AN ACT Relating to alcoholic beverage control; amending RCW 66.08.180, 66.08.190, 66.08.200, 66.08.210, 66.16.010, 66.16.040, 66.20.160, 66.20.170, 66.20.180, 66.20.200, and 66.20.210; adding a new section to chapter 43.09 RCW; adding a new section to chapter 66.08 RCW; adding new sections to chapter 66.28 RCW; creating a new section; and providing an effective date.

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

NEW SECTION. Sec. 1. (1) The legislature finds that the use and consumption of alcoholic beverages by citizens and guests of the state of Washington impact individuals, families, industry, schools, and health care facilities with increasing costs and human suffering. Therefore, the legislature finds that legislation is required:

(a) To encourage and facilitate the highest level of personal, civil, corporate, industrial, and judicial responsibility relative to production, distribution, sale, and consumption of alcoholic beverages and their impact on every segment of the state of Washington; and

(b) To effect a more accurate accounting of revenues available and services rendered.

(2) The goals noted in subsection (1) (a) and (b) of this section shall be accomplished by:

(a) Establishing a license to purchase and/or consume alcoholic beverages;

(b) Requiring concurrent liability insurance coverage; and

Sec. 2. Section 77, chapter 62, Laws of 1933 ex. sess. as last amended by section 6, chapter 5, Laws of 1981 1st ex. sess. and RCW 66.08.180 are each amended to read as follows:

Moneys in the liquor revolving fund shall be distributed by the board at least once every three months in accordance with RCW 66.08.190, 66.08.200 and 66.08.210: PROVIDED, That the board shall reserve from distribution such amount not exceeding five hundred thousand dollars as may be necessary for the proper administration of this title: AND PROVIDED FURTHER, That all license fees, penalties and forfeitures derived under this act from class H licenses or class H licensees shall every three months be disbursed by the board to the University of Washington and to Washington State University for medical and biological research only, in such proportions as shall be determined by the board after consultation with the heads of said state institutions: AND PROVIDED FURTHER, That when the allocations in any biennium to the University of Washington and Washington State University shall amount to a total of one million dollars, the entire allocation for the remainder of the biennium shall be transferred to the general fund to be used by the department of social and health services solely to carry out the purposes of RCW 70.96.085, as now or hereafter amended: AND PROVIDED FURTHER, That twenty percent of the total amount derived from license fees pursuant to RCW 66.24.320, 66.24.330, 66.24.340, 66.24.350, 66.24.360, and 66.24.370, as such sections are now or hereafter amended, shall be transferred to the general fund to be used by the department of social and health services solely to carry out the purposes of RCW 70.96.085, as now or hereafter amended((: AND PROVIDED FURTHER, That one-fourth cent per liter of the tax imposed by RCW 66.24.210 shall every three months be disbursed by the board to Washington State University solely for wine and wine grape research, extension programs related to wine and wine grape research, and resident instruction in both wine grape production and the processing aspects of the wine industry in accordance with RCW 28B.30.068)). The director of financial management shall prescribe suitable accounting procedure to insure that the funds transferred to the general fund to be used by the department of social and health services ((~~and~~)) as appropriated are separately accounted for.

Sec. 3. Section 6, chapter 175, Laws of 1957 and RCW 66.08.190 are each amended to read as follows:

When excess funds are distributed, all moneys subject to distribution shall be disbursed to the state and local governments solely to defray total costs resulting from alcoholism and use of alcohol in accordance with section 14 of this 1985 act. The distribution shall be as follows:

Fifty percent to the general fund of the state, ten percent to the counties of the state, and forty percent to the incorporated cities and towns of the state.

Sec. 4. Section 7, chapter 175, Laws of 1957 as last amended by section 167, chapter 151, Laws of 1979 and RCW 66.08.200 are each amended to read as follows:

With respect to the ten percent share coming to the counties, the computations for distribution shall be made by the state agency responsible for collecting the same as follows:

The share coming to each eligible county shall be determined by a division among the eligible counties according to the relation which the population of the unincorporated area of such eligible county, as last determined by the office of financial management, bears to the population of the total combined unincorporated areas of all eligible counties, as determined by the office of financial management: PROVIDED, That no county in which the sale of liquor is forbidden in the unincorporated area thereof as the result of an election shall be entitled to share in such distribution. "Unincorporated area" means all that portion of any county not included within the limits of incorporated cities and towns.

When a special county census has been conducted for the purpose of determining the population base of a county's unincorporated area for use in the distribution of liquor funds, the census figure shall become effective for the purpose of distributing funds as of the official census date once the census results have been certified by the office of financial management and officially submitted to the office of the secretary of state.

The amount distributed to a county shall not exceed the estimate of total costs attributed to the use of alcohol calculated in accordance with section 14 of this 1985 act. Funds in excess of the county's alcohol-related expenses shall be returned to the liquor revolving fund.

Sec. 5. Section 8, chapter 175, Laws of 1957 as last amended by section 168, chapter 151, Laws of 1979 and RCW 66.08.210 are each amended to read as follows:

With respect to the forty percent share coming to the incorporated cities and towns, the computations for distribution shall be made by the state agency responsible for collecting the same as follows:

(1) The share coming to each eligible city or town shall be determined by a division among the eligible cities and towns within the state ratably on the basis of population as last determined by the office of financial management: AND PROVIDED, That no city or town in which the sale of liquor is forbidden as the result of an election shall be entitled to any share in such distribution, except to cover costs of alcohol-related expenses attributed to consumption outside such city or town.

(2) The amount distributed to a city or town shall not exceed the estimate of total costs attributed to the use of alcohol calculated in accordance with section 14 of this 1985 act. Funds in excess of the city or town's alcohol-related expenses shall be returned to the liquor revolving fund.

Sec. 6. Section 4, chapter 62, Laws of 1933 ex. sess. as last amended by section 10, chapter 172, Laws of 1939 and RCW 66.16.010 are each amended to read as follows:

(1) There shall be established at such places throughout the state as the liquor control board, constituted under this title, shall deem advisable, stores to be known as "state liquor stores," for the sale of liquor in accordance with the provisions of this title and the regulations: PROVIDED, That the prices of all liquor shall be fixed by the board from time to time so that the net annual revenue received by the board therefrom shall ((~~not exceed thirty-five percent~~)) meet the costs to the state and local governments from use of alcohol as outlined in section 14 of this 1985 act.

(2) The liquor control board may, from time to time, fix the special price at which pure ethyl alcohol may be sold to physicians and dentists and institutions regularly conducted as hospitals, for use or consumption only in such hospitals; and may also fix the special price at which pure ethyl alcohol may be sold to schools, colleges and universities within the state for use for scientific purposes. Regularly conducted hospitals may have right to purchase pure ethyl alcohol on a federal permit.

(3) The liquor control board may also fix the special price at which pure ethyl alcohol may be sold to any department, branch or institution of the state of Washington, federal government, or to any person engaged in a manufacturing or industrial business or in scientific pursuits requiring alcohol for use therein.

(4) The liquor control board may also fix a special price at which pure ethyl alcohol may be sold to any private individual, and shall make regulations governing such sale of alcohol to private individuals as shall promote, as nearly as may be, the minimum purchase of such alcohol by such persons.

(5) In the event that the liquor revolving fund falls below a five hundred thousand dollar reserve for administration of authorized programs and services under this 1985 act, liquor prices shall be adjusted, not more frequently than quarterly, to provide adequate revenues for approved programs and services.

Sec. 7. Section 7, chapter 62, Laws of 1933 ex. sess. as last amended by section 8, chapter 5, Laws of 1981 1st ex. sess. and RCW 66.16.040 are each amended to read as follows:

Except as otherwise provided by law, an employee in a state liquor store or agency may sell liquor to any person of legal age licensed to purchase alcoholic beverages ((~~and may also sell to holders of permits such liquor as may be purchased under such permits~~)).

Where ((~~there may be a question of a person's right to purchase liquor by reason of age~~)) a person claims exemption from the licensing requirement of section 15 of this 1985 act, such person shall be required to present any one of the following officially issued cards of identification which shows his/her correct age and bears his/her signature and photograph:

(1) Liquor control authority card of identification of any state or province of Canada with reciprocity.

(2) Driver's license, instruction permit, or identification card of any ((~~state or~~)) province of Canada((~~, or "identicard" issued by the Washington state department of licensing pursuant to RCW 46.20.117~~)).

(3) United States active duty military identification.

(4) Passport issued by a foreign country.

(5) Merchant Marine identification card issued by the United States Coast Guard.

The board may adopt such regulations as it deems proper covering the acceptance of such cards of identification which establish compliance with requirements of section 15 of this 1985 act.

No liquor sold under this section shall be delivered until the purchaser has paid for the liquor in cash.

Sec. 8. Section 1, chapter 67, Laws of 1949 as last amended by section 4, chapter 209, Laws of 1973 1st ex. sess. and RCW 66.20.160 are each amended to read as follows:

Words and phrases as used in RCW 66.20.160 to 66.20.210, inclusive, shall have the following meaning:

((~~"Card of identification" means any one of those cards described in RCW 66.16.040.~~))

"Licensee" means the holder of a retail liquor license issued by the board, and includes any employee or agent of the licensee.

"Store employee" means a person employed in a state liquor store or agency to sell liquor.

Sec. 9. Section 2, chapter 67, Laws of 1949 as last amended by section 5, chapter 209, Laws of 1973 1st ex. sess. and RCW 66.20.170 are each amended to read as follows:

A ((~~card of identification may for the purpose of this title and~~)) license issued under section 15 of this 1985 act or identification of an exempt user under RCW 66.16.040 for the purpose of procuring liquor, may be accepted ((~~as an identification card~~)) by any licensee or store employee and as evidence of legal age of the person presenting such card, provided the licensee or store employee complies with the conditions and procedures prescribed herein and such regulations as may be made by the board.

Sec. 10. Section 3, chapter 67, Laws of 1949 as last amended by section 6, chapter 209, Laws of 1973 1st ex. sess. and RCW 66.20.180 are each amended to read as follows:

A ((~~card of identification~~)) license issued under section 15 of this 1985 act or identification of an exempt user under RCW 66.16.040 shall be presented by the holder thereof upon request of any licensee, store employee, peace officer, or enforcement officer of the board for the purpose of aiding the licensee, store employee, peace officer, or enforcement officer of the board to determine whether or not such person is ((~~of legal age~~)) authorized to purchase liquor when such person desires to procure liquor from a licensed establishment or state liquor store or agency.

Sec. 11. Section 5, chapter 67, Laws of 1949 as last amended by section 8, chapter 209, Laws of 1973 1st ex. sess. and RCW 66.20.200 are each amended to read as follows:

It shall be unlawful for the owner of a ((~~card of identification~~)) license issued under section 15 of this 1985 act to transfer the card to any other person for the purpose of aiding such person to procure alcoholic beverages from any licensee or store employee. Any person who shall permit his ((~~card of identification~~)) license to be used by another or transfer such card to another for the purpose of aiding such transferee to obtain alcoholic beverages from a licensee or store employee, shall be guilty of a misdemeanor and upon conviction thereof shall be sentenced to pay a fine of not more than one hundred dollars or imprisonment for not more than thirty days or both. Any person not entitled thereto who unlawfully procures or has issued or transferred to him a ((~~card of identification~~)) license, and any person who possesses a ((~~card of identification~~)) license not issued to him, and any person who makes any false statement on any ((~~certification card~~)) license required by ((~~RCW 66.20.190 as now or hereafter amended,~~)) section 15 of this 1985 act, to be signed by him, shall be guilty of a misdemeanor and upon conviction thereof shall be sentenced to pay a fine of not more than one hundred dollars or imprisonment for not more than thirty days or both.

Sec. 12. Section 6, chapter 67, Laws of 1949 as last amended by section 9, chapter 209, Laws of 1973 1st ex. sess. and RCW 66.20.210 are each amended to read as follows:

No licensee or the agent or employee of the licensee, or store employee, shall be prosecuted criminally or be sued in any civil action for serving liquor to a person under legal age to purchase liquor if such person has presented a ((~~card of identification~~)) license in accordance with ((~~RCW 66.20.180, and has signed a certification card as provided in RCW 66.20.190.~~

Such card in the possession of a licensee may be offered as a defense in any hearing held by the board for serving liquor to the person who signed the card and may be considered by the board as evidence that the licensee acted in good faith)) section 15 of this 1985 act.

NEW SECTION. Sec. 13. A new section is added to chapter 43.09 RCW to read as follows:

The auditor shall periodically review the accounts of state agencies and entities of local government to determine if there is adequate support for the calculation of costs related to the use of alcohol as required under section 14 of this act.

When such costs cannot be substantiated or are increased for services required and expenditures from the liquor revolving fund have been in excess thereof or are insufficient for authorized services, subsequent apportionment from the fund to that agency or entity shall be reduced or increased an equivalent amount.

NEW SECTION. Sec. 14. A new section is added to chapter 66.08 RCW to read as follows:

(1) The moneys distributed from the liquor revolving fund to the state and to local governments under RCW 66.08.180 through 66.08.220 to defray costs resulting from alcoholic beverage sale and the consumption of alcohol shall be expended pursuant to the principles and guidelines set forth in this section.

(2) The costs to state and local government resulting from alcohol consumption include, but are not limited to:

(a) The state and local government costs of operating or supporting facilities for alcoholics under chapter 70.96 RCW;

(b) Support of alcoholism and intoxication treatment programs under chapter 70.96 RCW;

(3) The costs to state and local government resulting from use of alcohol include, but are not limited to:

(a) That portion of the total state patrol budget which represents the fraction of time spent by officers involved in arresting, processing, and testifying in court against persons charged with driving or in control of vehicles while under the influence of intoxicating liquor, or persons charged with other offenses but who claim drunkeness as part of their defense, compared with the time spent by officers arresting, processing, and testifying against all other offenders;

(b) The budgets of local law enforcement agencies shall be divided in the same manner as for the state patrol under (a) of this subsection;

(c) Each branch of the judicial system in the state shall calculate the portion of time spent on cases where the use of alcohol is a factor in the crime or as part of the defense, compared with all other cases;

(d) The amount of time teachers and school officials spend involved with students under the influence of alcohol as a percentage of total teaching time would be assessed against the school's budget.

(4) The office of financial management shall assist agencies and entities of local government in calculating the percentage of budgets spent to defray costs, under the provisions of this section, stemming from the use of alcohol.

NEW SECTION. Sec. 15. A new section is added to chapter 66.28 RCW to read as follows:

(1) No person, unless exempt under subsection (2) of this section, may purchase liquor for personal use unless such person has a valid license for such purchase in his or her possession.

(2) Persons in the following categories, who present valid evidence thereof under RCW 66.16.040, shall be exempt from the requirements of this section:

(a) Persons possessing licenses or permits to purchase liquor from another state where fees and/or profits from the regulation of liquor sales are used in part to meet some of the resulting effects of its use, by reciprocity. The liquor control board shall determine which states meet this requirement;

(b) Foreign nationals; or

(3) Liquor user licenses shall be sold only by the director of licenses in the same manner and from the same offices as drivers' licenses and identicards are sold.

(4) The director of licenses shall provide by rule procedures for modifying motor vehicle drivers' licenses and identicards issued under chapter 46.20 RCW by distinctive color and/or design so that such license or card may also constitute evidence that the holder thereof is licensed to purchase liquor for personal use.

(5) The liquor user license shall expire on the same date as does the person's driver's license or identicard. The fee for a liquor user's license shall be five dollars for a two-year term or ten dollars for a four-year term and subject to review and adjustment annually to cover administrative costs plus a proportionate share of total costs of problems pursuant to purchase and consumption of alcoholic beverages to state government. All moneys collected by the department of licenses under this section shall be deposited in the liquor revolving fund.

(6) No person may be issued a liquor user's license unless proof of liability insurance in force is presented.

NEW SECTION. Sec. 16. A new section is added to chapter 66.28 RCW to read as follows:

(1) The costs of implementing this act shall be spread over a ten-year period. Based upon costs estimated by the state auditor and the state office of financial management, payments to state and local governments shall be as follows:

(a) For fiscal year 1989-'90, approximately ten percent of payments made shall be from the liquor revolving fund and ninety percent of payments from appropriations made from the general fund;

(b) In each of the nine subsequent years, the amount paid from the liquor revolving fund shall increase by approximately ten percent additional per year, with an equal decrease in payments made from the general fund. The office of financial management shall make an annual determination of authorized program costs. In fiscal year 1998-'99, one hundred percent of payments made shall be from the liquor revolving fund.

(2) Adjustments to revenue and apportionments shall be made with the cooperation of the state auditor, the office of financial management, and the liquor control board.

(3) The legislature and the liquor control board shall cooperate with adjoining states to achieve the highest degree of reciprocity as possible.

NEW SECTION. Sec. 17. This act shall take effect on July 1, 1989.