BP BHEAD INT S [atlas:bill]

AN ACT Relating to authorizing a credit of tribal taxes against state taxes on liquor subject to agreements regarding the state and tribal tax systems; amending RCW 66.08.050; adding a new section to chapter 43.06 RCW; adding a new section to chapter 82.08 RCW; creating a new section; and declaring an emergency.

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

NEW SECTION. Sec. 1. The legislature intends to further the government-to-government relationship between the state of Washington and the federally recognized Indian tribes in the state of Washington by authorizing the governor to enter into cooperative agreements with federally recognized Indian tribes in the state of Washington concerning the taxation of liquor. The legislature finds that these agreements will provide a means to address issues of alcohol on reservations, maintain revenue for essential government services, maintain jobs in local communities, and strengthen the relationship between Indian tribes and the state of Washington.

NEW SECTION. Sec. 2. A new section is added to chapter 43.06 RCW to read as follows:

(1) The governor may enter into cooperative agreements with any federally recognized Indian tribe in the state of Washington concerning the taxation of liquor within that tribe's reservation boundaries or upon trust land. All cooperative agreements shall meet the requirements for cooperative agreements under this section.

(2) A cooperative agreement shall provide that the tribal liquor tax is credited against the state taxes under chapters 82.08 and 82.12 RCW.

(3) An agreement under this section must include provisions for:

(a) Collection procedures for the taxes. The department of revenue, at no cost to the tribe, shall collect the tribal tax for distribution to the tribe;

(b) Details of the tribal tax, including agreement regarding the measure and base of the tax. This subsection (3)(b) is intended to make the state and tribal tax systems uniform for simplification purposes in order to reduce collection costs and minimize the burden on businesses;

(c) The tribal tax rate, such that the tribe will maintain its tax at a rate equal to or lower than an amount that produces no more than an amount equivalent to the state distribution from the taxes under chapters 82.08 and 82.12 RCW regarding liquor as defined in RCW 66.04.010;

(d) Dedicated use of tribal liquor tax revenue for substance abuse programs, alcohol-related law enforcement activities, and other public health purposes; and

(e) Agreement that the tribal tax is in lieu of all other fees and taxes on liquor and that the tribe agrees to not license or tax liquor in any other manner except as prescribed in the agreement under this section.

(4) Cooperative agreements will provide for the submission of disputes to an arbitrator or mediator and may provide for submission of disputes regarding the interpretation and administration of their provisions for judicial resolution, but a limited waiver of sovereign immunity and consent by the state for the resolution shall be conditioned upon a similar limited waiver of sovereign immunity by the Indian tribe, which waiver shall be approved or otherwise confirmed by the United States as may be required by law and to the extent permitted by law.

(5) The governor may delegate the power to negotiate cooperative agreements under this section to the department of revenue and the liquor control board jointly.

(6) For purposes of this section "federally recognized Indian tribe or nation" or "tribe" means an Indian tribal entity that is recognized as an Indian tribe by the United States secretary of the interior.

NEW SECTION. Sec. 3. A new section is added to chapter 82.08 RCW to read as follows:

Subject to section 2 of this act, a tax enacted by a federally recognized Indian tribe applicable to liquor that is also subject to tax under this chapter shall be credited against the tax imposed under this chapter. The tax shall be credited against the state share of the distribution and shall not reduce the proceeds for distribution to local governments.

Sec. 4. RCW 66.08.050 and 1997 c 228 s 1 are each amended to read as follows:

The board, subject to the provisions of this title and the rules, shall:

(1) Determine the localities within which state liquor stores shall be established throughout the state, and the number and situation of the stores within each locality;

(2) Appoint in cities and towns and other communities, in which no state liquor store is located, liquor vendors. In addition, the board may appoint, in its discretion, a manufacturer that also manufactures liquor products other than wine under a license under this title, as a vendor for the purpose of sale of liquor products of its own manufacture on the licensed premises only. Such liquor vendors shall be agents of the board and be authorized to sell liquor to such persons, firms or corporations as provided for the sale of liquor from a state liquor store, and such vendors shall be subject to such additional rules and regulations consistent with this title as the board may require;

(3) Establish all necessary warehouses for the storing and bottling, diluting and rectifying of stocks of liquors for the purposes of this title;

(4) Provide for the leasing for periods not to exceed ten years of all premises required for the conduct of the business; and for remodeling the same, and the procuring of their furnishings, fixtures, and supplies; and for obtaining options of renewal of such leases by the lessee. The terms of such leases in all other respects shall be subject to the direction of the board;

(5) Determine the nature, form and capacity of all packages to be used for containing liquor kept for sale under this title;

(6) 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;

(7) Pay all customs, duties, excises, charges and obligations whatsoever relating to the business of the board;

(8) Require bonds from all employees in the discretion of the board, and to determine the amount of fidelity bond of each such employee;

(9) 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;

(10) 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 shall cooperate with federal and state agencies, interested organizations, and individuals to effect an active public beverage alcohol awareness program;

(11) Perform all other matters and things, whether similar to the foregoing or not, to carry out the provisions of this title, and shall have full power to do each and every act necessary to the conduct of its business, including all buying, selling, preparation and approval of forms, and every other function of the business whatsoever, subject only to audit by the state auditor: PROVIDED, That the board shall have 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;

(12) Enter into cooperative agreements, jointly with the department of revenue, on behalf of the governor under section 2 of this act.

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.