Item 2C: Ratification of IGR Committee Minutes

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Ms. Wilson directed committee members' attention to a document in their packets titled LOC 2011 PRO- POSED LEGISLATIVE PRIORITIES, which included some of the discussion policy committees had related to the description of each priority as well as staff comments. She stated that she did not want to presuppose what the CCIGR's priorities might be, but went through and highlighted some of the priorities in gray. These, she felt, could not be accomplished in this upcoming legislative session or were something that the LOC already prioritized. For example, under Finance and Taxation, priority G.: “Maintain and strengthen the state's historic commitment to the state shared revenue funding and any additional taxes; surcharges must be incorporated in the current formula so cities may continue to provide services related to these reve- nues.” She explained that this was a priority, but that should the situation arise, the LOC would already take that action. a. Priority E - Business Energy Tax Credit (BETC) Ms. Wilson stated that she did highlight priority E: the Business Energy Tax Credit (BETC). She explained that the BETC came under attack during the last legislative session because of some groups' view that it was being abused, especially in the wind energy industry. One of the issues that kept coming up, in every hear- ing and discussion, even though legislative leadership said they were not going to address it, was the pass- through that municipalities used. She said that the COE used the passthrough for some of their energy projects, and if the passthrough went away or was capped, it would significantly impact the COE's ability to implement some of those energy programs. The COE also had projects where it would lose the American Recovery and Reinvestment Act (ARRA) funding if the passthrough went away, because the tax credit was needed in order to complete certain projects. She related that this was her only recommendation for inclu- sion in the COE’s priority list as far as the LOC priorities. b. Priority A - Overhauling the urban growth boundary rules and Priority F - policies overhauling the state's property tax system Ms. Wilson explained that priorities A (Overhauling the urban growth boundary rules and policies) and F (Overhauling the state's property tax system) would require multiple legislative sessions. She said that she recommended the priorities that she had not highlighted more than the ones she had highlighted in gray. c. Priority I - 9-1-1 tax for pre-paid cell phones The non-highlighted priorities, priority I, Ms. Wilson explained, would also impact the COE's ability to maintain revenues or would provide additional tools to generate revenues. For example, she brought the CCIGR's attention to priority I, “9-1-1 tax for pre-paid cell phones” (under general government). She ex- plained that buying minutes for a pre-paid cell phone did not require an account or paying a 9-1-1 tax. However, these phones could dial 9-1-1. The 9-1-1 tax for cell phones with plans was 75 cents per month. This tax was not enough to support the 9-1-1 system, and there was a growing number of pre-paid cell phones coming on the market. The State of Washington had just enacted a tax on these wireless telephones, and other states were going after pre-paid cell phones that would provide additional revenue to their 9-1-1 systems. Ms. Taylor asked Ms. Wilson if she wanted the CCIGR to choose their top four priorities for the LOC. Ms. Wilson stated that this was correct. Ms. Taylor asked if requiring multiple sessions to occur should preclude the CCIGR from choosing some of MINUTES—Council Committee on Intergovernmental Relations June 30, 2010 Page 2