SB 5777 — Improving the business climate in this state by simplifying the administration of municipal general business licenses.

S-1627.1SUBSTITUTES-1347.2SENATE SENATE BILL 5777State of Washington65th Legislature2017 Regular SessionBy Senate Commerce, Labor & Sports (originally sponsored by Senators Brown, Carlyle, Angel, Chase, and Saldaña)READSaldañaRead FIRSTfirst TIMEtime 02/17/17.AN02/09/17. ACT Relating to improving the business climate in this state by simplifying the administration of municipal general business licenses;

Referred to Committee on Commerce, Labor & Sports.AN ACT Relating to improving the business climate in this state by simplifying the administration of municipal general business licenses;

and creating a new section.BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:NEW SECTION.  Sec. 1.  The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.(1) "Business licensing service," "business licensing system," and "business license" have the same meaning as in RCW 19.02.020.(2) "City" means a city, town, or code city.(3) "Department" means the department of revenue.(4) "General business license" means a license, not including a regulatory license or a temporary license, that a city requires all or most businesses to obtain to conduct business within that city.(5) "Partner" means the relationship between a city and the department under which general business licenses are issued and renewed through the business licensing service in accordance with chapter 19.02 RCW.(6) "Regulatory business license" means a license, other than a general business license, required for certain types of businesses that a city has determined warrants additional regulation, such as taxicab or other for-hire vehicle operators, adult entertainment businesses, amusement device operators, massage parlors, debt collectors, door-to-door sales persons, trade-show operators, and home-based businesses.NEW SECTION.  Sec. 2.  (1) Except as otherwise provided in subsection (7) of this section, a city that requires a general business license of any person that engages in business activities within that city must partner with the department to have such license issued, and renewed if the city requires renewal, through the business licensing service in accordance with chapter 19.02 RCW.(a) Except as otherwise provided in subsection (3) of this section, the department must phase in the issuance and renewal of general business licenses of cities that required a general business license as of July 1, 2017, and byare not already partnering with the department, as follows:(i) Between January 1, 2018, and December 31, 2022,2021, ifthe specificdepartment fundingmust forpartner thewith purposesat ofleast thissix sectioncities isper appropriatedyear.(ii) byBetween JuneJanuary 30,1, 2017,2022, inand December 31, 2027, the omnibusdepartment appropriationsmust act.(b)partner with the remaining cities.(b) A city that imposes a general business license requirement and does not partner with the department as of January 1, 2018, may continue to issue and renew its general business licenses until the city partners with the department as provided in subsection (4) of this section.(2)(a) A city that did not require a general business license as of July 1, 2017, but imposes a new general business license requirement after that date must advise the department in writing of its intent to do so at least ninety days before the requirement takes effect.(b) If a city subject to (a) of this subsection (2) imposes a new general business license requirement after July 1, 2017, the department, in its sole discretion, may adjust resources to partner with the imposing city as of the date that the new general business licensing requirement takes effect, except as otherwise provided in subsection (7) of this section.