BILL REQ. #:  H-1857.1 

READ FIRST TIME 03/01/13.   

     AN ACT Relating to the taxation of honey beekeepers; amending RCW 82.04.629, 82.04.630, 82.08.0204, and 82.12.0204; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; adding a new section to chapter 43.136 RCW; creating new sections; repealing 2008 c 314 s 7 (uncodified); providing an effective date; providing expiration dates; and declaring an emergency.

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

NEW SECTION.  Sec. 1   (1) The legislature finds that in 2008 the legislature passed Second Substitute Senate Bill No. 6468, which provided temporary tax relief for honey beekeepers. The legislature further finds that the 2008 legislation included the following intent language: "The legislature finds that recent occurrences of colony collapse disorder and the resulting loss of bee hives will have an economic impact on the state's agricultural sector. The legislature intends to provide temporary business and occupation tax relief for Washington's apiarists." The legislature further finds that in 2013, colony collapse disorder is still a significant problem for the apiary industry.
     (2) Because of the continuing problems associated with colony collapse disorder, it is the legislature's intent to extend the tax relief provided in the 2008 legislation, subject to a rigorous and periodic review of the health of honey bee colonies in Washington to determine whether colony collapse disorder is still a significant problem in the apiary industry. It is the legislature's intent that the tax relief provided in this act will not be extended when data indicates that honey bee colony survivorship has improved, as provided in the colony collapse disorder progress report, published annually by the United States department of agriculture, and data provided by the Washington state department of agriculture to the joint legislative audit and review committee.

NEW SECTION.  Sec. 2   A new section is added to chapter 82.08 RCW to read as follows:
     (1) The tax levied by RCW 82.08.020 does not apply to sales of feed to an eligible apiarist for use in the raising of a bee colony used to make honey bee products.
     (2) This exemption is available only if the buyer provides the seller with an exemption certificate in a form and manner prescribed by the department.
     (3) The definitions in RCW 82.04.629 apply to this section.
     (4) This section expires July 1, 2016.

NEW SECTION.  Sec. 3   A new section is added to chapter 82.12 RCW to read as follows:
     (1) The provisions of this chapter do not apply with respect to the use of feed to an eligible apiarist for use in the raising of a bee colony used to make honey bee products.
     (2) The definitions in RCW 82.04.629 apply to this section.
     (3) This section expires July 1, 2016.

NEW SECTION.  Sec. 4   A new section is added to chapter 43.136 RCW to read as follows:
     (1) As part of the joint legislative audit and review committee's tax preference review under this chapter for the tax preferences contained within this act, the joint legislative audit and review committee must also evaluate whether Washington state taxes are a disproportionately large percentage of the commercial beekeeper's operational or capital costs, including an analysis of the impact of Washington state taxes on similar sized businesses.
     (2) This section expires July 1, 2016.

NEW SECTION.  Sec. 5   (1) A honey bee work group must be created to address challenges facing the honey bee industry and to develop a report outlining solutions that bolster the use of Washington honey bee colonies used to pollinate tree fruits, berries, and seeds. The work group must include the following members: Two members from the Washington state beekeepers association; one apiarist as defined in RCW 15.60.005 with no less than one thousand hives; one apiarist as defined in RCW 15.60.005 with no more than twenty-five hives; one member from the Washington State University apiary lab; one member from the Washington state department of agriculture; one member from the tree fruit industry; and one member from the seed industry.
     (2) The work group may include or seek input from other agencies, organizations, or stakeholders. By December 31, 2013, and in compliance with RCW 43.01.036, the work group must submit a report to the legislature that includes the following: (a) Proposed changes to the industry's tax structure to increase competitiveness with out-of-state beekeepers for pollination contracts; (b) providing analytics and metrics to measure the value of the proposed tax structure changes; (c) proposed additional resources needed to continue applied and basic research to support commercial beekeepers in the state and to recover colony losses; (d) identifying colony levels needed to meet the pollination demands of the Washington agricultural industry; (e) identifying other policy changes that would increase the competitiveness of Washington beekeepers; (f) other industry needs that would increase the market share of pollination contracts awarded to Washington beekeepers; and (g) metrics needed to provide accountability for state resources invested in the honey bee industry.

Sec. 6   RCW 82.04.629 and 2008 c 314 s 2 are each amended to read as follows:
     (1) This chapter does not apply to amounts derived from the wholesale sale of honey bee products by an eligible apiarist who owns or keeps bee colonies and who does not qualify for an exemption under RCW 82.04.330 in respect to such sales.
     (2) The exemption provided in subsection (1) of this section does not apply to any person selling such products at retail or to any person selling manufactured substances or articles.
     (3) The following definitions in this subsection apply ((to)) throughout this section unless the context clearly requires otherwise.
     (a) "Bee colony" means a natural group of honey bees containing seven thousand or more workers and one or more queens, housed in a man-made hive with movable frames, and operated as a beekeeping unit.
     (b) "Eligible apiarist" means a person who owns or keeps one or more bee colonies and who grows, raises, or produces honey bee products for sale at wholesale and is registered under RCW 15.60.021.
     (c) "Honey bee products" means queen honey bees, packaged honey bees, honey, pollen, bees wax, propolis, or other substances obtained from honey bees. "Honey bee products" does not include manufactured substances or articles.
     (4) This section expires July 1, 2016.

Sec. 7   RCW 82.04.630 and 2008 c 314 s 3 are each amended to read as follows:
     (1) This chapter does not apply to amounts received by an eligible apiarist, as defined in RCW 82.04.629, for providing bee pollination services to a farmer using a bee colony owned or kept by the person providing the pollination services.
     (2) The definitions in RCW 82.04.213 apply to this section.
     (3) This section expires July 1, 2016.

Sec. 8   RCW 82.08.0204 and 2008 c 314 s 4 are each amended to read as follows:
     (1) The tax levied by RCW 82.08.020 does not apply to the sale of honey bees to an eligible apiarist, as defined in RCW 82.04.629. This exemption is available only if the buyer provides the seller with an exemption certificate in a form and manner prescribed by the department.
     (2) This section expires July 1, 2016.

Sec. 9   RCW 82.12.0204 and 2008 c 314 s 5 are each amended to read as follows:
     (1) The provisions of this chapter do not apply in respect to the use of honey bees by an eligible apiarist, as defined in RCW 82.04.629. This exemption is available only if the buyer provides the seller with an exemption certificate in a form and manner prescribed by the department.
     (2) This section expires July 1, 2016.

NEW SECTION.  Sec. 10   2008 c 314 s 7 (uncodified) is repealed.

NEW SECTION.  Sec. 11   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 July 1, 2013.