HB 1389 — Concerning reporting requirements for common carriers who transport liquor into the state.

H-1884.1SUBSTITUTEH-0794.1HOUSE HOUSE BILL 1389State of Washington66th Legislature2019 Regular SessionByHouseSessionByRepresentatives Commerce & Gaming (originally sponsored by Representatives Morgan, Young, Jinkins, Entenman, Ormsby, Lekanoff, Thai, Reeves, Stonier, Kilduff, and Stanford)READStanfordRead FIRSTfirst TIMEtime 02/22/19.AN01/21/19.Referred to Committee on Commerce & Gaming.AN ACT Relating to reporting requirements for common carriers who transport liquor into the state;

creatingadding a new section;section to chapter 66.28 RCW;

and providingcreating ana expirationnew date.BEsection.BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:NEW SECTION.  Sec.

(1)It Theis legislature makes the followingintent findings:(a)of Thethe alcohollegislature beverageto regulators in several states have recentlycomplete undertakenand enforcementaccurate effortsinformation againstabout entitiesthe shippingimportation alcoholof illegallyliquor tointo consumersthe in their states;(b) Washington state doesin notorder haveto adequateverify informationthat regardingall illegalsuch shipmentsimportation ofis alcohollawful, to Washingtonensure consumersthat orall entitiesapplicable totaxes knoware ifproperly thereand ispromptly apaid, problemand hereto thatprotect needspersons licensed to besell addressed;(c) The liquor andin cannabis board is the regulatorystate agencyfrom chargedunfair withcompetition enforcementby ofout-of-state liquorentities.NEW laws;SECTION.  Sec.

and(d)2. The liquor and cannabis board informs and engages licensees, the public, and stakeholders in addressing issues related to the enforcement of liquor laws.(2) The legislature directs the liquor and cannabis board to investigate whether there are illegal alcohol shipments made to Washington consumers and liquor licensees, including the size of the problem if illegal alcohol shipments are made to Washington state.

IfA necessarynew section is added to chapter 66.28 RCW to read as follows:(1) Any carrier that delivers to a recipient in the state an item the carrier knows contains liquor andmust cannabisreport such delivery to the board may:(a)and Workto withthe stakeholders,department includingof suppliers,revenue wholesalers,on retailers,or andbefore commonthe carriersend toof determinethe calendar month following the mostmonth effectivein meanswhich tothe delivery is completed.(2) The reports required by this section must include the name and address of the problemcarrier, the name and address of illegalthe alcoholperson shipmentsor entity from whom the shipment originated, the name and address of the person or entity to Washington;whom the shipment is delivered, the weight or other pertinent information about the shipment, a unique tracking number, the date of delivery, and any other information reasonably required by the board or the department of revenue.

and(b)Reports Developwill legislativebe proposalsmade relatingavailable to stopping illegal shipments of alcohol and enforcement against making such shipments.(3) After conducting the investigationpublic under subsection (2) of this section, the liquorpublic andrecords cannabisact, boardchapter must42.56 reportRCW. its findings to the appropriate committees of the legislature consistent with the requirements of RCW 43.01.036 by December 31, 2019.(4) This section expires December 31, 2020.--- END ---

However, those portions of reports disclosing the names and addresses of individual consumers receiving shipments of liquor must be redacted before the balance of the reports are made available to the public.(3) The reporting requirements of this section apply to all deliveries made to any person or entity in the state, except that they do not apply to any deliveries made to the licensed premises of a person licensed in the state as a spirits, beer, or wine distributor or importer.(4) Any carrier who willfully fails to make reports as provided by this section, board rule, or department of revenue rule for the administration and enforcement of this section is subject to a notification of violation.

In the case of a continuing failure to make reports, the carrier is subject to possible license suspension and revocation.(5) This section does not alter, eliminate, or abridge any requirements imposed by any other statute or rule on carriers with respect to delivery of liquor to recipients in the state, such as but not limited to requirements that the carrier verify the age of the person accepting delivery and obtain such person's signature confirming delivery.(6) The board and the department of revenue must jointly or separately adopt rules necessary or appropriate for the implementation of this section.(7) For purposes of this section, the term "carrier" means and includes any person or entity operating as a common carrier in the state, including railroad companies, express companies, common or contract carriers, or any other company or firm that brings, carries, or transports liquor from outside the state for delivery in the state.--- END ---