Z-1469               _______________________________________________

                                                   SENATE BILL NO. 6843

                        _______________________________________________

State of Washington                               51st Legislature                              1990 Regular Session

By Senator McDonald; by request of Department of Revenue

Read first time 1/30/90 and referred to Committee on  Ways & Means.

AN ACT Relating to the examination of books and records by the department of revenue; and amending RCW 82.32.110.

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

        Sec. 1.  Section 82.32.110, chapter 15, Laws of 1961 as last amended by section 27, chapter 373, Laws of 1989 and RCW 82.32.110 are each amended to read as follows:

          The  department of revenue or its duly authorized agent may examine any books, papers, records, or other data, or stock of merchandise bearing upon the amount of any tax payable or upon the correctness of any return, or for the purpose of making a return where none has been made, or in order to ascertain whether a return should be made, or in the collection of any tax liability after a tax warrant has been issued under RCW 82.32.210, or in the determination or collection of use tax of an unregistered person but the person summoned shall be a third party not the unregistered person; and may require the attendance of any person at a time and place fixed in a summons served by any sheriff in the same manner as a subpoena is served in a civil case, or served in like manner by an agent of the  department of revenue.

          The persons summoned may be required to testify and produce any books, papers, records, or data required by the  department with respect to any tax, its collection, or the liability of any person therefor.

          The  director of the department of revenue, or any duly authorized agent thereof, shall have power to administer an oath to the person required to testify; and any person giving false testimony after the administration of such oath shall be guilty of perjury in the first degree.

          If any person summoned as a witness before the  department, or its authorized agent, fails or refuses to obey the summons, or refuses to testify or answer any material questions, or to produce any book, record, paper, or data when required to do so, the person is subject to proceedings for contempt, and the  department shall thereupon institute contempt of court proceedings in the superior court of Thurston county or of the county in which such person resides.

The department of revenue shall by rule establish the rates and conditions under which payments may be made for the reasonable costs incurred by third parties in providing the information demanded by the summons authority of this section.