BILL REQ. #:  H-3248.1 

Read first time 01/15/14.   Referred to Committee on Government Accountability & Oversight.

     AN ACT Relating to prohibiting local governments from taking actions preventing or impeding the creation or operation of commercial marijuana businesses licensed by the liquor control board; amending RCW 66.08.170, 82.08.170, and 66.08.050; adding a new section to chapter 69.50 RCW; 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 69.50 RCW to read as follows:
     (1) Cities, counties, and towns must cooperate with the liquor control board with respect to the establishment within their jurisdictional boundaries of businesses involved in the production, processing, or sale of recreational marijuana where such businesses are licensed under RCW 69.50.325. Subject to the regulatory requirements of this chapter, licensed marijuana businesses attempting to locate within the jurisdictional boundaries of a municipality must be treated the same as other businesses within that jurisdiction with respect to ordinances or regulations that include, but are not limited to, those pertaining to local business licensing, zoning, and land use.
     (2) Cities, counties, and towns are prohibited from enacting any ordinance or other regulation pertaining to business licensing, zoning, or land use that has the effect of preventing or impeding the establishment of a recreational marijuana business licensed under RCW 69.50.325. In the event the liquor control board determines that a municipality has engaged in regulatory practices that impede the establishment of such businesses in violation of this section, the liquor control board may:
     (a) Penalize the offending municipality by making it ineligible to receive any funds from the liquor revolving fund established in RCW 66.08.170 and the liquor excise tax fund established under RCW 82.08.170. Upon the determination that a municipality is ineligible to receive moneys from such funds under this section, the liquor control board may direct the state treasurer to withhold the revenues to which a county, city, or town would otherwise be entitled from the liquor revolving fund and the liquor excise tax fund. In the event the liquor control board later determines that the offending municipality has become compliant with the requirements of this section, it shall direct the state treasurer to resume distributing revenues from these funds to the municipality; and
     (b) Bring legal action in superior court against the offending municipality for injunctive relief for violations of this section. The municipality shall pay all court costs and other litigation-related expenses for legal actions brought under this section.

Sec. 2   RCW 66.08.170 and 2011 1st sp.s. c 50 s 959 are each amended to read as follows:
     (1) There shall be a fund, known as the "liquor revolving fund", which shall consist of all license fees, permit fees, penalties, forfeitures, and all other moneys, income, or revenue received by the board. The state treasurer shall be custodian of the fund. All moneys received by the board or any employee thereof, except for change funds and an amount of petty cash as fixed by the board within the authority of law shall be deposited each day in a depository approved by the state treasurer and transferred to the state treasurer to be credited to the liquor revolving fund. During the 2009-2011 fiscal biennium, the legislature may transfer funds from the liquor revolving ((account [fund])) fund to the state general fund and may direct an additional amount of liquor profits to be distributed to local governments. Neither the transfer of funds nor the additional distribution of liquor profits to local governments during the 2009-2011 fiscal biennium may reduce the excess fund distributions that otherwise would occur under RCW 66.08.190. During the 2011-2013 fiscal biennium, the state treasurer shall transfer from the liquor revolving fund to the state general fund forty-two million five hundred thousand dollars for fiscal year 2012 and forty-two million five hundred thousand dollars for fiscal year 2013. The transfer during the 2011-2013 fiscal biennium may not reduce the excess fund distributions that otherwise would occur under RCW 66.08.190. Sales to licensees are exempt from any liquor price increases that may result from the transfer of funds from the liquor revolving fund to the state general fund during the 2011-2013 fiscal biennium. Disbursements from the revolving fund shall be on authorization of the board or a duly authorized representative thereof. In order to maintain an effective expenditure and revenue control the liquor revolving fund shall be subject in all respects to chapter 43.88 RCW but no appropriation shall be required to permit expenditures and payment of obligations from such fund.
     (2) Transfers of funds to local governments from the liquor revolving fund are subject to the provisions of section 1 of this act. Local governments are ineligible to receive such funding if the liquor control board determines that the local government is noncompliant with the requirements of section 1 of this act.

Sec. 3   RCW 82.08.170 and 2012 2nd sp.s. c 5 s 4 are each amended to read as follows:
     (1) Except as provided in subsection (4) of this section, during the months of January, April, July, and October of each year, the state treasurer must make the transfers required under subsections (2) and (3) of this section from the liquor excise tax fund and then the apportionment and distribution of all remaining moneys in the liquor excise tax fund to the counties, cities, and towns in the following proportions: (a) Twenty percent of the moneys in the liquor excise tax fund must be divided among and distributed to the counties of the state in accordance with the provisions of RCW 66.08.200; and (b) eighty percent of the moneys in the liquor excise tax fund must be divided among and distributed to the cities and towns of the state in accordance with the provisions of RCW 66.08.210.
     (2) Each fiscal quarter and prior to making the twenty percent distribution to counties under subsection (1)(a) of this section, the treasurer shall transfer to the liquor revolving fund created in RCW 66.08.170 sufficient moneys to fund the allotments from any legislative appropriations for county research and services as provided under chapter 43.110 RCW.
     (3) During the months of January, April, July, and October of each year, the state treasurer must transfer two million five hundred thousand dollars from the liquor excise tax fund to the state general fund.
     (4) During calendar year 2012, the October distribution under subsection (1) of this section and the July and October transfers under subsections (2) and (3) of this section must not be made. During calendar year 2013, the January, April, and July distributions under subsection (1) of this section and transfers under subsections (2) and (3) of this section must not be made.
     (5) All transfers of funds to local governments from the liquor excise tax fund are subject to the provisions of section 1 of this act. Local governments are ineligible to receive such funding if the liquor control board determines that the local government is noncompliant with the requirements of section 1 of this act.

Sec. 4   RCW 66.08.050 and 2012 c 2 s 107 are each amended to read as follows:
     The board, subject to the provisions of this title and the rules, must:
     (1) Determine the nature, form and capacity of all packages to be used for containing liquor kept for sale under this title;
     (2) Execute or cause to be executed, all contracts, papers, and documents in the name of the board, under such regulations as the board may fix;
     (3) Pay all customs, duties, excises, charges and obligations whatsoever relating to the business of the board;
     (4) Require bonds from all employees in the discretion of the board, and to determine the amount of fidelity bond of each such employee;
     (5) Perform services for the state lottery commission to such extent, and for such compensation, as may be mutually agreed upon between the board and the commission;
     (6) Accept and deposit into the general fund-local account and disburse, subject to appropriation, federal grants or other funds or donations from any source for the purpose of improving public awareness of the health risks associated with alcohol consumption by youth and the abuse of alcohol by adults in Washington state. The board's alcohol awareness program must cooperate with federal and state agencies, interested organizations, and individuals to effect an active public beverage alcohol awareness program;
     (7) Perform all other matters and things, whether similar to the foregoing or not, to carry out the provisions of this title and chapter 69.50 RCW regarding the production, processing, and sale of recreational marijuana, and has full power to do each and every act necessary to the conduct of its regulatory functions, including all supplies procurement, preparation and approval of forms, and every other undertaking necessary to perform its regulatory functions whatsoever, subject only to audit by the state auditor. However, the board has no authority to regulate the content of spoken language on licensed premises where wine and other liquors are served and where there is not a clear and present danger of disorderly conduct being provoked by such language or to restrict advertising of lawful prices.

NEW SECTION.  Sec. 5   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.