By Representatives Wang, Rust, and Horn

On page 73, line 23, strike everything through line 26 on page 79 and insert:

"NEW SECTION. Sec. 801. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Barrel" means a unit of measurement of volume equal to forty-two U.S. gallons of crude oil or petroleum product.

(2) "Crude oil" means any naturally occurring liquid hydrocarbons at atmospheric temperature and pressure coming from the earth, including condensate and natural gasoline.

(3) "Department" means the department of revenue.

(4) "Marine terminal" means a facility of any kind, other than a waterborne vessel, that is used for transferring crude oil or petroleum products to or from a waterborne vessel or barge.

(5) "Navigable waters" means those waters of the state and their adjoining shorelines that are subject to the ebb and flow of the tide, including the Columbia and Snake rivers.

(6) "Person" has the meaning provided in RCW 82.04.030.

(7) "Petroleum product" means any liquid hydrocarbons at atmospheric temperature and pressure that is the product of the fractionation, distillation, or other refining or processing of crude oil, and that is used as, useable as, or may be refined as a fuel or fuel blendstock, including but not limited to, gasoline, diesel fuel, aviation fuel, bunker fuel, and fuels containing a blend of alcohol and petroleum.

(8) "Taxpayer" means the person owning crude oil or petroleum products at the time the same are off-loaded at a marine terminal in this state and who is liable for the taxes imposed by this chapter.

(9) "Waterborne vessel or barge" means any ship, barge, or other watercraft capable of travelling on the navigable waters of this state and capable of transporting any crude oil or petroleum product in quantities of ten thousand gallons or more for purposes other than providing fuel for its motor or engine.

NEW SECTION. Sec 802. (1) An oil spill response tax is imposed on the privilege of off-loading crude oil or petroleum products at a marine terminal within this state from a waterborne vessel or barge operating on the navigable waters of this state. The tax imposed in this section is levied upon the owner of the crude oil or petroleum products at the time such off-loading occurs at the rate of two cents per barrel of crude oil or petroleum product off-loaded.

(2) In addition to the tax imposed in subsection (1) of this section, an oil spill administration tax is imposed on the privilege of off-loading crude oil or petroleum products at a marine terminal within this state from a waterborne vessel or barge operating on the navigable waters of this state. The tax imposed in this section is levied upon the owner of the crude oil or petroleum products at the time such off-loading occurs at the rate of three cents per barrel of crude oil or petroleum product off-loaded.

(3) The taxes imposed by this chapter shall be collected by the marine terminal operator from the owner of the crude oil or petroleum products off-loaded at the marine terminal. If any person charged with collecting the taxes fails to bill the taxpayer for the taxes, or in the alternative has not notified the taxpayer in writing of the imposition of the taxes, or having collected the taxes, fails to pay it to the department in the manner prescribed by this chapter, whether such failure is the result of the person's own acts or the result of acts or conditions beyond the person's control, he or she shall, nevertheless, be personally liable to the state for the amount of the taxes. Payment of the taxes by the owner to a marine terminal operator shall relieve the owner from further liability for the taxes.

(4) Taxes collected under this chapter shall be held in trust until paid to the department. Any person collecting the taxes who appropriates or converts the taxes collected shall be guilty of a gross misdemeanor if the money required to be collected is not available for payment on the date payment is due. The taxes required by this chapter to be collected shall be stated separately from other charges made by the marine terminal operator in any invoice or other statement of account provided to the taxpayer.

(5) If a taxpayer fails to pay the taxes imposed by this chapter to the person charged with collection of the taxes and the person charged with collection fails to pay the taxes to the department, the department may, in its discretion, proceed directly against the taxpayer for collection of the taxes.

(6) The taxes shall be due from the marine terminal operator, along with reports and returns on forms prescribed by the department, within twenty-five days after the end of the month in which the taxable activity occurs.

(7) The amount of taxes, until paid by the taxpayer to the marine terminal operator or to the department, shall constitute a debt from the taxpayer to the marine terminal operator. Any person required to collect the taxes under this chapter who, with intent to violate the provisions of this chapter, fails or refuses to do so as required and any taxpayer who refuses to pay any taxes due under this chapter, shall be guilty of a misdemeanor as provided in chapter 9A.20 RCW.

(8) Upon prior approval of the department, the owner of crude oil or petroleum products off-loaded in this state may pay the taxes imposed by this chapter directly to the department. The department shall give its approval for direct payment under this section whenever it appears, in the department's judgment, that direct payment will enhance the administration of the taxes imposed under this chapter. The department shall provide by rule for the issuance of a direct payment certificate to any taxpayer qualifying for direct payment of the taxes. Good faith acceptance of a direct payment certificate by a terminal operator shall relieve the marine terminal operator from any liability for the collection or payment of the taxes imposed under this chapter.

(9) All receipts from the tax imposed in subsection (1) of this section shall be deposited into the state oil spill response account. All receipts from the tax imposed in subsection (2) of this section shall be deposited into the state oil spill administration account.

(10) Within forty-five days after the end of each calendar quarter, the office of financial management shall determine the balance of the oil spill response account as of the last day of that calendar quarter. Balance determinations by the office of financial management under this section are final and shall not be used to challenge the validity of any tax imposed under this chapter. The office of financial management shall promptly notify the departments of revenue and ecology of the account balance once a determination is made. For each subsequent calendar quarter, the tax imposed by subsection (1) of this section shall be imposed during the entire calendar quarter unless:

(a) Tax was imposed under subsection (1) of this section during the immediately preceding calendar quarter, and the most recent quarterly balance is more than twenty-five million dollars; or

(b) Tax was not imposed under subsection (1) of this section during the immediately preceding calendar quarter, and the most recent quarterly balance is more than fifteen million dollars.

NEW SECTION. Sec. 803. The taxes imposed under this chapter shall only apply to the first off-loading of crude oil or petroleum products at a marine terminal in this state and not to the later transporting and subsequent off-loading of the same oil or petroleum product, whether in the form originally off-loaded in this state or after refining or other processing.

NEW SECTION. Sec. 804. Credit shall be allowed against the taxes imposed under this chapter for any crude oil or petroleum products off-loaded at a marine terminal and subsequently exported from or sold for export from the state.

NEW SECTION. Sec. 805. The state oil spill response account is created in the custody of the state treasurer. All receipts from section 802(1) of this act shall be deposited in the account. The account is subject to allotment procedures under chapter 43.88 RCW. Only the director of ecology or the director's designee may authorize expenditures from the account. Expenditures from the account shall be used exclusively for the costs associated with the response to spills of crude oil or petroleum products into the navigable waters of the state. Payment of response costs under this section shall be limited to spills which the director has determined are likely to exceed fifty thousand dollars. Prior to approving an expenditure under this section, the director shall make reasonable efforts to obtain funding for response costs from the person responsible for the spill and from other sources, including the federal government. Reimbursement for response costs shall be allowed only for costs which are not covered by funds appropriated to the agencies responsible for response activities. Costs associated with the response to spills of crude oil or petroleum products shall include:

(1) Natural resource damage assessment and related activities;

(2) Spill related response, containment, wildlife rescue, cleanup, disposal, and associated costs;

(3) Interagency coordination and public information related to a response; and

(4) Appropriate travel, goods and services, contracts, and equipment.

NEW SECTION. Sec. 806. The state oil spill administration account is created in the state treasury. All receipts from section 802(2) of this act shall be deposited in the account. Moneys from the account may be spent only after appropriation. The account is subject to allotment procedures under chapter 43.88 RCW. On July 1 of each odd-numbered year, if receipts from the tax imposed by section 802(2) of this act for the previous fiscal biennium exceed the amount appropriated from the account for the previous fiscal biennium, the state treasurer shall transfer the amount of receipts exceeding the appropriation to the oil spill response account. Expenditures from the oil spill administration account shall be used exclusively for the administrative costs related to the purposes of this chapter, and chapters 90.48, 88.40, and chapter 88.-- (sections 413 through 424 of this act) RCW. Costs of administration include the costs of:

(1) Routine responses not covered under section 805 of this act;

(2) Management and staff development activities;

(3) Development of rules and policies and the state-wide plan provided for in RCW 90.48.378 as recodified by this act;

(4) Facility and vessel plan review and approval, drills, inspections, investigations, enforcement, and litigation;

(5) Interagency coordination and public outreach and education;

(6) Collection and administration of the tax provided for in chapter 82.-- RCW (sections 801 through 804 of this act); and

(7) Appropriate travel, goods and services, contracts, and equipment.

NEW SECTION. Sec. 807. The following amounts are appropriated from the oil spill administration account for the biennium ending June 30, 1993, for the purposes of this act and chapters 90.48, 90.56, 88.40, and 88.-- (sections 413 through 424 of this act) RCW.

Department of Ecology $ 2,844,000

Marine Safety Office $ 2,996,000

Department of Wildlife $ 965,000

Department of Community Development $ 500,000

Department of Fisheries $ 410,000

State Parks and Recreation Commission $ 61,000

University of Washington $ 229,000

Department of Natural Resources $ 35,000

Department of Revenue $ 120,000

Total Appropriation................$ 8,160,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The entire appropriation to the University of Washington is provided solely for the Washington sea grant program to develop and conduct a spill prevention education program in accordance with section 110 of this act; and

(2) $450,000 of the appropriation to the department of wildlife is provided solely for a marine mammal and bird rehabilitation center, of which $400,000 is for one-time capital costs and $50,000 is for biennial contract staffing costs for the center.

NEW SECTION. Sec. 808. The director of ecology shall submit a report to the appropriate standing committees of the legislature by November 1 of each even-numbered year showing detailed information regarding expenditures authorized by the director under section 805 of this act. The report shall include, but not be limited to:

(1) The total amount spent for each response for which the director has approved expenditures and the amount paid for from the spill prevention and response account;

(2) The amount recovered from a responsible party for each spill;

(3) The amount of time between a spill and the time a responsible party assumes responsibility for the response costs related to a spill;

(4) The number of incidents for which the director has determined that the responsible party or another source was available to pay for the response; and

(5) A recommendation concerning the need to continue collecting the tax under section 802(1) of this act.

This section shall expire December 31, 1996."

Renumber sections consecutively and correct any internal references accordingly.

SHB 1027 - H AMD TO REV COMM AMD (1027-S AMH REV H2490.2)

By Representative Wang

On page 115, before line 1 of the amendment, insert "Section 805 of this act

Section 806 of this act"

On page 115, line 4 of the amendment, strike "801 through 805, 807, and 808" and insert "sections 801 through 804, 809, and 810"

On page 116, line 6, after "immediately" insert ", except for sections 801 through 804, 809, and 810 of this act, which shall take effect October 1, 1991"