BP BHEAD INT S

AN ACT Relating to marine safety field operations; amending RCW 82.23B.020; adding a new section to chapter 88.46 RCW; adding a new section to chapter 88.44 RCW; creating a new section; prescribing penalties; providing an effective date; and declaring an emergency.

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

NEW SECTION. Sec. 1. The legislature finds that the state's economy is dependent on a healthy environment. Further, the legislature finds that marine environments are at risk due to the high volume of oil transported in state waters. Safe marine transportation is essential to prevent oil spills, provide a healthy environment and economy for the state, and reduce the risk of liability of vessel owners and operators under state and federal law for costs and damages associated with an oil spill. Past experience demonstrates that despite the tremendous cost of oil spill response and cleanup, rarely is more than fifteen percent of oil spilled on water recovered. For these reasons, the legislature finds that the maritime industry is better served by a program that works with the maritime community to encourage safe marine transportation.

The legislature also finds that a vessel's size and frequency of travel through Washington's navigable waters are significant factors in establishing the risk a vessel poses to the state's marine environment. The potential severity of a vessel oil spill increases with the amount of oil carried as cargo or fuel, or both.

The legislature declares, therefore, that to provide the best achievable protection of the state's marine environments and to provide a healthy environment and economy for the state, the office of marine safety should implement a field operations program to coordinate marine safety measures with the maritime community, federal and state agencies, and Washington's citizens.

The legislature intends that funds contributed by the maritime community to support this effort be used only for the office of marine safety's field operations program and associated administrative costs.

Sec. 2. RCW 82.23B.020 and 1992 c 73 s 7 are each amended to read as follows:

(1) An oil spill response tax is imposed on the privilege of receiving 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 immediately after receipt of the same into the storage tanks of a marine terminal from a waterborne vessel or barge at the rate of ((~~two~~)) one and six-tenths cents per barrel of crude oil or petroleum product received.

(2) In addition to the tax imposed in subsection (1) of this section, an oil spill administration tax is imposed on the privilege of receiving 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 immediately after receipt of the same into the storage tanks of a marine terminal from a waterborne vessel or barge at the rate of three and four-tenths cents per barrel of crude oil or petroleum product.

(3) The taxes imposed by this chapter shall be collected by the marine terminal operator from the taxpayer. 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 them 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 taxpayer 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.

(((11) The office of marine safety, the department of revenue, and the department of trade and economic development shall study tax credits for taxpayers employing vessels with the best achievable technology and the best available protection to reduce the risk of oil spills to the navigable waters of the state and submit the study to the appropriate standing committees of the legislature by December 1, 1992.))

NEW SECTION. Sec. 3. A new section is added to chapter 88.46 RCW to read as follows:

(1) Except as exempted in subsection (5) of this section, there is levied an assessment on all covered vessels subject to RCW 88.46.040, 88.46.050, and 88.46.060. The assessment is due and payable when a covered vessel moors or docks in Washington's waters. The administrator shall by rule set rates for each covered vessel transit based on annual vessel traffic forecasts generated by the office.

(2) The assessment levied in this section and any penalties, collection costs, or interest assessed under subsection (4) of this section shall be collected by the Washington state maritime commission under section 4 of this act.

(3) Each vessel, its tackle, apparel, and furniture, and the vessel's owner and operator is jointly and severally liable for the assessment levied in this section. If a vessel owner or operator fails to timely remit any assessment, penalty, collection costs, or interest due, the state shall have a lien on the vessel for the amount accrued, which shall be enforced in accordance with applicable law. The administrator may proceed directly against the owner, operator, or the vessel for collection of the assessment.

(4) The administrator may assess penalties up to ten thousand dollars per assessment and costs of collection against a vessel's owner or operator, or the vessel for failure to pay an assessment when due. Interest on late payments may be charged from the date the assessment was due until the date the assessment is paid at a rate computed under RCW 82.32.050(2).

(5) A tank vessel is exempt from this section if the state is prohibited from assessing the vessel under the United States Constitution, or if:

(a) The vessel's owner or operator is subject to the taxes imposed by RCW 82.23B.020; and

(b) The vessel's master possesses a certified copy of a letter from the office stating that the vessel is exempt from this section.

NEW SECTION. Sec. 4. A new section is added to chapter 88.44 RCW to read as follows:

(1) The commission or any successor organization shall collect the assessment levied in section 3 of this act, and any penalties, collection costs, or interest assessed, from all vessels subject to RCW 88.46.040, 88.46.050, and 88.46.060. Moneys collected by the commission shall be held in trust until deposited into the oil spill administration account. All penalties and interest imposed under section 3 of this act shall be deposited into the state general fund. The commission shall be entitled to reasonable collection costs by appropriation.

(2) After September 1, 1993, the commission or any successor organization shall submit to the office of marine safety a monthly accounting of vessels subject to the assessment and of moneys collected. By June 30th of each year the commission shall submit to the office of marine safety an annual accounting of each vessel subject to the assessment, the amount due, and the amount paid.

(3) The amount of assessment due, and any penalty, collection cost, or interest assessed, until paid to the commission, shall constitute a debt from the person liable for the assessment to the commission.

NEW SECTION. Sec. 5. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 6. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1993.