S-4380.2  _______________________________________________

                         SENATE BILL 6771

          _______________________________________________

State of Washington      54th Legislature     1996 Regular Session

By Senators Fairley and Kohl

Read first time 02/07/96.  Referred to Committee on Ecology & Parks.

Providing for marine waters protection.

    AN ACT Relating to marine waters protection; and amending RCW 82.23B.020 and 90.56.510.

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

    Sec. 1.  RCW 82.23B.020 and 1995 c 399 s 214 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-half of one cent((s)) 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)) a marine waters protection 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)) four and one-half 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 ((oil spill administration)) marine waters protection 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)) integrated oil spill prevention and response program, the department of revenue, and the department of community, 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.

    Sec. 2.  RCW 90.56.510 and 1995 2nd sp.s. c 14 s 525 are each amended to read as follows:

    (1) The ((oil spill administration)) marine waters protection account is created in the state treasury.  All receipts from RCW 82.23B.020(2) 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 deposited in the account from the tax imposed by RCW 82.23B.020(2) 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.  If, on the first day of any calendar month, the balance of the oil spill response account is greater than twenty-five million dollars and the balance of the ((oil spill administration)) marine waters protection account exceeds the unexpended appropriation for the current biennium, then the tax under RCW 82.23B.020(2) shall be suspended on the first day of the next calendar month until the beginning of the following biennium, provided that the tax shall not be suspended during the last six months of the biennium.  If the tax imposed under RCW 82.23B.020(2) is suspended during two consecutive biennia, the department shall by November 1st after the end of the second biennium, recommend to the appropriate standing committees an adjustment in the tax rate.  For the biennium ending June 30, 1997, the state treasurer may transfer up to $1,718,000 from the oil spill response account to the ((oil spill administration)) marine waters protection account to support appropriations made from the ((oil spill administration)) marine waters protection account in the omnibus and transportation appropriations acts adopted not later than June 30, 1997.

    (2) Expenditures from the ((oil spill administration)) marine waters protection account shall be used exclusively for the administrative costs related to the purposes of this chapter, and chapters 90.48, 88.40, and 88.46 RCW.  Starting with the 1995-1997 biennium, the legislature shall give activities of state agencies related to prevention of oil spills priority in funding from the ((oil spill administration)) marine waters protection account.  Costs of administration include the costs of:

    (a) Routine responses not covered under RCW 90.56.500;

    (b) Management and staff development activities;

    (c) Development of rules and policies and the state-wide plan provided for in RCW 90.56.060;

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

    (e) Interagency coordination and public outreach and education;

    (f) Collection and administration of the tax provided for in chapter 82.23B RCW; and

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

NEW SECTION. Sec. 3.  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.

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