"NEW SECTION.  Sec. 1   A new section is added to chapter 35.102 RCW to read as follows:
     (1) Except as provided otherwise by subsection (3) of this section, by July 1, 2019, each city that imposes a business and occupation tax under this chapter must have its general business licenses issued and, if a renewal is required, renewed through the business licensing system or through a city-developed portal.
     (2) Except as provided otherwise by subsection (3) of this section, by July 1, 2019, each city that does not impose a business and occupation tax under this chapter must have its general business licenses issued and, if a renewal is required, renewed through the business licensing system or through a city-developed portal.
     (3) The department or the cities may delay or phase-in the issuance and renewal of general business licenses beyond July 1, 2019, if funding or other resources are insufficient to enable the department or the cities to comply with this section.
     (4) The department, working with affected cities, may establish a schedule for assuming the issuance and renewal of general business licenses for cities choosing this option. Cities may continue to issue and renew their general business licenses until those licenses have been incorporated into the business licensing system. A city whose general business license has been incorporated into the business licensing system must utilize the business licensing system and may not directly issue or renew those licenses.
     (5)(a) By July 1, 2017, the department must provide a report to the appropriate committees of the house of representatives and senate indicating:
     (i) What actions the department has taken to comply with this section and what the costs of those actions were;
     (ii) What actions the department anticipates taking between July 1, 2017, and July 1, 2019, to comply with the requirements of this section and what the anticipated costs of those actions will be;
     (iii) What actions the department has taken to comply with the diverse and differing needs of small, medium, and large cities subject to the requirements of this section; and
     (iv) Whether, in the department's judgment, the department believes it will be able to comply with the deadlines established in subsections (1) and (2) of this section.
     (b) The report required by (a) of this subsection must be prepared by the department in consultation with cities and other affected or interested parties.
     (6) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
     (a) "Business and occupation tax" has the same meaning as in RCW 35.102.030.
     (b) "Business licensing system" means the business licensing system or service of the department established in accordance with chapter 19.02 RCW.
     (c) "City-developed portal" means a single portal with at least five participating cities that allows for the issuance or renewal of general business licenses for all participating cities.
     (d) "Department" means the department of revenue.
     (7)(a) This section expires July 1, 2018.
     (b) The intent of the expiration date in this subsection is to afford the legislature a full opportunity to review and revise the requirements of this section to ensure that compliance with its provisions occurs in a timely, thoughtful, and appropriate manner that best meets the needs of businesses and cities throughout Washington state."