[Filed March 27, 2020, 1:33 p.m., effective March 27, 2020, 1:33 p.m.]

Effective Date of Rule: Immediately upon filing.

Purpose: WAC 314-02-109 What are the quarterly reporting and payment requirements for a spirits retailer license?, the Washington state liquor and cannabis board (board/WSLCB) has adopted an emergency rule to amend WAC 314-02-109 that provides a retroactive waiver of penalties for taxes that become due under RCW 66.24.630 and 66.28.370 while Proclamation 20-13 is in effect.

Citation of Rules Affected by this Order: Amending WAC 314-02-109.

Statutory Authority for Adoption: RCW 66.24.630, 66.28.370, 66.08.0501.

Under RCW 34.05.350 the agency for good cause finds that immediate adoption, amendment, or repeal of a rule is necessary for the preservation of the public health, safety, or general welfare, and that observing the time requirements of notice and opportunity to comment upon adoption of a permanent rule would be contrary to the public interest.

Reasons for this Finding: On February 29, 2020, Governor Inslee issued Proclamation 20-05 that confirmed the person-to-person spread of the novel coronavirus (COVID-19) in Washington state, and proclaimed a State of Emergency for all counties throughout the state of Washington based on the COVID-19 outbreak in the United States.

On March 16, 2020, Governor Inslee issued Proclamation 20-13 that imposed statewide limits on food and beverage services, and areas of congregation to limit opportunities for disease exposure and transmission in the state. Proclamation 20-13 was based on both guidance from the United States Center for Disease Control and Prevention to reduce the size of gatherings from two hundred fifty persons to fifty persons, and the necessity to prohibit any number of people from congregating in public venues for the purposes of entertainment, recreation, food or beverage service, theater, bowling or other similar activities.

The board administers licensing, enforcement and education services for establishments that sell alcohol for on and off premises consumption. Consistent with statute, regulation and administrative provisions, licensees under the administration of the board are subject to various taxes and fees dependent on product and license type. Licensees are required to timely report and remit those taxes and fees to the board. If the board determines that a licensee is delinquent in reporting or remitting any of the required taxes and fees, including any penalties on required taxes, the board may suspend, or deny renewal or issuance of a license.

All entities and license types under the authority of the board have been adversely impacted by the COVID-19 pandemic, and enforcing statutes and rules related to these entities and license types affects the ability of these entities to maintain and sustain operations while effectively participating in combating the spread of COVID-19.

The board has the authority under RCW 66.24.630 and 66.28.370 to both assess and waive penalties for spirits retail licenses. This emergency rule:


•	Provides a waiver of penalties, retroactive to February 29, 2020, for taxes that become due while Governor's Proclamation 20-13 is in effect;
•	Supports the ability of businesses to adjust to the COVID-19 outbreak; and
•	Reduces economic hardships suffered by businesses during the temporary suspension of business consistent with Governor's Proclamation 20-13.

This rule does not relieve any WSLCB licensee from its statutory obligation to remit taxes to the WSLCB.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

Number of Sections Adopted at the Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's own Initiative: New 0, Amended 1, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.

Number of Sections Adopted using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 1, Repealed 0.

Date Adopted: March 27, 2020.

AMENDATORY SECTION(Amending WSR 17-12-030, filed 5/31/17, effective 7/1/17)

WAC 314-02-109What are the quarterly reporting and payment requirements for a spirits retailer license?

(1) A spirits retailer must submit quarterly reports and payments to the board.

The required reports must be:

(a) On a form furnished by the board;

(b) Filed every quarter, including quarters with no activity or payment due;

(c) Submitted, with payment due, to the board on or before the twenty-fifth day following the tax quarter (e.g., Quarter 1 (Jan., Feb., Mar.) report is due April 25th). When the twenty-fifth day of the month falls on a Saturday, Sunday, or a legal holiday, the filing must be postmarked by the U.S. Postal Service no later than the next postal business day; and

(d) Filed separately for each liquor license held.

(2) What if a spirits retailer licensee fails to report or pay, or reports or pays late? Failure of a spirits retailer licensee to submit its quarterly reports and payment to the board as required in subsection (1) of this section will be sufficient grounds for the board to suspend or revoke the liquor license.

Failure of a spirits retailer licensee to submit its quarterly reports and payment to the board for two consecutive quarters will be sufficient grounds for the board to revoke the liquor license.

A penalty of one percent per month will be assessed on any payments postmarked after the twenty-fifth day quarterly report is due. When the twenty-fifth day of the month falls on a Saturday, Sunday, or a legal holiday, the filing must be postmarked by the U.S. Postal Service no later than the next postal business day.

Absent a postmark, the date received at the Washington state liquor and cannabis board, or designee, will be used to determine if penalties are to be assessed.

(3) Subsection (2) of this section is waived, retroactive to February 29, 2020, while Governor's Proclamation 20-13 is in effect.