S-1487.1S-0305.2 SUBSTITUTE SENATE BILL 5259 State of Washington 68th Legislature 2023 Regular Session By Senate Labor & Commerce (originally sponsored by Senators Keiser, King, Conway, Lovick, Hunt, Kuderer, Nobles, and C.
Wilson)Wilson READRead FIRSTfirst TIMEtime 02/14/23.01/11/23.
Referred to Committee on Labor & Commerce.
creating a new section;
providing an effective date;
providing expiration dates;
1 SSBSB 5259 (3) The legislature also intends to provide relief to retailers impacted by the cost of physical security improvements to prevent theft at cannabis retail establishments.
(6) The attorney general must regularly transmit to the Washington association of sheriffs and police chiefs any data received by the task force regarding incidents of organized retail theft under RCW 9A.56.350 reported pursuant to this section.
The Washington association of sheriffs and police chiefs must remit such information to the appropriate Washington law enforcement agencies.
Incidents of organized retail theft under RCW 9A.56.350 reported, transmitted, or remitted pursuant to this section are exempt from public inspection and disclosure under chapter 42.56 RCW.
(1) This section is the tax preference performance statement for the tax preferences contained in sections 4 and 5, chapter .
., Laws of 2023 (sections 4 and 5 of this act).
This performance statement is only intended to be used for subsequent evaluation of the tax preference.
It is not intended to create a private right of action by any party or be used to determine eligibility for preferential tax treatment.
p.
2 SSB 5259 (2) The legislature categorizes this tax preference as one intended to induce certain designated behavior by taxpayers as provided in RCW 82.32.808(2)(a).
(3) It is the legislature's specific public policy objective to reduce theft at retailers in Washington.
The legislature further acknowledges that security improvements are expensive, and the cost may not be feasible for all businesses.
The tax preferences under this act are intended to incentivize retailers to implement security precautions that reduce or prevent theft and ensure that such measures are accessible to all retailers.
(4)(a) The joint legislative audit and review committee must review the effectiveness of the tax preferences in sections 4 and 5 of this act in achieving the public policy objectives described in subsection (3) of this section.
The review must include an evaluation of the following:
(i) The amount of retailers in this state that make security improvements and use the tax preference in section 4 or 5 of this act;
and (ii) The type and cost of security improvements;
and (iii) The amount of theft incidents occurring at retailers identified under (a)(i) of this subsection prior to and after using the tax preference in section 4 or 5 of this act.
(b) If a review finds that the number of retailers implementing security improvements in this state has increased, and corresponds with a decrease in retail theft, then the legislature intends to extend the expiration date of these tax preferences.
(5) The joint legislative audit and review committee may use any data source it deems necessary in performing the evaluation under this section.
NEW SECTION.
Sec.
4.
p.(2) The credit established in this section may be claimed on physical security improvements made by the person in the previous four quarters and may not exceed $3,000 in each calendar year.
3(3) SSBFor 5259the (2)purposes Theof credit established in this sectionsection: may be claimed on physical security improvements made by the person in the previous four quarters and may not exceed $3,000 in each calendar year.
(3) This section only applies to qualifying purchases made on or after the effective date of this section.
(4) Unused credit may be carried over and used in subsequent tax reporting periods, except that no credit may be claimed more than 12 months from the end of the tax reporting period in which the credit was earned.
(5)(a) To claim a credit under this section, a person must:
(i) Apply with the department in a form prescribed by the department prior to claiming the credit;
and (ii) Electronically file with the department all returns, forms, and any other information required by the department, in an electronic format as provided or approved by the department.
(b) The department must approve or deny applications for the credit established in this section within 60 days of receipt of the application.
(c) A person may claim the credit established under this section once the department approves their application.
(6) The credit claimed under this section may not exceed the amount of tax due and may not be refunded.
(7) Credits may be claimed after June 30, 2030, for purchases made before June 30, 2030, subject to the eligibility criteria and limitations in this section.
(8) For the purposes of this section:
and (b) "Physical security improvements" means physical improvements, additions, or other similar changes to a mercantile establishment exclusively for the purposes of preventing the theft of merchandise including, but not limitedp. to:
2 SB 5259 limited to:
(9) This section expires June 30, 2030.
5.4.
p.(1)(a) ((There)) Except for retailers that qualify for the tax rate under (b) of this subsection, there is levied and collected a cannabis excise tax equal to thirty-seven percent of the selling price on each retail sale in this state of cannabis concentrates, useable cannabis, and cannabis-infused products.
4 SSB 5259 (1)(a) ((There)) Except for retailers that qualify for the tax rate under (b) of this subsection, there is levied and collected a cannabis excise tax equal to thirty-seven percent of the selling price on each retail sale in this state of cannabis concentrates, useable cannabis, and cannabis-infused products.
(ii) For the purposes of this subsection (1)(b), "physical security improvements" meansmay physicalinclude, improvements, additions, or other similar changes to a cannabis retail establishment exclusively for the purposes of preventing the theft of merchandise including, but are not limited to:
(2)p. All revenues collected from the cannabis excise tax imposed under this section must be deposited each day in the dedicated cannabis account.
3 SB 5259 (2) All revenues collected from the cannabis excise tax imposed under this section must be deposited each day in the dedicated cannabis account.
Each seller must collect from the buyer the full amount p.of the tax payable on each taxable sale.
5 SSB 5259 of the tax payable on each taxable sale.
(ii) A comparison of gross sales and tax collections prior to and after any cannabis tax change;
(iii) The increase or decrease in the volume of legal cannabis sold prior to and after any cannabis tax change;
64 SSBSB 5259 (iv)(ii) IncreasesA orcomparison decreasesof ingross thesales numberand oftax licensedcollections cannabisprior producers,to processors, and retailers;after any cannabis tax change;
(iii) The increase or decrease in the volume of legal cannabis sold prior to and after any cannabis tax change;
(iv) Increases or decreases in the number of licensed cannabis producers, processors, and retailers;
(7) This section expires June 30, 2030.
6.5.
(1) It isshall be an unfair practice for a retail establishment with 50 or more employees to suspenddiscipline withoutor pay, terminate from employment, or to discriminate against such individual in employmentpromotion, againstcompensation, anor individual,in terms, conditions, or privileges of employment, because that individual, on or in the immediate vicinity of the premises of a mercantile establishment, engaged, intervened, or attempted to intervene with a person for the purpose of investigation or questioning as to the ownership of any merchandise, provided:
(a) The employee does not singlephysically out,detain profile, or inrestrain anysaid wayperson; select the person for the engagement, intervention, or attempted intervention based on the person's actual or perceived race, creed, color, national origin, citizenship or immigration status, sex, sexual orientation, age, honorably discharged veteran or military status, or the presence of any sensory, mental, or physical disability;
(b) The employeeperson doesis engaged in a reasonable manner and for not physicallymore detainthan a reasonable time to permit such investigation or restrainquestioning saidby person;a peace officer or by the owner of the mercantile establishment or his or her authorized employee or designated agent;
and (c) The personemployee ishad engaged in a reasonable mannergrounds andto forbelieve notthat morethe thanperson awas reasonablecommitting time to permit such investigation or questioningattempting byto acommit peacetheft officeron orsuch bypremises the owner of thesuch mercantilemerchandise. establishment or his or her authorized employee or designated agent;
and(2) p.For the purposes of this section:
7p. SSB 5259 (d) The employee had reasonable grounds to believe that the person was committing or attempting to commit theft on such premises of such merchandise.
(2)5 ItSB is5259 an(a) unfair"Reasonable practicegrounds" forincludes, abut retailis establishmentnot tolimited suspendto, withoutknowledge pay,that terminatea fromperson employment,has orconcealed topossession discriminateof inunpurchased employmentmerchandise againstof ana individual,mercantile becauseestablishment; that individual:
(a) Notified or summoned law enforcement to report an incident of organized retail theft under RCW 9A.56.350;
or (b) Otherwise cooperates with an official law enforcement investigation into organized retail theft under RCW 9A.56.350.
(3) For the purposes of this section:
(a) "Reasonable grounds" includes, but is not limited to, knowledge that a person has possession of unpurchased merchandise of a mercantile establishment;
(4)(a)(3) AfterAn an employee or former employee has exhausted administrative remedies, an employer who violates this section is liable to the impacted employee or former employee in a civil cause of action for actual or statutory damages of $10,000, whichever is more, as well as reasonable attorneys' fees and costs.
(b) In any civil or administrative action, it is the employer's burden to establish that an adverse job action taken against an employee for having engaged, intervened, or attempted to intervene with a person for the purpose of investigation or questioning as to the ownership of any merchandise was lawful due to one or more of the conditions under subsection (1)(a) through (d) of this section.
(c) An employer is not liable for any civil claims or actions under the laws of this state resulting from an act by an employee that is protected by subsections (1) and (2) of this section.
However, this subsection (4) does not apply if the protected action by the employee that resulted in the claim or action was at the direction of the employer or an agent of the employer.
(5) All retail establishments covered by this section must provide training at the commencement of their employment and at least annually to all employees who regularly have contact with customers regarding both the protections and limitations on protections p.
8 SSB 5259 established by this section and must post an appropriate notice regarding such protections and limitations.
An employer may designate through policy certain employees, classes of employees, or both, who are not to engage with customers suspected of theft.
The employer must provide training to its employees on the policy regarding who may engage with customers suspected of theft.
7.6.
8.7.
Sections 1, 2, and 65 of this act constitute a new chapter in Title 19 RCW.
9.8.
SectionsThis 3,act 4,is andnecessary 5for the immediate preservation of thisthe actpublic takepeace, effecthealth, Januaryor 1,safety, 2024.or support of the state government and its existing public institutions, and takes effect immediately.
NEW SECTION.
Sec.
10.
Sections 1, 2, and 6 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect immediately.
96 SSBSB 5259