BILL REQ. #:  S-2647.2 

Read first time 04/18/13.   Referred to Committee on Law & Justice.

     AN ACT Relating to funding and requiring the use of distributions from the additional tax on beer and strong beer for improving impaired driving safety and enforcement; amending RCW 66.24.290, 46.68.260, and 46.20.117; adding a new section to chapter 46.68 RCW; adding a new section to chapter 46.61 RCW; prescribing penalties; providing effective dates; and declaring an emergency.

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

Sec. 1   RCW 66.24.290 and 2010 1st sp.s. c 23 s 1301 are each amended to read as follows:
     (1) Any microbrewer or domestic brewery or beer distributor licensed under this title may sell and deliver beer and strong beer to holders of authorized licenses direct, but to no other person, other than the board. Any certificate of approval holder authorized to act as a distributor under RCW 66.24.270 ((shall)) must pay the taxes imposed by this section.
     (a) Every such brewery or beer distributor ((shall)) must report all sales to the board monthly, pursuant to the regulations, and ((shall)) must pay to the board as an added tax for the privilege of manufacturing and selling the beer and strong beer within the state a tax of one dollar and thirty cents per barrel of thirty-one gallons on sales to licensees within the state and on sales to licensees within the state of bottled and canned beer, including strong beer, ((shall)) must pay a tax computed in gallons at the rate of one dollar and thirty cents per barrel of thirty-one gallons.
     (b) Any brewery or beer distributor whose applicable tax payment is not postmarked by the twentieth day following the month of sale will be assessed a penalty at the rate of two percent per month or fraction thereof. Beer and strong beer ((shall)) must be sold by breweries and distributors in sealed barrels or packages.
     (c) The moneys collected under this subsection ((shall)) must be distributed as follows: (i) Three-tenths of a percent ((shall)) must be distributed to border areas under RCW 66.08.195; and (ii) of the remaining moneys: (A) Twenty percent ((shall)) must be distributed to counties in the same manner as under RCW 66.08.200; and (B) eighty percent ((shall)) must be distributed to incorporated cities and towns in the same manner as under RCW 66.08.210.
     (d) Any licensed retailer authorized to purchase beer from a certificate of approval holder with a direct shipment endorsement or a brewery or microbrewery ((shall)) must make monthly reports to the liquor control board on beer purchased during the preceding calendar month in the manner and upon such forms as may be prescribed by the board.
     (2) An additional tax is imposed on all beer and strong beer subject to tax under subsection (1) of this section. The additional tax is equal to two dollars per barrel of thirty-one gallons. All revenues collected during any month from this additional tax ((shall)) must be deposited in the state general fund by the twenty-fifth day of the following month.
     (3)(a) An additional tax is imposed on all beer and strong beer subject to tax under subsection (1) of this section. The additional tax is equal to ninety-six cents per barrel of thirty-one gallons through June 30, 1995, two dollars and thirty-nine cents per barrel of thirty-one gallons for the period July 1, 1995, through June 30, 1997, and four dollars and seventy-eight cents per barrel of thirty-one gallons thereafter.
     (b) The additional tax imposed under this subsection does not apply to the sale of the first sixty thousand barrels of beer each year by breweries that are entitled to a reduced rate of tax under 26 U.S.C. Sec. 5051, as existing on July 1, 1993, or such subsequent date as may be provided by the board by rule consistent with the purposes of this exemption.
     (c) All revenues collected from the additional tax imposed under this subsection (3) ((shall)) must be deposited in the state general fund.
     (4) An additional tax is imposed on all beer and strong beer that is subject to tax under subsection (1) of this section that is in the first sixty thousand barrels of beer and strong beer by breweries that are entitled to a reduced rate of tax under 26 U.S.C. Sec. 5051, as existing on July 1, 1993, or such subsequent date as may be provided by the board by rule consistent with the purposes of the exemption under subsection (3)(b) of this section. The additional tax is equal to one dollar and forty-eight and two-tenths cents per barrel of thirty-one gallons. By the twenty-fifth day of the following month, three percent of the revenues collected from this additional tax ((shall)) must be distributed to border areas under RCW 66.08.195 and the remaining moneys ((shall)) must be transferred to the state general fund.
     (5)(a) ((From June 1, 2010, through June 30, 2013,)) An additional tax is imposed on all beer and strong beer subject to tax under subsection (1) of this section. The additional tax is equal to fifteen dollars and fifty cents per barrel of thirty-one gallons.
     (b) The additional tax imposed under this subsection does not apply to the sale of the first sixty thousand barrels of beer each year by breweries that are entitled to a reduced rate of tax under 26 U.S.C. Sec. 5051 of the federal internal revenue code, as existing on July 1, 1993, or such subsequent date as may be provided by the board by rule consistent with the purposes of this exemption.
     (c) All revenues collected from the additional tax imposed under this subsection ((shall)) must be deposited in the ((state general fund)) impaired driving safety account created in RCW 46.68.260.
     (6) The board may make refunds for all taxes paid on beer and strong beer exported from the state for use outside the state.
     (7) The board may require filing with the board of a bond to be approved by it, in such amount as the board may fix, securing the payment of the tax. If any licensee fails to pay the tax when due, the board may forthwith suspend or cancel his or her license until all taxes are paid.

Sec. 2   RCW 46.68.260 and 2004 c 95 s 16 are each amended to read as follows:
     (1) The impaired driving safety account is created in the ((custody of the state treasurer)) state treasury. All receipts from fees collected under RCW 46.20.311 (1)(e)(ii), (2)(b)(ii), and (3)(b) shall be deposited according to RCW 46.68.041. Additionally, the tax imposed under RCW 66.24.290(5) must be deposited into the account. Expenditures from this account may be used only to fund projects to reduce impaired driving and to provide funding to local governments for costs associated with enforcing laws relating to driving and boating while under the influence of intoxicating liquor or any drug. The account is subject to allotment procedures under chapter 43.88 RCW. Moneys in the account may be spent only after appropriation.
     (2) Funds deposited into the account from the tax imposed under RCW 66.24.290(5) must first be used to fund the additional state costs as a result of Senate Bill No. 5912 (Z-0445/13) or House Bill No. 2030 (Z-0444/13); RCW 46.20.117; and section 7 of this act. This includes costs for incarceration, prosecution, public defense, treatment, and any other costs increased as a result of Senate Bill No. 5912 (Z-0445/13) or House Bill No. 2030 (Z-0444/13); and this act. The remainder must be used for the following purposes:
     (a) Fifty percent to be distributed to counties and cities as prescribed in section 3 of this act to cover the increased costs associated with Senate Bill No. 5912 (Z-0445/13) or House Bill No. 2030 (Z-0444/13); and may not supplant existing expenditures;
     (b) Fifty percent must be appropriated to the Washington traffic safety commission under RCW 43.59.010 for grants to eliminate impaired driving in accordance with the Washington state strategic highway safety plan: Target zero. The grants must include, but are not limited to, impaired driving emphasis patrols and funding for ancillary costs in relation to emphasis patrols, including costs for courts, prosecution and defense, incarceration, treatment, and other costs deemed necessary by the traffic safety commission. The traffic safety commission must also implement measures to ensure that the grant funding does not supplant existing expenses.

NEW SECTION.  Sec. 3   A new section is added to chapter 46.68 RCW to read as follows:
     (1) The distributions of the funds in RCW 46.68.260(2)(a) must be made eighty percent to counties and twenty percent to cities.
     (2) The amounts distributed to counties must be made based on a formula adopted by the traffic safety commission. The formula must, as a minimum, take into consideration population, location of traffic crashes involving persons driving under the influence of intoxicating liquor or drugs, and the number of court cases in a county involving persons driving under the influence of intoxicating liquor or drugs. The formula must be developed based on the data and research available to the traffic safety commission so that funds are distributed to locations with the most need.
     (3) The amounts distributed to cities must be made based on a formula adopted by the traffic safety commission using the same criteria as in subsection (2) of this section. Cities that cannot prosecute violations in their municipal courts under RCW 46.61.502 or 46.61.504 may not receive funds under this section.
     (4) Beginning July 1, 2013, and each July 1st thereafter, the traffic safety commission must provide the distribution information to the state treasurer. The state treasurer must distribute the funds on a quarterly basis.

Sec. 4   RCW 46.20.117 and 2012 c 80 s 6 are each amended to read as follows:
     (1) Issuance. The department ((shall)) must issue an identicard, containing a picture, if the applicant:
     (a) Does not hold a valid Washington driver's license;
     (b) Proves his or her identity as required by RCW 46.20.035; and
     (c) Pays the required fee. Except as provided in subsection (5) of this section, the fee is forty-five dollars from October 1, 2012, to June 30, 2013, and fifty-four dollars after June 30, 2013, unless an applicant is a recipient of continuing public assistance grants under Title 74 RCW, who is referred in writing by the secretary of social and health services. For those persons the fee must be the actual cost of production of the identicard.
     (2)(a) Design and term. The identicard must:
     (((a))) (i) Be distinctly designed so that it will not be confused with the official driver's license; and
     (((b))) (ii) Except as provided in subsection (5) of this section, expire on the sixth anniversary of the applicant's birthdate after issuance.
     (b) An identicard issued to a person who has been convicted under RCW 46.61.502 or 46.61.504 and whose driving privileges are restricted under RCW 46.20.720 must include a visible and identifying marker. A person with an identicard that includes a visible and identifying marker under this subsection may apply for a new identicard after restrictions under RCW 46.20.720 have been removed.
     (3) Renewal. An application for identicard renewal may be submitted by means of:
     (a) Personal appearance before the department; or
     (b) Mail or electronic commerce, if permitted by rule of the department and if the applicant did not renew his or her identicard by mail or by electronic commerce when it last expired.
     An identicard may not be renewed by mail or by electronic commerce unless the renewal issued by the department includes a photograph of the identicard holder.
     (4) Cancellation. The department may cancel an identicard if the holder of the identicard used the card or allowed others to use the card in violation of RCW 46.20.0921.
     (5) Alternative issuance/renewal/extension. The department may issue or renew an identicard for a period other than five years from October 1, 2012, to June 30, 2013, or six years after June 30, 2013, or may extend by mail or electronic commerce an identicard that has already been issued, in order to evenly distribute, as nearly as possible, the yearly renewal rate of identicard holders. The fee for an identicard issued or renewed for a period other than five years from October 1, 2012, to June 30, 2013, or six years after June 30, 2013, or that has been extended by mail or electronic commerce, is nine dollars for each year that the identicard is issued, renewed, or extended. The department may adopt any rules as are necessary to carry out this subsection.

NEW SECTION.  Sec. 5   A new section is added to chapter 46.61 RCW to read as follows:
     (1) It is unlawful for any person to sell liquor to any person who has an identifying marker on their identicard under RCW 46.20.117(2)(b) or driver's license under RCW 46.20.308(6)(c), or to permit any person who has an identifying marker on their identicard under RCW 46.20.117(2)(b) or driver's license under RCW 46.20.308(6)(c) to consume liquor on his or her premises or on any premises under his or her control. For the purposes of this subsection, "premises" includes real property, houses, buildings, and other structures, and motor vehicles and watercraft. A violation of this subsection is a misdemeanor punishable as provided for in chapter 9A.20 RCW.
     (2)(a) It is unlawful for any person who has an identifying marker on their identicard under RCW 46.20.117(2)(b) or driver's license under RCW 46.20.308(6)(c) to possess, consume, or otherwise acquire any liquor. A violation of this subsection is a gross misdemeanor punishable as provided for in chapter 9A.20 RCW.
     (b) It is unlawful for a person who has an identifying marker on their identicard under RCW 46.20.117(2)(b) or driver's license under RCW 46.20.308(6)(c) to be in a public place, or to be in a motor vehicle in a public place, while exhibiting the effects of having consumed liquor. For purposes of this subsection, exhibiting the effects of having consumed liquor means that a person has the odor of liquor on his or her breath and either: (i) Is in possession of or close proximity to a container that has or recently had liquor in it; or (ii) by speech, manner, appearance, behavior, lack of coordination, or otherwise, exhibits that he or she is under the influence of liquor.
     (3) This section does not apply to liquor given to or consumed by a person when the liquor is being used in connection with religious services and the amount consumed is the minimal amount necessary for the religious service.

NEW SECTION.  Sec. 6   Sections 1 through 3 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect July 1, 2013.

NEW SECTION.  Sec. 7   Sections 4 and 5 of this act take effect July 1, 2015.