SB 5296 — Concerning the liquor and cannabis board.

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RCW 66.20.300 and 2014 c 78 s 2 and 2014 c 29 s 2 are each reenacted and amended to read as follows:Unless the context clearly requires otherwise, the definitions in this section apply throughout RCW 66.20.310 through 66.20.350.(1) "Alcohol" has the same meaning as "liquor" in RCW 66.04.010.(2) "Alcohol server" means any person who as part of his or her employment participates in the sale or service of alcoholic beverages for ((on-premise [on-premises]))on-premises consumption at a retail licensed premise as a regular requirement of his or her employment, and includes those persons eighteen years of age or older permitted by the liquor laws of this state to serve alcoholic beverages with meals.(3) (("Board" means the Washington state liquor control board.))board.(4))) "Training entity" means any liquor licensee associations, independent contractors, private persons, and private or public schools, that have been certified by the board.(((5)))(4) "Retail licensed premises" means any:(a) Premises licensed to sell alcohol by the glass or by the drink, or in original containers primarily for consumption on the premises as authorized by RCW 66.24.320, 66.24.330, 66.24.350, 66.24.400, 66.24.425, 66.24.450, 66.24.570, 66.24.610, ((and)) 66.24.680, and 66.24.690;(b) Distillery licensed pursuant to RCW 66.24.140 that is authorized to serve samples of its own production;(c) Facility established by a domestic winery for serving and selling wine pursuant to RCW 66.24.170(4);

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and (b) export the same from the state.(2) ((By January 1, 2012, the board must issue spirits distributor licenses to all applicants who, upon December 8, 2011, have the right to purchase spirits from a spirits manufacturer, spirits distiller, or other spirits supplier for resale in the state, or are agents of such supplier authorized to sell to licensees in the state, unless the board determines that issuance of a license to such applicant is not in the public interest.))(a)interest.(3)))(a) As limited by (b) of this subsection ((and subject to (c) of this subsection)), each spirits distributor licensee must pay to the board, for deposit into the liquor revolving fund, a license issuance fee calculated as ((follows:(i) In each of the first twenty-seven months of licensure, ten percent of the total revenue from all the licensee's sales of spirits made during the month for which the fee is due, respectively;

and))and(ii) In the twenty-eighth month of licensure and each month thereafter,)) five percent of the total revenue from all the licensee's sales of spirits made during the month for which the fee is due, respectively.(b) The fee required under this subsection (((3)))(2) is calculated only on sales of items which the licensee was the first spirits distributor in the state to have received:(i) In the case of spirits manufactured in the state, from the distiller;

Any amount by which such payments exceed one hundred fifty million dollars by March 31, 2013, must be credited to future license issuance fee obligations of spirits distributor licensees according to rules adopted by the board.))board.(d))) A retail licensee selling for resale must pay a distributor license fee under the terms and conditions in this section on resales of spirits the licensee has purchased on which no other distributor license fee has been paid.

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5051 of the federal internal revenue code, as existing on July 1, 1993, or such subsequent date as may be provided by the board by rule consistent with the purposes of this exemption.(c) All revenues collected from the additional tax imposed under this subsection shall be deposited in the state general fund.))fund.(6))) The board may make refunds for all taxes paid on beer and strong beer exported from the state for use outside the state.(((7)))(6) The board may require filing with the board of a bond to be approved by it, in such amount as the board may fix, securing the payment of the tax.

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If any seller fails to collect the tax imposed in this section or, having collected the tax, fails to pay it as prescribed by the board, whether such failure is the result of the seller's own acts or the result of acts or conditions beyond the seller's control, the seller is, nevertheless, personally liable to the state for the amount of the tax.(4) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.(a) (("Board" means the state liquor and cannabis board.))board.(b))) "Retail sale" has the same meaning as in RCW 82.08.010.(((c)))(b) "Selling price" has the same meaning as in RCW 82.08.010, except that when product is sold under circumstances where the total amount of consideration paid for the product is not indicative of its true value, "selling price" means the true value of the product sold.(((d)))(c) "Product" means marijuana, marijuana concentrates, useable marijuana, and marijuana-infused products.(((e)))(d) "True value" means market value based on sales at comparable locations in this state of the same or similar product of like quality and character sold under comparable conditions of sale to comparable purchasers.

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or))or(d))) A cooperative organized under RCW 69.51A.250 is permitting a person under the age of twenty-one to participate.(2) Every person under the age of twenty-one years who purchases or attempts to purchase marijuana is guilty of a violation of this section.

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However, if the responsible individual had the responsibility or duty to remit payment of the limited liability business entity's trust fund taxes to the board during any period of time that the person was not the chief executive or chief financial officer, that individual is also liable for trust fund tax liability that became due during the period that he or she had the duty to remit payment of the limited liability business entity's taxes to the board but was not the chief executive or chief financial officer.(b) All other responsible individuals are liable under this section only for trust fund tax liability that became due during the period he or she had the responsibility or duty to remit payment of the limited liability business entity's taxes to the board.(4) Persons described in subsection (3)(b) of this section are exempt from liability under this section in situations where nonpayment of the limited liability business entity's trust fund taxes was due to reasons beyond their control as determined by the board by rule.(5) Any person having been issued a notice of unpaid trust fund taxes under this section is entitled to an administrative hearing under RCW 69.50.334 and any such rules the board may adopt.(6) This section does not relieve the limited liability business entity of its trust fund tax liability or otherwise impair other tax collection remedies afforded by law.(7) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.(a) (("Board" means the state liquor and cannabis board.))board.(b))) "Chief executive" means:

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and(ii) Proof of identity such as a Washington state driver's license or identicard, as defined in RCW 46.20.035.))46.20.035.(b) Beginning July 1, 2016,)) "Authorization" means a form developed by the department that is completed and signed by a qualifying patient's health care professional and printed on tamper-resistant paper.(((c)))(b) An authorization is not a prescription as defined in RCW 69.50.101.(2) "CBD concentration" means the percent of cannabidiol content per dry weight of any part of the plant Cannabis, or per volume or weight of marijuana product.(3) "Department" means the department of health.(4) "Designated provider" means a person who is twenty-one years of age or older and:(a)(i) Is the parent or guardian of a qualifying patient who is under the age of eighteen and ((beginning July 1, 2016,)) holds a recognition card;

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RCW 66.24.620 (Sale of spirits by a holder of a spirits distributor or spirits retail license—State liquor store closure) is decodified.---decodified.NEW ENDSECTION.  Sec. ---

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This act takes effect January 1, 2020.--- END ---