wa-law.org > bill > 2025-26 > HB 1517 > Original Bill
The legislature finds that the Washington state digital equity plan documents the findings in this section.
The legislature finds that many Washingtonians do not have access to adequate and affordable internet or internet-connected devices, making them unable to participate fully online. The legislature finds that connectivity to the internet enables residents to access school, work, job training, elder care and connections, faith programs, health care, farming resources, civic participation, and much more. The legislature finds that this digital inequity affects communities all over the state, including frontier, rural, urban, and suburban areas, and tribal lands.
The legislature reaffirms the findings in section 102, chapter 265, Laws of 2022, which state: "Access to the internet is essential to participating in modern day society including, but not limited to, attending school and work, accessing health care, paying for basic services, connecting with family and friends, civic participation, and economic survival."
The legislature recognizes that state agencies need funding to adapt their programs to include digital access and adoption. The legislature further finds that there is a need to fund community-based organizations and build public-private partnerships to reach customers who qualify for subsidies and digital skill building.
The legislature recognizes that barriers to digital equity stem from a range of systemic barriers that prevent certain populations from accessing and benefiting from digital technologies, including: Infrastructure gaps, broadband access, digital literacy, access to devices, transportation and housing, or personal challenges like limited English proficiency, disabilities, age, or social-economic position. These systemic and personal barriers should not limit access and opportunities to participate in our digital society.
The legislature recognizes that the aging population, projected to reach 27 percent by 2040, faces significant digital connectivity challenges, with 41 percent of those over 65 not using the internet and 53 percent lacking broadband access. Reliable internet is essential for older adults to access telehealth services and maintain their independence, underscoring the critical role of digital connectivity in their health and wellness.
The legislature recognizes that Washington is home to approximately 530,000 veterans, 62,000 active-duty military personnel, 18,000 national guard and reserve members, and 2,000,000 family members. Veterans without internet access are generally older, unmarried, have lower educational attainment, and earn less than those with access. Reliable internet is crucial for these individuals to access health care, benefits, and other essential resources.
The legislature recognizes that approximately 26.5 percent of Washington residents live in rural areas, facing challenges such as limited health care, education, and job opportunities, along with inadequate infrastructure. Addressing digital inequities in these areas requires investment in broadband infrastructure, internet affordability, and digital skills training.
The legislature recognizes that low literacy rates, affecting 16.1 percent of the population, and language barriers further complicate digital inclusion, particularly for the 1,130,000 residents born outside the United States, of whom 42 percent have limited English proficiency. Even among the nearly 560,000 naturalized citizens, 35 percent reported limited English proficiency, highlighting the need for accessible digital resources.
The legislature recognizes that approximately 10 percent of Washington residents lived below the poverty line in 2020, with notable disparities among children and Hispanic and Latinx communities. High-speed internet access is critical for low-income households to access educational programs, job opportunities, and financial assistance, thus promoting social and economic equity.
The legislature recognizes the need to support Washington's statewide cybersecurity strategy to protect data and privacy of individuals sharing one or more of the following characteristics: Individuals who live in covered households, individuals aged 60 and over, incarcerated individuals, other than individuals who are incarcerated in a federal correctional facility, veterans, individuals with disabilities, individuals belonging to a racial and ethnic minority, individuals living in rural areas, individuals with a language barrier, children and youth in foster care, and individuals experiencing housing instability.
The legislature recognizes the need to leverage existing workforce programs and expand community partnerships that provide increased knowledge and skills enabling populations to participate in changing workforce opportunities.
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
"Buyer" has the same meaning as in RCW 82.08.010.
[Empty]
"Retail sale" has the same meaning as in RCW 82.04.050.
"Retail sale" also means the transfer of a smart wireless device to a buyer that is partially or fully discounted by the seller in exchange for the buyer purchasing other products or services furnished in connection with the smart wireless device.
"Seller" has the same meaning as in RCW 82.08.010.
[Empty]
"Selling price" has the same meaning as in RCW 82.08.010.
"Selling price" also means:
In the case of a smart wireless device that is sold to the buyer under conditions where the selling price does not represent the true value of the smart wireless device and is sold together with other products or services for one nonitemized price, the retail selling price of the same product or similar products of like quality and character, sold in an arm's length transaction; and
In the case of installment sales of a smart wireless device, the total aggregate consideration to be paid by the buyer to the seller for the smart wireless device.
"Smart wireless device" means any type of instrument, device, machine, or equipment that is capable of wireless access to the internet. This includes, but is not limited to, internet of things, smart phones, laptop computers, tablets, wearable devices, smart speakers, gaming consoles, smart gyms, smart appliances, and smart televisions.
There is levied and collected a tax on each retail sale in this state of a smart wireless device. The amount of the tax is $2 for a device with a selling price of more than $250.
The revenue collected under this section must be deposited in the state digital equity account created in RCW 80.36.710.
The tax imposed in this chapter must be paid by the buyer to the seller. Each seller must collect from the buyer the full amount of the tax payable with respect to each taxable sale.
The tax required by this chapter, to be collected by the seller, is held in trust by the seller until paid to the department. Any seller who appropriates or converts the tax collected to the seller's own use or to any use other than the payment of the tax to the extent that the money required to be collected is not available for payment on the due date as prescribed in this chapter is guilty of a gross misdemeanor.
If any seller fails to collect the tax imposed in this chapter or, having collected the tax, fails to pay it to the department in the manner prescribed by this chapter, whether such failure is the result of the seller's own acts or the result of acts or conditions beyond the seller's control, the seller is, nevertheless, personally liable to the state for the amount of the tax.
The tax required by this chapter to be collected by the seller must be stated separately from the selling price in any sales invoice or other instrument of sale.
Chapter 82.32 RCW applies to the administration of this chapter.
The state treasurer shall transfer 30 percent of the revenues collected pursuant to the tax imposed in section 3 of this act each quarter to the learning device and technology account created in section 8 of this act.
Whenever the department has issued a warrant under RCW 82.32.210 for the collection of unpaid trust fund taxes from a limited liability business entity and that business entity has been terminated, dissolved, or abandoned, or is insolvent, the department may pursue collection of the entity's unpaid trust fund taxes, including penalties and interest on those taxes, against any or all of the responsible individuals. For purposes of this subsection, "insolvent" means the condition that results when the sum of the entity's debts exceeds the fair market value of its assets. The department may presume that an entity is insolvent if the entity refuses to disclose to the department the nature of its assets and liabilities.
Personal liability under this section may be imposed for state and local trust fund taxes.
[Empty]
For a responsible individual who is the current or a former chief executive or chief financial officer, liability under this section applies regardless of fault or whether the individual was or should have been aware of the unpaid trust fund tax liability of the limited liability business entity.
For any other responsible individual, liability under this section applies only if he or she willfully fails to pay or to cause to be paid to the department the trust fund taxes due from the limited liability business entity.
[Empty]
Except as provided in this subsection (4)(a), a responsible individual who is the current or a former chief executive or chief financial officer is liable under this section only for trust fund tax liability accrued during the period that he or she was the chief executive or chief financial officer. However, if the responsible individual had the responsibility or duty to remit payment of the limited liability business entity's trust fund taxes to the department during any period of time that the person was not the chief executive or chief financial officer, that individual is also liable for trust fund tax liability that became due during the period that he or she had the duty to remit payment of the limited liability business entity's taxes to the department but was not the chief executive or chief financial officer.
All other responsible individuals are liable under this section only for trust fund tax liability that became due during the period he or she had the responsibility or duty to remit payment of the limited liability business entity's taxes to the department.
Persons described in subsection (3)(b) of this section are exempt from liability under this section in situations where nonpayment of the limited liability business entity's trust fund taxes is due to reasons beyond their control as determined by the department by rule.
Any person having been issued a notice of assessment under this section is entitled to the appeal procedures under RCW 82.32.160, 82.32.170, 82.32.180, 82.32.190, and 82.32.200.
This section does not relieve the limited liability business entity of its trust fund tax liability or otherwise impair other tax collection remedies afforded by law.
Collection authority and procedures prescribed in this chapter apply to collections under this section.
The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
"Chief executive" means: The president of a corporation; or for other entities or organizations other than corporations or if the corporation does not have a president as one of its officers, the highest ranking executive manager or administrator in charge of the management of the company or organization.
"Chief financial officer" means: The treasurer of a corporation; or for entities or organizations other than corporations or if a corporation does not have a treasurer as one of its officers, the highest senior manager who is responsible for overseeing the financial activities of the entire company or organization.
"Limited liability business entity" means a type of business entity that generally shields its owners from personal liability for the debts, obligations, and liabilities of the entity, or a business entity that is managed or owned in whole or in part by an entity that generally shields its owners from personal liability for the debts, obligations, and liabilities of the entity. Limited liability business entities include corporations, limited liability companies, limited liability partnerships, trusts, general partnerships and joint ventures in which one or more of the partners or parties are also limited liability business entities, and limited partnerships in which one or more of the general partners are also limited liability business entities.
"Manager" has the same meaning as in RCW 25.15.006.
"Member" has the same meaning as in RCW 25.15.006, except that the term only includes members of member-managed limited liability companies.
"Officer" means any officer or assistant officer of a corporation, including the president, vice president, secretary, and treasurer.
[Empty]
"Responsible individual" includes any current or former officer, manager, member, partner, or trustee of a limited liability business entity with an unpaid tax warrant issued by the department.
"Responsible individual" also includes any current or former employee or other individual, but only if the individual had the responsibility or duty to remit payment of the limited liability business entity's unpaid trust fund tax liability reflected in a tax warrant issued by the department.
Whenever any taxpayer has one or more limited liability business entities as a member, manager, or partner, "responsible individual" also includes any current and former officers, members, or managers of the limited liability business entity or entities or of any other limited liability business entity involved directly in the management of the taxpayer. For purposes of this subsection (9)(g)(iii), "taxpayer" means a limited liability business entity with an unpaid tax warrant issued against it by the department.
"Trust fund taxes" means taxes collected from purchasers and held in trust under RCW 82.08.050, including taxes imposed under RCW 82.08.020, 82.08.150, 82.51.010, and section 3 of this act.
The learning device and technology account is created in the state treasury. Revenues to the account consist of revenues collected pursuant to section 3 of this act and transferred pursuant to section 6 of this act and appropriations and grants. Expenditures from the account must be used for the purposes of this chapter and RCW 43.330.412. Moneys in the account may be spent only after appropriation.
By June 1, 2030, the joint legislative audit and review committee must perform a study and review the effectiveness of the increased funding provided pursuant to this chapter to the various digital equity programs, including but not limited to the digital equity opportunity program created in RCW 43.330.412, the digital equity plan created in RCW 43.330.539, and the digital equity planning grant program established in RCW 43.330.5393. The study must include:
A review of the broad digital equity supports, including the number of devices distributed, amount spent on devices, the amount spent on software, the number of technology support full-time equivalents, the amount spent on technology support full-time equivalents, and the number of classes offered;
A review of the office of the superintendent of public instruction digital equity programs, including the number of student devices, the number of instructional devices, the number of technology support full-time equivalents, the amount spent on student devices, the amount spent on instructional devices, the amount spent on technology full-time equivalents, the district's federal reduced-price lunch program participation percentage;
A review of the state board for community and technical colleges digital equity program, including credit and noncredit classes related to adult basic education digital skills, the cost to the colleges to provide digital skills instruction, the amount spent on technology support full-time equivalents, the amount spent by colleges on parking lot Wi-Fi, the amount spent by colleges on device lending, the costs associated with maintaining devices and services, the amount of device and software lending for students with disabilities, and the department of corrections and state board for community and technical college student devices and software purchases for incarcerated, or formerly incarcerated, individuals;
A review of the digital equity plan created in RCW 43.330.539 and the department of commerce's digital navigator program, including the effectiveness in achieving the strategies and objectives to reduce the digital divide in Washington, assessment on the inclusion of the 39 state counties and more than 29 federally recognized tribes, coordination with the federal broadband equity, access, and deployment program and digital equity actions, and outcomes in aligning success with the driving factors behind current state efforts and investments to maximize positive outcomes for Washingtonians. This includes state efforts driven by the governor's five priority goals and the legislature, in addition to regional, local, and tribal near-term and long-term objectives; and
A review of Washington state agencies roles and actions in: Programs, investments, policy, grants, integration of digital inclusion programs into agency service delivery systems, agency's community engagements in overcoming digital equity challenges, and ensuring that all residents have the opportunity to participate fully in the digital world.
This section expires January 1, 2032.
This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect June 1, 2025.