Passed by the House February 13, 2012 Yeas 96   ________________________________________ Speaker of the House of Representatives Passed by the Senate February 27, 2012 Yeas 49   ________________________________________ President of the Senate | I, Barbara Baker, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is HOUSE BILL 2758 as passed by the House of Representatives and the Senate on the dates hereon set forth. ________________________________________ Chief Clerk | |
Approved ________________________________________ Governor of the State of Washington | Secretary of State State of Washington |
State of Washington | 62nd Legislature | 2012 Regular Session |
Read first time 02/01/12. Referred to Committee on Ways & Means.
AN ACT Relating to strengthening the department of revenue's ability to collect spirits taxes imposed under RCW 82.08.150; amending RCW 82.03.190, 66.24.010, 66.08.150, 34.05.422, and 82.32.145; reenacting and amending RCW 82.32.080; adding a new section to chapter 82.08 RCW; adding a new section to chapter 66.28 RCW; creating a new section; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 A new section is added to chapter 82.08 RCW,
to be codified between RCW 82.08.150 and 82.08.160, to read as follows:
(1)(a) If the department determines that a taxpayer is more than
thirty days delinquent in reporting or remitting spirits taxes on a tax
return or assessed by the department, including any applicable
penalties and interest on such taxes, the department may request that
the liquor control board suspend the taxpayer's spirits license or
licenses and refuse to renew any existing spirits license held by the
taxpayer or issue any new spirits license to the taxpayer. The
department must provide written notice to the affected taxpayer of the
department's request to the liquor control board.
(b) Before the department may make a request to the liquor control
board as authorized in (a) of this subsection (1), the department must
have provided the taxpayer with at least seven calendar days prior
written notice. This notice must inform the taxpayer that the
department intends to request that the liquor control board suspend the
taxpayer's spirits license or licenses and refuse to renew any existing
license of the taxpayer or issue any new spirits license to the
taxpayer unless, within seven calendar days of the date of the notice,
the taxpayer submits any unfiled tax returns for reporting spirits
taxes and remits full payment of its outstanding spirits tax liability
to the department or negotiates payment arrangements for the unpaid
spirits taxes. The notice required by this subsection (1)(b) must
include information listing any unfiled tax returns; the amount of
unpaid spirits taxes, including any applicable penalties and interest;
who to contact to inquire about payment arrangements; and that the
taxpayer may seek administrative review by the department of the
notice, and the deadline for seeking such review. Nothing in this
subsection (1)(b) requires the department to enter into any payment
arrangement proposed by a taxpayer if the department determines that
the taxpayer's proposal is not satisfactory.
(c) The department may not make a request to the liquor control
board under subsection (1)(a) of this section relating to any spirits
taxes that are the subject of pending administrative review by the
department.
(2) A taxpayer's right to administrative review of the notice
required in subsection (1)(b) of this section:
(a) May be conducted under any rule adopted pursuant to RCW
82.01.060(4) or as a brief adjudicative proceeding under RCW 34.05.485
through 34.05.494; and
(b) Does not include the right to challenge the amount of any
spirits taxes assessed by the department if the taxpayer previously
sought or could have sought administrative review of the assessment as
provided in RCW 82.32.160.
(3) The notices required by this section may be provided
electronically in accordance with RCW 82.32.135.
(4) For purposes of this section:
(a) "Spirits license" has the same meaning as in RCW
66.24.010(3)(c); and
(b) "Spirits taxes" means the taxes imposed in RCW 82.08.150.
Sec. 2 RCW 82.32.080 and 2011 c 24 s 1 and 2010 2nd sp.s. c 2 s
2 are each reenacted and amended to read as follows:
(1) When authorized by the department, payment of the tax may be
made by uncertified check under such rules as the department
prescribes, but, if a check so received is not paid by the bank on
which it is drawn, the taxpayer, by whom such check is tendered, will
remain liable for payment of the tax and for all legal penalties and
interest, the same as if such check had not been tendered.
(2)(a) Except as otherwise provided in this subsection, payment of
the tax must be made by electronic funds transfer, as defined in RCW
82.32.085. As an alternative to electronic funds transfer, the
department may authorize other forms of electronic payment, such as
payment by credit card. All taxes administered by this chapter are
subject to this requirement, except that the department may exclude any
taxes not reported on the combined excise tax return or any successor
return from the electronic payment requirement in this subsection.
(b) The department may waive the electronic payment requirement in
this subsection for any taxpayer or class of taxpayers, for good cause
or for whom the department has assigned a reporting frequency that is
less than quarterly. In the discretion of the department, a waiver
under this subsection may be made temporary or permanent, and may be
made on the department's own motion.
(c) The department is authorized to accept payment of taxes by
electronic funds transfer or other acceptable forms of electronic
payment from taxpayers that are not subject to the mandatory electronic
payment requirements in this subsection.
(3)(a) Except as otherwise provided in this subsection, returns
must be filed electronically using the department's online tax filing
service or other method of electronic reporting as the department may
authorize.
(b) The department may waive the electronic filing requirement in
this subsection for any taxpayer or class of taxpayers, for good cause
or for whom the department has assigned a reporting frequency that is
less than quarterly. In the discretion of the department, a waiver
under this subsection may be made temporary or permanent, and may be
made on the department's own motion.
(c) The department is authorized to allow electronic filing of
returns from taxpayers that are not subject to the mandatory electronic
filing requirements in this subsection.
(4)(a)(i) The department, for good cause shown, may extend the time
for making and filing any return, and may grant such reasonable
additional time within which to make and file returns as it may deem
proper, but any permanent extension granting the taxpayer a reporting
date without penalty more than ten days beyond the due date, and any
extension in excess of thirty days must be conditional on deposit with
the department of an amount to be determined by the department which is
approximately equal to the estimated tax liability for the reporting
period or periods for which the extension is granted. In the case of
a permanent extension or a temporary extension of more than thirty days
the deposit must be deposited within the state treasury with other tax
funds and a credit recorded to the taxpayer's account which may be
applied to taxpayer's liability upon cancellation of the permanent
extension or upon reporting of the tax liability where an extension of
more than thirty days has been granted.
(ii) The department must review the requirement for deposit at
least annually and may require a change in the amount of the deposit
required when it believes that such amount does not approximate the tax
liability for the reporting period or periods for which the extension
is granted.
(b) During a state of emergency declared under RCW 43.06.010(12),
the department, on its own motion or at the request of any taxpayer
affected by the emergency, may extend the time for making or filing any
return as the department deems proper. The department may not require
any deposit as a condition for granting an extension under this
subsection (4)(b).
(5)(a) The department must keep full and accurate records of all
funds received and disbursed by it. Subject to the provisions of RCW
82.32.105, 82.32.052, and 82.32.350, the department must apply the
payment of the taxpayer ((first against penalties and interest, and
then upon the tax, without regard to any direction of the taxpayer)) in
the following order, without regard to any direction of the taxpayer:
(i) Interest; (ii) penalties; (iii) fees; (iv) other nontax amounts;
(v) taxes, except spirits taxes; and (vi) spirits taxes.
(b) For purposes of this subsection, "spirits taxes" has the same
meaning as in section 1 of this act.
(6) The department may refuse to accept any return that is not
accompanied by a remittance of the tax shown to be due thereon or that
is not filed electronically as required in this section. When such
return is not accepted, the taxpayer is deemed to have failed or
refused to file a return and is subject to the procedures provided in
RCW 82.32.100 and to the penalties provided in RCW 82.32.090. The
above authority to refuse to accept a return may not apply when a
return is timely filed electronically and a timely payment has been
made by electronic funds transfer or other form of electronic payment
as authorized by the department.
(7) Except for returns and remittances required to be transmitted
to the department electronically under this section and except as
otherwise provided in this chapter, a return or remittance that is
transmitted to the department by United States mail is deemed filed or
received on the date shown by the post office cancellation mark stamped
upon the envelope containing it. A return or remittance that is
transmitted to the department electronically is deemed filed or
received according to procedures set forth by the department.
(8)(a) For purposes of subsections (2) and (3) of this section,
"good cause" means the inability of a taxpayer to comply with the
requirements of subsection (2) or (3) of this section because:
(i) The taxpayer does not have the equipment or software necessary
to enable the taxpayer to comply with subsection (2) or (3) of this
section;
(ii) The equipment or software necessary to enable the taxpayer to
comply with subsection (2) or (3) of this section is not functioning
properly;
(iii) The taxpayer does not have access to the internet using the
taxpayer's own equipment;
(iv) The taxpayer does not have a bank account or a credit card;
(v) The taxpayer's bank is unable to send or receive electronic
funds transfer transactions; or
(vi) Some other circumstance or condition exists that, in the
department's judgment, prevents the taxpayer from complying with the
requirements of subsection (2) or (3) of this section.
(b) "Good cause" also includes any circumstance that, in the
department's judgment, supports the efficient or effective
administration of the tax laws of this state, including providing
relief from the requirements of subsection (2) or (3) of this section
to any taxpayer that is voluntarily collecting and remitting this
state's sales or use taxes on sales to Washington customers but has no
legal requirement to be registered with the department.
Sec. 3 RCW 82.03.190 and 1998 c 54 s 2 are each amended to read
as follows:
(1) Except as provided in subsection (2) of this section, any
person having received notice of a denial of a petition or a notice of
determination made under RCW 82.32.160, 82.32.170, 82.34.110, or
82.49.060 may appeal by filing in accordance with RCW 1.12.070 a notice
of appeal with the board of tax appeals within thirty days after the
mailing of the notice of such denial or determination. In the notice
of appeal the taxpayer ((shall)) must set forth the amount of the tax
which the taxpayer contends should be reduced or refunded and the
reasons for such reduction or refund, in accordance with rules of
practice and procedure prescribed by the board. However, if the notice
of appeal relates to an application made to the department under
chapter 82.34 RCW, the taxpayer ((shall)) must set forth the amount to
which the taxpayer claims the credit or exemption should apply, and the
grounds for such contention, in accordance with rules of practice and
procedure prescribed by the board. The board ((shall)) must transmit
a copy of the notice of appeal to the department and all other named
parties within thirty days of its receipt by the board. If the
taxpayer intends that the hearing before the board be held pursuant to
the administrative procedure act (chapter 34.05 RCW), the notice of
appeal ((shall)) must also so state. In the event that the notice of
appeal does not so state, the department may, within thirty days from
the date of its receipt of the notice of appeal, file with the board
notice of its intention that the hearing be held pursuant to the
administrative procedure act.
(2) No person may file a notice of appeal with the board of tax
appeals to contest the amount of spirits taxes assessed or asserted to
be due by the department of revenue unless the person has first paid
the full amount of the contested spirits taxes. For purposes of this
subsection, "spirits taxes" has the same meaning as in section 1 of
this act.
Sec. 4 RCW 66.24.010 and 2011 c 195 s 1 are each amended to read
as follows:
(1) Every license ((shall)) must be issued in the name of the
applicant, and the holder thereof ((shall)) may not allow any other
person to use the license.
(2) For the purpose of considering any application for a license,
or the renewal of a license, the board may cause an inspection of the
premises to be made, and may inquire into all matters in connection
with the construction and operation of the premises. For the purpose
of reviewing any application for a license and for considering the
denial, suspension, revocation, or renewal or denial thereof, of any
license, the liquor control board may consider any prior criminal
conduct of the applicant including an administrative violation history
record with the board and a criminal history record information check.
The board may submit the criminal history record information check to
the Washington state patrol and to the identification division of the
federal bureau of investigation in order that these agencies may search
their records for prior arrests and convictions of the individual or
individuals who filled out the forms. The board ((shall)) must require
fingerprinting of any applicant whose criminal history record
information check is submitted to the federal bureau of investigation.
The provisions of RCW 9.95.240 and of chapter 9.96A RCW ((shall)) do
not apply to such cases. Subject to the provisions of this section,
the board may, in its discretion, grant or deny the renewal or license
applied for. Denial may be based on, without limitation, the existence
of chronic illegal activity documented in objections submitted pursuant
to subsections (8)(d) and (12) of this section. Authority to approve
an uncontested or unopposed license may be granted by the board to any
staff member the board designates in writing. Conditions for granting
such authority ((shall)) must be adopted by rule. No retail license of
any kind may be issued to:
(a) A person doing business as a sole proprietor who has not
resided in the state for at least one month prior to receiving a
license, except in cases of licenses issued to dining places on
railroads, boats, or aircraft;
(b) A copartnership, unless all of the members thereof are
qualified to obtain a license, as provided in this section;
(c) A person whose place of business is conducted by a manager or
agent, unless such manager or agent possesses the same qualifications
required of the licensee;
(d) A corporation or a limited liability company, unless it was
created under the laws of the state of Washington or holds a
certificate of authority to transact business in the state of
Washington.
(3)(a) The board may, in its discretion, subject to the provisions
of RCW 66.08.150, suspend or cancel any license; and all rights of the
licensee to keep or sell liquor thereunder ((shall)) must be suspended
or terminated, as the case may be.
(b) The board ((shall)) must immediately suspend the license or
certificate of a person who has been certified pursuant to RCW
74.20A.320 by the department of social and health services as a person
who is not in compliance with a support order. If the person has
continued to meet all other requirements for reinstatement during the
suspension, reissuance of the license or certificate ((shall be)) is
automatic upon the board's receipt of a release issued by the
department of social and health services stating that the licensee is
in compliance with the order.
(c) Upon written notification by the department of revenue in
accordance with section 1 of this act that a person is more than thirty
days delinquent in reporting or remitting spirits taxes to the
department, the board must suspend all spirits licenses held by that
person. The board must also refuse to renew any existing spirits
license of, or issue any new spirits license to, the person or any
other applicant controlled directly or indirectly by that person. The
board may not reinstate a person's spirits license or renew or issue a
new spirits license to that person, or an applicant controlled directly
or indirectly by that person, until such time as the department of
revenue notifies the board that the person is current in reporting and
remitting spirits taxes or that the department consents to the
reinstatement or renewal of the person's spirits license or the
issuance of a new spirits license to the person. For purposes of this
section: (i) "Spirits license" means any license issued by the board
under the authority of this chapter that authorizes the licensee to
sell spirits; and (ii) "spirits taxes" has the same meaning as in
section 1 of this act.
(d) The board may request the appointment of administrative law
judges under chapter 34.12 RCW who ((shall)) must have power to
administer oaths, issue subpoenas for the attendance of witnesses and
the production of papers, books, accounts, documents, and testimony,
examine witnesses, and to receive testimony in any inquiry,
investigation, hearing, or proceeding in any part of the state, under
such rules and regulations as the board may adopt.
(((d))) (e) Witnesses ((shall be)) are allowed fees and mileage
each way to and from any such inquiry, investigation, hearing, or
proceeding at the rate authorized by RCW 34.05.446. Fees need not be
paid in advance of appearance of witnesses to testify or to produce
books, records, or other legal evidence.
(((e))) (f) In case of disobedience of any person to comply with
the order of the board or a subpoena issued by the board, or any of its
members, or administrative law judges, or on the refusal of a witness
to testify to any matter regarding which he or she may be lawfully
interrogated, the judge of the superior court of the county in which
the person resides, on application of any member of the board or
administrative law judge, ((shall)) must compel obedience by contempt
proceedings, as in the case of disobedience of the requirements of a
subpoena issued from said court or a refusal to testify therein.
(4) Upon receipt of notice of the suspension or cancellation of a
license, the licensee ((shall)) must forthwith deliver up the license
to the board. Where the license has been suspended only, the board
((shall)) must return the license to the licensee at the expiration or
termination of the period of suspension. The board ((shall)) must
notify all vendors in the city or place where the licensee has its
premises of the suspension or cancellation of the license; and no
employee may allow or cause any liquor to be delivered to or for any
person at the premises of that licensee.
(5)(a) At the time of the original issuance of a spirits, beer, and
wine restaurant license, the board ((shall)) must prorate the license
fee charged to the new licensee according to the number of calendar
quarters, or portion thereof, remaining until the first renewal of that
license is required.
(b) Unless sooner canceled, every license issued by the board
((shall)) must expire at midnight of the thirtieth day of June of the
fiscal year for which it was issued. However, if the board deems it
feasible and desirable to do so, it may establish, by rule pursuant to
chapter 34.05 RCW, a system for staggering the annual renewal dates for
any and all licenses authorized by this chapter. If such a system of
staggered annual renewal dates is established by the board, the license
fees provided by this chapter ((shall)) must be appropriately prorated
during the first year that the system is in effect.
(6) Every license issued under this section ((shall be)) is subject
to all conditions and restrictions imposed by this title or by rules
adopted by the board. All conditions and restrictions imposed by the
board in the issuance of an individual license may be listed on the
face of the individual license along with the trade name, address, and
expiration date. Conditions and restrictions imposed by the board may
also be included in official correspondence separate from the license.
All spirits licenses are subject to the condition that the spirits
license holder must report and remit to the department of revenue all
spirits taxes by the date due.
(7) Every licensee ((shall)) must post and keep posted its license,
or licenses, and any additional correspondence containing conditions
and restrictions imposed by the board in a conspicuous place on the
premises.
(8)(a) Unless (b) of this subsection applies, before the board
issues a new or renewal license to an applicant it ((shall)) must give
notice of such application to the chief executive officer of the
incorporated city or town, if the application is for a license within
an incorporated city or town, or to the county legislative authority,
if the application is for a license outside the boundaries of
incorporated cities or towns.
(b) If the application for a special occasion license is for an
event held during a county, district, or area fair as defined by RCW
15.76.120, and the county, district, or area fair is located on
property owned by the county but located within an incorporated city or
town, the county legislative authority ((shall)) must be the entity
notified by the board under (a) of this subsection. The board
((shall)) must send a duplicate notice to the incorporated city or town
within which the fair is located.
(c) The incorporated city or town through the official or employee
selected by it, or the county legislative authority or the official or
employee selected by it, ((shall have)) has the right to file with the
board within twenty days after the date of transmittal of such notice
for applications, or at least thirty days prior to the expiration date
for renewals, written objections against the applicant or against the
premises for which the new or renewal license is asked. The board may
extend the time period for submitting written objections.
(d) The written objections ((shall)) must include a statement of
all facts upon which such objections are based, and in case written
objections are filed, the city or town or county legislative authority
may request and the liquor control board may in its discretion hold a
hearing subject to the applicable provisions of Title 34 RCW. If the
board makes an initial decision to deny a license or renewal based on
the written objections of an incorporated city or town or county
legislative authority, the applicant may request a hearing subject to
the applicable provisions of Title 34 RCW. If such a hearing is held
at the request of the applicant, liquor control board representatives
((shall)) must present and defend the board's initial decision to deny
a license or renewal.
(e) Upon the granting of a license under this title the board
((shall)) must send written notification to the chief executive officer
of the incorporated city or town in which the license is granted, or to
the county legislative authority if the license is granted outside the
boundaries of incorporated cities or towns. When the license is for a
special occasion license for an event held during a county, district,
or area fair as defined by RCW 15.76.120, and the county, district, or
area fair is located on county-owned property but located within an
incorporated city or town, the written notification ((shall)) must be
sent to both the incorporated city or town and the county legislative
authority.
(9)(a) Before the board issues any license to any applicant, it
shall give (i) due consideration to the location of the business to be
conducted under such license with respect to the proximity of churches,
schools, and public institutions and (ii) written notice, with receipt
verification, of the application to public institutions identified by
the board as appropriate to receive such notice, churches, and schools
within five hundred feet of the premises to be licensed. The board
((shall)) may not issue a liquor license for either on-premises or off-premises consumption covering any premises not now licensed, if such
premises are within five hundred feet of the premises of any tax-supported public elementary or secondary school measured along the most
direct route over or across established public walks, streets, or other
public passageway from the main entrance of the school to the nearest
public entrance of the premises proposed for license, and if, after
receipt by the school of the notice as provided in this subsection, the
board receives written objection, within twenty days after receiving
such notice, from an official representative or representatives of the
school within five hundred feet of said proposed licensed premises,
indicating to the board that there is an objection to the issuance of
such license because of proximity to a school. The board may extend
the time period for submitting objections. For the purpose of this
section, "church" means a building erected for and used exclusively for
religious worship and schooling or other activity in connection
therewith. For the purpose of this section, "public institution" means
institutions of higher education, parks, community centers, libraries,
and transit centers.
(b) No liquor license may be issued or reissued by the board to any
motor sports facility or licensee operating within the motor sports
facility unless the motor sports facility enforces a program reasonably
calculated to prevent alcohol or alcoholic beverages not purchased
within the facility from entering the facility and such program is
approved by local law enforcement agencies.
(c) It is the intent under this subsection (9) that a retail
license ((shall)) may not be issued by the board where doing so would,
in the judgment of the board, adversely affect a private school meeting
the requirements for private schools under Title 28A RCW, which school
is within five hundred feet of the proposed licensee. The board
((shall)) must fully consider and give substantial weight to objections
filed by private schools. If a license is issued despite the proximity
of a private school, the board ((shall)) must state in a letter
addressed to the private school the board's reasons for issuing the
license.
(10) The restrictions set forth in subsection (9) of this section
((shall)) do not prohibit the board from authorizing the assumption of
existing licenses now located within the restricted area by other
persons or licenses or relocations of existing licensed premises within
the restricted area. In no case may the licensed premises be moved
closer to a church or school than it was before the assumption or
relocation.
(11)(a) Nothing in this section prohibits the board, in its
discretion, from issuing a temporary retail or distributor license to
an applicant to operate the retail or distributor premises during the
period the application for the license is pending. The board may
establish a fee for a temporary license by rule.
(b) A temporary license issued by the board under this section
((shall)) must be for a period not to exceed sixty days. A temporary
license may be extended at the discretion of the board for additional
periods of sixty days upon payment of an additional fee and upon
compliance with all conditions required in this section.
(c) Refusal by the board to issue or extend a temporary license
shall not entitle the applicant to request a hearing. A temporary
license may be canceled or suspended summarily at any time if the board
determines that good cause for cancellation or suspension exists. RCW
66.08.130 applies to temporary licenses.
(d) Application for a temporary license ((shall)) must be on such
form as the board shall prescribe. If an application for a temporary
license is withdrawn before issuance or is refused by the board, the
fee which accompanied such application ((shall)) must be refunded in
full.
(12) In determining whether to grant or deny a license or renewal
of any license, the board ((shall)) must give substantial weight to
objections from an incorporated city or town or county legislative
authority based upon chronic illegal activity associated with the
applicant's operations of the premises proposed to be licensed or the
applicant's operation of any other licensed premises, or the conduct of
the applicant's patrons inside or outside the licensed premises.
"Chronic illegal activity" means (a) a pervasive pattern of activity
that threatens the public health, safety, and welfare of the city,
town, or county including, but not limited to, open container
violations, assaults, disturbances, disorderly conduct, or other
criminal law violations, or as documented in crime statistics, police
reports, emergency medical response data, calls for service, field
data, or similar records of a law enforcement agency for the city,
town, county, or any other municipal corporation or any state agency;
or (b) an unreasonably high number of citations for violations of RCW
46.61.502 associated with the applicant's or licensee's operation of
any licensed premises as indicated by the reported statements given to
law enforcement upon arrest.
Sec. 5 RCW 66.08.150 and 2007 c 370 s 3 are each amended to read
as follows:
The action, order, or decision of the board as to any denial of an
application for the reissuance of a permit or license or as to any
revocation, suspension, or modification of any permit or license
((shall)) must be an adjudicative proceeding and subject to the
applicable provisions of chapter 34.05 RCW.
(1) An opportunity for a hearing may be provided an applicant for
the reissuance of a permit or license prior to the disposition of the
application, and if no such opportunity for a prior hearing is provided
then an opportunity for a hearing to reconsider the application must be
provided the applicant.
(2) An opportunity for a hearing must be provided a permittee or
licensee prior to a revocation or modification of any permit or license
and, except as provided in subsection (4) of this section, prior to the
suspension of any permit or license.
(3) No hearing ((shall)) may be required until demanded by the
applicant, permittee, or licensee.
(4) The board may summarily suspend a license or permit for a
period of up to one hundred eighty days without a prior hearing if it
finds that public health, safety, or welfare imperatively require
emergency action, and it incorporates a finding to that effect in its
order. Proceedings for revocation or other action must be promptly
instituted and determined. An administrative law judge may extend the
summary suspension period for up to one calendar year in the event the
proceedings for revocation or other action cannot be completed during
the initial one hundred eighty day period due to actions by the
licensee or permittee. The board's enforcement division ((shall)) must
complete a preliminary staff investigation of the violation before
requesting an emergency suspension by the board.
(5) The issues that may be considered at a hearing to contest a
suspension of a license or the denial of an application for a new
license or renewal of an existing license, under RCW 66.24.010(3)(c),
do not include the right to challenge the amount of any spirits taxes
assessed against the licensee or applicant by the department of
revenue. For purposes of this subsection, "spirits taxes" has the same
meaning as in section 1 of this act.
Sec. 6 RCW 34.05.422 and 1989 c 175 s 13 are each amended to read
as follows:
(1) Unless otherwise provided by law: (a) Applications for rate
changes and uncontested applications for licenses may, in the agency's
discretion, be conducted as adjudicative proceedings; (b) applications
for licenses that are contested by a person having standing to contest
under the law and review of denials of applications for licenses or
rate changes ((shall)) must be conducted as adjudicative proceedings;
and (c) an agency may not revoke, suspend, or modify a license unless
the agency gives notice of an opportunity for an appropriate
adjudicative proceeding in accordance with this chapter or other
statute.
(2) An agency with authority to grant or deny a professional or
occupational license ((shall)) must notify an applicant for a new or
renewal license not later than twenty days prior to the date of the
examination required for that license of any grounds for denial of the
license which are based on specific information disclosed in the
application submitted to the agency. The agency ((shall)) must notify
the applicant either that the license is denied or that the decision to
grant or deny the license will be made at a future date. If the agency
fails to give the notification prior to the examination and the
applicant is denied licensure, the examination fee ((shall)) must be
refunded to the applicant. If the applicant takes the examination, the
agency ((shall)) must notify the applicant of the result.
(3) When a licensee has made timely and sufficient application for
the renewal of a license or a new license with reference to any
activity of a continuing nature, an existing full, temporary, or
provisional license does not expire until the application has been
finally determined by the agency, and, in case the application is
denied or the terms of the new license limited, until the last day for
seeking review of the agency order or a later date fixed by order of
the reviewing court.
(4) If the agency finds that public health, safety, or welfare
imperatively requires emergency action, and incorporates a finding to
that effect in its order, summary suspension of a license may be
ordered pending proceedings for revocation or other action. These
proceedings ((shall)) must be promptly instituted and determined.
(5) This section does not apply to requests made by the department
of revenue, under the authority of section 1 of this act, to the liquor
control board to suspend a person's spirits license and to refuse to
renew any spirits license held by the person and to issue any new
spirits license to the person.
NEW SECTION. Sec. 7 A new section is added to chapter 66.28 RCW,
to be codified between RCW 66.28.030 and 66.28.040, to read as follows:
(1) By the 15th day of each month, all spirits certificate of
approval holders must file with the board, in a form and manner
required by the board, a report of all spirits delivered to purchasers
in this state during the preceding month along with a copy of the
invoices for all such purchases or other information required by the
board that would disclose the identity of the purchasers.
(2) A spirits certificate of approval holder may not ship or cause
to be transported into this state any spirits unless the purchaser to
whom the spirits are to be delivered is:
(a) Licensed by the board to sell spirits in this state, and the
license is in good standing; or
(b) Otherwise legally authorized to sell spirits in this state.
(3) The liquor control board must maintain on its web site a list
of all purchasers that meet the conditions of subsection (2) of this
section.
(4) A violation of this section is grounds for suspension of a
spirits certificate of approval license in accordance with RCW
66.08.150, in addition to any punishment as may be authorized by RCW
66.28.030.
Sec. 8 RCW 82.32.145 and 2010 1st sp.s. c 23 s 801 are each
amended to read as follows:
(1) Whenever the department has issued a warrant under RCW
82.32.210 for the collection of unpaid ((retail sales tax funds
collected and held in trust under RCW 82.08.050)) trust fund taxes from
a limited liability business entity and that business entity has been
terminated, dissolved, or abandoned, or is insolvent, the department
may pursue collection of the entity's unpaid ((sales)) trust fund
taxes, including penalties and interest on those taxes, against any or
all of the responsible individuals. For purposes of this subsection,
"insolvent" means the condition that results when the sum of the
entity's debts exceeds the fair market value of its assets. The
department may presume that an entity is insolvent if the entity
refuses to disclose to the department the nature of its assets and
liabilities.
(2) Personal liability under this section may be imposed for state
and local ((sales)) trust fund taxes.
(3)(a) For a responsible individual who is the current or a former
chief executive or chief financial officer, liability under this
section applies regardless of fault or whether the individual was or
should have been aware of the unpaid ((sales)) trust fund tax liability
of the limited liability business entity.
(b) For any other responsible individual, liability under this
section applies only if he or she willfully fails to pay or to cause to
be paid to the department the ((sales)) trust fund taxes due from the
limited liability business entity.
(4)(a) Except as provided in this subsection (4)(a), a responsible
individual who is the current or a former chief executive or chief
financial officer is liable under this section only for ((sales)) trust
fund tax liability accrued during the period that he or she was the
chief executive or chief financial officer. However, if the
responsible individual had the responsibility or duty to remit payment
of the limited liability business entity's ((sales)) trust fund taxes
to the department during any period of time that the person was not the
chief executive or chief financial officer, that individual is also
liable for ((sales)) trust fund tax liability that became due during
the period that he or she had the duty to remit payment of the limited
liability business entity's taxes to the department but was not the
chief executive or chief financial officer.
(b) All other responsible individuals are liable under this section
only for ((sales)) trust fund tax liability that became due during the
period he or she had the responsibility or duty to remit payment of the
limited liability business entity's taxes to the department.
(5) Persons described in subsection (3)(b) of this section are
exempt from liability under this section in situations where nonpayment
of the limited liability business entity's ((sales)) trust fund taxes
is due to reasons beyond their control as determined by the department
by rule.
(6) Any person having been issued a notice of assessment under this
section is entitled to the appeal procedures under RCW 82.32.160,
82.32.170, 82.32.180, 82.32.190, and 82.32.200.
(7) This section does not relieve the limited liability business
entity of its ((sales)) trust fund tax liability or otherwise impair
other tax collection remedies afforded by law.
(8) Collection authority and procedures prescribed in this chapter
apply to collections under this section.
(9) The definitions in this subsection apply throughout this
section unless the context clearly requires otherwise.
(a) "Chief executive" means: The president of a corporation; or
for other entities or organizations other than corporations or if the
corporation does not have a president as one of its officers, the
highest ranking executive manager or administrator in charge of the
management of the company or organization.
(b) "Chief financial officer" means: The treasurer of a
corporation; or for entities or organizations other than corporations
or if a corporation does not have a treasurer as one of its officers,
the highest senior manager who is responsible for overseeing the
financial activities of the entire company or organization.
(c) "Limited liability business entity" means a type of business
entity that generally shields its owners from personal liability for
the debts, obligations, and liabilities of the entity, or a business
entity that is managed or owned in whole or in part by an entity that
generally shields its owners from personal liability for the debts,
obligations, and liabilities of the entity. Limited liability business
entities include corporations, limited liability companies, limited
liability partnerships, trusts, general partnerships and joint ventures
in which one or more of the partners or parties are also limited
liability business entities, and limited partnerships in which one or
more of the general partners are also limited liability business
entities.
(d) "Manager" has the same meaning as in RCW 25.15.005.
(e) "Member" has the same meaning as in RCW 25.15.005, except that
the term only includes members of member-managed limited liability
companies.
(f) "Officer" means any officer or assistant officer of a
corporation, including the president, vice president, secretary, and
treasurer.
(g)(i) "Responsible individual" includes any current or former
officer, manager, member, partner, or trustee of a limited liability
business entity with an unpaid tax warrant issued by the department.
(ii) "Responsible individual" also includes any current or former
employee or other individual, but only if the individual had the
responsibility or duty to remit payment of the limited liability
business entity's unpaid ((sales)) trust fund tax liability reflected
in a tax warrant issued by the department.
(iii) Whenever any taxpayer has one or more limited liability
business entities as a member, manager, or partner, "responsible
individual" also includes any current and former officers, members, or
managers of the limited liability business entity or entities or of any
other limited liability business entity involved directly in the
management of the taxpayer. For purposes of this subsection
(9)(g)(iii), "taxpayer" means a limited liability business entity with
an unpaid tax warrant issued against it by the department.
(h) "Trust fund taxes" means taxes collected from purchasers and
held in trust under RCW 82.08.050, including taxes imposed under RCW
82.08.020 and 82.08.150.
(i) "Willfully fails to pay or to cause to be paid" means that the
failure was the result of an intentional, conscious, and voluntary
course of action.
NEW SECTION. Sec. 9 This act must be liberally construed to
effectuate the intent of the legislature to provide for the effective
collection of liquor taxes imposed in RCW 82.08.150.
NEW SECTION. Sec. 10 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. 11 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 takes effect
immediately.