Bill Summary – FastDemocracy

CERTIFICATION OF ENROLLMENT
                      SUBSTITUTE SENATE BILL 5799
                       Chapter 170, Laws of 2022
                               67th Legislature
                             2022 Regular Session
 HEALTH PROVIDER CLINICS AND AFFILIATED ORGANIZATIONS—WORKFORCE
                 EDUCATION INVESTMENT SURCHARGE
                      EFFECTIVE DATE: July 1, 2022
Passed by the Senate March 4, 2022                   CERTIFICATE
  Yeas 46 Nays 0
                                       I, Sarah Bannister, Secretary of
                                       the   Senate   of   the   State  of
              DENNY HECK               Washington, do hereby certify that
President of the Senate                the attached is SUBSTITUTE SENATE
                                       BILL 5799 as passed by the Senate
                                       and the House of Representatives on
                                       the dates hereon set forth.
Passed by the House March 9, 2022
  Yeas 66 Nays 31
                                                 SARAH BANNISTER
            LAURIE JINKINS                                           Secretary
Speaker of the House of
Representatives
Approved March 24, 2022 9:29 AM                         FILED
                                                    March 24, 2022
                                               Secretary of State
              JAY INSLEE                       State of Washington
Governor of the State of Washington
                           SUBSTITUTE SENATE BILL 5799
                   Passed Legislature - 2022 Regular Session
     State of Washington         67th Legislature        2022 Regular Session
     By Senate Business, Financial Services & Trade (originally sponsored
     by Senators Robinson and Lovick)
     READ FIRST TIME 01/28/22.
      AN ACT Relating to modifying the application of the workforce
  education investment advanced computing surcharge to provider clinics
  and affiliated organizations; amending RCW 82.04.299; creating a new
  section; and providing an effective date.
  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
     Sec. 1. RCW 82.04.299 and 2020 c 2 s 4 are each amended to read
 as follows:
     (1)(a) Beginning with business activities occurring on or after
 April 1, 2020, in addition to the taxes imposed under RCW
 82.04.290(2), a workforce education investment surcharge is imposed
 on select advanced computing businesses. The surcharge is equal to
 the gross income of the business subject to the tax under RCW
 82.04.290(2), multiplied by the rate of 1.22 percent.
     (b) Except as provided in (e) of this subsection (1), in no case
 will the combined surcharge imposed under this subsection (1) paid by
 all members of an affiliated group be more than nine million dollars
 annually.
     (c) For persons subject to the surcharge imposed under this
 subsection (1) that report under one or more tax classifications, the
 surcharge applies only to business activities taxed under RCW
 82.04.290(2).
                                       p. 1                       SSB 5799.SL
     (d) The surcharge imposed under this subsection (1) must be
 reported and paid on a quarterly basis in a manner as required by the
 department. Returns and amounts payable under this subsection (1) are
 due by the last day of the month immediately following the end of the
 reporting period covered by the return. All other taxes must be
 reported and paid as required under RCW 82.32.045.
     (e)(i) To aid in the effective administration of the surcharge in
 this subsection (1), the department may require persons believed to
 be engaging in advanced computing or affiliated with a person
 believed to be engaging in advanced computing to disclose whether
 they are a member of an affiliated group and, if so, to identify all
 other members of the affiliated group subject to the surcharge.
     (ii) If the department establishes, by clear, cogent, and
 convincing evidence, that one or more members of an affiliated group,
 with intent to evade the surcharge under this subsection (1), failed
 to fully comply with this subsection (1)(e), the department must
 assess against that person, or those persons collectively, a penalty
 equal to fifty percent of the amount of the total surcharge payable
 by all members of that affiliated group for the calendar year during
 which the person or persons failed to fully comply with this
 subsection (1)(e). The penalty under this subsection (1)(e) is in
 lieu of and not in addition to the evasion penalty under RCW
 82.32.090(7).
     (f) For the purposes of this subsection (1) the following
 definitions apply:
     (i) "Advanced computing" means designing or developing computer
 software or computer hardware, whether directly or contracting with
 another person, including modifications to computer software or
 computer hardware, cloud computing services, or operating an online
 marketplace, an online search engine, or online social networking
 platform;
     (ii) "Affiliate" and "affiliated" means a person that directly or
 indirectly, through one or more intermediaries, controls, is
 controlled by, or is under common control with another person;
     (iii) "Affiliated group" means a group of two or more persons
 that are affiliated with each other;
     (iv) "Cloud computing services" means on-demand delivery of
 computing   resources,    such   as   networks,    servers,   storage,
 applications, and services, over the internet;
                                     p. 2                      SSB 5799.SL
     (v) "Control" means the possession, directly or indirectly, of
 more than fifty percent of the power to direct or cause the direction
 of the management and policies of a person, whether through the
 ownership of voting shares, by contract, or otherwise; and
     (vi) "Select advanced computing business" means a person who is a
 member of an affiliated group with at least one member of the
 affiliated group engaging in the business of advanced computing, and
 the affiliated group has worldwide gross revenue of more than twenty-
 five billion dollars during the immediately preceding calendar year.
 A person who is primarily engaged within this state in the provision
 of commercial mobile service, as that term is defined in 47 U.S.C.
 Sec. 332(d)(1), shall not be considered a select advanced computing
 business. A person who is primarily engaged in this state in the
 operation and provision of access to transmission facilities and
 infrastructure that the person owns or leases for the transmission of
 voice, data, text, sound, and video using wired telecommunications
 networks shall not be considered a select advanced computing
 business. A person that is primarily engaged in business as a
 "financial institution" as defined in RCW 82.04.29004, as that
 section existed on January 1, 2020, shall not be considered a select
 advanced computing business. For purposes of this subsection
 (1)(f)(vi), "primarily" is determined based on gross income of the
 business.
     (2)(a) The workforce education investment surcharge under this
 section does not apply to ((any)):
     (i) Any hospital as defined in RCW 70.41.020, including any
 hospital that comes within the scope of chapter 71.12 RCW if the
 hospital is also licensed under chapter 70.41 RCW; or
     (ii) A provider clinic offering primary care, multispecialty and
 surgical services, including behavioral health services, and any
 affiliate of the provider clinic if the affiliate is an organization
 that offers health care services or provides administrative support
 for a provider clinic, or is an independent practice association or
 accountable care organization.
     (b) The exemptions under this subsection (2) do not apply to
 amounts received by any member of an affiliated group other than the
 businesses described in (a) of this subsection.
     (c) For purposes of the exemption in (a)(ii) of this subsection:
                                     p. 3                      SSB 5799.SL
     (i) "Health care services" means services offered by health care
 providers relating to the prevention, cure, or treatment of illness,
 injury, or disease.
     (ii) "Primary care" means wellness and prevention services and
 the diagnosis and treatment of health conditions.
     (3) Revenues from the surcharge under this section must be
 deposited directly into the workforce education investment account
 established in RCW 43.79.195.
     (4) The department has the authority to determine through an
 audit or other investigation whether a person is subject to the
 surcharge imposed in this section.
     NEW SECTION.   Sec. 2.    RCW 82.32.805 and 82.32.808 do apply to
 this act.
    NEW SECTION.    Sec. 3.   This act takes effect July 1, 2022.
         Passed by the Senate March 4, 2022.
         Passed by the House March 9, 2022.
         Approved by the Governor March 24, 2022.
         Filed in Office of Secretary of State March 24, 2022.
                                    --- END ---
                                       p. 4                      SSB 5799.SL
Statutes affected: 
Original Bill: 82.04.299
Substitute Bill: 82.04.299
Bill as Passed Legislature: 82.04.299
Session Law: 82.04.299