BILL REQ. #:  S-3359.3 

Read first time 02/02/12.   Referred to Committee on Ways & Means.

     AN ACT Relating to providing funding for chemical dependency treatment; amending RCW 66.24.055; adding a new section to chapter 74.50 RCW; providing an effective date; and declaring an emergency.

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

Sec. 1   RCW 66.24.055 and 2012 c 2 s 105 (Initiative Measure No. 1183) are each amended to read as follows:
     (1) There is a license for spirits distributors to (a) sell spirits purchased from manufacturers, distillers, or suppliers including, without limitation, licensed Washington distilleries, licensed spirits importers, other Washington spirits distributors, or suppliers of foreign spirits located outside of the United States, to spirits retailers including, without limitation, spirits retail licensees, special occasion license holders, interstate common carrier license holders, restaurant spirits retailer license holders, spirits, beer, and wine private club license holders, hotel license holders, sports entertainment facility license holders, and spirits, beer, and wine nightclub license holders, and to other spirits distributors; and (b) export the same from the state.
     (2) By January 1, 2012, the board must issue spirits distributor licenses to all applicants who, upon December 8, 2011, have the right to purchase spirits from a spirits manufacturer, spirits distiller, or other spirits supplier for resale in the state, or are agents of such supplier authorized to sell to licensees in the state, unless the board determines that issuance of a license to such applicant is not in the public interest.
     (3)(a) As limited by (b) of this subsection and subject to (c) of this subsection, each spirits distributor licensee must pay to the board ((for deposit into the liquor revolving fund,)) a license issuance fee ((calculated as follows:
     (i) In each of the first two years of licensure,)) of ten percent of the total revenue from all the licensee's sales of spirits made during the year for which the fee is due((, respectively; and
     (ii) In the third year of licensure and each year thereafter, five percent of the total revenue from all the licensee's sales of spirits made during the year for which the fee is due, respectively)). Fifty percent of the funds collected under this subsection (3)(a) must be deposited in the liquor revolving fund, thirty percent must be deposited into the chemical dependency treatment account created in section 3 of this act, and twenty percent must be deposited into the criminal justice treatment account under RCW 70.96A.350.
     (b) The fee required under this subsection (3) is calculated only on sales of items which the licensee was the first spirits distributor in the state to have received:
     (i) In the case of spirits manufactured in the state, from the distiller; or
     (ii) In the case of spirits manufactured outside the state, from an authorized out-of-state supplier.
     (c) By March 31, 2013, all persons holding spirits distributor licenses on or before March 31, 2013, must have paid collectively one hundred fifty million dollars or more in spirits distributor license fees. If the collective payment through March 31, 2013, totals less than one hundred fifty million dollars, the board must, according to rules adopted by the board for the purpose, collect by May 31, 2013, as additional spirits distributor license fees the difference between one hundred fifty million dollars and the actual receipts, allocated among persons holding spirits distributor licenses at any time on or before March 31, 2013, ratably according to their spirits sales made during calendar year 2012. Any amount by which such payments exceed one hundred fifty million dollars by March 31, 2013, must be credited to future license issuance fee obligations of spirits distributor licensees according to rules adopted by the board.
     (d) A retail licensee selling for resale must pay a distributor license fee under the terms and conditions in this section on resales of spirits the licensee has purchased on which no other distributor license fee has been paid. The board must establish rules setting forth the frequency and timing of such payments and reporting of sales dollar volume by the licensee, with payments due quarterly in arrears.
     (e) No spirits inventory may be subject to calculation of more than a single spirits distributor license issuance fee.
     (4) In addition to the payment set forth in subsection (3) of this section, each spirits distributor licensee renewing its annual license must pay an annual license renewal fee of one thousand three hundred twenty dollars for each licensed location.
     (5) There is no minimum facility size or capacity for spirits distributor licenses, and no limit on the number of such licenses issued to qualified applicants. License applicants must provide physical security of the product that is substantially as effective as the physical security of the distribution facilities currently operated by the board with respect to preventing pilferage. License issuances and renewals are subject to RCW 66.24.010 and the regulations promulgated thereunder, including without limitation rights of cities, towns, county legislative authorities, the public, churches, schools, and public institutions to object to or prevent issuance of local liquor licenses. However, existing distributor premises licensed to sell beer and/or wine are deemed to be premises "now licensed" under RCW 66.24.010(9)(a) for the purpose of processing applications for spirits distributor licenses.

NEW SECTION.  Sec. 2   A new section is added to chapter 74.50 RCW to read as follows:
     The chemical dependency treatment account is created in the state treasury, subject to appropriation. Funds from license fees for spirits retailers and spirits distributors must be deposited into the account, as provided in RCW 66.24.055. Expenditures from the account may only be used for programs and services provided for in this chapter.

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 March 1, 2012.