[atlas:bill]

AN ACT Relating to subsidy disclosure; adding new sections to chapter 42.17 RCW; and creating a new section.

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

NEW SECTION. Sec. 1. The definitions in this section apply throughout sections 1 through 4 of this act unless the context clearly requires otherwise.

(1) "Benefit date" means the date that the recipient receives the business subsidy. If the business subsidy involves the purchase, lease, or donation of physical equipment, then the benefit date begins when the recipient puts the equipment into service. If the business subsidy is for improvements to property, then the benefit date refers to the earliest date of either:

(a) When the improvements are finished for the entire project; or

(b) When a business occupies the property. If a business occupies the property and the subsidy grantor expects that other businesses will also occupy the same property, the grantor may assign a separate benefit date for each business when it first occupies the property.

(2) "Business subsidy" or "subsidy" means a state or local government agency grant, contribution of personal property, real property, infrastructure, the principal amount of a loan at rates below those commercially available to the recipient, any reduction or deferral of taxes or any fee, and guarantee of any payment under any loan, lease, or other obligation, or any preferential use of government facilities given to a business for the purpose of job creation or retention.

The following forms of financial assistance are not business subsidies:

(a) A grant of less than twenty-five thousand dollars;

(b) Tax reductions resulting from conformity with federal tax law; and

(3) "Government agency" means a state or local government agency.

(4) "Grantor" means a state or local government agency with the authority to grant a business subsidy.

(5) "Local government agency" means a city, code city, town, county, special purpose district, port district, nonprofit entity created by a local government agency, or other entity created by or authorized by a local government with authority to provide business subsidies.

(6) "Recipient" means a for-profit business entity that receives a business subsidy.

(7) "State government agency" means a state agency that has the authority to award business subsidies.

(8) "Wage bands" means the following five grouping of wage rates: (a) Up to state minimum wage plus two dollars per hour; (b) between state minimum wage plus two dollars and one cent to state minimum wage plus four dollars per hour; (c) between state minimum wage plus four dollars and one cent to state minimum wage plus six dollars per hour; (d) between state minimum wage plus six dollars and one cent to state minimum wage plus eight dollars per hour; (e) between state minimum wage plus eight dollars and one cent to state minimum wage plus ten dollars; and (f) greater than state minimum wage plus ten dollars per hour.

NEW SECTION. Sec. 2. (1) A recipient must provide information to grantors. The department of revenue shall develop the business subsidy disclosure statement and provide the forms to the recipients. The recipient must provide to the government agency that provided the business subsidy and the department of revenue a subsidy disclosure statement in the following format and that contains the following information:

WASHINGTON BUSINESS ASSISTANCE DISCLOSURE STATEMENT

(Please return by August 1st)

Please type or print in dark ink.

1.Funding government agency name

2.Contact name

3.Agency street address or post office box

4.City and county

5.Zip code

6.Phone number (area code)

7.Fax number (area code)

8.Type of government agency

. . . City . . . County . . . State

. . . Other (please indicate) . . . . . .

9.Name of business receiving business assistance

10.Industry of recipient (SIC code or NAIC code, please indicate code used)

11.Type of public assistance (e.g., loan, grant, tax credit or deferral, infrastructure, etc.)

12.Date business assistance agreement was signed

13.Date business assistance was provided

14.Date project (building, machinery, etc.) was placed in service

15.Dollar value of business assistance

16.Job creation/retention goals for business receiving assistance (please specify)

17.Average hourly wage goals for business receiving assistance (per hour)

18.Actual jobs created/retained since business received assistance (please specify)

19.Actual average hourly wage paid to employees hired since receiving assistance

20.Goals of business assistance received: (Please indicate number of employees by category of job, e.g., full-time, part-time, or contingent/temporary job, number of employees per wage band, and indicate the corresponding benefit level.)

21.Actual performance since project placed in service: (Please indicate number of employees by category of job, e.g., full-time, part-time, or contingent/temporary job, number of employees per wage band, and indicate the corresponding benefit level.)

22.Last date actual wage and job creation/retention levels documented

23.Have all wage and job goals been achieved?

[ ]Yes - do not submit future forms for this project

[ ]No - please submit another form next year

24.Signature and phone number of person filling out the form

25.Date this disclosure form completed

(2) The department of revenue, to the extent feasible, shall design the disclosure statement required under subsection (1) of this section so that it does not exceed two letter-sized pages in length.

(3) The report under subsection (1) of this section must be filed by August 1st of each year for the previous fiscal year.

(4) If the recipient does not submit its report by November 1st, it is ineligible for subsidies until the report has been satisfactorily completed and submitted.

NEW SECTION. Sec. 3. (1) Local government agencies and state government agencies that have awarded business subsidies must file a report by September 1st of each year with the department of revenue. The local government agency must include a list of recipients that did not complete the report required under section 2 of this act, recipients that have not met their job and wage goals within two years, and the steps being taken to bring them into compliance.

(2) If the department of revenue has not received the report under subsection (1) of this section by September 1st from a government agency required to report, the department of revenue shall issue a warning to the government agency.

(3) The department of revenue must provide information on reporting requirements to state and local government agencies.

NEW SECTION. Sec. 4. (1) The department of revenue must publish a compilation and summary of the results of the reports for the previous calendar year by December 1st of each year. The reports of the recipients and government agencies to the department of revenue and the compilation and summary report of the department of revenue must be made available to the public.

(2) The department of revenue must coordinate the production of reports so that useful comparisons across time periods and across grantors can be made. The department of revenue may add other information to the report as the department of revenue deems necessary to evaluate business subsidies. Among the information in the summary and compilation report, the department of revenue must include:

(a) Total amount of subsidies awarded in each city, code city, town, and county of the state;

(b) Distribution of business subsidy amounts by size of the business subsidy;

(d) Distribution of subsidies by type and by public purpose;

(e) Number of part-time, full-time, and contingency or temporary jobs within separate bands of wages; and

(f) Benefits paid within separate bands of wages.

(3) The department of revenue shall forward the compilation and summary report to the house of representatives committee on trade and economic development and the senate committee on economic development and telecommunications by December 31st of each year.

NEW SECTION. Sec. 5. Sections 1 through 4 of this act are each added to chapter 42.17 RCW.

NEW SECTION. Sec. 6. This act applies to all business subsidies entered into or state appropriations authorized after July 1, 2002.