BILL REQ. #:  S-4232.1 

Read first time 01/31/12.   Referred to Committee on Transportation.

     AN ACT Relating to providing transparency and legislative oversight of tribal fuel tax agreements; amending RCW 82.36.450 and 82.38.310; and declaring an emergency.

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

Sec. 1   RCW 82.36.450 and 2007 c 515 s 19 are each amended to read as follows:
     (1) The governor may enter into an agreement with any federally recognized Indian tribe located on a reservation within this state regarding motor vehicle fuel taxes included in the price of fuel delivered to a retail station wholly owned and operated by a tribe, tribal enterprise, or tribal member licensed by the tribe to operate a retail station located on reservation or trust property. The agreement may provide mutually agreeable means to address any tribal immunities or any preemption of the state motor vehicle fuel tax.
     (2) The provisions of this section do not repeal existing state/tribal fuel tax agreements or consent decrees in existence on May 15, 2007. The state and the tribe may agree to substitute an agreement negotiated under this section for an existing agreement or consent decree, or to enter into an agreement using a methodology similar to the state/tribal fuel tax agreements in effect on May 15, 2007. For any state/tribal fuel tax agreement in existence as of the effective date of this section, the governor must by no later than May 15, 2013, complete such actions as are permitted under those agreements to renegotiate their terms to conform to those required by subsection (3) of this section. Any new agreement or modified existing agreement negotiated after the effective date of this section must contain terms as required in subsection (3) of this section.
     (3) ((If a new)) Any agreement ((is negotiated, the agreement)) must:
     (a) Contain certification by the state and the tribe that legal incidence of the tax under this chapter falls on the tribe;
     (b) Require that the tribe or the tribal retailer acquire all motor vehicle fuel only from persons or companies operating lawfully in accordance with this chapter as a motor vehicle fuel distributor, supplier, importer, or blender, or from a tribal distributor, supplier, importer, or blender lawfully doing business according to all applicable laws;
     (((b))) (c) Provide that the tribe will expend fuel tax proceeds ((or equivalent amounts on: Planning, construction, and maintenance of roads, bridges, and boat ramps; transit services and facilities; transportation planning; police services; and other highway-related purposes;
     (c))) on highway purposes as set forth in Article II, section 40 of the Washington Constitution;
     (d) Include provisions for audits or other means of ensuring compliance to certify ((the number of gallons of motor vehicle fuel purchased by the tribe for resale at tribal retail stations, and the use of fuel tax proceeds or their equivalent for the purposes identified in (b) of this subsection. Compliance reports must be delivered to the director of the department of licensing)) the tribe is in compliance with (b) and (c) of this subsection. The auditor must be selected jointly by the director of the department of licensing and the tribe. Auditor reports verifying compliance with this act must be delivered by the tribe to the director of the department of licensing within time frames established by the department.
     (4) The legislature must appropriate the funds necessary to implement the agreements in this section.
     (5) Information from the tribe or tribal retailers received by the state or open to state review under the terms of an agreement ((shall be deemed to be personal information under RCW 42.56.230(3)(b) and exempt from public inspection and copying)) is subject to chapter 42.56 RCW.
     (((5))) (6) The governor may delegate the power to negotiate fuel tax agreements to the department of licensing.
     (((6))) (7) The department of licensing ((shall)) must prepare and submit an annual report to the legislature on the status of existing agreements and any ongoing negotiations with tribes.

Sec. 2   RCW 82.38.310 and 2007 c 515 s 31 are each amended to read as follows:
     (1) The governor may enter into an agreement with any federally recognized Indian tribe located on a reservation within this state regarding special fuel taxes included in the price of fuel delivered to a retail station wholly owned and operated by a tribe, tribal enterprise, or tribal member licensed by the tribe to operate a retail station located on reservation or trust property. The agreement may provide mutually agreeable means to address any tribal immunities or any preemption of the state special fuel tax.
     (2) The provisions of this section do not repeal existing state/tribal fuel tax agreements or consent decrees in existence on May 15, 2007. The state and the tribe may agree to substitute an agreement negotiated under this section for an existing agreement or consent decree, or to enter into an agreement using a methodology similar to the state/tribal fuel tax agreements in effect on May 15, 2007. For any state/tribal fuel tax agreement in existence as of the effective date of this section, the governor must by no later than May 15, 2013, complete such actions as are permitted under those agreements to renegotiate their terms to conform to those required by subsection (3) of this section. Any new agreement or modified existing agreement negotiated after the effective date of this section must contain terms as required in subsection (3) of this section.
     (3) ((If a new)) Any agreement ((is negotiated, the agreement)) must:
     (a) Contain certification by the state and the tribe that legal incidence of the tax under this chapter falls on the tribe;
     (b) Require that the tribe or the tribal retailer acquire all special fuel only from persons or companies operating lawfully in accordance with this chapter as a special fuel distributor, supplier, importer, or blender, or from a tribal distributor, supplier, importer, or blender lawfully doing business according to all applicable laws;
     (((b))) (c) Provide that the tribe will expend fuel tax proceeds ((or equivalent amounts on: Planning, construction, and maintenance of roads, bridges, and boat ramps; transit services and facilities; transportation planning; police services; and other highway-related purposes;
     (c))) on highway purposes as set forth in Article II, section 40 of the Washington Constitution;
     (d) Include provisions for audits or other means of ensuring compliance to certify ((the number of gallons of special fuel purchased by the tribe for resale at tribal retail stations, and the use of fuel tax proceeds or their equivalent for the purposes identified in (b) of this subsection. Compliance reports must be delivered to the director of the department of licensing)) the tribe is in compliance with (b) and (c) of this subsection. The auditor must be selected jointly by the director of the department of licensing and the tribe. Auditor reports verifying compliance with this act must be delivered by the tribe to the director of the department of licensing within time frames established by the department.
     (4) The legislature must appropriate the funds necessary to implement the agreements in this section.
     (5) Information from the tribe or tribal retailers received by the state or open to state review under the terms of an agreement ((shall be deemed personal information under RCW 42.56.230(3)(b) and exempt from public inspection and copying)) is subject to chapter 42.56 RCW.
     (((5))) (6) The governor may delegate the power to negotiate fuel tax agreements to the department of licensing.
     (((6))) (7) The department of licensing ((shall)) must prepare and submit an annual report to the legislature on the status of existing agreements and any ongoing negotiations with tribes.

NEW SECTION.  Sec. 3   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.