the next general

 3election, unless an extension is approved at that general election.

 4The additional taxes shall expire upon expiration of the declaration of

 5emergency. The legislature shall not impose additional taxes for

 6emergency purposes under this subsection unless funds in the education

 7construction fund have been exhausted.

 8(c) The state or any political subdivision of the state shall not

 9impose any tax on intangible property listed in RCW 84.36.070 as that

10statute exists on January 1, 1993.

11(4) If the cost of any state program or function is shifted from

12the state general fund to another source of funding, or if moneys are

13transferred from the state general fund to another fund or account, the

14state expenditure limit committee, acting pursuant to RCW

1543.135.025(5), shall lower the state expenditure limit to reflect the

16shift. For the purposes of this section, a transfer of money from the

17state general fund to another fund or account includes any state

18legislative action taken that has the effect of reducing revenues from

19a particular source, where such revenues would otherwise be deposited

20into the state general fund, while increasing the revenues from that

21particular source to another state or local government account. This

22subsection does not apply to: (a) The dedication or use of lottery

23revenues under RCW 67.70.240(3), in support of education or education

24expenditures; or (b) a transfer of moneys to, or an expenditure from,

25the budget stabilization account.

26(5) If the cost of any state program or function and the ongoing

27revenue necessary to fund the program or function are shifted to the

28state general fund on or after January 1, 2007, the state expenditure

29limit committee, acting pursuant to RCW 43.135.025(5), shall increase

30the state expenditure limit to reflect the shift unless the shifted

31revenue had previously been shifted from the general fund.

32(((6) For the purposes of *[this] chapter, "raises taxes" means any

33action or combination of actions by the legislature that increases

34state tax revenue deposited in any fund, budget, or account, regardless

35of whether the revenues are deposited into the general fund.))

36NOTES:

37*Reviser's note: Initiative Measure No. 1185 deleted the word

 1"this" from subsection (6), which was being struck from existing code

 2by the use of double parentheses with strike-through.

 3NEW SECTION. Sec. 3. 2010 c 4 s 2 is repealed.

 4PROTECTING TAXPAYERS BY REQUIRING FEE INCREASES

 5RECEIVE A SIMPLE MAJORITY VOTE

 6Sec. 4. RCW 43.135.055 and 2011 c 1 s 5 are each amended to read

 7as follows:

 8(1) A fee may only be imposed or increased in any fiscal year if

 9approved with a simple majority ((legislative approval)) vote in both

10the house of representatives and the senate and must be subject to the

11accountability procedures required by RCW 43.135.031.

12(2) This section does not apply to an assessment made by an

13agricultural commodity commission or board created by state statute or

14created under a marketing agreement or order under chapter 15.65 or

1515.66 RCW, or to the forest products commission, if the assessment is

16approved by referendum in accordance with the provisions of the

17statutes creating the commission or board or chapter 15.65 or 15.66 RCW

18for approving such assessments.

19STATUTORY REFERENCE CORRECTIONS

20Sec. 5. RCW 43.135.031 and 2010 [2008] c 1 s 2 are each amended to

21read as follows:

22(1) For any bill introduced in either the house of representatives

23or the senate that raises taxes as defined by (( *RCW 43.135.035)) RCW

2443.135.034 or increases fees, the office of financial management must

25expeditiously determine its cost to the taxpayers in its first ten

26years of imposition, must promptly and without delay report the results

27of its analysis by public press release via e-mail to each member of

28the house of representatives, each member of the senate, the news

29media, and the public, and must post and maintain these releases on its

30web site. Any ten-year cost projection must include a year-by-year

31breakdown. For any bill containing more than one revenue source, a

32ten-year cost projection for each revenue source will be included along

33with the bill's total ten-year cost projection. The press release

 1shall include the names of the legislators, and their contact

 2information, who are sponsors and cosponsors of the bill so they can

 3provide information to, and answer questions from, the public.

 4(2) Any time any legislative committee schedules a public hearing

 5on a bill that raises taxes as defined by (( *RCW 43.135.035)) RCW

 643.135.034 or increases fees, the office of financial management must

 7promptly and without delay report the results of its most up-to-date

 8analysis of the bill required by subsection (1) of this section and the

 9date, time, and location of the hearing by public press release via

10e-mail to each member of the house of representatives, each member of

11the senate, the news media, and the public, and must post and maintain

12these releases on its web site. The press release required by this

13subsection must include all the information required by subsection (1)

14of this section and the names of the legislators, and their contact

15information, who are members of the legislative committee conducting

16the hearing so they can provide information to, and answer questions

17from, the public.

18(3) Each time a bill that raises taxes as defined by (( *RCW

1943.135.035)) RCW 43.135.034 or increases fees is approved by any

20legislative committee or by at least a simple majority in either the

21house of representatives or the senate, the office of financial

22management must expeditiously reexamine and redetermine its ten-year

23cost projection due to amendment or other changes during the

24legislative process, must promptly and without delay report the results

25of its most up-to-date analysis by public press release via e-mail to

26each member of the house of representatives, each member of the senate,

27the news media, and the public, and must post and maintain these

28releases on its web site. Any ten-year cost projection must include a

29year-by-year breakdown. For any bill containing more than one revenue

30source, a ten-year cost projection for each revenue source will be

31included along with the bill's total ten-year cost projection. The

32press release shall include the names of the legislators, and their

33contact information, and how they voted on the bill so they can provide

34information to, and answer questions from, the public.

35(4) For the purposes of this section, "names of legislators, and

36their contact information" includes each legislator's position (senator

37or representative), first name, last name, party affiliation (for

 1example, Democrat or Republican), city or town they live in, office

 2phone number, and office e-mail address.

 3(5) For the purposes of this section, "news media" means any member

 4of the press or media organization, including newspapers, radio, and

 5television, that signs up with the office of financial management to

 6receive the public press releases by e-mail.

 7(6) For the purposes of this section, "the public" means any

 8person, group, or organization that signs up with the office of

 9financial management to receive the public press releases by e-mail.

10Sec. 6. RCW 43.135.041 and 2010 c 4 s 3 are each amended to read

11as follows:

12(1)(a) After July 1, 2011, if legislative action raising taxes as

13defined by ((*RCW 43.135.035)) RCW 43.135.034 is blocked from a public

14vote or is not referred to the people by a referendum petition found to

15be sufficient under RCW 29A.72.250, a measure for an advisory vote of

16the people is required and shall be placed on the next general election

17ballot under this chapter ((1, Laws of 2008)).

18(b) If legislative action raising taxes enacted after July 1, 2011,

19involves more than one revenue source, each tax being increased shall

20be subject to a separate measure for an advisory vote of the people

21under the requirements of this chapter ((1, Laws of 2008)).

22(2) No later than the first of August, the attorney general will

23send written notice to the secretary of state of any tax increase that

24is subject to an advisory vote of the people, under the provisions and

25exceptions provided by this chapter ((1, Laws of 2008)). Within five

26days of receiving such written notice from the attorney general, the

27secretary of state will assign a serial number for a measure for an

28advisory vote of the people and transmit one copy of the measure

29bearing its serial number to the attorney general as required by RCW

3029A.72.040, for any tax increase identified by the attorney general as

31needing an advisory vote of the people for that year's general election

32ballot. Saturdays, Sundays, and legal holidays are not counted in

33calculating the time limits in this subsection.

34(3) For the purposes of this section, "blocked from a public vote"

35includes adding an emergency clause to a bill increasing taxes, bonding

36or contractually obligating taxes, or otherwise preventing a referendum

37on a bill increasing taxes.

 1(4) If legislative action raising taxes is referred to the people

 2by the legislature or is included in an initiative to the people found

 3to be sufficient under RCW 29A.72.250, then the tax increase is exempt

 4from an advisory vote of the people under this chapter ((1, Laws of

 52008)).

 6CONSTRUCTION CLAUSE

 7NEW SECTION. Sec. 7. The provisions of this act are to be

 8liberally construed to effectuate the intent, policies, and purposes of

 9this act.

10SEVERABILITY CLAUSE

11NEW SECTION. Sec. 8. If any provision of this act or its

12application to any person or circumstance is held invalid, the

13remainder of the act or the application of the provision to other

14persons or circumstances is not affected.

15MISCELLANEOUS

16NEW SECTION. Sec. 9. This act is known and may be cited as "Save

17The 2/3's Vote For Tax Increases (Again) Act."Originally filed in Office of Secretary of State January 6, 2012.

Approved by the People of the State of Washington in the General Election on November 6, 2012.