Digital equity/revenue

AN ACT Relating to providing a revenue stream to fund digital 1
equity programs; amending RCW 82.32.145; adding a new section to 2
chapter 82.08 RCW; adding a new section to chapter 28A.650 RCW; 3
adding a new chapter to Title 82 RCW; creating a new section; 4
prescribing penalties; providing an effective date; providing an 5
expiration date; and declaring an emergency. 6
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:7
NEW SECTION. Sec. 1. INTENT. The legislature finds that the 8
Washington state digital equity plan documents the findings in this 9
section.10
The legislature finds that many Washingtonians do not have access 11
to adequate and affordable internet or internet-connected devices, 12
making them unable to participate fully online. The legislature finds 13
that connectivity to the internet enables residents to access school, 14
work, job training, elder care and connections, faith programs, 15
health care, farming resources, civic participation, and much more. 16
The legislature finds that this digital inequity affects communities 17
all over the state, including frontier, rural, urban, and suburban 18
areas, and tribal lands. 19
The legislature reaffirms the findings in section 102, chapter 20
265, Laws of 2022, which state: "Access to the internet is essential 21
H-0071.2
HOUSE BILL 1517
State of Washington 69th Legislature 2025 Regular Session
By Representatives Gregerson, Ryu, Doglio, Peterson, Reed, Ormsby,
Parshley, Macri, and Hill
Read first time 01/22/25. Referred to Committee on Finance.
p. 1 HB 1517
to participating in modern day society including, but not limited to, 1
attending school and work, accessing health care, paying for basic 2
services, connecting with family and friends, civic participation, 3
and economic survival." 4
The legislature recognizes that state agencies need funding to 5
adapt their programs to include digital access and adoption. The 6
legislature further finds that there is a need to fund community-7
based organizations and build public-private partnerships to reach 8
customers who qualify for subsidies and digital skill building.9
The legislature recognizes that barriers to digital equity stem 10
from a range of systemic barriers that prevent certain populations 11
from accessing and benefiting from digital technologies, including: 12
Infrastructure gaps, broadband access, digital literacy, access to 13
devices, transportation and housing, or personal challenges like 14
limited English proficiency, disabilities, age, or social-economic 15
position. These systemic and personal barriers should not limit 16
access and opportunities to participate in our digital society.17
The legislature recognizes that the aging population, projected 18
to reach 27 percent by 2040, faces significant digital connectivity 19
challenges, with 41 percent of those over 65 not using the internet 20
and 53 percent lacking broadband access. Reliable internet is 21
essential for older adults to access telehealth services and maintain 22
their independence, underscoring the critical role of digital 23
connectivity in their health and wellness. 24
The legislature recognizes that Washington is home to 25
approximately 530,000 veterans, 62,000 active-duty military 26
personnel, 18,000 national guard and reserve members, and 2,000,000 27
family members. Veterans without internet access are generally older, 28
unmarried, have lower educational attainment, and earn less than 29
those with access. Reliable internet is crucial for these individuals 30
to access health care, benefits, and other essential resources.31
The legislature recognizes that approximately 26.5 percent of 32
Washington residents live in rural areas, facing challenges such as 33
limited health care, education, and job opportunities, along with 34
inadequate infrastructure. Addressing digital inequities in these 35
areas requires investment in broadband infrastructure, internet 36
affordability, and digital skills training. 37
The legislature recognizes that low literacy rates, affecting 38
16.1 percent of the population, and language barriers further 39
complicate digital inclusion, particularly for the 1,130,000 40
p. 2 HB 1517
residents born outside the United States, of whom 42 percent have 1
limited English proficiency. Even among the nearly 560,000 2
naturalized citizens, 35 percent reported limited English 3
proficiency, highlighting the need for accessible digital resources.4
The legislature recognizes that approximately 10 percent of 5
Washington residents lived below the poverty line in 2020, with 6
notable disparities among children and Hispanic and Latinx 7
communities. High-speed internet access is critical for low-income 8
households to access educational programs, job opportunities, and 9
financial assistance, thus promoting social and economic equity.10
The legislature recognizes the need to support Washington's 11
statewide cybersecurity strategy to protect data and privacy of 12
individuals sharing one or more of the following characteristics: 13
Individuals who live in covered households, individuals aged 60 and 14
over, incarcerated individuals, other than individuals who are 15
incarcerated in a federal correctional facility, veterans, 16
individuals with disabilities, individuals belonging to a racial and 17
ethnic minority, individuals living in rural areas, individuals with 18
a language barrier, children and youth in foster care, and 19
individuals experiencing housing instability. 20
The legislature recognizes the need to leverage existing 21
workforce programs and expand community partnerships that provide 22
increased knowledge and skills enabling populations to participate in 23
changing workforce opportunities. 24
NEW SECTION. Sec. 2. DEFINITIONS. The definitions in this 25
section apply throughout this chapter unless the context clearly 26
requires otherwise.27
(1) "Buyer" has the same meaning as in RCW 82.08.010.28
(2)(a) "Retail sale" has the same meaning as in RCW 82.04.050.29
(b) "Retail sale" also means the transfer of a smart wireless 30
device to a buyer that is partially or fully discounted by the seller 31
in exchange for the buyer purchasing other products or services 32
furnished in connection with the smart wireless device.33
(3) "Seller" has the same meaning as in RCW 82.08.010.34
(4)(a) "Selling price" has the same meaning as in RCW 82.08.010.35
(b) "Selling price" also means: 36
(i) In the case of a smart wireless device that is sold to the 37
buyer under conditions where the selling price does not represent the 38
true value of the smart wireless device and is sold together with 39
p. 3 HB 1517
other products or services for one nonitemized price, the retail 1
selling price of the same product or similar products of like quality 2
and character, sold in an arm's length transaction; and3
(ii) In the case of installment sales of a smart wireless device, 4
the total aggregate consideration to be paid by the buyer to the 5
seller for the smart wireless device. 6
(5) "Smart wireless device" means any type of instrument, device, 7
machine, or equipment that is capable of wireless access to the 8
internet. This includes, but is not limited to, internet of things, 9
smart phones, laptop computers, tablets, wearable devices, smart 10
speakers, gaming consoles, smart gyms, smart appliances, and smart 11
televisions. 12
NEW SECTION. Sec. 3. WIRELESS DEVICE TAX. (1) There is levied 13
and collected a tax on each retail sale in this state of a smart 14
wireless device. The amount of the tax is $2 for a device with a 15
selling price of more than $250.16
(2) The revenue collected under this section must be deposited in 17
the state digital equity account created in RCW 80.36.710.18
NEW SECTION. Sec. 4. PAYMENT OF TAX. (1) The tax imposed in 19
this chapter must be paid by the buyer to the seller. Each seller 20
must collect from the buyer the full amount of the tax payable with 21
respect to each taxable sale.22
(2) The tax required by this chapter, to be collected by the 23
seller, is held in trust by the seller until paid to the department. 24
Any seller who appropriates or converts the tax collected to the 25
seller's own use or to any use other than the payment of the tax to 26
the extent that the money required to be collected is not available 27
for payment on the due date as prescribed in this chapter is guilty 28
of a gross misdemeanor. 29
(3) If any seller fails to collect the tax imposed in this 30
chapter or, having collected the tax, fails to pay it to the 31
department in the manner prescribed by this chapter, whether such 32
failure is the result of the seller's own acts or the result of acts 33
or conditions beyond the seller's control, the seller is, 34
nevertheless, personally liable to the state for the amount of the 35
tax. 36
p. 4 HB 1517
(4) The tax required by this chapter to be collected by the 1
seller must be stated separately from the selling price in any sales 2
invoice or other instrument of sale. 3
NEW SECTION. Sec. 5. ADMINISTRATION. Chapter 82.32 RCW applies 4
to the administration of this chapter.5
NEW SECTION. Sec. 6. A new section is added to chapter 82.08 6
RCW to read as follows: 7
QUARTERLY TRANSFER. The state treasurer shall transfer 30 percent 8
of the revenues collected pursuant to the tax imposed in section 3 of 9
this act each quarter to the learning device and technology account 10
created in section 8 of this act. 11
Sec. 7. RCW 82.32.145 and 2020 c 301 s 6 are each amended to 12
read as follows: 13
(1) Whenever the department has issued a warrant under RCW 14
82.32.210 for the collection of unpaid trust fund taxes from a 15
limited liability business entity and that business entity has been 16
terminated, dissolved, or abandoned, or is insolvent, the department 17
may pursue collection of the entity's unpaid trust fund taxes, 18
including penalties and interest on those taxes, against any or all 19
of the responsible individuals. For purposes of this subsection, 20
"insolvent" means the condition that results when the sum of the 21
entity's debts exceeds the fair market value of its assets. The 22
department may presume that an entity is insolvent if the entity 23
refuses to disclose to the department the nature of its assets and 24
liabilities. 25
(2) Personal liability under this section may be imposed for 26
state and local trust fund taxes. 27
(3)(a) For a responsible individual who is the current or a 28
former chief executive or chief financial officer, liability under 29
this section applies regardless of fault or whether the individual 30
was or should have been aware of the unpaid trust fund tax liability 31
of the limited liability business entity. 32
(b) For any other responsible individual, liability under this 33
section applies only if he or she willfully fails to pay or to cause 34
to be paid to the department the trust fund taxes due from the 35
limited liability business entity. 36
p. 5 HB 1517
(4)(a) Except as provided in this subsection (4)(a), a 1
responsible individual who is the current or a former chief executive 2
or chief financial officer is liable under this section only for 3
trust fund tax liability accrued during the period that he or she was 4
the chief executive or chief financial officer. However, if the 5
responsible individual had the responsibility or duty to remit 6
payment of the limited liability business entity's trust fund taxes 7
to the department during any period of time that the person was not 8
the chief executive or chief financial officer, that individual is 9
also liable for trust fund tax liability that became due during the 10
period that he or she had the duty to remit payment of the limited 11
liability business entity's taxes to the department but was not the 12
chief executive or chief financial officer. 13
(b) All other responsible individuals are liable under this 14
section only for trust fund tax liability that became due during the 15
period he or she had the responsibility or duty to remit payment of 16
the limited liability business entity's taxes to the department.17
(5) Persons described in subsection (3)(b) of this section are 18
exempt from liability under this section in situations where 19
nonpayment of the limited liability business entity's trust fund 20
taxes is due to reasons beyond their control as determined by the 21
department by rule. 22
(6) Any person having been issued a notice of assessment under 23
this section is entitled to the appeal procedures under RCW 24
82.32.160, 82.32.170, 82.32.180, 82.32.190, and 82.32.200.25
(7) This section does not relieve the limited liability business 26
entity of its trust fund tax liability or otherwise impair other tax 27
collection remedies afforded by law. 28
(8) Collection authority and procedures prescribed in this 29
chapter apply to collections under this section. 30
(9) The definitions in this subsection apply throughout this 31
section unless the context clearly requires otherwise.32
(a) "Chief executive" means: The president of a corporation; or 33
for other entities or organizations other than corporations or if the 34
corporation does not have a president as one of its officers, the 35
highest ranking executive manager or administrator in charge of the 36
management of the company or organization. 37
(b) "Chief financial officer" means: The treasurer of a 38
corporation; or for entities or organizations other than corporations 39
or if a corporation does not have a treasurer as one of its officers, 40
p. 6 HB 1517
the highest senior manager who is responsible for overseeing the 1
financial activities of the entire company or organization.2
(c) "Limited liability business entity" means a type of business 3
entity that generally shields its owners from personal liability for 4
the debts, obligations, and liabilities of the entity, or a business 5
entity that is managed or owned in whole or in part by an entity that 6
generally shields its owners from personal liability for the debts, 7
obligations, and liabilities of the entity. Limited liability 8
business entities include corporations, limited liability companies, 9
limited liability partnerships, trusts, general partnerships and 10
joint ventures in which one or more of the partners or parties are 11
also limited liability business entities, and limited partnerships in 12
which one or more of the general partners are also limited liability 13
business entities. 14
(d) "Manager" has the same meaning as in RCW 25.15.006.15
(e) "Member" has the same meaning as in RCW 25.15.006, except 16
that the term only includes members of member-managed limited 17
liability companies. 18
(f) "Officer" means any officer or assistant officer of a 19
corporation, including the president, vice president, secretary, and 20
treasurer. 21
(g)(i) "Responsible individual" includes any current or former 22
officer, manager, member, partner, or trustee of a limited liability 23
business entity with an unpaid tax warrant issued by the department.24
(ii) "Responsible individual" also includes any current or former 25
employee or other individual, but only if the individual had the 26
responsibility or duty to remit payment of the limited liability 27
business entity's unpaid trust fund tax liability reflected in a tax 28
warrant issued by the department. 29
(iii) Whenever any taxpayer has one or more limited liability 30
business entities as a member, manager, or partner, "responsible 31
individual" also includes any current and former officers, members, 32
or managers of the limited liability business entity or entities or 33
of any other limited liability business entity involved directly in 34
the management of the taxpayer. For purposes of this subsection 35
(9)(g)(iii), "taxpayer" means a limited liability business entity 36
with an unpaid tax warrant issued against it by the department.37
(h) "Trust fund taxes" means taxes collected from purchasers and 38
held in trust under RCW 82.08.050, including taxes imposed under RCW 39
82.08.020, 82.08.150, ((and)) 82.51.010, and section 3 of this act.40
p. 7 HB 1517
(i) "Willfully fails to pay or to cause to be paid" means that 1
the failure was the result of an intentional, conscious, and 2
voluntary course of action. 3
NEW SECTION. Sec. 8. A new section is added to chapter 28A.650 4
RCW to read as follows: 5
NEW ACCOUNT. The learning device and technology account is 6
created in the state treasury. Revenues to the account consist of 7
revenues collected pursuant to section 3 of this act and transferred 8
pursuant to section 6 of this act and appropriations and grants. 9
Expenditures from the account must be used for the purposes of this 10
chapter and RCW 43.330.412. Moneys in the account may be spent only 11
after appropriation. 12
NEW SECTION. Sec. 9. JOINT LEGISLATIVE AUDIT AND REVIEW 13
COMMITTEE. (1) By June 1, 2030, the joint legislative audit and 14
review committee must perform a study and review the effectiveness of 15
the increased funding provided pursuant to this chapter to the 16
various digital equity programs, including but not limited to the 17
digital equity opportunity program created in RCW 43.330.412, the 18
digital equity plan created in RCW 43.330.539, and the digital equity 19
planning grant program established in RCW 43.330.5393. The study must 20
include:21
(a) A review of the broad digital equity supports, including the 22
number of devices distributed, amount spent on devices, the amount 23
spent on software, the number of technology support full-time 24
equivalents, the amount spent on technology support full-time 25
equivalents, and the number of classes offered; 26
(b) A review of the office of the superintendent of public 27
instruction digital equity programs, including the number of student 28
devices, the number of instructional devices, the number of 29
technology support full-time equivalents, the amount spent on student 30
devices, the amount spent on instructional devices, the amount spent 31
on technology full-time equivalents, the district's federal reduced-32
price lunch program participation percentage; 33
(c) A review of the state board for community and technical 34
colleges digital equity program, including credit and noncredit 35
classes related to adult basic education digital skills, the cost to 36
the colleges to provide digital skills instruction, the amount spent 37
on technology support full-time equivalents, the amount spent by 38
p. 8 HB 1517
colleges on parking lot Wi-Fi, the amount spent by colleges on device 1
lending, the costs associated with maintaining devices and services, 2
the amount of device and software lending for students with 3
disabilities, and the department of corrections and state board for 4
community and technical college student devices and software 5
purchases for incarcerated, or formerly incarcerated, individuals;6
(d) A review of the digital equity plan created in RCW 43.330.539 7
and the department of commerce's digital navigator program, including 8
the effectiveness in achieving the strategies and objectives to 9
reduce the digital divide in Washington, assessment on the inclusion 10
of the 39 state counties and more than 29 federally recognized 11
tribes, coordination with the federal broadband equity, access, and 12
deployment program and digital equity actions, and outcomes in 13
aligning success with the driving factors behind current state 14
efforts and investments to maximize positive outcomes for 15
Washingtonians. This includes state efforts driven by the governor's 16
five priority goals and the legislature, in addition to regional, 17
local, and tribal near-term and long-term objectives; and18
(e) A review of Washington state agencies roles and actions in: 19
Programs, investments, policy, grants, integration of digital 20
inclusion programs into agency service delivery systems, agency's 21
community engagements in overcoming digital equity challenges, and 22
ensuring that all residents have the opportunity to participate fully 23
in the digital world. 24
(2) This section expires January 1, 2032. 25
NEW SECTION. Sec. 10. Sections 2 through 5 and 9 of this act 26
constitute a new chapter in Title 82 RCW.27
NEW SECTION. Sec. 11. This act is necessary for the immediate 28
preservation of the public peace, health, or safety, or support of 29
the state government and its existing public institutions, and takes 30
effect June 1, 2025.31
--- END ---
p. 9 HB 1517