2950 AMH GRAN H4818.7

2950 AMH GRAN H4818.7

HB 2950 - H AMD

By Representative Grant

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. A new section is added to chapter 66.08 RCW to read as follows:

(1) The legislature recognizes that Washington state has had monopoly control over the distribution and sale of beverage alcohol since the passage of the Washington state liquor control act in 1934. Although there have been no significant revisions to the act since 1934, numerous governors and legislatures have expressed strong interest regarding the need for change within Washington's liquor control system. During this time, several studies have been conducted which have generally concluded that, while the liquor control board adequately serves the public interest by preventing misuse of alcohol through education, enforcement, and controlled distribution, strategies to improve liquor sales operations and customer convenience have been developed but not implemented.

(2) It is the intent of the legislature to increase distributions from the liquor revolving account by twenty percent through a variety of improvements to the liquor control board's retail sales operations. To that end, the liquor control board is directed to immediately devise and implement strategies to improve retail sales operations. Such strategies shall include but not be limited to:

(a) Immediately extending hours of retail sales operations to include Sunday sales in all state stores and authorize the same for all agency stores;

(b) In-store merchandising;

(d) Sales of accessories and product related items; and

(e) Merchandising displays.

Sec. 2. RCW 66.08.030 and 1977 ex.s. c 115 s 1 are each amended to read as follows:

(1) For the purpose of carrying into effect the provisions of this title according to their true intent or of supplying any deficiency therein, the board may make such ((~~regulations~~)) rules not inconsistent with the spirit of this title as are ((~~deemed~~)) necessary or advisable. All ((~~regulations so made~~)) rules shall be a public record and shall be filed in the office of the code reviser, and ((~~thereupon~~)) shall have the same force and effect as if incorporated in this title. ((~~Such regulations~~)) These rules, together with a copy of this title, shall be published in pamphlets and shall be distributed as directed by the board.

(2) Without ((~~thereby~~)) limiting the generality of the provisions contained in subsection (1) of this section, it is declared that the power of the board to make ((~~regulations~~)) rules in the manner set out in that subsection shall extend to:

(a) Regulating the equipment and management of stores and warehouses in which state liquor is sold or kept, and prescribing the books and records to be kept therein and the reports to be made thereon to the board;

(b) Prescribing the duties of the employees of the board, and regulating their conduct in the discharge of their duties;

(d) Determining the classes, varieties, and brands of liquor to be kept for sale at any store;

(e) Prescribing((~~, subject to RCW 66.16.080,~~)) the hours during which the state liquor stores shall be kept open for the sale of liquor;

(f) Providing for the issuing and distributing of price lists showing the price to be paid by purchasers for each variety of liquor kept for sale under this title;

(g) Prescribing an official seal and official labels and stamps and determining the manner in which they shall be attached to every package of liquor sold or sealed under this title, including the prescribing of different official seals or different official labels for different classes of liquor;

(h) Providing for the payment by the board in whole or in part of the carrying charges on liquor shipped by freight or express;

(i) Prescribing forms to be used for purposes of this title or the ((~~regulations~~)) rules, and the terms and conditions to be contained in permits and licenses issued under this title;

(j) Prescribing the fees payable in respect of permits and licenses issued under this title for which no fees are prescribed in this title, and prescribing the fees for anything done or permitted to be done under the ((~~regulations~~)) rules;

(k) Prescribing the kinds and quantities of liquor which may be kept on hand by the holder of a special permit for the purposes named in the permit, regulating the manner in which the same shall be kept and disposed of, and providing for the inspection of the same at any time at the instance of the board;

(l) Regulating the sale of liquor kept by the holders of licenses which entitle the holder to purchase and keep liquor for sale;

(m) Prescribing the records of purchases or sales of liquor kept by the holders of licenses, and the reports to be made thereon to the board, and providing for inspection of the records so kept;

(n) Prescribing the kinds and quantities of liquor for which a prescription may be given, and the number of prescriptions which may be given to the same patient within a stated period;

(o) Prescribing the manner of giving and serving notices required by this title or the ((~~regulations~~)) rules, where not otherwise provided for in this title;

(p) Regulating premises in which liquor is kept for export from the state, or from which liquor is exported, prescribing the books and records to be kept therein and the reports to be made thereon to the board, and providing for the inspection of the premises and the books, records and the liquor so kept;

(q) Prescribing the conditions and qualifications requisite for the obtaining of club licenses and the books and records to be kept and the returns to be made by clubs, prescribing the manner of licensing clubs in any municipality or other locality, and providing for the inspection of clubs;

(r) Prescribing the conditions, accommodations, and qualifications requisite for the obtaining of licenses to sell beer and wines, and regulating the sale of beer and wines ((~~thereunder~~));

(s) Specifying and regulating the time and periods when, and the manner, methods, and means by which manufacturers shall deliver liquor within the state; and the time and periods when, and the manner, methods, and means by which liquor may lawfully be conveyed or carried within the state;

(t) Providing for the making of returns by brewers of their sales of beer shipped within the state, or from the state, showing the gross amount of ((~~such~~)) the sales and providing for the inspection of brewers' books and records, and for the checking of the accuracy of any ((~~such~~)) returns;

(u) Providing for the making of returns by the wholesalers of beer whose breweries are located beyond the boundaries of the state;

(v) Providing for the making of returns by any other liquor manufacturers, showing the gross amount of liquor produced or purchased, the amount sold within and exported from the state, and to whom so sold or exported, and providing for the inspection of the premises of any ((~~such~~)) liquor manufacturers, their books and records, and for the checking of any ((~~such~~)) return;

(w) Providing for the giving of fidelity bonds by any or all of the employees of the board((~~: PROVIDED, That~~)). However, the premiums ((~~therefor~~)) shall be paid by the board;

(x) Providing for the shipment by mail or common carrier of liquor to any person holding a permit and residing in any unit which has, by election pursuant to this title, prohibited the sale of liquor therein;

(y) Prescribing methods of manufacture, conditions of sanitation, standards of ingredients, quality and identity of alcoholic beverages manufactured, sold, bottled, or handled by licensees and the board; and conducting from time to time, in the interest of the public health and general welfare, scientific studies and research relating to alcoholic beverages and the use and effect thereof; and

(z) Seizing, confiscating, and destroying all alcoholic beverages manufactured, sold, or offered for sale within this state which do not conform in all respects to the standards prescribed by this title or the ((~~regulations~~)) rules of the board((~~: PROVIDED, Nothing herein contained shall be construed as authorizing~~)). The liquor board ((to)) may not prescribe, alter, limit, or in any way change the present law as to the quantity or percentage of alcohol used in the manufacturing of wine or other alcoholic beverages.

Sec. 3. RCW 66.08.190 and 2000 c 227 s 2 are each amended to read as follows:

(1) When excess funds are distributed, all moneys subject to distribution, except those provided under subsection (4) of this section, shall be disbursed as follows:

(a) Three-tenths of one percent to border areas under RCW 66.08.195; and

(b) From the amount remaining after distribution under (a) of this subsection, fifty percent to the general fund of the state, ten percent to the counties of the state, and forty percent to the incorporated cities and towns of the state.

(2) During the months of July, October, January, and April of each year, prior to disbursing the distribution to incorporated cities and towns under subsection (1)(b) of this section, the treasurer shall deduct from that distribution an amount that, when combined with any cash balance in the city and town research services account, will fund that quarter's allotments under RCW 43.88.110 from any legislative appropriation from the city and town research services account. The treasurer shall deposit the amount deducted into the city and town research services account.

(3) The governor may notify and direct the state treasurer to withhold the revenues to which the counties and cities are entitled under this section if the counties or cities are found to be in noncompliance pursuant to RCW 36.70A.340.

(4) Any funds that exceed the amount that would have been expected otherwise for the quarter, based on the amount available for distribution in the same quarter of the year preceding the year in which this section becomes effective, increased by the applicable fiscal growth factor or factors as defined in RCW 43.135.025 and as forecast by the office of financial management in November of the preceding year, shall be transferred to the county public health account under RCW 70.05.125.

Sec. 4. RCW 70.05.125 and 1998 c 266 s 1 are each amended to read as follows:

(1) The county public health account is created in the state treasury. Funds deposited in the county public health account shall be distributed by the state treasurer to each local public health jurisdiction based upon amounts certified to it by the department of community, trade, and economic development in consultation with the Washington state association of counties. The account shall include funds distributed under RCW ((~~82.44.110~~)) 66.08.190, 82.08.160, and 82.14.200(8) and such funds as are appropriated to the account from the health services account under RCW 43.72.900, the public health services account under RCW 43.72.902, and such other funds as the legislature may appropriate to it.

(2)(a) The director of the department of community, trade, and economic development shall certify the amounts to be distributed to each local public health jurisdiction using 1995 as the base year of actual city contributions to local public health.

(b) Only if funds are available and in an amount no greater than available funds under RCW 82.14.200(8), the department of community, trade, and economic development shall adjust the amount certified under (a) of this subsection to compensate for any annexation of an area with fifty thousand residents or more to any city as a result of a petition during calendar year 1996 or 1997, or for any city that became newly incorporated as a result of an election during calendar year 1994 or 1995. The amount to be adjusted shall be equal to the amount which otherwise would have been lost to the health jurisdiction due to the annexation or incorporation as calculated using the jurisdiction's 1995 funding formula.

(c) The county treasurer shall certify the actual 1995 city contribution to the department. Funds in excess of the base shall be distributed proportionately among the health jurisdictions based on incorporated population figures as last determined by the office of financial management.

(3) Moneys distributed under this section shall be expended exclusively for local public health purposes.

Sec. 5. RCW 82.08.160 and 1982 1st ex.s. c 35 s 4 are each amended to read as follows:

(1) On or before the twenty-fifth day of each month, all taxes collected under RCW 82.08.150 during the preceding month shall be remitted to the state department of revenue, to be deposited with the state treasurer. Upon receipt of such moneys, except for those moneys provided in subsection (2) of this section, the state treasurer shall credit sixty-five percent of the sums collected and remitted under RCW 82.08.150 (1) and (2) and one hundred percent of the sums collected and remitted under RCW 82.08.150 (3) and (4) to the state general fund and thirty-five percent of the sums collected and remitted under RCW 82.08.150 (1) and (2) to a fund which is hereby created to be known as the "liquor excise tax fund."

(2) Any moneys received by the state treasurer in excess of the amount that would have been expected otherwise for the month, based on the amount received in the same month of the year preceding the year in which this section becomes effective, increased by the applicable fiscal growth factor or factors as defined in RCW 43.135.025 and as forecast by the office of financial management in November of the preceding year, shall be transferred to the county public health account under RCW 70.05.125.

NEW SECTION. Sec. 6. A new section is added to chapter 82.14 RCW to read as follows:

(1) A county legislative authority in a county with a population of less than one million may submit an authorizing proposition to the county voters and, if the proposition is approved by a majority of persons voting, impose a sales and use tax in accordance with the terms of this chapter. The rate of tax under this subsection shall not exceed two-tenths of one percent of the selling price in the case of a sales tax, or value of the article used, in the case of a use tax.

(2) The tax authorized in this section shall be in addition to any other taxes authorized by law and shall be collected from those persons who are taxable by the state under chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event within the county, except the tax shall not apply to the retail sale or the use of a motor vehicle, as defined in RCW 46.04.320.

(3) In a county with a population of four hundred thousand or more but less than one million, money received under this section shall be shared between the county and the cities under one of the following options:

(a)(i) Sixty percent shall be retained by the county, and (ii) forty percent shall be distributed to incorporated cities in the county under an interlocal agreement between the cities and the county that includes a formula that is determined by the cities in the county in consultation with the association of Washington cities; or

(b) An allocation determined by formula pursuant to an interlocal agreement between the county and a group of incorporated cities that represent at least fifty percent of the total incorporated population in the county.

(4) In a county with a population of less than four hundred thousand, money received under this section shall be shared between the county and the cities under one of the following options:

(a)(i) Seventy-five percent shall be retained by the county, and (ii) twenty-five percent shall be distributed to incorporated cities in the county under an interlocal agreement between the cities and the county that includes a formula that is determined by the cities in the county in consultation with the association of Washington cities; or

Sec. 7. RCW 84.34.230 and 1995 c 318 s 8 are each amended to read as follows:

For the purpose of acquiring conservation futures ((~~as well as~~)) and other rights and interests in real property pursuant to RCW 84.34.210 and 84.34.220, a county may levy an amount not to exceed ((~~six and one-quarter~~)) ten cents per thousand dollars of assessed valuation against the assessed valuation of all taxable property within the county. The limitations in RCW 84.52.043 shall not apply to the tax levy authorized in this section. Any rights or interests in real property acquired under this section must be located within the assessing county.

Sec. 8. RCW 84.34.240 and 1971 ex.s. c 243 s 5 are each amended to read as follows:

Any ((~~board of~~)) county ((~~commissioners~~)) legislative authority may establish by resolution a special fund which may be termed a conservation futures fund to which it may credit all taxes levied pursuant to RCW 84.34.230. Amounts placed in this fund ((~~may~~)) must be used ((~~solely~~)) for the purpose of acquiring rights and interests in real property pursuant to the terms of RCW 84.34.210 and 84.34.220. Nothing in this section shall be construed as limiting in any manner methods and funds otherwise available to a county for financing the acquisition of such rights and interests in real property. Any rights or interests in real property acquired under this section must be located within the assessing county.

NEW SECTION. Sec. 9. A new section is added to chapter 82.46 RCW to read as follows:

(1) Subject to subsections (4) and (5) of this section, the legislative authority of any county may impose an additional excise tax on the purchase and sale of real property in the county at the rate of one-half of one percent of the selling price. The proceeds of the tax shall be used exclusively for the development of affordable housing including acquisition, building, rehabilitation, and maintenance and operation of housing for very low, low, and moderate income persons and those with special needs.

(2) Revenues generated from the tax imposed under this section shall be placed in an affordable housing account administered by the county. Disbursements from the account shall be made following a competitive grant and loan process. The county legislative authority shall determine a mechanism for receiving grant and loan applications, and criteria by which the applications shall be approved and funded. Eligible recipients of grants and loans from the account shall be private nonprofit, affordable housing providers, the housing authority for the county, or other housing programs conducted or funded by a public agency, or by a public agency in partnership with a private nonprofit entity.

(3) The taxes imposed under this section shall be imposed in the same manner and on the same occurrences, and are subject to the same conditions, as the taxes under chapter 82.45 RCW, except that the tax shall be the obligation of both the purchaser and the seller, as determined by the county legislative authority, with at least one-half of the obligation being that of the purchaser. The county may enforce the obligation through an action of debt against the purchaser or seller or may foreclose the lien on the property in the same manner prescribed for the foreclosure of mortgages. The imposition of the tax is effective thirty days after the election at which the tax is authorized.

(4)(a) No tax may be imposed under this section unless approved by a majority of the voters of the county voting, for a specified period and for a specified maximum rate. This vote must follow either:

(i) The adoption of a resolution by the county legislative authority proposing this action; or

(ii) The filing of a petition proposing this action with the county auditor, signed by county voters at least equal in number to ten percent of the total number of voters in the county who voted in the preceding general election.

(b) The ballot proposition shall be submitted to the voters of the county at the next general election occurring at least sixty days after a petition is filed, or at any special election prior to this general election called for this purpose by the county legislative authority.

(5) No tax may be imposed under this section unless the county imposes a tax under RCW 82.46.070 at the maximum rate and the tax was imposed by January 1, 2003.

(6) A plan for the expenditure of the proceeds of the tax imposed by this section shall be prepared by the county legislative authority at least sixty days before the election if the proposal is initiated by resolution of the county legislative authority, or within six months after the tax has been authorized by the voters if the proposal is initiated by petition. Prior to the adoption of this plan, the elected officials of cities located within the county shall be consulted and at least one public hearing shall be held to obtain public comment. The proceeds of the tax shall be expended in conformance with this plan.

NEW SECTION. Sec. 10. A new section is added to Title 36 RCW to read as follows:

(1) Counties may create by resolution a transitional benefit district for the purpose of management, control, improvement, and maintenance of infrastructure and assets, including water and sewer systems, but excluding streets and highways, of cities that are making the transition from incorporated to unincorporated status subject to the terms in this section. No transitional benefit district may be formed until after the terms of disincorporation under chapter 35.07 RCW have been met.

(2) A transitional benefit district is a municipal corporation, an independent taxing authority within the meaning of Article VII, section 1 of the state Constitution, and a taxing district within the meaning of Article VII, section 2 of the state Constitution.

(3) A transitional benefit district shall be governed by the legislative authority of the county in which the district is located. A transitional benefit district shall constitute a body corporate and shall possess all the usual powers of a corporation for public purposes as well as all other powers that may now or hereafter be specifically conferred by statute, including, but not limited to, the authority to hire employees, staff, and services, to enter into contracts, to sue and be sued, and to issue bonds. All the powers and authorities granted to cities pursuant to Title 35 RCW, Title 35A RCW, and all the powers and authorities granted to counties pursuant to this title necessary to meet its purpose are granted to transitional benefit districts.

(4) A transitional benefit district may acquire and transfer real and personal property by lease, sublease, purchase, or sale.

(5) A transitional benefit district may receive the assets of a city or a former portion of a city, unless there are remaining debts and obligations. If such debts and obligations exist, a district may not receive the assets until the completion of the disincorporation process in chapter 35.07 RCW.

(6) A transitional benefit district is authorized to levy taxes on all taxable property only when the debts and obligations of the city have been satisfied under the disincorporation process in chapter 35.07 RCW.

(7) The powers and authorities granted to a transitional benefit district under this section shall terminate twenty-five years from the date of the formation of the transitional benefit district.

NEW SECTION. Sec. 11. RCW 66.16.080 (Sunday closing) and 1988 c 101 s 1 & 1933 ex.s. c 62 s 11 are each repealed.

NEW SECTION. Sec. 12. 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. 13. This act takes effect July 1, 2002."

Correct the title.