HomeMy WebLinkAbout2010 Primary Election Voters' PamphletsWhatcom County Official
Local Voters' Pamphlet
Primary Election August 17, 2010
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Published by the Whatcom County Auditor's Office • www.whatcomcounty.uslauditor
Dear Whatcom County Voter:
This year marks the 100th anniversary of women's right to vote in the State
of Washington! In 1910 after years of crusading and repeated attempts
to pass legislation, women were at long last granted the right to vote.
Washington was the fifth state in the Union to enact womens suffrage and it
wasn't until ten years later in 1920 that women were finally afforded the right
to vote on a national level.
We proudly salute the women that crusaded with endless perseverance
enabling us to celebrate this historic,100-year anniversary of womeris right
to vote.
Sincerely,
Accessible Voting Unit . . . . . . . . . . . . . . 1
Voting Instructions . . . . . . . . . . . . . . . . . . . . 2
Returning Your Ballot . . . . . . . . . . . . . . . . . . 2
Sample Ballot . . .. .. . . . .. . . . . .. . ..... 3
Candidates ......................... 4
Voter Information... .. ................ S
Ballot Measure ...................... 6
Special Notices ...................... 7
ShirleyForslof
Whatcom County Auditor
Participating Jurisdictions:
Whatconi County; NXIatcorn County Fire Protection District No. 16
Published by the VJhatcom Count-,, Auditor's Office: www.i,�,hatcomcounty.us/auditor
Cover Photo by Wharcom ..Museum of History and Art
What is an Accessible Voting Unit?
An accessible voting unit (AVU) is federally required. It is equipped with visual and audio
technology that allows voters with impaired vision and/or physical disabilities to vote a secret
ballot. The AVU is an accurate andsecure way to vote.
Where will the AVU be located?
The AVU will be located at the Whatcom County Auditor's Office, Whatcom County Courthouse,
311 Grand Ave., Suite 103, Bellingham, WA.
When can I vote using the AVU?
You may vote beginning Wednesday, July 28, 2010. The AVU will be available to vote in the
Auditor's Office Mon. — Fri.,10:00 a.m. — 3:00 p.m.
The AVU will be available on Election Day, Tuesday, August 17, 2010, from 7:00 a.m. — 8i00 p.m.
Is the AVU secure?
Yes. The AVU stands alone and is not connected to the Internet or an intranet. When a vote is cast
the ballot selections are encrypted and stored within the voting unit. The ballot order is scrambled
to ensure the voter's anonymity and leaves no connection between the voter and his or her
recorded vote.
How can I be sure my vote will be counted?
The AVU displays a paper record of your selections before you cast your ballot. Your secret ballot
is electronically stored and it cannot be traced back to you.
Additional Voter Information
is available at.-
wei.seestate.wa.gov/whatcom
Washington has a new primary. You do not have to pick a party. In each race, Each candidate for partisan office may, state a political party that he or
you may vote for any candidate listed. she prefers. A candidate's preference does not imply that the candidate
The two candidates who receive the most votes in the August primary will is nominated or endorsed by the party, or that the party approves of or
advance to the November general election. - associates with that candidate.
CORRECT
Use blue or black ink
to connect the arrow
by your choice with a
single line.
Do NOT use a felt
tip pen or pencil.
INCORRECT
Voting Instructions
Step 1: Vote your ballot and remove the stub.
Step 2: Put your voted ballot in the white secrecy envelope.
Step 3: Put the secrecy envelope -in the purple return envelope.
Step 4: Sign the voter affidavit, seal the envelope, and return it to the Auditor's
Office. If you use a mark for the signature, then two other people must sign
as witnesses.
If your ballot is destroyed, spoiled, or lost, you may get a replacement from the
Auditor's Office, 311 Grand Avenue, Suite 103, Bellingham.
If you make -a mistake: Draw a line through the incorrect -choice like this:
9ohn Dee or DES 4, or Ne 40—'m.
You then have the option of making another choice, if you wish. Do not erase!
To write in a name not on the ballot, connect the arrow and write in the name of the
candidate on the line provided.
By Mail
Your ballot will count if your envelope is postmarked by Election Day, August 17, 2010.1st Class postage is required.'
If you do not wish to return your ballot by mail, the following ballot drop box locations will be available:
Ballot Drop Box Locations Open 20 Days Prior To Election Da
FWhatcorn County Auditor's Of
om County Courthouse
and Ave., Suite 103
Bellingham, WA
HOURS: Monday - Friday
8:30 a.m. to 4:30 p.m.
Election Day Only: 7:00 a.m. to 8:00 p.m.
Election DaX Only - Ballot Drop Box Locations
Drop Box Hours: 7:00 a.m. — 8:00 p.m.
Blaine City Hall 344 H Street, Blaine, WA
Deming Library 5044 Mt. Baker Hwy.,
Everson Library
Ferndale Library
Laurel Fire Station
Lynden Library
Deming, WA
104 Kirsch Dr., Everson, WA
2222 Main St., Ferndale, WA
6028 Guide Meridian,
Bellingham, WA
216 4th St., Lynden, WA
r�
Curbside Ballot Drop Box
311 Grand Avenue
(near Courthouse Rotunda)
O
R Bellingham, WA
OPEN: 20 Days Prior to Election
Election Day: Closes at 8:00 p.m.
If You Have Not Received Your Ballot
If you have not received
your ballot by August 2,
2010, please contact the
Whatcom County Elections
Division at (360) 676-6742
or TTY (360) 738-4555,
Monday through Friday,
8:30 a.m. to 4:30 p.m.
Washington State Law Prohibits Ballots Deposited
After 8:00 p.m. on Election Day From Being Counted.
PIA
Sample Ballot
Whatcom County, Washington
Primary Election - August 17, 2010
Not all districts or measures on this sample
will appear on your ballot. Only the district
that you're entitled to vote on will appear.
READ: Each candidate for partisan office may
state a political party that he or she prefers.
A candidate's preference does not imply that
the candidate is nominated or endorsed by
the party, or that the party approves of or
associates with that candidate.
Federal
Partisan Offices
U.S. Senator
6 Year Term Vote For One
Norma D. Gruber
refers Re bk;C Pa
Mohammad H. Said
rears centrist Pa
Goodspaceguy
(Prefers DemorraW Pad .)
Mike The Mover
Prefers Democratic Party)
Paul Akers
(Prefers Republican Pa )
Mike Latimer
Prefers Republcan Pa )
James (Skip) Mercer
[Staves No Pa Preference
Clint Didier
refers Ro ubkm Pa
Schalk Leonard
Stags No Party Prefere me
Patty Murray
Prefers Democratic Party)
Bob Burr
refers Democratic Part
W)Aam Edward ChOW
(Pterers Rapubkan Parry)
Dino Rossi
[Prefers Repubrrran Panyj
Charles Allen
(Prefors Dermoxak Pa
Will Baker
efers Reform Pa
Write -In
U.S. Representative
Congressional District 2
2 Year Term Vote For One
Rick Larsen
(Prefers Democratic Party)
Diana McGinness
(Prefers Democratic Party)
John Carmack
IPrelers Republcan Parry)
Larry Kalb
(Prefers Democratic Party)
John Koster
(Pre Ie rs Re pubsean Party
Write -In
State of Washington
Partisan Offices
State Representative District 39
Position 1
2 Year Term Vote For One
Eleanor Walters
(Prefers Democratic Parry)
Dan Kristiansen ,
Prefers Republican Partyl
Write -In
State Representative District 39
Position 2
2 Year Term Vote For One
Kirk Pearson 4
e:em Republican Par.[,
Write -In
$0 me
om . No
One to
• To Vote: Use either blue or black ink. Do not use a felt tip pen or
pencil. Connect the Head and Tail of the arrow that points to your
choice with a Single Line as shown.
• To Correct A Mistake: Draw aline through the incorrect choice
like this: Lnhn Dee 4F� or YES 4*m—■d
You then have the option of making another choice if you wish.
■ Overvote: More than one vote for an office or ballot measure will be
an overvote and no votes for that office or measure will be counted.
• Write-in: To vote for a person not on the ballot, connect the arrow
and write in the name of the person on the line provided.
State Representative District 40
Position 1
2 Year Tenn Vote For One
Dusty Gulleson
(Prefers Republican Party)
Chuck Carrell
rPrefm RepubWao Pa qj
Doug (Yoshe) Revelle
[Prefers Happiness Part
Mike Newman
Prefers Repubkaii Pa
Kristine Lytton
refers Democratic P
Tom Pasma
[Prefers Democratic P
Thomas Boucher
refers Democratic Pad
Justin Van Dyk
refers Democratic Party)
Donna R. Miller
(Pre%.+ RepubkanPa
Write -In
State Representative District 40
Position 2
2 Year Term Vote For One
Jeff Morris
refam Dam rmk Pa
Howard Pellett
prel%m Green Party)
John Swapp
[Prefers Repubpcan Pa )
Write-in
State Senator District 42
4 Year Term Vote For One
Pat Jerns
ftfem Democratic Party)
Doug Ericksen
(Prefers Republican Pa )
Write -In
State Representative District 42
Position 1
2 Year Term Vote For One
Jason Overstreet
raters Re blican Pa
Al Jensen
(Prefers Democratic Pan
Michael C. Smith
aters GOP P
Richard May
refers Democratic Pa )
Craig Mayberry
—iLftfats Wependent Party)
Write-in
State Representative District 42
Position 2
2 Year Term Vote For One
Vincent Buys
(Prefers Republica nParty)
Kelli Linville
refers Dernoaatic Pa
Write -In
Whatcom County
Nonpartisan Office
County Council District 1 Position B
Nonpartisan Vote For One
1 Year Unexpired Term
Theresa Sygitowicz
Jean Melious 4
Tony Larson 4
write-ln 4
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Partisan Office
Prosecuting Attorney
4 Year Term Vote For One
David S. McEachran
(Prefers.Rep0 aanParry)
Write -In
State Judicial
Nonpartisan Offices
State Supreme Court Justice Position 1
Nonpartisan Vote For One
6 Year Term
Stan Rumbaugh
Jim Johnson
Write-in
State Supreme Court Justice Position 5
Nonpartisan Vote For One
6 Year Term
Barbara Madsen
fte-I n 4
State Supreme Court Justice Position 6
Nonpartisan Vote For One
6 Year Term
Bryan Chushcoff
Charlie Wiggins
Richard B. Sanders
Write -In
Election of Political Party Precinct
Committee Officer
Precinct Committee Officer is a position in
each mairx political party. For this office
only: If you consider yourself a Democrat
or Republican, you may vote for a
candidate of that party. For a write-in
candidate, include parry.
WHATCOM COUNTY FIRE
PROTECTION DISTRICT 16
Whatcom County Fire Protection District
No.16
Proposition No. 1
Emergency Medical Services Regular
Property Tax Levy
Shall Whatcom County Fire Protection
District #16 be authorized b levy a regular
property tax for the sum of 45 oerts per
$1,000 dollars assessed valuation each
yea rtor six cons ectkive years beginning in
2010, to begin collection in 2011, for the
provision of all Emergencyy Medical
Serwoes, as provided in Whatcom County
Fire Protection District #16 Resolution 01-
10?
YES 4
NO 4
om me
O me
111M me
me
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3
Theresa Sygitowicz
Non -Partisan
I am a farmer. I have worked at St. Josephs Hospital for the past 17 years. I was
an EMT/Fireman WCFD #16, for over 10 years. I am a former small business
owner for over 20 years.
I have an extensive history of public service on statewide &'local boards.
Currently: Chair of Acme/VanZandt Flood Zone, Chair-VanZandt & Clipper
Cemeteries, Mount Baker Scholarship Foundation -15 years, Whatcom Co.
Parks/Recreation, & Open Space Boards.
I am agraduate of Mt. Baker High School & Whatcom Community College. I am a single, 4th generation
resident. My Dads family settled in the South Fork Valley in 1890. While Moms family settled at
Lawrence in 1910.
Fiscal responsibility & tax limitation are essential to the prosperity of Whatcom County. We must
encourage a business friendly environment in our area to attract living wage jobs. Support of the county
safety services is critical to maintain a safe & secure quality of life. We must support both senior citizens
Jean Melious
Non -Partisan
> I grew up on my family's farm and worked hard to put myself through college
and law school. I work at Western Washington University, where I reach the next
generation about land use and natural resources. I have served on the Whatcom
County Planning Commission for almost three years, two of these as Chair,
working with people across the County to plan for our future. My husband
Devon and I raised Nate and Claire, our teenagers, here in Wharcom County. I
have a strong stake in this community, with hope and vision for our future.
I will ensure that we invest in our workforce, drawing solid businesses to our county and keeping the ones
we have. I will plan For responsible growth. Whatcom County is changing; let's make sure that we grow
in ways that reflect our values as a community. I will see that we use all available means to safeguard our
beautiful and fragile legacy of clean water, clean air and working farms. It saves everyone money to keep
our water clean and our air healthy for future generations. I ask for your vote to help build a responsible
future. Thank you.
Tony Larson
Non<Partisan
I was born in Whatcom County and spent my summers picking berries and
bucking hay bales. I graduated Western Washington University, earning a degree
in Economics and Finance. I have been the owner/publisher of Northwest
Business Monthly magazine for 20 years and am the former owner of the
Bellingham Bells baseball team.
I am a long-time youth baseball and basketball coach, a former Big Brother and
previous Junior Achievement volunteer and leadership award recipient. I have been chairman of the
�Toirbs rest D-% —r r z6wwy Council .. execuriv lbaacd member of Ua red Ways f X"atcom Couraty axed
president of the WWU Alumni Assn. '
Our economy is a key driver of our quality of life. Without a strong and prosperous economy, Families,
schools, organizations rhar support our most vulnerable neighbors, and our environment are at risk.
Maintaining our quality of life will require the kind of leadership and experience that I offer.
As your Council representative, I will promote job creation; support only those regulations that work
& our most vulnerable residents. It is imperative that we protect our natural resources, while also having
the ability to use them responsibly now & in years to come. Thank you for your vote on August 17th.
For More Information:
Citizens for Theresa Sygitowicz
PO Box 935, Deming, WA 98244
(360) 318-4565
tberesa@tberesa4council.com
www.tberesa4council.com
For More Information:
People forJean Melious
PO Box 1518, Bellingham, WA 98227
(360) 714-1459
jeanforcouncil@gmail.com
voteforjean.com
with, not against, our farmers, employers and families; and focus spending on programs with clear
objectives that create fair and equitable outcomes for everyone. I want to Get Whatcom Working. To do
it, I need your vote.
For More Information:
Families for Tony Larson
PO Box 1091, Bellingham, WA 98227
(360) 201-2491
votetony@getwhatcomworking.com
www.getwbatcomw,orking.com
David S. McEaehran Prosecuting Attorneys, and a lecturer for the National District Attorneys Association
(Prefers Republican Party) For More Information:
I was first elected to the office of Whatcom County Prosecuting Attorney in (360) 734-6405
1975, after having served as a deputy prosecutor For two and one half years, and
I am now completing my ninth term in office. I am the longest serving elected
prosecutor in the State of Washington. I am presently direcring a staff of fifty two
people including rwenry four attorneys, and I handle an active caseload.
One of the major accomplishments in my past 35 years in office has been the
developmenr of a team approach that combines my office and all of the law enforcement agencies in this
county. With the ever increasing level oFcrime and dwindling resources, a team approach is vital.
In addition to the prosecution of criminal cases I also represent Whatcom County and its elected and
appointed officials as legal counsel.
I have been appointed by Governor Gregoire to the Forensic Investigations Council which oversees
the State Toxicology Laboratory and the State Crime Laboratory system. I am presently serving as
the chairman of that Council. I have served as the president of the Washington Stare Association of
In
These statements are submitted by the candidates and are not checked for grammar, spelling or accuracy by any government agency.
ater information
11 7NW"-
How Can I Register? If Your Mailina or Residence Address Has Changed:
A citizen may register to vote by: (1) completing the registration form online Now that you have a new mailing address and/or new residential address,
at wwwvot.e.wa.gov only if you have a Washington State Driver's License or your voter record needs to be updated. Updating your record is easy!
a Washington State I.D. card; (2) completing the Mail -In Voter Registration Address Change Witbin Whatcom County:
Form and mailing it to your county of residence, or (3) by completing the
form in person at the Whatcom County Auditor's Office, Elections Division. Choose one of the following options:
Last Day to Register to Vote
Citizens may register to vote at any time. However, the registration must
be postmarked or received at least 29 days before an election in order to vote
in that election.
A citizen that is not currently registered to vote in the State of Washington
may register in person at the Auditor's Office, Elections Division up to 8 days
before an election.
Name Change
If your name has changed, complete a new registration form. Information
indicating the former name, address, and_ signature plus the new name and
signature must be provided.
When to Cancel Registrations
+ If you have moved out of Whatcom County, your signature is required
to cancel your voter registration.
+ If a family member has passed away, contact the Elections Division
and a form will be mailed for you to complete.
In addition to the various state and county offices which will appear
on the primary election ballot, most voters will be able to vote for
the office of Precinct Committee Officer.
Who Is Eligible?
Anyone who is a registered voter and a member of a major political party
may become a candidate. A candidate must file a declaration of candidacy
form. Since voters do not register by political party in Washington, a
candidate declares himself/herself to be a member of a major political
party at the time of filing.
Election of a Precinct Committee Officer
Candidates appear on the primary ballot only. The candidate receiving
the most votes in the precinct for each political party is elected.
Term of Office
The term of office is two years. The term commences the first day
of December following the Primary Election.
Vacancies
Should a vacancy occur in the office (caused by death, disqualification,
resignation, or failure to elect), the chairperson of the County Central
Committee fills the vacancy by appointment.
• Online at wwwvote.wa.gov and click on the"My Vote' logo
+ Call the Elections Division at the Auditor's Office at (360) 676-6742
or TTY (360) 738-4555 or e-mail the Auditor's Office at:
elections@co.whatcom.wa.us
+ Complete and mail a new voter registration form
Address Change Outside Whatcom County:
Choose one of the following options:
+ Online at wwwvote.wa.gov and click on the
"Online Voter Registration" logo
+ Complete and mail a new voter registration form
A new voter registration card will be mailed after your address change
is processed.
Questions?
If you have questions, please feel free to call the Whatcom County Auditor's
Office, Elections Division at (360) 676-6742 or TTY (360) 738-4555,
Monday through Friday, 8:30 a.m. — 4:30 p.m. or e-mail the Auditor's Office
at: elections@co.whatcom.wa.us
Duties of a Precinct Committee Officer
Each officer is a member of the County Central Committee. They elect
members to the State Central Committee. The following duties are
commonly assigned by the party organization:
+ Attend meetings of county committees
+ Actively participate in fund raising activities
+ Distribute party election materials during election campaigns
+ Hold precinct caucuses for the purpose of adopting resolutions
and selecting delegates to the county conventions
+ Establish a record of eligible voters and party members within
the precinct.
5
_-',---Ballot Measure
Whatcom County Fire Protection District No. 16
Proposition No. 1
Emergency Medical Services Regular Property Tax Levy
Shall Whatcom County Fire Protection District #16 be authorized to levy a regular property tax for the sum of 45 cents per $1,000 dollars assessed valuation each
year for six consecutive years beginning in 2010, to begin collection in 2011, for the provision of all Emergency Medical Services, as provided in Whatcom County
Fire Protection District #16 Resolution 01-10?
YES NO
Explanatory Statement
The Board of Fire Commissioners of Whatcom County Fire Protection District No. 16 (Acme -Van Zandt-Wickersham) has passed a resolution requesting a levy of
a regular property tax in the sum of ($0.45) per $1,000.00 of assessed valuation each year for six consecutive years, beginning in 2010, to begin collection in 2011..
The District provides emergency medical services (EMS), including personnel costs, training, equipment, supplies, vehicles, and structures needed for provision of
such services. This levy would provide EMS funds necessary for maintenance, operations, and equipment,
Statement For:
Whatcom County Fire District 16 (WCFD) is an al! volunteer department that
provides basic life support emergency medical services, fire suppression,
rescue and education. We serve the communities of Wickersham, Acme, Van
Zandt and two Nooksack Tribal Housing Developments.
The current EMS levy provides funding for a large variety of EMS/Rescue
services. It has funded the purchase of the district's ambulance, as well as all
of the supplies and maintenance of the ambulance. It funds all of the medical
supplies for the district which include; EMS kits for all the district apparatus
and a first aid kit for all district volunteers. An example of necessary rescue
equipment that was purchased with the current levy was the JAWS of Life.
The levy also provides funding for the EMS of education of all the district's
volunteers.
For the year 2009, WCFD 16 responded to 137 incidents. Of those incidents,
72% were medical related or motor vehicle collisions.
The proposed EMS levy amount of $.45 per thousand of assessed valuation
is $.05 less than the maximum allowed. With the passage of this levy, WCFD
16 will be able to provide the same essential services while maintaining fiscal
responsibility. For more information, go to wcfdl6.org.
Rebuttal of Statement Against:
No statement submitted
Statement For prepared by: Pro EMS Levy
Statement Against:
No statement submitted
Rebuttal of Statement For:
No statement submitted
Statements For, Statements Against, and Rebuttals are the opinions of the authors and have not been checked for accuracy by any government agency.
WHATCOM COUNTY FIRE DISTRICT NO. 16
RESOLUTION #01-10
March 29, 2010
A RESOLUTION OF THE BOARD OF COMMISSIONERS OF WHATCOM
COUNTY FIRE PROTECTION DISTRICT NO. 16, PROVIDING FOR THE
SUBMISSION TO THE QUALIFIED ELECTORS OF THE DISTRICT AT AN
ELECTION TO BE HELD WITHIN THE DISTRICT ON AUGUST 17, 2010, OF A
PROPOSITION AUTHORIZING THE LEVY OF A REGULAR PROPERTY TAX, IN
THE SUM OF 45 CENTS PER $1,000.00 ASSESSED VALUATION EACH YEAR
FOR SIX CONSECUTIVE YEARS BEGINNING IN 2010 TO BEGIN COLLECTION
IN 2011 FOR THE PROVISION OF ALL EMERGENCY MEDICAL SERVICES AS
PROVIDED IN WHATCOM COUNTY FIRE DISTRICT NO. 16 RESOLUTION NO
01-10 AND THE LAWS OF THE STATE OF WASHINGTON RCW 84.52.069.-
WHEREAS, it is the judgment of the Board of Commissioners of the district
that it is essential and necessary for the protection of the health and life of the
residents of the District that the emergency medical services enumerated in
this resolution are provided by the District. Such services will necessitate the
expenditure of revenues for maintenance, operations and equipment.
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of
Whatcom County Fire Protection District No. 16, Whatcom County Washington, as
follows:
Section 1. That the District shall provide emergency medical care or
emergency medical services, including related personnel cost, training for such
personnel, and related equipment, supplies, vehicles and structures needed for the
provision of emergency medical services.
Section 2. In order to produce revenue adequate to continue to pay the cost
of the providing of life protection services as described in SECTION 1 of this
resolution and to maintain reserve funds sufficient to assure the continuation of
such services, the district shall levy in 2010 and collection in 2011, a general tax on
taxable property within the District, maintenance and operation costs in the amount -
of 45 cents per $1,000 dollars of assessed valuation.
Section 3. There shall be submitted to the qualified electors of the District
for their ratification or rejection, at an election to be held on August 17, 2010, the
question of whether or not such levy for maintenance and operations shall be
made.
ADOPTED at the regular meeting of the Board of Commissioners of Whatcom
County Fire Protection District No. 16 on this 29th day of March, 2010. By
Chairman Gary Knaus, Commissioner Henry Maleng, Commissioner Brian
Knutzen.
ATTEST: Candy Roberts, Secretary to the Board
Q
The Secretary of State's office will not be mailing a Primary Voters' Pamphlet.
However, a 2010 Primary Online Voters' Guide with Federal and State candidates
is available at:
wei.secstate.wa.gov/whatcom
Whatcom county Local Voters'
Pamphlet is also available online at:
wei.secstate.wa.gov/whatcom
When Will Ballots Be Mailed?
Ballots are scheduled to be mailed starting July 28, 2010,
ff'you have not received your ballot by August 2, 2010, please contact the
Whatcom County Auditor's Office, Elections Division at (360) 676-6742 or TTY
(360) 738-4555, Monday through Friday, 8:30 a.m. to 4:30 p.m. or e-mail the
Auditor's office at:
elections[7a co.whatcom.wa.us
How do I know my ballot has been
received by the Auditor s office?
Go to+-
wei.secstate.wa.gov/whatcom
Ballots With Late Postmarks Cannot Be Counted
Mail Your Ballot Early
Remember that your ballot needs to be postmarked no later than Election Day,
August 17, 2010, to be counted.
rA
Dear Whatcom County Voter:
This year marks the 100th anniversary of womens right to vote in the State
of Washington! In 1910 after years of crusading and repeated attempts
to pass legislation, women were at long last granted the right to vote.
Washington was the fifth state in the Union to enact women's suffrage and it
wasn't until ten years later in 1920 that women were finally afforded the right
to vote on a national level.
We proudly salute the women that crusaded with endless perseverance
enabling us to celebrate this historic,100-year anniversary of women's right
to vote.
Sincerely,
— — �: -Ov- -�'- �
Shirley Forslof
Whatcom County Auditor
Participating jurisdictions :
Whatcotn County, Whatcom County Fire Protection District No. 16
Published by the `TJhatco€n County Auditor's Office: www.whatco€ncounty.us/auditor
Cover Photo by Wharcorn Museurn of History and Art
Accessible Voting Unit ................... 1
Voting Instructions . . . . . .. . . . . . . . . . . , . . 2
Returning Your Ballot . . .... . .. ... . .. 2
Sample Ballot ...... ....... ... ... 3
Candidates ......... ........... .... 4
Voter Information....
Ballot Measure .....
Special Notices .....
What is an Accessible Voting Unit? _
An accessible voting unit (AVU) is federally required. It is equipped with visual and audio
technology that allows voters with impaired vision and/or physical disabilities to vote a secret
ballot. The AVU is an accurate and. secure way to vote.
Where will the AVU be located?
The AVU will be located at the Whatcom County Auditor's Office, Whatcom County Courthouse,
311 Grand Ave., Suite 103, Bellingham, WA.
When can I_vote using the AVU?
You may vote beginning Wednesday, July 28, 2010. The AVU will be available to vote in the
Auditor's Office Mon. — Fri., 10:00 a.m. — 3.00 p.m.
The AVU will be available on Election Day, Tuesday, August 17, 2010, from 7:00 a.m. — 8i00 p.m.
Is the AVU secure?
Yes. The AVU stands alone and is not connected to the Internet or an intranet. When a vote is cast
the ballot selections are encrypted and stored within the voting unit. The ballot order is scrambled
to ensure the voter's anonymity and leaves no connection between the voter and his or her
recorded vote.
How can I be sure my vote will be counted?
The AVU displays a paper record of your selections before you cast your ballot. Your secret ballot
is electronically stored and it cannot be traced back to you.
5
.............. 6
Additional Voter Information
is available at:
wei.secstate wa.gov/whatcom
7
SHIRLEY FORSLOF
Whatcom County Auditor
311 Grand Avenue #103
Bellingham, WA 98225
ECRW-SS
RESIDENTIAL CUSTOMER
NONPROFIT ORG. ■* hatcom County Official
U.S. POSTAGE
LYN ENO,WA Local Voters' Pamphlet
PERMIT NO.20 Primary Election August 17, 2010
tf1LEB RAT1rq(;
OMEN VOTING IN w�100 YE
ARs
2010 r,-
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4,aa:")Published by the Whatcom County Auditor's Office • www.whatcomcounty.us/auditor
State of Washington
& Whatcom County
Voters' Pa, mphlet
November 2, 2010 General Election
by the Office of the Secretary of State
& the Whatcom County Auditor
'> Message from Secretary of State Sam Reed
We'm marking a very special centennial this year —the 100th
anniversary of Washington women gaining the right to vote. Every
single county voted -for suffrage back in 1910, helping pave the way
for passage of the 19th Amendment nationally.
"Huzzahs" to all of our women voters — and may we all enjoy the
civic pride of voting. Itvhas' never been more important for you to
have your voice heard by'voting for the leaders who will guide our
state and country in these challenging times.
In Washington, we will vote for the U.S. Senate; all nine U.S. House
seats, inclGding a wide-open race in the 3rd District; decide control
of the state Legislature; elect our judges and many local government
leaders; and take action on some very important statewide ballot
measures and local propositions.
We continue to work together to turn the economy around, to elect
f capable leaders, redouble our volunteer efforts to meet the most
pressing needs in our communities, and keep a civil and positive
can -do attitude through it all. I commend you for doing all that you
can do to help make this state a better place.
One simple, but very significant act of citizenship I ask of you is that
you register to vote, do your homework on the candidates and the
issues, and then make sure to cast your,ballot. Self-government is a
precious right and responsibility, and you owe it to yourself to vote.
5 TA Sincerely,
y
+may N°yn SAM REED
Secretary of State
Secretary of State Voter Information Hotline (800) 448-4881
Visit our Online Voters' Guide at www.vote.wa.gov
November 2, 2010 General Election
Table of Contents
Voting in Washington State . . . . .
Women's Suffrage Centennial . . . .
The Ballot Measure Process . . . . .
2011 Art Contest . . . . . . . . .
2010 Art Contest Winner . . . . . .
Initiative Measure 1053 . . . . . .
Initiative Measure 1082 . . . . . .
Initiative Measure 1098 . . . . . .
Initiative Measure 1100 . . . . . .
Initiative Measure 1105 . . . . . .
Initiative Measure 1107 . . . . . .
Referendum Bill 52 . . . . . . . .
Senate Joint Resolution 8225 . . . .
Engrossed Substitute House Joint
Resolution 4220 . . . . . . . . .
Office Descriptions . . . . . . . .
United States Senator . . . . . . .
United States Representative . . . .
State Legislators. . , . . . . . .
Supreme Court Justices . . . . . .
Whatcom County Local Voters' Pamphlet
Complete Text of the Measures . . . .
2010 Mock Election . . . . . . . .
Additional Resources . . . . . . .
Alternative Languages and Formats . .
County Elections Contact Information . .
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17
24
32
40
45
51
53
55
56
57
58
65
68
92
132
133
134
135
Inf"ational icons.,in this pamphlet
0 General information
0 Urgent information
0 Address Confidentiality Program
If you are a victim of domestic
violence, sexual assault, trafficking,
and/or stalking who has chosen not to register
to vote because you are afraid your perpetrator
will track you down through voter registration
records, the Office of the Secretary of State has
a program that might be able to help you.
The Address Confidentiality Program (ACP)
works together with community domestic
violence and sexual assault programs in an
effort to keep crime victims safer. The ACP
provides participants with a substitute address
that can be used when conducting business
with state or local government agencies.
ACP participants are eligible to register
as Protected Records Voters, meaning the
registration information is not public record.
All ACP participants must be referred to the
program by a local domestic violence or sexual
assault advocate who can help develop a
comprehensive safety plan.
Need more information? Call the ACP toll -free
at (800) 822-1065 or visit www.sos.w6.gov/acp.
M
Voting in Washington State
Voter qualifications
To register to vote, you must be:
A citizen of the United States;
A legal resident of Washington State; and
At least 18 years old by Election Day.
In Washington State, you do not declare political
party affiliation when you register to vote.
Voter registration
You may register to vote at www.vote.wa.gov.
There are registration deadlines prior to each
election. If you are a new voter in Washington
State, you may register in person at your county
elections department up to eight days before an
election.The phone number and address of your
county elections department is located in the
back of this pamphlet.You do not need to register
before each election.You do need to update your
registration if you move or change your name.
Restoring the right to vote after felony conviction
If you were convicted in Washington State
Superior Court, your right to vote is restored
as long as you are not either in prison or on
community custody for that felony with the
Washington State Department of Corrections.
If you were convicted in another state or in federal
court, your right to vote is restored as long as you
are not incarcerated for that felony.
Services and additional assistance
Contact your county elections department for
questions on your voter registration, or assistance
on how to fill out and return your ballot.The
phone number and address of your county
elections department are located in the back of
this pamphlet. Contact the Office of the Secretary
of State for voters' pamphlets in alternate formats
or languages.
Campaign finance information
For state campaigns, contact the Public Disclosure
Commission at 711 Capitol Way, Rm 206, PO Box
40908, Olympia, WA 98504-0908, or by phone
(360) 753-1111, email pdc@pdc.wa.gov, or
www.pdc.wa.gov. For federal campaigns, contact
the Federal Elections Commission toll free at (800)
424-9530,TDD/TTY at (202) 219-3336 or visit
www.fec.gov.
Candidates represent themselves—
not a political party
In each race, the two candidates who received the
most votes in the August Primary appear on your
November General Election ballot.
It is possible the two candidates in a race prefer
the same party.This is because political parties
no longer have a guaranteed spot on the ballot. If
two candidates who prefer the same party receive
the most votes in the Primary, both will advance
to the General Election.
What is "party preference?"
Each candidate for partisan office may state a
political party that he or she prefers.
John Doe
(Prefers Republican Party)
A candidate's preference does not imply that the
candidate is nominated or endorsed by the party,
or that the party approves of or associates with
that candidate.
Candidates may choose to not state a political
party preference.
Jane Doe
(States No Party Preference)
View election results
On Election Day after 9 p.m. you can view county
and statewide election results
This information is also available at at www.vote.wa.gov.
www.vote.wa.gov or call the Voter Information
Hotline at (800) 448-4881.
Replacement ballots
If you are registered to vote by mail or absentee
and you didn't receive your ballot, call your
county elections department and request
a replacement ballot.
Jubilation
in Olympia
November
Preview
November
The events are
For more information about Women's Suffrage
in Washington State or A Day of Jubilation,
visit the Washington Women's History Consortium
at www.washingtonwomenshistory.org.
`f :.�M
'5
no
The Ballot Measure Process
The Washington State Constitution affords voters
two methods of direct legislative power the initiative and the referendum.
While differing in process, both initiatives and
referenda leave ultimate legislative authority
in the hands of the people.
The Initiative
Initiatives to the People - Initiatives to the
people, if certified to have sufficient signatures,
are submitted for a vote of the people at the
next state general election.
Initiatives to the Legislature- Initiatives to
the Legislature, if certified to have sufficient
signatures, are submitted to the Legislature at
its regular session each January.
Any registered voter, acting individually or
on behalf of an organization, may propose an
initiative to create a new state law or to amend or
repeal an existing statute.
To certify an initiative (to the people or to the
Legislature), the sponsor must circulate the
complete text of the proposal among voters and
obtain a number of legal voter signatures equal to
8 percent of the total number of votes cast for the
office of Governor at the last regular gubernatorial
election.
Initiative measures appearing on the ballot
require a simple majority vote to become law
(except for gambling or lottery measures, which
require 60 percent approval).
The Referendum
Referendum Bills -Referendum bills are
proposed laws referred to the electorate by the
Legislature.
Referendum Measures -Referendum measures
are laws recently passed by the Legislature that
are placed on the ballot because of petitions
signed by voters.
Any registered voter, acting individually or on
behalf of an organization, may demand, by
petition, that a law passed by the Legislature be
referred to a vote of the electorate prior to its
going into effect. Emergency legislation is exempt
from the referendum process.
To certify a referendum measure to the ballot,
the sponsor must circulate among voters the
text of the legislative act to be referred, and
obtain a number of legal voter signatures equal
to 4 percent of the total number of votes cast
for the office of Governor at the last regular
gubernatorial election.
A referendum certified to the ballot must receive
a simple majority vote to become law (except for
gambling and lottery measures, which require 60
percent approval).
Please note:7he preceding information is not intended
as a substitute for the statutes governing the initiative
and referendum processes, but rather should be read in
conjunction with them.
For more information go to www.vote.wa.gov and click on
"Handbook for Filing Initiatives and Referenda in WA State'
7
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Kids' Art Contest Winner
Congratulations to Alexis Takara, a 5th grader at Lister Elementary in Tacoma. In honor of '100
years of women's suffrage in Washington State, the contest theme was "Women's Votes.
Women's Voices." Nice work, Alexis!
Initiative Measure 1053
Measure
1053
Proposed by initiative petition:
Initiative Measure No.
1053 concerns tax and
fee increases imposed
by state government.
This measure wound restate existing statutory
requirements that legislative actions raising
taxes must be approved by two-thirds legislative
majorities or receive voter approval, and
that new or increased fees require majority
legislative approval.
Should this measure be enacted into law?
[ Yes
[ No
The Official BallotTitle and the Explanatory Statement were
written by the Attorney General as required by Iaw.The Fiscal
Impact Statement was written by the Office of Financial
Management as required by Iaw.The Secretary of State is
not responsible for the content of arguments or statements
(WAC 434-381-180).The complete text of Initlative Measure
1053 begins on page 92.
Explanatory Statement
Written by the Off ide of the Attorney General
The Law as it Presently Exists
Washington statutes currently impose conditions
on tax increases, but the legislature has
temporarily suspended their effect. Under these
statutes, any action.or combination of actions by
the legislature that raises taxes may be taken only
if approved by a two-thirds vote of each house of
the legislature, and then only if state expenditures
in a given fiscal year, including new revenue, will
-F-#
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11111110 -..
not exceed state expenditure limits established in
Iaw.These statutes provide that actions resulting
in expenditures in excess of the expenditure limit
will require approval by the people at a November
election, with some exceptions for expenditures
made in response to declared emergencies.The
2010 session of the legislature amended these
laws to suspend their effect until July 1, 2011.
Washington statutes currently provide that a
state fee may not be imposed or increased in any
fiscal year without prior legislative approval.This
requirement does not apply to assessments made
by agricultural commodity commissions or to the
forest products commission.
The Effect of the Proposed Measure, if Approved
This measure would reverse the action.of the
2010 legislature by replacing the current statute
regarding tax increases and the state expenditure
limit with a new section reading the same as the
pre-2010 version of the law and restating that any
action or combination of actions by the legislature
that raises taxes may be taken only if approved
by at least two-thirds legislative approval in both
the house of representatives and the senate.
Consequently, for the period beginning with the
effective date of this measure, those requirements
would be not.be suspended.
The measure would rephrase the language
relating to increases in state fees, providing that
,a fee may only be imposed or increased in any
fiscal year if approved with majority legislative
approval in both the house of representatives and
the senate.
Fiscal Impact Statement
Written by the Office of Financial Management
Fiscal Impact
Initiative 1053 would have no direct fiscal impact
on state and local revenues, costs, expenditures
or indebtedness.
General Assumptions l
The initiative's impact is limited to changes in the
state legislative process.
10 Initiative Measure 1053
Argument For Initiative Measure 1053 Argument Ag' ainSt Initiative Measure 1053
Three Times the Voters Have Approved Initiatives Requiring Either
Two -Thirds Vote of the Legislature or...
... majority vote of the people to raise taxes. Three times.
Yet Olympia took it away this year, despite overwhelming
I
itizen opposition. KING 5's.poll: 68%thought it was
wrong thing to do. When asked whether tax increases
should require two-thirds or a majority, a whopping
74% said two-thirds. Voters want tax increases to be an
absolute last resort.
For the Two Years Following Voters Approval in 2007,1-960 Worked
Exactly as Voters Intended
With 1-960, tax increases were a last resort and Olympia
balanced its budgets without raising taxes.This year
without 1-960, they increased taxes $6.7 billion (cost over
first 10,years says state's budget office). 1-1053 brings back
1-960's protections.
We Need Certainty in Tough Economic Times
The worst thing state government could do is hamper
the conditions for economic growth. Washington lost
16,000 jobs this year — only eight states lost more. We
need an economic climate where families feel confident,
employers expand, job growth is positive. 1-1053 provides
a stable future, giving families and employers the
certainty, they need to prosper,
Olympia Faces Another Massive Deficit Because Unsustainable
Spending Has Once Again Outstripped Revenue
We simply can't afford to have it all. With 1-1053, Olympia
will finally be forced to reform government, prioritize
spending and re-evaluate existing programs. Without
1-1053, they'll resort to job -killing, family -budget -busting
tax increases.
Hold Olympia accountable for your tax dollars —vote yes
on 1053.
Rebuttal of Argument Against
Since 1993, Washington's had the two-thirds requirement.
In those 17 years, during legislative sessions when it's
been in effect, tax hikes were a last resort resulting in
more reform and fewer taxes. When Olympia suspends
it (like this year), tax increases become a first resort with
less reform and much' higher taxes. It shouldn't be easy
for government to take more of the people's money. Let's
bring back the protection Olympia took away. Vote yes.
Argument Prepared by
Erma Turner, beauty shop owner, gathered 2338
signatures, Cle Elum; Darryl Ehlers, farmer, husband,
father, poet, gathered 1158 signatures, Lynden; Eric
Phillips, hiker, label company owner, gathered 2073
signatures, Everett; Larry Stanley, retired small business
owner, active in community, Spokane; Brad Carlson,
family small business owner, Evergreen Memorial
Gardens, Vancouver;Wes Uhlman, former Seattle mayor,
chairAWB Small Business Council._
Contact: (425) 493-8707;YesOn1053@gmail.com;
www.YesOnlO53.com
Things are tough here, but at least we are doing better
than other states. The,two-thi rds majority is a disaster in
California, creating gridlock and making it impossible to
balance their budget. We don't need that here.
Eyman's 1053: California -style gridlock
The two-thirds requirement may sound good, but 1053 is
a prescription for partisan gridlock that will make things
worse. California is a mess because of the two-thirds
requirement— let's not go down that road. 1053 would
mean just 17 legislators (out of 147) on the far left or right
could block a balanced proposal to close Washington's
budget deficit.
Eyman's 1053 harms our communities
Nobody likes taxes, but they pay for important services
like providing a quality education for kids, caring for
seniors and public safety. 1053 keeps us from making
responsible decisions and taking a balanced approach to
the budget crisis. If 1053 had been in, place this year, we
would have cut 70,000 people from the Basic Health Plan,
coverage for another 16,000 kids, slashed nursing home
funding, and eliminated thousands of teachers.
Funded by BP and big banks, 1053 protects special interest
loopholes
Sponsored byTim Eyman, 1053 is funded by out-of-state
corporate interests that want to preserve massive tax
loopholes that benefit them but hurt our communities.,
In fact, BP Oil is 1053s biggest funder! 1053 is the wrong
choice for Washington.
Join teachers, nurses, firefighters, Children's Alliance,
Washington Association of Churches, and others: vote no
on 1053.
Rebuttal of Argument For
Eyman's 1-1053 may sound good at first, but beware of
unintended consequences. The two-thirds requirement
is causing havoc in California, and BP and the big banks
are using 1053 to protect costly special tax breaks that
shortchange Washington families. If it had been in effect
this year, we would have had to make irresponsible cuts
like eliminate maternity care, lay off more teachers, and
cut home care for seniors. Vote no on 1053.
Argument Prepared by
Jerry Reilly, Chair, Eldercare Alliance; Rev. Paul Benz,
Director, Lutheran Public Policy Office of Washington
State; Pam Keeley, Registered Nurse; Andy Coons,
Middle School MathTeacher, President,Tacoma Education
Association; Greg Merkley, Kent Firefighter, Washington
State Council of Firefighters.
Contact: info@VoteNo1053.com
Initiative Measure 1082
Initiative Measure
1082
Proposed by initiative petition:
Initiative Measure
No. 1082 concerns
industrial insurance.
This measure would authorize employers to
purchase private industrial insurance beginning
July 1, 2012; direct the legislature to enact
conforming legislation by March 1, 2012; and
eliminate the worker -paid share of medical -
benefit premiums.
Should this measure be enacted into law?
[ ] Yes
[ ] No
The Official BallotTitle and the Explanatory Statement were
written by the Attorney General as required by Iaw.The Fiscal
Impact Statement was written by the Office of Financial
Management as required by Iaw.The Secretary of State is
not responsible for the content of arguments or statements
(WAC 434-381-180).The complete text of Initiative Measure
1082 begins on page 94.
Explanatory Statement
Written by the Office of the Attorney General
The Law as it Presently Exists
The state has laws establishing a system of
industrial insurance, administered by the
Department of Labor & Industries. With limited
exceptions, this system provides medical benefits
and other compensation to all employees who
suffer illness, disability, or death resulting from
employment -related injuries, without regard
to questions of fault. Based upon this system,
the law prohibits employees from suing their
employers for damages for work -related injuries,
with limited exceptions.
11
The Department of Labor & Industries administers
an industrial insurance fund which pays the
benefits to which injured employees are
determined to be entitled.The fund's primary
source of revenue is a system of insurance
premiums paid into the fund by employers, at
rates determined by the Department based on the
individual claims experience of the employer, the
claim history of particular classes of employers,
and the need for revenue to pay the fund's
obligations. Employees are assessed by'their
employers one-half of the amount the employer
is required to pay for the medical benefit portion
of premiums, with certain exceptions. These
amounts are deducted from the employees' pay.
Under current law, every employer covered by
the industrial insurance laws must either (1)
participate in the state program administered
by the Department of Labor & Industries or (2)
qualify as a self -insured employer. Self -insured -
employers qualify by satisfying the Department
that they have sufficient financial ability to make
prompt and certain payment of compensation
and premium assessments charged'against those
employers. Whether the employer participates
in the state program or is self -insured, the
Department reviews and decides all employee
claims, subject to appeal to the board of industrial
insurance appeals, and thereafter to superior court.
The Effect of the Proposed- Measure, if Approved
This measure would establish a third option for
employers beyond either participating in the state
industrial insurance fund or qualifying as self -
insurers. Beginning on JUly 1, 2012, employers
could instead purchase industrial insurance from
qualified private industrial insurance insurers.
Companies could qualify to issue industrial
insurance policies through licensing and
regulation by the state insurance commissioner.
Private industrial insurers would have the same
rights and responsibilities under the industrial
insurance laws as the Department of Labor
& Industries, and claim decisions by private
industrial insurers could be appealed in the same
manner as claim decisions by the Department.
The measure -would create an industrial insurance
administrative fund and would direct that
appropriations be made to the fund to pay the
expenses of the state insurance commissioner
and the board of industrial insurance appeals in
performing their responsibilities. The measure
would establish a joint legislative task force
Initiative Measure 1082
Initiative Measure 1082
i1c]
12
with members representing the legislature,
employers, industrial insurers, and employees.
The task force would be directed to develop
proposed legislation to conform current statutes
to the provisions of this measure.The measure
states that the legislature would be required to
adopt supplemental legislation implementing this
measure by March 1, 2012.
The measure Would repeal language authorizing
employers to assess their employees for one-half
of the amount the employer is required to pay for
the medical benefit portion of the premium, and
to deduct these amounts from the employees'
pay.The entire premium for the medical benefit
would be paid by the employer.
Fiscal Impact Statement
Written by the Office of Financial Management
Fiscal Impact
Industrial insurance premium paid into state
Trust Funds is estimated to decrease $1.1
billion - $1.43 billion by calendar year 2014 as
employers shift to private insurers. State claim
costs correspondingly decrease as claims shift
from the state to private insurers. State revenue
is estimated to increase $61 million - $75 million
over five fiscal years. Costs are estimated to
increase up to $202 million for the state and
$47.25 million for local governments over five
fiscal years. Assuming no legislative action to
conform statutes to the initiative, industrial
insurance premium paid into stateTrust Funds
and associated costs may increase.
General Assumptions
Some estimates are based on the state's fiscal
year (FY) of July 1 through June 30. Some
estimates are based on a calendar year (CY).
Existing benefits levels to injured employees are
maintained.
Private insurers can provide industrial insurance ,
coverage beginning July 1, 2012.
The state will remain insured by the state's
industrial insurance program (State Fund). Local
governments that are not self -insured will also
remain covered by the State Fund.
Self -insured employers remain self -insured. No
assumption is made that self -insured employers
will seek industrial insurance from private
insurers or the State Fund.
Private insurers will acquire 38.3 percent of the
industrial insurance market in CY 2013, growing
to 53.3 percent in CY 2014.This assumption is
based an the average percentage of State Fund
premium in other states with competitive State
Fund programs using information from the National
Council on Compensation Insurance. Growth
in private industrial insurance is fused on the
assumption that large employers and participants
in retrospective rating programs, which represent
more than half of the State Fund, are more likely to
change to private insurers.
Of the industrial insurance market, 6.2 percent
will be referred to the assigned risk plan.This
assumption is based on the average percentage
of market assigned to risk plans in all states that
use information from the National Council on
Compensation Insurance.
State and Local Revenue Assumptions
Industrial Insurance Premiums
The state's Industrial InsuranceTrust Funds (state
Trust Funds) are self-contained funds into which
employers pay premiums for no-fault industrial
insurance coverage for their employees with the
State Fund.The amount of premium deposited
into stateTrust Funds will decrease as some
employers obtain private industrial insurance
coverage. However, the amount of premium that
will shift to private insurers cannot be precisely
estimated because the future competitive market
is unknown. Therefore, the fiscal impact statement
uses the following range of assumptions for the
estimate:
A low range is calculated using State Fund 2010
premium rates. At this rate, premiums paid
to private insurers and the assigned risk plan
combined is estimated to be $821 million in
CY 2013 and $1.1 billion in CY 2014.Therefore,
premium paid into stateTrust Funds is estimated at
$619 million in CY 2013 and $828 million in CY 2014.
A higher range is calculated using State Fund
premium at the 2010 actuarially estimated rate,
which is increased for wage inflation at 2.5 percent
and medical inflation at 5.5 percent. At this rate,
premium paid to private insurers and the assigned
risk plan combined is estimated to be $1 billion
in CY 2013 and $1.43 billion in CY 2014.Therefore,
premium deposited into stateTrust Funds is
estimated at $805 million in CY 2013 and $1.37
billion in CY 2014.
These estimates assume private insurers will
collect sufficient premium to cover future cost of
living adjustments to benefit levels.
Industrial Insurer License Fees
The private insurers who offer industrial
insurance must be licensed by the Office of
Insurance Commissioner (OIC). Using the
following assumptions, OIC estimates state
license fees will be less than $11,000 in FY 2013
and $8,250 each fiscal year thereafter, assuming a
total of 320 insurers and 500 agents and brokers
(producers) ultimately will be licensed to sell
industrial insurance in Washington. Total state
revenue from fees,is estimated at $27,500 over the
next five fiscal years.
Industrial Insurer Assessments
The OIC must collect an assessment from
private insurers sufficient to cover OIC's costs
to administer its duties.The OIC estimates state
assessments of $3.3 million in FY 2013, $3.6
million in'FY 2014 and $3.7 million in FY 2015 and
each fiscal year thereafter to cover its costs. Funds
must be deposited into a new industrial insurance
administrative account. Because assessment
increases are assumed to require legislative
approval, revenue from assessments is assumed
to be $3.3 million each fiscal year for a total of
$9.9 million for three fiscal years.
Taxes on Insurers
Private industrial insurance premiums will be
subject to the insurance premium tax. Insurance
agent commissions will be subject to the
business and occupation (B&O) tax. Both taxes
are deposited into the State General Fund and can
be used for any governmental purpose. Using the
"Industrial Insurance Premiums" assumptions
above and a 7.2 percent commission rate to brokers
and agents (from Best's Aggregates & Averages
2007 nationwide average commission rate for
industrial insurance), an estimated $51 million to
$65 million will be deposited into the State General
Fund from taxes on private insurers.The following
table shows the range of revenue generated by tax
type for each fiscal year: See page 15, Figure 1.
Approximately 38 cities and towns impose a local
B&O tax. Because it is not known where private
insurers will locate, the amount of revenue
generated from local B&O tax is indeterminate.
State and Local Expenditure Assumptions
The amount of state expenditures for claims costs
will correspondingly decrease along with premiums
paid into theTrust Fund. (See "Industrial Insurance
Premiums" section in State and Local Revenue
Assumptions above for estimate.)The initiative is
assumed to have no impact on local government
expenditures.
State and Local Cost Assumptions
Industrial Insurance Premiums
The initiative requires employers to pay the full cost
of the Medical Aid premium. Under current law,
the state deducts one-half of Medical Aid premium
from state employee pay.This estimate assumes the
same for all local governments covered by the State
Fund. Assuming the number of full-time equivalent
employees in CY 2009 and current 2010 Medical
Aid premium rates, the estimated cost to the state
is $22 million and the estimated cost to the local
governments is $10.5 million in CY 2011 and each
calendar year thereafter. Over five fiscal years, this
estimate totals $99 million in state costs and $47.25
million in local government costs.This estimate
assumes employers will continue to collect half
of the Supplemental Pension Fund premium from
employees.
Office of Insurance Commissioner (OIC) Administration
The OIC will assume costs for regulation of
private insurers who offer industrial insurance,
which will include licensing activities, financial
examinations and oversight, analysis of rate
filings, responding to consumer complaints, rule
making, and legal and public affairs. State costs
are estimated at $186,200 for FY 2011, $1.9 million
for FY 2012, $3.3 million for FY 2013, $3.6 million
for FY 2014 and $3.7 million for FY 2015.Total
estimated state costs are $12,686,200 over the
next five fiscal years.These state costs assume
the following:
Private insurers will be subject to the regulatory
requirements ofTitle 48 RCW involving admission,
financial, solvency and market analysis oversight.
Private insurers will be subject to the unfair
claims practices rules and statutes.
The initiative gives no authority to OIC to approve
or deny manual rates adopted by a private rating
organization. Variations from the manual rates
will require OIC approval.
Private insurers will pay all costs and fees
associated with the licensed rating organization
selected to prepare rate -making documents.
Employers who purchase industrial insurance
coverage from the assigned risk plan will pay all
14
Initiative Measure 1082
Initiative Measure 1082
15
costs associated with that plan.
Consumers who disagree with claims decisions
made by private insurers will be able to file
complaints with OIC. '
The OIC cannot assess private insurers for Board
of Industrial Insurance Appeals (BIIA) expenses.
No resources will be devoted to private industrial
insurance fraud prevention, detection or prosecution.
No guaranty fund coverage will exist for insolvent
private insurers. No costs are assumed for the
state. Losses will be absorbed by employers,
injured employees and medical providers.
Department of Labor and Industries (L&I) Administration
The initiative will generate state costs related to
L&I activities that can be estimated as follows:
Costs estimated up to $1.1 million for information
technology changes, rule making and actuarial
analysis to change the State Fund 'premium basis
to total payroll by January 1, 2011.
Costs estimated up to $16.5 million in FY 2012 for
additional information technology changes for fraud
detection, policy issuance and accounting systems.
Costs estimated to average $317,000 annually
over the next five fiscal years for staff to pursue
fraud and employers who are not insured.
Costs estimated at $5.94 million each fiscal year
for the Employment Standards Program and
Apprenticeship Program that can no longer be
funded from theTrust Fund beginning FY 2013.
Because L&I has existing statutory authority to,
assess fees for the state's occupational safety
and health program and the University of
Washington's environmental research facility, no
change in state revenue or state expenditures is
assumed for maintaining the programs at current
levels. However, state costs include $412,000 in
FY 2013, $398,000 in FY 2014 and $398,000 in FY
2015 for L&I to collect these fees.Total state costs
are estimated at $1,208,000 for three fiscal years.
Assuming -no further legislative action to conform
current statutes to the initiative, State Fund
premiums and costs (State Fund and L&I) may
increase, but the amount is, indeterminate for the
following reasons: '
Current law requires the State Fund to provide
coverage to all employers. If the State Fund is
unable to deny coverage to certain employers
who should be insured by the assigned risk plan,
premiums and costs will increase.
Current law requires the State Fund to cover
claims of employees whose employers did not
obtain industrial insurance through the State
Fund, self-insurance or a private industrial
insurer. As employers shift to private insurers,
this cost may change.
Although employers insured through the State
Fund will decrease, additional administrative
costs may be 'riecessary for the State Fund to
compete with private insurers.
L&I may have costs or savings related to changes
in rate development, premium collection practices
and policy issuance activities.
Board of Industrial Insurance Appeals Administration
Employers and employees covered -by private
industrial insurers have appeal rights to the
BIIA. BIIA estimates a 34 percent increase in
appeals based on the ratio of appeals to claims
for private insurers as compared to the same
ratio for the Oregon SAIF state -chartered workers
compensation company over a three-year period.
Additionally, appeals -of private insurers' decisions
are assumed to be a state cost because OIC cannot
assess private insurers for BIIA expenses. State
costs estimated for appeals and case management
changes are estimated at $705,000 in FY 2012,
$7.7 million in FY 2013, and'$10 million in FY 2014
and $10 million in FY 2015.Total state costs are
,estimated at $28,422,000 for four fiscal years.
The, Department of Revenue Administration
Assuming most agents and brokers (producers)
who will be licensed to sell industrial insurance are
currently reporting taxpayers, state costs of up to
$50,000 are estimated for the,Department of Revenue
to administer the B&O taxes.Total state costs are
estimated at $150,000 over the next five fiscal years.
Joint Legislative Task Force
The initiative creates a joint legislative task force
on private competition for industrial insurance for
the purpose of developing proposed legislation to
conform current statutes to the provisions of the
initiative.The task force expires on December 31,
2012.The Legislature assumes no additional costs
for the task force. Assuming that L&I is tasked to
provide actuarial, po-licy,and technical assistance
to the task force, state costs are estimated at
$345,000 for FY 2011, $571,000 for FY 2012 and
$289,000 for, FY 2013, for a total of $1,205,000.
Figure 1 Revenue Ranges byTaxType
Fiscal Year
I 2011
2012
2013
2014
2015
Insurance
$0
$0
$8,211,000 —
$19-430,000 —
$22,440,000 —
PremiumTax
. $10,700,000
$24,370,000
$28,600,000
Business and
$0
$0
$262,000 —
$327,000 —
$391,000 —
OccupationTax
$322,000
$410,000
$4918,000
Total State
$8,473,000 —
$19,757,000 —
$22,831,000 —
General Fund
$0
$0
Revenue,
$11,022,000
$24,780,000
$�9,098,000
16
Initiative Measure 1082
Argument For Initiative Measure 1082
L&I's Workers Compensation Monopoly is Hurting Our Economy...
...by killing jobs and failing workers. L&I taxes are going
up every year with no end in sight. Injured workers stay
off work longer here than anywhere else. L&I is inefficient
and unaccountable because it is a government monopoly.
It doesn't have to compete for your tax dollars.
1-1082 Provides More Choices...
...by ending L&I's monopoly and allowing companies to
sell workers' compensation insurance in,Washington, with
oversight by our Legislature anq consumer protection
regulations. Just like what works in 46 other states.
I-1082 Provides Tax Relief to Working Families...
...at a time when they need it the most. Washington is
the only state where workers pay L&I taxes, up to $315
million in 2010. 1-1082 ends the tax on workers in favor of
a competitive system that will lower costs for everyone.
Even picking up the workers' share, employers know
competition will ultimately save them money. Like it has
in Oregon.Their competitive system hasn't had a tax
increase in 20 years. But taxes here have gone up 53%
since 2000 and are expected to skyrocket again next year.
What ate they Afraid of?
1-1082 doesn't reduce benefits. It provides choices.
So why are union bosses and personal injury lawyers
spending millions against it? It's simple. They are terrified
to lose their political and financial grip on L&I.The status
quo works — for them. Don't fall for their exaggerations
and fear -mongering.
Vote yes on I-1082. Let's get Washington back to work.
Rebuttal of Argument Against
1-1082 was written by small business groups fed up with
the state's failing workers' compensation monopoly.
There are no special exemptions for insurance
companies. Read the initiative: nothing in 1-1082 exempts
anyone from consumer protection laws or insurance
regulations — the state will fully regulate all insurers.
Injured workers will,be protected by the same laws and
entitled to the same benefits as they are today.
1-1082 simply ends the state's monopoly and gives
employers choices.
Argument Prepared by
Patrick Connor, State Director, NFIBNVashington,
Olympia; Betty Neighbors, owner, TERRA Staffing Group,
Everett; Joel Kreti, State Representative and owner,
Promised Land Ranch, Wacounda; Steve Robinson,
Spokane Rock Products/AWB Board member, Spokane;
Mark Shaffer, owner, Mark's Drywall, Lacey; Mike
Gilmartin, Commercial Creamery Company, Spokane.
Contact: (800) 228-4229; info@ SaveOurJobsWA.com;
www.SaveOurJobsWA.com
Argument Against Initiative Measure 1082
No 1-1082: Written and Sponsored by the Insurance Industry.
1-1082 was written by the private insurance industry,
which will spend millions trying to pass this initiative
so they can unfairly profit from Washington's workers'
compensation.
According to Insurance Commissioner Mike Kreidler,
the insurance industry wrote 1-1082 to give themselves.
special exemptions that no other line of insurance is
allowed — not car, home, life or health insurance.
No 1-1082: Read the Fine Print
Allows private insurers to set their own rates with
virtually no oversight.
Exempts workers' compensation insurers from the voter -
approved Insurance Fair Conduct Act, meaning workers'
compensation insurers can wrongfully and intentionally
delay and deny legitimate claims for years and there's
virtually no way to hold them accountable. •
Won't protect businesses, workers or doctors if an
insurance company suddenly declares bankruptcy.
No 1-1082: The wrong solution for Washington
Washington's workers' compensation system is there
when you and your family need it. If you're injured on the
job, workers' compensation allows you to seek prompt
and appropriate'care, pays your doctor bills and provides
some income until you can work again. It can also provide
job retraining if your injury prevents you from returning
to your previous line of work.
1-1082 is especially tough on small businesses, which
would be left to pay skyrocketing rates after insurance
companies had cherry -picked large and less risky
businesses.
No oversight. No regulation. No accountability.
Vote no on 1-1082: It's for the insurance industry. Nat for you.
Rebuttal of Argument For
Please read the fine print before you buy this insurance
industry sales pitch. 1-1082 will increase costs for small
businesses — $315 million according to 1082s industry
backers — new costs that small employers can't afford
in this tough economy. All of us pay: the state Office of
Financial Management says 1082 costs taxpayers $250
million. Insurance Commissioner Kreidler confirms that
1082's hidden provisions gut consumer protections and
won't hold insurance companies accountable. Vote no.
Argument Prepared by
Mike Kreidler, Washington State Insurance Commissioner;
Brian Sonntag, Washington State Auditor; Don Orange,
owner, Hoesly ECO Autof7ire, Vancouver; Don Grillot,
Business manager, International Brotherhood of Electrical
Workers 77; Judy Huntington, MN, RN, Executive
Director, Washington State Nurses; Kelly Fox, President,
Washington State Council of Fire Fighters.
Contact: (206) 604-9767; info@voteno1082.com;
www.votenol082.com
Initiative Measure 1098
Initiative Measure
1098
Proposed by initiative petition:
Initiative Measure
No. 1098 concerns
establishing a state
income tax and
reducing other taxes.
This measure would tax "adjusted gross income"
above $200,000 (individuals) and $400,000 (joint -
filers), reduce state property tax levies, reduce
certain business and occupation taxes, and
direct any increased revenues to education and
hea Ith.
Should this measure be enacted into law?
l Yes
[ I No
The Official BallotTitle and the Explanatory Statement were
written by the Attorney General as required by Iaw.The Fiscal
Impact Statement was written by the Office of Financial
Management as required by Iaw.The Secretary of State is
not responsible for the content of arguments or statements
(WAC 434-381-180).The complete text of Initiative Measure
1098 begins on page 96.
Explanatory Statement
Written by the Office of the Attorney General
The Law as it Presently Exists
The state of Washington does not currently
impose an income tax or an excise tax on
the receipt of_income.The state does impose
a business and occupation (B&O) tax on the
privilege of engaging in various business
activities in the state such as manufacturing,
17
selling, or providing services. Although there
are some limited deductions, the tax is generally
imposed on the gross income of the business.
The law authorizes a credit against the tax that
is,taken on the tax return filed by the business.
The credit reduces the amount of tax owed by the
business. For most businesses, the credit is $35
times the number of months covered by the tax
return. For, a business that files a tax return once
a year, covering twelvemonths, the maximum
credit is $420 ($35 x 12). For some businesses that
provide services to their customers, the credit
is $70 times the- number of months covered by
the tax return. For such a' business that files a tax
return every month, the maximum credit that can
be taken on the monthly return is $70. If the tax
exceeds the amount of the credit, the credit is
reduced. If the tax owed is more than twice the
amount of the. credit, the credit is eliminated. The
B&O tax is deposited in the state general fund.
The state, cities, counties, and other local
jurisdictions are authorized to impose a property
tax in varying amounts. The property tax is a
tax based on the value of an owner's taxable
property.The state is authorized to impose a
property tax for the support of the common
schools.The'state property tax is one component
of the total property tax bill received by a property
owner, which also includes property taxes levied
by other authorized jurisdictions.The procedure
for imposing the tax begins when the state levies
the tax. The levy is the total amount of tax the
state is authorized to collect.The levy is calculated
based on certain constitutional and statutory
requirements and limitations. Once the total
amount of the state school levy'is determined,
it is divided by the value of all of the taxable
property in the state to determine the rate of the
tax.The rate of the property tax is also subject to
certain constitutional and statutory requirements.
The amount of state property tax a property
owner pays is determined by multiplying the tax
rate by the value of-his,or her taxable property.
The state property tax is deposited in the state
general fund and the student achievement fund
for later distribution to the school districts.
The Effect of the Proposed Measure, if Approved
If approved, this measure would impose an excise
tax on the receipt of taxable -income beginning in
2012. For a• married individual filing a joint return
with his or her spouse and for every surviving
spouse, the tax would be as follows:
Initiative Measure 1098
Taxable Income
Tax
$0-$400,000
$0
$400,001-$1,000,000
5% of the amount
above $400,00D
$1,000,001 and above
$30,000 plus 9% of
the amount above
$1,000,000
For every individual, other than a surviving
spouse, who is not married, a,nd for a married
individual who does not file a joint return with his
or her spouse, the tax would be as follows:
Taxable Income Tax
$0-$200,000 $0
$200,001-$500,000 5% of the amount
above $200,000
$500,001 and above 1 $15,000 plus 9% of
the amount above
$500,000
This measure would also increase the credit
against the B&O tax to $4,800 a year. If the tax
exceeds the amount of the credit, the credit would
continue to be reduced. If the tax owed is more
than twice the amount of the credit, the credit
would continue to be eliminated.
This measure would also reduce the state
property tax Ievy.The state levy would be
calculated in the way it currently is, and that
figure would be reduced by twenty percent.The
reduced levy would be divided by the value of all
of the taxable property in the state to determine
the rate of the tax.The amount of state property
tax a property owner pays would continue to
be determined by multiplying the tax rate by
the value of his or her taxable property.The
twenty percent levy reduction would not apply to
property taxes imposed by other jurisdictions.
Before spending the revenue generated by the
tax imposed by this measure, the state treasurer
would be required to calculate the loss to the
general fund resulting from the increase in the
B&O tax credit and the reduction of the state
property tax levy, and deposit the revenue
generated by the new tax into the state general
fund to replace the lost revenue.
After the state treasurer has made the deposit
to the general fund to replace the lost revenue,
the additional revenue generated by the tax
imposed by this measure would, be deposited in
a dedicated account in the state treasury. Seventy
percent of the revenue deposited in this dedicated
account would be deposited in the education
legacy trust account. Funds in the education
legacy trust account may be used to enhance
student achievement in grades K-12 by, for
example, reducing class size, establishing special
tutoring programs, or providing professional
development for educators.The funds may also
be used to expand access to higher education.
Thirty percent of the funds deposited in the
dedicated account would be used to supplement
the state's basic health plan, provide for state
and local public health services, provide long-
term care services for seniors and people with
disabilities, and for other health services.
The tax imposed by this measure would apply
differently to residents and nonresidents of
Washington.The tax is imposed on all of the
taxable income of a resident. For a nonresident,
the tax would be imposed on all the taxable
income derived from sources within Washington.
A resident of Washington would include an
individual who lives in the state all year or claims
Washington as his or her home for federal income
tax purposes. It would also include an individual
who considers Washington his or her residence,
unless the individual does not maintain a
permanent residence in Washington or any other
place, and does not spend more than thirty days
in Washington during the tax year. An individual
who does not consider Washington his or her
residence, but maintains a permanent residence
in Washington and spends one hundred eighty-
three (183) days in the state would be considered
a resident unless the individual satisfies the
Department of Revenue that he or she is only in
Washington for temporary or transitory purposes.
The tax imposed by this measure would apply
to taxable income.Taxable income is adjusted
gross income, as determined under the federal
internal revenue code, less two adjustments set
out in the measure. First, taxable income would
not include income that is exempt from state
income tax under federal law. Second, because
a nonresident's adjusted gross income may
include income derived from sources outside of
Washington, the measure sets out requirements
to calculate a nonresident's taxable income that is
derived from sources within Washington.
Initiative Measure 1098
Employers would be required to withhold
estimated tax and pay it to the Department of
Revenue.The amount withheld would be a credit
against any tax due during the taxable year.
An employer who collected the estimated tax
and failed to pay it to the Department would be
personally liable to the state for the amount of
the tax, plus interest and a penalty. An employer
who fails to collect the estimated tax would be
personally liable to the state for the amount of
the tax, unless the failure was due to a reasonable
cause and not willful neglect. It would be a gross
misdemeanor for an employer to appropriate
or convert the estimated taxes withheld. An
individual, who is required to make estimated
tax payments under the internal revenue code,
must also make estimated payments to the
Department.
Only married couples filing a joint return or a
surviving spouse with taxable income in excess
of $400,000 or an individual with taxable income
in excess of $200,000 would be required to file
a state tax return. If a married couple files a
joint federal income tax return, they would be
required to file a joint state tax return, unless one
spouse is a Washington resident and the other
is not.The date for filing the state tax return is
the due date for the federal income tax return.
The Department of Revenue would use the
taxpayer's federal tax return as the main source
of taxpayer information. Individuals subject to the
tax imposed by this measure would be required
to keep records, and the Department of Revenue
would be authorized to inspect those records.
The Department of Revenue would be required
to refund all taxes improperly paid or collected.
State law governing the administration of other
state taxes would also apply to the tax imposed
by this measure.The Board ofTax Appeals would
have jurisdiction over appeals relating to the
taxes imposed by this measure.
The provisions of the internal revenue code
would apply unless they are inconsistent with
this measure.The internal revenue code is the
United States Internal Revenue Code of 1986, and
the amendments in effect on January 1, 2010.The
Department of Revenue is authorized to adopt
rules under the Administrative Procedure Act.
The rules should be consistent with the internal
revenue -code, to the extent possible without
being inconsistent with this measure.
The measure would provide that the tax imposed
may not be increased for any income level
without a majority vote of the legislature and
approval of the voters in an election.
Fiscal Impact Statement
Written by the Office of Financial Management
Fiscal Impact
19
Beginning calendar year 2012, the income tax
and tax relief are estimated to generate a net
increase in state revenue of $11.16 billion over
five calendar years to be used exclusively for
education and health services.The 20 percent
state property tax levy reduction will allow
some local property tax districts to levy an
increased amount; this revenue impact is
expected to be minimal. State implementation
costs are estimated at $39.3 million over five
fiscal years; one-time computer programming
costs are estimated at $50,000 for the state
and each university and local government with
employees subject to the income tax.
State Revenues
State revenues are estimated to increase
by $11.16 billion over five calendar years, as
described on page 22, Figure 2.1.
State Income Tax Assumptions
The tax will be based on the 2012 federal
tax year and first imposed January 1, 2012.
Therefore, employer withholding of tax and
quarterly estimated tax payments begins in
2012. The first tax return will be due April 15,
2013.
Since 2005, the Washington State Department
of Revenue has maintained an income tax
model to estimate the revenue impacts of
proposed legislation. This estimate is based
on that model, which was most recently used
during the 2010 legislative session to estimate
the revenue impacts of Senate Bill 6250.
The model contains data for 2006 income,
for the 2007 federal tax year from 3.2 million
state tax returns. Adjustments are made in
the model for the June 2010 Washington State
Economic and Revenue Forecast for personal
income average growth of 3.6 percent, wages
and salaries average growth of 3.44 percent
and the United States implicit deflator.
Adjustments are also made to the model
for IHS Global Insight's national forecast for
20
Initiative, Measure 1098
dividends and interest income average growth
of 7.8 percent, and proprietors income average
growth of 7.4 percent.
It is estimated that the tax will be paid on an
estimated 38,400 Washington state tax returns —
12,400 individual tax returns and 26,000 married
joint, head of household and widower returns.
Growth in the tax is assumed to be 3 percent each
year.
Compliance with the income tax is assumed at 90
percent for the first tax year.
State Property Tax Assumptions
The state property tax levy reduction begins with
the 2011 state levy, which is collected in 2012.
The state property tax levy reduction occurs after
the levy is calculated each year, and does not
affect the base levy amount.
Calendar years 2012 and 2013 state property tax
levies are based on the June 2010 Washington
State Economic and Revenue Forecast. For
calendar years 2014-2016, the levies are estimated
to increase, assuming that property market values
and new construction grow at 6 percent per year,
and state assessed properties grow at 3 percent
per year.
State Business and Occupation Tax Credit for Small
Business
The increase in the tax credit begins with tax
returns filed after January 1, 2012. For annual
taxpayers, this includes the 2011 tax return; for
quarterly taxpayers, this includes the fourth
quarter tax return; and for monthly taxpayers, this
includes the December 2011 tax return.
Using Washington State Department of Revenue
excise tax return data for fiscal year (FY) 2009, the
estimate assumes that the increased tax credit
will exempt an estimated additional 118,000
taxpayers from all state business and occupation
(B&O) taxes, and an additional 39,000 taxpayers
will have a portion of their B&O tax liability
reduced.
Growth in the tax credit is assumed to be 3.75
percent each year.
The amount of tax relief from the tax credit to
be replaced in the State General Fund is the
difference between current tax credit and the
increased tax credit in the initiative.
Local Revenues
The state Constitution limits the amount of
property taxes that may be imposed on an
individual parcel of real or personal property
without voter approval to 1 percent of its true
and fair value. When the 1 percent constitutional
limit is exceeded, junior taxing district levies are
prorated (reduced) as provided in RCW 84.52.010.
The 20 percent reduction in the state property tax
levy will create additional property tax capacity
and allow some local property tax districts to levy
an increased amount.This impact is expected
to be minimal because few taxing districts
are currently prorating due to the 1 percent
constitutional limit. Additionally, this estimate
assumes no local revenue impact from the state
income tax or increased state B&O tax credit for
small business.
State Expenditures
Seventy percent of net revenue received by the
Trust Fund must be deposited into the Education
Legacy Trust Account to be used exclusively for
education purposes described in RCW 83.100.230.
Thirty percent of net revenues received by the
Trust Fund are to be used exclusively for health
services.
Before computing or spending net revenue in the
Trust Fund, the State Treasurer must certify each
year the revenue that would have been deposited
into the State General Fund but for the state
property tax levy reduction and the increased
B&O tax credit for small, business.The State
Treasurer must then make deposits from theTrust
Fund to the State General Fund as necessary to
replace this revenue. Using these assumptions,
the following are estimates of the additional
amounts that are available for state expenditure.
Estimates are described using the state's fiscal
year (July 1, 2011, through June 30, 2012, is the
fiscal year 2012).
The Washington State Department of Revenue
will calculate the state property tax levy reduction
in the normal levy process, which is completed by
January 15 of each year.Therefore, it is assumed
that the State Treasurer will certify and deposit to
the State General Fund those amounts necessary
to replace this revenue on February 1, 2012, and
each February 1 thereafter.
Using filed excise tax returns, the Washington
State Department of Revenue will calculate
Initiative Measure 1098
every six months the reduced revenue from the
increased B&O tax credit for small business.
Assuming the Washington State Department of
Revenue supplies this information to the State
Treasurer on August 15 and March 15 of each
year, the State Treasurer will certify and make
deposits to the State General Fund to replace this
revenue on September 1, 2012, and April 1, 2013,
and each September 1 and April 1 thereafter.
The timing of deposits affects available funds,
but does not generate new revenue to the State
General Fund.
Assuming all deposits into the State General Fund
must be completed before net revenues can be
spent, the'estimate assumes that net spending
from theTrust Fund begins in FY 2013. (See page
22, Figure 2.2.)
State and Local Cost Estimate Assumptions
The Washington State Department of Revenue will
incur additional costs to administer the income
tax.The largest cost will occur in FY 2012 from
the purchase of computer hardware and off -the -
shelf computer software to collect the tax, accept
and audit tax returns, and process tax refunds
and assessments. Costs also include additional
staff, rule -making and policy activities, taxpayer
mailings and workshops, supplies and materials.
The increased state B&O tax credit for small
business will result in cost savings from 41,000
taxpayers no longer being required to file excise
tax returns who will be placed on active non -
reporting status.
The Board ofTax Appeals will have jurisdiction
over appeals related to income tax. Using appeal
statistics from boards in other states with a state
income tax to determine workload and staffing
requirements, the board assumes 300 appeals
each fiscal year. Costs are for additional staff,
information technology upgrades, training,
supplies and materials.
The following are net costs to the state, excluding
costs for payroll system changes: (See page 22,
Figure 2.3.)
Based on the Washington State Office of
Financial Management's 2009 Personnel Detail
Report and information from the Washington
State Department of Personnel, University of
Washington, Washington State University,
Washington State Association of Counties and
Association of Washington Cities, costs are
S_ ?I
21
estimated up to $50,000 total for computer
programming changes to each payroll system
for each jurisdiction with employees who are
subject to tax. No costs are associated with the
Washington State Department of Retirement
Systems, assuming that the initiative does not
require withholding of tax from public employee
pensions.
22
Initiative Measure 1098
Figure 2.1 State
Revenue Increase
CalendarYear
2012
2013
2014
2015
2016
IncomeTax
$2,213,000,000
$2,937,000,000
$3,025,000,000
$3,116,000,000
$3,209,000,000
Business &
Occupation Tax
($250,000,000) ($259,000,000)
($261,000,000)
($271,000,000)
($281,000,000)
Credit
($414,000,000)
j
PropertyTax
($383,000,000) ,
($393,000,000)
($403,000,000)
($425,000,000)
Relief
Total Net
Revenue to
$1,580,000,000
'$2,285,000,000
$2,361,000,000
$2,431,000,000
$2,503,000,000
Trust Fund
Figure 2.2 Additional Funds Available for State Expenditure
Fiscal Year
2012
2013
2014
2015
2016
Education
Legacy Account
$0 $1,106,000,000
$1,599,500,000
$1,652,700,000
$1,701,700,000
Net Revenue in
Trust Fund for
$0
$474,000,000
$685,500,000
$708,300,000
$729,300,000
Health Services
Total Revenue
Available for
$0
.$1,580,000,000 $2,285,000,000
$2,361,000,000
$2,431,000,000
Spending
Figure 2.3 State
Net Costs
Fiscal Year
2012
1 2013
_
1 2014
2015
2016
Department of
-
$16,723,700
$6,709,700
$4,995,900
$4,994,400
$5,026,900
Revenue
Board of Tax
$0
$41,000
$260,000 ,
$257,000
$259,000
Appeals
Total State
Costs
$16,723,700 '
$6;750,700
$5,255,900
$5,251;400
$51285,900
Initiative Measure 1098
Argument For Initiative Measure 1098
For years, Bill Gates Sr. called on Olympia to reform our
tax code to lower taxes for the middle class and small
businesses, but his pleas were ignored.That's why Gates
Sr. and civic leaders proposed 1-1098, which reduces taxes
for the middle class and small businesses while raising
dedicated funding to restore deep cuts to education and
health care.
Middle Class Tax Cuts
1098 will cut taxes for the middle class and help our
economy: cut the state property tax on homeowners
and businesses by $357 million; eliminates B&O tax for
small businesses: smallest 81 percent of businesses in
Washington will nq longer pay any B&O; income tax
limited to the richest 3 percent- by law, there will not be
one penny of income tax on income under $400,000 a
year for couples ($200,000 for individuals).
Implements regular audits, requires a public vote for any
change to the income tax.
Levels the Playing Field
Washington ranks dead last - 50th of 50 states - in tax
fairness. Middle class families pay four times the tax rate
of the rich. 1098 restores fairness.
Funding for Education, Health
Education and health care have been slashed - 3,000
teachers were laid off, 40,000 people Lost basic health.
With the wealthy paying their fair share, 1098 will nel'$1
billion annually dedicated to funding K-12, college tuition,
the Basic Health -Plan and long-term care for seniors. -
1-1098 benefits the middle class and small businesses -
vote yes.
Rebuttal of Argument Against
A small group of very rich people who benefit from'
the status quo are using fear tactics to attack 1098.The
truth is 1098 slashes the state property tax 20 percent,
eliminates the B&O tax for small businesses and boosts
the economy. By law, the legislature is prevented from
extending the tax on the rich to others or increasing it —
any attempt would face a statewide vote.The people will
have the final say.
Argument Prepared by tt�
Bill Gates, Sr., tax reforrh advocate; Janine Vaughn,
owner, Revival Lighting (Spokane), board, Main Street
Alliance; Sonya Langford, 7th Grade teacher, Board
member, Washington Education Association; Walt Bowen,
President, Washington State Senior Citizens Lobby;
Linnea Hirst, President, League of Women Voters of
Washington; Clair Ervin,Tacoma small business owner, C.
Ervin Construction LLC.
Contact: (206) 225-4610; info@Yeson1098.com;
www.YesonlO98.com -
23
Argument Against Initiative Measure 1098
Without your vote against Initiative 1098, Olympia will expand an
income tax to everyone.
Don't trust Olympia with a state income tax. Vote no on
1098 or a simple majority of the legislature will extend
this income tax to everyone in just two years. Once in
place, income tax rates will go up just like the sales tax.
Passing 1098 will impose new income taxes of almost
$2 billion in the first year alone. Earlier this year, the
legislature already increased taxes by $800'million
per year. When,our state economy desperately needs
new jobs to recover from the recession, we don't need
massive new tax increases.
Politicians in Olympia need to prioritize spending, not
increase taxes.
Income tax revenues will be spent as the legislature pleases.
Supporters of 1098 claim the revenue will be used for
education and health programs, but the truth is the
money can be spent by the legislature on anything it
wishes. Olympia raids "trust accounts" in the budget all
the time.The modest business and property tax cuts in
1098 can be swept away in just two years, as well.
A new state income tax will result in fewer new iobs.
In urging voters to defeat 1098, The Seattle Times wrote,
"1-1098 also takes away the most important tax -based
advantage Washington has in attracting business and jobs
here: our lack of a state income tax.This state needs that
advantage.:."
Vote no on a state income tax.
Visit defeat1098.com for the'full story
Rebuttal of Argument For
1098 opens the door to a state income tax on everyone.
Our state constitution allows a simple majority in Olympia
to amend any initiative after two years. Every initiative
passed in the last 20 years providing dedicated fund
programs has been changed in Olympia.
The legislature has raided billions of dollars out of 74
dedicated budget accounts in recent years, including
those for education and health programs.
Stop the largest tax increase in state history:
Argument Prepared by
Steve Appel, President of the Washington Farm Bureau;
Don Brunell, President of the Association of Washington
Business; John Drescher, Executive Director of Tech Net
Northwest; Steve Mullin, President of the Washington
Roundtable; Mike Sotelo, President, King County Hispanic
Chamber of Commerce; Joseph Zarelli, State Senator.
Contact: info@defeatl098.com; www.defeatl098.com
Initiative Measure 1100
Initiative Measure
1100
Proposed by initiative petition:
Initiative Measure No.
1100 concerns liquor
(beer, wine and spirits).
This measure would close state liquor stores;
authorize sale, distribution, and importation of
spirits by private parties; and repeal certain
requirements that govern the business operations
of beer and wine distributers and producers.
Should this measure be enacted into law?
[ ] Yes
[ No
The Official BallotTitle and the Explanatory Statement were
written by the Attorney General as required by Iaw.The Fiscal
Impact Statement was written by the Office of Financial
Management as required by Iaw.The Secretary of State is
not responsible for the content of arguments or statements
(WAC 434-381-180).The complete text of Initiative Measure
1100 begins on page 102.
Explanatory Statement
Written by the Office of the Attorney General
The Law as it Presently Exists
Currently, the state controls the sale and
distribution of spirits in Washington. The term
"spirits" refers to the alcoholic beverages
commonly called "hard liquor" (whiskies, vodka,
gin, etc.), any beverage containing distilled
alcohol (except flavored malt beverages), and
wines exceeding twenty-four percent alcohol
by volume. Spirits are sold at retail by state
liquor stores and contract liquor stores (which
are businesses selling liquor on behalf of the
state through a contract with the state). Spirits
are distributed within Washington by the state
Liquor Control Board.The Board purchases spirits
from manufacturers, distillers, and suppliers,
furnishes spirits to state liquor stores, and sells
spirits directly to authorized purchasers, such as,
restaurants. Spirits manufacturers, distillers, and"
suppliers may sell spirits within the state'only to
the Board.
The Liquor Control Board is responsible for the
general control, management, and supervision of
all state liquor stores and contract stores, as well
as the state's spirits distribution operation.The
Board regulates the kind, character, and location
of liquor advertising.The Board is not authorized
to advertise its sales of spirits.
The Liquor Control Board sets prices for spirits
based on wholesale cost, a markup by the Board,
and taxes.The net proceeds from the markup on
the sales of spirits are distributed to the state,
cities, and counties, according to,formulas set
by state law. A variety of taxes are imposed on
the retail sale of spirits.The generally applicable
retail sales tax does not apply to spirits.The tax
revenues from sales of spirits are distributed to
the state, cities, counties, and to fund specific
state and local programs, according to formulas
established by state law.
Under existing law, private parties who are
licensed may sell and distribute beer and wine
not exceeding twenty-fou"r percent alcohol by
volume. Private beer and wine license holders
operate under a "three-tier system :' Under the
three-tier system, there are separate licenses
for (1) manufacturing, (2) distributing, and (3)
retailing of beer and wine.The three-tier system,
regulates the financial relationships and business
transactions between licensed parties in the three
tiers. Retailers are allowed to purchase beer and
wine only from licensed distributors, with certain
exceptions, and licensed distributors are allowed
to purchase only from licensed manufacturers,
with certain exceptions.The licensed distributors
and manufacturers are required to maintain
and adhere to published price lists and to offer
uniform pricing to all customers on a statewide
basis. Uniform pricing precludes a distributor
from selling spirits at a discount to individual
retailers if the same price is not available to other
retailers, and similarly precludes a manufacturer
from making discounted sales to individual
wholesalers.
Initiative Measure 1100
The Effect of the Proposed Measure, if Approved
If approved, Initiative 1100 would directthe Liquor
Control Board to close all state liquor stores,
to terminate contracts with the private contract
liquor stores, and to shut down the state's spirits
distribution operation. It would allow licensed
.private parties to sell spirits as retailers or
distributors, and it would terminate the state's
authority to sell spirits.This'would eliminate
the net proceeds from'the Board's markup on
sales of spirits at state liquor stores and contract
liquor stores, which are distributed to the state,
cities, and counties. Initiative 1100 would retain
existing taxes on the sales of spirits, with minor
modifications.
Initiative Measure 1100 would change the Liquor
Control Board's powers. It would eliminate
the Board's authority to manage liquor stores,
distribute spirits, set spirit prices, and require
the Board to close state stores by December
31, 2011.The measure -would limit the Board's
rulemaking powers to regulation of licensing
matters, taxation, and the prevention of abusive
consumption and underage drinking.The Board's
authority to regulate the kind, character, and <.
location of advertising of liquor would be subject
to new limitations.
Initiative 1100 would authorize the Board to
license private entities to sell spirits at retail, to
distribute spirits to retailers, and to manufacture
or import spirits in Washington. With exceptions,
license holders would pay annual licensing fees.
The licensing fees would be used for the costs of
administration, for enforcement of licensing laws,
and to reduce abusive consumption of alcohol
and underage drinking.
Under Initiative 1100, a "general liquor retailer's
license" would allow the license holder to sell
spirits,beer, and wirte at retail.This retailing
license would be available to any person who
applies for the license, meet's requirements, and
pays the necessary licensing fee. In addition, any
grocery store or specialty store with a beer and/or
wine license in good standing could pay a fee and
obtain a general liquor retailer's license, which
would allow sales of spirits. All of the stores
that formerly sold spirits under a contract with
the state could obtain a general liquor retailer's
license without paying a fee.
A "general liquor distributor's license" would
allow the license holder to distribute beer, wine,
25
and spirits obtained from authorized sources,'
such as licensed manufacturers and importers.
Current holders of a beer or wine distributor
license could obtain a general liquor distributor's
license allowing distribution of spirits by paying a
licensing fee. A person could also obtain a spirits
distributor license to distribute only spirits. A
licensed distillery or manufacturer could act as a
distributor and retailer of its own products.
Under Initiative 1100, spirits could be produced
under a distillery license or manufacturer's
license, subject to regulation by the Board. A
license for spirits importers would allow the
import and export of spirits, subject to regulation
by.the Board. Other licenses or certificates of
approval would allow a distiller or manufacturer
of spirits outside the state to sell and ship spirits
into the state.
Initiative 1100 also changes the laws that regulate
the importation, distribution, delivery, and retail
sales' of beer and wine. Initiative Measure 1100
would eliminate the existing three-tier regulatory
system for beer and wine that, in general,
requires licensed manufacturers to sell only to
licensed distributors, and licensed distributors
to sell only to licensed retailers. It would repeal
the uniform pricing requirement that requires
each manufacturer to offer beer or wine at a
uniform ,price to all distributors and requires each
distributor to offer beer and wine at a uniform
price to all retailers.
Fiscal Impact Statement
Written by the Office of Financial Management
Fiscal Impact
Fiscal impact cannot be, precisely estimated
because the private market will determine
spirits bottle cost and markup. Using a range of
assumptions, total state revenues decrease an
estimated $76 million — $85 million and total local
revenues decrease an estimated $180 million
— $192 million, both over five fiscal years. One-
time net state revenue gain of $27.8 million is
estimated from sale of the state liquor distribution
center. One-time state costs are estimated
at $38.6 million, Ongoing state costs for tax
collection are estimated at $426,000.
General Assmptions
The initiative uses the term "spirits" to describe
26
Initiative Measure 1100
alcoholic beverages that are distilled instead
of fermented. For purposes of the fiscal impact
statement, the term "liquor" is used for "spirits"
to maintain consistent terminology. Beer and
wine are not spirits or liquor.
Estimates are described using the state's fiscal
year (FY) of July 1 through June 30.
A new liquor distributor license is available
January 1, 2011, and a new liquor retail license
is available June 1, 2011; licensees can begin
making sales of liquor on these dates.There is
no limit on the number of licenses that can be
issued.
By June 15, 2011, the state will no longer operate
the state liquor distribution center or state liquor
stores.
Estimates assume 3,357 licensed liquor retailers,
based on the January 2010 State Government
Performance Review by the Washington State
Auditor (State Auditor review). Estimates assume
177 licensed liquor distributors based on the
number of current Washington State Liquor
Control Board (LCB) licensed beer and wine
distributors.
Estimates of impacts are measured against the
June 2010 LCB revenue forecast (forecast).
Retail liquor liter sales are estimated to grow
5 percent from increased access to Iiquor.This
assumption is based on an academic study and
growth experienced in Alberta, Canada, after
converting from state liquor stores to private
liquor stores. Additional growth in liquor liter
sales is estimated using the forecast price
elasticity assumption of 0.49 percent. Price
elasticity is a method used to calculate the change
in consumption of a good when price increases
or decreases. For every 1 percent increase/
decrease in price, liquor liter sales increase/
decrease 0.49 percent. Growth from increased
access and price elasticity is in addition to normal
3 percent growth in liquor liter sales assumed in
the forecast.
State and Local Revenues
Actual fiscal impacts depend on liquor bottle cost
in the private market and the markup applied
by both private liquor distributors and retailers.
Therefore, there is a wide range of potential
fiscal impacts. Using the LCB forecast's average
bottle price for a liter of liquor (before taxes and
markup) and a range of total private distributor/
retailer markup (at 25 percent, 39.2 percent and
45 percent), a range of potential state and local
revenue impacts is estimated.
The range of markup was selected from the
following sources:
25 percent is based on U.S. Internal Revenue
Service data (sales revenue minus cost of
goods) of retail food, beverage and liquor stores
throughout the United States.
39.2 percent is forecasted state markup beginning
July 1, 2011.
45 percent is the total liquor markup contained
in the State Auditor review and is based on
information from the Distilled Spirits Council of
the United States.
Over five fiscal years, total state revenues are
estimated to decrease in the range of $76 million
to $85 million, as shown on page 29, Figure 3.1.
Under current law, counties and cities receive
a share of state liquor board profits and state
liquor excise tax collections. Therefore, counties
and cities will also experience revenue decreases
estimated in the range of $180 million to $192
million over five fiscal years, as shown on page
29, Figure 3.2.
The range ofTotal State Revenues and Total Local
Revenues is the sum of revenue gains, revenue
losses or no revenue impact from the following
assumptions:
The initiative sets a $2,000 annual liquor
distributor license fee and a $1,000 annual liquor
retailer license fee -The number of licenses is
assumed to be constant for each fiscal year.
Liquor distributor licensees are assumed to
be subject to the wholesaling business and
occupation (B&O) tax. Liquor retailer licensees
are assumed be subject to the retailing B&O tax.
Liquor liter taxes and liquor sales taxes are not
amended by the initiative. However, a 10 percent
tax on the selling price of liquor to restaurant
licensees and an additional 1.4 percent tax on
the same sales are effectively repealed with the
closure of the state's liquor distribution center
and state liquor stores.The initiative includes a 10
percent tax on the same sales through licensed
liquor distributors and retailers, and is assumed
to replace a portion of these taxes.
Except for the loss of sales in state liquor stores,
Initiative Measure 1100
estimates do not assume any change in pricing or
volume of sales of beer and wine.
State liquor stores sell Washington State Lottery
products to the public.The estimate assumes
25 percent of these sales will be lost and
remaining sales will occur in other outlets selling
Washington State Lottery products.
Estimates of sales by current restaurant licensees
who sell liquor at retail are limited to changes
from price elasticity and the loss of the state's 15
percent quantity price discount to these licensees.
Estimates do not assume any change in sales by
liquor stores operated on military bases. Such
sales are assumed not to be subject to liquor liter
taxes, liquor sales taxes or B&O tax.
Estimates do not assume any change in sales by
liquor stores operated by tribes. Such sales are
assumed to be subject to liquor liter taxes and
liquor sales taxes based on current agreements
between tribes and LCB, but are not subject to
B&O tax.
No additional change is assumed for tax
avoidance/non-compliance by consumers
or migration of sales in and out of state by
consumers.These items are assumed in the
forecast price elasticity assumption.
Revenue from the state markup used to pay for
the state liquor distribution center and state
liquor store costs are netted to zero.The initiative
eliminates both the revenue (markup) and the
costs (state liquor distribution center and state
liquor stores), which results in no additional
revenue to the state.
Total amounts include other decreased
distributions from the Liquor Revolving Fund.
Approximately 38 cities and towns impose a local
B&O tax. Because it is not known where liquor
distributor and liquor retailer licensees will locate,
the amount of revenue generated from local
B&O tax is indeterminate and not included in the
estimate.
The sale of the state liquor distribution center is
estimated to generate a potential net $27.8 million
in revenue. Because sale date cannot be precisely
determined, this revenue is stated separately and
excluded from theTotal State Revenue estimates
above.The value of the state liquor distribution
center is estimated to be $20.8 million, based
on King County Assessor's Office 2010 assessed
value of the property.The sale of the equipment
27
in the state liquor distribution center is estimated
to be $8 million, based on the Washington State
Auditor review, which assumed the sale of $16
million in assets would return about $8 million.
Costs to sell the state liquor distribution center
are estimated to total $1 million at the time of
sale.
State and Local Expenditures
Total state revenues will be deposited into two
state accounts: the State General Fund and the
State Opportunity Pathways Account. Below
are tables that show the estimated net revenue
loss to each account by fiscal year. Revenue to
the State Opportunity Pathways Account is not
dependent on the total private liquor distributor/
retailer markup, and,therefore, the estimated
revenue loss to this account will not vary.
In addition to revenue from liquor board profits
and liquor excise taxes, revenue from beer,
wine and other business enterprise activities
are deposited into the Liquor Revolving Fund. A
portion of revenues in the Liquor Revolving Fund
in excess of LCB expenses are deposited into .
the State General Fund according to a statutory
formula.The impact to the State General Fund
shown in the table below exceedsTotal State
Revenues because distributions that would
otherwise be deposited into the State General
Fund are assumed to remain in the Liquor
Revolving Fund for LCB expenses.The amount
is estimated at $10 million for each fiscal year
beginning in FY 2012. State General Fund revenue
can be used for any governmental purpose, and
therefore, the impact of decreased revenue on
state expenditures will be determined by the
Legislature. (See page 29, Figure 3.3.)
Washington State Lottery proceeds in excess
of expenses are deposited into the State
Opportunity Pathways Account to support
programs such as State Need Grant, State
Work Study awards, Washington Scholars and
Washington Award for Vocational Excellence.
Funds from the account may also be used to
support early learning programs. Over five fiscal
years, it is estimated that funds to this account
will decrease $1,327,000. (See page 30, Figure
3.4. )
The initiative requires liquor license revenue to
be used only for purposes of the administration
and enforcement of liquor licenses and reducing
underage or abusive consumption. Therefore, an
28 Initiative Measure 1100 Initiative Measure 1100
estimated $3.7 million each fiscal year is assumed
to be spent on LCB liquor license administration
and enforcement activities.
Like the State General Fund, counties and cities
receive a share of revenue from the Liquor
Revolving Fund.Therefore, in addition to
decreased liquor profits and liquor excise taxes,
other reduced distributions'from the Liquor -
Revolving Fund affect counties and cities.The
amount is estimated at $10 million for each fiscal
year beginning in FY 2012. RCW 70.96A.087
requires each county and city to spend 2 percent
of its share'of.state liquor board profits and state
liquor excise taxes on alcohol and chemical
dependency services, and these expenditures will
decrease.The remaining revenue can be used
for any allowable local government purpose.
Therefore, the impact of decreased revenue on
local government expenditures will be determined
at the local level. (See page 30, Figure 3.5.)
State and Local Cost Estimate Assumptions
This fiscal impact statement does not estimate
state costs or state savings due to social impacts
from approval of the initiative.
One -Time Costs
Assuming a closure date of June 15, 2011,
LCB will incur one-time state costs associated
with managing the cl,osute of the state liquor
distribution center and state liquor stores.There
will be additional one-time costs for issuing new
Iicenses.These state costs are estimated to total
$30 million during FYs 2011 and 2012: _
Unemployment, sick leave and vacation buyout
costs for state employees estimated at $11.8
million.
Information technology changes and staff to issue
new licenses estimated at $4.7 million.
Staffing costs to coordinate the sale of existing
inventory, termination of contract store leases,
and to surplus store fixtures estimated at $10.2
million.
Final audits of each state and contract liquor store
estimated at $1.9 million.
Project management,and additional human
resource staff estimated at $1.4 million.
The Washington State Department of Revenue will
assume administration of the liquor excise tax
collection from 3,534 licensed liquor distributors
and retailers. Costs include additional staff,
information technology changes, rule making
and policy activities, taxpayer mailings and
workshops, supplies and materials.Total one-time
state costs are estimated to total $313,000 during
FYs 2011 and 2012.
There is $8.32 million in debt service costs for
a Certificate of Participation bond for the state
liquor distribution center that is scheduled to be
paid by December 1, 2013.Thi,s one-time state
cost is assumed in FY 2012.
Ongoing Costs
The LCB costs at current levels for the licensing,
enforcement and administration for all entities
licensed by LCB are assumed to be paid from
other revenue sources deposited into the Liquor
Revolving Fund. No state costs from increased
enforcement activities are assumed in the
estimate.
State costs associated with the state liquor
distribution center and state liquor stores
operations are not assumed as savings because
the revenue source (state markup) used to pay
these costs is eliminated by the initiative.These
costs are netted out of the revenue impacts.
The Washington State Department of Revenue
will have ongoing costs related to liquor excise
tax collection duties that are estimated to
total $426,000 for FYs 2013-2015. No costs or
savings for tax collection are assumed for local
governments.
Figure 3.1 Total State Revenues
Fiscal Year
2011
2012
2013
2014
2015
TOTAL
State
Revenue -
25%
($2,633,000)
($201731,000)
($16,410,000)
($20,350,000)
($24,481,000)
($84,605,000)
Markup
State
Revenue-
($2,231,000)
($17,264,000)
($15,669,000)
($19,458,000)
($23,427,000)
($78,049,000)
39.2%
Markup
State
Revenue-
45%
($2,067,000)
($15,983,000)
($15,538,000)
($19,274,000)
($23,187,000)
($76,049,000)
Markup
Figure 3.2Total Local Revenues
Fiscal Year
2011
2012
2013
2014
2015
TOTAL
Local _
Revenue -
25%
($6,319,000)
($41,361,000)
($43,675,000)
($48,118,000)
($52,774,000)
($192,247,000)
Markup
Local
Revenue-
39.2%
($6,183,000)
($39,041,000)
($41,576,000)
($45,914,000)
($50,458,000)
($183,172,000)
Markup
Local-
Revenue-
45% '
($6,127,000)
($38;139,000)
($40,786,000)
($45,084,000)
($49,586,000)
($179,722,000)
Markup
Figure 3.3 State General Fund Impact
FiscalYear
2011,
2012
2013
2014
2015
TOTAL
State
General
Fund - 25%
($2,620,000)
($30,410,000)
($26,089,000)
($'30,019,000)
($34,140,000)
($123,278,000)
Markup
State
!
General
Fund -
($2,218,000)
($26,943,000)
($25,348,000)
($29,127,000)
($33,086,000)
,($116,722,0100)
39.2%
Markup
State
General
Fund - 45%
($2,054,000)
($25,662,000)
($25,217,000)
($28,943,000)
($32,846,000)
($114,722,000)
Markup
Initiative Measure 1100
Figure 3.4 State Opportunity Pathways Account Impact
Fiscal Year ! 2011 2012 2013 2014 2015 TOTAL
State
Opportunity ($13,000) ($321,000) ($321,000) ($331,000) ($341,000) ($1,327,000)
Pathways
Account
Figure 3.5 Total Local Impact 7
Fiscal Year
2011
2012
2013
2014
2015
TOTAL
Local
Revenue—
25%
($6,319,000)
($41,361,000)
($43,675,000)
($48,118,000)
($52,774,000)
($192,247,000)
Markup
Local
Revenue—
39.2%
($6,183,000)
($39,041,000)
($41,576,000)
($45,914,000)
($50,458,000)
($183,172,000)
Markup
Local
Revenue—
45%
($6,127,000)
($38,139,000)
($40,786,000)
($45,084,000)
($49,586,000)
($179,722,000)
Markup
Initiative Measure 1100
Argument For Initiative Measure 1100
1-1100: The best way to end the state liquor monopoly
As part of a modernization of law concerning beer, wine
and liquor, 1-1100 ends the state's monopoly on liquor
sales, in the best interests of consumers. It directs the
Liquor Board to concentrate on enforcement of liquor
laws, such as prohibiting underage drinking, rather than
devote its time and financial resources to marketing
distilled spirits.The state has no business promoting and
profiting from the sale of liquor.
1-1100 stops the state's 51.9 percent mark-up
Washington has the highest liquor taxes in the nation.
In addition to high taxes, the state also charges a profit
margin of 51.9 percent on each liter of alcohol it sells.
1-1100 will end the monopoly profits that make ours the
most expensive liquor in the country. 1-1100 would allow
retailers to purchase directly from manufacturers rather
than accepting additional costs of a middleman.
1-1100 creates private sector jobs
Closing state liquor stores creates hundreds of new
private sector jobs.
1-1100 improves competition
Old laws protect distributors from competition and stifle
innovation. 1100 ends Prohibition era laws, improving
competition for consumers.
Ending state liquor sales and making enforcement of
liquor laws the primary responsibility of the Liquor
Control Board is the best way to protect our kids and
ensure fair competition. Please vote yes on 1-1100.
Rebuttal of Argument Against
Opposition is really about money, not public safety. 1-1100
closes state liquor stores and returns state's focus where
it belongs: enforcement of liquor laws. 1-1100 provides
choice and convenience to consumers and grows private
sector jobs. Taxes remain but price gouging ends. Local
zoning controls where stores are located. California has
private liquor sales and fewer alcohol -related driving
deaths per capita than Washington.The facts are clear;
wild opposition claims are baseless. 1-1100 makes sense.
Argument Prepared by
Jim Sinegal, CEO, Costco Wholesale Corporation;
Anthony Anton, President/CEO of 5000 Member
Washington Restaurant Association; Paul Beveridge,
President, Family Wineries of Washington, Owner,
Wild ridge Winery.
Contact: (206) 381-5396; www.YesTo1100.com
31
Argument Against Initiative Measure 1100
Initiative 1100 completely deregulates sales and
enforcement of hard liquor, beer and wine, threatening
public safety and costing taxpayers millions.
More Hard Liquor Consumption, More Problems
Under this scheme hard liquor outlets will explode from
315 to 3,300, three times more per person than California.
More than 2,000 convenience stores, neighborhood
mini -marts, and gas stations — many near schools and
in high crime areas — will sell liquor until 2 am. More
consumption means more drunk driving, underage
drinking and crime.
1100 Goes Too Far
1-1100 threatens public safety, wiping out alcohol
regulation, including enforcement, making,Washington
the most deregulated state in the country. Washington
currently ranks #1 in keeping hard liquor out of the hands
of minors, but private outlets like mini -marts are 400%
more likely to sell liquor to minors, according to Liquor
Control Board data.
1100 Costs Taxpayers -
State sales generate over $350 million annually, funding
for local schools, health care, police, firefighters, and
alcohol and drug abuse prevention. 1100 will wipe out
much of that revenue, meaning fewer services, higher
taxes, or both. Given our budget crisis now isn't the time
to lose these resources.
And 1100 makes it harder for Washington's small
businesses to compete. Big out-of-state corporations will
be given an unfair competitive advantage over our local
craft breweries and wineries — costing us jobs when we
can least afford it.
The Washington State Firefighters, Washington
Association of Churches, law enforcement leaders and
many others agree: Vote no on 1-1100.
Rebuttal of Argument For
1100 creates an explosion of liquor outlets, to 3,300.
Hard liquor will be available at convenience stores and
mini -marts, which are 400% more likely to sell to kids.
It wipes out enforcement funding, and an independent
analysis found 1100 slashes $275 million from services
like schools and public safety. Washington's craft brewers
and winemakers oppose, because it threatens their ability
to compete and create jobs. 1100: too risky, goes too far.
Vote no.
Argument Prepared by
Jim Cooper, Washington Association for Substance Abuse
and Violence Prevention; Alice Woldt, Executive Director,
Washington Association of Churches; Kelly Fox, President,
Washington State Council of Firefighters; John Lovick,
Snohomish County Sheriff; Sharon Ness, RN, Acute Care
Nurse; Craig Sousie, Emergency Medical Technician,
Renton Fire and Emergency Services.
Contact: info@ protectourcommunities.com;
www.protectourcommunities.com
32 Initiative Measure 1105 Initiative Measure 1105 3�1
Initiative Measure
1105
Proposed by initiative petition:
Initiative Measure No.
1105 concerns liquor
(beer, wine and spirits).
This measure would close all state liquor stares
and license private parties to sell or distribute
spirits. It would revise laws concerning
regulation, taxation and government revenues
from distribution and sale of spirits.
Should this measure be enacted into law?
[ ] Yes
[ I No
The Official BallotTitle and the Explanatory Statement were
written bythe Attorney General as required by Iaw.The Fiscal
Impact Statement was written by the Office of Financial
Management as required by Iaw.The Secretary of State is
not responsible for'the content of arguments or statements
(WAC 434-381-180).The complete text of Initiative Measure
1105'begins on page 110.,
Explanatory Statement
Written by the Office of the Attorney General
The Law as it Presently Exists
Currently, the state controls the sale and
distribution of spirits in Washington. The term
"spirits" refers to the alcoholic beverages
commonly called "hard liquor" (whiskies, vodka,
gin, etc.), any beverage containing distilled alcohol
(except flavored malt beverages), and wines
exceeding twenty-four percent alcohol by volume.
Spirits are sold at retail by state liquor stores and
contract liquor stores (which are businesses selling
liquor on behalf of the state through a contract
with the: state). Spirits are distributed within
Washington by the state Liquor Control Board.
The Board purchases spirits from manufacturers,
distillers, and suppliers, furnishes spirits to
state liquor stores, and sells spirits directly to
authorized purchasers, such as restaurants. Spirits
manufacturers, distillers, and suppliers may sell
spirits within the state only to the Board.
The Liquor Control Board is responsible for the
general control, management, and supervision of
all state liquor stores and contract stores, as well
as the state's spirits distribution operation.The
Board regulates the kind, character, and location of
liquor advertising.The Board is not authorized to
advertise its sales of spirits.
The Liquor Control Board sets prices for spirits'
based on wholesale cost, a markup by the Board,
and taxes.The net proceeds from the markup on
the sales of spirits are distributed to the state,
cities, and counties, according to formulas set by
state law. A variety of taxes are imposed on the
retail sale of spirits.The generally,applicable retail
sales tax does not apply to spirits: The tax revenues
from sales of spirits are distributed to the state,
cities, counties, and to fund specific state and local
programs, according to formulas established by
state law.
The Effect of the Proposed Measure, if Approved
If approved, Initiative 1105 would direct the Liquor
Control Board to close all state liquor stores and to
shut down the state's spirits distribution operation.
It would allow licensed private parties to sell
spirits as retailers or distributors, and it would
terminate the state's authority to sell spirits.This
would eliminate the net proceeds from the Board's
markup on sales of spirits at state liquor stores
and contract liquor stores, which are distributed
to the state, cities, and counties.The measure
would generate new proceeds by requiring private
spirits retailers and distributors to pay the state a
percentage of their gross sales for five years.The
measure would eliminate existing taxes on the
retail sale of spirits, and would direct the Board to
recommend to the legislature a new tax on the sale
of spirits to spirits distributors.
Initiative 1105 would change the Liquor Control
Board's powers. It would eliminate the Board's
authority to manage liquor stores, distribute
spirits, and set spirits prices. It would require the
Board to close state liquor stores by April 1, 2012,
and to make a good -faith effort to sell its liquor
store inventory and assets by that time. It would
authorize the.Board to issue licenses allowing
private parties to sell or distribute spirits, and to
regulate the sale of spirits -under those licenses.
Under Initiative 1105, a "spirits retailer license"
would allow the license holder to sell spirits at
retail in original containers, beginning November
1, 2011.The Board would establish license criteria,
making spirits retailer licenses available to
applicants who could provide the same degree
of safety and security as current state -operated
stores. The measure -encourages the Board to
make spirits retailer licenses available to existing
contract stores. Spirits retailer license holders
would pay an annual license fee.They would also
pay the state six percent of their gross annual
spirits sales during their first five years of sales, to
be deposited into the state general fund.
Under Initiative 1105, a "spirits distributor license"
would allow spirits distributors to buy spirits from
manufacturers, distillers, and suppliers, and to
sell spirits to any person holding a license to sell
spirits in Washington, beginning -October 1, 2011.
The Board would make spirits distributor licenses
available to all applicants who are appointed
by, or agents of, spirits manufacturers, distillers,
or suppliers, unless the Board determined that
issuing a license to a particular applicant would not
be in the public interest. Spirits distributors would
pay an annual license fee.They would also pay
the state one percent of their gross annual spirits
sales during their first five years of sales, to be
deposited into the state general fund.
The Board would no longer set prices for
spirits. Each licensed spirits distributor, and
each manufacturer, distiller, and i'mporter,
would be,required to maintain and adhere to its
published price list and to offer uniform pricing
to all customers on a statewide basis. Price
discrimination would be prohibited. Quantity
discounts on spirits would be allowed.
Initiative 1105 would 'establish a three-tier system
for the spirits industry.The three-tier system would
separate manufacturing, distributing, and retailing
of spirits, and regulate the financial relationships
and business transactions -among entities in these
tiers. Under the three-tier system, licensed spirits
retailers would be allowed to purchase spirits
only from duly -licensed spirits distributors, with
certain limited exceptions. Spirits manufacturers
and distillers, and licensed spirits retailers, would
not be permitted to have any interest in a spirits
distributor license or in any entity that has a spirits
distributor license.
Initiative 1105would repeal existing taxes on the
retail sale of spirits. It would direct the Board to
recommend to the legislature a new tax that would
be paid by licensed spirits distributors on all spirits
they purchase.The measure would direct the Board
to recommend a tax rate projected to generate, in
combination with other spirits -related revenues,
at least the same .annual revenue for state and
local governments as the current state-controlled
system of spirits sales and distribution, plus at
least an additional one hundred million dollars net
over the five-year period beginning November 1,
2011.
Fiscal Impact Statement
Written by the Office of Financial Management
Fiscal Impact
Fiscal impact cannot be precisely estimated
because•the private market will determine
spirits bottle cost and markup. Using a range of
assumptions, total state revenues decrease an
estimated $486 million - $520 million and total
local revenues decrease an estimated $205 million'
- $210 million, both over five fiscal years. One-time
net state revenue gain of $27.8 million is estimated
from sale of the state liquor distribution center.
One-time state costs are estimated at $39.2 million.
General Assumptions
The initiative uses the term "spirits" to describe
alcoholic beverages that are distilled instead
of fermented. For purposes of the fiscal impact
statement, the term "liquor" is used for "spirits"
to maintain consistent terminology., Beer and wine
are not spirits or liquor.
Estimates.are described using the state's fiscal year
(FY) of July 1 through June 30.
A new liquor distributor license is available
October 1, 2011, and a new liquor retail license is
available November 1, 2011; licensees can begin
making sales of liquor on these dates.There is no .
limit on the number of licenses that can be issued.
By November 15, 2011, the state will no longer
operate the state liquor distribution center or state
liquor,stores.
Estimates assume 3,357 licensed liquor retailers,
based on the January 2010 State Government
Performance Review by the Washington State
Auditor (State Auditor review). Estimates assume
177 licensed liquor distributors based on the
34
Initiative Measure 1105
number of current Washington State Liquor Control
Board (LCB) licensed beer and wine distributors.
Estimates of impacts are measured against the
June 2010 LCB revenue forecast (forecast).
Retail liquor liter sales are estimated to grow
5 percent from increased access to Iiquor.This
assumption is based on an academic study and
growth experienced in Alberta, Canada, after
converting from state liquor stores to private
liquor stores. Additional growth in liquor liter sales
is estimated using the forecast price elasticity
assumption of 0.49 percent. Price elasticity
is a method used to calculate the change in
consumption of a good when price increases or
decreases. For every 1 percent increase/decrease
in price, liquor liter sales increase/decrease 0.49
percent. Growth from increased access and price
elasticity is in addition to normal 3 percent growth
in liquor liter sales assumed in the forecast.
State and Local Revenues
Actual fiscal impacts depend on liquor bottle
cost in the private market and the markup applied
by both private liquor distributors and retailers.
Therefore, there is a wide range of potential
fiscal impacts. Using the LCB forecast's average
bottle price for a liter of liquor (before taxes and
markup) and a range of total private distributor/
retailer markup (at 25 percent, 39.2 percent and
45 percent), a range of potential state and local
revenue impacts is estimated.
The range of markup was selected from the
following sources:
25 percent is based on U.S. Internal Revenue
Service data (sales revenue minus cost of
goods) of retail food, beverage and liquor stores
throughout the United States.
39.2 percent is forecasted state markup beginning
July 1, 2011.
45 percent is the total liquor markup contained
in the State Auditor review and is based on
information from the, Distilled Spirits Council of the
United States.
State Revenue
Over five fiscal years, total state revenues are
estimated to decrease in the range of $486 million
to $520 million. (See page 37, Figure 4.1.)
Local Revenue
Under current law, counties and cities receive a
share of state liquor board profits, state liquor
excise tax collections.The initiative eliminates
these revenue sources on April 1, 2012. Beginning
April 1, 2012, retail sales tax would apply to sales
of liquor. Many local governments are authorized
to impose a local sales tax. Local sales tax will
offset some of the revenue lost to counties and
cities from the elimination of LCB profits and state
liquor excise tax sharing. Other local governments
authorized to impose a local sales tax, such as
transit districts and public facilities districts, will
gain new revenue. Figure 4.2 on page 37 shows
the net revenue impact to local governments
statewide.
Figures 4.3 and 4.4 on page 37 show the impacts
by revenue source. Because it is not known
where liquor distributor and retailer licensees
will locate, the amount of revenue generated
from local sales tax cannot be determined by
local jurisdiction. Local revenues are a statewide
estimate based on an assumption of a 2.392
percent statewide average local sales tax rate
with county sales tax representing 33 percent of
the rate, cities representing 34 percent of the rate
and other jurisdictions authorized to impose a
sales tax representing 33 percent of the rate. Sales
tax revenue is dependent on volume of liquor
liter sa I es. Th e refo re, the revenue impact to each
local jurisdiction will vary depending on the total
markup applied by both liquor distributors and
retailers.
Additional State and Local Revenue Assumptions
The range ofTotal State Revenues andTotal Local
Revenues is the sum of revenue gains, revenue
losses or no revenue impact from the following
assumptions:
The initiative provides that LCB must set
a reasonable annual license fee for liquor
distributors and liquor retailers. For purposes of
this fiscal impact statement, the fee is assumed
to be $4,000 for a liquor distributor license and
$2,000 for a liquor retailer Iicense.The number of
licenses is assumed to be constant for each fiscal
year.
Liquor distributor licensees are assumed to be subject
to the wholesaling business and occupation (B&O)
tax. Liquor retailer licensees are assumed to be
subject to the retailing B&O tax.
Liquor liter taxes and liquor sales taxes are
repealed by the initiative on April 1, 2012. It is
assumed that liquor retailer licensees will collect
and remit liquor liter taxes and liquor sales tax until
March 31, 2012. Beginning April 1, 2012, liquor sales
Initiative Measure 1105
will be subject to state and local retail sales tax.
Each liquor distributor licensee must agree to
pay, for deposit into the State General Fund, an
amount equivalent to 1 percent of the licensee's
gross annual liquor sales for a five-year period
commencing on the date of the licensee's first sale
of liquor. Likewise, each liquor retailer licensee
must agree to pay, for deposit into the State
General Fund, an amount equivalent to 6 percent
of the licensee's gross annual liquor sales for a
five-year period commencing on the date of the
licensee's first sale of liquor.
Except for the loss of sales in state liquor stores,
estimates do not assume any change in pricing or
volume of sales of beer and wine.
State liquor stores sell Washington State Lottery
products to the public.The estimate assumes 25
percent of these sales will be lost and remaining
sales will occur in other outlets selling Washington
State Lottery products.
Estimates of sales by current restaurant licensees
who sell liquor at retail are limited to changes from
price elasticity and the loss of the state's 15 percent
quantity price discount to these licensees.
Estimates do not assume any change in sales by
liquor stores operated on military bases. Such
sales are assumed not to he subject to liquor liter
taxes, liquor sales taxes or B&O tax.
Estimates of sales by liquor stores operated by
tribes are limited to changes from price elasticity.
Such sales are assumed to be subject to liquor
liter taxes and liquor sales taxes based on current
agreements between tribes and LCB. Sales to non -
tribal members are subject to retail sales tax. All
sales are not subject to B&O tax.
No additional change is assumed for tax avoidance/
non-compliance by consumers or migration of
sales in and out of state by consumers:These
items are assumed in the forecast price elasticity
assumption.
Revenue from the state markup used to pay for the
state liquor distribution center and state liquor store
costs are netted to zero.The initiative eliminates
both the revenue (markup) and the costs (state
liquor distribution center and state liquor stores),
which results in no additional revenue to the state.
Totals amount includes other decreased
distributions from the Liquor Revolving Fund.
Approximately 38 cities and towns impose a local
B&O tax. Because it is not known where liquor,
35
distributor and liquor retailer licensees will locate,
the amount of revenue generated from local
B&O tax is indeterminate and not included in the
estimate.
The sale of the state liquor distribution center is
estimated to generate a potential net $27.8 million
in revenue. Because sale date cannot be precisely
determined, this revenue is stated separately and
excluded from theTotal State Revenue estimates
above.The value of the state liquor distribution
center is estimated to be $20.8 million, based on
King County Assessor's Office 2010 assessed value
of the property.The sale of the equipment in the
state liquor distribution center is estimated to be
$8 million, based on the Washington State Auditor
report, which assumed the sale of $16 million in
assets would return about $8 million. Costs to sell
the state liquor distribution center are estimated to
total $1 million at the time of sale.
State and Local Expenditures
Total state revenues will be deposited into three
state accounts: the State General Fund, the
State Opportunity Pathways Account and the
Performance Audits of Government Account.
The revenue gain to the Performance Audits of
Government Account is expected to be minimal,
and therefore is not included in the estimates.
The following tables show the estimated net
revenue impact to the State General Fund and the
State Opportunity Pathways Account. Revenue to
the State Opportunity Pathways Account is not
dependent on the total private liquor distributor/
retailer markup, and therefore the estimated
revenue loss to this account will not vary.
In addition to revenue from liquor board profits
and liquor excise taxes, revenue from beer,
wine and other business enterprise activities
are deposited into the Liquor Revolving Fund. A
portion of revenues in the Liquor Revolving Fund
in excess of LCB expenses are deposited into
the State General Fund according to a statutory
formula.The impact to the State General Fund
shown in the table below exceedsTotal State
Revenues because distributions that would
otherwise be deposited into the State General
Fund are assumed to remain in the Liquor
Revolving Fund for LCB expenses.The amount
is estimated at $7 million for each fiscal year
beginning in FY 2012. State General Fund revenue
can be used for any governmental purpose, and
therefore, the impact of decreased revenue on
36 Initiative Measure 1105 Initiative Measure 11D5
state expenditures will be determined by the
Legislature. (See page 38, Figure 4.5.)
The initiative requires liquor license revenue to
be used only,for purposes of the'administration
and enforcement of liquor licenses and reducing
underage or abusive consumption. Therefore, an
estimated $7.4 million each fiscal year is assumed
to be spent on LCB liquor license administration
and enforcement activities.
Washington State Lottery proceeds in excess of
expenses are deposited into the State Opportunity
Pathways Account to support programs such
as State Need, Grant, State Work Study awards,,
Washington Scholars and Washington Award for
Vocational Excellence. Funds from the account may
also be used to support early learning programs.
Over five fiscal years, it is estimated that funds to
this account will decrease $1,194,000. (See page
38, Figure 4.6.)
Like the State General Fund, counties.and cities
receive a share of revenue from the Liquor
Revolving Fund.Therefore, in addition to `decreased
liquor profits and liquor excise taxes, other reduced
distributions from the Liquor Revolving Fund affect
counties and cities.The amount is estimated at $7
million for each fiscal year beginning in FY 2012.
RCW 70.96A.087 requires each county and city to
spend 2 percent of its share of state liquor board
profits and state liquor excise taxes on alcohol
and chemical dependency services, and these
expenditures will decrease.The remaining revenue
from state liquor profits and state liquor excise
tax sharing can be used for any allowable local
government purpose. Local sales tax must be used
as allowed by state Iaw.Therefore, the impact on
local government expenditures will be determined
at the local level or by state law. (See page 38,
Figure 4.7.)
State and Local Cost Estimate Assumptions
This fiscal impact statement does not estimate
state costs or state savings due to social impacts
from approval of the initiative.
One -Time Costs
Assuming a closure date of November 15, 2011,
LCB will incur one-time state costs associated
with managing the closure of the state liquor
distribution center and state liquor stores.There
will be additional one-time costs for issuing new
licenses and revenue collection activities. These
state costs are estimated to total $30.6 million
during FYs 2012 and 2013:
Unemployment, sick leave and vacation buyout
costs are estimated at $11.8 million.
Staff and information technology changes to issue
new licenses and collect revenues estimated at
$5.3 million.
Staffing costs to coordinate the sale of existing
inventory, termination of contract store leases, and
to surplus store fixtures estimated at $10.2 million.
Final audits of each1'state and contract liquor store
estimated at $1.9 million.
Project management and additional human
resource staff estimated at $1.4 million.
The Washington State Department of Revenue
will assume administration of the liquor excise tax
collection from 3,534 licensed liquor distributors -
and retailers through April 1, 2012. Costs include
additional staff, information tech nology.changes,
rule making and policy activities, taxpayer mailings
and workshops, supplies and materials.Total state
costs are estimated at $313,000 during fiscal years
2011 and 2012.
There is $8.32 million in debt service costs for a
Certificate of Participation bond for the state liquor
distribution center that is scheduled to be paid
by December 1, 2013.This one-time state cost is
assumed in FY 2012.
Ongoing Costs
The LCB costs at current levels for the licensing,
enforcement and administration for all entities
licensed by LCB are assumed to be paid from
other revenue sources deposited into the Liquor
Revolving Fund. No state costs from increased
enforcement activities are assumed in the estimate.
State costs associated with the state liquor
distribution center and state liquor stores
operations are not assumed as savings because
the revenue source (state markup) used to pay
these costs is eliminated by the initiative. These
costs are netted out of the revenue impacts.
The Washington State Department of Revenue
will have no additional ongoing costs from the
initiative. Local governments will incur costs for
local sales tax collection.The Washington State
Department of Revenue collects sales tax for local
governments, and is allowed to deduct 1 percent
of local sales tax collections for this service for
deposit in the State General Fund.
Figure 4.1 Total State Revenues -
Fiscal Year
2011
2012
2013
2014
2015
TOTAL
State
Revenue-
25%
($0)
($25,076,000)
($156,695,000) ($164,793,000)
($173,204,000)
($519,768,000)
Markup
State
Revenue-
39.2%
($0)
($21,257,000)
($150,120,000)
($157,886,000)
($165,947,000)
($495,210,000)
Markup
State
Revenue -
45%
($0)
($19,731,000)
($147,640,000)
($155,281,000)
($163,210,000)
($485,862,000)
Markup
I
Figure 4.2Total Local Revenues
-�
2012 2013 2014 2015 TOTAL
Fiscal Year
2011
Local
Rev nue -
25
($0)
($29,227,000)
($55,095,000)
($60,257,000)
($65,667,000)
($210,246,000)
Markup
Local
Revenue-
($0)
($28,897,000)
($53,989,000)
($59,095,000)
($64,446,000)
($206,427,000)
Markup
Local
`
Revenue-
45% '
($0)
($28,765,000)
($53,571,000)
($58,656,000)
($63,985,000)
($204,977,000)
Markup
Figure 4.3 City and County Revenues from Liquor Profits, Liquor ExciseTax and other Revenue
Fiscal Year
2011
2012
2013 2014
2015
TOTAL
City/
yt
County
($0)
($32,646,000)
($70,877,000) (76,826,000)
($83,063,000)
($263,412,000)
Revenues
Figure 4.4 Local Retail SalesTax Revenues
Fiscal Year
2011
2012
2013
2014
2015
-TOTAL
Local
Revenue-
25%
($0)
$3,419,000
$15,782,000
$16,569,000
$17,396,000
$53,166,000
Markup
Local
Revenue-
39.2%
($0)
$3,749,000
$16,888,000
$17,731,000
18,617,000
$56,985,000
Markup I
Local
Revenue-
45%
($0)
$3,881,000
$17,305,000
$18,170,000
$19,078,000
$58,434,000
Markup
wno
Initiative Measure 1105
Figure 4.5 State General Fund Impact
Fiscal
Year
2011.
2012
2013
2014 2015
TOTAL
_
State
General
Fund —
($0)
($31,875,000)
($163,373,000)
($171,462,000)
($179,863,000)
($546,573,000)
25%
Markup
State
General
Fund —
($0)
($28,056,000)
($156,799,000)
($164,555;000)
($172,606,000) ($522,016,000)
39.2%
Markup,
_
State
General
Fund —
($0)
($26,530,000)
($154,319,000)
($161,950,000)
($169,869,000) ($512,668,000)
45%
Markup
Figure 4.6 State opportunity Pathways Account Impact
Fiscal Year 1 2011 f 2012 1 2013 2014 1 2015 I TOTAL
State
Opportunity ($0)
Pathways
Account
($201,000) ($321,000) ($331,000) ($341,000) ($1,194,000)
Figure 4.7Total
Local
Impact
Fiscal
Year
2011
2012
2013 2014
2015
TOTAL
Local
Revenue—
25%
($0)
($29,227,000)
($55,095,000) ($60,257,000)
($65,667,000)
($210,246,000)
Markup
Local
,Revenue—
39.2%
($0)
($28,897,000)
($53,989,000)
($59,095,000)
($64,446,000)
($206,427,000)
Markup
Local
Revenue—
45%
($0)
($28,765,000) ($53,571,000) ($58,656,000)
($63,985,000) ($204,977,000)
Markup
Initiative Measure 1105 9.�
Argument For Initiative Measure 1105 Argument Against Initiative Measure 1105
Get state government out of the liquor business. Vote
yes on 1-1105 to close state liquor stores and let qualified
retailers sell spirits safely and responsibly.
Support Local Firefighters and Law Enforcement
Yes on 1-1105 creates more revenue for local firefighters
and police protection in cities and counties across the
state. Local jurisdictions rely on revenue from liquor
sales for services like public safety. 1-1105 will "generate
at least the same annual revenue for the state and local
jurisdictions ... as well as an additional $100 million."
1-1105 is Responsible
1-1105 responsibly privatizes liquor sales the way 32 other
states currently allow the private sector to operate liquor
sales. 1-1105 will ensure all taxes are paid and there is a
paper trail documenting all liquor sales in the state. Under
1-1105, applicants for retail licenses must be qualified to
sell spirits and prove they meet certain safety and security
standards.
Protects Against Underage Drinking
A yes vote on i-1105 will allow the Liquor Control
Board to focus on preventing underage drinking, over
consumption and making sure there isn't an explosion of
liquor stores. Any license holder caught selling to a minor
would immediately lose their license.
Better for Consumers and Jobs
1-1105 offers consumers convenience, more variety and
more affordable prices while keeping public health and
safety standards intact. 1-1105 provides for the training
and placement of displaced liquor store employees into
new jobs in the private sector.
Rebuttal of Argument Against
Initiative 1105 is clear. It will "generate at least the same
annual revenue for the state and local jurisdictions as
under the current state control system, as well as at least
an additional one hundred million dollars'
That's more money for local firefighters, police officers,
and teachers in our neighborhoods.
Vote yes on 1-1105 to responsibly get the state out of the
liquor business and let qualified businesses in the private
sector sell spirits safely.
Argument Prepared by
Jack Rabourn, Former Washington State Liquor Control
Board Member; Al O'Brien, State Representative, former
Criminal Justice Committee Chairman; Ken ❑plinger,
Bellingham/Whatcom Chamber of Commerce &
Industry President; Tom Pierson, Federal Way Chamber
of Commerce CEO; Po Chang, President of Summa
Foods; Charlie James, African American Business and
Employment Activist and Columnist.
Contact: (877)YES-1105; info@ liquorreform.org;
www.liquorreform.org
Initiative 1105 will increase taxes and decrease public
safety.
Mare Hard Liquor Consumption, More Problems
I-1105 allows hard liquor stores to explode from 315
to more than 3,300: three times more per person
than California. More than 2,000 convenience stores,
neighborhood mini -marts, and gas stations — near
schools, churches, and in high crime areas — will sell hard
liquor, until 2 am. More consumption means more drunk
driving,, more underage drinking, and more crime. Using
California's rate of binge drinking as an example we can
expect 40,000 more irresponsible drinkers in our state.
1105 Wipes Out All Liquor Taxes
1105 repeals all state liquor taxes and directs the
legislature make up the difference with new taxes. That
means more taxes on the middle class. We can't trust the
Olympia politicians to get this right.
The current system generates $350 million annually
to pay for schools, health care,, police, firefighters, and
alcohol prevention. 1105 will eliminate all that revenue.
The state has a huge budget shortfall — now is not the
time to make it worse.
1105 Puts Public Safety at Risk
Washington currently ranks #1 nationally in keeping
hard liquor away From minors, but private outlets like
mini -marts are 400% more likely to sell alcohol to minors
according to Liquor Control�Board data. Let's not make it
easier for kids and drunk drivers to get liquor.
The Washington State Council of Firefighters, Washington
Association of Churches, law enforcement leaders and
community leaders agree: Vote no on 1-1105.
Rebuttal of Argument For
The big corporations funding this initiative have gone
too far. 1105 harms community services, costs taxpayers
and cost jobs. It eliminates enforcement funding for
underage purchases and all liquor taxes and leaves it to
the legislature to make up the difference. An independent
analysis found that 1105 will reduce revenue by over
$700 million, slashing funding from schools and public
safety.That's why small businesses, teachers, and law
enforcement leaders say: vote no.
Argument Prepared by
Jim Cooper, Washington Association for Substance Abuse
and Violence Prevention; Al iceWoidt, Executive Director,
Washington Association of Churches; Kelly Fox, President,
Washington State Council of Firefighters; John Lovick,
Snohomish County Sheriff; Sharon Ness, RN, Acute Care
Nurse; Craig Sousie, Emergency Medical Technician,
Renton Fire and Emergency Services.
Contact: info@ protectourcommunities.com;
www.protectourcommunities.com
py.
40 *,
Initiative Measure
1107
Proposed by initiative petition:
Initiative Measure 1107
Initiative Measure
No. 1107 concerns
reversing certain 2010
amendments to state
tax laws.
This measure would end sales tax on candy;
end temporary sales tax on some bottled water;
end temporary excise taxes on carbonated
beverages; and reduce tax rates for certain food
processors.
Should this measure be enacted into law?
C ] Yes
[ ] No
The Official BallotTitle and the Explanatory Statement were
written by the Attorney General as required by law.The Fiscal
Impact Statement was written by the Office of Financial
Management as required by Iaw.The Secretary of State is
not responsible for the content of arguments or statements
(WAC 434-381-180).The complete text of Initiative Measure
1107 begins on page 119.
Explanatory Statement
Written by the Office'of the Attorney General
The Law as it, Presently Exists
Taxes imposed by the state of Washington
include a retail sales tax, a temporary excise
tax on the sale of some carbonated beverages,
and a business and occupation (B&O) tax on
the privilege of engaging in various business
activities in the state. Each of these taxes
produces revenue that is deposited into -the state
general fund for the general support of programs
of state government.
The sales tax is imposed on retail sales in the
state. Sales of some products are exempt from
the sales tax, including the sale of food and food
ingredients. Until 2010, food and food ingredients
included candy and bottled water. Consequently,
candy and bottled water were exempt from the
sales tax.
In 2010, the legislature amended the law to
remove candy from the sales tax exemption for
food and food ingredients. Candy became subject
to the sales tax effective June 1,.2010. Candy
is defined as a preparation of sugar, honey, or
other sweeteners in combination with chocolate,
fruits, nuts, or other ingredients or flavorings in
the form of.bars, drops, or pieces. Candy does
not include products that contain flour or require
refrigeration. '
In 2010, the legislature amended the law
to remove bottled water from the sales tax
exemption for food and food ingredients. Bottled
water became subject to the sales tax effective
June 1, 201.0, and ending July 1, 2013: In 2010, the
legislature also enacted a statutory amendment
that the sales tax would continue to apply to
bottled water after July 1, 2013, if the voters
approve Referendum 52 at the November 2010
general election: Bottled water i,s water sold
in sealed containers for human consumption.
Bottled water sold for medical purposes or to
people who do not otherwise have a readily
available source of clean water remains exempt
from sales tax.
In 2010, the legislature enacted an excise tax on
the sale of certain carbonated beverages sold
in'the state.The tax took effect July 1, 2010, and
expires on July 1, 2013.The carbonated beverages
subject to this tax are nonalcoholic beverages -
that are naturally or artificially carbonated, and
contain caffeine, extracts, fruit juice, herbs,
sweeteners, or syrup.The tax is calculated at
the rate of two cents per twelve ounces, and is
applied once, either at the -wholesale or retail
Ievel.The tax does not apply to the first ten
million dollars of carbonated beverages sold in
the state by any bottler.
The B&O tax is imposed on various business
activities in the state, such as manufacturing,
selling, or providing services.The rate of the tax
varies, depending upon the type of activity in
Initiative Measure 1107
which the business engages. As a general rule,
businesses engaged in manufacturing pay a tax
at the,rate of 0.484 percent of the value of the
products they manufacture. Lower rates apply to
some manufacturing activities.
In 2010, the legislature amended statutes
governing the B&O tax on manufacturing meat
products. For perishable meat products, the
amendments apply a tax' -rate of 0.138 percent
of the value of the manufactured product. For
nonperishable meat., products, the amendments
apply a tax rate of 0.484 percent of the value of
the manufactured product.
In 2010, the legislature amended statutes
governing the B&O tax on manufacturing fruit
and vegetable products by canning, preserving,
freezing, processing, or dehydrating fresh fruits
or vegetables. Under the 2010 law, an exemption
from the B&O tax for manufacturing fruit and
vegetable products is limited to products that
contain only fruits, vegetables, or both (and
certain other substances such as water; sugar,
salt, seasonings, preservatives, and similar
substances).The exemption does not apply
to manufacturing other products that contain
fruits or vegetables as ingredients, which are
consequently taxed at the rate of 0.484 percent
of the value of the manufactured product.
Under the 2010 law, when the exemption from
B&O tax on manufacturing fruit and vegetable
products expires on July 1, 2012, manufacturing
fruit and vegetable products containing only
fruits, vegetables, or both (and certain other
substances such as water, sugar, salt, seasonings,
preservatives, and similar substances) will be
taxed at the rate of 0.138 percent of the value
of the manufactured product. Manufacturing of
other products that contain fruits or vegetables as
ingredients are taxed at the rate of 0.484 percent
of the value of the manufactured product.
The Effect of the Proposed Measure, if Approved
The measure would repeal the 2010 law applying
the sales tax to candy.The measure also would
repeal the 2010 law applying the sales tax to
bottled water beginning June 1, 2010, and
expiring July 1, 2013, and would repeal the
2010 law providing that, if the voters approve
Referendum Measure 52 at the November 2010
general election, the sales tax would continue to
apply to bottled water after July 1, 2013.
41
The measure would repeal the 2010 law`enacting
a temporary excise tax on carbonated beverages.
The measure would repeal the 2010 law that limits
to perishable meat products a 0.138 percent B&O
tax rate relating to manufacturing meat products.
The measure would repeal the 2010 law that limits
the B&O tax exemption relating to manufacturing
fruit and vegetable products, to manufacturing
products that contain only fruits, vegetables, or
both (and certain other substances such as water,
sugar, salt, seasonings, preservatives, and similar
substances).The measure also would repeal the
2010 law that limits a 0.138 percent B&O tax rate
on manufacturing fruit and vegetable products
applicable after the exemption expires in 2012, to
products that contain only fruits, vegetables, or
both (and certain other substances such as water,
sugar, salt, seasonings, preservatives, and similar
substances).
Fiscal Impact Statement
Written by the Office of Financial Management
Fiscal Impact
Over five fiscal years, the initiative reduces State
General Fund 'revenues by an estimated $352
million and state performance audit revenue
by an estimated $359,000. Revenue for local
jurisdictions authorized to impose a sales tax
is reduced by $83 million over five fiscal years.
Taxpayer noncompliance and confusion could
result in additional state and local government
revenue decreases up to $8.7 million and $1.8
million, respectively, in fiscal year 2011. Net state
costs .to administer the tax revisions are $98,200
over five fiscal years.
General Assumptions
Estimates are based on infotmation provided
by state agencies during the 2010 legislative
session for Second Engrossed Substitute Senate
Bill 6143 (2ESSB 6143) and updated to the June
2010 Washington State Economic and Revenue .
Forecast.
Estimates are described using the state's fiscal
year (FY) 2012 (July 1, 2011, through June 30;
2012).
Estimates exclude approximately,$273,000 in
costs already incurred to implement 2ESSB 6143.
►4
Initiative Measure 1107
Initiative Measure 1107
0
State and Local Revenues Assumptions
State revenues are estimated to decrease by
$352 million over five fiscal years ,as described
below. State revenues deposited in the State
General Fund may be used for any government
purpose such as education services; social, health
and environmental services; and other general
government activities. State revenues deposited
in the State Performance Audit Account are used
by the Washington State Auditor to conduct
comprehensive performance audits required
under RCW 43.09.470.
Local revenue is estimated to decrease by $83
million over'five fiscal years for local jurisdictions
that are authorized to impose a sales tax.
An estimated 373 local jurisdictions, such as
counties, cities and transit districts, are authorized
to impose a sales tax. Local sales tax revenue
must be spent as allowed by state law.
State and local revenue estimates are based on
the following data sources. and assumptions:
The initiative is effective December 2, 2010.
Price elasticity is 0.9 for candy, gum, bottled water
and carbonated beverages.
Sales tax on candy - State consumption and
sales data of candy and gum are from the
National Confectioners Association and the U.S.
Department of Commerce.
Sales tax on bottled water - State consumption
and sales data are from the 2008 Beverage Digest
Fact Book. Fiscal impact ends on June 30, 2013,
when the tax is scheduled to expire.
Excise tax on carbonated beverages - State
consumption and sales data are from the 2008
Beverage Digest Fact Book and additional
information is from industry resources. Fiscal
impact.ends on June30, 2013, when the tax is
scheduled to expire.
Food processors business and occupation (B&O)
tax - Washington State Department of Revenue
excise tax return data.
Local revenues are a statewide estimate based on
the assumption of a statewide average local tax
rate of 2.392 percent. (See page 43, Figure 5.1.)
Seepage 43, Figures 5.2 and 5.3 for total State
General Fund and local government revenue
impacts by tax type. Revenues are adjusted to
reflect the effect of price elasticity on carbonated
beverages if the excise tax is eliminated.
Carbonated beverage consumption is
assumed to increase, resulting in increased
estimated state and local government retail
sales tax, and state B&O tax collections.
Initiatives take effect 30 days after the General
Election, which is December 2, 2010. Based on
the state's experience with the repeal of the
Motor Vehicle ExciseTax, it is noted that many
taxpayers assume taxes are repealed when
election results are announced. Therefore,
approval of the initiative could increase non-
compliance with payment of tax, which would
result in further decreased revenue,to the
state and to local governments. One month
of state and local government tax receipts,
representing taxable activity from November
2, 2010, to December 2, 2010, is estimated to
be $8.7 million and $1.8 million, respectively,
assuming a 100 percent non-compliance rate.
State and Local Cost Estimate Assumptions
An estimated 207,700 businesses' are affected
by the tax revisions.The Washington State
Department of Revenue will incur one-
time costs during FY 2011 in the amount of
$204,600 to notify. businesses of the repealed
taxes. Thereafter, costs to implement the
taxes are netted against costs avoided from
repealing the taxes.This results in net savings
during FYs 2013-2015, as shown on page 43,
Figure 5.4.
Because the Washington State Department of
Revenue administers and collects local sales
tax, no costs or cost savings are assumed for
local governments.
Figure 5.1 Total State and Local Revenues -
Fiscal Year
2011 1
2012
2013
2014
2015
Total State
General Fund
($54,779,000)
F($107,825,000)
($109,743,000)
($42,676,000)
($36,943,000)
Total State
Performance
($47,000) ($100,000)
($104,000)
($56,000)
($52,000)
Audit Account
Total Local
Revenue
($10,662,000) ($23,369,000)
($24,136,000)
($12,887,000)
($11,946,000)
Figure 5.2 General Fund Revenue byTaxType- STATE
Fiscal Year
2011
2012
2013
2014
2015
SalesTax on
Candy.
($15,191,000)
($31,250,000)
($31,686,0.00)
($32,114,000)
($32,530,000)
SalesTax on
Bottled Water
($16,083,000)
($33,768,000)
($35,355,000)
($3,086,000)
$0
ExciseTax on
Carbonated
($23,064,000)
($41,449,000)
($41,200,000)
($3,413,000)
$0
Beverages
Food
Processors
($1,932,000)
($4,028,000)
($4,165,000)
($4,284,000)
($4,413,000)
B&OTax
Revenue
_
Adjustment
- Carbonated
$1,491,000
$2;676,'000
$2,663,000
$221,000
$0
Beverage Price
Elasticity
Total State
General Fund'
($54,779,000)
($107,825,000)
($109,743,000)
($42,676,000)
($36,943,000)
Revenue,lmpact
Figure 5.3 Revenue byTaxType - LOCAL
Fiscal Year
2011
1 2012
2013
2014
2015
SalesTax on
Candy
($5,579,000)
($11,476,000)
($11,636,000)
($11,793,000)
($11,946,000)
SalesTax on
Bottled Water
($5,593,000)
($12,810,000)
($13,412,000)
($1,170,000)
$0
Revenue
Adjustment
- Carbonated
$510,000
$917,000
$912,000
$76,000
$0
Beverage Price
Elasticity
Total Local
Revenue Impact
($10,662,000)
($23,369,000)
($24,136,000)
($12'1887,000)
($11,946,000)
Figure 5.4
Fiscal Year
2011
2012
2013
2014
2015
Department of
Revenue
$204,600
$10,300
($71,900)
($22,100)
($22,100)
A Initiative Measure 1107
Argument For Initiative Measure 1107 Argument Against Initiative Measure 1107
Yes on 1107 Ends the Costly, Arbitrary Taxes the Legislature
Imposed on Food and Beverages.
In the last hours of the recent special session, the
Legislature imposed new and higher taxes on thousands
of food and beverage products.
These taxes on bottled water, soda, candy and processed
foods containing meat, fruits and vegetables will cost
Washington consumers and businesses more than $300
million over the next three years.
That hurts Washington food producers, bottlers, grocers
and consumers — especially middle and lower income
families and seniors, who can least afford higher grocery
bills.
Furthermore, none of these taxes are dedicated to
anything. They all go into the general fund for the
politicians to spend however they want.
The Politicians' Tax Scheme Makes No Sense.
The Legislature imposed taxes on hundreds of candy
products, and even some health food products like
energy bars, but exempted hundreds of other candy
products.
Moreover, the politicians increased taxes on processed
food products made by local Washington food companies,
but not on similar products made by their competitors
in other states or countries.That puts locally -made food
products at a competitive disadvantage.
Vote Yes on 1107 — Stop Taxes on Groceries!
Yes on 1107 ends the politicians' costly, unfair new tax
scheme and tells them to do more to cut government
spending instead of taxing food and beverage products.
Yes on 1107 is supported by a coalition of tens of
thousands of Washington taxpayers, farmers, food .
processors and small grocery store owners.
Rebuttal of Argument Against
Arguments against 1107 are false and misleading.The
legislature imposed new taxes on thousands of grocery
items — including water, processed foods with meat, fruit
and vegetables and even some organic foods.These taxes
are not dedicated to education or anything else.They all
go to the general fund.They're all ultimately paid by you,
the consumer— not by out-of-state companies. Taxing
food and beverages is wrong. Vote yes on 1107. Stop
grocery taxes.
Argument Prepared by
Ed & Roxanne Husmann, Farmers, Ed's Apples, Sujtan;'
Marc Wallace, Grocery Store Manager, Baker's Corner,
Store, Longview; James Connelly, Owner, Lodi Water
Company, Chewelah; Tim Martin, President, Harbor
Pacific Bottling, Elma; Pierson Clair, President, Brown &
Haley, Makers of Almond Roca; Tem Jean Racy, Grocery
Store Owner, Aeneas Valley General ,Store,Tonasket.
Contact: (800) 856-6851; info@ StopGroceryTaxes.com;
www.StopGroceryTaxes.com
Reject 1107: Harms schools and kids
1107 strips $300 million that funds schools, kids' health
and other basic services by eliminating small, mostly
temporary taxes on non -essential items Like gum, soda
and candy. With communities across Washington still
reeling from the recession, 1107 would dig the hole
deeper, creating additional burdens for families and
threatening Washington's economic recovery.,
American Beverage Association Misleading Voters
Out-of-state. soda manufacturers have written and
funded 1107 to line their own pockets.The beverage
lobby is spending millions misleading voters — don't be
fooled. Contrary to their claims, there is no "food tax" in
Washington.This initiative concerns non -essential items,
not groceries;
The wrong approach in these tough times
The taxes on candy and soda were a part of a balanced
solution to the economic crisis, which included $4 in cuts
for every $1 in new revenue. Repealing them now will
mean even deeper cuts. Across the country, states are
taking the same, balanced approach as we did because it
is the responsible thing to do.
Epidemic of childhood obesity costing taxpayers
Sugar sweetened sodas and candy have zero nutritional
value and contribute to an epidemic of childhood obesity
and diabetes — with taxpayers footing the bill. It makes
sense that highly profitable soda companies pay a small
amount to help cover some of the health costs their
products create.
Don't let the Arnerican Beverage Association buy a special
tax break for themselves while harming Washington
families. Vote no on 1107.
Rebuttal of Argument For
Look behind the curtain: the national soda -lobby is
financing 1107.The American Beverage Association
is providing 99.9 percent of the funding — more than_
$10 million dollarslThey don't care about Washington
families, just their own profits. Don't let them buy this
election with their deceptive campaign.This is about non-
essentials, not groceries. A couple pennies more for a can
of soda is worth it to preserve schools and health care.
Vote no.
Argument Prepared by
Nyda Galbreath, First grade teacher, Board member,
Washington Education Association; Dr. Jeffrey Smith,
Medical Director, Community Health Care, Pierce County;
Laura Hitchcock, Executive Director, Washington State
Public Health Association; Doug Shadel, President, AARP
of Washington; Tara Lerew, Registered Nurse; Paola
Maranan, Executive Director, Children's Alliance.
Contact: info@VoteNo1107.com
Referendum Bill 52
Referendum Bill
52
Proposed to the people by the Legislature:
The legislature has
passed Engrossed
House Bill No. 2561,
concerning authorizing
and funding bonds
for energy efficiency
projects in schools.
This bill would authorize bonds to finance
construction and repair projects increasing
energy efficiency in public schools and higher
education buildings, and continue the sales tax
on bottled water otherwise expiring in 2013.
Should this bill be:
[ Approved
L l Rejected
Votes cast by the 2010 Legislature on final passage:
Senate:Yeas, 28; Nays, 18; Absent, 0; Excused, 3
House:Yeas, 59; Nays, 38; Absent, 0; Excused, 1
The Official BallotTitle and the Explanatory Statement were
written by the Attorney General as required by Iaw.The Fiscal
Impact Statement was written by the Office of Financial
Management as required by Iaw.The Secretary of State is
not responsible for that content of arguments or statements
(WAC 434-381-180).The complete text'of Referendum Bill 52
begins on page 126.
0 You are voting to Approve or Reject
the bill passed by the Legislature
Approve —you favorthe bill passed
by the Legislature.
Reject —you don't favor the bill passed
by the Legislature.
Explanatory Statement
Written by the Office of the Attorney General
The Law as it'Presently Exists
The State of Washington issues bonds as one way
of borrowing money for various public purposes.
Bonds are written agreements, under which
the state agrees to pay the borrowed money
back over a stated period of time, with interest.
One type of bond is referred to as a "general
obligation bond" which means that the state
promises to repay the bonds from its general
revenues, rather than from a dedicated source
of revenue.The state pledges its full faith and
credit toward the repayment of general obligation
bonds.The state constitution limits the amount
of money the state can borrow, except for debt
approved by the voters.
The state receives revenue in the form of taxes,
including the state sales tax.The sales tax
currently applies to most purchases of bottled
water.The law makes exceptions for bottled
water that is sold for certain medical purposes,
or to people who do not otherwise have a readily
available source of clean water. Current law also
provides that the application of the sales tax to
bottled water will expire July 1, 2013, and after
that date the sales tax will no longer apply to
purchases of bottled water.
The Effect of the Proposed Referendum, if Approved
This measure asks the voters to approve the
state's issuance of general obligation bonds to
pay for certain construction and repair projects to
improve energy efficiency in public schools and
in higher education buildings.The measure would
authorize the state to borrow $505 million by
issuing bonds to be repaid from future revenue.
The money raised by selling the bonds would
be deposited into the state treasury, and would
be used to make financial grants to public.
school districts, public universities, colleges and
community colleges, and other public agencies.
The grants would be used to pay for capital
improvements for energy, utility, and operational
cost savings.
Grants would be awarded on a competitive basis,
based on applications explaining what particular
projects applicants propose to use the money to
achieve. Grants would be awarded in competitive
M
Referendum Bill 52
Referendum Bill 52
47
rounds, with at least five percent of the money
in each round awarded to small public school
districts with fewer than one thousand students.
Each project would be'weighted; based on: (a) the
availability of nonstate money to assist in funding
the project; (b) the energy savings to be achieved
by the project; and (c) how quickly the project
could be ready to proceed.The dollar amounts
awarded for each project would be determined in
order to fund the maximum number of projects
with the greatest energy and cost benefit.
Only eight -five percent of projects for which
applications are submitted could be funded in
each round, until the last round.
General state revenues would be used to repay
the bonds. If the voters approve this measure,
then an amendment to state law would take effect
that removes the expiration date for applying the
state sales tax to purchases of bottled water.This
would have the effect of continuing the collection
of sales tax on purchases of bottled water after
July 1, 2013, when that tax would otherwise
expire.This measure states that the legislature
intends to increase state revenue in this way in
order to pay for a portion of the costs of repaying
the bonds authorized by this measure.
Fiscal Impact Statement
Written by the Office of Financial Management
Fiscal Impact
Referendum 52 authorizes the issuance of $505
million in state general obligation bonds to fund
capital improvements for energy efficiency in
buildings owned by public school districts and
public higher education institutions. Twenty -nine-
year debt service costs are estimated to total $937
million, for an average annual state cost of $32.3
million. Other state costs are estimated to be $2.2
million annually through fiscal year 2015.The
sales tax on bottled water is estimated to increase
State General Fund revenues an annual average
of $39.8 million and increase local government
revenues an annual average of $14.9 million.
General Assumptions
Estimates are based on information provided
by state agencies during the 2010 legislative
session for Engrossed House Sill 2561 (EHB 2561)
and updated to the June 2010 Washington State
Economic and Revenue Forecast.
Removing the expiration of sales tax on
bottled water is contingent on approval of the
referendum.
Estimates are described using the state's fiscal
year of July 1 through June 30.
State and Local Revenues and Expenditures
Estimate Assumptions
The state will obtain $503.3 million in funds (bond
proceeds) over five fiscal years from the issuance
of $505 million in state general obligation bonds.
Bond issuance schedule assumptions are from:
the Washington State Department of Commerce.
(See page 48, Figure 6.1.)
Bond funds will be expended as grants to public
school districts and public higher education
institutions through a competitive process.The
following data are the estimated state grant
expenditures and corresponding increased
revenue to public school districts and public
higher education institutions. The estimated
expenditures are not reduced for allowable state
agency administrative fees.
An estimated 2,049 buildings owned by 295
public school districts and 1,440 buildings owned
by 40 public higher education institutions, for a
total of 3,489 buildings, may be eligible for grants.
Data are from the Washington State Department
of General Administration, Higher Education
Coordinating Board and Office of Superintendent
Of Public instruction. At least 5 percent of the total
grant amount must be awarded to public school
districts with fewer than 1,000 full-time equivalent
students. (See page 48, Figure 6.2.)
Referendum 52 would remove the June 30, 2013,
expiration of the sales tax on bottled water. State
revenues are estimated to increase by an annual
average of $39,808,600 and local revenues are
estimated to increase by an annual average of
$14,868,600. Revenue estimates are based on
state consumption and sales data contained in the
2008 Beverage Digest Fact Book. Local revenues
are a statewide estimate based on an assumption
of a 2.392 percent statewide average local sales
tax rate.
State revenues deposited in the State General
Fund can be used for any governmental purpose,
including payment of state bond debt service ,
costs. Revenue will increase for local jurisdictions
authorized to impose a sales tax (counties, cities,
transit, etc.); the local sales tax revenue must be
used as allowed by state Iaw.Total state and local
government revenue impacts are summarized in
Figure 6.3, page 48.
State and Local Indebtness Estimate Assumptions
Assuming a bond payment term of 25 years for
each issuance and the June 2010 Washington
State Economic and Revenue Forecast Council
Bond Buyer Index, total 29-year state debt service
for the bonds is estimated to be $937,031,878,
for an average annual debt service payment of
$32,311,444. Data below are supplied by the Office
of the State Treasurer. No local government debt
is assumed from the referendum. (See page 48,
Figure 6.4.)
State and Local Cost Estimate Assumptions
The Washington State Department of Commerce,
Washington State Department of General
Administration and Washington State University
Energy Program wifl incur costs to develop
and administer the competitive grant program.
Costs include staff salaries and benefits, grant
administration, grant workshops, supplies and
materials. The Washington State Department
of General Administration will incur additional
costs to conduct energy saving audits for grant
applicants and to manage approved projects. The
Washington State Department of Revenue will
incur costs to refund sales tax to persons who
have purchased bottled water with a prescription
or who have no potable water.Total costs are
estimated to average $2,195,409 annually. Data
are supplied by state agencies. (See page 49
Figure 6.5.)
Referendum Bill 52
Referendum Bill 52
Figure 6.1 Bond Value, Costs and Net Revenue
Fiscal Year
2011
2012
2013
2014
j 2015
Bond Value
$5,000,000
$70,000,000
$150,000,000
$150,000,000
$130,000,000
Cost of Bond
Issuance
($17,038)
($238,533)
($511,142)
($511,142)
($442,990)
Net Revenue
to Washington
$4,982,962
$69,761,467
$149,488,858
$149,488,858
$129,557,010
Works Account
Figure 6.2 Estimated State Grant Expenditures and Increased Local Revenue
Fiscal Year
2012
2013
2014
2015
_
2016
Expenditures
from
Washington
($17,362,232)
($130,615,624)
($149,363,819)
($144,362,639)
($55,000,000)
Works Account
Revenue
(Grants) to
Public Schools
and Higher
$17,362,232
$130,615,624
$149,363,819
$144,362,639
$55,000,000
Education
Institutions
Figure 6.3Total State and Local Revenue Impacts
Fiscal Year
2014
1 2015
2016
$40,346,000
2017
$42,162,000
2018
$44,059,000
Total State
General Fund
$33,867,000
$38,609,000
Total State
Performance
$55,000
$63,000
$66,000
$69,000
$72,000
Audit Account
Total Local
Revenue
$11,680,000
$14,647,000
$15,306,000
$15,995,000
$16,715,000
Figure 6.4 State Indebtedness
TOTAL
Fiscal Year
2011
2012
2013
2014
2015
Bond Value
$5,000,000
$70,000,000
$150,000,000
$150,000,000
$130,000,000
$505,000,000
Average
Coupon
(Interest) Rate
4.74%
4.76%
5.30%
5.68%
6.01%
Debt Service
$8,586,984
$120,461,348
1 $272,420,147
1 $282,697,792
1 $252,865,607
$937,031,878
Figure 6.5 State
Costs
Fiscal Year
2011
2012
2013
2014
2015
Dept. of
Commerce
$779,917
$639,114
$639,114
$639,114
$639,114
Dept. of
General
$16,222
$2,026,151
$2,026,151
$1,701,403
$1,701,403
Administration
WSU Energy
Program
$48,421
$17,880
$17,880
$17,880
$17,880
Dept. of
$0
$0
0
$0
$49,400
Revenue
Total State
Costs
$844,560
$2,683,145
$2,683,145
$2,358,397
$2,407,797
50 Referendum Bill 52 I Senate Joint Resolution 8225 51
Argument For Referendum Bill 52 Argument AgainSt Referendum Bill 52
Referendum 52: Healthy Schools for Washington
Dur kids deserve safe, healthy learning environments.
But too many of our school buildings are aging and
dilapidated. Many are riddled with mold, lead, asbestos
and other toxins. Referendum 52 will change that by
creating $505 million in bonding capacity dedicated
to repairing public schools, community colleges and
university buildings across the state.Taxpayers will save
an estimated $130 million annually in energy costs.
Making Our Schools Safe for Learning
Referendum 52 will protect our kids by helping to
remove asbestos, mold and other toxic substances
from contaminated public school buildings. It will
repair heating and air conditioning systems and replace
deteriorating windows so our schools provide a healthy
environment where kids can focus on learning. Our kids
should not be put at risk by going to school - Referendum
52 will make our schools safer.
Creating Jobs Across the State
New improvements mean new jobs. Last year over
105,000 jobs were lost in Washington State. Repairing -
our aging school' buildings will create 30,000 new
construction jobs. Every school district will benefit,
which will bring new employment opportunities to every
community across Washington State.
Saving Energy and Money
Referendum 52 will save taxpayers money, It requires that
only projects with energy cost savings greater than the
cost of the project can receive funding. All spending will
be subject to audits, and must be fully publicly disclosed.
Referendum 52 means safer schools, more jobs, and
lower costs over time. Vote yes on Referendum 52.
Rebuttal of Argument Against
R-52 will reduce State debt: Contrary to the opponents'
claims, R-52 will lower state debt over time. Repairing
existing schools will extend the life of school buildings.
Less new building construction means less new debt
- saving an estimated $600 million in new school
construction bonds over the next eight.years. R-52 will
save energy and money, create jobs and make schools
healthy places for our kids to learn.. Approve R-52!
Argument Prepared by
Ralph Munro, former Republican Secretary of State;
Sharon Ness, Pierce County Nurse; Patrick Nicholson,
Head Custodian Kits ap School District, Washington
Education Association; Rick Schrader, Spokane small
business Pro -Heating and Air Conditioning; Joan Crooks,
Executive Director Washington Environmental Council;
Eric Martinson, Sheet Metal Workers Local 66.
Vote No on Referendum 52: More Debt and Taxes Aren't the Answer
Already, State Government's Debt Per Person is Nearly Twice the
National Average
State Debt per Person
$2087
95
nel Washington
Debt Service has Grown Faster than Education Spending; R-52
Exacerbates the Problem
Debt expenses consume 84% more taxpayer dollars
now than 12 years ago, reaching $1.8 billion in the 2010
budget. Debt service costs more than the Department of
Corrections, UW, WSU, or state parks.,
Olympia should be reducing debt; higher debt costs mean
less for core services.
R-52 Sidesteps Constitutional Debt Limit that Protects Taxpayers
R-52 authorizes debt outside the Article 8, Section 1
constitutional Iimit.This is unwise and unnecessary,
Lottery proceeds should go to school construction, but
they and other funds (nearly $1 billion total) are being
diverted. Trading huge long-term debt and a permanent
bottled -water tax for short-term jobs doesn't add up.
More debt? More taxes? Please vote no on R-52.
Rebuttal of Argument For
Schools? Only 5% is guaranteed to K-12. Most funds will
go to universities.
Jobs?The state's economists estimate 5,700 short-term
construction jobs, not 30,000.The nearly $1 billion cost of
repaying R-52 costs, taxpayers $162,000 per job.
Health? For 40 years, state law has required healthy
schools. R-52 criteria make no mention of asbestos, mold,
or school health.This is "bait -and -switch"
Washingtonians already bear more government debt per
person than Californians. Vote no.
Argument Prepared by.
Joseph Zarelli, State Senator, Ranking Member, Ways and
Means Committee; Judy Wamick, State Representative,
Ranking Member, Capital Budget Committee; Rodney
Tom, State Senator, Vice -Chair, Ways and Means
Committee.
Contact: (206) 434-0979; www.HealthyschoolsforWA.org Contact: No information submitted
Senate Joint Resolution
8225
Proposed to the People by the Legislature
Amendment to the State Constitution:
The legislature has
proposed a constitutional
amendment concerning
the limitation on state
debt.
This amendment would require the state to
reduce the interest accounted for in calculating
the constitutional debt limit, by the amount of
federal payments scheduled to be received to
offset that interest.
Should this constitutional amendment be:
Approved
E ] Rejected
Votes cast by the 2010 Legislature on final passage:
Senate: Yeas, 44; Nays, 0; Absent, 0; Excused, 5
House:Yeas, 69; Nays, 27; Absent, 0; Excused, 2
The Official BallotTitle and the Explanatory Statement were
written by the Attorney General as required by law, and
revised by the court.The Secretary of State is not responsible
for the content of arguments or statements (WAC 434-381-
180).The complete text of Senate Joint Resolution 8225
begins on page 131. ,
Explanatory Statement
Written by the Office of the Attorney General; revised by the
court
The Constitutional Provision as it Presently Exists
Article Vlll, section 1, of the Washington
Constitution authorizes the state to borrow
money, by issuing bonds; notes, and other
evidences of indebtedness, to be repaid over
time with interest.That provision of the state
constitution also sets a limit on the aggregate
.debt the state may assume. The aggregate debt
contracted by, the state cannot exceed an amount
for which the payments of principal and interest .
in any fiscal year exceed nine percent of the
average general state revenues for the previous
three fiscal years. "General state revenues" are'
defined to include all money received by the state
treasury from any source, with certain exceptions.
Not all state' debt is subject to the debt limit.
The Effect of the Proposed Amendment, if Approved
The proposed amendment would not change
the constitutional debt limit. It would modify the
annual calculation used to determine whether
the state's debt is within the'constitutional limit.
The amendment would require the state, in
annually calculating the amount required for
payment of interest.on its general obligation
debt, to subtract scheduled federal payments
to be received each year in respect of bonds,
notes, or other evidences of indebtedness. ,
Under the constitution, the debt the state may
issue is based in part on the total amount of the
state's annual principal and interest payments.
Therefore,, subtraction of federal payments to be
credited against interest on the debt could affect
the amount of aggregate debt that the state may
incur.
Fiscal Impact Statement
Not required by law
3
52 Senate Joint Resolution 8225410m"- I Engrossed Substitute House Joint Resolution 4220` 5'�
I
Argument For
Senate Joint Resolution 8225
This State Constitutional Amendment will reduce the
cost to state taxpayers for schools, college and university
buildings, parks and open space, community facilities, local
infrastructure, prisons, and public buildings by reducing the
net interest rate paid on General Obligation Bonds issued by
the State.
The federal government has changed the way it subsidizes
interest rates for bonds issued by state and local
governments. This amendment changes the definition of
•'interest" in our State Constitution, to make State General
Obligation Bonds eligible for this new federal subsidy, called
"Build America Bonds." With this amendment, the state's
constitutional debt limit would be calculated by using the
"net" interest paid (after federal reimbursement) rather than
the current "full" interest amount paid.
At present, state transportation bonds and local government
bonds are eligible for — and are using —this benefit. Savings
are substantial) Last October the state used these Bonds to
barrow money for transportation projects and we saved $63
million — enough to build a new ferry!
If we could do the same with state General Obligation
Bonds it is estimated we can save taxpayers more than $100
million during the next two years alone!
It does not change the state's constitutional debt limit. It
would not obligate the state or federal government to more
debt.
Please vote "yes"to lower state taxpayer cost of State
General Obligation'Bonds so that we can reduce the cost.
of projects for schools, colleges and universities, parks,
community facilities, local infrastructure, prisons, and public
buildings!
Rebuttal of Argument Against
SJR8225 does not increase debt and does not raise the
state'; constitutional debt limit.
Just like refinancing a -home mortgage at a lower interest ,
rate, this lets scarce tax dollars stretch farther and do more.
Local governments and state highway projects already
save money using this method.
Why pay more than we have to— to build schools, parks,
and public buildings?
Vote "yes"— Get more for your tax dollars!
Argument Prepared by
Jim L. McIntire, Washington StateTreasurer; Sen. Karen
Fraser, 22nd Legislative District, Capital Budget Chair;
Sen. Lisa Brown, 3rd Legislative District, Senate Majority
Leader; Sen. Date Brandland, 42nd Legislative District,
State Senator; Daniel J. Evans, former Washington State
Governor and US Senator; David Johnson, Washington
State Building and Construction Trades Council.
Contact: No information submitted
Argument Against
Senate Joint Resolution 8225
Accounting gimmick would increase state taxpayer debt
The state's constitutional debt limit protects the integrity
of our economy by preventing the state from borrowing
more than it can reasonably pay back. Any changes to this
could challenge the integrity of our state's economy.
The Washington State Constitution limits the general
obligation debt by restricting the treasurer's authority to
issue bonds exceeding 9 percent of the average general
state revenue for the preceding three years.The treasurer
issues debt limit bonds to finance capital, projects and
sells bonds twice a year to cover expected payments on
construction projects. I
SJR 8225 would -amend our constitution to allow the
interest calculation on debt used to determine the debt
limit, by subtracting federal subsidies.
If approved, SJR 8225 would allow the treasurer to take
on more debt.The state of Washington is in the midst of a
budget crisis. Now is not the time to run the risk of over-
extending the state's credit. Adding too much debt could
have a devastating effect on the rest of Washington's
investments and place enormous financial burdens on
taxpayers and their children. I
During the 2010 session the Legislature struggled to
adopt an operating and capital budget because spending
was outpacing revenues by billions of dollars. In the end,
taxes were raised and a second measure was adopted
that asks voters to approve additional borrowing beyond
the state debt limit.
Now is the time for fiscal responsibility, not more debt
through accounting gimmicks. Vote -no on SJR 8225.
Rebuttal of Argument For
Do not be deceived. Savings are not created by increasing
our borrowing.capacity. BuildAmerica Bonds is'a
temporary federal program to subsidize temporary
government jobs — burdening taxpayers with more long-
term debt and giving more federal (IRS) control over state
spending.The real winners? Wall Street —they've already
made millions. Investors (of which many are foreign) have
been flipping these bonds like houses. Sound familiar?
Change our addiction to spending, not our Constitution.
Vote no I
Argument Prepared by
Mike Hope, State Representative; 44th District; Jim
McCune, State Representative, 2nd Legislative District.
Contact: No information submitted
Engrossed Substitute House mint Resolution
4220
Proposed to the People by the Legislature
Amendment to the State Constitution:
The legislature has proposed
a constitutional amendment
on denying bail for persons
charged with certain criminal
offenses.
This amendment would authorize courts to deny
bail for offenses punishable by the possibility of
life in prison, on clear and convincing evidence
of a propensity for violence that would likely
endanger persons.
Should this constitutional amendment be:
C I Approved
C ] Rejected
Votes cast by the 2010 Legislature on final passage:
Senate:Yeas, 48; Nays, 0; Absent, 0; Excused, 1
House:Yeas, 92; Nays, 4; Absent, 0; Excused, 2
The Official BallotTitle and the Explanatory Statement
were written by the Attorney General as required by law.
The Secretary of State is not responsible for the content of
arguments or statements (WAC 434-381-180).The complete
text of Engrossed Substitute House Joint Resolution 4220
begins on page 132.
Explanatory Statement
Written by the Office of the Attorney General
The Constitutional Provision as it Presently Exists
With the exception of one class of cases, the
constitution currently provides that all persons
charged with crimes are entitled to be released
pending trial upon posting bail by -sufficient
sureties. A "surety" is an individual or institution
that agrees to guarantee that bail will be paid on
behalf of a charged person if bail is forfeited. "Bail
is money or property pledged by a person charged
with a criminal offense. When the charged person
posts sufficient bail, he or she is released from
custody pending a trial.
The constitutional provision has been implemented
by court rules. Under those rules, a court may
require bail to support a promise that the person
charged will appear for trial. A court also may
require bail to assure that the charged person
complies with release conditions imposed by the
court.The court may impose release conditions
where there is a substantial danger that the charged
person will commit a violent crime, or seek to
intimidate witnesses, or otherwise unlawfully
interfere with the administration of justice unless
the court imposes conditions on the accused
person's release. If the charged person does not
appear for trial, or violates release conditions
secured by bail, bail may be forfeited.The trial court
sets the amount of bail in a given case.
The class of cases in which bail currently may be
denied under the constitution as it presently exists
is capital offenses "when the proof is evident or
the presumption'is great" A "capital offense" is
an offense for which the death penalty may be '
imposed if the person charged is convicted. Under
court rules, a person charged with a capital offense
shall not be released on bail unless the court finds
that release conditions will reasonably assure that
the accused will appear for trial, will not significantly
interfere with the administration of justice, and will
not pose a substantial danger to others. In capital
cases, if a risk of flight, interference, or danger is
believed to exist, the court may detain the charged
person for trial, without bail.
The Effect of the Proposed Amendment, if Approved
The proposed constitutional amendment would
authorize courts to deny bail in an additional class
of cases: offenses punishable by the possibility
of life in prison where there is a showing by,
clear and convincing evidence of a propensity
for violence that creates a substantial likelihood
of danger to the community or any persons.The
legislature would have authority to set limitations
on the denial of bail in these cases.
Fiscal Impact Statement
Not required by law
_ r :q
54 Engrossed Substitute House Joint Resolution 4220
Argument For Argument Against
Engrossed Substitute House Joint Resolution 4220 Engrossed Substitute House Joint Resolution 4220
HJR 4220 Protects the Public and Washington's Civil Liberties
Currently our Constitution permits a judge to deny hail
only if a suspect is charged with aggravated murder.
This proposal broadens the criteria for denying mail to
persons charged with crimes potentially punishable by
life in prison, when the suspect is truly dangerous.The
amendment does not take away civil liberties, such as the
right to bail, speedy trial or the presumption of innocence.
Voting yes gives judges the flexibility to keep the most
dangerous offenders behind bars while awaiting trial.
This Proposal Addresses Actual Needs
Sadly, Washington has had a number of high profile
criminal tragedies in recent years. Judges currently
must set bail based only upon flight risk. Some violent
crimes might have been avoided if the judge could have
denied bail based on the offender's dangerousness. The
Washington Legislature passed this proposed change
almost unanimously in the House and Senate, to give
judges this ability to protect the public. Voting yes on this
amendment Will help prevent future tragedies.
This Proposal Balances Public Safety and Individual Rights
Our Constitution balances the right of the public to safety,
and the right of accused persons to a fair process.This
proposal continues to allow most offenders to post bail,
but takes that right away when there is a propensity for
violence and a likelihood of danger to the community or
any person. Voting yes protects us from the most violent
criminals.
Rebuttal of Argument Against
This measure does not alter presumption of innocence.
The opposition wrongly suggests this proposal
diminishes the presumption of innocence.That is
incorrect. Presumption of innocence remains the hallmark
of our justice system. Defendants may be denied bail
pending trial only if they are facing life in prison and
a judge determines that they pose a clear danger of
violence to the community.
This measured proposal is a tool to protect our citizens.
Vote yes.
Argument Prepared by
Christopher Hurst, State Representative and 25-year
veteran police officer; Mike Rope, State Representative
and Seattle police officer; Adam Kline, State Senator;
John Lovick, Snohomish County Sheriff; Mark Lindquist,
Pierce County Prosecutor; Kim Renninger, Wife of
Lakewood Sgt. Mark Renninger.
Contact: www.rememberlakewood.com
Preserve Public Safety and Our Constitution - Reject HJR 4220
Our constitution has served our state well for 120 years,
and we should not alter it without careful consideration.
But HJR 4220 is hasty and ill-considered, unfairly allowing
for the detention of individuals who may be innocent. We
should not rush to change a fundamental constitutional
protection -the right to be presumed innocent - in
response to a single tragedy.
The Amendment Undermines the Presumption of Innocence and
Doesn't Make Us Safer
Individuals charged with but not convicted of crimes
usually have a chance to post bail before trial.This is an
important protection - mistakes happen in our system,
and those charged with crimes are often found innocent
or convicted of much lesser crimes. Our current system
already requires judges to consider public safety, criminal
activity, and flight risk in setting conditions, and we
should improve our system to ensure judges receive the
most complete information to prevent future tragedies.
But this amendment goes too far, giving judges the
power to detain more innocent people without bail -and
costing precious dollars we desperately need to target
real public safety threats.
Preventive Detention is Out of Line with Washington's Values
This amendment erodes our precious freedoms. Locking
innocent people up without bail and without proof of their
guilt is out of line with Washington's values and doesn't
make us safer.
Please vote no on HJR 4220.
Rebuttal of Argument For
Judges can already set high bail and other conditions to
protect the public from potentially violent individuals.The
existing rule was carefully developed to protect public
safety while preserving the presumption of innocence.
Changing it won't make us safer, but will harm thousands
who may well be innocent - and who needn't be jailed
to protect the public. Judges need more and better
information about accused persons, not an amendment,
that harms civil liberties. Vote no.
Argument Prepared by
Robert C Boruchowitz, Professor of Law; Neil M. Fox,
Attorney; Colleen Kinerk, Attorney and Mediator.
Contact: No information submitted
Do you know what they ado?
Following are qualifications and responsibilities for offices appearing on your ballot.
Federal offices public policy in the state, provide for the levy and collection of
taxes and other revenue to support state government and assist
United States Senator local government, and appropriate funds for these purposes.
The position of senator was established in the U.S. Constitution.
A senator must be at least 30 years of age, have been a citizen of
the United States for nine years, and, when elected, be a resident
of the State from which he or she is chosen.The Senate is made
up of 100 members, two for each state, and each senator's term
is six years.The Senate has several exclusive powers, including
consenting to treaties, confirming federal appointments made
by the president, and trying federal officials impeached by the
House.The Senate and House have equal responsibility for
declaring war, maintaining the armed forces, assessing taxes,
borrowing money, minting currency, regulating commerce, and
making all laws necessary for the operation of the government.
United States Representative
The position of representative was established in the U.S.
Constitution. A representative must be at least 25 years of
age, have been a citizen of the United States for seven years,
and, when elected, be a resident of the state from which he
or she is chosen.The House of Representatives is made up
of 435 members, each state is allocated a different number
of members based on population, and each representative's
term is two years; the total membership of the House is
elected in even -numbered years.The Senate and House have
equal responsibility for declaring war, maintaining the armed
forces, assessing taxes, borrowing money, minting currency,
regulating commerce, and making all laws necessary for the
operation of the government.
Legislative offices
State Senator
The State Constitution requires a senator to be a citizen of the
United States and a qualified voter in the legislative district he
or she represents. A senator's term is four years.The Senate is
made up of 49 members, one from each legislative district in
the state. One-half of the membership of the Senate is elected
in each even -numbered year,The Senate's only exclusive duty
is to confirm appointments made by the governor. During
legislative sessions, the Legislature is called upon to enact or
reject legislation affecting public policy in the state, provide for
the levy and collection of taxes and other revenue to support
state government and assist local government, and appropriate
funds for these purposes.
State Representative
The State Constitution requires a representative to be a citizen of
the United States and a qualified voter in the legislative district
he or she represents. A representative's term is two years.The
House is made up of 98 members, two from each legislative
district in the state.The total membership of the House is elected
each even -numbered year. During legislative sessions, the
Legislature is called upon to enact or reject legislation affecting
State courts
Judges in Washington are selected in nonpartisan elections.
Unlike the federal government and most other states, judicial
candidates in Washington are not appointed, and unlike most
other state candidates, do not identify a political party preference.
Judicial candidates are prohibited from making misleading or
untruthful comments, or statements that appear to commit them
on legal issues likely to come before them in court.
Judicial candidate statements are governed by Cannon 7 of
Washington's Code of Judicial Conduct. For more information
about Cannon 7 or other judicial conduct codes, go to
www.courts.wa.gov.
Supreme Court Justice
Nine justices sit on the state Supreme Court, each serving six -
year terms.Three justices come up for election every two years
and are voted an statewide.The Supreme Court hears appeals
and decides on cases from the Court of Appeals and other
lower courts.
Court of Appeals Judge
Courts of Appeals hear and decide on most of the appeals that
come up from the superior courts. A total of 22 judges serve the
court in three, multi -county divisions headquartered in Seattle,
Tacoma and Spokane. Candidates run in one of three districts
within each division. Only voters registered within their districts
can vote for them. Judges serve six -year terms.
Superior Court Judge
Superior Courts hear felony'criminal cases, civil matters,
divorces, juvenile cases, and appeals from lower -level
courts. They are organized by county into 31 judicial districts.
Candidates run in the county or counties within their district,
and only voters within that district can cast ballots for them.
Judges serve four-year terms.
0 Candidate statements
are printed exactly as
submitted.The Office of
the Secretary of State does
not make corrections of any
kind or verify statements for
truth or fact.
�— J
56
Patty Murray
(Prefers Democratic Party)
Elected Experience: Shoreline
School Board, State Senator, United
States Senator
Other Professional Experience:
Shoreline Community College
Cooperative Preschool Teacher
Education: Graduate, Washington
State University
United States Senator I 6-yearterm
Community Service: No information submitted
Statement: As your U.S. Senator, I've always put
Washington state's families first and fought for you.
Fighting for you means saving and creating private
sector jobs to get our economy moving. I've supported
critical transportation projects across our state and
invested in private industry, our ports, military bases
and Hanford cleanup to create thousands of jobs. I'm
working to continue Washington's leadership in clean
energy and create new jobs across our region. And I'm
fighting to bring the military's next tanker contract home to
Washington's aerospace workers.
Fighting for you means helping veterans. As the daughter
of a WWII veteran and member of the Senate Veterans'
Affairs Committee, I'm fighting to give veterans and
their families the support and respect they deserve. That
means mental health care, job opportunities, and ending
homelessness.
Fighting for you means putting families ahead of
Wall Street and special interests. I have a grandson
and I'm worried about our debt. That's why I support
wise investments to grow our economy and put small
businesses ahead of wealthy Wall Street CEOs. I voted to
end taxpayer bailouts and put money back in your pockets
through middle class tax cuts. I'll continue to protect
Medicare and Social Security for seniors. And I'll ensure BP
- not taxpayers - pays for the tragedy in the Gulf.
Fighting for you means investing in education. As a former
preschool teacher, I've always,worked to make our schools
the best they can be: by lowering class sizes, supporting
early education, ending gang violence, helping families
pay for college and giving our workers critical training
services.
1 am honored to be your voice as Washington's U.S.
Senator. I'll never stop fighting against the powerful on
behalf of you and your families. 1 ask for your vote to
continue to put Washington state first.
For More Information: (206) 286-9199;
Patty@ pattymurray.com; www.pattymurray.com
Dino Rossi
(Prefers Republican Party)
Elected Experience: State Senator
representing Washington's 5th
district in East King County from
1996 to 2003.
Other Professional Experience: As
Chair of the Senate Ways & Means
Committee, Dino built a bipartisan
coalition to balance the largest
budget deficit in state history without raising taxes while
still protecting the disadvantaged. Rossi has a history
of working across party lines to make a difference for
Washington families. He was the Republican nominee
for Governor in 2004 and 2008.
Education: B.A. in Business Management from Seattle
University.
Community Service: Board for the Special Olympics for
Washington. Deans Advisory Board for School of Business
at Seattle University.
Statement: Our country is in trouble. Congress has
mortgaged America's future by passing trillion dollar budget
deficits, wasteful stimulus packages, and Wall Street bailouts.
Instead of acting to help our economy and create jobs,
Congress has amassed massive debt our children and
grandchildren will have to pay. Instead of encouraging
job growth, the government has taken over everything
from banks to car companies to the student loan
program. Instead of helping families by making health
care affordable, Congress' bill will increase premiums
and taxes while slashing Medicare. Their approach has
failed. Washington's unemployment rate is dangerously
close to 10%, our national debt has soared past $13 trillion,
and taxes on working families keep rising. Our economy
is headed for a breaking point, with no end in sight.
But we can't change direction until we change the political
leadership that seems more interested in their political
ambitions than in getting things done.
My plan is simple: Cut the massive growth in federal
spending that has created these huge deficits and will double
our national debt in five years. Pass a Balanced Budget
Amendment, because neither Republicans nor Democrats
in Washington, DC have any discipline when spending your
money. Fix the tax code to reward work, saving, and the
investments that create jobs while closing special interest
loopholes that favor the politically connected.
Replace the health care bill and reform health care by taking
power away from big government and insurance companies
and giving it back to patients and their doctors.
Finally, I know America's best days are ahead of us, if only
we unleash the energy and talent of the American people
and get government back to its proper, more limited
role. That will be my mission as your Senator. I ask for your
vote on Election Day.
For More Information: (425) 451-2010; info@dinorossi.com;
www.DinoRossi.com
United States Representative I District2 I 2-yearterm
John Koster
(Prefers Republican Party)
Elected Experience: Served three
terms in the Washington State
House of Representatives. Elected to
Snohomish County Council in 2001
where he currently serves.
Other Professional Experience:
Former business consultant, third
generation dairy farmer who owned
and operated his own business for 25 years.
Education: Graduate of Arlington High School and Everett
Community College.
Community Service: Served on the Snohomish County
Agricultural Advisory Committee; past Board President
Arlington Christian School; attends Arlington First Baptist.
Statement: I grew up on a dairy farm where my parents
taught me how to work and the value of a dollar. They
taught me about the American Dream, that America is
great, and that the American free enterprise system is the
greatest economic system ever devised. I operated the
family farm for 25 years and raised my family there. My
wife, Vicki, and I have been married for 39 years and we
are blessed with four children and nine grandchildren.
I'm running for Congress, to do what needs to be done
to get Americans back to work. Under current policies
our children and grandchildren will not have the same
opportunities that I was afforded thanks to a runaway big -
government agenda that has been rubber-stamped by our
current elected representative.
Over the last ten years, Rick Larsen and Nancy Pelosi
have put a government bureaucrat between you and your
doctor, raised taxes, increased wasteful spending, raised
the debt ceiling, limited personal freedoms, and saddled
our families with an unconscionable $13 trillion national
debt. Each and every American's share of this debt is
over $42,000!
1 support balancing the nation's budget by law. We simply
cannot continue to pile debt upon future generations. My
top priority will be to put a stop to the massive spending
spree Congress has been on for too long.
There is a fundamental difference between myself and the
incumbent. Larsen believes failed government bailouts
are the answer. I believe that the American people, using
their ingenuity and creativity within the free enterprise
system, are the answer to our economic woes.
Our nation's economy can be great again. Double-digit
unemployment is not acceptable and must be overcome.
This will happen when we elect a common sense
congressional representative who listens to the people
and understands free market principles.
For More Information: (360) 926-2235;
info @ Kosterfo rCong ress.com;
www.KosterforCongress.com
Rick Larsen
(Prefers Democratic Party)
Elected Experience: It is my privilege
to serve as the Representative for
Washington's 2nd Congressional
District. I've also served on the
Snohomish County Council.
Other Professional Experience: Prior
to working as a public official I was
employed by the Port of Everett and
the Washington State Dental Association.
57
Education: I graduated from Pacific Lutheran University
in Washington state and have a masters degree from the
University of Minnesota.
Community Service: My parents were an important
influence on me, encouraging me to be involved in my
local community.Their encouragement continues to be a
motivation for my service to our communities.
Statement: Representing you in Congress is a privilege
I work hard every day to earn. To me there is only one
Washington - the one we live in. Born and raised in
Arlington, I understand the needs of our communities.
This year, the Democratic Party nominated me for
re-election so that I can continue fighting for you in
Congress and working hard to get our economy back on
track.
My number one priority is building an environment,where
businesses can create jobs and thrive. I want to see the
label "Made in America" again. I want the best aerospace
workers in the world to build the next generation of Air
Force Tankers here in Northwest Washington. I want to
invest in our manufacturing base, to support our farmers,
,and help small businesses gain access to credit so they
can grow and thrive.
I want to hold Wall Street firms accountable for their
irresponsible actions that have depleted middle class
families' retirement accounts and resulted in lost jobs.
And I want to protect consumers and taxpayers on Main
Street from extreme decisions made on Wall Street.
I know these are tough times and frustration runs deep
for many families. When meeting with constituents, I hear
the good and bad stories from people on the front lines of
these tough times. I'm inspired and motivated to continue
to do right by the hardworking people in our community.
hope you'll give me that privilege once again this year.
For More Information: (425) 259-1866; rick@ricklarsen.org;
www.ricklarsen.org
r"'
58 State Representative 1 0istrict 39 Position I I 2-year term
State Representative I District 39 Position 2 J 2-year term
59
Dan Kristiansen
(Prefers Republican Party) I
Elected Experience: Dan Kristiansen
has served in the WA State House
of Representatives since 2003.
Other Professional Experience:
Working nearly 30 years in the
private sector, Dan has extensive -
experience with company
budgets, fiscal planning, employee
management, project coordination and dealing with
government agencies as a small business manager &
owner.
Education: 1981 graduate of Shorecrest High School,
Shoreline, WA; attended Shoreline Community
College.
Community Service: Dan has received many awards
for his service related to his community such as area
chambers of commerce; the Farm Bureau, veterans
and the disabled community. Dan and his wife have
three children, living in the greater Snohomish/Monroe
area 25+ years.
Statement: Let's return to the ideals that made this
country exceptional. These are: smaller, limited
government, balanced budgets, private property
rights, keeping personal control regarding health care,
choice within education, state sovereignty, freedom of
movement regarding transportation, and the idea that
government serves the people, the people do not serve
the government.
Washington needs to be the best place to live and
do business. 1 have never voted for a new tax or tax
increase. I ask for your support again as I continue the
fight for constitutional freedom and liberty. Citizens
throughout this state deserve this.
For More Information: (360) 563-0507;
dankristiansen39@clearwire.net;
www.dankristiansen.com
Eleanor Walters
(Prefers Democratic Party)
Elected Experience: I am not a
career politician -this is my first
run fo.r public office!
Other Professional Experience:
Contract Management, Starbucks
Corporation; In-house Counsel,
IWBC.net, Supervisor, Delta
Airlines; Manager, government
jobs programs; Provider of mediation services; Adjunct
Instructor, remedial education and travel industry
management.
Education: Gonzaga University School of Law, J. D
Law; University of Oregon, B.S., Public Affairs.
Community Service: Past President of League of Women
Voters of Anchorage; President and board member of
US Swimming clubs; Precinct Officer, 39th Legislative
District; Diversity Council, City of MonroeNMCA; Past
President, Lutheran Church Council. I have two adult
daughters: Sarah and Mary Beth.
Statement: We deserve change in Olympia. Partisan
gridlock has paralyzed state government at an
enormous cost to taxpayers. Politicians argue while
we lose jobs.Taxes go up while services shrink. It's
time to stop the slide. We need representation that
focuses on us, not special interests. I am committed
to diversifying our economy, expanding educational
opportunities, and encouraging small business. We
need solutions, not expensive special sessions.
I am a common sense leader and one who believes in
solving problems by building relationships rather than
tearing them down. Let's work together, from both
sides of the aisle!
For More information: (360) 863-3699;
eleanor@eleanorwalters.com; www.eleanorwalters.com
Kirk Pearson
(Prefers Republican Party)
Elected Experience: Currently State
Representative 39th Legislative
District Significant career
experience: Republican Leader on
House Public Safety Committee,
Capital Budget Committee,
Agriculture and Natural Resources
Committee, Sentencing Guidelines
Commission Member
, _
Unopposed
Other Professional Experience: Special assistant to US
Congressman Jack Metcalf (1995-2000),Former Monroe
Planning Commissioner
Education: Monroe High School , attended Central
Washington University
Community Service: Community Service Member of
a local Chamber of Commerce, Lions Club Honorary
Member
Statement: I am honored to serve the 39 district.
As a state leader on public safety I will continue to
strengthen laws to protect our communities. !n tough
economic times I will continue to fight attempts to
raise taxes on Washington's hard working citizens, to
protect small business- the backbone of our economy,
providing jobs our communities need to thrive. I have
fought to secure levy equalization dollars; funds vital
to our local schools. I will never give up fighting for
safety projects and congestion relief on our roadways.
It's a priviledge to serve as your local representative.
For More Information: (360) 794-1156;
kirk@kirkpearson.com; www.kirkpearson.com
State Representative I District 40 Position 1 I 2-year term
State R ePreseRtative INWitt 40 Position 2 I 2-year term
51
Kristine Lytton
(Prefers Democratic Party)
Elected Experience: President,
Anacortes School Board (two
terms presiding); leading her
school district to more efficiency,
better student scores, while also
passing local levy during the
recession.
Other Professional Experience:
Shell Oil Company, Financial/Accounting Departments
Citicorp Executive Development Center, Senior
Financial Analyst, then Operations Manager
Education: Southern Illinois University, University of
Missouri, Lewis & Clark Community College (Godfrey,
III.)
Community Service: Vice -President, Anacortes Schools
Foundation, Board member, Anacortes Senior College
Board, President and Legislative Chair of the Anacortes
PTA.
Statement: Life is about playing well with others -
something the legislature has forgotten. I know how to
work with others. I have the proven leadership skills to
make the tough choices necessary to work within the
budget. I offer what Olympia needs: negotiating skills,
putting education first, and experience keeping costs
down. Endorsements: League of Education Voters,
American Federation ofTeachers.
I'm a hard-working mom and elected official with a
lifetime of experience working with people to get the
real work done. I have strong Democratic values, but
partisanship has gone too far: we need to get things
moving again.
For More Information: (360) 299-4542;
Kris@KrisLytton.com; www.KrisLytton.com
Mike Newman
(Prefers Republican Party)
Elected Experience: I have never
held public office
Other Professional Experience:
Boeing Employee, Realtor
Education: Sehome High School,
WSU
Community Service: Little League
Coach, Rocky Mountain Elk Foundation Volunteer,
volunteer with WDFW on many projects, Volunteer for
USRDA Self Help Program as a carpenter, Volunteer on
Skagit Backyard HabitatTeam.
Statement: Mike is a family oriented lifetime
Washingtonian, concerned that his children and grand
children will not have the same opportunities that he
had. As a former Boeing employee, Mike knows that
we must keep these good jobs in Washington, and that
it is taxation and over regulation that is driving them
away. We must return to priority budgeting that directs
funding to only the most important programs. We
must also stop the drain on our budget caused when
we award taxpayer supported benefits to illegal aliens.
Mike is not a politician.
For More Information: campaign@ mikenewman2010.com;
www.mikenewman20lO.com
Jeff Morris
(Prefers Democratic Party)
Elected Experience: Jeff Morris
serves in Olympia as Speaker
ProTem. In addition to his
leadership role, Jeff is a member
of theTechnology, Energy, and
Communications Committee and
served as its former Chair.
Other Professional Experience: Jeff
has both private and public sector experience. When
Jeff isn't fighting for cleaner and cheaper energy
in Olympia, he's fighting for it as owner of Energy
Horizon. Jeff's been recognized internationally for
stimulating commerce between Canada and the US,
thereby creating more Washington jobs.
Education: BA Central Washington University 1997
Community Service: Washington Life Sciences Fund,
Trustee; Co -Founder Northwest Energy Angels; PacNW
Economic Region, President
Statement: As a fourth generation Guemes Island
native, I'm proud of taking locally grown values to
Olympia. It's been a privilege representing my home
town community and serving you in Olympia. During
my time in office, I've challenged Olympia to think
outside the box - particularly on job creation, ferry
funding and clean energy.
The fight hasn't been easy.Together, we've made
progress, but our work isn't over. I'll continue to
challenge all special interest groups for laws that
create jobs, clean, affordable energy and tougher
privacy protections.
For More Information: jeff@morriscampaign.com;
www.morriscampaign.com
John Swapp
(Prefers Republican Party)
Elected Experience: none
Other Professional Experience: Six
years as a production supervisor
for a Bellingham manufacturing
company, and six years as a
manufacturing engineer for a
Seattle company producing aircraft
flight deck control systems. 14
years as the owner of JetPointTechnologies, Inc.
Education: Bachelor of Science in Manufacturing
Engineering Technology from Western Washington
University, 1984
Community Service: Sedro-Woolley Rotary Club 6
years, Sedro-Woolley Chamber of Commerce Board
of Directors 3 years, Sedro-Woolley High School
Vocational Advisory Council 2 years, Chinook
Enterprises Business Advisory Council 6 years, Society
of Manufacturing Engineers Board of Directors, Seattle
2 years
Statement: As an Anacortes native and lifelong resident
of Washington, I am frustrated with our state's financial
situation. Year after year, our businesses and job
creators pay more taxes because Olympia has no fiscal
discipline.
I have firsthand experience in starting a business,
signing paychecks and making difficult layoffs in a
down economy. These are tough decisions, but it's
real experience, something lacking in the current
legislature. I understand business needs, and I
know how to create and keep jobs, and prioritize
expenditures. I will bring real world experience to the
legislature and help turn my state around.
For More Information: (360) 770-3006;
john@jetpoint.com; www.JohnSwapp20lO.com
V2
State Senator I District42 I 4-yearterm
State Representative I District 42 Position 1 I 2-year term
--- 63
Doug Ericksen
(Prefers Republican Party)
Elected Experience: Elected to State
House in 1998; Ranking Republican
Healthcare Committee 2009-2010;
Ranking Republican Transportation
Committee 2003-2004, 2008; Floor
Leader 2005-2006, 2009-2010;
Legislative Ethics Board 2002-2010
Other Professional Experience:
English instructorTaichung,Taiwan; Alaska Sightseeing
Cruise West; Legislative Affairs for Washington
Department of Fish and Wildlife
Education: Sehome High School, 1987; Cornell
University, BA in Government, 1991; Western
Washington University, MA in Environmental Policy
and Political Science, 1995
Community Service: Doug and his wifeTasha are raising
their two children in Ferndale.Tasha is an English
teacher at Squalicum High School.The Ericksens enjoy
youth sports, camping and gardening.
Statement: Doug Ericksen is focused on real solutions
and providing leadership on the issues Whatcom
County cares about. As our representative in Olympia,
Doug has proposed legislation to empower people,
contain government, reduce taxes, connect our
communities with bike paths and improve our schools
by increasing local control.
Doug Ericksen's solutions for a better Washington are
needed now more than ever. Doug's plan to create
jobs, limit government, reduce taxes on working
families and small businesses, protect our local farms,
and increase government accountability can be found
at www.DougEricksen.com.
Every day Doug Ericksen works to bring Whatcom
County's common sense solutions to Olympia. By
working with and listening to the people of our
area Doug Ericksen is committed to providing the
leadership to create a balanced budget without
raising taxes while supporting our shared vision for
Washington and protecting the most vulnerable.
As our State Legislator Doug Ericksen has a proven
record of success helping our farmers, getting
transportation projects built, providing excellent
constituent services, and protecting our jobs. Born
and raised in Whatcom County, Doug Ericksen and
his wife are raising their kids in Ferndale. Vote for
real solutions. Vote for real leadership. Vote for Doug
Ericksen.
For More Information: (360) 920-3276;
Doug@DougEricksen.com; www.DougEricksen.com
Pat Jerns
(Prefers Democratic Party)
Elected Experience: No information
submitted
Other Professional Experience: My
family's business, Jerns Funeral
Chapel, is the oldest business of its
kind in Whatcom County. I'm also h
the past owner of both Pat Jerns
Enterprises, where I managed and
represented several entertainment groups, and Allied
Personnel Employment Agency, which helped people
find jobs. I've worked as the National Sales Manager
for a manufacturing company, and then moved into
Real Estate, which I've now done for over 20 years. I
am currently one of only 35 instructors certified in the
United States to teach a two day designation course on
the use of collaborative negotiations.
Education: No information submitted
Community Service: No information submitted
Statement: Unemployment is in the double digits in
Whatcom County. Our politicians are engaging in
partisan infighting instead of delivering results. It's
time for a State Senator who understands what small
business needs in order to create jobs. My opponent
has had his chance in the Legislature — it's time for a
change.
I've worked in the business community for 50 years
in Whatcom County, as a Realtor and small business
owner. I have a unique perspective on the challenges
facing small business —from high taxation to
cumbersome regulation. Creating jobs and keeping
taxes low will be my top priorities in the State Senate.
I will work across party lines in order to end needless
partisan bickering, and deliver results for working
families.
My roots in our community are deep, going back to
the 1800's when my family first moved to the Pacific
Northwest. I am a past recipient of the Realtor of the
Year award forWhatcom County, past President of
the local Realtors Association and an educator in our
community on real estate practices. My experience as
a business owner and my deep roots in the community
make me uniquely qualified to serve you in the State
Senate.
For More Information: (425) 737-8674;
patjerns@gmail.com; www.PatJernsforSenate.com
Jason Overstreet
(Prefers Republican Party)
Elected Experience: Blaine City
Councilman, Elected in 2005,
Re-elected in 2007; Former
Chairman, BlaineTourism Advisory
Committee; Current Chairman,
Rural Economic Development Loan
Committee
Other Professional Experience:
Small Business Owner, Employer; Professional
Firefighter; U.S. Army Veteran
Education: Whatcom Community College; A.A.S.;
Bellingham Technical College, A.A.S. Land Surveying
CommunityService: Former Big Brothers Big Sisters
Volunteer; Former Volunteer Firefighter with Whatcom
County Fire Districts 1 & 8
Statement: With the future of our state and nation
at stake, politicians continue to behave as if their
actions don't have consequences. They continue
spending more money than they have, raising taxes
and regulating our businesses and property into
obscurity. Our elected officials have forgotten that it
is we the people who allow them to govern, expecting
them to secure our rights, not legislate them away.
I will support market -based solutions that allow the
private sector to create jobs, build strong businesses,
and ensure a strong economy for Washington State. I
would be honored to have your vote.
For More Information: (360) 389-2413;
Jason@voteoverstreet.com; www.voteoverstreet.com
Ai Jensen
(Prefers Democratic Party)
Elected Experience: No information
submitted
Other Professional Experience:
United Stated Air Force (1972.
- 1978): Honorable Discharge,
Staff Sgt. (E-5); Bellingham
Police Department (1978 to
present): Patrol Officer, K-9 (Patrol
and Narcotics), Narcotics (Northwest Regional Drug
Task Force), Detective (Major Crimes Unit, Criminal
Intelligence Unit)
Education: Ferndale High School, Hartford Community
College, University of Maryland
Community Service: Volunteer Firefighter (20 years),
Whatcom County Old Settlers Association Trustee (26
years), Whatcom/Ferndale Masonic Lodge, Northwest/
Nile Shrine Club, 4-H Leader, Washington State
Council Police and Sheriffs, Washington State Attorney
Generals Gang Task Force, Member Christ Lutheran
Church, Rocky Mountain Elk Foundation Volunteer
(15 years), Ferndale School District School Levy
Committee, Bellingham City Club
Statement: A thirty-three year police detective,
husband, proud father and grandfather, Al Jensen
understands our concerns and priorities. An
independent voice, Al will reject tax increases, and
demand government accountability. He will work
to stimulate our economy; maintain a stable and
responsible balanced budget; create jobs; protect
citizens from criminals. As a working police officer,
Al knows we must invest in education and provide
opportunities for family wage jobs to build strong, safe
communities. Al Jensen: An Independent voice for
citizens wanting solutions, not partisan politics.
Endorsed: Police and Firefighters, unions and small
business, elected leaders and neighbors throughout
Whatcom County.
For More Information: (360) 393-5495;
info@electaljensen.com; www.electaljensen.com
X
State Representative I District 42 Position 2 I 2-year term
Supreme Court Justice I Position i I 6-year terse
65
Vincent Buys
(Prefers Republican Party)
Elected Experience: Precinct -
Committee Officer
Other Professional Experience: As
a small business owner, I daily
face the challenges, frustrations
�..
and burdens which government
continually heaps upon those of
us who are trying to make a living,
provide jobs and serve our communities.
Education: When I graduated from Bellingham Tech,
I was given understanding of the commonsense
principles needed to troubleshoot and fix problems.
Washington faces serious and continuing problems
which must be addressed. It's time to fix what's
broken!
Community Service: Over the past years of drilling wells
in impoverished communities in Haiti I have come to
develop a unique perspective and understanding of
true priorities.
Statement: Washington State is at a crossroads this
year. Either we continue down the current path of
unsustainable budgets, increasing tax burdens, cuts
to our essential services and closed -door legislation,
or we can choose the direction which will lead us once
again to prosperity, common-sense and freedom.
I am asking for your support and vote this year so
that togetherwe can lead Washington into a brighter
future, with morejobs, bettereducation and a
transparent government that is kept in check. Let's
return Government to the people - We the People...
For More Information: (360) 389-2101;
Vincent@VincentBuys.com; www.VincentBuys.com
Kelli Linville
(Prefers Democratic Party)
Elected Experience: Washington
State Representative 1993-1994,
1995-present.
Other Professional Experience:
Communications Disorders
Specialist, Bellingham Public
Schools, 1976-1993; Small business
owner, established Fast Lane
Coffee Co in 1993.
Education: Bellingham High Graduate; BA and MA
in Speech Pathology & Audiology from Western
Washington University.
Community Service: Small Business Development
Center Advisory Board, Sustainable Connections
Advisory Board, Whatcom FamilyYMCA Board,
Whatcom Conservation District, Rainbow Center
Advisory Board, Health Support Center Board, Brigid
Collins House Board; ARC Advisory Board, and Rome
Grange. ,
Statement: Even in tough economic times, I believe that
together we can reset our state budget to reflect our
priorities here at home: fully fund basic education-
-early childhood, K-12, and higher ed; stimulate our
economy --simplify regulations, expand workforce
training, and invest in infrastructure; and protect our
communities --clean air and water, safe neighborhoods,
and essential social services.
My current chairmanship of the House Ways and
Means Committee allows me to continue my
commitment to accountability and transparency in
government. It is an honor to represent you. I would
appreciate your continued support.
For More Information: (360) 739-6432;
linvillecampaign20lO@yahoo.com;
www.kellilinville.com
Jim Johnson
(Nonpartisan)
Legal/Judicial Experience: Justice
Jim Johnson has served on
our state Supreme Court for
six years, authoring over 140
opinions, including landmark
defenses of free speech, property
rights, victims' rights and open
government. Previously, Jim
served as a Senior Assistant Attorney General and
argued some of our state's most important cases,
including the U.S. Supreme Court case that won us the
9tn Congressional District. As Washington's Counsel
for the Environment he negotiated agreements that
preserved thousands of acres for wildlife habitat and
recreation. I
_
Other Professional Experience: No information
submitted
Education: Jim attended Seattle's Ingraham High
School, graduated from Harvard and earned his law
degree from the University of Washington.
Community Service: No information submitted
Statement: Keep freedom's friend on the court, reelect
Justice Jim Johnson. Six years ago Justice Johnson
made a simple promise to the people of Washington:
he would uphold the law and constitution as written
and never legislate from the bench. Jim has kept that
promise and today he deserves our vote to remain on
our state's highest court.
The better qualified candidate. Justice Jim Johnson
is the only candidate with judicial experience and the
only candidate with meaningful appellate experience.
Prior to joining the court, Jim was one of our state's
most accomplished attorneys - arguing before the U.S.
Supreme Court, the state Supreme Court and other
state and federal appellate courts. Justice Johnson
has consistently been the court's most reliable voice
for law.and order, which has earned him the support of
law enforcement.
Bi-partisan endorsements: former Chief Justice Gerry
Alexander, JusticeTom Chambers, Justice Charles
Johnson, Justice Susan Owens, Attorney General Rob
McKenna, State Auditor Brian Sonntag and Senator
Slade Gorton.
Jim and his wife Kathy live in Olympia, they have two
grown daughters. Jim volunteered for the U.S. Army
and served at Fort Lewis during the Vietnam War. He
enjoys hunting, sailing, diving and the opera.
For More Information: (360) 539-2012;
info@jimjohnsonforjustice.org;
www.JimJohnsonforJustice.org
Unopposed
m
Supreme Court Justice I Position 5 I 6-yearterm
Supreme Court Justice I Position 6 I 6-year term
67
Barbara Madsen
(Nonpartisan)
Legal/Judicial Experience: No
information submitted
Other Professional Experience: No
information submitted
Education: No information
submitted
Community Service: No information
submitted
Statement: For 18 years Justice Madsen has served on
the Supreme Court and was unanimously elected Chief
Justice in 2010. She graduated from the University
of Washington and Gonzaga Law School and has
practiced law in Washington for 33 years, beginning
as a public defender and then Special Prosecutor
for child abuse and family violence. In 1988 Justice
Madsen was appointed to Seattle Municipal Court
and elected Presiding Judge. She has been active
in the community, including co-chairing the Crystal
Brame task force to require poi ice to adopt policies
for investigating officer involved domestic violence,
volunteering with Tacoma schools and theTacoma
Rescue Mission. Justice Madsen is a member of the
Robert J. Bryan Inn of Court, the Initiative for Diversity,
Washington Women Lawyers, and chairs the state
Gender and Justice Commission. Madsen and her
husband of 30 years and have four children.
As Chief Justice, Madsen is responsible for
overseeing the judicial branch of government, which
resolves disputes involving citizens, businesses,
and governments. She believes the courts must use
evidence based practices, and she is committed to
enhancing fairness and access to the courts through
use of technology, judicial education, and partnerships
with community groups working on justice issues.
For More Information: (360) 905-3272;
barbaramadsen2010@hotmail.com;
www.chiefjusticemadsen.org
Unopposed
Richard B. Sanders
(Nonpartisan)
Legal/Judicial Experience: First WWII
elected to Supreme Court in
1995; and reelected in 1998
and 2004. During my time on
the Court, I have written more
opinions than any other Justice.
Before that, I practiced law for
26 years. I have also served as
an adjunct professor teaching appellate advocacy at
the UW School of Law, and guest lectured on state
constitutional law at Seattle University.
Other Professional Experience: I am an Eagle Scout and
once played the French horn in the Rose Bowl.
Education: B.S. and J.D., University of Washington
Community Service: I frequently lecture and have
written many legal articles and opinion pieces
explaining our constitutional rights.
Statement: A Supreme Court Justice must uphold
the highest ethical standards, working to assure that
government is open and the rights of citizens are
protected. It has been my honor to serve on our state's
highest court since 1995 and to follow these standards.
Article 1, Section 1 of our Constitution states: .
"governments ... are established to protect and
maintain individual'rights" I believe that's the job
description of a Justice also: we must look out for the
individual citizen and protect our Constitutional rights.
Sometimes this makes me'seem conservative, as when
I support property rights, and sometimes it makes me
seem liberal, as when I call on the federal government
to end the unconstitutional treatment of prisoners. But
I am consistent: we have rights the government must
not violate.Thomas Jefferson said the God who gave
us life gave us liberty at the same time. It's a good
thought to remember.
Justice Sanders attracts support that cuts across the
spectrum, with endorsements including: Democratic
and Republican Senators, the State Republican and
Libertarian Parties, judges and civil libertarians,
the Association of Washington Business and union
members -- more than 1,000 endorsers.
Vote to reelect Justice Richard Sanders.
For More Information: (206) 337-2329;
justicesanders@gmail.com; www.friendsofjustice.com
Charlie Wiggins
(Nonpartisan)
Legal/Judicial Experience: Formet 1" ' �►�
Court of Appeals judge; pro tem r
superior court judge in King County "
and Jefferson County; 33 years
experience representing diverse
clients in every type of case in all
appellate courts in Washington;
Other Professional Experience: Past
chair of Disciplinary Board and Court Rules Committee;
past president of Washington Chapter of American
Judicature Society
Education: BA Phi Beta Kappa, Princeton University,
1969; MBA, University of Hawaii, 1972; JQ, Duke Law
School, 1976
Community Service: Army veteran, Rolling Bay
Presbyterian Church Board of Elders and youth leader
for 7 trips building homes, organized Kitsap County
lawyers and built two Habitat for Humanity homes for -
single mothers.
Statement: Join 60 judges, 30 elected prosecutors -
Republicans and Democrats -Sheriffs and police
statewide, State Labor Council,, Washington
Conservation Voters, women's groups, LGBT leaders
and others supporting Charlie Wiggins: a respected
Kitsap County attorney, former Appeals Court Judge,
Army veteran and champion of judicial ethics.
Charlie has worked to protect our courts from
ideological special interests by limiting campaign
contributions, supporting public financing of judicial
elections and judicial ethics rules.The incumbent
opposes these reforms. The incumbent was
admonished by the Judicial Conduct Commission for
interviewing sexually violent predators who had
cases before him. Compare candidates at
www.votingforjudges.org.
Rated "Exceptionally Well Qualified" by King County,
Tacoma -Pierce County, Loren Miller, and Latina Bar
Associations, Charlie's achievements include: 2010
Kitsap Bar Humanitarian Award; 2008 WSBAYoung
Lawyers Professionalism Award; UGM Legal Clinic
Volunteer of theYear; Law & Politics Super Lawyer;
Best Lawyers in America.
Charlie is father of two, Habitat for Humanity volunteer
and active in his church and community. Charlie will
bring the perspectives of people from all walks of -life
to the Court. Charlie has the integrity and impartiality
we need on our Supreme Court.
For More Information: (425) 572-0854;
info@charliewigginsforjustice.com;
www.charliewigginsforjustice.com
VR - — -
Whatcom County official PRGOMCoG
oca oters am et
Table of Contents
A�FlI N .10 '
November 2, 2010 General Election
6ieLE Tj
V
E N VOTING N VV 100
)?S
- N S-rATE
�o�o
�r
i'�M COL
Published by the Whatcom County Auditor's Office • www.whatcomcounty.us/auditor
���7t1n6�°�
Auditor's Letter to Voters............................................................................. 70
VotingInstructions.........:............................................................................. 71
Sample Ballot............................................................... ..................... ....... 72-74
Candidates...............................................................................................
75-77
CountyCouncil...............................................................................................................75
ProsecutingAttorney.....................................................................................................76
Public Utility District......................................................................................................76
DistrictCourt Judges.....................................................................................................77
BallotMeasures.......................................................................................
78-82
Transportation Benefit District No. 1, City of Bellingham...........................................78
Bellingham School District No. 501.....................................................................
Whatcom County Fire'District No. 5.............................................................................80
Whatcom County Fire Protection District No. 11.........................................................81
Northwest Park and Recreation District 2....................................................................82
ReturningYourBallot.................................................................................... 83
AccessibleVoting Unit..........................................---•---..................---........... 84
VoterInformation......................................................................................... 85
SpecialNotices............................................................................................. 86
Ballot Measure Complete Text.................................................................
87-91
Additional Voter Information is available at: wei.secstate.wa.gov/whatcom 0
Participating Jurisdictions:
Whatcom County; Public Utility District No. 1;Transportation Benefit District No. 1, City of Bellingham; Bellingham School
District No. 501; Whatcom County Fire District No. 5; Whatcom County Fire Protection District No. 11; Northwest Park and
Recreation District 2
Published by the Whatcom County Auditor's Office: www.whatcomcounty.us/auditor
70 Auditor's Letter to Voters
71:'r
�GpM co
A
I N G 0#
Dear Whatcom County Voter:
I would like to share the following list of frequently asked questions•with you in preparation for.the
November 2, General Election. We are only a phone call away at (360) 676-6742 orTTY (360) 738-4555
if your question is not listed below.
1 am not registered to vote in Washington State. When is the last day I can register to
vote in the General Election?
October 25, 2010 at 4:30 p.m. is the deadline to register to vote in person at the Whatcom County
Auditor's Office.
I am having trouble deciding whom I want to vote for in a particular office. Do I have to
vote for every office or ballot measure that appears on my ballot?
No, if you do not want to vote a particular office or ballot measure, you may leave it blank. Only
those offices and ballot measures you voted for will be counted.
When is the last day I can mail my ballot?
Your ballot must be postmarked no later than Election Day, November 2. Make sure you know
the last pick-up time of the mailbox or the post office; ballots deposited after that time on
Election Day are postmarked the next day and by law cannot be counted.
If you do not want to mail your ballot, please refer to Page-83 of this pamphlet for Ballot Drop
Box locations.
How do 1 know my ballot has been received by the Auditor's Office?
Go to wei.secstate.wa.gov/whatcom to see if your ballot has been received.
Sincerely,
Shirley �Forslof
Whatcom County Auditor
Voting Instructions
Step 1: There are two sides to your ballot;
vote both sides and remove the stub.
Step 2: Put your voted ballot in the white
secrecy envelope.
Step 3: Put the secrecy envelope in the
purple return envelope.
Step 4: Sign the voter affidavit, seal the
envelope, and return it to the
Auditor's Office. If you use a mark
for the signature, two other people
must sign as witnesses.
If your ballot is destroyed, spoiled, or
lost, you may get a replacement from the
Auditor's Office, 311 Grand Avenue, Suite
103, Bellingham.
If you make a mistake: Draw a line
through the incorrect choice like this:
John Doe *001
or
YES 4-06
or
You then have the option of making another
choice, if you wish. Do not erase!
To write in a name not on the ballot, connect the
arrow and write in the name of the candidate
on the line provided.
CORRECT
Use blue or black ink
to connect the arrow
by your choice with a
single line.
Do NOT use a felt
tip pen or pencil.
INCORRECT
More than one vote for an office or ballot
measure will be an overvote and no votes for
that office or measure will be counted.
If you do not want to vote a particular office
or ballot measure, you may leave it blank.
72 Sample Saffot°'
About the 2010 Washington
General Election:
Washington has a new election system.
In each race for partisan office, the two candidates
who receive the most votes in the August Primary
advance to the November General Election.
Each candidate for partisan office may state
a political party that he or she prefers. A
candidate's preference does not imply that the
candidate is nominated or endorsed by the party,
or that the party approves of or associates with
that candidate.
Not all districts or measures on
this sample will appear on ,your
ballot. Only the district you are
entitled to vote on will appear.
Proposed by Initiative Petition
Initiative Measure No. 1053
Initiative Measure No. 1053 concerns
tax and fee increases imposed by state
government. This measure would
restate existing statutory requirements
that legislative actions raising taxes
must be approved by two-thirds
legislative majorities or receive voter
approval, and that new or increased
fees require majority legislative
approval. Should this measure be
enacted into law?
YES 4i` y
NO 4m Ed
Proposed by Initiative Petition
Initiative Measure No. 1082
Initiative Measure No. 1082 concerns
industrial insurance. This measure
would authorize employers to purchase
private industrial insurance beginning
July 1, 2012; direct the legislature to
enact conforming legislation by March
1, 2012; and eliminate the worker -paid
share of medical -benefit premiums.
Should this measure be enacted into
law?
YES 4M y
NO 4 W ON
Sample Ballot
Whatcom County, Washington
General Election - November 2, 2010
• To Vote: Use either blue or black ink. Do not use a felt tip pen or
pencil. Connect the Head and Tail of the arrow that points to your
choice with a Single Line as shown. 4m--_Ne
• To Correct A Mistake: Draw a line through the incorrect choice
like this: 1-hp Doe *m---oq or XES +(rrr— ■ ig
You then have the option of making another choice if you wish.
• Write -In: To vote for a person not on the ballot, connect the arrow
and write in the name, of the person on the line provided.
• In any race you choose to vote, vote for only one candidate.
Proposed by Initiative Petition
Initiative Measure No. 1098
Initiative Measure No. 1098 concerns
establishing a state income tax and
reducing other taxes. This measure
would tax "adjusted gross income"
above $200,000 (individuals) and
$400,000 Qoint-filers), reduce state
property tax levies, reduce certain
business and occupation taxes, and
direct any increased revenues to
education and health. Should this
measure be enacted into law?
YES 4m toy
NO *5 Et
Proposed by Initiative Petition
Initiative Measure No. 1100
Initiative Measure No. 1100 concerns
liquor (beer, wine and spirits). This
measure would close state liquor
stores; authorize sale, distribution, and
importation of spirits by private parties;
and repeal certain requirements that
govern the business operations of beer
and wine distributers and producers.
Should this measure be enacted into
law?
YES 40 y
NO 4m y
Proposed by Initiative Petition
Initiative Measure No. 1105
Initiative Measure No. 1105 concerns
liquor (beer, wine and spirits). This
measure would close all state liquor
stores and license private parties to sell
or distribute spirits. It would revise
laws concerning regulation, taxation
and government revenues from
distribution and sale of spirits. Should
this measure be enacted into law?
YES 40 Of
NO 4W y
Proposed by Initiative Petition
Initiative Measure No. 1107
Initiative Measure No. 1107 concerns
reversing certain 2010 amendments to
state tax laws. This measure would
end sales tax on candy; end temporary
sales tax on some bottled water; end
temporary excise taxes on carbonated
beverages; and reduce tax rates for
certain food processors. Should this
measure be enacted into law?
YES 4= 04
NO 4m 04
Proposed to the People by the
Legislature
Referendum Bill No. 52
The legislature has passed Engrossed
House Bill No. 2561, concerning
authorizing and funding bonds for
energy efficiency projects in schools.
This bill would authorize bonds to
finance construction and repair projects
increasing energy efficiency in public
schools and higher education buildings,
and continue the sales tax on bottled
water otherwise expiring in 2013.
Should this bill be:
APPROVED 4M 04
REJECTED 4= y
Proposed to the People by the
Legislature
Amendment to the State
Constitution
Senate Joint Resolution No. 8225
The legislature has proposed a
constitutional amendment concerning
the limitation on state debt. This
amendment would require the state to
reduce the interest accounted for in
calculating the constitutional debt limit,
by the amount offederal payments
scheduled to be received to offset that
interest. Should this constitutional
amendment be:
APPROVED 4M 04
REJECTED 4m 04
State Measures
State of Washington
Partisan Office
Proposed to the People by the
Partisan Offices
Prosecuting Attorney
Legislature
State Representative District 40
4Year Term Vote For Ohs
Amendment to the State
Position 1
David S. MCEachran
y
Constitution
2Year Term Vote For One
Prefers Repiblkw
Engrossed Substitute House Joint
Resolution No.4220
Kristine L tton
�
~
4m
04
PreferaDemocratic Pa
Write -In
The legislature has proposed a
Mike Newman
4m
Ed
Public Utility District 1
constitutional amendment on denying
Prefers RaWhkgn Party
Commissioner District 3
bail for persons charged with certain
~
~
Nonpartisan Vote For One
criminal offenses. This amendment
Write-in
6Year Term
would authorize courts to deny bail for
offenses punishable by the possibility
State Representative District 40
p
_
Mike Murphy '
p y
No
of life in prison, on clear and convincing
Position 2
evidence of a propensity for violence
2Year Tom Vote For One
Write -In
that would likely endanger persons.
Jeff Morris
4m
mo
State Judicial
Should this constitutional amendment
PmfomDemccrakParty
be:
State Supreme Court Justice Position 1
APPROVED
y
John Swapp
4=
No
Nonpartisan Vote For One
ftfars 7e Pony
6 Year Term
REJECTED
4E y
4m
mg
Jim Johnson
40
Ed
Write -In
READ; Each can didatefor partisan
State of Washington
Write -In
4m
me
offCB may state a political party that he
iN she prefers. A pndida#e s
partisan Offices
State Supreme Court Justice Position 5
pref erencadoes not Imply that the
State Senator District 42
NonpartisanP Vote For One
6Year Term
candidate is nominated or endorsed by
4 Year Term Vote For One
Barbara Madsen
4m
Ed
the party, or that the party apppproves of
or associates with that candklate.
Doug Ericksen
4m
No
Pro" llpr kt an Pa
Write-in
4m
y
Federal
Pat Jems
4w
y
State Supreme Court Justice Position 6
Partisan Offices
f Preers Dem ralic Party
Nonpartisan Vote For One
U.S. Senator
Write -In
me
6 Year Term
Richard B. Sanders
4m
Ed6YearTerm
vote For one
State Representative District 42
Patty Murray
we
4= we
• Position 1
Wiggins
99 ins
4m
MG
Prefers Durwz& Pary
2 Year Term Vote For one
4m
M1
Dino Rossi
Om NE
Jason Overstreet
4m
mi
Write -In
Re Prefers pabllcen P"
Peers RooubFcw P
Whatcom County Judicial
4m Md
AI Jensen
4m
as
District Court Judge Position 1
Write-in
Preens Democratic Peg
Nonpartisan Vote For One
U.S. Representative
~
4 Year Term
Congressional District
Write -In
David Grant
4m
of
2 Year Torm Vote For One
State Representative District 42
John Koster
lom Ed
Position 2
vurile-In
P:crers ReNw, ran f'ly
2 Year Term Vote For One
District Court Judge Position 2
Rick Larsen
icra
4M ml
Vincent Buys
Nonpartisan Vote For One
4rmr Term
DemocratLarse p2rty
Prefer. ReWbJun Party
40 Me
Kelli Linville
4m
ME
Matthew Elich
we
Write -In
Pr[4ers FamocrallcPart
Write -In
State of Washington
Partisan Offices
Write -In
State Representative District 39
Whatcom County
Position 1
County Council District 1 Position B
2 Year Term Vote For One
Nonpartisan Vote For One
Dan Kristiansen
~
1 Year Unoxpfred Term
Prefers Republicanft[y
Jean Melious
40
me
Eleanor Walters
4m y
Tony Larson
4m
Rd
Prefers Democratic Party
40 ml I
Write -In
Write -In
State Representative District 39
Position 2
Kirk Pearson 40 of
p:a5ere Republican Party
74 Sample Ballot (cant.)
County Council 75
I City of Bellingham I
Proposition No.1
Transportation Benefit District No.1
Bellingham, Washington
Sales and Use Tax for Transportation
Improvements
The Board of Transportation Benefit
District No. 1, Bellingham, Washington,
adapted Bellingham TBD No.1 Resolution
#2010-1 concerning a sales and use tax to
fund transportation improvements. This
proposition would authorize asales and
use tax of up b a i.^o-Icnlhs of one
percent (0.002) to be collected from all
taxable retail sales within the District in
accordance with RCW 82.14.0455 for a
terra of len years for the purpose of paying
or financing costs of the following
transportation projects identified in the City
of 801ingham Transportation Improvement
Plan (TIP): resurfacing pavement on
arterial streets and bicycle lanes, adding
non -motorized transportation options and
transit service- Should Ihis proposition be
approved?
YES #0 y
NO #E Id
Bellingham School District 501 1
Proposition No.1
Bellingham School District No. 501
Supplemental Education Support Levy
Pursuant to the authority of Chapter 237,
laws of 2010 (SH8 2893}, the Board cf
Directors of Bellingham School District No.
501 adopted Resolution No. 16-10
authorizing a supplemental levy for
education. This proposition authorizes the
District to levy the following tax levies as a
supplement to the levies approved by the
voters in the March 2008 election, on all
taxable property within the District for
education maintenance and operations:
Approximate
Collection LevyRatel$1,000 Levy
Years Assessed Value Amount
2011 $0.23 $2,500,000
2012 $0.23 $2,500,000
Should this proposition be approved?
YES 4 26
NO 4E 94
Whatcom County Fire Protection District 5
Proposition No. 1
Whatcom County Fire District No. 5
Board of Commissioners —
Proposition Authorizing Property
Tax Levy
The Board of Whatcom County Fire
District No. 5 adopted Resolution No.
2010-02, concerning a proposition to
maintain and fund the District's
operations, capital facilities
improvements, and staffing.
This proposition authorizes the District
to set its regular property tax'levy at a
rate not to exceed $.87 per $1,000 of
assessed value to be assessed in 2010
and collected in 2011. The funds will
finance fire protection operations,
replace apparatus and equipment,
provide staffing, and increase
emergency medical service levels. The
maximum allowable levy in 2010 shall
serve as the,base for subsequent levy
limitations as provided by chapter
84.55 RCW.
Should this proposition be:
APPROVED #M y
REJECTED 01 M1
Whatcom County Fire Protection District 11
Whatcom County Fire Protection
District No. 11
Proposition No. 1
Emergency Medical Services (EMS)
Regular Property Tax Levy
Shall Whatcom CountyFife'Protection
District No. 11 be authorized to levy a
regular property tax levy of $.14 cents
per thousand dollars of assessed
valuation for each of the six
consecutive years beginning in 2010,
to begin collection in 2011, for the
provision of Emergency Medical
Services (EMS) as provided in
Whatcom County Fire Protection
District No. 11 Resolution 2010-197
and the Laws of the State of
Washington RCW 84.52.069?
YES 4M R4
NO * y
I Northwest Park and Recreation District 2 1
Northwest Park and Recreation
District 2
Whatcom County, Washington
Proposition No. 1
Parks and Recreation Regular
Property Tax Levy
The Board of Commissioners of
Northwest Park and Recreation District
No. 2 adopted Resolution No. 2010-2
concerning a proposition to assess a
regular property tax levy for a four year
period of $0.10 per $1,000.00 of
assessed valuation, to be collected
each year, to preserve natural areas,
water quality, wildlife habitat, and to
support parks, bike trails and
recreational programs in Blaine and
Birch Bay. Should this Proposition be:
APPROVED #W ty
REJECTED I 04
Whatcom County —County Council District No.1 Position B
Jean Melious
Non -Partisan
grew up on my family's
farm and worked hard.to
put myself through college
and law school. I work
at Western Washington
University, where I teach
the next generation about
_.r land use and natural
resources. I have served
on the Whatcom County
Planning Commission for almost three years, two
of these as Chair, working with people across the
County to plan for.our future. My husband Devon
and,l raised Nate and Claire, our teenagers, here
in Whatcom County. I have a strong stake in this
community, with hope and vision for our future.
I will ensure that we invest in our workforce,
drawing solid businesses to our county and
keeping the ones we have. I will plan for
responsible growth. Whatcom County is
changing; let's male sure that we grow in ways
that reflect our values as a community. I will see
that we use all available means to safeguard our
beautiful and fragile legacy of clean water, clean
air and working farms. It saves everyone money
to keep our water clean and our air healthy for
future generations. I ask for your vote to help
build a responsible future.Thank you.
For more information
People for Jean Melious
PO Box 1518, Bellingham, WA 98227
(360) 714-1459
jeanforcouncil @gmail.com
voteforjean. com
Whatcom County —County Council District No.1 Position B
Tony Larson
Non -Partisan
j I was born in Whatcom
�* County a'nd spent my
summers picking berries
and bucking hay bales.
I graduated Western
Washington University,
earning a degree in
Economics and Finance.
_ I have been the owner/
publisher of Northwest
Business. Monthly magazine for 20 years and
am the former owner of the Bellingham Bells
baseball team.
I am a long-time youth baseball and basketball
coach, a former Big Brother and previous Junior
Achievement volunteer and leadership award
recipient. I have been chairman of the Northwest
Private Industry Council, executive board member
of United Way of Whatcom County and president
of the WWU Alumni Assn.
Our economy is a key driver of our quality of
life. Without a strong and prosperous economy,
families, schools, organizations that support our
most vulnerable neighbors, and our environment
are at risk. Maintaining our quality of life will
require the kind of leadership and experience that
I offer.
As your Council representative, I will promote
job creation; support only those regulations that
work with, not against, our farmers, employers
and families; and focus spending on programs
with clear objectives that create fair and equitable
outcomes for everyone. I want to Get Whatcom
Working.To do it, I need your vote.
For more information
Families forTony Larson
PO Box 1091, Bellingham, WA 98227
(360) 201-2491
votetony @getwhatcom working. com
www.getwhatcomworking.com
These statements are submitted by the candidates and are not checked for grammar, spelling or accuracy by any government agency.
76 Prosecuting Attorney
District Court Judge 77
Whatcom County —Prosecuting Attorney
David S. McEachran
Prefers Republican Party
was first elected to the
office of Whatcom County
' Prosecuting Attorney in
1975, after having served
_r as a deputy prosecutor for -
two and one half years,
r and I ar'n now completing
my ninth term in office.
I am the longest serving
elected prosecutor in the
State of Washington. I am presently directing a
staff of fifty two people including twenty four
attorneys, and I handle an active caseload.
One of the major accomplishments in my past
35 years in office has been the development of a
team approach that combines my office and all of
the law enforcement agencies in this county. With
the ever increasing level of crime and dwindling
resources, a team approach is vital.
Public Utility District
Whatcom County —Public Utility District
Mike Murphy
Non -Partisan
Current Occupation/
Employer: Director of
facilities for the Ferndale
School District
Significant Career
Experience: Currently PUD
Commissioner for the
past 12 years. Volunteer
firefighter for 24 years,
EMT, past Sheriffs advisory
committee and member of the L &.I safety review
board. Also serves on the Washington Public
Utility District association board member as well
as Energy Northwest board member.
Education: Bellingham High School graduate;
SkagitVal.ley College, Management degree.
Family: Married 37 years, 4 children, 3
grandchildren. All residents of Whatcom County.
In addition to the prosecution of criminal cases
also represent Whatcom County and its elected
and appointed officials as legal counsel.
I have been appointed by Governor Gregoire
to the Forensic Investigations Council which
oversees the State Toxicology Laboratory and the
State Crime Laboratory system. I am presently
serving as the chairman of that Council. I have
served as the president of the Washington
State Association of Prosecuting Attorneys, and
a lecturer for the National District Attorneys
Association.
For more information
(360) 734-6405
Candidate Statement: Whatcom County is deeply
rooted in my being. I feel it is my privilege as well
as my obligation to give back and help preserve
the community in which I have lived, worked,
raised a family and hoped to someday retire i'n.
have enjoyed serving my community as a PUD
Commissioner these past 12 years, and look
forward to continuing on this next term.
For -more information
836 W. Smith Rd., Bellingham, WA 98226
(360) 384-6984
Whatcom County —District Court Judge Position No.1
David Grant
Non -Partisan
Judge Grant has served
on -the District Court since
r 2004. With Judge Elich
and court staff, he has
endeavored to make the
court more efficient and
responsive to community
needs. Although
budgetary constraints are
proving challenging, many
innovations have been implemented including:
internet mitigation of traffic tickets, night court,
domestic violence (DV) court, and heightened
probation supervision of DV offenders and those
with mental health issues. His goals as a judge
and for District Court are to continue to serve the
community and enforce the legal rights, of all.
Previously, Judge Grant served for 18 years as
a Deputy Prosecuting Attorney for Whatcom
County prosecuting criminal cases and providing
legal assistance to county departments. He
has written and argued appellate cases before
the Court of Appeals and the State Supreme
Court, and represented the County in land use
matters before the Superior Court, the Growth
Management Hearings Board, and the Energy
Facility Site Evaluation Council.
He has a Bachelor's Degree, University of
Nebraska; a Master's Degree, Michigan State
University, and a Juris Doctorate, University of
Nebraska. He and his wife Linda, a counselor
with St. Joseph Hospital's Employee Assistance
Program, moved to Bellingham in 198E where
they raised their sons.
For more information
reelectjudgegrantCa)hotmail.com
Whatcom County —District Court Judge —Position
Matthew Elich
Non -Partisan
Matt Elich is a fourth
generation Whatcom
-- County resident. He
ti put himself through
college and law school
commercial fishing in
Alaska and Washington.
He graduated with
honors from the
University of Washington
and obtained his law degree from the
University of Puget Sound.
Judge Elich practiced law in Whatcom County for
fifteen years before becoming a judicial officer.
He was city attorney for Blaine and Nooksack and
was a prosecutor for the,City of Bellingham.
He was appointed Whatcom County District Court
Commissioner in 2000. He was elected Judge in
2002, re-elected four years later, and currently
District Cou rt Judge
serves as District Court's most experienced
judicial officer.
Judge Elich is committed to maintaining
independence and impartiality on the bench. A
judicial officer can make but one promise and
that is to uphold the law and that is something
Judge Elich will continue to do as Whatcom
County District Court Judge.
For more information
judgeelich @yahoo.com
These statements are submitted by the candidates and are not checked for grammar, spelling or accuracy by any government agency.
These statements are submitted by the candidates and are not checked for grammar, spelling or accuracy by. any government agency.
78 Ballot Measure - City of Bellingham
Ballot Measure - Bellingham School District No. 501 79
Proposition No_ 1
Transportation Benefit District No. 1
Bellingham, Washington
Sales and Use Tax for Transportation Improvements
The Board of Transportation Benefit District No. 1, Bellingham, Washington, adopted BellinghamTBD No. 1 Resolution 92010-1 -
concerning a sales and use tax to fund transportation improvements. This proposition would authorize a sales and use tax of up to
a two -tenths of one percent (0.002) to be collected from all taxable retail sales within the District in accordance with RCW 82.14.0455
for a term of ten years for the purpose of paying or financing casts of the following transportation projects identified in the City of
BellinghamTransportation Improvement Plan (TIP): resurfacing pavement on arterial streets and bicycle lanes, adding non -motor-
ized transportation options and transit service. Should this proposition be approved?
YES_ NO
Explanatory Statement
Bellingham voters are asked to authorize dedicated funding for transportation needs by increasing the sales and use tax by two -
tenths of one percent (0.002). An increase of 0.002 on $300 of taxable spending amounts to 60 cents.The increase would gener-
ate about $4 million per year for street paving, non -motorized transportation projects and transit.This increase is requested by
theTransportation Benefit District, governed by Bellingham City Council members acting as a separate board of directors.The
boundaries of the district are the same as Bellingham city Iimits.The term of the proposed sales tax increase is 10 years.
Statement For:
Since vehicle excise taxes were eliminated ten years ago, city
transportation projects have competed with, and lost funding
to, other city needs. There has never been funding explicitly
for pedestrian and bicycle improvements.
Dozens of excellent pedestrian and bicycle projects listed in
our neighborhood and city plans for decades may never get'
built. Some projects get done occasionally as part of street
repaving, but street maintenance is now also significantly
underfunded.
The WTA placed a proposition on the ballot last spring to
increase the countywide sales tax for bus service. 65% of City
of Beilingham residents voted "YES;' but the measure was
defeated by county voters. The result is that Sunday services
for Bellingham residents have been discontinued.
The City recently formed aTransportation Benefit District
(TBD) to ask city voters for a sales tax to fund city transporta-
tion projects. Your "YES" vote will give theTBD needed rev-
enue for Bellingham transit, walking, cycling, infrastructure
maintenance and safety projects.
Your "YES" vote will provide resources for long-standing
priority transportation needs in the City of Bellingham. TBD
funds cannot be diverted to other purposes and places.
We ask for your "YES" vote to support balanced transporta-
tion investments.
Rebuttal of Statement Against:
City officials are keenly aware of the economic challenges
facing the City and its citizens. Funding raised preserves
options for many hit the hardest.
The non -motorized list came from our Bellingham Compre-
hensive Plan's full public process. The list is about safety,
health, accessibility, connectivity, equity, quality of life and
sustainability. It's about kids walking or cycling safely to
school, seniors who can't drive, employees getting to work
economically, and a lot more.
Please vote "YES."
Statement Against:
The City should not rush to increase spending through a new
$40 million tax.
As the recession continues, it remains vital that government
live within its means. Spending more now on a non-critica}
wish list is unwise. As families and employers struggle, City
Hall should wait for economic improvement before adding to
Bellingham's financial obligations.
New spending shouldn't be considered until the City sets its
priorities - something that hasn't happened in a decade. A
Capital Needs report is due soon from a citizen's task force.
Another committee may recommend increased spending for
Police. Ambulance service is under pressure. Citizens may
desire another Greenways levy.
Is this new tax a wise investment when weighed against more
important city services? _
Also, millions of dollars could be saved if the unions paid a
fair share for their benefits. The City would save $2,270,000
annually if unions paid the same as average families for
medical benefits. But Union Leadership puts their needs first,
and poor management at City Hall adds to the problem.
There's no need for increased spending and new taxes.
Through prioritizing, we can have a top-notch transportation
system, save jobs and improve our community. '
Please vote "No" on Proposition 1.
Rebuttal of Statement For:
There are more important priorities than spending another
$40 million on projects like the Alabama Hill Overpass.
Our neighbors are struggling, and charging consumers more
at the checkstand during tough times doesn't save jobs. City
Hall should work creatively in partnership with employers to
create new opportunities. We'II be able to fund more trans-
portation projects in the future if we build a stronger econom-
ic base in Bellingham.
Vote NO on Proposition 1.
Statement For prepared by: Committee for theTransportation Benefit District Ballot Proposition
Statement Against prepared by:The Whatcom Information Center Complete text of this measure may be found on page 87
Statements for, statements against and rebuttals are the opinions of the authors and have not been checked for accuracy by any government agency.
Proposition No. 1
Bellingham School District No. 501
Supplemental Education Support Levy
Pursuant to the authority of Chapter 237, laws of 2010 (SHB 2893), the Board of Directors of Bellingham School District No. 501
adopted Resolution No. 16-10 authorizing a supplemental levy for education.This proposition authorizes the District to levy the fol-
lowing tax levies as a supplement to the levies approved by the voters in the March 2008 election, on all taxable property within the
District for education maintenance and operations:
Approximate
Collection Levy Rate/$1,000
Years Assessed Value
Should this proposition be approved?
Explanatory Statement
2011 $ 0.23
2012 $ 0.23
YES NO
Levy
Amount
2,500.900
2,500.000
The State Legislature, through Chapter 237, laws of 2010 (SHB 2893) has authorized a supplemental levy for education main-
tenance and operations, expanding the District's levy authority by four percent.The Board of Directors of Bellingham School
District No. 501 has passed a resolution requesting Supplemental Levies (in addition to and not in replacement of the levies
authorized by the voters in March 2008).The amounts proposed to be levied are:
A. $2,500,000 in 2010 for collection in 2011; and
B. $2,500,000 in 2011 for collection in 2012.
The estimated levy rate for each year is $0.23 per thousand dollars' of assessed value.
Statement For:
During the last two years, Bellingham Public Schools have ex-
perienced some of the most severe funding reductions in his-
tory.The district has used a thorough, inclusive and transpar-
ent process to responsibly reduce expenses by approximately
$6 mill ion. The focus has been to preserve the commitment to
high quality instruction and keep class size small.The district
eliminated administrative positions, aggressively implement-
ed energy and environmental conservation measures, elimi-
nated support positions, and cut many school programs.
With Washington state facing a $50 million revenue shortfall
this year and another $3 billion in the next two years, addi-
tional funding reductions for our schools are a near certainty.'
The Legislature recognized this with a new law that allows
districts to ask local communities for temporary additional
funding. If voters approve, Bellingham Public Schools will use
these funds to protect child ren's learning as much as pos-
sible from further state budget cuts, help maintain current
class size averages - especially in kindergarten and primary
grades - and potentially, if the state's economic outlook im-
proves, restore some previously eliminated or reduced school
programs. We strongly encourage you to vote yes on this
temporary supplemental levy in support of our Bellingham
Public Schools.
For tax impact and more'information:
www.bellinghamlevy.org
Rebuttal of Statement Against:
No Statement Submitted
Statement For prepared by: Citizens for Bellingham Public Schools
Statement Against:
No Statement Submitted
Rebuttal of Statement For:
No Statement Submitted
Complete text of this measure may be found on page 88
Statements for, statements against, and rebuttals are the opinions of the authors and have not been checked for accuracy by any government agency.
r
$Q Ballot Measure - Fire District No. 5
Proposition No. 1 11
Whatcom County Fire District No. 5
Board of Commissioners - Proposition Authorizing Property Tax Levy
The Board of Whatcom County Fire District No. 5 adopted Resolution No. 2010-02, concerning a proposition to maintain and fund
the District's operations, capital facilities improvements, and staffing.
This proposition authorizes the District to set its regular property tax levy at a rate not to exceed $.87 per $1,000 of assessed value
to be assessed in 2010 and collected in 2011. The funds will finance fire protection operations, replace apparatus and equipment,
provide staffing, and increase emergency medical service levels. The maximum allowable levy in 2010 shall serve as the base for
subsequent levy limitations as provided by chapter 84.55 RCW. Should this proposition be:
Approved Rejected
Explanatory Statement
The Board of District No. 5 adopted Resolution No. 2010-02, a proposition to maintain and fund the District's operations, capi-
tal facilities improvements, and staffing.This proposition authorizes the District to set its regular property tax levy at a rate not
to exceed $.87 per $1,000 of assessed value to be assessed in 2010 and collected in 2011.The funds will finance fire protection
operations, replace apparatus and equipment, provide staffing, and increase emergency medical service Ievels.The maximum
allowable levy in 2010 shall serve as the base for subsequent levy limitations as provided by chapter 84.55 RCW.
Statement For:
Whatcom County Fire District No. 5 is funded through a
property tax levy based upon the valuation of properties in
Point Roberts. Currently, the rate is $0.46856 per $1,000 in
valuation. In years past, this revenue was supplemented by
operating a Bingo game. Now Bingo is gone; long gone. And
the current level of funding leaves the brave and hardworking
members of our Fire Department without the tools to achieve
their mission. A mission of enormous importance when
it comes to fire protection and prevention and emergency
medical response provided to you and your neighbors. So,
District No. 5 asks that you approve the proposition on this
November's ballot that the property levy be reset to $0.87.
(For example, if your property is assessed for $100,000, the
increase will amount to less than $3.35 a month.) How will
the money be spent? Specifically, the District has identified
three key programs that will be funded by the levy. The first is
the replacement of fire vehicles and equipment. The second
involves recruitment and retention of trained, firefighters and
medical personnel. And lastly, funds raised will be used to
maintain, and improve the facilities. Be safe. Please vote yes
on Proposition No. 1.
Rebuttal of Statement Against:
No Statement Submitted
Statement For prepared by: Friends of the Firefighters
Statement Against:
No Statement Submitted
Rebuttal of Statement For:
No Statement Submitted
Complete text of this measure may be found on page 89
10 Ballot Measure - Fire Protection District No. 11 $�
k
Whatcom County Fire Protection District No. 11
Proposition No. 1
{ Emergency Medical Services (EMS) Regular Property Tax Levy
Shall Whatcom County Fire Protection District No. 11 be authorized to levy a regular property tax levy of $.14 cents per thousand
dollars of assessed valuation for each of the six consecutive years beginning in 2010, to begin collection in 2011, for the provision of
Emergency Medical Services (EMS) as provided in Whatcom County Fire Protection District No. 11 Resolution 2010-197 and the Laws
of the State of Washington RCW 84.52.069?
YES NO
Explanatory Statement
Whatcom Fire District 11 provides emergency medical care services, including personnel, training, equipment, supplies, ve-
hicles, structures, and insurance needed for the provision of such services. In order to produce revenue to pay the cost of
providing these services, the Board of Commissioners of District 11 has passed Resolution 2010-197 under the authority of RCW
84.52,069, submitting to voters a levy of a regular property tax, in the sum of $0.14 per $1,000.00 of assessed valuation each
year for six consecutive years, beginning in 2010, to begin collection in 2011, for maintenance and operations of emergency
medical care services.
Statement For:
No Statement Submitted
Rebuttal of Statement Against:
No Statement Submitted
Statement Against:
No Statement Submitted
Rebuttal of Statement For:
No Statement Submitted
Complete text of this measure may be found on page 90
Statements for, statements against, and rebuttals are the opinions of the authors and have not been checked for accuracy by any government agency.
Statements for, statements against and rebuttals are the opinions of the authors and have not been checked for accuracy by any government agency.
r-
�: $2 Ballot Measure - Northwest Park and Recreation District 2
Northwest Park and Recreation District 2
Whatcom County, Washington
Proposition No. 1
Parks and Recreation Regular Property Tax Levy
The Board of Commissioners of Northwest Park and Recreation District No. 2 adopted resolution No. 2010-2 concerning a proposi-
tion to assess a regular property tax levy for a four year period of $0.10 per $1,000.00 of assessed valuation, to be collected each
year, to preserve natural areas, water quality, wildlife habitat, and to support parks, bike trails and recreational programs in Blaine
and Birch Bay. Should this Proposition be:
Approved _ Rejected
Explanatory Statement
Northwest Park and Recreation District 2 provides services to acquire and preserve natural areas, wildlife habitat, water quality,
parks, sports fields, bike trails, and recreational programs. Expenditure of revenues is necessary for acquisition, operation, and
maintenance of those sites, facilities, and programs.
The Board of Commissioners of District 2 adopted Resolution No. 2010-2 to assess a regular property tax levy for four years at
$0.10 per $1,000.00 of assessed valuation, per year, to fund acquisition, operation, and maintenance of those sites, facilities,
and programs.
Statement For:
NW Park and Recreation District 2 was re-established in 2007,
serving the area for 3 years on a 2 year operation levy. With
these funds the District has:
• Initiated a wide variety of programs and activities for the
entire community.
• Collaborated with Whatcom County Parks to install a
playground and take over operation of gym and make
gym improvements at Bay Horizon Park.
• Partnered with the City of Blaine for the Portal WayTrail
project, the Marine Park birding shelters, Hughes Bay -
view Park and the Dakota Creek kayak launch.
• Invested in the community through BlaineYouth Baseball,
Boys and Girls Club, the Senior Center and the Commu-
nity Sailing Program.
To maintain service to the community continued funding is
necessary. Future projects include:
• establishing a trail system linking Blaine to Birch Bay
• continuing improvements to Bay Horizon Park
• the development of sports fields.
Please join us in the on -going support of NW Park and Recre-
ation District 2. www.nwparkandrec.org
Rebuttal of Statement Against:
No Statement Submitted
Statement For prepared by: Kathy Berg, Marsha Hawkins, Kathleen M. Stauffer
Statement Against:
No Statement Submitted
Rebuttal of Statement For:
No Statement Submitted
Complete text of this measure may be found on page 91
Statements for, statements against and rebuttals are the opinions of the authors and have not been checked for accuracy by any government agency.
Returning Your Ballot
By Dail
Your ballot will count if your envelope is postmarked by Election Day, November 2, 2010. 1 st Class postage is
required. If you do not wish to return your ballot by mail, the following ballot drop box locations will be available.
Ballot Drop Box Locations Open 20 Days Prior To Election Day
Whatcom County Auditor's Office
Whatcom County Courthouse
311 Grand Ave., Suite 103
Bellingham, WA
Courthouse Drive -Up Ballot Drop Box
South Courthouse Parking Lot
Enter from Grand Avenue
Bellingham, WA
Hours: Monday — Friday
8:30 a.m. to 4:30 p.m.
Election Day Only: 7:00 a.m. to 8:00 p.m.
Hours: 7 days a week
24 hours a day
Election Day: Closes at 8:00 p.m.
Election Day Only - Ballot Drop Box Locations
Drop Box Hours: 7:00 a.m. — 8:00 p.m.
Blaine City Hall............................................................. 344 H Street, Blaine, WA
Deming Library............................................................5044 Mt. Baker Hwy.,
Deming, WA
Everson Library............................................................ 104 Kirsch Dr., Everson, WA
Ferndale Library........................................................... 2222 Main St., Ferndale, WA
Laurel Fire Station....................................................... 6028 Guide Meridian,
Bellingham, WA
Lynden Library........................................................:.... 216 4th St., Lynden, WA
Western Washington University ................................. Viking Union, Room 714, Bellingham, WA
If You Have Not Received Your Ballot
If you have not received your ballot by October 20, 2010, please contact the Whatcom County Elections
Division at (360) 676-6742 orTTY (360) 738-4555, Monday through Friday, 8:30 a.m. to 4:30 p.m.
Washington State Law Prohibits Ballots Deposited
After 8:00 p.m. on Election Day From Being Counted.
Accessible Voting Unit
What is an Accessible Voting Unit?
An accessible voting unit (AVU) is federally
required. It is equipped with visual and audio
technology that allows voters with impaired vision
and/or physical disabilities to vote a secret ballot.
The AVU is an accurate and secure way to vote.
Where will the AVU be located?
The AVU will be located at the Whatcom County
Auditor's Office, Whatcom County Courthouse,
311 Grand Ave., Suite 103, Bellingham, WA.
When can I vote using the AVU?
You may vote beginning Wednesday, October
13, 2010.The AVU will be available to vote i-n the
Auditor's Office Mon. - Fri., 10:00 a.m. - 3:00 p.m.
The AVU will be available on Election Day,Tuesday,
November 2, 2010, from 7:00 a.m. - 8:00 p.m.
Is the AVU secure?
Yes.The AVU stands alone and is not connected
to the Internet or an intranet. When a vote is cast
the ballot selections are encrypted and stored
within the voting unit.The ballot order is scrambled
to ensure the voter's anonymity and leaves no
connection between the voter and his or her
recorded vote.
How can I be sure any vote will be counted?
The AVU displays a paper record of your selections before you cast your ballot.Your secret ballot
is electronically stored and it cannot be traced back to you.
- _ 8dX
Voter Information
How Can I Register?
A citizen may register to vote by: (1) completing
the registration form online at www.vote.wa.gov
only if you have a Washington State Driver's
License or a Washington State I.D. card; (2)
completing the Mail -In Voter Registration Form
and mailing it to your county of residence, or (3)
by completing the farm in person at the Whatcom
County Auditor's Office, Elections Division.
Last Day to Register to Mote
Citizens may register to vote at any time.
However, the registration must be postmarked
or received at least 29 days before an election in
order to vote in that election.
A citizen that is not currently registered to vote in
the State of Washington may register in person
at the Auditor's Office, Elections Division up to 8
days before an election.
If Your Flailing orResidence
Address Has Changed:
Now that you have a new mailing address and/or
new residential address, your voter record needs
to be updated. Updating your record is easy!
Address Change Within Whatcom County:
Choose one of the following options:
® Online at www.vote.wa.gov and click on the
"My Vote" logo
• Call the Elections Division at the Auditor's
Office at (360) 676-6742
orTTY (360) 738-4555
E-mail the Auditor's Office at:
elections@co.whatcom.wa.us
• Complete and mail a new voter
registration form
Address Change Outside Whatcom County:
Choose one of the following options:
• Online at www.vote.wa.gov and click on the
Online Voter Registration' logo
• Complete and mail a new voter
registration form
A new voter registration card will be mailed after
your address,change is processed.
Name Change
If your name has changed, complete a new
registration form. Information indicating the
former name, address, and signature plus the
new name and signature must be provided.
When to Cancel Registrations
• If you have moved out of Whatcom County,
your signature is required to cancel your
voter registration.
® If a family member has passed away, contact
the Elections Division and a form will be
mailed for you to complete.
Questions?
If you have questions, please feel free to call
the Whatcom County Auditor's Office, Elections
Division at (360) 676-6742 orTTY (360) 738-4555,
Monday through Friday, 8:30 a.m. - 4:30 p.m. or
e-mail the Auditor's Office at:
elections@co.whatcom.wa.us
Special Notices
M�e
Message to Voters
Ballots are scheduled to be mailed starting October 13, 2010.
If you have not received your ballot by October 20, please
contact the Whatcom County Auditor's Office, Elections Division,
at (360) 676-6742 orTTY (360) 738-4555, Monday through
Friday, 8:30 a.m. to 4:30 p.m. or e-mail the Auditor's Office at:
elections@co.whatcom.wa.us
Online Voters' Pamphlet
To view the Voters' Pamphlet online go to:
wei.secstate.wa.gov/whatcom
Confirm Your Ballot Has Been Received
To find out if your ballot has been received by the Whatcom
County Auditor's Office go to:
wei.secstate.wa.gov/whatcom
Reminder
Remember that your ballot needs to be postmarked no later
than November 2, Election Day. Make sure you know the
last pick-up time of the mailbox or the post office; ballots
deposited after that time on Election Day are postmarked the
next day and by law cannot be counted.
Mail your ballot early!
Complete Text
BELLINGHAM TBD NO.1 RESOLUTION #2010-1
A RESOLUTION OFTHE BOARD OFTRANSPORTATION BENEFIT DISTRICT
NO. 1, BELLINGHAM, WASHINGTON, PROVIDING FOR A BALLOT
PROPOSMIONTo BE S USM I TTEDTO TH E QUALIFIED ELECTORS OF THE
DISTRICT ON NOVEMBER 2, 2010TO IMPOSE UPTO ATWO-TENTHS OF ONE
PERCENT (0,002) SALES AND USE TAX WiTHINTHE DISTRICT FOR A PERIOD
OFTENYEARSTO FUND SPECIFIEDTRANSPORTATION IMPROVEMENTS.
WHEREAS, the City of Bellingham (the "City") approved Ordinance No. 2010-
D7- 040 on July 12, 2010, establishing Transportation Benefit District No. 1 (the
"District") pursuant to chapter 36.73 RCW; and
WHEREAS, the City's six -year (2011-2016y7ranspon'"on Improvement
Program("71P"� identifies projects that constitute transportation
improvements that may ba funded by the District, including Project#1
entitled "Annual Arterial Pavement Resurfacing Program; Project #18 entitled
"Non -Motorized Transportation pptions'; and Project #17 entitled "Transit
Enhancement Options; (collectively the "TBD Projects"l; and
WHEREAS. on June 21, 2010, the City conducted a public hearing in
accordance with RCW 36.73.050, after giving proper notice describing the
TBD Projects and activities to be funded by the District, and
WHEREAS, with voter approval, the District may impose a sales and use
tax upon the occurrence of any taxable event within the boundaries of the
District to fund transportation improvements; and
WHEREAS, the governingg board of the District (the "Board") now desires to
fund and implement theTBD Projects, through the imposition by the District
of up to a two -tenths of one percent (0.002) sales and use tax in accordance
with RCW 82,14.D455, consistent with Chapter 36.73 RCW, upon voter
approval thereof; and
WHEREAS, it is the intent of the Board to allocate funds from the voter
approved sales and use tax in a manner that generally balances the use of
the funds equitably among the three project categories identified above
during the ten 110) year period of the levy; and
WHEREAS, Project #1, Annual Arterial Pavement Resurfacing is a
transportation improve mant project of significance to the City; resurfacing'
of arterial streets on an ongoing basis will optimize the lifecycle of the City's
existing infrastructure. Given the reduction in the current funding level
available for street resurfacing projects, there is a need for the additional
revenue source, provided by this voter approved sales and use tax to
maintain the City's infrastructure; and
WHEREAS, Project #16 Non•MotorizedTransportation Options responds to
an impone nt.goaI in the City's Comprehensive Plan, to facilitate a mode shift
to more non -motorized transportation facilities, and this voter approved
sales and use will provide needed funding for alternate infrastructure like
sidewalk connections, flashing crosswalks, and bike facilities, and
WHEREAS, projects related to public transportation are included In the
definition of a transportation improvement project pursuant to RCW
36,73.015 (3), and are eligibleTransportation Benefit District projects; and
WHEREAS, Project #17 "Transit Enhancement Projects" has been identified
as a public transportation project intended to be funded by imposition of the
sales and use tax; and
WHEREAS, in the event a future Whatcom Transit Authority ballot measure
is approved by voters, the Board intends to consider imposing less than
the authorized two tenths of one percent (0.002) of the sales and use tax
approved by voters in this ballot measure; and
NOWTHEREFORE,THE BOARD OFTRANSPORTATION BENEFIT
DISTRICT NO. 1, BELLINGHAM, WASHINGTON, HEREBY RESOLVES
AS FOLLOWS.
Section 1. Findings: Daggrjgti,pn of t!leTBD Proiects
The Board hereby finds that the best interests of the inhabitants of the
District require the District to impose a sales and use tax up to two -tenths
of one percent (0,002) pursuant to RCW 36-73.040i3)(a) and RCW 82.14.0455
for the purpose of providing a portion of the funds necessary to finance the
TBD Projects.
TheTBD Projects consist of the following transportation improvement
projects described in the City's six -year (2011-2016)Transportation
Improvement Program, which descriptions are incorporated herein:
• Project #1 entitled 'Annual Arterial Pavement Resurfacing Program,'
• Project#16 entitled "Non -Motorized Transportation Options', and
• Project #17 entitled "Transit Enhancement Options"
The cost of all necessary design, engineering, financial, legal and other
consulting services, inspection and testing, administrative and relocation
expenses and other costs incurred in connection with the foregoing TBD
Projects shall be deemed a part of the costs of theTBD Projects.
The Board shall determine the application of moneys available for theTBD
Projects so as to accomplish, as nearly as may be, all of theTBD Projects. In
the event that the proceeds of sales and. use taxes authorized herein, plus
any other money of the District legally available therefore, are insufficient to
accomplish all of theTBD Projects, the Board shall use the available funds for
paying the cost of those portions of theTBO Projects deemed by the Board
most necessary and in the best interest of the District.
The Board shall determine the exact locations and specifications -for the
elements of theTBD Projects as well as the timing, order and manner of
Ballot Measure Complete Text 87
implementing or completing theTBD Projects. The Board may alter, make
substitutions to and amend theTBD Project descriptions as it determines is
in the best interests of the District consistent with the general descriptions
provided above and in accordance with the material change policy adapted
y the Board and tha notice, hearing and other procedures described 1n
chapter 36,73 RCW, including RCW 36.73.050(2)(b), in each case as the same
may be amended From time to time.
If the Board shall determine that it has become impractical to acquire,
construct, a implement all or any portion of theTBD Projects by reason
of changed conditions, fnpompatible development, costs substantially
in excess of the amount of sales and use tax proceeds estimated to be
available, or acquisition by a superior governmental authority, the Board
shall not be required to acquire, construct, or implement such portions. If
a I I of theTBD projects have been acquired, constructed, Implemented or
duly provided for, or found to be impractical, the Board may apply the sales
and use tax proceeds (including earnings thereon) or any portion thereof
to other transportation improvements then identified in the City's six -year
transportation improvement program in accordance with the material change
policy adopted by the Board and the notice, hearing and other procedures
described in chapter 36.73 RCW, including RCW 36.73.0511(2)(b), in each case
as the same may be amended from time to time.
In the event that voters approve a future sales and use tax increase proposed
by the Whatcom Transit Authority to fund public transportation, the Board
shall determine whether to reduce the amount of sales and use tax collected
For funding of public transportation projects in theTransportation Benefit
District.
Section 2. Proposition.
It is hereby found and declared that the best interests of the District require
the submission to the qualified electors of the District of the proposition
whether tha District shall impose a sales and use tax within the limitations
established in RCW 82.14.0455 for their ratification or rejection at a special
election to be held on November 2, 2010. For the. purpose of providing funds
necessary to pay or finance costs of theTBD Projects, the Whatcom County
Auditor, as ex off icio supervisor of elections in Whatcom County, Washington,
is hereby requested to call and conduct such special election to be held
within the District on such day and to submit to the qualified electors ofthe
District for their approval or rejection, a propositlon to impose a sales and
use tax up to the amount of two -tenths of one percent (0.002} of the selling
price in the case of a sales tax, or value of the article used, in the case of the
use tax. The tax is in addition to any other taxes authorized by law and shall
be collected from those persons who are taxable by the state under chapters
82:08 and 82.12 RCW upon the occurrence of any taxable event within the
boundaries of the District, for a period of ten years.
Upon approval of the voters of the proposition hereinafter set forth, the
District may use proceeds of such sales and use tax for the purpose of paying
or financing costs of theTBD Projects in accordance with the requirements
of chapter 36.73 RCW. The Secretary of the Board is hereby authorized and
directed to certify said proposition to said official in the following form:
TRANSPORTATION BENEFIT DISTRICT NO. 1
BELLINGHAM, WASHINGTON
SALES AND USE TAX FOR
TRANSPORTATION IMPROVEMENTS
The Board of Tra n spo rta ti on Benefit District No, 1, 13elIingham, Washington,
adoptad Resolution No. 2010-_07-040_concern ing a soIas and use tax to
fund transportation improvements. This proposition would authorize a
sales and use tax of up to two tenths of one percent 10.002) to be cotleoted
from all taxable retail sales within the District in a cco rda nce. wi th RCW
82.14.0455 for a term of ten years for the purpose of paying or financing
costs of the following transportation improvement projects identified in the
City of BellinghamTransportation Improvement Program (TIP): resurfacing
pavement on arterial streets and bicycle lanes, adding non -motorized
transportation options and transit service. Should this proposition be
approved?
Yes?..... ❑
No?...... ❑
Section 3. Corrections.
The Secretary of,the District is authorized to make necessary clerical
corrections to this resolution including, but not limited to, the correction
of scriveners or clerical errors, references, resolution numbering, section/
subsection numbers and any references thereto.
Section 4. Severability.
If any section, sentence, clause or phrase of this resolution should be held
to be invalid or unconstitutional by a court of competent jurisdiction, such
invalidity or unconstitutionality shall not affect the validity or constitutionality
of any other section, sentence, clause or phrase of this resolution.
PASSED by the Board ofTransportation Benefit District No. 1,
Bellingham, Washington, at a regular open public meeting thereof held this
9th day of August, 2010.
TRANSPORTATION BENEFIT DISTRICT NO. 1, BELLINGHAM,
WASHINGTON. Gene Knutson, Chair. ATTEST: John R. Carter, Secretary/
Treasurer. APPROVED ASTO FORM: Joan Hoisington. CERTIFY: John R.
Carter, Secretary.
$$ Ballot Measure CompleteText
Ballot Measure CompleteText 89
Complete Text
RESOLUTION NO.16-10
A RESOLUTION of the Board of Directors of Bellingham
School District No. 501, Whatcom County, Washington,
providing for the submission to the qualified electors of the
District at a special election to be held therein on November
2, 2010, of the proposition of whether supplemental levies
should be made to pay for necessary educational support
and operations of the District.
WHEREAS, Bellingham School District No. 501, Whatcom
County, Washington (the "District"), pursuant to Resolution
No. 20-07, submitted a levy proposition to its voters at a
special election held on March 11, 2008, enable the District
to support its educational programs and services, including
teaching, school supplies, technology, athletics, buildings
and transportation; and
WHEREAS, the levy proposition was approved by the
voters; and
WHEREAS, the Washington State Legislature enacted
Chapter 237, Laws of 2010 (Regular Session) (SHB 2893)
which declared an emergency and expanded the District's
levy authority by four percent; and
WHEREAS, Chapter 237 specifically permits the District
to seek approval from its voters in order to collect the
permitted additional levies (the "Supplemental Levies") for
collection in the years 2011 and 2012; and
WHEREAS, the Supplemental Levies will be
supplemental to and not in replacement of the levies
authorized by the voters in the March 2008 election; and
WHEREAS, in order to properly provide for maintenance
and operations and the educational needs as authorized
by Chapter 237 enacted in the 2010 Legislative Session, the
Board of Directors of the District deems it necessary to levy
the following additional taxes (Supplemental Levies) upon
all of the taxable property within the District in excess of
the maximum annual tax levy permitted by law to be levied
within the District without a vote of the electors:
A. A tax of approximately $0.23 per thousand dollars of
assessed valuation to provide $2,500,000, said levy to be
made in 2010 for collection in 2011;
B. A tax of approximately $0.23 per thousand dollars of
assessed valuation to provide $2,500,000, said levy to be
made in 2011 for collection in 2012; and
WHEREAS, the Constitution and laws of the State of
Washington require that the question of whether or not
such excess taxes may be levied must be submitted to
the qualified electors of the District for their ratification or
rejection;
NOW,THEREFORE, BE IT RESOLVED BYTHE BOARD OF
DIRECTORS OF BELLINGHAM SCHOOL DISTRICT NO. 501,
WHATCOM COUNTY, WASHINGTON, as follows:
Section 1. The following additional taxes, as
Supplemental Levies (in addition to and not in replacement
of the levies authorized by the voters in the March 2008
election) for the District's General Fund should be levied
upon all of the taxable property within the District in excess
of the maximum annual tax levy permitted by law to be
levied within the District without a vote of the electors:
A. $2,500,000, said levy to be made in 2010 for collection in
2011; and
B. $2,500,000, said levy to be made in 2011 for collection in
2012.
The estimated levy rate depends upon the final dollar
amount of assessed value of the property within the
District. At this time, based upon information provided
by the Whatcom County Assessor's office, the estimated
levy rate for the 2010 levy is $0.23 per thousand dollars of
assessed valuation and the estimated levy rate for the 2011
levy is $0.23 per thousand dollars of assessed valuation.
The exact levy rate shall be adjusted based upon the actual
assessed value of the property within the District at the time
of the levy. Upon approval by the voters of the proposition
substantially in the form set forth below, the District may use
the proceeds of said levies during the 2010-2011, 2011-2012
and 2012-2013 school years by incurring an indebtedness by
the issuance of short term obligations against the General
Fund of the District, as authorized by Chapter 39.50 RCW, and
may expend the proceeds of said levies to pay such part of
the general expenses of maintenance and operations of the
District during such school years as may be authorized or
allowed by law for the use of excess levy funds.
Section 2. It is hereby found and declared that the
best interests of the District require the submission to
the qualified electors of the District of the proposition of
whether or not the District shall levy such excess tax for their
ratification or rejection at a special election to be held therein
on November 2, 2010.
The Whatcom County Auditor, as ex officio supervisor
of elections in Whatcom County, Washington, is hereby
requested to call and conduct said special election to be
held by all mail -in ballot, within the District on said date
and to submit to the qualified electors of the District the
proposition (Proposition No. 1) substantially in the form
hereinafter set forth. The Secretary of the Board of Directors
is hereby authorized and directed to certify said proposition
substantially in the following form:
PROPOSITION NO. 1
BELLINGHAM SCHOOL DISTRICT NO. 501
SUPPLEMENTAL EDUCATION SUPPORT LEVY
Given the Washington State Legislature enacted Chapter 237,
laws of 2010
(SHB 2893) which declared an emergency and expanded
the District's levy authority by four percent, the Board of
Directors of Bellingham School District No. 501 adopted
Resolution No. 16-10 authorizing a supplemental levy
for education. This proposition authorizes the District to
levy the following tax levies as a supplement to the levies
approved by the voters in the March 2008 election, on all
taxable property within the District for education support and
operations:
Approximate
Collection Levy Rate/$1,000 Levy
Years Assessed Value Amount
2011
2012
023 5 2,500.000
023 S 2,500.000
Should this proposition be approved?
YES..... ❑
NO...... ❑
The Secretary of the Board of Directors of the District is
hereby directed to deliver a certified copy of this resolution
to the Whatcom County Auditor.
ADOPTED by the Board of Directors of Bellingham School
District No. 501, Whatcom County, Washington, at a special
meeting thereof, held on the 3rd day of August, 2010.
Kenneth B. Gass, President and Director; Kelly M. Bashaw,
Director; Steven H. Smith, Director; John Scott Stockburger,
Director. ATTEST & CERTIFICATION: Greg Baker
Complete Text
WHATCOM COUNTY FIRE DISTRICT NO.5
RESOLUTION NO.2010-02
RESOLUTION PROVIDING FORTHE SUBMISSION OF LEVY
A RESOLUTION OFTHE BOARD OF COMMISSIONERS OF
WHATCOM COUNTY FIRE DISTRICT NO. 5 PROVIDING FOR
THE SUBMISSIONTOTHE QUALIFIED ELECTORS OFTHE
DISTRICT ATTHE GENERAL ELECTION ON NOVEMBER
2, 2010, OF A PROPOSITION AUTHORIZING A LEVY OF A
PROPERTYTAX NOTTO EXCEED $.87 PER $1,000.00 OFTRUE
AND ASSESSED VALUATION SUBJECTTO OTHERWISE
APPLICABLE STATUTORY LIMITATIONS.
Background: WHEREAS, it is the judgment of the Board
of Commissioners of the District that it is essential and
necessary for the protection of the health and life of the
residents of the District that fire and emergency medical
services be provided by the District. Such services
necessitate the expenditure of revenues for station
construction, maintenance, operations, equipment and
personnel in excess of those which can be provided by
the District's regular tax revenue levied at the current rate
of $.46656 per $1,000,00 of assessed valuation of taxable
property within the District.
WHEREASThe Board of Commissioners has determined that
the loss of its Bingo revenues combined with the accelerated
demands for, and increasing costs of providing services
will necessitate the expenditure of revenues for improved
capital facilities, additional staffing, equipment, apparatus,
maintenance and operations in excess of those which can be
provided by the District's reggular tax revenue levied at the
current rate of $.46856 per $1,000.00 of assessed valuation
of taxable property within the District as limited by the 101%
limitation and the lid lift will allow the District to rebuild its
reserves.
WHEREASThe Board of Commissioners has determined
that the additional funds generated by the S.40 levy rate
increase will be allocated 37% toward capital improvements,
37%toward increasing staffing and 26% toward general
improvements in the level of service provided by the District.
Resolution: NOW, THERE FORE BE IT RESOLVED by the
Board of Commissioners of Whatcom County Fire District No.
5, Whatcom County, Washington as follows:
Section 1. In order to increase the level of fire protection,
prevention emergency medical services and the protection
of fife and property in the District, it is necessary for the
District to operate and maintain emergency fire and medical
service vehicles, to acquire and improve station and other
capital facilities and to be retain properly trained personnel
equipped with proper fire fighting and emergency medical
equipment.
Section 2. in order to provide the revenue adequate to pay
the costs of providing adequate fire protection, prevention,
and emergency medical services and facilities as described
in Section 1 and to assure the continuation and improvement
of such services, the District shall, in accordance with RCW
84.55.050, remove the limitation on regular property taxes
imposed by RCW 84.55.010, and levy beginning it) 2010 and
collect beginning in 2011, pursuant to RCW 52.16.130 and
RCW 52.16.140, a general tax on taxable property within the
District at a rate of $.87 per $1,000.00 of assessed valuation
subject to otherwise applicable statutory limits.
Section 3.The amount levied in 2010 shall serve as the
District's tax levy base for purposes of applying the limit
factor established by RCW 84.55.010 in subsequent years.
Section 4. There shall be submitted to the qualified
electors of the District for their ratification or rejection, at
the general election on November 2, 2010, the question of
whether or not the regular property tax levy of the District
should be established at $.87 per $1,000.00 of true and
assessed valuation, subject to otherwise applicable statutory
limitations. The Board of Commissioners hereby requests
the auditor of Whatcom County, as ex -off icic Supervisor of
Elections, to call such election, and to submit the following
proposition at such election, in the form of a ballot title
substantially as follows:
Whatcom County Fire District No. 5 - Board of
Commissioners — Proposition Authorizing Property Tax Levy.
The Board of Whatcom County Fire District No. 5 adopted
Resolution No. 2010-02, concerning a proposition to maintain
and adequately fund the District's operations and to improve
the District's ability to adequately fund capital facilities
improvements and staffing.
This proposition authorizes the District to set its regular
property tax levy at a rate not to exceed S.87 per $1,000 of
assessed value to be assessed in 2010 and collected in 2011.
The funds will finance improved fire protection operations,
replace apparatus and equipment, provide staffing and
increase emergency medical service Ievels.The maximum
allowable levy in 2010 shall serve as the base for subsequent
levy limitations as provided by chapter 84.55 RCW.
Should this proposition be:
Approved .... ❑
Rejected ...... ❑
Adoption: ADOPTED by the Board of Commissioners of
Whatcom County Fire District No. 5, Whatcom County,
Washington, at a Regular Open Public Meeting of such Board
on the 14th day of April 2010, the following Commissioners
being present and voting: William H. Meursing,
Commissioner; David Gellatly, Commissioner; Susan
Brownrigg, Commissioner; Michelle Starrs, Secretary.
90 Ballot Measure Complete Text
Ballot Measure Complete Text 91
Complete Text
Resolution No. 2010 -197
A RESOLUTION TO ADOPTING AN EMERGENCY
MEDICAL SERVICES REGULAR LEVY:
A RESOLUTON of the Board of Commissioners of
Whatcom County Fire Protection District No. 11,
providing for the submission to the qualified electors of
the district at an election to be held within the district on
November 2, 2010, of a proposition authorizing the levy
of a regular property tax, in the sum of $ .14 cents per
$1,000.00 assessed valuation each year for six consecutive
years, beginning in 2010, to begin collection in 2011 for
the provision of emergency medical services as provided
in Whatcom County Fire Protection District No- 11
Resolution # 2010 - 197 and the laws of the State of
Washington RCW 84.52.069
WHEREAS, it is the judgment of the Board of
Commissioners of the district that it is essential and
necessary for the protection of the health and life of the
residents of the District that the emergency medical services
enumerated in this resolution be provided by the district.
Such services will necessitate the expenditure of revenues
for maintenance, operations, and equipment.
NOWTHEREFORE, BE IT RESOLVEDTHATTHE BOARD
OF FIRE COMMISSIONERS OF WHATCOM COUNTY
FIRE PROTECTION DISTRICT NO. 11, Whatcom County,
Washington as follows:
Section 1. That the district shall provide emergency
medical care or emergency medical services, including
related personnel cost, training for such personnel, and
related equipment, supplies, vehicles, structures, and
insurance needed for the provision of emergency medical
services.
Section 2. In order to produce revenue adequate to
pay the cost of the providing of the life protection services
as described in Section 1 of this resolution and to maintain
reserve funds sufficient to assure the continuation of such
services, the district shall levy for six (6) consecutive years
beginning in 2010 and collected in 2011, a general tax
on taxable property within the district, maintenance and
operation cost in the amount of $ .14 cents per $1,000.00
dollars of assessed valuation.
Section 3. This shall be submitted to the qualified
electors of the District for their ratification or rejection, at
an election to be held on November 2, 2010, the question of
whether or not such levy for maintenance and operations
shall be made.
ADOPTED this 13th day of July, 2010 at the regular monthly
meeting of the Whatcom County Fire District #11 Board
of Fire Commissioners. By: Wendell Terry, Chairperson;
Ed Scott, Commissioner; Roberti. Busch, Commissioner.
ATTESTED:Tammi Lynch, Board Secretary.
The above Resolution was adopted at the Regular meeting
of the Board of Fire Commissioners of Whatcom County
Fire Protection District No. 11 on July 13, 2010 at the Lummi
Island Fire Station, 3809 Legoe Bay Road, Lummi island, WA
98262
EMS BALLOTTITLE
(Six year Levy Limit)
WHATCOM COUNTY FIRE PROTECTION DISTRICT NO. 11
PROPOSITON #
EMERGENCY MEDICAL SERVICES (EMS) REGULAR
PROPERTYTAX LEVY
Shall Whatcom County Fire Protection District No. 11 be
authorized to levy a regular property tax levy of $.14 cents
per thousand dollars of assessed valuation for each of the six
consecutive years beginning in 2010, to begin collection in
2011, for the provision of Emergency Medical Services (EMS)
as provided in Whatcom County Fire Protection District
No. 11 Resolution 2010 - 197 and the Laws of the State of
Washington RCW 84.52.069?
Yes
No
Complete Text
Northwest Park and Recreation District No. 2
Resolution No. 2010-2
Resolution Provided for the Submission of Levy
A RESOLUTION of the Board of Park Commissioners
of Northwest Park and Recreation District 2, Whatcom
County, Washington, providing for the submission to
the voters of the District at a general election to be held
therein on November 2, 2010, in conjunction with the state
general election to be held on the same day, a proposition
authorizing a regular property tax levy of $0,10 per
$1,000,000. This proposition would authorize the District
to set and maintain a regular property tax levy of $0.10 per
$1,000.00 of assessed valuation for 2011, 2012, 2013, 2014,
subject to any otherwise applicable statutory dollar rate
limitations.
WHEREAS, it is the judgment of the Board of
Commissioners of the District that it is essential and
necessary for the preservation of natural areas, water quality
and the creation of parks and trails that those services
be provide by the District. Such services will necessitate
the expenditure of revenues for acquisition of properties,
creation of parks and bike trails and operation and
maintenance of those sites and facilities.
NOW, THEREFORE BE IT RESOLVED by the Board of
Commissioners of Northwest Park and Recreation District 2,
Whatcom County, Washington as follows:
Section 1. In order to preserve natural areas, water quality,
develop parks, sports fields and bike trails in the District it is
necessary for the District to operate and maintain those sites
and facilities.
Section 2. In order to provide the revenue to pay the costs
of preserving natural areas, water quality and providing
recreational opportunities as described in section 1 and to
maintain reserve funds sufficient to assure the continuation
of such services, the District shall collect beginning in
2011, pursuant to RCW 36.68.400, a general tax on taxable
property within the District at a rate of $0.10 per $1,000.00 of
assessed valuation subject to otherwise applicable statutory
limits. This property tax levy would be collected for a four-
year period, 2011 - 2014.
Section 3.The re shall be submitted to the qualifier} electors
of the District for their ratification or rejection, at a general
election on November 2, 2010 in conjunction with the state
general election to be held on the same date, the question
of whether or not the regular property tax levy of the District
should be set at $0.10 per $1,000.00 of true and assessed
valuation in 2010 and be collected for the following four
years, subject to otherwise applicable statutory limitations.
Whatcom County as ex-officio Supervisor of Elections, is
hereby requester) to call such special election, and to submit
the following proposition as such election, in the form of a
ballot title substantially as follows_
NORTHWEST PARK AND RECREATION DISTRICT 2
WHATCOM COUNTY, WASHINGTON,
PROPOSITION NO. 1
PARKS AND RECREATION REGULAR
PROPERTYTAX LEVY
The Board of Commissioners of Northwest Park and
Recreation District No. 2 adopted Resolution No. 2010-2
concerning a proposition to assess a regular property tax
levy for a four year period of $0.10 per $1,000.00 of assessed
valuation to preserve natural areas, water quality, wildlife
habitat and support parks, bike trails and recreational
programs in Blaine and Birch Bay. Should this Proposition
be:
Approved
Rejected.
ADOPTED at the regular meeting of the Board of
Commissioners of Northwest Park and Recreation District 2
on this 8th day of June, 2010. By:
Chairman Ted Morris, CommissionerTerry Johnston,
Commissioner Betty Robertson, Commissioner Richard
Sturgill, Commissioner Katy Montfort.
ATTEST: Barbara Isaacson, Secretary to Northwest Park and
Recreation District No. 2
4h
Initiative Measure 1053
Initiative Measure 1053
93
How do I read measure text?
Any language in double parentheses
with a line through it is existing state
law and will be taken out of the law if the
measure is approved by voters. Any underlined
language or new sections do not appear in
current state law but will be added to the law if
the measure is approved by voters.
Complete Text
Initiative Measure 1053
AN ACT Relating to tax and tee increases imposed by state
government; amending RCW 43.135.035 and 43.135.055;
adding a new section to chapter 43.135 RCW; creating
newsections; repealing RCW 43.136.035; and providing
contingent effective dates.
BE IT ENACTED BYTHE PEOPLE OFTHE STATE OF
WASHINGTON:
INTENT
NEW SECTION. Sec. 1. This initiative should deter the
governor and the legislature from sidestepping, suspending
or repealing any of Initiative 960's policies in the 2010
legislative session. But regardless of legislative action taken
during the 2010 legislative session concerning Initiative 960's
policies, the people intend, by the passage of this initiative,
to require either two-thirds legislative approval or voter
approval for tax increases and majority legislative approval
for fee increases. These important policies ensure that taking
more of the people's money will always be an absolute last
resort.
PROTECTING TAXPAYERS BY REQUIRING EITHERTWO-
THIRDS LEGISLATIVE APPROVAL OR VOTER APPROVAL
FOR STATE GOVERNMENTTO RAISETAXES
(sections 2 and 3 take effect if the 2010 legislature
suspends or repeals the two-thirds legislative vote
requirement for tax increases)
NEW SECTION. Sec. 2. A new section to chapter 43.135
RCW is added and reads as follows:
(1) After July 1, 1995, any action or combination of actions
by the legislature that raises taxes may be taken only if
approved by at least two-thirds legislative approval in both
the house of representatives and the senate. Pursuant to the
referendum power set forth in Article Il, section 1(b) of the state
Constitution, tax increases may be referred to the voters for
their approval or rejection at an election.
(2)(a) If the legislative action under subsection (1) of this
section will result in expenditures in excess of the state
expenditure limit, then the action of the legislature shall
not take effect until approved by a vote of the people at a
November general election. The state expenditure limit
committee shall adjust the state expenditure limit by the
amount of additional revenue approved by the voters under
this section, This adjustment shall not exceed the amount of
revenue generated by the legislative action during the first full
fiscal year in which it is in effect. The state expenditure limit
shall be adjusted downward upon expiration or repeal of the
legislative action,
(b)The ballot title for any vote of the people required under
this section shall be substantially as follows:
"Shall taxes be imposed on ....... in order to allow a
spending increase above last year's authorized spending
adjusted for personal income growth?"
(3)(a)The state expenditure limit may be exceeded upon
declaration of an emergency for a period not to exceed
twenty-four months by a law approved by a two-thirds vote
of each house of the legislature and signed by the governor.
The law shall set forth the nature of the emergency, which is
limited to natural disasters that require immediate government
action to alleviate human suffering and provide humanitarian
assistance. The state expenditure limit may be exceeded for
no more than twenty-four months following the declaration
of the emergency and only for the purposes contained in the
emergency declaration.
(b) Additional taxes required for an emergency under this
section may be imposed only until thirty days following
the next general election, unless an extension is approved
at that general election. The additional taxes shall expire
upon expiration of the declaration of emergency. The
legislature shall not impose additional taxes for emergency
purposes under this subsection unless funds in the education
construction fund have been exhausted.
(c)The state or any political subdivision of the state shall not
impose any tax on intangible property listed in RCW 84.36.070
as that statute exists on January 1, 1993.
(4) If the cost of any state program or function is shifted
from the state general fund to another source of funding,
or if moneys are transferred from the state general fund to
another fund or account, the state expenditure limit committee,
acting pursuant to RCW 43.135.025(5), shall lower the state
expenditure limit to reflect the shift, For the purposes of this
section, a transfer of money from the state general fund to
another fund or account includes any state legislative action
taken that has the effect of reducing revenues from a particular
source, where such revenues would otherwise be deposited
into the state general fund, while increasing the revenues from
that partiCrilar source to another state or local government
account. This subsection does not apply to: (a)The dedication
or use of lottery revenues under RCW 67.70.240(3), in support
of education or education expenditures; or (b) a transfer of
moneys to, or an expenditure from, the budget stabilization
account.
(5) If the cost of any state program or function and the
ongoing revenue necessary to fund the program or function
are shifted to the state general fund on or after January 1,
2007, the state expenditure limit committee, acting pursuant to
RCW 43.135.025(5), shall increase the state expenditure limit to
reflect the shift unless the shifted revenue had previously been
shifted from the general fund.
(6) For the purposes of this chapter, "raises taxes" means
any action or combination of actions by the legislature that
increases state tax revenue deposited in any fund, budget, or
account, regardless of whether the revenues are deposited into
the general fund.
NEW SECTION., Sec. 3. RCW 43.135.035 (Tax legislation-
-Referral to voters --Conditions and restrictions --Ballot title-
-Declarations of emergency --Taxes on intangible property-
-Expenditure limit to reflect program cost shifting or fund
transfer) and 2009 c 479 s 36 are each repealed.
PROTECTING TAXPAYERS BY REQUIRING EITHERTWO-
THIRDS LEGISLATIVE APPROVAL OR VOTER APPROVAL
FOR STATE GOVERNMENTTO RAISETAXES
(section 4 takes effect if the 2010 legislature does
not suspend or repeal the two-thirds legislative vote
requirement for tax increases)
Sec. 4. RCW 43.135.035 and 2009 c 479 s 36 are each
amended to read as follows:
(1) After July 1, 1995, any action or combination of actions
by the legislature that raises taxes may be taken only if
approved by ((a)) at least two-thirds ((vote of each st
of the legislature]) legislative approval in both the house
of re rreesentatiYes _and senate and then only if state
expenditures in any fiscal year, including the new revenue, will
not exceed the state expenditure limits established under this
chapter. Pursuant to the referendum power set forth in Article
II, section 1(b) of the state Constitution, tax increases may
be referred to the voters for their approval or rejection at an
election.
(2)(a) If the legislative action under subsection (1) of this
section will result in expenditures in excess of the state
expenditure limit, then the action of the legislature shall
not take effect until approved by a vote of the people at a
November general election. The state expenditure limit
committee shall adjust the state expenditure limit by the
amount of additional revenue approved by the voters under
this section. This adjustment shall not exceed the amount of
revenue generated by the legislative action during the first full
fiscal year in which it is in effect. The state expenditure limit
shall be adjusted downward upon expiration or repeal of the
legislative action.
(b)The ballot title for any vote of the people required under
this section shall be substantially as follows:
"Shall taxes be imposed on ....... in order to allow a
spending increase above fast year's authorized spending
adjusted for personal income growth?"
(3)(a)The state expenditure limit may be exceeded upon
declaration of an emergency for a period not to exceed
twenty-four months by a law approved by a two-thirds vote
of each house of the legislature and signed by the governor.
The law shall set forth the nature of the emergency, which is
limited to natural disasters that require immediate government
action to alleviate human suffering and provide humanitarian
assistance. The state expenditure limit may be exceeded for
no more than twenty-four months following the declaration
of the emergency and only for the purposes contained in the
emergency declaration.
(b) Additional taxes required for an emergency under this
section may be imposed only until thirty days following
the next general election, unless an extension is approved
at that general election. The additional taxes shall expire
upon expiration of the declaration of emergency. The
legislature shall not impose additional taxes for emergency
purposes under this subsection unless funds in -the education
construction fund have been exhausted.
(c)The state or any political subdivision of the state shall not
impose any tax on intangible property listed in RCW 84.36.070
as that statute exists on January 1, 1993.
(4) If the cost of any state program or function is shifted
from the state general fund to another source of funding,
or if moneys are transferred from the state general fund to
another fund or account, the state expenditure limit committee,
acting pursuant to RCW 43.135,025(5), shall lower the state
expenditure limit to reflect the shift. For the purposes of this
section, a transfer of money -from the state general fund to
another fund or account includes any state legislative action
taken that has the effect of reducing revenues from a particular
source, where such revenues would otherwise be deposited
into the state general fund, while increasing the revenues from
that particular source to another state or local government
account. This subsection does not apply to: (a)The dedication
or use of lottery revenues under RCW 6770.240(3), in support
of education or education expenditures; or (b) a transfer of
moneys to', or an expenditure from, the budget stabilization
account.
(5) If the cost of any state program or function and the
ongoing revenue necessary to fund the program or function
are shifted to the state general fund on or after January 1,
2007, the state expenditure limit committee, acting pursuant to
RCW 43.135.025(5), shall increase the state expenditure limit to
reflect the shift unless the shifted revenue had previously been
shifted from the general fund.
(6) For the purposes of this chapter (€1 �awstfE�f308}},
"raises taxes" means any action or combination of actions by
the legislature that increases state tax revenue deposited in any
fund, budget, or account, regardless of whether the revenues
are deposited into the general fund.
PROTECTING TAXPAYERS BY REQUIRING MAJORITY
LEGISLATIVE APPROVAL FOR STATE GOVERNMENTTO
INCREASE FEES
Sec. 5. RCW 43.135.055 and 2008 c 1 s 14 are each
amended to read as follows:
1) ((No)) A fee may pEOy be imposed or increased in any
fiscal year ((v6th*Wcpr-ioHegi ,o ppteoval)) if approved
with maiority legislative approval in both the house of
representatives and the senate and must be subject to the
accountability procedures required by RCW 43,135.031.
(2)This section does not apply to an assessment made
by an agricultural commodity commission or board created
by state statute or created under a marketing agreement
or order under chapter 15.65 or 15.66 RCW, or to the forest
products commission, if the assessment is approved by
referendum in accordance with the provisions of the statutes
creating the commission or board or chapter 15.65 or 15.66
RCW for approving such assessments.
CONSTRUCTION CLAUSE
NEW SECTION, Sec- 6. The provisions of this act are to
be liberally construed to effectuate the intent, policies, and
purposes of this act.
SEVERABILITY CLAUSE
NEW SECTION. Sec. a: If any provision of this act or its
application to any person or circumstance is held invalid, the
remainder of the act or the application of the provision to
other persons or circumstances is not affected.
MISCELLANEOUS
NEW SECTION. Sec. 8. This act shall be known and cited
as Save The 213s Vote ForTax Increases Act of 2010.
NEW SECTION. Sec. 9. Sections 2 and 3 of this act take
effect if, during the 2010 legislative session, the legislature
amends or repeals RCW 43.135.035.
NEW SECTION. Sec. 10. Section 4 of this act takes effect
if, during the 2010 legislative session, the legislature does
not amend or repeal RCW 43.135.035.
10►r403121
94 Initiative Measure 1082 Initiative Measure 1082
Complete Text
Initiative Measure 1082
AN ACT Relating to industrial insurance reform through
privatization and competition; amending RCW 51.14.010 and
51.16.140; adding a new section to chapter 51.28 RCW; adding
new sections to chapter 51.44 RCW; adding a new section to
chapter 51.52 RCW; adding a new chapter to Title 48 RCW;
creating new sections; and providing an effective date.
BE IT ENACTED BYTHE PEOPLE OFTHE STATE OF
WASHINGTON:
NEW SECTION. Sec. 1. The people find that forty-six
other states have used competition to maximize efficiency
in their worker compensation programs. Private sector
competition in providing worker compensation coverage
has been effective in improving injured worker outcomes
while reducing premium costs for employers. Competition
has also improved program efficiency and created financial
incentives to create innovative safety programs that protect
all workers. Therefore, the purposes of this act are to:
(1) Maintain the existing benefit levels to which injured
workers are entitled under existing law while at the same
time improving their opportunity to return to work;
(2) As a result of private sector competition in providing
worker compensation coverage, eliminate the requirement
that workers in Washington pay one-half of their medical
coverage for injuries on the job;
(3) Create an efficient and cost-effective industrial
insurance system for the benefit of both employers and
workers by introducing competition into the system through
a choice of insurance providers from whom employers may
purchase industrial insurance;
(4) Provide workers the benefit of safety systems
developed by both the private sector and by government;
(5) Improve the state's economic climate by providing
the private sector with the opportunity to engage in the
industrial insurance business with appropriate standards and
oversight;
(6) Eliminate state government's monopoly with respect
to industrial insurance by providing employers choices for
purchasing industrial insurance coverage.
NEW SECTION. Sec. 2. (1) For the purposes of this
chapter, the term "industrial insurance insurer" includes an
insurer authorized to insure the liabilities defined byTitle
51 RCW but does not include any entity providing industrial
insurance coverage in accordance with RCW 51.14.010 (1) or
(2) or the state fund.
(2)The commissioner shall issue a certificate of authority
to be an industrial insurance insurer if the insurer meets the
requirements to be licensed to sell insurance in this state
and meets the applicable provisions of this title and Title 51
RCW. The commissioner shall perform all duties required
under this title to ensure that each industrial insurance
insurer continues to meet the requirements of the applicable
provisions of this title and Title 51 RCW.
(3)The commissioner shall designate a licensed rating
organization to file with the commissioner, for approval, a
manual of classifications and rules, rating plans, policy forms
and provisions, and a statistical plan which will provide
data adequate for rate making. Every industrial insurance
insurer must be a member of the licensed rating organization
designated by the commissioner and must adhere to the
approved filings required by this section.
(4)The licensed rating organization shall file manual
rates with the commissioner. Such rates shall not require
commissioner preapproval prior to use. Any member of
the rating organization may make written application to the
commissioner for approval of uniform percentage deviations
from the manual rates filed by the rating organization.
(5)The department of labor and industries division of
industrial insurance shall make available to the licensed
rating organization designated by the commissioner the
accident and loss experience records for the periods before
the effective date of this section. The division of industrial
insurance shall be reimbursed by such organization for the
actual reasonable cost of reproduction and delivery of the
records and data.
(6)The commissioner shall establish an assigned risk plan
for all industrial insurance insurers.
(7)This chapter does not prohibit or regulate the payment
of dividends and savings on unabsorbed premium deposits
allowed or returned by industrial insurance insurers to
their policyholders, groups, members, or subscribers.
A plan that is designed to return dividends, savings on
unabsorbed premium by industrial insurance insurers to
their policyholders, groups, members, or subscribers is not a
rating plan or system.
(8)The commissioner shall adopt rules under chapter 34.05
RCW to implement this section.
NEW SECTION. Sec. 3. Each industrial insurance insurer
offering to sell industrial insurance shall hold a certificate
of authority issued by the insurance commissioner under
chapter 48.05 RCW permitting it to provide industrial
insurance. Before issuing the certificate, the commissioner
shall certify that such an industrial insurance insurer has the
capacity to provide for the benefits to which injured workers
are entitled, adequate safety engineering, loss prevention,
and claims management services for all employers the
industrial insurance insurer insures. Such a certificate is not
valid if the industrial insurance insurer fails to maintain (1)
a location within the state where applications for industrial
insurance benefits may be made and maintained with the
commissioner and (2) a list of the locations and telephone
numbers where information may be obtained about all
appropriate matters relating to claims.
NEW SECTION. Sec. 4. A new section is added to chapter
51.28 RCW to read as follows:
(1)The industrial insurance insurer shall notify the
employer and the injured worker:
(a) Of its decision whether or not to pay industrial
insurance benefits for any application for industrial insurance
benefits within five days of making a decision;
(b) Each time the industrial insurance insurer makes a
decision to pay industrial insurance benefits pursuant to
chapter 51.32 RCW; and
(c) At intervals not to exceed thirty calendar days, of any
medical services approved or authorized under chapter 51.36
RCW.
(2) Each notice under this section must include an
explanation, in nontechnical language, of the potential
impacts of the decision on the injured worker, the industrial
insurance rates of the employer, and the injured worker's
and/or employer's right to appeal the -decision. The sixty-day
requirement to request reconsideration or appeal a decision
does not begin until the notice has been sent to the employer
and injured worker.
NEW SECTION. Sec. 5. A new section is added to chapter
51.44 RCW to read as follows:
A revolving fund to be known and designated as the
industrial insurance administrative fund is created in the
state treasury. The insurance commissioner shall administer
the fund. The fund is established to provide for the payment
of all expenses of the board of industrial insurance appeals
and the insurance commissioner with respect to the
administration of their respective duties under this title
and chapter 48.-- RCW (the new chapter created in section
14 of this act). There must be separate appropriations for
the board and the insurance commissioner. Any money
appropriated from the general fund for the uses and
purposes of the administrative fund must be placed in the
administrative fund.
NEW SECTION. Sec. 6. A new section is added to chapter
51.44 RCW to read as follows:
(1)The insurance commissioner shall periodically calculate
and collect from industrial insurance insurers assessments
that, with the interest earned, are sufficient to cover the
administrative costs of the commissioner to administer
sections 2 and 3 of this act. The time and manner of
collecting assessments must be set forth in rules adopted by
the commissioner under chapter 34.05 RCW.
(2)The commissioner shall prepare, as soon as is
practicable after July 1st each year, a line item budget for the
industrial insurance administrative fund for the succeeding
fiscal year. The budget must be based upon the actual
expenditures of the preceding fiscal year and a reasonable
estimate of expenses for the succeeding year.
(3)The assessment of each industrial insurance insurer
must be an amount bearing the same ratio to the total
administrative costs that each industrial insurance insurer's
adjusted premium bears to the aggregated adjusted
premium of all industrial insurance insurers. As used in this
subsection "adjusted premium" means the direct earned
premium for industrial insurance under this title, determined
under uniform rules adopted by the insurance commissioner.
(4)The assessment for each industrial insurance insurer
must be calculated in the following manner:
(a)The assessment for each industrial insurance insurer
must be based on the adjusted premium for the period
immediately preceding the period to which the assessment
will apply.
(b)The periodic assessment must be adjusted after each
fiscal year to reflect the actual adjusted premium of each
industrial insurance insurer for that fiscal year, as determined
by the commissioner.
(c) Notwithstanding any provision of this section, each
industrial insurance insurer may be assessed annually a
minimum amount not to exceed five hundred dollars, as
determined by the commissioner.
(5) Assessments are payable in full within thirty days
of the notice of assessment. If any industrial insurance
insurer fails to pay the assessment by the date due, interest
may be charged on all past due amounts at a reasonable
market rate as may be established from time to time by the
commissioner by rule.
(6) In no event may any assessment made under this
section exceed four percent per annum of the total taxable
industrial insurance premiums in this state for the year
immediately preceding the assessment.
NEW SECTION. Sec. Z A new section is added to chapter
51.44 RCW to read as follows:
Plans offered by industrial insurance insurers to groups of
employers must meet the following criteria:
(1) All the employers in the group are members of an
organization that has been in existence for at least four
years;
(2)The organization exists primarily for a -purpose other
than that of obtaining or offering industrial insurance
coverage or insurance -related services;
(3)The group must be composed of employers who are
substantially similar considering the services or activities
performed by the employees of those employers; and
(4)The formation and operation of the group program in
the organization will improve accident prevention and claims
management for the employers in the group.
Sec. S. RCW 51.14.010 and 1971 ex.s. c 289 s 26 are each
amended to read as follows:
Every employer under this title shall secure the payment of
compensation under this title by:
(1) Insuring and keeping insured the payment of such
benefits with the state fund; ((er))
(2) Qualifying as a self -insurer under this title, r
(3) Insuring and keeping insured the payment of
compensation individually or as part of a group of
employers with an industrial insurance insurer meeting the
requirements of section 2 of this act.
Sec. 9. RCW 51.16.140 and 1989 c 385 s 3 are each
amended to read as follows:
(({1) EVe�y�'tTTpISgG'f�h 1D not a insurer— "'rm� vc Ib,&-
�pay-�orea<,h-ef ,;3ar ;�r werke,3 �-�a+f of th -
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+xnei s�ral+ pay#Fre er:#ir�
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dedueti"ins-Rotas reri�r�+r:rr
easessed-urt6er-R£VV-1-as 6.2 10.
--W) It shall be unlawful for the employer, unless
specifically authorized by this title, to deduct or obtain any
part of the premium or other costs required to be by him
or her paid from the wages or earnings of any of his or her
workers, and the making of or attempt to make any such
deduction shall be a gross misdemeanor.
NEW SECTION. Sec. 10. A new section is added to
96 Initiative Measure 1082 1 Initiative Measure 1098
Initiative Measure 1098 97
chapter 51.52 RCW to read as follows:
With respect to the rights and responsibilities of the
department under this chapter, an industrial insurance
insurer shall have the same rights and responsibilities under
that chapter as does the department.
NEW SECTION. Sec. 11. Industrial insurance insurers
who obtain a certificate of authority as provided in sections
2 and 3 of this act and provide coverage for industrial
insurance benefits must provide benefits as set forth in
chapters 51.32 and 51.36 RCW. Such industrial insurance
insurers shall administer claims for benefits under chapter
51.32 RCW without involvement by the department, subject
to the right to appeal any such claim decisions to the board
and the courts pursuant to chapter 51.52 RCW.
NEW SECTION. Sec. 12. The exposure medium used by
each carrier, self -insurer, or state fund to price their insurance
product shall be based upon total payroll and will not be
subject to any payroll limitation.
NEW SECTION. Sec. 13. (1)The joint legislative task force
on private competition for industrial insurance is established.
The task force shall consist of the following members
appointed by the lieutenant governor:
(a) One member from the house of representatives;
(b) One member from the senate; and
(c)The following members:
(i) Four members representing employers. At least one
of the members must be from an employer with less than
twenty employees, at least one of the members must
represent an association with a retrospective rating program,
and at least one of the members must be from a self -insured
employer underTitle 51 RCW;
(ii)Two members representing industrial insurance
insurers; and
(iii) Four members representing employees. One member
must be an employee of a self -insured employer and at least
one member must be employed by an employer with fewer
than twenty employees.
(2)The task force shall work with the commissioner and
the department of labor and industries to develop proposed
legislation to conform current statutes to the provisions of
this act. The task force must provide its recommendations to
the legislature by December 1, 2011.
(3)The task force shall expire upon completion of
recommendations and transition of Washington's industrial
insurance to a competitive market, but no later than
December 31, 2012.
(4) No later than March 1, 2012, the legislature shall adopt
such supplemental legislation as may be necessary to fully
implement the policy directives of this act.
NEW SECTION. Sec. 14. Sections 2, 3, 11, and 12 of this
act constitute a new chapter inTitle 48 RCW.
NEW SECTION. Sec. 15. Sections 7 and 8 of this act take
effect July 1, 2012.
NEW SECTION. Sec. 16. If any provision of this act or its
application to any person or circumstance is held invalid, the
remainder of the act or the application of the provision to
other persons or circumstances is not affected.
-- END --
Complete Text
Initiative Measure 1098
AN ACT Relating to education, health care, and fiscal
reform; adding a new section to chapter 82.04 RCW;
amending RCW 82.04.4451; adding a new chapter toTitle 82
RCW; and prescribing penalties.
BE IT ENACTED BYTHE PEOPLE OFTHE STATE OF
WASHINGTON:
PART I ,
GENERAL PROVISIONS
NEW SECTION. Sec. 101. INTENT. It is the intent of the
people to create a new trust fund dedicated to improving
education and health services and providing middle class tax
relief by reducing the state property tax by twenty percent
and eliminating the business and occupation tax for all small
businesses, to be funded by an excise tax on joint income in
excess of $400,000, or in the case of individuals $200,000.
PART II
ESTABLISHING A NEWTRUST FUND DEDICATEDTO
EDUCATION AND HEALTH SERVICES AND MIDDLE
CLASSTAX RELIEF, FUNDED BY AN EXCISETAX ON
JOINT INCOMES IN EXCESS OF $400,000 ($200,000
FOR INDIVIDUALS)
NEW SECTION. Sec. 201. (1) A new state trust fund
is hereby established dedicated to funding education and
health services and middle class tax relief. The trust is known
and cited as the education, health services, and middle
class tax relief trust and is funded by the excise tax on joint
incomes in excess of $400,000 ($200,000 for individuals)
imposed under this chapter.
(2) Net revenue received by the trust must be devoted
to education and health services. Seventy percent of the
net revenues received by the trust must be deposited into
the education legacy trust account and used exclusively
for the purposes of that account. Thirty percent of the net
revenues received by the trust must be used exclusively to
supplement amounts available to fund the basic health plan
under chapter 70.47 RCW, to provide for costs of state and
local public health services, and to provide for long-term
care services for seniors and people with disabilities under
chapter 74.39A RCW and other health services. Net revenue
is that revenue received by the trust in excess of that
necessary to fund the middle class tax relief adopted in Part
Id of this act.
(3) Before computing or spending net revenue, the state
treasurer must each year certify the revenue that would have
been deposited in the general fund but for the middle class
tax relief adopted in Part III of this act, and must make such
deposits as are necessary to replace the revenue eliminated
by such middle class tax relief.
NEW SECTION. Sec. 202. The office of financial
management must prepare an annual report summarizing
how funds deposited in the trust have been spent and
estimating the number of state residents benefited. Monthly
disclosure of tax collection and spending under this chapter
must be posted on a web site maintained by the treasurer
and the office of financial management and such disclosure
must, at a minimum, include the information set forth in
RCW 43.08.150.
PART III
ADOPTION OF MIDDLE CLASSTAX RELIEF BY
REDUCINGTHE STATE PROPERTYTAX BYTWENTY
PERCENT AND ELIMINATING THE BUSINESS AND
OCCUPATION TAX FOR SMALL BUSINESSES
NEW SECTION. Sec. 301. Beginning in 2012, the state
property tax levy is reduced by twenty percent of the levy
amount that would otherwise be allowed under this chapter
without regard to this section.
NEW SECTION; Sec. 302. It is the intent of the voters
that beginning in 2012, the business and occupation tax
imposed in chapter 82.04 RCW on small business must be
eliminated by increasing the business and occupation tax
credit to four thousand eight hundred dollars per year, which
will exempt approximately the smallest eighty percent of
businesses in the state from the business and occupation
tax and reduce the business and occupation tax for other
businesses. The elimination of the business and occupation
tax for small businesses must be carried out as provided in
RCW 82.04.4451.
Sec. 303. RCW 82.04.4451 and 2010 c 23 s 1102 are each
amended to read as follows:
(1) In computing the tax imposed under.this chapter, a
credit is allowed against the amount of tax otherwise due
under this chapter, as provided in this section. ((Except for
t vrf�t-I�ast-#tft��#freir-#&x8�
�O2.O4,C55,✓3Z �s.7 , and 8
the}) The maximum annual credit for a taxpayer ((for a
rE�5FE1-Frg--}3eF{-Sf.��thi-rrty-fits`e-Ei6'n'-crr-3--rtsc-i�'-tt�Fte�-�3q`ti�
+ra�r�er-q€-r�rafir irrg-per�-as-det�rrt�i�red-
._der RGW 82 32 045)) is four thousand eiciht hundred
dollars. ((f ar�yersa#y-�iereent of
its i i�flttP�t-u �4.29g(2)(a),
a Rd-$-2: fl�#:z86;-the-fli8 Xifi"1it�`l�fE{fFt-�Or--B-F��}v7FitFY�-�Jt F}$C�
is -seventy dollars-�"ied+y-thenumber of months
hs-�T
the-Fepartifl er4RG- F-82 32-:a>' -))
The department may by rule divide_the credit into monthly
or quarterly credits when monthly or quarterly returns are
required.
(2) When the amount of tax otherwise due under this
chapter is equal to or less than the maximum credit, a credit
is allowed equal to the amount of tax otherwise due under
this chapter.
(3) When the amount of tax otherwise due under this
chapter exceeds the maximum credit, a reduced credit is
allowed equal to twice the maximum credit, minus the tax
otherwise due under this chapter, but not less than zero.
(4)The department may prepare a tax credit table
consisting of tax ranges ((using trrore;,�F�tfrar
five )) and a corresponding tax credit to be applied
to those tax ranges. The table shall be prepared in such a
manner that no taxpayer will owe a greater amount of tax
by using the table than would be owed by performing the
calculation under subsections (1) through (3) of this section.
A table prepared by the department under this subsection
must be used by all taxpayers in taking the credit provided in
this section.
PART IV
DEFINITIONS
NEW SECTION. Sec. 401. The definitions in this section
apply throughout this chapter unless the context clearly
requires otherwise.
(1) "Adjusted gross income" means adjusted gross income
as determined under the federal internal revenue code.
(2) "Individual" means a natural person.
(3) "Internal revenue code" means the United States
internal revenue code of 1986 and amendments thereto, as
existing and in effect on January 1, 2010.
(4) "Resident" includes an individual who:
(a) Has resided in this state for the entire tax year; or
(b) Is domiciled in this state unless the individual:
(i) Maintains no permanent place of abode in this state;
and
(ii) Does not maintain a permanent place of abode
elsewhere; and
(iii) Spends in the aggregate not more than thirty days in
the tax year in this state; or
(c) Is not domiciled in this state, but maintains a
permanent place of abode in this state and spends in the
aggregate more than one hundred eighty-three days of the
tax year in this state unless the individual establishes to the
satisfaction of the department that the individual is in the
state only for temporary or transitory purposes; or
(d) Claims this state as the individual's tax home for federal
income tax purposes.
(5) "S corporation" means an S corporation as defined in
section 1361 of the internal revenue code.
(6) "Tax" means the tax imposed in this chapter, unless the
context requires a different meaning.
(7) "Taxable income" means adjusted gross income as
modified under sections 602 and 701 of this act.
(8) "Taxable year" means the taxpayer's taxable year as
defined under the internal revenue code.
(9) "Taxpayer" means a person receiving income subject to
tax under this chapter.
NEW SECTION. Sec. 402. DEFINITION OFTERMS
GENERALLY. Except as provided in section 401 of this act
and RCW 1.12.080, any term used in this chapter has the
same meaning as when used in a comparable context in the
internal revenue code.
PART V
DETERMINATION OF EXCISETAX
NEW SECTION. Sec. 501. EXCISETAX IMPOSED --RATES.
(1) An excise tax is imposed on the receipt of all taxable
income of resident individuals and on all individuals deriving
income from sources within this state for each taxable year
based on the type of return filed and the amount of income
in accordance with this section. An excise tax is not imposed
on the assets held by a person resulting from income after its
receipt, but only upon the receipt itself.
(2) For every married couple filing jointly with his or her
spouse and for every surviving spouse, the excise tax is
Initiative Measure 1098
determined in accordance with the following table:
If taxable income received
The tax is:
is:
Not over $400,000 ...........
0
Over $400,000 but not
5.0% of the excess over
over $1,000,000 ...............
$400,000
I
Over $1,000,000..............:
$30,000 plus 9.0% of the
excess over $1,000,000
(3) For every individual, other than a surviving spouse,
who is not a married individual and for every married
individual who does not make a single return jointly with his
or her spouse, the excise tax is determined in accordance
with the following table:
If taxable income
The tax is:
received is:
Not over $200,000 ...........
0
Over $200,000 but not
5.0% of the excess over
over $500,000...................
$200,000
Over $500,000..................
$15,000 plus 9.0% of the
excess over $500,000
NEW SECTION. Sec. 502. CREDIT FOR INCOMETAXES
DUE ANOTHER JURISDICTION. (1) A resident individual is
allowed a credit against the tax imposed under this chapter
for the amount of any income tax imposed by another
state or foreign country, or political subdivision of the state
or foreign country, on income taxed under this chapter,
subject to the following conditions, which must be imposed
separately with respect to each taxing jurisdiction:
(a)The credit is allowed -only for taxes imposed by the
other jurisdiction on net income from sources within that
jurisdiction; and
(b)The amount of the credit shall not exceed the smaller
of:
(i)The amount of tax paid to the other jurisdiction on net
income from sources within the other jurisdiction; or
(ii)The amount of tax due under this chapter before
application of credits allowable by this chapter, multiplied by
a fraction. The numerator of the fraction is the amount of the
taxpayer's adjusted gross income subject to tax in the other
jurisdiction. The denominator of the fraction is the taxpayer's
total adjusted gross income as modified by this chapter. The
fraction may never be greater than one.
(2) If, in lieu of a credit similar to the credit allowed under
subsection (1) of this section, the laws of the other taxing
jurisdiction contain a provision exempting a resident of
this state from liability for the payment of income taxes
on income earned for personal services performed in such
jurisdiction, then the director is authorized to enter into
a reciprocal agreement with such jurisdiction providing
a similar tax exemption on income earned for personal
services performed in this state.
(3)The amount of the tax credit received by any taxpayer
under this section may not exceed the total amount of tax
due, and there may be no carryback or carryforward of any
unused excess credits.
NEW SECTION. Sec. 503. DUAL RESIDENCE. If an
individual is regarded, as a resident both of this state and
another jurisdiction for state personal income tax purposes,
the department must reduce the tax on that portion of
the taxpayer's income which is subjected to tax in both
jurisdictions solely by virtue of dual residence, if the other
taxing jurisdiction allows a similar reduction. The reduction,
must equal the lower of the two taxes applicable to the
income taxed twice, multiplied by a fraction. The numerator
of the fraction is the tax imposed by this state on the income
taxed twice. The denominator of the fraction is the tax
imposed by both jurisdictions on the income taxed twice.
The fraction must never be greater than one.
NEW SECTION. Sec. 504. PARTNERSHIPS AND S
CORPORATIONS. (1) Partnerships are not subject to tax
under this chapter. Partners are subject to tax under this
chapter in their separate or individual capacities on their
distributive share.
(2) S corporations are not subject to tax under this chapter.
Shareholders of S corporations are subject to tax under this
chapter in their separate or individual capacities.
(3) "S corporation income" includes both distributed and
undistributed federal taxable income of the S corporation.
PART VI
TAXABLE INCOME MODIFICATION
NEW SECTION. Sec. 601. ABSOLUTE TAXTHRESHOLD.
It is the intent of this act that in no event may excise tax be
imposed upon joint adjusted gross income below $400,000
($200,000 for individuals). No provisions of this chapter
may allow, the imposition of tax upon joint income below
$400,000 ($200,000 for individuals).
NEW SECTION. Sec. 602. FEDERAL OBLIGATIONS.
From adjusted gross income, deduct, to the extent included
in adjusted gross income, income derived from obligations
of the United States which this state is prohibited by federal
law from subjecting to a net income tax.
PART VII
DIVISION OF INCOME FOR NONRESIDENTS
NEW SECTION. Sec. 701. APPORTIONMENT AND
ALLOCATION OF INCOME. (1) For residentindividuals, all
income must be apportioned and allocated to this state.
(2) For nonresident individuals, income derived from
sources within this state must be apportioned and allocated
to this state.
(3) For purposes of this chapter:
(a)The adjusted gross income of a nonresident derived
from sources within this state is the net amount of items
of income, gain, loss, and deduction of the nonresident's
adjusted gross income that are derived from or connected
with sources in this state including any distributive share of
partnership income and deductions.
Initiative Measure 1098
(b) Items of income, gain, loss, and deduction derived
from or connected with sources within this state are those
items attributable to the ownership or disposition of any
interest in real or tangible personal property in this state,
and a business, trade, profession, or occupation carried on
within this state. The department must issue rules to provide
consistency of this section with Other excise tax provisions.
(c) ❑eduction with respect to expenses, capital lasses, and
net operating losses shall be based solely on income, gains,
losses, and deductions derived from or connected with
sources in this state but shall otherwise be determined in the
same manner as the corresponding federal deduction except
as provided in this chapter.
(d) Income from intangible personal property, including
annuities, dividends, interest, and gains from the disposition
of intangible personal property, constitutes income derived
from sources within the state of Washington only to the
extent that such income is from property employed in a
business, trade, profession, or occupation carried on within
this state. However, distributed and undistributed income
of an electing S corporation for federal tax purposes derived
from or connected with sources within this state is income
derived from sources within this state for a nonresident
shareholder. A net operating loss of such corporation does
constitute a loss or deduction connected with sources within
this state for a nonresident shareholder.
(e) Compensation paid by the United States for service in
the armed forces of the United States performed in this state
by a nonresident does not constitute income derived from
sources within this state.
(f) If a business, trade, profession, or occupation is
carried on partly within and partly without this state, the
determination of net income derived or connected with
sources within this state as provided in this section must be
made by apportionment and allocation of chapter 82.56 RCW.
PART VIII
WITHHOLDING --ESTIMATED TAX
NEW SECTION. Sec. 801. EMPLOYER WITHHOLDING-
-REQUIREMENTS. (1) Every employer making a payment
of wages or salaries earned in this state, regardless of the
place where the payment is made, and who is required by
the internal revenue code to withhold taxes, must deduct
and withhold a tax as prescribed by the department by rule.
The rules prescribed must reasonably reflect the annual tax
liability of the employee under this chapter. Every employer
making such a deduction and withholding must furnish
to the employee a record of the amount of tax deducted
and withheld from the employee on forms provided by the
department.
(2) If the employee is a resident of this state and earns
income from personal services entirely performed in another
state which imposes an income tax on the income, and the
employer withholds income taxes under the laws of the state
in which the income is earned, the employer is not required
to withhold any tax imposed by this chapter on the income
if the laws of the state in which the income is earned allow a
similar exemption for its residents who earn income in this
state.
NEW SECTION. Sec. 802. LIABILITY OF EMPLOYER
FOR TAX WITHHELD. Any person required to deduct and
withhold the tax imposed by this chapter is liable under
section 804 of this act to the department for the payment of
the amount deducted and withheld, and is not liable to any
other person for the amount of tax deducted and withheld
under this chapter or for the act of withholding.
NEW SECTION. Sec. 803. CREDIT FORTAX WITHHELD --
HOW CLAIMED. The amount deducted and withheld as tax
under sections 801 through 805 of this act during any taxable
year is allowed as a credit against the tax imposed for the
taxable year by this chapter. If the liability of any individual
for taxes, interest, penalties, or other amounts due the state
of Washington is less than the total amount of the credit
which the individual is entitled to claim under this section,
the individual is entitled to a refund from the department in
the amount of the excess of the credit over the tax otherwise
due. If any individual entitled to claim a credit under this
section is not otherwise required by this chapter to file a
return, a refund may be obtained in the amount of the credit
by filing a return, with applicable sections completed, to
claim the refund. No credit or refund is allowed under this
section unless the credit or refund is claimed on a return filed
for the taxable year for which the amount was deducted and
withheld.
NEW SECTION. Sec. 804. WITHHOLDING--FAILURETO
PAY OR COLLECT --PENALTIES. (1)The tax required by this
chapter to be collected by the employer is deemed to be held
in trust by the employer until paid to the department.
(2) In case any employer, or a responsible person within
the meaning of internal revenue code section 6672, having
collected the tax herein imposed, fails to pay it to the
department, the employer or responsible person must,
nevertheless, be personally liable to the state for the amount
of the tax. The interest and penalty provisions of chapter
82.32 RCW apply to this section. An employer or other
responsible person who appropriates or converts the tax
herein imposed is guilty of a gross misdemeanor as provided
in chapter 9A.20 RCW.
(3) In case any employer or responsible person within the
meaning of internal revenue code section 6672 fails to collect
the tax herein imposed, the employer or responsible person
must, nevertheless, be personally liable to the state for the
amount of the tax unless it is shown that the failure was due
to a reasonable cause and not willful neglect.
NEW SECTION. Sec. 805- ESTIMATEDTAX IMPOSED --
DUE DATE OF ESTIMATE DTAXES--AMOUNT OF ESTIMATED
TAX --UNDERPAYMENT PENALTY. (1) Each individual subject
to taxation by this chapter, wh❑ is required by the internal
revenue code to make payment of estimated taxes, must pay
to the department on forms prescribed by the department
the estimated taxes due under this chapter.
(2)The provisions of the internal revenue code relating
to the determination of reporting periods and due dates
Of payments of estimated tax applies to the estimated tax
payments due under this section.
(3)The amount of the estimated tax is the annualized tax
divided by the number of months in the reporting period.
No estimated tax is due if the annualized tax is less than
100
Initiative Measure 1098
five hundred dollars. The provisions of RCW 82.32.050 and
82.32.090 apply to underpayments of estimated tax but
do not apply to underpayments if the tax remitted to the
department is either ninety percent of the tax due as shown
on the current year's tax return or one hundred percent of
the tax shown on the previous year's tax return.
(4) For purposes of this section, the annualized tax is the
taxpayer's projected tax liability for the tax year as computed
pursuant to internal revenue code section 6654 and the
regulations thereunder.
PART IX
ADMINISTRATIVE PROVISIONS
NEW SECTION. Sec. 901. METHOD OF ACCOUNTING.
(1) A taxpayer's method of accounting for purposes of the
tax imposed under this chapter is the same as the taxpayer's
method of accounting for federal income tax purposes. If no
method of accounting has been regularly used by a taxpayer
for federal income tax purposes or if the method used does
not clearly reflect income, tax due under this chapter is
computed by a method of accounting which in the opinion' of
the department fairly reflects income.
(2) If a person's method of accounting is changed for
federal income tax purposes, it must be similarly changed for
purposes of this chapter.
NEW SECTION. Sec. 902. PERSONS REQUIREDTO FILE
RETURNS. (1) Only taxpayers with joint income in excess
of $400,000 ($200,000 for individuals) are required to file
a tax return with the department. The department must
utilize such taxpayer's federal tax returns as a primary tool
for obtaining taxpayers' information. The department may
prescribe a simple supplement of no more than two pages
for computing the excise tax owed under this chapter. Each
person required to file a return under this chapter must,
without assessment, notice, or demand, pay any tax due
thereon to the department on or before the date fixed for the
filing of the return.
(2)The department may by rule require that certain
taxpayers file, on forms prescribed by the department,
informational returns for any period. Each person required
by rule to file an informational return must, without
assessment, notice, or demand, pay any tax due thereon to
,the department on or before the date fixed for the filing of
the informational return.
(3) If an adjustment to a taxpayer's federal return is
made by the taxpayer or the internal revenue service, the
taxpayer must, within ninety days of the final determination
of the adjustment by the internal revenue service or within
thirty days of the filing of a federal return adjusted by the
taxpayer, file with the department on forms prescribed by the
department a corrected return reflecting the adjustments as
finally determined. The taxpayer must pay any additional tax
due resulting from the finally determined internal revenue
service adjustment or a taxpayer adjustment without notice
and assessment. Notwithstanding any provision of this
chapter or any other title to the contrary, the period of
limitation for the collection of the additional tax, interest,
and penalty due as a result of an adjustment by the taxpayer
or a finally determined internal revenue service adjustment
must begin at the later of thirty days following the final
determination of the adjustment or the date of the filing of
the corrected return.
NEW SECTION. Sec. 903. DUE DATE FOR FILING
A RETURN--EXTENSIONSANTEREST AND PENALTIES.
The due date of a return required to be filed with the
department is the due date of the federal income tax return
or informational return for federal income tax purposes. The
department must have the authority to grant extensions of
times by which returns required to be filed by this chapter
may be submitted. The department must also have the
authority to grant extensions of time to pay tax with regard
to taxes imposed by this chapter. Interest at the rate as
specified in RCW 82.32.050 accrues during any extension
period and the interest and penalty provisions of chapter
82.32 RCW apply to late payments and deficiencies.
Notwithstanding the limitation of RCW 82.32.090, in the
case of the late filing of an informational return, there is
imposed a penalty the amount of which is established by the
department by rule. The penalty may not exceed fifty dollars
per month for a maximum of ten months. RCW 82.32.105
applies to this section.
NEW SECTION. Sec. 904. JOINT RETURN. (1) If the
federal income tax liabilities of both spouses are determined
on a joint federal return for the taxable year, they must file
a joint return under this chapter unless one spouse is a
resident and the other is a nonresident.
(2) If neither spouse is required to file a federal income tax
return for the taxable year, a joint return may be filed under
this chapter under the same conditions under which a joint
return may be filed for purposes of the federal income tax.
(3) If one spouse is a resident and the other is a
nonresident, they must file separate returns under this
chapter, unless they elect to determine their tax liabilities
under this chapter on a joint return as if they were both
residents, and:
(a)Their federal tax liability for the taxable year was
determined on a joint federal tax return; or
(b) Neither spouse has filed a federal income tax return for
the taxable year and they would be permitted to file a joint
federal tax return for the taxable year.
(4) In any case in which a joint return is filed under this
section, the liability of the spouses is joint and several,
unless the spouse is relieved of liability under section 6013 of
the internal revenue code.
(5)The department must take actions and adopt rules,
forms, and procedures to implement this act consistently
with RCW 26.60.015, notwithstanding any term or provision
of this act except section 601.
NEW SECTION. Sec. 905. RECORDS --RETURNS. (1)
Every taxpayer with joint income in excess of $400,000
($200,000 for individuals) and all others required to deduct
and withhold the tax imposed under this chapter must keep
records, render statements, make returns, file reports, and
perform other acts as the department requires by rule. Each
return must be made under penalty of perjury and on forms
prescribed by the department. The department may require
other statements and reports be made under penalty of
perjury and on forms prescribed by the department. The
department may require any taxpayer and any person
Initiative Measure 1098
required to deduct and withhold the tax imposed under
this chapter to furnish to the department a correct copy of
any return or document which the taxpayer has filed with
the internal revenue service or received from the internal
revenue service.
(2) All books and records and other papers and documents
required to be kept under this chapter, are subject to
inspection by the department at all times during business
hours of the day.
NEW SECTION. Sec. 906. PROVISIONS OF INTERNAL
REVENUE CODE CONTROL. (1)To the extent possible
without being inconsistent with this chapter, all of the
provisions of the internal revenue code relating to the
following subjects apply to the taxes imposed under this
chapter:
(a)Time of payment of tax deducted and withheld under
sections 801 through 805 of this act and this section;
(b) Liability of transferees;
(c)Time and manner of making returns, extensions of time
for filing returns, verification of returns, and the time when a
return is deemed filed.
(2)The department by rule may provide modifications and
exceptions to the provisions listed in subsection (1) of this
section, if reasonably necessary to facilitate the prompt,
efficient, and equitable collection of tax under this chapter.
NEW SECTION. Sec. 907. REFUNDS OF
OVERPAYMENTS --OTHER ADMINISTRATIVE PROVISIONS.
(1)The department must refund all taxes improperly paid or
collected.
(2)The following sections apply to the administration of
taxes imposed under this chapter: RCW 82.32.020, 82.32.050,
82.32.060, 82.32.070, 82.32.090, 82.32.100, 82.32.105,
82.32.110, 82.32.120, 82.32.130, 82.32.140, 82.32.150,
82.32.160, 82.32.170, 82.32.180, 82.32.190, 82.32.200,
82,32.210, 82.32.220, 82.32.230, 82.32.235, 82.32.237,
82.32.240, 82.32.245, 82.32.265, 82.32.290, 82.32.300,
82.32.310, 82.32.320, 82.32.330, 82.32.340, 82.32.350,
82.32.360, and 82.32.380.
NEW SECTION_ Sec. 908. RULES. The department may
adopt rules under chapter 34.05 RCW for the administration
and enforcement of this chapter, including a phase -in for
fiscal year taxpayers. The rules, to the extent possible
without being inconsistent with this chapter, must follow the
internal revenue code and the regulations and rulings of the
United States treasury department with respect to the federal
income tax. The department may adopt as a part of these
rules any portions of the internal revenue code and treasury
department regulations and rulings, in whole or in part.
NEW SECTION. Sec. 909. APPEALS. The board of tax
appeals shall have jurisdiction over appeals relating to tax
deficiencies and refunds, including penalties and interest,
pursuant to this chapter. The taxpayer may elect a formal or
informal hearing pursuant to RCW 82.03.140.
PART X
MISCELLANEOUS
NEW SECTION. Sec. 1001. CONTEXT. In 1932, more
than seventy percent of Washington voters approved an
101
income tax initiative and simultaneously cut property taxes
in half. The following year, the state supreme court, in an
opinion that ultimately relied on United States supreme
court cases that have long since been overruled, treated
Washington's graduated income tax, as then drafted, as a
nonuniform property tax. This threw the state's tax system
into confusion and led to Washington's over reliance on high
sales taxes and the business and occupations tax. The sales
tax is regressive and stunts business growth. The business
and occupation tax, which is peculiar to Washington state,
discourages investment and encourages many potential
employers to take their business elsewhere. The tax
established by this initiative is intentionally structured as
an excise tax on the receipt of income during a taxable year
rather than as a property tax on money as an asset, after it
has been received. As an excise tax rather than a property
tax, this tax is intended to conform to the legal framework
adopted by almost all states, consistent with United States
supreme court rulings as they have evolved during the past
eight decades. This initiative is also aimed at replicating the
voters' 1932 action to reduce property taxes while installing
a much fairer tax system overall and providing more stable
funding to enable the state to meet its constitutional duty to
provide for the education of all children, and to enable the
state to better provide for the costs of health care.
NEW SECTION. Sec. 1002. SEVERABILITY. The
provisions of this initiative are contingent upon the validity
of the excise tax in section 501 of this act. Except as to this
contingency, the voters intend the provisions of this initiative
to be severable such that if any pruvision of this act or its
application to any person or circumstance is held invalid, the
remainder of the act or the application of the provision to
other persons or circumstances is not affected.
NEW SECTION. Sec. 1003. APPLICATION. This chapter
and sections 302 and 303 of this act apply to taxes collectible
in 2012 and thereafter.
NEW SECTION. Sec. 1004. The excise tax rates in section
501 of this act may not be increased for any income level
without a majority vote of the legislature and submission of
the changes to the people for approval.
NEW SECTION. Sec. 1005. CODIFICATION. Sections
101 through 301 and 401 through 1004 of this act constitute a
new chapter inTitle 82 RCW.
-- END --
Initiative Measure 1100
Complete Text
Initiative Measure 1100
AN ACT Relating to liquor; amending RCW 43.19.19054,
66.08,020, 66.08.060, 66.20.010, 66,20.160, 66.24.310,
66.24.380, 66.24.540, 66.24.590, 66.28.040, 66,28.060,
66.28.280, 66.44.150, 66.44.160, and 82.08.160; adding a
new section to chapter 66.04 RCW; adding new sections to
chapter 66.08 RCW; adding a new section to chapter 66.12
RCW; adding a new section to -chapter 66.20 RCW; adding
new sections to chapter 66.24 RCW; adding a new section to
chapter 66.28 RCW; adding a new section to chapter 66.32
RCW; adding new sections to chapter 66.44 RCW; adding a
new section to chapter 82.08 RCW; creating a new section;
repealing RCW 66.24.145, 66.32.010, 66.28.010, 66.28.170,
66.28.180, 66.28.285, 66.28.290, 66.28.295, 66.28.300,
66.28.305, 66.28.310, 66.28.315, 66.28.320, 66.12,110,
66.12.120, 66.08.026, 66.08.030, 66.08.050, 66.08.070,
66.08.075, 66.08.165, 66.08.166, 66.08.167, 66.08.220,
66.08.235, 66.16.010, 66.16.040, 66.16.041, 66.16.050,
66.16.060, 66.16.070, 66.16.090, 66.16.100, 66.16.110,
66.16.120, 66,24.440, 66.28.045; and providing effective dates.
BE IT ENACTED BYTHE PEOPLE OFTHE STATE OF
WASHINGTON:
NEW SECTION. Sec. 1. (1)The people of Washington
state desire that the liquor control board focus on its core
mission of education and enforcement to protect the health,
welfare, and safety of the citizens.
(2) In order to strengthen the agency to more effectively
educate the public, combat abuse, collect tax revenue, and
enforce state liquor laws, the Washington state liquor control
board will stop selling liquor and end its prohibition -era
monopoly on selling distilled spirits. The state will license
the sale of distilled spirits to strictly regulated vendors who
are already proven to be responsible sellers of beer and
wine.
(3)This act will improve regulations to prevent abusive and
underage drinking, enforce licensing regulations, and collect
taxes for the state's general fund.
Sec. 2. RCW 43.19.19054 and 1975276 2nd ex.s. c 21 s 7
are each amended to read as follows:
The provisions of RCW 43.19.1905 shall not apply to
materials, supplies, and equipment purchased for resale
to other than public agencies by state agencies, including
educational institutions. ((fn-addfticrn; ,,GW 43. G,-„ts+
not apply to licttl8r ����// e €01 " S8'e�rder-
/'.
NEW SECTION. Sec. 3. A new section is added to chapter
66.04 RCW to read as follows:
The following definitions apply throughout this title unless
the context clearly requires otherwise.
(1) 'Authorized representative" includes a person who
satisfies RCW 66.04.010(2) (a) and (b) and who acquires
ownership of spirits for transportation into and resale in
the state of Washington, and which spirits are produced
by a distiller in the United States outside of the state of
Washington, and who is appointed by the distiller as its
authorized representative for marketing and selling its
products within the United States in accordance with a
written agreement between the authorized representative
and such distiller pursuant to this title.
(2) "Spirits distributor" means a person who buys spirits
from a domestic distiller, spirits certificate of approval holder,
or spirits importer, or who acquires foreign produced spirits
from a source outside of the United States, for the purpose
of selling the same not in violation of this title, or who
represents such distiller as agent.
(3) "Spirits importer" means a person who buys distilled
spirits from a distiller outside the state of Washington and
imports such spirits into the state for sale or for export.
(4) "Store" includes any liquor store licensed under this
title.
Sec. 4. RCW 66.08.020 and 1933 ex.s. c 62 s 5 are each
amended to read as follows:
The administration of this title((�+�e gerraF
shall be vested in the liquor control board, constituted under
this title.
NEW SECTION. Sec. 5. A new section is added to chapter
66.08 RCW to read as follows:
Administrative expenses of the board shall be
appropriated and paid from the liquor revolving fund. These
administrative expenses include, but are not limited to: The
salaries and expenses of the board and its employees, legal
services, pilot projects, annual or other audits, and other
general costs of conducting the business of the board. All
expenditures and payment of obligations authorized by this
section are subject to the allotment requirements of chapter
43.88 RCW.
NEW SECTION. Sec. 6. A new section is added to chapter
66.08 RCW to read as follows:
The board has the power to make regulations, in
accordance with the provisions of the administrative
procedure act, chapter 34.05 RCW, to implement this
title. Because the board will no longer be selling liquor,
regulations adopted by the board must be to enforce the
licensing requirements of this title, the collection of tax on
liquor, the prevention of underage drinking of liquor and
alcohol abuse, and managing the board and its employees.
NEW SECTION. Sec. 7. A new section is added to chapter
66.08 RCW to read as follows:
The board, subject to the provisions of this title and the
rules, shall:
(1) Execute, or cause to be executed, all contracts, papers,
and documents in the name of the board, under such
regulations as the board may fix;
(2) Require bonds from all employees in the discretion of
the board and to determine the amount of fidelity bond of
each such employee;
(3) Perform service for the state lottery commission to
such extent and for such compensation, as may be mutually
agreed upon between the board and the commission;
(4) Accept and deposit into the general fund -local account
and disperse, subject to appropriation, federal grants or
other funds or donations from any source for the purpose of
improving public awareness of the health risks associated
with alcohol consumption by youth and the abuse of alcohol
by adults in Washington. The alcohol awareness program
shall cooperate with federal and state agencies, interested
Initiative Measure 1100
organizations, and individuals to promote alcohol awareness;
(5) Perform all other matters and things to carry out the
provisions of this title, and shall have full power to do every
act necessary to the conduct of its business. However, the
board shall have no authority to regulate the content of
spoken language on licensed premises where wine and other
liquors are served and where there is not a clear and present
danger of disorderly conduct being provoked by such
language.
Sec. 8. RCW 66.08.060 and 2005 c 231 s 3 are each
amended to read as follows:
(1)The board shall not advertise liquor in any form or
through any medium whatsoever.
(2) ((Fn-store figtsnt tt�er�
pt-rposes rim:
--f33)}The board shall have power to adopt any and all
reasonable rules as to the kind, character, and location of
advertising of liquor solely for the nurpase of and that have
a demonstrable effect of reducln undera a or abusive
consumption.
NEW SECTION. Sec. 9. A new section is added to chapter
66.08 RCW to read as follows:
Fees from the issuance of licenses to sell spirits under
sections 14, 16 and 17 of this act may be expended only for
purposes of the administration and enforcement of liquor
licenses and reducing underage or abusive consumption.
NEW 51=CTION Sec. 10. A new section is added to
chapter 66.12 RCW to read as follows:
(1) A person twenty-one years of age or over may bring
into the state from without the state, free of tax, for his or her
own personal or household use such alcoholic beverages as
have been declared and permitted to enter the United States
duty free under federal law.
(2) Such entry of alcoholic beverages in excess of two liters
of spirits or wine or two hundred eighty-eight ounces of beer
per calendar month shall be taxed as would be applicable to
the purchase of the same ❑r similar liquor within the state.
NEW SECTION. Sec. 11. A new section is added to
chapter 66.20 RCW to read as follows:
Any licensee to sell spirits under this title must post in
conspicuous places in a number to be determined by the
board, within each store that seals spirits, notices in print no
less than one inch high warning persons that consumption of
alcohol shortly before conception or during pregnancy may
cause birth defects, including fetal alcohol syndrome and
fetal alcohol effects.
Sec. 12. RCW 66.20.010 and 2008 c 181 s 602 are each
amended to read as follows:
Upon application in the prescribed form being made to
any employee authorized by the board to issue permits,
accompanied by payment of the prescribed fee, and upon
the employee being satisfied that the applicant should be
granted a permit under this title, the employee shall issue to
the applicant under such regulations and at such fee as may
be prescribed by the board a permit of the class applied for,
as follows:
(1) Where the application is for a special permit by a
physician or dentist, or by any person in charge of an
institution regularly conducted as a hospital or sanitorium
103
for the care of persons in ill health, or as a home devoted
exclusively to the care of aged people, a special liquor
purchase permit, except that the governor may waive the
requirement for a special liquor purchase permit under
this subsection pursuant to an order issued under RCW
43.06.220(2);
(2) Where the application is for a special permit by
a person engaged within the state in mechanical or
manufacturing business or in scientific pursuits requiring
alcohol for use therein, or by any private individual, a special
permit to purchase alcohol for the purpose named in the
permit, except that the governor may waive the requirement
for a special liquor purchase permit under this subsection
pursuant to an order issued under RCW 43.06.220(2);
(3) Where the application is far a special permit to
consume liquor at a banquet, at a specified date and place,
a special permit to purchase liquor for consumption at such
banquet, to such applicants as may be fixed by the board;
(4) Where the application is far a special permit to
consume liquor on the premises of a business not licensed
under this title, a special permit to purchase liquor for
consumption thereon for such periods of time and to such
applicants as may be fixed by the board;
(5) Where the application is for a special permit by a
manufacturer to import or purchase within the state alcohol,
malt, and other materials containing alcohol to be used
in the manufacture of liquor, or other products, a special
permit;
(6) Where the application is for a special permit by a
person operating a drug store to purchase liquor at retail
prices only, to be thereafter sold by such person on the
prescription of a physician, a special liquor purchase permit,
except that the governor may waive the requirement for
a special liquor purchase permit under this subsection
pursuant to an order issued under RCW 43.06.220(2);
(7) Where the application is for a special permit by an
authorized representative of a military installation operated
by or for any of the armed forces within the geographical
boundaries of the state of Washington, a special permit to
purchase liquor for use on such military installation at prices
to be fixed by the board;
(8) Where the application is for a special permit by a
manufacturer, importer, or distributor, or representative
thereof, to serve liquor without charge to delegates and
guests at a convention of a trade association composed
of licensees of the board, when the said liquor is served
in a hospitality room or from a booth in a board -approved
suppliers' display room at the convention, and when the
liquor so served is for consumption in the said hospitality
room or display room during the convention, anything in
Title 66 RCW to the contrary notwithstanding, Any such
liquor shall be purchased from any Iice nsee
authorized by the board {(ar a sprr;ts, u�
1re8++' r e)) to sell liquor and any such ((beer-aftd-
vAne)) li uar shall be subject to the taxes imposed,by RCW
66.24.290 and 66.24.210;
(9) Where the application is for a special permit by a
manufacturer, importer, or distributor, or representative
thereof, to donate liquor for a reception, breakfast, luncheon,
or dinner for delegates and guests at a convention of a trade
association composed of licensees of the board, when the
104
Initiative Measure 1100
liquor so donated is for consumption at the said reception,
breakfast, luncheon, or dinner during the convention,
anything inTitle 66 RCW to the contrary notwithstanding.
Any such ((spiritttetas)) liquor shall be purchased from any
licensee authorized by the board
restaurant I:_,...,.,._)) to sell liquor and any such ((beeramel
wine)) li uor shall be subject to the taxes imposed by RCW
66.24.290 and 66.24.210;
(10) Where the application is for a special permit by a
manufacturer, importer, or distributor, or representative
thereof, to donate and/or serve liquor without charge to
delegates and guests at an international trade fair, show,
or exposition held under the auspices of a federal, state, or
local governmental entity or organized and promoted by
a nonprofit organization, anything in Title 66 RCW to the
contrary notwithstanding. Any such ((spifittious)) liquor
shall be purchased from any licensee authorized-lqy the
board to sell liquor and any such ((beer or wine)) liquor
shall be subject to the taxes imposed by RCW 66.24.290 and
66.24.210;
(11) Where the application is for an annual special permit
by a person operating a bed and breakfast lodging facility
to donate or serve wine or beer without charge to overnight
guests of the facility if the wine or beer is for consumption
on the premises of the facility. "Bed and breakfast lodging
facility;' as used in this subsection, means a facility offering
from one to eight lodging units and breakfast to travelers
and guests.
Sec. 13. RCW 66.20.160 and 2005 c 151 s 8 are each
amended to read as follows:
Words and phrases as used in RCW 66.20.160 ((to))
through 66.20.210, inclusive, ((s4a-4)) have the following
meaning:
((i�- kle Frt v rre sf h c�sc �a r
>deser 46: a40.) )
M "Licensee" means the holder of a retail liquor license
issued by the board, and includes any employee or agent of
the licensee.
(22) "Store employee" means a person employed in a
((state liquor)) store to sell liquor.
NEW SECTION. Sec. 14. A new section is added to
chapter 66.24 RCW to read as follows:
(1) Beginning June 1, 2011, there shall be a general liquor
retailer's license to sell spirits, beer, and wine at retail in
original containers, not to be consumed on the premises
where sold.
(2)The annual fee for the general liquor retailer's license is
one thousand dollars.
(3)There shall be a one-time application fee for the
general liquor retailer's license of one thousand dollars to
be submitted with the application for the license and to be
refunded if the application is not granted.
(4) Beginning June 1, 2011, there shall be a general
liquor distributor's license to have the privileges of a beer
distributor's license and a wine distributor's license and to
sell spirits, purchased from licensed Washington distilleries,
spirits certificate of approval holders, licensed spirits
importers, or suppliers of foreign spirits located outside of
the United States, to eligible licensed retailers and other
licensed distributors and to export the same from the state.
The fee is two thousand dollars per year for each distributing
unit.
(5)There shall be a one-time application fee for the general
liquor distributor's license of two thousand dollars to be
submitted with the application for the license and to be
refunded if the application is not granted.
NEW SECTION. Sec. 15. A new section is added to
chapter 66.24 RCW to read as follows:
(1) Any licensed distillery may also act as a distributor and/
or retailer for spirits of its own production without further
application or fee. Any distillery operating as a distributor
and/or retailer under this subsection shall comply with the
applicable laws and rules relating to distributors and/or
retailers.
(2) Any licensed distillery may contract distill spirits for,
and sell contract distilled spirits to, holders of distillers' or
manufacturers' license, including license issued under RCW
66.24.520, or for export.
(3) Any licensed distillery may provide, free of charge, one-
half ounce or less samples of spirits of its own production
to persons on the premesis of the distillery.The maximum
total per person per day is two ounces. Every person who
participates in any manner in the services of samples must
obtain a class 12 alcohol server permit.
(4)The board shall adopt rules to implement the alcohol
server permit requirement and may adopt additional rules to
implement this section.
(5) Distilling is an agricultural practice.
NEW SECTION. Sec. 16. A new section is added to
chapter 66.24 RCW to read as follows:
There shall be a license for spirits distributors to sell
spirits, purchased from licensed Washington distilleries,
spirits certificate of approval holders, licensed spirits
importers, or suppliers of foreign spirits located outside
of the United States, to licensed spirits retailers and other
spirits distributors and to export the same from the state of
Washington with a fee of one thousand dollars per year for
each distributing unit.
NEW SECTION. Sec. 17. A new section is added to
chapter 66.24 RCW to read as follows:
There shall be a license for spirits importers that authorizes
the licensee to import spirits purchased from certificate of
approval holders into the state of Washington. The licensee
may also import from suppliers located outside of the United
States spirits manufactured outside the United States.
(1) Spirits importers licensed under this section may sell
spirits to licensed spirits distributors or licensed spirits
retailers, or export spirits from the state.
(2) Every person, firm, or corporation licensed as a spirits
importer shall establish and maintain a principal office within
the state at which shall be kept proper records of all spirits
imported into the state under this license.
(3) No spirits importer's license shall be granted to a
nonresident of the state or to a corporation whose principal
place of business is outside the state until such applicant has
established a principal office and agent within the state upon
which service can be made.
(4) As a requirement for license approval, a spirits importer
shall enter into a written agreement with the board to furnish
on or before the twentieth day of each month a report under
oath, detailing the quantity of spirits sold or delivered to
Initiative Measure 1100
each licensed spirits distributor. Failure to file such reports
may result in the suspension or cancellation of this license.
(5) Spirits imported under this license must conform to
the provisions of RCW 66.28.100 and have received label
approval from the board. The board shall not certify spirits
labeled with names that may be confused with other
nonalcoholic beverages whether manufactured or produced
from a domestic distiller or imported nor spirits that fail to
meet quality standards established by the board.
(6)The license fee shall be one hundred sixty dollars per
year.
NEW SECTION. Sec. 18. A new section is added to
chapter 66.24 RCW to read as follows:
(1) Every person, firm, or corporation holding a license
to manufacture spirits within the state of Washington shall,
on or before the twentieth day of each month, furnish to the
board, on a form to be prescribed by the board, a statement
showing the quantity of spirits sold for resale during the
preceding calendar month to each spirits distributor within
the state of Washington.
(2)(a) A United States distiller or manufacturer of spirits,
located outside the state of Washington, must hold a
certificate of approval to allow sales and shipment of the
certificate of approval holder's spirits to licensed Washington
spirits distributors, importers, or retailers. A certificate of
approval holder with a direct shipment endorsement may act
as a distributor for spirits of its own production.
(b) Authorized representatives must hold a certificate
of approval to allow sales and shipment of United States
produced spirits to licensed Washington spirits distributors
or importers.
(c) Authorized representatives must also hold a certificate
of approval to allow sales and shipments of foreign
produced spirits to licensed Washington spirits distributors
or importers.
(3)The certificate of approval shall not be granted
unless and until such distiller or manufacturer of spirits
or authorized representative shall have made a written
agreement with the board to furnish to the board, on or
before the twentieth day of each month, a report under
oath, on a form to be prescribed by the board, showing the
quantity of spirits sold or delivered to each licensed spirits
distributor, importer, or retailer during the preceding month,
and shall further have agreed with the board that such
distiller of spirits or authorized representative and all general
sales corporations or agencies maintained by them, and all
of their trade representatives, corporations, and agencies,
shall and will faithfully comply with all laws of the state of
Washington pertaining to the sale of intoxicating liquors
and all rules and regulations of the board. A violation of the
terms of this agreement will cause the board to take action to
suspend or revoke such certificate.
(4)The fee for the certificate of approval and related
endorsements, issued pursuant to the provisions of this
title, shall be from time to time established by the board at
a level that is sufficient to defray the costs of administering
the certificate of approval program. The fee shall be fixed by
rule by the board in accordance with the provisions of the
administrative procedure act, chapter 34.05 RCW.
(5) Certificate of approval holders are deemed to have
consented to the jurisdiction of Washington concerning
105
enforcement of this chapter and all laws and rules related to
the sale and shipment of spirits.
Sec. 19. RCW 66.24.310 and 1997 c 321 s 17 are each
amended to read as follows:
(1) No person shall canvass for, solicit, receive, or take
orders for the purchase or sale of liquor, nor contact any
licensees of the board in goodwill activities, unless such
person shall be the accredited representative of a person,
firm, or corporation holding a certificate of approval issued
pursuant to RCW 66.24.270 ((srf)), 66.24.206, or section 18
pf this act, a beer distributor's license, a microbrewer's
license, a domestic brewer's license, a beer importer's
license, a domestic winery license, a wine importer's license,
a wine distributor's license a spirits distribut r' license a
distillers license. or a ((ovine dis'- 0 spirits importer's
license within the state of Washington, or the accredited
representative of a distiller, manufacturer, importer, or
distributor of {(sp art)) spirits, or foreign produced
beer or wine, and shall have applied for and received a
,,_PROVrnr VER ram..
representatives icense({. ���{}y�}yy�y,-�,�t))_
However. the provisions of this section shall not apply to
drivers who deliver beer ((of-)), wine, or spirits;
(2) Every representative's license issued under this title
shall be subject to all conditions and restrictions imposed
by this title or by the rules and regulations of the board; the
hoard, for the purpose of maintaining an orderly market,
may limit the number of representative's licenses issued for
representation of specific classes of eligible employers;
(3) Every application for a representative's license must
be approved by a holder of a certificate of approval issued
pursuant to RCW 66.24.270 ((sr)), 66.24.206, or section 18
of this act, a licensed beer distributor, a licensed domestic
brewer, a licensed beer importer, a licensed microbrewer,
a licensed domestic winery, a licensed wine importer, a
licensed wine distributor, or by a distiller, manufacturer,
importer, or distributor of ((spifi'tu€rufis+quor)) s ip nits, or
foreign produced beer ((e-r-))a wine, or sip rits, as the rules and
regulations of the board shall require;
(4)The fee for a representative's license shall be twenty-
five dollars per year((;
e d i te d -rep=="ative-o-f-�3tli{�FftYoi rura�rarcr�
01�sfre-h as a pp d4 !! artd eeei�i�sertt tides
1LLi r7�G5Vi't�
settv°ides-perfa frri�tg�e--ski-r#ttrotts-figvo�pr�dtrets) }.
Sec. 20. RCW 66.24.380 and 2005 c 151 s 10 are each
amended to read as follows:
There shall be a retailer's license to be designated as
a special occasion license to be issued to a not -for -profit
society or organization to sell spirits, beer, and wine by
the individual serving for on -premises consumption at a
specified event, such as at picnics or other special occasions,
at a specified date and place; fee sixty dollars per day.
0 )The not -for -profit society or organization is limited to
sales of no more than twelve calendar days per year. For the
purposes of this subsection, special occasion licensees that
are 1,agricultural area fairs" or "agricultural county, district,
and area fairs;' as defined by RCW 15.76.120, that receive a
special occasion license may, once per calendar year, count
as one event fairs that last multiple days, so long as alcohol
sales are at set dates, times, and locations, and the board
r,-
106
Initiative Measure 1100
receives prior notification of the dates, times, and locations.
The special occasion license applicant will pay the sixty
dollars per day for this event.
(2►The licensee may sell beer and/or wine in original,
unopened containers for off -premises consumption if
permission is obtained from the board prior to the event.
(3) Sale, service, and consumption of spirits, beer, and
wine is to be confined to specified premises or designated
areas only.
(4) (( )) Spirits sold under this special
occasion license must be purchased at a state liquor store or
contract liquor store (( )) or stare licensed by
the board at retail prices, including all taxes.
(5) Any violation of this section is a class 1 civil infraction
having a maximum penalty of two hundred fifty dollars as
provided for in chapter 7.80 RCW.
-Sec. 21. RCW 66.24.540 and 1999 c 129 s 1 are each
amended to read as follows:
There shall be a retailer's license to be designated as a
motel license., The motel license may be issued to a motel
regardless of whether it holds any other class of license
under this title. No license may be issued to a motel
offering rooms to its guests on an hourly basis. The license
authorizes the licensee to:
(1) Sell, at retail, in locked honor bars, spirits in individual
bottles not to exceed fifty milliliters, beer in individual
cans or bottles not to exceed twelve ounces, and wine in
individual bottles not to exceed one hundred eighty-seven
milliliters, to registered guests of the motel for consumption
in guest rooms.
(a) Each honor bar must also contain snack foods. No
more than one-half of the guest rooms may have honor bars.
(b) All spirits to be sold under the license must be
purchased from the board or from licensees authorized b
the board to self spirit .
(c)The licensee shall require proof of age from the guest
renting a guest room and requesting the use of an honor bar.
The guest shall also execute an affidavit verifying that no
one under twenty-one years of age shall have access to the
spirits, beer, and wine in the honor bar.
(2) Provide without additional charge, to overnight guests
of the motel, beer and wine by the individual serving for
on -premises consumption at a specified regular date, time,
and place as may be fixed by the board. Self-service by
attendees is prohibited. All beer and wine service must be
done by an alcohol server as defined in RCW 66.20.300 and
comply with RCW 66.20.310.
The annual fee for a motel license is five hundred dollars.
"Motel" as used in this section means a transient
accommodation licensed under chapter 70.62 RCW.
As used in this section, "spirits;' "beer;' and "wine" have
the meanings defined in RCW 66..04.010.
Sec. 22. RCW 66.24.590 and 2008 c 41 s 11 are each
amended to read as follows:
(1)There'shall be a retailer's license to be designated
as a hotel license. No license may be issued to a hotel
offering rooms to its guests on an hourly basis. Food
service provided for room service, banquets or conferences,
or restaurant operation under this license shall meet the
requirements of rules adopted by the board.
(2)The hotel license authorizes the licensee to:
(a) Sell (( )) spirits, beer, and wine, by the
individual glass, at retail, for consumption on the premises,
including mixed drinks and cocktails compounded and mixed
on the premises;
(b) Sell, at retail, from locked honor bars, in individual
units, spirits not to exceed fifty milliliters, beer in individual
units not to exceed twelve ounces, and wine in individual
bottles not to exceed three hundred eighty-five milliliters,
to registered guests of the hotel for consumption in guest
rooms. The licensee shall require proof of age from the
guest renting a guest room and requesting the use of an
honor bar. The guest shall also execute an affidavit verifying
that no one under twenty-one years of age shall have access
to the spirits, beer, and wine in the honor bar;
(c) Provide without additional charge, to overnight guests,
spirits, beer, and wine by the individual serving for on -
premises consumption at a specified regular date, time,
and place as may be fixed by the board. Self-service by
attendees is prohibited;
(d) Sell beer, including strong beer, wine, or spirits, in
the manufacturer's sealed container or by the individual
drink to guests through room service, o.r through service to
occupants of private residential units which are part of the
buildings or complex of buildings that include the hotel;
(e) Sell beer, including strong beer, or wine, in the
manufacturer's sealed container at retail sales locations
within the hotel premises;
(f) Sell for on or off -premises consumption, including
through room service and service to occupants of private
residential units managed by the hotel, wine carrying a label
exclusive to the hotel license holder;
(g) Place in guest rooms at check -in, a complimentary
'bottle of spirits, beer, including strong beer, or wine in a
manufacturer -sealed container, and make a reference to this
service in promotional material.
(3) If all or any facilities for alcoholic beverage service and
the preparation, cooking, and serving of food are operated
under contract or joint venture agreement, the operator may
hold a license separate from the license held by the operator
of the hotel. Food and beverage inventory used in separate
licensed operations at the hotel may not be shared and shall
be separately owned and stored by the separate licensees.
(4) All spirits to be sold under this license must be
purchased from licensees au h ri Eby the board to sell
spirits.
(5) All on -premise alcoholic beverage service must be done
by an alcohol server as defined in RCW 66.20.300 and must
comply with RCW 66.20.310.
(6)(a)The hotel license allows the licensee to remove from
the liquor stocks at the licensed premises, liquor for sale and
service at event locations at a specified date and place not
currently licensed by the board. If the event is open to the
public, it must be sponsored by a society or organization
as defined by RCW 66.24.375. If attendance at the event
is limited to members or invited guests of the sponsoring
individual, society, or organization, the requirement that
the sponsor must be a society or organization as defined by
RCW 66.24.375 is waived.
(b)The holder of this license shall, if requested by the
board, notify the board or its designee of the date, time,
Initiation Measure 1100
place, and location of any event. Upon request, the licensee
shall provide to the board all necessary or requested
information concerning the society or organization that will
be holding the function at which the endorsed license will be
utilized.
(c) Licensees may cater events on a domestic ((winery))
liquor manufacturer premises.
(7)The holder of this license or its manager may furnish
spirits, beer, or wine to the licensee's employees who are
twenty-one years of age or older free of charge as may be
required for use in connection with instruction on spirits,
beer, and wine. The instruction may include the history,
nature, values, and characteristics of spirits, beer, or wine,
the use of wine lists, and the methods of presenting, serving,
storing, and handling spirits, beer, or wine. The licensee
must use the beer or wine it obtains under its license for the
sampling as part of the instruction. The instruction must be
given on the premises of the licensee.
(8) Minors may be allowed in all areas'of the hotel where
alcohol may be consumed; however, the consumption must
be incidental to the primary use of the area. These areas
include, but are not limited to, tennis courts, hotel lobbies,
and swimming pool areas. If an area is not a mixed use area,
and is primarily used for alcohol service, the area must be
designated and restricted to access by minors.
(9)The annual fee for this license is two thousand dollars.
(10) As used in this section, "hotel, "spirits,"'beer;' and
"wine" have the meanings defined in RCW 66.24.410 and
66.04.010.
Sec. 23. RCW 66.28.040 and 2009 c 373 s 8 are each
amended to read as follows:
Except as permitted by the board under RCW 66.20.010,
no domestic brewery, microbrewery, distributor, distiller,
domestic winery, importer, rectifier, certificate of approval
holder, or other manufacturer of liquor shall, within the
state of Washington, give to any person any liquor; but
nothing in this section ((n -RGW 66.28:}}Q)) shall prevent
a domestic brewery, microbrewery, distributor, domestic
winery, distiller, certificate of approval holder, or importer
from furnishing samples of beer, wine, or ((sp4r4tttotva4itpf))
spirits to authorized licensees for the purpose of negotiating
a sale, in accordance with regulations adopted by the liquor
control board, provided that the samples are subject to
taxes imposed by RCW 66.24.290 and 66.24.210((, and
the e�ss a# s
Est-4�e-pe�rased�-raEaii-�rvy-prodtit+-us--�-rrr-this
sectionml prevErrt t` c fo,, �i3rmzga#}e#igrto
the board
rtet� selerr8r
t"the ei:'sm)); nothing in this section
shall prevent a domestic brewery, microbrewery, domestic
winery;distillery, certificate of approval holder, or distributor
from furnishing beer, wine, or SSA
for instructional purposes under RCW 66.28,150; nothing in
this section shall prevent a domestic winery, certificate of
approval holder, or distributor from furnishing wine without
charge, subject to the taxes imposed by RCW 66.24.210, to
a not -for -profit group organized and operated solely for the
purpose of enology or the study of viticulture which has been
in existence for at least six months -and that uses wine so
furnished solely for such educational purposes or a domestic
winery, or an out-of-state certificate of approval holder, from
1
107
furnishing wine without charge or a domestic brewery, or an
out-of-state certificate of approval holder, from furnishing
beer without charge, subject to the taxes imposed by RCW
66.24.210 or 66.24.290, or a domestic distiller licensed under
RCW 66.24.140 or an accredited representative of a distiller,
manufacturer, importer, or distributor of ((sear))
spirits licensed under RCW 66.24.310, from furnishing spirits
without charge, to a nonprofit charitable corporation or
association exempt from taxation under section 501(c)(3) or
(6) of the internal revenue code of 1986 (26 U.S.C. Sec. 501(c)
(3) or (6)) for use consistent with the purpose or purposes
entitling it to such exemption; nothing in this section shall
prevent a domestic brewery or microbrewery from serving
beer without charge, on the brewery premises; nothing in
this section shall prevent donations of wine for the purposes
of RCW 66,12.180; nothing in this section shall prevent a
domestic winery from serving wine withoutcharge, on the
winery premises; and 'nothing in this section shall prevent a
distillery from serving spirits without charge, on the distillery
premises subject to (�RCaAt �C��•)3 section 15 of this act.
Sec. 24. RCW 66.28.060 and 2008 c 94 s 7 are each
amended to read as follows:
Every distillery licensed under this title shall make monthly
reports to the board pursuant to the regulations. No such
distillery shall make any sale of spirits within the state of
Washington except ((tc t z;p a a;as '- n^1�'
�� �� ,�� p+`
vo:z4 45)) as provided in this title.
Sec. 25. RCW 66.28.280 and 2009 c 506 s 1 are each
amended to read as follows:
�errt-
t%i`�a�iBr�V
distribrrtirrg; and ratai+itiq are d+sti�et a �nftrsn eiei
Fe !a! ionsh
s tsaet;�„s b�tv��s
ice -these tsers a�� re tt+fft� �, � lr�sbfe spsear—r4rsr- the
dtstfi���f-bee�rr���The
eg+sEstttretr�ti�er
recognizealfrat))The historical total prohibition on ownership
of an interest in one tier by a person with an ownership
interest in another tier, as well as the historical restriction on
financial incentives and business relationships between tiers,
is unduly restrictive. The Wegis+attt� tKe-rdf4cati&ns-
g-of-�999-are--apRr`�riate:
------ `- medirf --'` ns do)) people find that liquor
regulations should not impermissibly interfere with the goals
of orderly marketing of alcohol in the state, encouraging
moderation in consumption of alcohol by the citizens of the
state, protecting the public interest and advancing public
safety by preventing the use and consumption of alcohol by
minors and other abusive consumption, and promoting the
efficient collection of taxes by the state.
NEW SECTION. Sec. 26. A new section is added to
chapter 66.28 RCW to read as follows:
(1) Licensees may not sell spirits below the cost of
acquisition or production of such spirits, except in,the case
of a "close-out" item, if the item to be discontinued has been
in inventory for a period of at least six months, and upon the
further condition that the licensee who offers such a close-
out price shall not restock the item for a period of one year
following the first effective date of such close-out price.
(2) No licensed manufacturer, producer, supplier, importer,
wholesaler, distributor, authorized representative, certificate
Initiative Measure 1100
of approval holder, warehouse, or any of its affiliates,
subsidiaries, officers, directors, partners, agents, employees,
and representatives shall provide and no retailer shall
receive branded promotional items which are targeted to
or appeal principally to youth. Such items include but are
not limited to: Trays, lighters, blotters, postcards, pencils,
coasters, menu cards, meal checks, napkins, clocks, mugs,
glasses, bottles or can openers, corkscrews, matches, printed
recipes, shirts, hats, visors, and other similar items.
NEW SECTION. Sec. 27. A new section is added to
chapter 66.32 RCW to read as follows:
Except as permitted by the board, no liquor shall be kept
or had by any person within this state unless the package
in which the liquor was contained had, while containing
that liquor, been sealed with the official seal adopted by the
board, except (1) liquor manufactured in the state for export,
(2) beer, purchased in accordance with the provisions of law,
or (3) wine or beer exempted in RCW 66.12.010.
Sec. 28. RCW 66.44.150 and 1955 c 289 s 5 are each
amended to read as follows:
If any person in this state buys alcoholic beverages from
any person other than the board, a state liquor store, or
((sorne person)) a licensee authorized by the board to sell
them, he ((shag be)) or she is guilty of a misdemeanor.
Sec. 29. RCW 66.44.160 and 1955 c 289 s 6 are each
amended to read as follows:
Except as otherwise provided in this title, any person who
has or keeps or transports alcoholic beverages other than
those purchased from the board, a state liquor store, or
((saute -person)) a licensee authorized by the board to sell
them((, shall be)) is guilty of a violation of this title.
NEW SECTION. Sec. 30. A new section is added to
chapter 66.44 RCW to read 'as follows:
Employees between the ages of eighteen and twenty-one
of licensees may stock, merchandise, and handle spirits
under the same conditions for handling beer or wine under
RCW 66.44.318 and 66.44.340.
NEW SECTION. Sec. 31. A new section is added to
chapter 66.44 RCW to read as follows:
Nothing in this act is intended to restrict the authority of
cities and counties to enact or enforce land use regulations
governing where liquor may be sold.
NEW SECTION. Sec. 32. A new section is added to
chapter 66.44 RCW to read as follows:
(1) Within ninety days of the effective date of this
section, the board shall have formulated a plan and begun
implementing such plan to terminate the system of state
liquor stores and liquor distribution and dispose of assets no
longer useful to the board's mission under the terms of this
a ct.
(2) State liquor stores may not sell liquor after December
31, 2011. The state liquor distribution unit may not purchase,
or accept for bailment, any liquor after December 31, 2011.
Any inventory of unsold liquor which remains after this date
shall be returned to the supplier or sold at auction.
(3)(a) As of the effective date of this section, any licensee
in good standing who has a beer and/or wine grocery store
license or a beer and/or wine specialty store license, and
are not restricted from selling strong beer or fortified wine,
beginning June 1, 2011, shall be granted an upgrade of their
license to a general liquor retail license, to include the sale
of spirits, valid until the next renewal date for the existing
license upon paying the one-time application fee of one
thousand dollars.
(b) As of the effective date of this section, licensees in
good standing who have an existing license to distribute
liquor as of January 1, 2011, shall be granted a general liquor
distributor's license, to include the distribution of spirits,
valid until the next renewal date for the existing license upon
paying the one-time application fee of two thousand dollars.
(c) As of the effective date of this section, any supplier of
spirits to the board and their authorized representatives who
meet the other qualifications for a certificate of approval
under section 18 of this act as of January 1, 2011, shall be
granted a certificate of approval upon payment of a two
hundred dollar fee.
,(4) As of the effective date of this section, the board
shall not renew or extend contracts with existing contract
liquor store operators and shall use all lawful means
for terminating existing contracts with existing contract
liquor store operators. In exchange for relinquishing any
rights under contracts to sell liquor, contract liquor store
operators in good standing may choose to receive a general
liquor retailer's license valid through December 31, 2012,
without payment of any fee, and shall be exempt from the
application fee upon renewal. The board shall notify existing
contract liquor store operators of the choice available under
this subsection within thirty days of the effective date of this
section and any choice to receive a general liquor retailer's
license under this subsection must be made within ninety
days of the effective date of this section.
NEW SECTION. Sec. 33. A new section is added to
chapter 82.08 RCW to read as follows:
There is levied and collected a tax upon each sale of spirits
in the original package at the rate of ten percent of the selling
price on sales by spirits retailer and distributor licensees to
spirits, beer, and wine restaurant licensees.
Sec. 34. RCW 82.08.160 and 1982 1st ex.s. c 35 s 4 are
each amended to read as follows:
On or before the twenty-fifth day of each month, all taxes
collected under RCW 82.08.150-t} n_section 33�r f this act
during the preceding month ((sha")) must be remitted to
the ((state►) department ((of reventie)), to be deposited with
the state treasurer. Upon receipt of such moneys the state
treasurer ((s#�)) must credit sixty-five percent of the sums
collected and remitted under RCW 82.08.150 (1) and (2) and
section 33 of this act and one hundred percent of the sums
collected and remitted under RCW 82.08.150 (3) and (4) to
the state general fund and thirty-five percent of the sums
collected and remitted under RCW 82.08.150 (1) and (2) and
_ tion 33 of this act to a fund which is hereby created to be
known as the "liquor excise tax fund'
NEW SECTION. Sec. 35. The following acts or parts of
acts are each repealed:
(1) RCW 66.24.145 (Craft distillery --Sales and samples of
spirits) and 2010 c 290 s 2 & 2008 c 94 s 2; and
(2) RCW 66.32.010 (Possession of contraband liquor) and
1955 c 39 s 3.
(3) RCW 66.28.010 (Manufacturers, importers, distributors,
Initiative Measure 1100
and authorized representatives barred from interest in
retail business or location --Advances prohibited --"Financial
interest" defined --Exceptions) and 2009 c 373 s 5 & 2008 c 94
s 5;
(4) RCW 66.28.170 (Wine or malt beverage manufacturers-
-Discrimination in price to purchaser for resale prohibited)
and 2004 c 160 s 17, 1997 c 321 s 50, & 1985 c 226 s 3;
(5) RCW 66.28.180 (Price list--Contents--Contracts and
memoranda with distributors) and 2009 c 506 s 10, 2006 c
302 s 10, & 2005 c 274 s 327;
(6) RCW 66.28.285 (Three-tier system --Definitions) and
2009 c 506 s 2;
(7) RCW 66.28.290 (Three-tier system --Direct or indirect
interests between industry members, affiliates, and retailers)
and 2009 c 506 s 3;
(8) RCW 66.28.295 (Three-tier system --Direct or indirect
interests --Allowed activities) and 2009 c 506 s 4;
(9) RCW 66.28.300 (Three-tier system --Undue influence --
Determination by board) and 2009 c 506 s 5;
(11) RCW 66.28.305 (Three-tier system --Money advances --
Prohibition) and 2009 c 506 s 6;,
(12)RCW 66.28.310 (Three-tier system --Promotional items)
and 2010 c 290 s 3, 2010 c 141 s 2, & 2009 c 506 s 7;
(13)RCW 66.28.315 (Three-tier system--Recordkeeping)
and 2009 c 506 s 8;
(14)RCW 66.28.320 (Three-tier system --Rule adoption) and
2009 c 506 s 9; and
(15) RCW 66.32.010 (Possession of contraband liquor) and
1955c39s3.
NEW SECTION. Sec. 36. The following acts or parts of
acts are each repealed:
(1) RCW 66.12.110 (Duty-free alcoholic beverages for
personal use) and 1999 c 281 s 3 & 1975-76 2nd ex.s. c 20 s
1; and
(2) RCW 66.12.120 (Bringing alcoholic beverages into state
from another state --Payment of markup and tax) and 1995 c
100 s 1 & 1975 1st ex.s. c 173 s 3;
NEW SECTION. Sec. 3Z The following acts or parts of
acts are each repealed:
(1) RCW 66.08.026 (Appropriation and payment of
administrative expenses from liquor revolving fund -
"Administrative expenses" defined) and 2008 c 67 s 1, 2005
c151 s 2, 2004 c 63 s 1, 2001 c 313 s 1, 1998 c 265 s 2, 1997 c
148 s 1, 1996 c 291 s 3, 1983 c 160s 2, 1963 c 239 s 1., &1961
ex.s. c 6 s 4;
(2) RCW 66.08.030 (Regulations --Scope) and 2002 c 119 s 2,
1977 ex.s. c 115 s 1, 1971 c 62 s 1, 1943 c 102 s 1, & 1933 ex.s.
c 62 s 79;
(3) RCW 66.08.050 (Powers of board in general) and 2005
c 151 s 3, 1997 c 228 s 1, 1993 c 25 s 1, 1986 c 214 s 2, 1983 c
160 s 1, 1975 1st ex.s. c 173 s 1, 1969 ex.s. c 178 s 1, 1963 c
239 s 3, 1935 c 174 s 10, & 1933 ex.s. c 62 s 69;
(4) RCW 66.08.070 (Purchase of liquor by board --
Consignment not prohibited --Warranty or affirmation not
required for wine or malt purchases) and 1985 c 226 s 2, 1973
1st ex.s. c 209 s 1, & 1933 ex.s. c 62 s 67;
(5) RCW 66.08.075 (Officer, employee not to represent
manufacturer, wholesaler in sale to board) and 1937 c 217 s
5;
(6) RCW 66.08.165 (Strategies to improve operational
efficiency and revenue) and 2005 c 231 s 1;
109
(7) RCW 66.08.166 (Sunday sales authorized --Store
selection and other requirements) and 2005 c 231 s 2;
(8) RCW 66.08.167 (Sunday sales --Store selection) and
2005 c 231 s 4;
(9) RCW 66.08.220 (Liquor revolving fund --Separate
account --Distribution) and 2009 c 271 s 4, 2007 c 370 s 15,
1999c281 s 2, & 1949 c 5 s 11;
(10) RCW 66.08.235 (Liquor control board construction and
maintenance account) and 2005 c 151 s 4, 2002 c 371 s 918, &
1997 c 75 s 1;
(11) RCW 66.16.010 (Board may establish --Price standards-
-Prices in special instances) and 2005 c 518 s 935, 2003 1st
sp.s. c 25 s 928, 1939 c 172 s 10, 1937,c 62 s 1, & 1933 ex.s. c
62 s 4;
(12) RCW 66.16.040 (Sales of liquor by employees-
-Identification cards --Permit holders --Sales for cash --
Exception) and 2005 c 206 s 1, 2005 c 151 s 5,,2005 c 102 s 1,
2004 c 61 s 1, 1996 c 291 s 1, 1995 c 16 s 1, 1981 1st ex.s. c 5 s
8, 1979 c 158 s 217, 1973 1st ex.s. c 209 s 3, 1971 ex.s. c 15 s 1,
1959 c 111 s 1, & 1933 ex.s. c 62 s 7;
(13) RCW 66.16.041 (Credit and debit card purchases --
Rules --Provision, installation, maintenance of equipment
by board --Consideration of offsetting liquor revolving fund
balance reduction) and 2005 c 151 s 6, 2004 c 63 s 2, 1998 c
265 s 3, 1997 c 148 s 2, & 1996 c 291 s 2;
(14) RCW 66.16.050 (Sale of beer and wine to person
licensed to sell,) and 1933 ex.s. c 62 s 8;
(15) RCW 66.16.060 (Sealed packages may be required,
exception) and 1943 c 216 s 1 & 1933 ex.s. c 62 s 9;
(16) RCW 66.16.070 (Liquor cannot be opened or
consumed on store premises) and 1933 ex.s. c 62 s 10;
(17) RCW 66.16.090 (Record of individual purchases
confidential --Penalty for disclosure) and 1933 ex.s. c 62 s 89;
(18) RCW 66.16.100 (Fortified wine sales) and 1997 c 321 s
42 & 1987 c 386 s 5;
(19) RCW 66.16.110 (Birth defects from alcohol --Warning
required) and 1993 c 422 s 2;
(20) RCW 66.16.120 (Employees working on Sabbath) and
2005 c 231 s 5;
(21) RCW 66.24.440 (Liquor by the drink, spirits, beer, and
wine restaurant, spirits, beer, and wine private club, hotel,
spirits, beer, and wine nightclub, and sports entertainment
facility license --Purchase of liquor by licensees --Discount)
and 2009 c 271 s 8, 2007 c 370 s 20, 1998 c 126 s 8, 1997 c 321
s29,&1949c5s5;and
(22) RCW 66.28.045 (Furnishing samples to board --
Standards for accountability --Regulations) and 1975 1st ex.s.
c173s9;
NEW SECTION. Sec. 38. Section 10 and 36 of this act
take effect on June 1, 2011.
NEW SECTION. Sec. 39. Section 2, 4 through 8 and 37 of
this act take effect on December 31, 2011.
NEW SECTION. Sec. 40. If any provision of this act or
its application to any person or circumstance is held invalid,
the remainder of the act or the application of the provision to
other persons or circumstances is not affected.
-- END --
Initiative Measure 1105
Complete Text
Initiative Measure 1105
AN ACT Relating to privatizing the sale of spirits; amending
RCW 66.08.050, 66.24.310, 66.28.030, 66.28.070, 66.28.180,
66.28.170, 66.28.190, 66.08.020, 66.08.026, 66.08.030,
66.24.145, 66.24.160, 66.28.060, and 66.44.120; reenacting
and amending RCW 66.04.010; adding new sections to
chapter 66.24 RCW; adding a new section to chapter 66.28
RCW; creating new sections; repealing RCW 66.08.070,
66.08.075, 66.08.160, 66.08.165, 66.08.166, 66.08.167,
66.08.220, 66.08.235, 66.16.010, 66.16.040, 66,16.041,
66.16.050, 66.16.060, 66.16.070, 66.16.100, 66.16.110,
66.16.120, 66.28.045, and 82.08.150; and providing an
effective date.
BE IT ENACTED BYTHE PEOPLE OFTHE STATE OF
WASHINGTON:
PART I
RETAIL SALE OF SPIRITS
NEW SECTION. Sec. 101. (1)The people of the state
of Washington intend for privatization of spirits retail and
distribution to result in a system that is more efficient than
public sector retail and distribution of spirits. The people
intend, therefore, that the privatization of spirits retail and
distribution not result in revenue losses to state or local
governments. The people further intend to provide for an
orderly transition from the current state control system to a
privatized system of spirits retail and distribution.
(2) Persons holding a spirits distributor license may
commence sale of spirits on October 1, 2011. Persons
holding a spirits retailer license may commence sale of
spirits on November 1, 2011. The state of Washington must
cease operation of all state liquor stores no later than April
1, 2012. The liquor control board must make a good faith
effort to sell all inventory and assets of state liquor stores
and distribution centers to buyers no later than April 1, 2012.
The liquor control board is directed to take all necessary
measures to effect an orderly transition from the current
state control system to a privatized system of spirits retail
and distribution by April 1, 2012, including, if necessary, a
report to the legislature on further necessary legislation,
which may include provision for the retraining of any state
worker displaced by the privatization of spirits retail or
distribution. The liquor control board is further directed
to issue a rule, in accordance with the provisions of the
administrative procedure act, chapter 34.05 RCW, to govern
the sale of spirits to tribes on terms consistent with and no
less favorable to tribes than those reflected in WAC 314-37-010.
(3)The people direct the liquor control board to present
a report to the legislature by January 1,'2011, on a
recommended rate of taxation, to be calculated at a per -liter
basis and to be paid by spirits distributors, on all spirits sold
to spirits distributors within the state. The liquor control
board is directed to recommend a rate of taxation that,
along with other spirits -related revenue sources, would
project to generate at least the same annual revenue for
the state and local jurisdictions as under the current state
control system, as well as at least an additional one hundred
million dollars in projected revenue net of expenses of
operating the business over the entire course of the five-year
period commencing November 1, 2011. In recommending
a proposed rate of taxation, the liquor control board must
consider that there will be other spirits -related revenue
including, without limitation: Anticipated business and
occupation tax revenue under chapter 82.04 RCW, generated
by privatized spirits retail and distribution; the increased
taxable spirits inventory base generated by taxing spirits at
the distributor level; proceeds from the issuance of spirits
retailer licenses and spirits distributor licenses under sections
102 and 103 of this act; and annual spirits license fees,
NEW SECTION. Sec. 102. A new section is added to
chapter 66.24 RCW to read as follows:
(1 )There is a spirits retailer license to sell spirits at retail
in original containers, not to be consumed on the premises
where sold.
(2)The people of the state of Washington desire to have
greater availability of spirits and a more convenient shopping
experience than is currently available to them through the
present control system. The people also desire to retain a
high degree of security and public safety in the handling and
sale of all alcoholic beverages.
(a)The liquor control board is hereby directed to develop
criteria for the issuance of spirits retailer licenses to applicants
who can demonstrate the ability to provide the same level
of security and safety as that which the citizens of this state
have come to expect from their state -operated retail stores.
In considering applicants, emphasis should be placed on
inventory management systems, employee training, employee
supervision, and physical security of the product.
(b) Notwithstanding (a) of this subsection, the liquor
control board is encouraged to, in the exercise of its
discretion, make spirits retailer licenses available to
existing contract liquor stores who desire to privatize their
businesses.
(3) No later than July 1, 2011, the liquor control board is
directed to notify all qualifying license applicants so that they
may make the necessary preparations to begin sales on or
after November 1, 2011.
(4) Each licensee obtaining a spirits retailer license from
the liquor control board must agree to pay to the liquor
control board, for deposit into the state general fund, an
amount equivalent of six percent of the licensee's gross
annual spirits sales for a five-year period commencing on the
date of the licensee's first sale of spirits. The liquor control
board shall establish rules setting forth the frequency and
timing of such payments and reporting of sales volume by
the licensee.
(5) In addition to the payment set forth in subsection (4)
of this section, each licensee must pay an annual license
fee. The liquor control board must fix a reasonable annual
license fee for the spirits retailer license issued pursuant to
the provisions of this title. The liquor control board may,
from time to time, make a reasonable adjustment to the
annual fee for the spirits retailer license. Any such revision
to the annual fee must be fixed by rule by the liquor control
board in accordance with the provisions of the administrative
procedure act, chapter 34.05 RCW,
Initiative Measure 1105
NEW SECTION. Sec. 103. A new section is added to
chapter 66.24 RCW to read as follows:
(1)There is a license for spirits distributors to sell spirits,
purchased from manufacturers, distillers, or suppliers,
including licensed Washington distilleries, licensed spirits
importers, or suppliers of foreign spirits located outside of
the United States, to any person holding a license to sell
spirits under this chapter including: Spirits retailer license
holders; special occasion license holders; interstate common
carrier license holders; spirits, beer, and wine restaurant
license holders; spirits, beer, and wine private club license
holders; hotel license holders; sports entertainment facility
license holders; spirits, beer, and wine nightclub license
holders; and other spirits distributors and to export the same
from the state.
(2) No later than July 1, 2011, the liquor control board is
directed to make spirits distributor licenses available to all
applicants who have an appointment by or are agents of a
spirits manufacturer, spirits distiller, or spirits supplier to
distribute products in the state, unless the liquor control
board determines that issuance of a license to such applicant
is not in the public interest.
(3) Each licensee obtaining a spirits distributor license
from the liquor control board must agree to pay to the liquor
control board, for deposit into the state general fund, an
amount equivalent of one percent of the licensee's gross
annual spirits sales for a five-year period commencing on the
date of the licensee's first sale of spirits. The liquor control
board must establish rules setting forth the frequency and
timing of such payments and reporting of'sales volume by
the licensee.
(4) In addition to the payment set forth in subsection (3) of
this section, each licensee must pay an annual license fee.
The liquor control board must fix a reasonable annual license
fee for the spirits distributor license issued pursuant to the
provisions of this title. The liquor control board may, from
time to time, make a reasonable adjustment to the annual
fee for the spirits distributor license. Any such revision to
the annual fee must be fixed by rule by the liquor control
board in accordance with the provisions of the administrative
procedure act, chapter 34.05 RCW.
(5)The provisions of RCW 19.126.030, 19.126.040,
19.126.050, and 19.126.060 govern the relationship between
spirits distributors and suppliers.
(6) Nothing in this section may be construed to allow a
distiller subject to licensing under RCW 66.24.140 to obtain a
certificate of approval with a direct shipment endorsement or
to otherwise act as distributor of its own production.
Sec. 104. RCW 66.08.050 and 2005 c 151 s 3 are each
amended to read as follows:
The board, subject to the provisions of this title and the
rules, shall:
mac. (1)((13oti-ne.,--t,.#r!_e•Ic�eal•+tres--wi-t; -f� •'-�,-s�<yat�r-
��VrE$'STTO1'F- �t�sto b1i rGd-Tnumberrfi�t� t'P LG, of 1V�7-TL'�
7 s' . �. r , c. _ �
�lii! pTilJfi-OTTCTC'�[[7 rt'� i ir7ZQLTT"maFi�` 7 ,
tics _ d towns and .tier�`efl9nit3ri1t1E3-
n, which no ststedi�t�etstore-is teeaced esr�t�f
�,�.,•: -.. � 13oarEf�ra�rap�a "`3'"" .off
$t$ica�r racrvTiivrr[rTE trit;"FfTit� u-i-3c� c`[i
�txrer�ret--else-art antrfact��r•-ps--
111
fflTer iTTar-nYrP.f -pTfLZS'I3C-UnpZr�I,
�}t}q•rr�r�t�-rpey-�-fey-t#re-pat�ase-sf'safe-,e#-l-itt��``�t`a�tsC�.rf�' y�
�L pj�gp�ffl _..�--auk-r�zefii�trr-�r er-
the gui
wovided by
e$'rtt�$r jtCn-GJ 3iTQTl' �g
e9l
tee�ri-re;
and
bo*Fing, diiutt at i-re of stock Olt €yr-#ke-
(4) ProQid-to-exceed
f�-ises-�egrrir�d-#er-tf�-ear�>za a�-vf-tr+�
business efrd Apr
v"�-n}h eir fu""s��irr 3 fix{tir�3-d
rTfl-stf �kiea; aTro� vr-vcn�•it�i�-
i5$f'fefiEiltlBiv{avci ca3c3 he term -
o serer leases Fri s#f et�rer- es eetssire}f o e-
diree tio�- o�#�re-Isgar�;
--i5W Determine the nature, form and capacity of all
packages to be used for containing liquor kept for sale under
this title;
N61)) 0 Execute or cause to be executed, all contracts,
papers, and documents in the name of the board, under such
regulations as the board may fix;
((f7h))11 Pay all customs, duties, excises, charges and
obligations whatsoever relating to the business of the board;
(({83)) ll Require bonds from all employees in the
discretion of the board, and to determine the amount of
fidelity bond of each such employee;
((f9j)) L51 Perform services for the state lottery commission
to such extent, and for such compensation, as may
be mutually agreed upon between the board and the
commission;
(()) llAccept and deposit into the general fund -local
account and disburse, subject to appropriation, federal
grants or other funds or donations from any source for the
purpose of improving public awareness of the health risks
associated with alcohol consumption by youth and the abuse
of alcohol by adults in Washington state. The board's alcohol
awareness program shall cooperate with federal and state
agencies, interested organizations, and individuals to effect
an active public beverage alcohol awareness program;
(({ })) 7 Negotiate a Teem nts at the request of any
federally recognized Indian tribe located in the state to
replace any Iiguor tax compact existing on the effective
date of this section with an ag reement to share amounts
e uivalent to I uor taxes collected by the state on sales
within the reservation for that federally recognized tribe
at er enta es comparable to the cam a is entered into
pursuant to RCW 82.36.450;
181 Perform all other matters and things, whether similar to
the foregoing or not, to carry out the provisions of this title,
and shall have full power to do each and every act necessary
to the conduct of its business, including all buying, selling,
preparation and approval of forms, and every other function
of the business whatsoever, subject only to audit by the state
auditor: PROVIDED,That the board shall have no authority
to regulate the content of spoken language on licensed
premises where wine and other liquors are served and where
there is not a clear and present danger of disorderly conduct
112
being provoked by such language.
Initiative Measure 1105
Sec. 105. RCW 66.24.310 and 1997 c 321 s 17 are each
amended to read as follows:
(1) No person shall canvass for, solicit,, receive, or take
orders for the purchase or sale of liquor, nor contact any
,licensees of the board in goodwill activities, unless such
person shall be the accredited representative of a person,
firm, or corporation holding a certificate of approval issued
pursuant to RCW 66.24.270 or 66.24.206, a beer distributor's
license, a microbrewer's license, a domestic brewer's license,
a beer importer's license, a domestic winery license, a wine
importer's license, or a wine distributor's license within the
state of Washington, or the accredited representative of a
distiller, manufacturer, importer, or distributor of spirituous
liquor, or foreign produced beer or wine, and shall have
applied for and received a representative's license((-
nori" PAE- ``Efl-,TT,9t)) However, the provisions of
this section shall not apply to drivers who deliverspirits,
beer, or wine;
(2) Every representative's license issued under this title
shall be subject to all conditions and restrictions imposed
by this title or by the rules and regulations of the board; the
board, for the purpose of maintaining an orderly market,
may limit the number of representative's licenses issued for
representation of specific classes of eligible employers;
(3) Every application for a representative's license must
be approved by a holder of a certificate of approval issued
pursuant to RCW 66.24.270 or 66.24.206, a licensed beer
distributor, a licensed domestic brewer, a licensed beer
importer, a licensed microbrewer, a licensed domestic
winery, a licensed wine importer, a licensed wine distributor,
or by a distiller, manufacturer, liquor importer, or spirits
distributor (( )), or foreign produced beer
or wine, as the rules and regulations of the board shall
require;
(4)The fee for a representative's license shall be twenty-
five dollars per year((;
+ieei�se eafr
activ 1i paef-Predaets))•
Sec. 106. RCW 66.28.030 and 2004 c 160 s 10 are each
amended to read as follows:
Every domestic distillery, brewery and microbrewery,
domestic winery, certificate of approval holder, licensed
liquor importer, licensed wine importer, and licensed beer
importer shall be responsible for the conduct of any licensed
spirits, bee, or wine distributor, in selling, or contracting to
sell, to retail licensees, spirits, beer, or wine manufactured by
such domestic distillery, brewery, microbrewery, domestic
winery, manufacturer holding a certificate of approval, sold
by an authorized representative holding a certificate of
approval, or imported by such liquor, bee, or wine importer.
Where the board finds that any licensed spirits, bee, or wine
distributor has violated any of the provisions of this title or,
of the regulations of the board in selling or contracting to
sell sprits, beer,, or wine to retail licensees, the board may,
in addition to any punishment inflicted or imposed upon
such distributor, prohibit the sale of the brand or brands of
spirits, beer, or wine involved in such violation to any or all
retail licensees within the trade territory usually served by
such distributor for such period of time as the board may
fix, irrespective of whether the distiller manufacturing such
spirits or the liquor importer importing such spirits brewer
manufacturing such bee, or the beer importer importing
such beer, or the domestic winery manufacturing such wine,
or the wine importer importing such wine, or the certificate
of approval holder manufacturing such spirits, beer, or wine
or acting as authorized representative actually participated in
such violation.
Sec. 107. RCW 66.28.070 and 2006 c 302 s 8 are each
amended to read as follows:
(1) Except as provided in subsection (2) of this section, it
shall be unlawful for any retail spirits, beer, or wine licensee
to purchase spirits, beer, or wine, except from a duly licensed
distributor, domestic winery, domestic brewer, or certificate
of approval holder with a direct shipment endorsement((
the beard)).
(2) A spirits, beer, or wine retailer licensee may purchase
spirits, bee, or wine from a government agency which has
lawfully seized spirits, bee, or wine from a licensed spirits,
bee, or wine retailer, or from a board -authorized retailer, or
from a licensed retailer which has discontinued business if
the distributor has refused to acceptspirits, bee, or wine
from that retailer for return and refund. Spirits, bee, and
wine purchased under this subsection shall meet the quality
standards set by its manufacturer.
(3) Special occasion licensees holding a special occasion
license may only purchases irits bee, or wine from a
spirits, bee, or wine retailer duly licensed to sell spirits, bee,
or wine for off -premises consumption((, the boa;)) or from
a duly licensed spirits, bee, or wine distributor.
Sec. 108. RCW 66.28.180 and 2009 c 506 s 10 are each
amended to read as follows:
(1) Spirits, bee, and wine distributors.
(a) Every spirits, bee, or wine distributor shall maintain at
its liquor licensed location a price list showing the wholesale
prices at which any and all brands of spirits, bee, and wine
sold by such spirits, bee, and/or wine distributor shall be
sold to retailers within the state.
(b) Each price list shall set forth:
(i) All brands, types, packages, and containers of spirits,
bee, or wine offered for sale by such spirits, bee, and/or
wine distributor; and
(H)The wholesale prices thereof to retail licensees,
including allowances, if any, for returned empty containers.
(c) No spirits, bee, and/or wine distributor may sell or offer
to sell any package or container of spirits, bee,_ or wine to
any retail licensee at a price differing from the price for such
package or container as shown in the price list, according to
rules adopted by the board.
(d) With the exception of quantity discounts on spirits
quantity discounts are prohibited. No price may be below
acquisition cost.
(e) Distributor prices on a "close-out" item shall be allowed
if the item to be discontinued has been listed for a period of
at least six months, and upon the further condition that the
Initiative Measure 1105
distributor who offers such a close-out price shall not restock
the item for a period of one year following the first effective
date of such close-out price.
(f) Any p iri s bee, and/or wine distributor or employee
authorized by the distributor -employer may sellspirits, beer,
and/or wine at the distributor's listed prices to any annual
or special occasion retail licensee upon presentation to the
distributor or employee at the time of purchase of a special
permit issued by the board to such licensee.
(g) Every annual or special occasion retail licensee, upon
purchasing any spirits, bee, and/or wine from a distributor,
shall immediately cause such spirits, beer, or wine to be
delivered to the licensed premises, and the licensee shall not
thereafter permit such spirits, wine or beer to be disposed of
in any manner except as authorized by the license.
(h) Spirits, beer, and wine sold as provided in this section
shall be delivered by the distributor or an authorized
employee either to the retailer's licensed premises or directly
to the retailer at the distributor's licensed premises. When
a domestic winery, brewery, microbrewery, or certificate of
approval holder with a direct shipping endorsement is acting
as a distributor of its own production, a licensed retailer
may contract with a common carrier to obtain the product
directly from the domestic winery, brewery, microbrewery,
or certificate of approval holder with a direct shipping
endorsement. A distributor's prices to retail licensees shall
be the same at both such places of delivery.
(2) Spirits, bee, and wine suppliers' contracts and
memoranda.
(a) Every domestic brewery, microbrewery, domestic
winery, certificate of approval holder, and spirits, bee, and/
or wine, importer offeringspirits, bee, and/or wine for sale
within the state and any spirits, bee, and/or wine distributor
who sells to other spirits, bee, and/or wine distributors
shall maintain at its'liquor licensed location a price list and a
copy of every written contract and a memorandum of every
oral agreement which such brewery or winery may have
with any spirits, bee, or wine distributor, which contracts or
memoranda shall contain:
(i) All advertising, sales and trade allowances, and
incentive programs; and
(ii) All commissions, bonuses or gifts, and any and all other
discounts or allowances.
(b) Whenever changed or modified, such revised contracts
or memoranda shall also be maintained at its liquor licensed
location.
(c) Each price list shall set forth all brands, types, packages,
and containers of beer or wine offered for sale by such
licensed brewery or winery.
(d) Prices of a domestic distillery, brewery, microbrewery,
domestic winery, or certificate of approval holder shall be
uniform prices to all distributors or retailers on a statewide
basis less bona fide allowances for freight differentials.
With the exc�tian f quantity discounts on soiritst
-quantity discounts are prohibited. No price shall be below
acquisition/production cost.
(e) A domestic distillery. brewery, microbrewery, domestic
winery, certificate of approval holder, s nts bee, or
wine importer, or spirits' bee, or wine distributor acting
as a supplier to another distributor must file a distributor
113
appointment with the board that identifies each distributor
who is authorized to distribute its products The dis ributor
appointment must fist all brands that each distributor is
authorized tv distribut No distributor may offer r sale any
ryroducts for a supplier unless that supl2lier has first filed a
distributor appointment with the board.
(f) No domestic brewery, microbrewery, domestic winery,
or certificate of approval holder may sell or offer to sell
any package or container of beer or wine to any distributor
at a price differing from the price list for such package or
container as shown in the price list of the domestic brewery,
microbrewery, domestic winery, or certificate of approval
holder and then in effect, according to rules adopted by the
board.
Sec. 109. RCW 66.28.170 and 2004 c 160 s 17 are each
amended to read as follows:
It is unlawful for a manufacturer of s iritra. a manufacturer
of wine or malt beverages holding a certificate of
approval issued under RCW 66.24.270 or 66.24.206 or the
manufacturer's authorized representative, a distillery, a
brewery, or a domestic winery to discriminate in price in
selling to any purchaser for resale in the state of Washington.
Sec. 110. RCW 66.28.190 and 2003 c 168 s 305 are each
amended to read as follows:
((RGW . )) (1)Persons licensed
under RCW 66.24.200 as wine distributors ((eM)), persons
licensed under RCW 66,24.250 as beer distributors.
and persons licensed as spirits distributors may sell at
wholesale nonliquor food and food ingredients on thirty -
day credit terms to persons licensed as retailers under this
'title, but complete and separate accounting records shall
be maintained on all sales of nonliquor food and food
ingredients to ensure that such persons are in compliance
with UH-1'A�-uv-2�,0)) any applicable laws.
JZ For the purpose of this section, "nonliquor food and
food ingredients" includes all food and food ingredients
for human consumption as defined in RCW 82.08.0293 as it
exists on July 1, 2004.
NEW SECTION. Sec. 111. A new section is added to
chapter 66.28 RCW to read as follows:
Notwithstanding any other provision of law:
(1) A spirits manufacturer or distiller, whether resident or
nonresident, may not possess any interest, direct or indirect,
in a spirits distributor license or liquor importer's license, or
in any entity that possesses a spirits distributor license or
liquor importer's license; and
(2) No spirits retailer licensee may possess any interest,
direct or indirect, in a spirits distributor license or liquor
importer's license, or in any entity that possesses a spirits
distributor license or liquor importer's license.
Sec. 112. RCW 66.04.010 and 2009 c 373 s 1 and 2009 c
271 s 2 are each reenacted and amended to read as follows:
In this title, unless the context otherwise requires:
(1) Alcohol" is that substance known as ethyl alcohol,
hydrated oxide of ethyl, or spirit of wine, which is commonly
produced by the fermentation or distillation of grain,
starch, molasses, or sugar, or other substances including all
dilutions and mixtures of this substance. The term "alcohol"
114
Initiative Measure 1105
does not include alcohol in the possession of a manufacturer
or distiller of alcohol fuel, as described in RCW 66.12.130,
which is intended to be denatured and used as a fuel for
use in motor vehicles, farm implements, and machines or
implements of husbandry.
(2) "Authorized representative" means a person who:
(a) is required to have a federal basic permit issued pursuant
to the federal alcohol administration act, 27 U.S.C. Sec. 204;
(b) Has its business located in the United States outside of
the state of Washington;
(c) Acquires ownership of spirits, beer, or wine for
transportation into and resale in the state of Washington;
and which spirits, beer, or wine is produced by a distillery,
brewery, or winery in the United States outside of the state
of Washington; and
(d) Is appointed by the distillery, brewery, or winery
referenced in (c) of this subsection as its authorized
representative for marketing and selling its products within
the United States in accordance with a written agreement
between the authorized representative and such distillery,
brewery, or winery pursuant to this title.
(3) "Beer" means any malt beverage, flavored malt
beverage, or malt liquor as these terms are defined in this
chapter.
(4) "Beer distributor" means a person who buys beer
from a domestic brewery, microbrewery, beer certificate of
approval holder, or beer importers, or who acquires foreign
produced beer from a source outside of the United States,
for the purpose of selling the same pursuant to this title, or
who represents such brewer or brewery as agent.
(5) "Beer importer" means a person or business within
Washington who purchases beer from a beer certificate of
approval holder or who acquires foreign produced beer from
a source outside of the United States for the purpose of
selling the same pursuant to this title.
(6) "Board" means the liquor control board, constituted
under this title.
(7) "Brewer" or "brewery" means any person engaged in
the business of manufacturing beer and malt liquor. Brewer
includes a brand owner of malt beverages who holds a
brewer's notice with the federal bureau of alcohol, tobacco,
and firearms at a location outside the state and whose malt
beverage is contract -produced by a licensed in -state brewery,
and who may exercise within the state, under a domestic
brewery license, only the privileges of storing, selling to
licensed beer distributors, and exporting beer from the state.
(8) "Club" means an organization of persons, incorporated
or unincorporated, operated solely for fraternal, benevolent,
educational, athletic or social purposes, and not for
pecuniary gain.
(9) "Confection" means a preparation of sugar, honey, or
other natural or artificial sweeteners in combination with
chocolate, fruits, nuts, dairy products, or flavorings, in the
form of bars, drops, or pieces.
(10) "Consume" includes the putting of liquor to any use,
whether by drinking or otherwise.
(11) "Contract liquor store" means a business that sells
liquor on behalf of the board through a contract with a
contract liquor store manager.
(12) "Craft distillery" means a distillery that pays the
reduced licensing fee under RCW 66.24.140.
(13) "Dentist" means a practitioner of dentistry duly
and regularly licensed and engaged in the practice of his
profession within the state pursuant to chapter 18.32 RCW.
(14) "Distiller" means a person engaged in the business of
distilling spirits.
(15) "Domestic brewery" means a place where beer and
malt liquor are manufactured or produced by a brewer within
the state.
(16) "Domestic winery" means a place where wines are
manufactured or produced within the state of Washington.
(17) "Drug store" means a place whose principal business
is, the sale of drugs, medicines and pharmaceutical
preparations and maintains a regular prescription
department and employs a registered pharmacist during all
hours the drug store is open.
(18) "Druggist" means any person who holds a valid
certificate and is a registered pharmacist and is duly
and regularly engaged in carrying on the business of
pharmaceutical chemistry pursuant to chapter 18.64 RCW.
(19) "Employee" means any person employed by the
board.
(20) "Flavored malt beverage" means:
(a) A malt beverage containing six percent or less alcohol
by volume to which flavoring or other added nonbeverage
ingredients are added that contain distilled spirits of not
more than forty-nine percent of the beverage's overall
alcohol content; or
(b) A malt beverage containing more than six percent
alcohol by volume to which flavoring or other added
nonbeverage ingredients are added that contain distilled
spirits of not more than one and one-half percent of the
beverage's overall alcohol content.
(21) "Fund" means 'liquor revolving fund:
(22) "Hotel" means buildings, structures, and grounds,
having facilities for preparing, cooking, and serving food,
that are kept, used, maintained, advertised, or held out to
the public to be a place where food is served and sleeping
accommodations are offered for pay to transient guests,
in which twenty or more rooms are used for the sleeping
accommodation of such transient guests. The buildings,
structures, and grounds must be located on adjacent
property either owned or leased by the same person or
persons.
(23) ((,. - n-woo-btrfs--distilled spirits
�r-s--u;�-t il�e�-errt�it3�t�re-state-af-Vb+�gt�rrerrd-itrtptfir�s-
te4ut salt to th ez -
for export.
(24))) "Imprisonment" means confinement in the county
jail.
(((25-))) 24 "Liquor" includes the four varieties of
liquor herein defined (alcohol, spirits, wine and beer),
and all fermented, spirituous, vinous, or malt liquor, or
combinations thereof, and mixed liquor, a part of which is
fermented, spirituous, vinous or malt liquor, or otherwise
intoxicating; and every liquid or solid or semisolid or other
substance, patented or not, containing alcohol, spirits,
wine or beer, and all drinks or drinkable liquids and all
preparations or mixtures capable of human consumption,
and any liquid, semisolid, solid, or other substance, which
Initiative Measure 1105
contains more than one percent of alcohol by weight shall
be conclusively deemed to be intoxicating. Liquor does
not include confections or food products that contain one
percent or less of alcohol by weight.
(R26M 25 "Malt beverage" or "malt liquor" means any
beverage such as beer, ale, lager beer, stout, and porter
obtained by the alcoholic fermentation of an infusion or
decoction of pure hops, or pure extract of hops and pure
barley malt or other wholesome grain or cereal in pure
water containing not more than eight percent of alcohol by
weight, and not less than one-half of one percent of alcohol
by volume. For the purposes of this title, any such beverage
containing more than eight percent of alcohol by weight
shall be referred to as "strong beer:'
(({�))) 26 "Manufacturer" means a person engaged in
the preparation of liquor for sale, in any form whatsoever.
((t2S})) 27 "Nightclub" means an establishment that
provides entertainment and has as its primary source
of revenue (a) the sale of alcohol for consumption on
the premises, (b) cover charges; or (c) both, and has an
occupancy load of one hundred or more.
((f294)) 28 "Package" means any container or receptacle
used for holding liquor.
((f3G))) 29 "Passenger vessel" means any boat, ship,
vessel, barge, or other floating craft of any kind carrying
passengers for compensation.
(((3+))) 30 "Permit" means a permit for the purchase of
liquor under this title.
((f324)) 31 "Person" means an individual, copartnership,
association, or corporation.
((f33))) 32 "Physician" means a medical practitioner duly
and regularly licensed and engaged in the practice of his
profession within the state pursuant to chapter 18.71 RCW.
(({34)}) 33 "Prescription" means a memorandum
signed by a physician and given by him to a patient for
the obtaining of liquor pursuant to this title for medicinal
purposes.
((f%ffl 34 "Public place" includes streets and alleys of
incorporated cities and towns; state or county or township
highways or roads; buildings and grounds used for school
purposes; public dance halls and grounds adjacent thereto;
those parts of establishments where beer may be sold under
this title, soft drink establishments, public buildings, public
meeting halls, lobbies, halls and dining rooms of hotels,
restaurants, theatres, stores, garages and filling stations
which are open to and are generally used by the public and
to which the public is permitted to have unrestricted access;
railroad trains, stages, and other public conveyances of all
kinds and character, and the depots and waiting rooms used
in conjunction therewith which are open to unrestricted use
and access by the public; publicly owned bathing beaches,
parks, and/or playgrounds; and all other places of like or
similar nature to which the general public has unrestricted
right of access, and which are generally used by the public.
((f36))) 35 "Regulations" means regulations made by the
board under the powers conferred by this title.
((f3--,q)) 36 "Restaurant" means any establishment
provided with special space and accommodations where,
in consideration of payment, food, without lodgings, is
habitually furnished to the public, not including drug stores
11e
and soda fountains.
((}38-))) 37 "Sale" and "sell" include exchange, barter,
and traffic; and also include the selling or supplying or
distributing, by any means whatsoever, of liquor, or of any
liquid known or described as beer or by any name whatever
commonly used to describe malt or brewed liquor or of
wine, by any person to any person; and also include a sale
or selling within the state to a foreign consignee or his agent
in the state. "Sale" and "sell" shall not include the giving, at
no charge, of a reasonable amount of liquor by a person not
licensed by the board to a person not licensed by the board,
for personal use only. "Safe" and "sell" also does not include
a raffle authorized under RCW 9.46.0315((. PROVIDED,
F7tQ[))Jf the nonprofit organization conducting the raffle has
obtained the appropriate permit from the board.
((fW)} 38 "Soda fountain" means a place especially
equipped with apparatus for the purpose of dispensing soft
drinks, whether mixed or otherwise.
((f4e+)) 39 "Spirits" means any beverage which -contains
alcohol obtained by distillation, except flavored malt
beverages, but including wines exceeding twenty-four
percent of alcohol by volume.
((44'�rrearrs s state iiqtsr store est
thas title)) 40 "Spirits distributor" means a person who buys
spirits_from a domestic distiller, manufacturer. sup,piier. or
spirits importer, or who acquires foreign produced spirits
from a source outsi a of the United States, _f_or the _.purpose
of selling the same not in violation of this title or who
represents such distiller as agent.
41 "5 iris im o er" means a rson who buys distilled
spirits from a distiller outside the state of Washington and
imports such spirits into the.state for sale or for exhort.
(42) "Tavern" means any establishment with special
space and accommodation for sale by the glass and for
consumption on the premises, of beer, as herein defined.
(43)(a) "Wine" means any alcoholic beverage obtained
by fermentation of fruits (grapes, berries, apples, et cetera)
or other agricultural product containing sugar, to which any
saccharine substances may have been added before, during
or after fermentation, and containing not more than twenty-
four percent of alcohol by volume, including sweet wines
fortified with wine spirits, such as port, sherry, muscatel
and angelica, not exceeding twenty-four percent of alcohol
by volume and not less than one-half of one percent of
alcohol by volume. For purposes of this title, any beverage
containing no more than fourteen percent of alcohol by
volume when bottled or packaged by the manufacturer shall
be referred to as "table wine," and any beverage containing
alcohol in an amount more than fourteen percent by volume
when bottled or packaged by the manufacturer shall be
referred to as "fortified wine' However, "fortified wine"
shall not include: (i) Wines that are both sealed or capped by
cork closure and aged two years or more; and (ii) wines that
contain more than fourteen percent alcohol by volume solely
as a result of the natural fermentation process and that have
not been produced with the addition of wine spirits, brandy,
or alcohol.
(b)This subsection shall not be interpreted to require that
any wine be labeled with the designation "table wine" or
"fortified wine'
116
Initiative Measure 1105
(44) "Wine distributor" means a person who buys wine
from a domestic winery, wine certificate of approval holder,
or,wine importer, or who acquires foreign produced wine
from a source outside of the United States, for the purpose
of selling the same not in violation of this title, or who
represents such vintner or winery as agent.
(45) "Wine importer" means a person or business within
Washington who purchases wine from a wine certificate
of approval holder or who acquires foreign produced wine
from a'source outside of the United States for the purpose of
selling the same pursuant to this title.
(46) "Winery" means a business conducted by any person for
the manufacture of wine for sale, other than a domestic winery.
PART II
LIQUOR CONTROL BOARD --REMOVAL FROM RETAIL
SALES --TECHNICAL CHANGES
Sec. 201. RCW 66.08.020 and 1933 ex.s. c 62 s 5 are each
amended to read as follows:
The administration of this title((, '�aen
eontrol,al
rretrt ar3d svp
shall be)) is vested in the liquor control board, constituted
under this title.
Sec. 202. RCW 66.08.026 and 2008 c 67 s 1 are each
amended to read as follows:
Administrative expenses of the board shall be
appropriated and paid from the liquor revolving fund. These
administrative expenses shall include, but not be limited to:
The salaries and expenses of the board and its employees,
((i#e east e#ertirgg act:iorra+Mate E
warehouses,,)) legal services, pilot projects, annual or other
audits, and other general costs of conducting the business of
the board. ((The endfninistraiivea+l rra� ire
r1• ._'.J_.•. _ ..e.�.._.a .s...... ..r
cv3i3�r�i iF8 8tifi-@ttEr ---• ehase - he cost _•
tta-nspo"tiom and delivery toaftC i3t-r�virirc�Fr-trr$
east of Sri rrg-r elmand leasing s!ate
+i-quw-siar h-e-
aegtHrsition and -reeerpt- i
eoffr risst a iquor
associatefor liquor in
s-hAe-I a F st a re s a n d i n e o nt ria c Hula&ir stores-pttrsrra•rrt-te,-
ol••'t 1 66. CC �6 040 and 66 q .0441-1 __1__ t_ __d these _ rn _
dist ri b ut e d P U r 8 U a n t t n R G W 6 6.08.18 9, 66-0 �9�{zCr48-24f�
66 98 is for contract
-1 �p
i•i-{tta stares s ha"R�FLlOi 4-by-t4ieT�i it
afterertstrlt atitm-wit f3
office of • ntent-)) All expenditures and
payment of obligations authorized by this section are subject
to the allotment requirements of chapter 43.88 RCW.
Sec. 203. RCW 66.08.030 and 2002 c 119 s 2 are each
amended to read as follows:
(1) For the purpose of carrying into effect the provisions
of this title according to their true intent or of supplying any
deficiency therein, the board may make such regulations
not inconsistent with the spirit of this title as are deemed
necessary or advisable. All regulations so made shall be
a public record and shall be filed in the office of the code
reviser, and thereupon shall have the same force and effect
as if incorporated in this title. Such regulations, together
with a copy of this title, shall be published in pamphlets and
shall be distributed as directed by the board.
(2) Without thereby limiting the generality of the provisions
contained in subsection (1) of this section, it is declared that
the power of the board to make regulations in the manner
set out in that subsection shall extend to
(a) ((regtrFati-tse egtriprerit fps
and b+�a,�rouacs�ry Relrs at k��t!ar - s 4--crept, and
pr�..7yiT'[lriig--#+ro�$o�Es-a-rtd-�Eea�s tS-�e-I�e�t-t#ef8l f 1�1 TCTT7T nr
�+tetearr-tv-t�-b$arel;
--fh})) Prescribing the duties of the employees of the board,
and regulating their conduct in the discharge of their duties;
(d4�,��{+�r�--t�i� a�,�,} serif-+igfra�bq-t��-stage-arre#-tf�e-
furnishing'of'Tl
mete ticsae'I,;v oiTcra vv#�it{tFo�
e-aty s#aie
Apr , 9ie4au r+nT
of wl rit#t t+ stag st8r�;be kept open f*H-h�
liquor,
--4i e issue arrt �#ists��f pr' -,cc ;ins
showing theEby pt esters #or eseh-vaf+eer
Fsf-iigrtrsr-Inept-fer��i1�",--�;;�-t+t}e;
mil)) jJ Prescribing an official seal and official labels and
stamps and determining the manner in which they shall be
attached to every package of liquor sold or sealed under this
title, including the prescribing of different official seals or
different official labels for different classes of liquor;
((tfr?pr$vi i fogt+�a pavrnent by the-boerd-in-*+tole or in
,press,
�i})) (c) Prescribing forms to be used for purposes of this
title or the regulations, and the terms and conditions to be
contained in permits and licenses issued under this title,
and the qualifications for receiving a permit or license
issued under this title, including a criminal history record
information check. The board may submit the criminal
history record information check to the Washington state
patrol and to the identification division of the federal bureau
of investigation in order that these agencies may search their
records for prior arrests and convictions of the individual or
individuals who filled out the forms. The board shall require
fingerprinting of any applicant whose criminal history record
information check is submitted to the federal bureau of
investigation;
((fjf)) d Prescribing the fees payable in respect of permits
and licenses issued under this title for which no fees are
prescribed in this title, and prescribing the fees for anything
done or permitted to be done under the regulations;
((W)) (prescribing the kinds and quantities of liquor
which may be kept on hand by the holder of a special
permit for the purposes named in the permit, regulating the
manner in which the same shall be kept and disposed of, and
providing for the inspection of the same at any time at the
instance of the board;
((fFl)) f Regulating the sale of liquor kept by the holders of
licenses which entitle the holder to purchase and keep liquor
for sale;
((fi*)) c) Prescribing the records of purchases or sales of
liquor kept by the holders of licenses, and the reports to be
made thereon to the board, and providing for inspection of
Initiative Measure 1105
the records so kept;
(Ifs))) N Prescribing the kinds and quantities of liquor
for which a prescription may be given, and the number of
prescriptions which may be given to the same patient within
a stated period;
((fool)) prescribing the manner of giving and serving
notices required by this title or the regulations, where not
otherwise provided for in this title;
((fl*)) lit Regulating premises in which liquor is kept for
export from the state, or from which liquor is exported,
prescribing the books and records to be kept therein and the
reports to be made thereon to the board, and providing for
the inspection of the premises and the books, records and
the liquor so kept;
((fq3)) prescribing the conditions and qualifications
requisite for the obtaining of club licenses and the books
and records to be kept and the returns to be made by clubs,
prescribing the manner of licensing clubs in any municipality
or other locality, and providing for the inspection of clubs;
(ft) (1) Prescribing the conditions, accommodations and
qualifications requisite for the obtaining of licenses to sell
beer ((artd)), wines, and spirits and regulating the sale of
beer ((ate)), wines, and spirits, thereunder;
((fs})) m Specifying and regulating the time and periods
when, and the manner, methods and means by which
manufacturers shall deliver liquor within the state; and
the time and periods when, and the manner, methods and
means by which liquor may lawfully be conveyed or carried
within the state;
((fo)► LLProviding for the making of returns by brewers of
their sales of beer shipped within the state, or from the state,
showing the gross amount of such sales and providing for
the inspection of brewers' books and records, and for the
checking of the accuracy of any such returns;
((Jti))) (o) Providing for the making of returns by the
wholesalers of beer whose breweries are located beyond the
boundaries of the state;
((M)) tpj Providing for the making of returns by any
other liquor manufacturers, showing the gross amount of
liquor produced or purchased, the amount sold within and
exported from the state, and to whom so sold or exported,
and providing for the inspection of the premises of any such
liquor manufacturers, their books and, records, and for the
checking of any such return;
((fw l) Lc#)Providing for the giving of fidelity bonds by any
or all of the employees of the board((: PROVIDED,T`-`))_
However, the premiums therefor shall be paid by the board;
((fxj)) (r) Providing for the shipment by mail or common
carrier of liquor to any person holding a permit and residing
in any unit which has, by election pursuant to this title,
prohibited the sale of liquor therein;
((fy1)) prescribing methods of manufacture, conditions
of sanitation, standards of ingredients, quality and identity of
alcoholic beverages manufactured, sold, bottled, or handled
by licensees and the board; and conducting from time to
time, in the interest of the public health and general welfare,
scientific studies and research relating to alcoholic beverages
and the use and effect thereof;
((f4)) t Seizing, confiscating and destroying all alcoholic
beverages manufactured, sold or offered for sale within this
117
state which do not conform in all respects to the standards
prescribed by this title or the regulations of the board((
PR'DEfIEWg ((herein )) in
--r��)). However. nothing h
this section may be construed as authorizing the liquor board
to prescribe, alter, limit or in any way change the present
law as to the quantity or percentage of alcohol used in the
manufacturing of wine or other alcoholic beverages.
Sec. 204. RCW 66.24.145 and 2010 c 290 s 2 are each
amended to read as follows:
(1) Any craft distillery may sell spirits of its own production
for consumption off the premises, up'to two liters per
person per day. ((Spir' -ftvdst-
>"�e-parer•ased-€•rv�e•-;<iea•rd�-�„
estaRbloshed b"he--beams)) A craft distillery selling spirits
under this subsection must comply with the applicable laws
and rules relating to retailers.
(2) Any craft distillery may contract distill spirits for, and
sell contract distilled spirits to, holders of distillers' or
manufacturers' licenses, including licenses issued under
RCW 66.24.520, or for export.
(3) Any craft distillery licensed under this section may
provide, free of charge, one-half ounce or less samples of
spirits of its own production to persons on the premises of
the distillery. The maximum total per person per day is two
ounces. Every person who participates in any manner in
the service of samples must obtain a class 12 alcohol server
permit. Spirits used for samples must be purchased from the
board.
(4)The board shall adopt rules to implement the alcohol
server permit requirement and may adopt additional rules to
implement this section.
(5) Distilling is an agricultural practice.
Sec. 205. RCW 66.24.160 and 1981 1st ex.s. c 5 s 30 are
each amended to read as follows:
A liquor importer's license may be issued to any qualified
person, firm or corporation, entitling the holder thereof to
import into the state any liquor other than beer or wine;
to store the same within the state, and to sell and export
the same from the state; fee six hundred dollars per
annum. Such liquor importer's license shall be subject to
all conditions and restrictions imposed by this title or by the
rules and regulations of the board, and shall be issued only
upon such terms and conditions as may be imposed by the
board. (("uor irnp"red
.))
Sec. 206. RCW 66.28.060 and 2008 c 94 s 7 are each
amended to read as follows:
Every distillery licensed under this title shall make monthly
reports to the board pursuant to the regulations. ((No Stich
disttlle it} :the state of
W8shington-exeepttatlte ;dW
Sec. 207. RCW 66.44.120 and 2005 c 151 s 11 are each,
amended to read as follows:
(1) No person other than an employee of the board shall
keep or have in his or her possession any official seal
prescribed under this title, unless the same is attached to
a package which has been purchased from a ((liquor store
-qn=%�
Initiative Measure 1105
or eantract )) retail store; nor shall any person keep
or have in his or her possession any design in imitation of
any official seal prescribed under this title, or calculated to
deceive by its resemblance thereto, or any paper upon which
any design in imitation thereof, or calculated to deceive as
aforesaid, is stamped, engraved, lithographed, printed, or
otherwise marked.
(2)(a) Except as provided in (b) of this subsection, every
person who willfully violates this section is guilty of a gross
misdemeanor and shall be liable on conviction thereof for a
first offense to imprisonment in the county jail for a period
of not less than three months nor more than six months,
without the option of the payment of a fine, and for a second
offense, to imprisonment in the county jail for not less than
six months nor more than one year, without the option of the
payment of a fine.
(b) A third or subsequent offense is a class C felony,
punishable by imprisonment in a state correctional facility
for not less than one year nor more than two years.
NEW SECTION. Sec. 208. The following acts or parts of
acts are each repealed:
(1) RCW 66.08.070 (Purchase of liquor by board --
Consignment not prohibited --Warranty or affirmation not
required for wine or malt purchases) and 1985 c 226 s 2, 1973
1st ex.s. c 209 s 1, & 1933 ex.s. c 62 s 67;
(2) RCW 66.08.075 (Officer, employee not to represent
manufacturer, wholesaler in sale to board) and 1937 c 217 s 5;
(3) RCW 66.08.160 (Acquisition of warehouse authorized)
and 1947 c 134 s 1;
(4) RCW 66.08.165 (Strategies to improve operational
efficiency and revenue) and 2005 c 231 s 1;
(5) RCW 66.08.166 (Sunday sales authorized --Store
selection and other requirements) and 2005 c 231 s 2;
(6) RCW 66.08.167 (Sunday sales --Store selection) and
2005 c 231 s 4;
(7) RCW 66.08.220 (Liquor revolving fund --Separate
account --Distribution) and 2009 c 271 s 4, 2007 c 370 s 15,
1999c281 s 2, & 1949 c 5 s 11;
(8) RCW 66.08.235 (Liquor control board construction and
maintenance account) and 2005 c 151 s 4, 2002 c 371 s 918, &
1997c75s1;
(9) RCW 66.16.010 (Board may establish --Price standards --
Prices in special instances) and 2005 c 518 s 935, 2003 1st sp.s.
c 25 s 928, 1939 c 172 s 10, 1937 c 62 s 1, & 1933 ex.s. c 62 s 4;
(10) RCW 66.16.040 (Sales of liquor by employees-
-Identification cards --Permit holders --Sales for cash --
Exception) and 2005 c 206 s 1, 2005 c 151 s 5, 2005 c 102 s 1,
2004 c 61 s 1, 1996 c 291 s 1, 1995 c 16 s 1, 1981 1st ex.s. c 5 s
8, 1979 c 158 s 217, 1973 1st ex.s. c 209 s 3, 1971 ex.s, c 15 s 1,
1959 c 111 s 1, & 1933 ex.s. c 62 s 7;
(11) RCW 66.16.041 (Credit and debit card purchases --
Rules --Provision, installation, maintenance of equipment
by board --Consideration of offsetting liquor revolving fund
balance reduction) and 2005 c 151 s 6, 2004 c 63 s 2, 1998 c
265 s 3, 1997 c 148 s 2, & 1996 c 291 s 2;
(12) RCW 66.16.050 (Sale of beer and wine to person
licensed to sell) and 1933 ex.s. c 62 s 8;
(13) RCW 66.16.060 (Sealed packages may be required,
exception) and 1943 c 216 s 1 & 1933 ex.s. c 62 s 9;
(14) RCW 66.16.070 (Liquor cannot be opened or consumed
on store premises) and 1933 ex.s. c 62 s 10;
(15) RCW 66.16.100 (Fortified wine sales) and 1997 c 321 s
42 & 1987 c 386 s 5;
(16) RCW 66.16.110 (Birth defects from alcohol --Warning
required) and 1993 c 422 s 2;
(17) RCW 66.16.120 (Employees working on Sabbath) and
2005 c 231 s 5;
(18) RCW 66.28.045 (Furnishing samples to board --
Standards for accountability --Regulations) and 1975 1st ex.s.
c173s9;and
(19) RCW 82.08.150 (Tax on certain sales of intoxicating
liquors --Additional taxes for specific purposes --Collection)
and 2009 c 479 s 65, 2005 c 514 s 201, 2003 c 167 s 11, 1998
c 126 s 16, 1997 c 321 s 55, 1994 sp.s. c 7 s 903, 1993 c 492 s
310, 1989 c 271 s 503, 1983 2nd ex.s. c 3 s 12, 1982 1 st ex.s.
c 35 s 3, 1981 1 st ex.s. c 5 s 25, 1973 1 st ex.s. c 204 s 1, 1971
ex.s, c 299 s 9, 1969 ex.s. c 21 s 11, 1965 ex.s. c 173 s 16, 1965
c 42 s 1, 1961 ex.s. c 24 s 2, & 1961 c 15 s 82.08.150.
PART In
MISCELLANEOUS PROVISIONS
NEW SECTION. Sec. 301. The office of the code reviser
must prepare legislation to be introduced during the first
session following the 2010 general election that removes
all statutory references to the term "state liquor store.' The
effective date of such legislation must be April 1, 2012.
NEW SECTION. Sec. 302. If any provision of this act or
its application to any person or circumstance is held invalid,
the remainder of the act or the application of the provision to
other persons or circumstances is not affected.
NEW SECTION. Sec. 303. Nothing in this act shall be
construed to affect or diminish the rights of tribes or military
installation operated by or for any of the armed forces within
the geographical boundaries of the state of Washington with
respect to the sale or purchase of spirits. The liquor control
board must prepare a report to the legislature by January 1,
2011, on a recommended means to carry out the intent of this
section.
NEW SECTION. Sec. 304., Sections 201 through 204, 207,
and 208 of this act take effect April 1, 2012.
0401911121
-
Initiative Measure 1107 -
Complete Text
Initiative Measure 1107
AN ACT Relating to repealing tax increases on certain
processed foods, bottled water, candy, and carbonated
beverages enacted by the 2010 legislature; amending RCW
82.04.4266, 82.04.260, 82.04.298, 82.04.440, 82.08.0293,
82.08.0293, 82.12.0293, and 82.12.0293; creating new sections;
repealing RCW 82.04.---, 82.08.---, 82.12.---, 82.08.---,
82.12.---, 82.04.---, and 82.--.--- through 82------- ; and providing a
contingent effective date.
BE IT ENACTED BYTHE PEOPLE OFTHE STATE OF
WASHINGTON:
PART 1
INTENT
NEW SECTION. Sec. 101. The people of the state of
Washington in enacting this initiative measure find:
(1)The 2010 legislature adopted legislation that imposed new
or higher taxes on many common food and beverage products,
increasing the tax burden on Washington consumers and
.businesses by hundreds of millions of dollars;
(2)Taxes on food and beverages hurt all Washington
consumers, and especially hurt lower and middle income
taxpayers who can least afford it;
(3)The legislature's tax increases on food and beverages
come at a time when Washington residents and businesses
already face an economic crisis;
(4)The process the legislature used to increase taxes on"food
and beverages did not provide adequate public input on or
scrutiny of the proposed tax increases;
(5) Washington residents already pay among the highest
sales taxes in the country;
(6)The legislature's tax increases on food and beverages
hurtWashington food and beverage producers and retail
businesses by making their products more costly and less
competitive;
(7)The legislature's tax increases on food and beverages will
hurt Washington's economy and cause the loss of many local
jobs; and
(8)The legislature's tax increases on food and beverages
arbitrarily and unfairly impose higher taxes on some food
and beverage products but not on others that are similar or
essentially the same.
For these reasons, the people repeal the food and beverage
taxes imposed by the 2010 legislature.
PART 11
REPEAL OFTAX INCREASES ON FOODS MADE FROM
CERTAIN AGRICULTURAL PRODUCTS
NEWTON, Sec. 201. RCW 82.04.--- and 2010 1st sp.s. c
23 s 502 are each repealed.
Sec. 202. RCW 82.04.4266 and 2010 1st sp.s. c 23 s 504 are
each amended to read as follows: ,
(1)This chapter does not apply to the value of products or the
gross proceeds of sales derived from:
(a) Manufacturing fruits or vegetables ((prsduets)) by
canning, preserving, freezing, processing, or dehydrating fresh
fruits or vegetables; or
(b) Selling at wholesale fruits or vegetables ((procibets))
manufactured by the seller by canning, preserving, freezing,
119
processing, or dehydrating fresh fruits or vegetables and sold
to purchasers who transport in the ordinary course of business
the goads out of this state. A person taking an exemption
under this subsection (1)(b) must keep and preserve records
for the period required by RCW 82.32.070 establishing that
the goods were transported by the purchaser in the ordinary
course of business out of this state.
(2 } ((«,�geta ble-�rr�re4s`-m ear+s:
--(i}-grariuefs-cr�€n�ri set-es�ve►y~ef�rul�-veg�tef�+es-csr-
beth;-�td
{ iii fete�,�eble
whiel-I may also contain
vnater st�ga ssF seas�rrfrs-
^�p�z T;rveve�,,n
�ifted-
tii# �i$�deT vticriTrm; ficii 3 {8�31�S n -wate rnay-
noftxteed_.h.._..m_unt _t �_.. �� ec�tti8ifted-itt
altrrW_-
(b) "Fm+t-or vegetable prsdtieta d
t'
eefrsarfrpt kYn--&&-fee+
-*3})) A person claiming the exemption provided in
this section must flie a complete annual survey with the
department under RCW 82.32.--- (section 102, chapter 114 (SHB
3066), Laws of 2010).
((W)) j3jThis section expires July 1, 2012.
Sec. 203. RCW 82.04.260 and 2010 1st sp.s. c 23 s 506 are
each amended to read as follows:
(1) Upon every person engaging within this state in the
business of manufacturing:
(a) Wheat into flour, barley into pearl barley, soybeans into
soybean oil, canola into canola oil, canola meal, or canola
by-products, or sunflower seeds into sunflower oil; as to such
persons the amount of tax with respect to such business is
equal to the value of the flour, pearl barley, oil, canola meal,
or canola by-product manufactured, multiplied by the rate of
0.138 percent;
(b) Beginning July 1, 2012, seafood products that remain in
a raw, raw frozen, or raw salted state at the completion of the
manufacturing by that person; or selling manufactured seafood
products that remain in a raw, raw frozen, or raw salted
state at the completion of the manufacturing, to purchasers
who transport in the ordinary course of business the goods
out of this state; as to such persons the amount of tax with
respect to such business is equal to the value of the products
manufactured or the gross proceeds derived from such sales,
multiplied by the rate of 0.138 percent. Sellers must keep and
preserve records for the period required by RCW 82.32.070
establishing that the goods were transported by the purchaser
in the ordinary course of business out of this state;
(c) Beginning July 1, 2012, dairy products that as of
September 20, 2001, are identified in 21 C.F.R., chapter 1,
parts 131, 133, and 135, including by-products from the
manufacturing of the dairy products such as whey and
casein; or selling the same to purchasers who transport in the
ordinary course of business the goods out of state; as to such
persons the tax imposed is equal to the value of the products
manufactured or the gross proceeds derived from such sales
multiplied by the rate of 0.138 percent. Sellers must keep and
preserve records for the period required by RCW 82.32,070
establishing that the goods were transported by the purchaser
in the ordinary course of business out of this state;
(d)((H)) Beginning July 1, 2012, fruits or vegetables
120
Initiative Measure 1107
((products)) by canning, preserving, freezing, processing, or
dehydrating fresh fruits or vegetables, or selling at wholesale
fruits or vegetables ((products)} manufactured by the seller by
canning, preserving, freezing, processing, or dehydrating fresh
fruits or vegetables and sold to purchasers who transport in the
ordinary course of business the goods out of this state; as to
such persons the amount of tax with respect to such business
is equal to the value of the products manufactured or the gross
proceeds derived from such sales multiplied by the rate of
0.138 percent. Sellers must keep and preserve records for the
period required by RCW 82.32.070 establishing that the goods
were transported by the purchaser in the ordinary course of
business out of this state;
(({ii)--Fc�r�rrrpos�s-ef ifris se�tise�irerr, "fnrit-aF-degetaf3le-
pfeducts" means
( kWr idttets�Pri �',T;�"'usvely of rtfits ge# les ar-
bothi er
-(B-) 3mducts comprised of fruits, -
acid-vvl� icl��rraqa�sc�c��-evste�s+3gar;-salt: -seass,rgs;
preservatives, binders, ..zers,fl avo4rrgs: yeast;-arrd-aift�
SYF t' P.S-r�C]WPVef, the aTfou nt A-a4 rgre QJie nts ed
n t iie pradvet"11-rits vecletable-arwva# rrtay-
not exceed the ornount of fruks and vegetables a+ned-i n-
(imm) "Fruit and v
tfie-pr�d� �fifie; .
�E8C}ti�isii rcrc;firlFy�refttets
tn#erred-tflr-irr�rrrarr•eaRsrcrtfi}�tltrn-a�feod-ar-a-riit�ra#-
4eed�))
(e) Until July 1, 2009, alcohol fuel, biodiesel fuel, or biodiesel
feedstock, as those terms are defined in RCW 82.29A.135; as to
such persons the amount of tax with respect to the business
is equal to the value of alcohol fuel, biodiesel fuel, or biodiesel
feedstock manufactured, multiplied by the rate of 0.138
percent; and
(f)Wood biomass fuel as defined in RCW 82.29A.135; as to
such persons the amount of tax with respect to the business
is equal to the value of wood biomass fuel manufactured,
multiplied by the rate of 0.138 percent.
(2) Upon every person engaging within this state in the
business of splitting or processing dried peas; as to such
persons the amount of tax with respect to such business is
equal to the value of the peas split or processed, multiplied by
the rate of 0.138 percent.
(3) Upon every nonprofit corporation and nonprofit
association engaging within this state in research and
development, as to such corporations and associations, the
amount of tax with respect to such activities is equal to the
gross income derived from such activities multiplied by the
rate of 0.484 percent.
(4) Upon every person engaging within this state in
the business of slaugh_t_er_ing,_breaking and/or processing
perishable meat products and/or selling_ the „same at wholesale
only and not at retail; as to such persons the tax imposed is
equal to the grass proceeds derived from such sales multiplied
b the rate of 0.138 percent.
(5) Upon every person engaging within this state in the
business of acting as a travel agent or tour operator; as to such
persons the amount of the tax with respect to such activities
is equal to the gross income derived from such activities
multiplied by the rate of 0.275 percent.
Qf54)} (6) Upon every person engaging within this state in
business as an international steamship agent, international
customs house broker, international freight forwarder, vessel
and/or cargo charter broker in foreign commerce, and/or
international air cargo agent; as to such persons the amount of
the tax with respect to only international activities is equal to
the gross income derived from such activities multiplied by the
rate of 0.275 percent.
((f6))) M Upon every person engaging within this state in
the business of stevedoring and associated activities pertinent
to the movement of goods and commodities in waterborne
interstate or foreign commerce; as to such persons the
amount of tax with respect to such business is equal to the
gross proceeds derived from such activities multiplied by the
rate of 0.275 percent. Persons subject to taxation under this
subsection are exempt from payment of taxes imposed by
chapter 82.16 RCW for that portion of their business subject to
taxation under this subsection. Stevedoring and associated
activities pertinent to the conduct of goods and commodities
in waterborne interstate or foreign commerce are defined
as all activities of a labor, service or transportation nature
whereby cargo may be loaded or unloaded to or,from vessels
or barges, passing over, onto or under a wharf, pier, or similar
structure; cargo may be moved to a warehouse or similar
holding or storage yard or area to await further movement
in import or export or may move to a consolidation freight
station and be stuffed, unstuffed, containerized, separated or
otherwise segregated or aggregated for delivery or loaded
on any mode of transportation for delivery to its consignee.
Specific activities included in this definition are: Wharfage,
handling, loading, unloading, moving of cargo to a convenient
place of delivery to the consignee or a convenient place for
further movement to export mode; documentation services in
connection with the receipt, delivery, checking, care, custody
and control of cargo required in the transfer of cargo; imported
automobile handling prior to delivery to consignee; terminal
stevedoring and incidental vessel services, including but not
limited to plugging and unplugging refrigerator service to
containers, trailers, and other refrigerated cargo receptacles,
and securing ship hatch covers.
((f7}W)) (8) Upon every person engaging within this state
in the business of disposing of low-level waste, as defined in
RCW 43.145.010; as to such persons the amount of the tax with
respect to such business is equal to the gross income of the
business, excluding any fees imposed under chapter 43.200
RCW, multiplied by the rate of 3.3 percent.
((M)) If the gross income of the taxpayer is attributable to
activities both within and without this state, the gross income
attributable to this state must be determined in accordance
with the methods of apportionment required under RCW
82.04.460.
((f8))) L91 Upon every person engaging within this state
as an insurance producer or title insurance agent licensed
under chapter 48.17 RCW or a surplus line broker licensed
under chapter 48.15 RCW; as to such persons, the amount of
the tax with respect to such licensed activities is equal to the
gross income of such business multiplied by the rate of 0.484
percent.
((f9))) 10 Upon every person engaging within this state in
business as a hospital, as defined in chapter 70.41 RCW, that
is operated as a nonprofit corporation or by the state or any
of its political subdivisions, as to such persons, the amount of
tax with respect to such activities is equal to the gross income
of the business multiplied by the rate of 0.75 percent through
June 30, 1995, and 1.5 percent thereafter.
Initiative Measure 1107
((Hey)) 11 (a) Beginning October 1, 2005, upon every person
engaging within this state in the business of manufacturing
commercial airplanes, or components of such airplanes, or
making sales, at retail or wholesale, of commercial airplanes
or components of such airplanes, manufactured by the seller,
as to such persons the amount of tax with respect to such
business is, in the case of manufacturers, equal to the value of
the product manufactured and the gross proceeds of sales of
the product manufactured, or in the case of processors for hire,
equal to the gross income of the business, multiplied by the
rate of:
(i) 0.4235 percent from October 1, 2005, through June 30,
2007; and
(N) 0.2904 percent beginning July 1, 2007
(b) Beginning July 1, 2008, upon every person who is not
eligible to report under the provisions of (a) of this subsection
(({-49})) 11 and is engaging within this state in the business
of manufacturing tooling specifically designed for use in
manufacturing commercial airplanes or components of such
airplanes, or making sales, at retail or wholesale, of such
tooling manufactured by the seller, as to such persons the
amount of tax with respect to such business is, in the case of
manufacturers, equal to the value of the product manufactured
and the gross proceeds of sales of the product manufactured,
or in the case of processors for hire, be equal to the gross
income of the business, multiplied by the rate of 0.2904
percent.
(c) For the purposes of this subsection (HOW (11),
"commercial airplane" and "component" have the same
meanings as provided in RCW 82.32.550.
(d) In addition to all other requirements under this title, a
person reporting under the tax rate provided in this subsection
((00))) 11 must file a complete annual report with the
department under RCW 82.32.--- (section 103, chapter 114 (SHB
3066), Laws of 2010).
(e)This subsection ((f1g})) 11 does not apply on and after
July 1, 2024.
Q01j)} 12 (a) Until July 1, 2024, upon every person engaging
within this state in the business of extracting timber or
extracting for hire timber; as to such persons the amount of tax
with respect to the business is, in the case of extractors, equal
to the value of products, including by-products, extracted, or in
the case of extractors for hire, equal to the gross income of the
business, multiplied by the rate of 0.4235 percent from July 1,
2006, through June 30, 2007, and 0.2904 percent from July 1,
2007, through June 30, 2024.
(b) Until July 1, 2024, upon every person engaging within
this state in the business of manufacturing or processing for
hire: (i)Timber into timber products or wood products; or (N)
timber products into other timber products or wood products;
as to such persons the amount of the tax with respect to the
business is, in the case of manufacturers, equal to the value
of products, including by-products, manufactured, or in the
case of processors for hire, equal to the gross income of the
business, multiplied by the rate of 0.4235 percent from July 1,
2006, through June 30, 2007, and 0.2904 percent from July 1,
2007, through June 30, 2024,
(c) Until July 1, 2024, upon every person engaging within
this state in the business of selling at wholesale: (i)Timber
extracted by that person; 00 timber products manufactured
by that person from timber or other timber products; or (iii)
wood products manufactured by that person from timber or
121
timber products; as to such persons the amount of the tax with
respect to the business is equal to the gross proceeds of sales
of the timber, timber products, or wood products multiplied by
the rate of 0.4235 percent from July 1, 2006, through June 30,
2007, and 0.2904 percent from July 1, 2007, through June 30,
2024.
(d) Until July 1, 2024, upon every person engaging within
this state in the business of selling standing timber; as to such
persons the amount of the tax with respect to the business is
equal to the gross income of the business multiplied by the
rate of 0.2904 percent. For purposes of this subsection ((01-)))
12 (d), "selling standing timber" means the sale of timber
apart from the land, where the buyer is required to sever
the timber within thirty months from the date of the original
contract, regardless of the method of payment for the timber
and whether title to the timber transfers before, upon, or after
severance.
(e) For purposes of this subsection, the following definitions
apply:
(i) "Biocomposite surface products" means surface material
products containing, by weight or volume, more than fifty
percent recycled paper and that also use nonpetroleum-based
phenolic resin as a bonding agent.
(ii) "Paper and paper products" means products made of
interwoven cellulosic fibers held together largely by hydrogen
bonding. "Paper and paper products" includes newsprint;
office, printing, fine, and pressure -sensitive papers; paper
napkins, towels, and toilet tissue; kraft bag, construction, and
other kraft industrial papers; paperboard, liquid packaging
containers, containerboard, corrugated, and solid -fiber
containers including linerboard and corrugated medium; and
related types of cellulosic products containing primarily, by
weight or volume, cellulosic materials. "Paper and paper
products" does not include books, newspapers, magazines,
periodicals, and other printed publications, advertising
materials, calendars, and similar types of printed materials.
(iii) "Recycled paper" means paper and paper products
having fifty percent or more of their fiber content that comes
from postconsumer waste. For purposes of this subsection
12 (e)(iii), "postconsumer waste" means a finished
material that would normally be disposed of as solid waste,
having completed its life cycle as a consumer item.
(iv) "Timber" means forest trees, standing or down, on
privately or publicly owned land. "Timber" does not include
Christmas trees that are cultivated by agricultural methods or
short -rotation hardwoods as defined in RCW 84.33.035.
(v) "Timber products" means:
(A) Logs, wood chips, sawdust, wood waste, and similar
products obtained wholly from the processing of timber, short -
rotation hardwoods as defined in RCW 84.33.035, or both;
(B) Pulp, including market pulp and pulp derived from
recovered paper or paper products; and
(C) Recycled paper, but only when used in the manufacture
of biocomposite surface products.
(vi) "Wood products" means paper and paper products;
dimensional lumber; engineered wood products such as
particleboard, oriented strand board, medium density
fiberboard, and plywood; wood doors; wood windows; and
biocomposite surface products.
(f) Except for small harvesters as defined in RCW 84.33.035, a
person reporting under the tax rate provided in this subsection
((f4 ))} 12 must file a complete annual survey with the
122
Initiative Measure 1107
department under RCW 82.32.--- (section 102, chapter 114 (SHB
3066), Laws of 2010).
((})} 13 Upon every person engaging within this state in
inspecting, testing, labeling, and storing canned salmon owned
by another person, as to such persons, the amount of tax with
respect to such activities is equal to the gross income derived
from such activities multiplied by the rate of 0.484 percent.
((0-3))) 14 (a) Upon every person engaging within this
state in the business of printing a newspaper, publishing a
newspaper, or both, the amount of tax on such business is
equal to the gross income of the business multiplied by the
rate of 0.2904 percent.
(b) A person reporting under the tax rate provided in this
subsection (((+3))) 14 must file a complete annual report with
the department under RCW 82.32.--- (section 103, chapter 114
(SHB 3066), Laws of 2010).
Sec. 204. RCW 82.04.298 and 2010 1st sp.s. c 23 s 511 are
each amended to read as follows:
(1)The amount of tax with respect to a qualified grocery
distribution cooperative's sales of groceries or related goods
for resale, excluding items subject to tax under RCW ((82.04.
)) 82.04.260(4), to customer -owners
of the grocery distribution cooperative is equal to the gross
proceeds of sales of the grocery distribution cooperative
multiplied by the rate of one and one-half percent.
(2) A qualified grocery distribution cooperative is allowed
a deduction from the gross proceeds of sales of groceries
or related goods for resale, excluding items subject to tax
under RCW 82.04.260(4), to
customer -owners of the grocery distribution cooperative that
is equal to the portion of the gross proceeds of sales for resale
that represents the actual cost of the merchandise sold by the
grocery distribution cooperative to customer -owners.
(3)The definitions in this subsection apply throughout this
section unless the context clearly requires otherwise.
(a) "Grocery distribution cooperative" means an entity that
sells groceries and related items to customer -owners of the
grocery distribution cooperative and has customer -owners,
in the aggregate, who own a majority of the outstanding
ownership interests of the grocery distribution cooperative or
of the entity controlling the grocery distribution cooperative.
"Grocery distribution cooperative" includes an entity that
controls a grocery distribution cooperative.
(b) "Qualified grocery distribution cooperative" means:
(i) A grocery distribution cooperative that has been
determined by a court of record of the state of Washington to
be not engaged in wholesaling or making sales at wholesale,
within the meaning of RCW 82.04.270 or any similar provision
of a municipal ordinance that imposes a tax on gross receipts,
gross proceeds of sales, or gross income, with respect to
purchases made by customer -owners, and subsequently
changes its form of doing business to make sales at wholesale
of groceries or related items to its customer -owners; or
(ii) A grocery distribution cooperative that has acquired
substantially all of the assets of a grocery distribution
cooperative described in (b)(i) of this subsection.
(c) "Customer -owner" means a person who has an
ownership interest in a grocery distribution cooperative and
purchases groceries and related items at wholesale from that
grocery distribution cooperative.
(d) "Controlling" means holding fifty percent or more of the
voting interests of an entity and having at least equal power to
direct or cause the direction of the management and policies of
the entity, whether through the ownership of voting securities,
by contract, or otherwise.
Sec. 205. RCW 82.04.440 and 2010 1st sp.s. c 23 s 513 are
each amended to read as follows:
(1) Every person engaged in activities that are subject to
tax under two or more provisions of RCW 82.04.230 through
82.04.298, inclusive, is taxable under each provision applicable
to those activities.
(2) Persons taxable under RCW 82.04.2909(2), 82.04.250,
82.04.270, 82.04.294(2), or 82.04.260 (1)(b), (c), or (d), (("ft-
er)) (4). (11), or (( )) 12 with respect to
selling products in this state, including those persons who are
also taxable under RCW 82.04.261, are allowed a credit against
those taxes for any (a) manufacturing taxes paid with respect
to the manufacturing of products so sold in this state, and/
or (b) extracting taxes paid with respect to the extracting of
products so sold in this state or ingredients of products so sold
in this state. Extracting taxes taken as credit under subsection
(3) of this section may also be taken under this subsection, if
otherwise allowable under this subsection. The amount of the
credit may not exceed the tax liability arising under this chapter
with respect to the sale of those products.
(3) Persons taxable as manufacturers under RCW 82.04.240
or 82.04.260 (1)(b) or (((11}}} (12), including those persons who
are also taxable under RCW 82.04.261, are allowed a credit
against those taxes for any extracting taxes paid with respect
to extracting the ingredients of the products so manufactured
in this state. The amount of the credit may not exceed the
tax liability arising under this chapter with respect to the
manufacturing of those products.
(4) Persons taxable under RCW 82.04.230, 82.04.240,
82.04.2909(1), 82.04.294(1), 82.04.2404, or 82.04.260 (1), (2),
(((10), or)) (4), (11), or ((___`'_- 502(i) of this __`)} (12), including
those persons who are also taxable under RCW 82.04,261,
with respect to extracting or manufacturing products in this
state are allowed a credit against those taxes for any (i) gross
receipts taxes paid to another state with respect to the sales
of the products so extracted or manufactured in this state, (ii)
manufacturing taxes paid with respect to the manufacturing
of products using ingredients so extracted in this state, or
(iii) manufacturing taxes paid with respect to manufacturing
activities completed in another state for products so
manufactured in this state, The amount of the credit may not
exceed the tax liability arising under this chapter with respect
to the extraction or manufacturing of those products.
(5) For the purpose of this section:
(a) "Gross receipts tax" means a tax:
(i) Which is imposed on or measured by the gross volume of
business, in terms of gross receipts or in other terms, and in
the determination of which the deductions allowed would not
constitute the tax an income tax or value added tax; and
(ii) Which is also not, pursuant to law or custom, separately
stated from the sales price.
(b) "State" means (i) the state of Washington, (h) a state
of the United States other than Washington, or any political
subdivision of such other state, (iii) the District of Columbia,
and (iv) any foreign country or political subdivision thereof.
(c) "Manufacturing tax" means a gross receipts tax
imposed on the act or privilege of engaging in business as
a manufacturer, and includes (i) the taxes imposed in RCW
82.04.240, 82.04.2404, 82.04.2909(1), 82.04.260(1), (2} ((�►$}-
Initiative Measure 1107
and)) i4h (11), ((stet?; ram, �is�,�t}} and (12), and
82.04.2940); 00 the tax imposed under RCW 82.04.261 on
persons who are engaged in business as a manufacturer; and
(iii) similar gross receipts taxes paid to other states.
(d) "Extracting tax" means a gross receipts tax imposed on
the act or privilege of engaging in business as an extractor, and
includes (0 the tax imposed on extractors in RCW 82.04,230
and 82.44.260(({133}} L12 ; 60 the tax imposed under RCW
82.04.261 on persons who are engaged in business as an
extractor; and (iii) similar gross receipts taxes paid to other
states.
(e) "Business;"'manufacturer, "extractor and other terms
used in this section have the meanings given in RCW 82.04.020
through 82,04.212, notwithstanding the use of those terms in
the context of describing taxes imposed by other states.
PART III
REPEAL OFTAX INCREASES ON BOTTLED WATER AND
CANDY
Sec. 301. RCW 82.08.0293 and 2010 1st sp.s. c 23 s 902 are
each amended to read as follows:
(1)The tax levied by RCW 82-08,020 does not apply to sales
of food and food ingredients. "Food and food ingredients"
means substances, whether in Fquld, concentrated, solid,
frozen, dried, or dehydrated form, that are sold for ingestion
or chewing by humans and are consumed for their taste
or nutritional value. "Food and food ingredients" does not
include:
(a) "Alcoholic beverages," which means beverages that are
suitable for human consumption and contain one-half of one
percent or more of alcohol by volume; and
(b) "Tobacco," which means cigarettes, cigars, chewing or
pipe tobacco, or any other item that contains tobacco.
(2) (( r))The exemption of "food and food
ingredients" provided for in subsection (1) of this section
does not apply to prepared food, soft drinks, ((` -"'ate
eantly,)) or dietary supplements. (( egirrn fy-1 0 3
tKL-���d-and foods-pr�etide�fferirr
e iefr{ 1 } of tf� is seciivf ACeS
Cloes,vt apply to prep"e4400e -
sa#t-drinks, eandFor purposes of
this subsection, the following definitions apply:
(a) "Dietary supplement" means any product, other than
tobacco, intended to supplement the diet that:
(i) Contains one or more of the following dietary ingredients:
(A) A vitamin;
(B)A mineral;
(C) An herb or other botanical;
(D) An amino acid;
(E) A dietary substance for use by humans to supplement the
diet by increasing the total dietary intake; or
(F) A concentrate, metabolite, constituent, extract, or
combination of any ingredient described in this subsection;
(0) Is intended for ingestion in tablet, capsule, powder,
softgel, gelcap, or liquid form, or if not intended for ingestion in
such form, is not represented as conventional food and is not
represented for use as a sole item of a meal or of the diet; and
(iii) Is required to be labeled as a dietary supplement,
identifiable by the "supplement facts" box found on the label
as required pursuant to 21 C,FR. Sec. 101.36, as amended or
renumbered as of January 1, 2003.
(b)(i) "Prepared food" means:
(A) Food sold in a heated state or heated by the seller;
(B) Food sold with eating utensils provided by the seller,
123
including plates, knives, forks, spoons, glasses, cups, napkins,
or straws. A plate does not include a container or packaging
used to transport the food; or
(C)Two or more food ingredients mixed or combined by the
seller for sale as a single item, except:
(1) Food that is only cut, repackaged, or pasteurized by the
seller; or
(II) Raw eggs, fish, meat, poultry, and foods containing
these raw animal foods requiring cooking by the consumer
as recommended by the federal food and drug administration
in chapter 3, part 401.11 ofThe Food Code, published by the
food and drug administration, as amended or renumbered as
of January 1, 2003, so as to prevent foodborne illness.
(ii) "Prepared food" does not include the following food
or food ingredients, if the food or food ingredients are sold
without eating utensils provided by the seller:
(A) Food sold by a seller whose proper primary North
American industry classification system (NAICS) classification
is manufacturing in sector 311, except subsector 3118
(bakeries), as provided in the "North American industry
classification system --United States, 2002";
(B) Food sold in an unheated state by weight or volume as a
single item; or
(C) Bakery items. The term "bakery items" includes bread,
rolls, buns, biscuits, bagels, croissants, pastries, donuts,
Danish, cakes, tortes, pies, tarts, muffins, bars, cookies, or
tortillas.
(c) "Soft drinks" means nonalcoholic beverages that contain
natural or artificial sweeteners. Soft drinks do not include
beverages that contain: Milk or milk products; soy, rice,
or similar milk substitutes; or greater than fifty percent of
vegetable or fruit juice by volume.
{{{�Y�t�eiy"-rnearrs-a-prepatatiQ�-prar rey;-sr
"�vr-art ifteisi- sweeter�er�it?a t ien-wit�r-
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oxneft;-� v' )preser#,et+v a 4►r►+} q ose ff +ors extracts
er �SSeftCE3 [ 1=tVef�ffBRi e"3 if�E or f�[iif= o F=
itreF� watert#rat rdeFivere to
(3) Notwithstanding anything in this section to the contrary,
the exemption of "food and food ingredients" provided in this
section applies to food and food ingredients that are furnished,
prepared, or served as meals:
(a) Under a state administered nutrition program for the
aged as provided for in the olderAmericans act (P.L. 95-478
Title 111) and RCW 74.38.040(6);
(b)That are provided to senior citizens, individuals with
disabilities, or low-income persons by a not -for -profit
organization organized under chapter 24.03 or 24.12 RCW; or
(c)That are provided to residents, sixty-two years of age
or older, of a qualified low-income senior housing facility by
the lessor or operator of the facility. The sale of a meal that
is billed to both spouses of a marital community or both
domestic partners of a domestic partnership meets the age
requirement in this subsection (3)(c) if at least one of the
124
Initiative Measure 1107
spouses or domestic partners is at least sixty-two years of age.
For purposes of this subsection, "qualified low-income senior
housing facility" means a facility:
(i)That meets the definition of a qualified low-income
housing project under 26 U.S.C. Sec. 42 of the federal internal
revenue code, as existing on August 1, 2009;
(ii)That has been partially funded under 42 U.S.C. Sec. 1485;
and
(iii) For which the lessor or operator has at any time been
entitled to claim a federal income tax credit under 26 U.S.C.
Sec. 42 of the federal internal revenue code.
(4)(a) Subsection (1) of this section notwithstanding, the
retail sale of food and food ingredients is subject to sales tax
under RCW 82.08.020 if the food and food ingredients are sold
through a vending machine. Except as provided in (b) of this
subsection, the selling price of food and food ingredients sold
through a vending machine for purposes of RCW 82.08.020 is
fifty-seven percent of the gross receipts.
(b) For soft drinks and hot prepared food and food
ingredients, other than food and food ingredients which are
heated after they have been dispensed from the vending
machine, the selling price is the total gross receipts of such
sales divided by the sum of one plus the sales tax rate
expressed as a decimal.
(c) For tax collected under this subsection (4), the
requirements that the tax be collected from the buyer and that
the amount of tax be stated as a separate item are waived.
Sec. 302. RCW 82.08.0293 and 2010 1st sp.s. c 35 s 305 are
each amended to read as follows:
(1)The tax levied by RCW 82.08.020 does not apply to sales
of food and food ingredients. "Food and food ingredients"
means substances, whether in liquid, concentrated, solid,
frozen, dried, or dehydrated form, that are sold for ingestion
or chewing by humans and are consumed for their taste
or nutritional value. "Food and food ingredients" does not
include:
(a) 'Alcoholic beverages;' which means beverages that are
suitable for human consumption and contain one-half of one
percent or more of alcohol by volume; and
(b) "Tobacco;' which means cigarettes, cigars, chewing or
pipe tobacco, or any other item that contains tobacco.
(2)The exemption of "food and food ingredients" provided
for in subsection (1) of this section does not apply to
prepared food, soft drinks, ((bvtfiied wets► eanef)) or dietary
supplements. For purposes of this subsection, the following
definitions apply:
(a) "Dietary supplement" means any product, other than
tobacco, intended to supplement the diet that:
(i) Contains one or more of the following dietary ingredients:
(A) A vitamin;
(B) A mineral;
(C) An herb or other botanical;
(D) An amino acid;
(E) A dietary substance for use by humans to supplement the
diet by increasing the total dietary intake; or
(F) A concentrate, metabolite, constituent, extract, or
combination of any ingredient described in this subsection;
(ii) Is intended for ingestion in tablet, capsule, powder,
softgel, gelcap, or liquid form, or if not intended for ingestion in
such form, is not represented as conventional food and is not
represented for use as a sole item of a meal or of the diet; and
(iii) Is required to be labeled as a dietary supplement,
identifiable by the "supplement facts" box found on the label
as required pursuant to 21 C.F.R. Sec. 101.36, as amended or
renumbered as of January 1, 2003.
(b)(i) "Prepared food" means:
(A) Food sold in a heated state or heated by the seller;
(B) Food sold with eating utensils provided by the seller,
including plates, knives, forks, spoons, glasses, cups, napkins,
or straws. A plate does not include a container or packaging
used to transport the food; or
(C)Two or more food ingredients mixed or combined by the
seller for sale as a single item, except:
(1) Food that is only cut, repackaged, or pasteurized by the
seller; or
(II) Raw eggs, fish, meat, poultry, and foods containing
these raw animal foods requiring cooking by the consumer as
recommended by the federal food and drug administration in
chapter 3, part 401.11 ofThe Food Code, published by the food
and drug administration, as amended or renumbered as of
January 1, 2003, so as to prevent foodborne illness.
(ii) "Prepared food" does not include the following food
or food ingredients, if the food or food ingredients are sold
without eating utensils provided by the seller:
(A) Food sold by a seller whose proper primary North
American industry classification system (NAICS) classification
is manufacturing in sector 311, except subsector 3118
(bakeries), as provided in the "North American industry
classification system --United States, 2002";
(B) Food sold in an unheated state by weight or volume as a
single item; or
(C) Bakery items. The term "bakery items" includes bread,
rolls, buns, biscuits, bagels, croissants, pastries, donuts,
Danish, cakes, tortes, pies, tarts, muffins, bars, cookies, or
tortillas.
(c) "Soft drinks" means nonalcoholic beverages that contain
natural or artificial sweeteners. Soft drinks do not include
beverages that contain: Milk or milk products; soy, rice,
or similar milk substitutes; or greater than fifty percent of
vegetable or fruit juice by volume.
ffld) "Garr eafts�pa—,'-Oft-ef sugar-, honeq, or-
ether-rtetur"' or artifie"ai swfin eot biriat+errrrrvii41-
chocefate x44avo rings in the
%rn°rfl ieccs "c
prematio"earttsit►i�°�g flvkrs a frigeraFiortr
es+ante #ree ar+d flees rret ea+�tairrsw
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H iz "bo at;
oxygen; (vi)pronly those f#avofs_,�
Bsttted weter�
rncludes—atar+Hat4s-deFivere eussb4t
e9iTtftl !°hG�F'�Ft&t13-f�6t-3$fd-W iiiiT`'��nc�-'vr'�aic�) )
(3) Notwithstanding anything in this section to the contrary,
the exemption of "food and food ingredients" provided in this
section applies to food and food ingredients that are furnished,
prepared, or served as meals:
(a) Under a state administered nutrition program for the
aged as provided for in the older Americans act (P.L. 95-478
Title III) and RCW 74.38.040(6);
(b)That are provided to senior citizens, individuals with
disabilities, or low-income persons by a not -for -profit
organization organized under chapter 24.03 or 24.12 RCW; or
(c)That are provided to residents, sixty-two years of age
Initiative Measure 1107
or older, of a qualified low-income senior housing facility by
the lessor or operator of the facility. The sale of a meal that
is billed to both spouses of a marital community or both
domestic partners of a domestic partnership meets the age
requirement in this subsection (3)(c) if at least one of the
spouses or domestic partners is at least sixty-two years of age.
For purposes of this subsection, "qualified low-income senior
housing facility" means a facility:
O)That meets the definition of a qualified low-income
housing project under 26 U.S.C. Sec. 42 of the federal internal
revenue code, as existing on August 1, 2009;
(ii)That has been partially funded under 42 U.S.C. Sec. 1485; and
(iii) For which the lessor or operator has at any time been
entitled to claim a federal income tax credit under 26 U.S.C.
Sec. 42 of the federal internal revenue code.
(4)(a) Subsection (1) of this section notwithstanding, the
retail sale of food and food ingredients is subject to sales tax
under RCW 82.08.020 if the food and food ingredients are sold
through a vending machine. Except as provided in (b) of this
subsection, the selling price of food and food ingredients sold
through a vending machine for purposes of RCW 82.08.020 is
fifty-seven percent of the gross receipts.
(b) For soft drinks and hot prepared food and food
ingredients, other than food and food ingredients which are
heated after they have been dispensed from the vending
machine, the selling price is the total gross receipts of such
sales divided by the sum of one plus the sales tax rate
expressed as a decimal.
(c) For tax collected under this subsection (4), the
requirements that the tax be collected from the buyer and that
the amount of tax be stated as a separate item are waived.
Sec. 303. RCW 82.12.0293 and 2010 1st sp.s. c 23 s 903 are
each amended to read as follows:
(1)The provisions of this chapter do not apply in respect to
the use of food and food ingredients for human consumption.
"Food and food ingredients" has the same meaning as in RCW
82.08.0293.
(2) (( ,))The exemption of "food and food
ingredients" provided for in subsection (1) of this section
does not apply to prepared food, soft drinks, ((' "Rued -water,-
candy,)) or dietary supplements. ((Beginning july 1, 2013,
ti+ie exerrptserre#v� aF�, foecFi�gredient}�reel fv
eti"vrravcsFrit�y�T f3fEp9�ei�
€Qe+ sa#�#rinks�snelq er die#q stipplerre�rts )) "Prepared
food;' "soft drinks;' and "dietary supplements((;))" (( eat►dy=
�.r�k..�...�_._ .
a�.����Y��)) have the same meanings as in RCW
82.08.0293.
(3) Notwithstanding anything in this section to the contrary,
the exemption of "food and food ingredients" provided in this
section ((apply)) applies to food and food ingredients which are
furnished, prepared, or served as meals:
(a) Under a state administered nutrition program for the
aged as provided for in the older Americans act (PL. 95-478
Title III) and RCW 74.38.040(6);
(b) Which are provided to senior citizens, individuals
with disabilities, or low-income persons by a not -for -profit
organization organized under chapter 24.03 or 24.12 RCW; or
(c)That are provided to residents, sixty-two years of age
or older, of a qualified low-income senior housing facility by
the lessor or operator of the facility. The sale of a meal that
is billed to both spouses of a marital community or both
domestic partners of a domestic partnership meets the age
125
requirement in this subsection (3)(c) if at least one of the
spouses or domestic partners is at least sixty-two years of age.
For purposes of this subsection, "qualified low-income senior
housing facility" has the same meaning as in RCW 82.08.0293.
Sec. 304. RCW 82.12.0293 and 2010 1st sp.s. c 35 s 306 are
each amended to read as follows:
(1)The provisions of this chapter do not apply in respect to
the use of food and food ingredients for human consumption.
"Food and food ingredients" has the same meaning as in RCW
82.08.0293.
(2)The exemption of "food and food ingredients" provided
for in subsection (1) of this section does not apply to
prepared food, soft drinks, 0ottfed•watet! c =may;)) or dietary
supplements. "Prepared food," "soft drinks;' and "dietary
supplements((;))" have the
same meanings as in RCW 82.08.0293.
(3) Notwithstanding anything in this section to the contrary,
the exemption of "food and food ingredients" provided in
this section applies to food and food -ingredients which are
furnished, prepared, or served as meals:
(a) Under a state administered nutrition program for the
aged as provided for in the older Americans act (P.L. 95-478
Title III) and RCW 74.38.040(6);
(b) Which are provided to senior citizens, individuals
with disabilities, or low-income persons by a not -for -profit
organization organized under chapter 24.03 or 24.12 RCW; or
(c)That are provided to residents, sixty-two years of age
or older, of a qualified low-income senior housing facility by
the lessor or operator of the facility. The sale of a meal that
is billed to both spouses of a marital community or both
domestic partners of a domestic partnership meets the age
requirement in this subsection (3)(c) if at least one of the
spouses or domestic partners is at least sixty-two years of age.
For purposes of this subsection, "qualified low-income senior
housing facility" has the same meaning as in RCW 82.08.0293.
NEW SECTION. Sec. 305. The following acts or parts of acts
are each repealed:
(1) RCW 82.08.--- and 2010 1st sp.s c 23 s 904;
(2) RCW 82.12.--- and 2010 1st sp.s c 23 s 905;
(3) RCW 82.08.--- and 2010 1st sp.s c 23 s 906;
(4) RCW 82.12.--- and 2010 1st sp.s c 23 s 907; and
(5) RCW 82.04.--- and 2010 1st sp.s c 23 s 908.
PART IV
REPEAL OFTAX INCREASE ON CARBONATED
BEVERAGES
NEW SECTION. Sec. 401. RCW 82.--.--- through 82.--.--- and
2010 1st sp.s c 23 ss 1401 through 1406 are each repealed.
PART V
MISCELLANEOUS PROVISIONS
NEW SECTION. Sec. 501. The provisions of this act are to
be construed liberally so as to effectuate its intent.
NEW SECTION. Sec. 502. If any provision of this act or its
application to any person or circumstance is held invalid, the
remainder of the act or the application of the provision to other
persons or circumstances is not affected.
NEW SECTION. Sec. 503. Sections 302 and 304 of this act
take effect on the date that chapter 35, sections 305 and 306,
Laws of 2010 (Engrossed House Bill No. 2561) take effect.
=A0rpm
125 Referendum Bill 52 1j Referendum Bill 52 1.27 ,
Complete Text does not expire until the full authorization has been issued.
(4) No bonds authorized in this section may be offered
Referendum Bill 52 for sale without prior legislative appropriation of the net
proceeds of the sale of the bonds.
AN ACT Relating to creating jobs by funding construction
of energy cost saving improvements to public facilities
and raising revenue therefor; amending RCW 82.08.0293,
82.12.0293, and 39.94.040; adding a new chapter toTitl.e
43 RCW; creating new sections; making an appropriation;
providing a contingent effective date; providing for
submission of certain sections of this act to a vote of the
people; and declaring an emergency.
BE IT ENACTED BYTHE LEGISLATURE OFTHE STATE OF
WASHINGTON:
PART I
SHORTTITLE AND INTENT
NEW SECTION. Sec. 101. This act may be known and
cited as the 12 jobs act.
NEW SECTION. Sec. 102. The legislature intends to create
jobs in every corner of Washington state by issuing bonds,
which will catalyze energy savings and repair work at public
schools and state colleges and universities.
It is the intent of the legislature that these investments
will create jobs quickly and directly, at a time when the
state's residents need jobs. It is the further intent of the
legislature that these investments both accelerate innovation
in the energy efficiency sector and create locally developed
technologies and companies to provide sustainable jobs.
The legislature intends to prioritize the use of innovative
technologies and facilitate the development of a sustainable
innovation cluster that creates and installs highly efficient
building technologies and creates jobs.
The legislature intends that these job -creating projects
save taxpayers money, with an estimated one hundred
twenty-six million dollars saved each year in public schools
through reduced energy and operational costs, and improve
the health and safety of those buildings.The energy savings
are equivalent to the use of an estimated ninety thousand
houses. It is also the intent of the legislature that these
job -creating projects lead to reduced pollutants, as the
weatherization and energy efficiency projects will reduce
pollution emissions by an estimated amount equivalent to
removing an estimated one hundred thirty thousand cars
from the roads each year.
PART 11
BOND AUTHORIZATION
NEW SECTION. Sec. 201. (1) For the purpose of creating
jobs by constructing needed capital improvements to public
facilities for energy, utility, and operational cost savings,
the state finance committee is authorized to issue general
obligation bonds of the state of Washington in the sum of
five hundred five million dollars, or so much thereof as may
be required, for this purpose and all costs incidental thereto.
The bonds issued under the authority of this section are
known as jobs act bonds.
(2) Bonds authorized in this section must be sold in the
manner, at the time or times, in amounts, and at such prices
as the state finance committee determines.
(3)The authorization to issue bonds contained in this chapter
NEW SECTION. Sec. 202. (1)The nondebt-limit general
fund bond retirement account must be used for the payment
of the principal -of and interest on the bonds authorized in
section 201 of this act.
(2)The state finance committee must, on or before
June 30th of each year, certify to the state treasurer the
amount needed in the ensuing twelve months to meet the
bond retirement and interest requirements on the bonds
authorized in section 201 of this act.
(3) On each date on which any interest or principal and
interest payment is due on bonds issued for the purposes of
section 201 of this act, the state treasurer shall withdraw from
any general state revenues received in the state treasury and
deposit in the nondebt-limit general fund bond retirement
account an amount equal to the amount certified by the state
finance committee to be due on the payment date.
NEW SECTION. Sec. 203. (1) Bonds issued under this
section and sections 201 and 202 of this act must state that
they are a general obligation of the state of Washington,
must pledge the full faith and credit of the state to the
payment of the principal thereof and the interest thereon,
and must contain an unconditional promise to pay the
principal and interest as the same shall become due.
(2)The owner and holder of each of the bonds or the
trustee for the owner and holder of any of the bonds may
by mandamus or other appropriate proceeding require the
transfer and payment of funds as directed in this section.
PART III
PROGRAM REQUIREMENTS, APPROPRIATIONS, AND
REVENUE PROVISIONS
NEW SECTION. Sec. 301. (1)The department of
commerce, in consultation with the department of general
administration and the Washington State University energy
program, shall administer the jobs act.
(2)The department of general administration must
develop guidelines that are consistent with national and
international energy savings performance standards for the
implementation of energy savings performance contracting
projects by the energy savings performance contractors by
December 31, 2010.
(3)The definitions in this section apply throughout this
chapter and section 302 of this act unless the context clearly
requires otherwise.
(a) "Cost-effectiveness" means that the present value
to higher education institutions and, school districts of the
energy reasonably expected to be saved or produced by
a facility, activity, measure, or piece of equipment over its
useful life, including any compensation received from a
utility or the Bonneville power administration, is greater
than the net present value of the costs of implementing,
maintaining, and operating such facility, activity, measure, or
piece of equipment over its useful life, when discounted at
the cost of public borrowing.
(b) "Energy cost savings" means savings realized in
expenses for energy use and expenses associated with
water, wastewater, or solid waste systems.
(c) "Energy equipment" means energy management
systems and any equipment, materials, or supplies that
are expected, upon installation, to reduce the energy use
or energy cost of an existing building or facility, and the
services associated with the equipment, materials, or
supplies, including but not limited to design, engineering,
financing, installation, project management, guarantees,
operations, and maintenance, Reduction in energy use or
energy cost may also include reductions in the use or cost of
water, wastewater, or solid waste.
(d) "Energy savings performance contracting" means
the process authorized by chapter 39.35C RCW by which a
company contracts with a public agency to conduct energy
audits and guarantee energy savings from energy efficiency.
(e) "Innovative measures" means advanced or emerging
technologies, systems, or approaches that may not yet be in
common practice but improve energy efficiency, accelerate
deployment, or reduce energy usage, and become widely
commercially available in the future if proven successful
in demonstration programs without compromising the
guaranteed performance or measurable energy and
operational cost savings anticipated. Examples of innovative
measures include, but are not limited to, advanced energy
and systems operations monitoring, diagnostics, and
controls systems for buildings; novel heating, cooling,
ventilation, and water heating systems; advanced windows
and insulation technologies, highly efficient lighting
technologies, designs, and controls; and integration of
renewable energy sources into buildings, and energy savings
verification technologies and solutions.
(f) "Operational cost savings" means savings realized
from parts, service fees, capital renewal costs, and other
measurable annual expenses to maintain and repair systems.
This definition does not mean labor savings related to
existing facility staff.
(g) "Public facilities" means buildings, building
components, and major equipment or systems owned
by public school districts and public higher education
institutions.
NEW SECTION. Sec. 302. (1) Within appropriations
specifically provided for the purposes of this chapter,
the department of commerce, in consultation with the
department of general administration, and the Washington
State University energy program shall establish a
competitive process to solicit and evaluate applications from
public school districts, public higher education institutions,
and other state agencies. Final grant awards shall be
determined by the department of commerce.
(2) Grants must be awarded in competitive rounds, based
on demand and capacity, with at least five percent of each
grant round awarded to small public school districts with
fewer than one thousand full-time equivalent students, based
on demand and capacity.
(3) Within each competitive round, projects must be
weighted and prioritized based on the following criteria and
in the following order:
(a) Leverage ratio: In each round, the higher the leverage
ratio of nonstate funding sources to state jobs act grant, the
higher the project ranking.
(b) Energy savings: In each round, the higher the energy
savings, the higher the project ranking. Applicants must
submit documentation that demonstrates energy and
operational cost savings resulting from the installation
of the energy equipment and improvements. The energy
savings analysis must be performed by a licensed engineer
and documentation must include but is not limited to the
following:
(i) A description of the energy equipment and
improvements;
(ii) A description of the energy and operational cost
savings; and
(iii) A description of the extent to which the project
employs collaborative and innovative measures and
encourages demonstration of new and emerging
technologies with high energy savings or energy cost
reductions.
(c) Expediency of expenditure: Project readiness to spend
funds must be prioritized so that the legislative intent to
expend funds quickly is met.
(4) Projects that do not use energy savings performance
contracting must: (a) Verify energy and operational cost
savings, as defined -in section 301 of this act, for ten years
or until the energy and operational costs savings pay for
the project, whichever is shorter; (b) follow the department
of general administration's energy savings performance
contracting project guidelines developed pursuant to
section 301 of this act; and (c) employ a licensed engineer
for the energy audit and construction. The department of
commerce may require third -party verification of savings
if a project is not implemented by an energy savings
performance contractor selected by the department of
general administration through the request of qualifications
process. Third -party verification must be conducted either
by an energy savings performance contractor selected by
the department of general administration through a request
for qualifications, a licensed engineer specializing in energy
conservation, or by a project resource conservation manager
or educational service district resource conservation
manager.
(5)To intensify competition, the department of commerce
may only award funds to the top eighty-five percent
of projects applying in a round until the department of
commerce determines a final round is appropriate. Projects
that do not receive a grant award in one round may reapply
in subsequent rounds.
(6)To match federal grants and programs that require state
matching funds and produce significantly higher efficiencies
in operations and utilities, the level of innovation criteria may
be increased for the purposes of weighted scoring to capture
those federal dollars for selected projects that require a
higher level of innovation and regional collaboration.
(7) Grant amounts awarded to each project must allow for
the maximum number of projects funded with the greatest
energy and cost benefit.
(8)(a)The department of commerce must use bond
proceeds to pay one- half of the preliminary audit, up to five
cents per square foot, if the project does not meet the school
district's and higher education institution's predetermined
cost-effectiveness criteria. School districts and higher
education institutions must pay the other one-half of the cost
of the preliminary audit if the project does not meet their
Predetermined cost-effectiveness criteria.
(b)The energy savings performance contractor may not
charge for an investment grade audit if the project does not
J,
128
Referendum Bill 52
meet the school district's and higher education institution's
predetermined cost-effectiveness criteria. School districts
and higher education institutions must pay the full price
of an investment grade audit if they do not proceed with a
project that meets the school district's and higher education
institution's predetermined cost-effectiveness criteria.
(9)The department of commerce may charge projects
administrative fees and may pay the department of general
administration and the Washington State University energy
program administration fees in an amount determined
through a memorandum of understanding.
(10)The department of commerce and the department
of general administration must submit a joint report to the
appropriate committees of the legislature and the office of
financial management on the timing and use of the grant
funds, program administrative function, compliance with
apprenticeship utilization requirements in RCW 39.04.320,
compliance with prevailing wage requirements, and
administration fees by the end of each fiscal year, until
the funds are fully expended and all savings verification
requirements are fulfilled.
NEW SECTION. Sec. 303. FORTHE DEPARTMENT OF
COMMERCE --JOBS ACT
The appropriation in this section is subject to the following
conditions and Iimitations:The appropriation is for fiscal
year 2011 and is provided solely for grants to public
school districts and public higher education institutions
for energy and operational cost savings improvements to
public facilities and related projects that result in energy
and operational cost savings under the provision and
requirements of sections 301 and 302 of this act. Related
projects are those projects that must be completed in order
for the energy efficiency improvements to be effective.
Appropriation:
Washington Works Account --State ............$500,000,000
Prior Biennia (Expenditures) ...................$0
Future Biennia (Projected Costs) ................. $0
TOTAL.......................$500,000,000
NEW SECTION. Sec. 304. The legislature intends to
increase general state revenues to pay for a portion of the
increased debt service costs for voter -approved bonds and
for debt -limit bonds authorized by the legislature for projects
awarded grants under sections 301 and 302 of this act for
energy efficiency projects in public facilities.
Sec. 305. RCW 82.08.0293 and 2010 1st sp.s. c ... (2ESSB
6143) s 902 are each amended to read as follows:
(1)The tax levied by RCW 82.08.020 does not apply to sales
of food and food ingredients. "Food and food ingredients"
means substances, whether in liquid, concentrated, solid,
frozen, dried, or dehydrated form, that are sold for ingestion
or chewing by humans and are consumed for their taste
or nutritional value. "Food and food ingredients" does not
include:
(a) "Alcoholic beverages," which means beverages that are
suitable for human consumption and contain one-half of one
percent or more of alcohol by volume; and
(b) "Tobacco," which means cigarettes, cigars, chewing or
pipe tobacco, or any other item that contains tobacco.
(2) (( ,))The exemption of "food and food
ingredients" provided for in subsection (1) of this section
does not apply to prepared food, soft drinks, bottled water,
candy, or dietary supplements. ((Beginning july 1, 2013,
tyre esre. for
n su bsecto o n (1) of th 0 s secto o n do es n ot a p pl y to p re pared
#�c�d-sr�fl drifts -ea rdy�rr diets ry plern a rat)) For
purposes of this subsection, the following definitions apply:
(a) "Dietary supplement" means any product, other than
tobacco, intended to supplement the diet that:
(i) Contains one or more of the following dietary
ingredients:
(A) A vitamin;
(B) A mineral;
(C) An herb or other botanical;
(D) An amino acid;
(E) A dietary substance for use by humans to supplement
the diet by increasing the total dietary intake; or
(F) A concentrate, metabolite, constituent, extract, or
combination of any ingredient described in this subsection;
(ii) Is intended for ingestion in tablet, capsule, powder,
softgel, gelcap, or liquid form, or if not intended for ingestion
in such form, is not represented as conventional food and
is not represented for use as a sole item of a meal or of the
diet; and
(iii) Is required to be labeled as a dietary supplement,
identifiable by the "supplement facts" box found on the label
as required pursuant to 21 C.F.R. Sec. 101.36, as amended or
renumbered as of January 1, 2003.
(b)(i) "Prepared food" means:
(A) Food sold in a heated state or heated by the seller;
(B) Food sold with eating utensils provided by the seller,
including plates, knives, forks, spoons, glasses, cups,
napkins, or straws. A plate does not include a container or
packaging used to transport the food; or
(C)Two or more food ingredients mixed or combined by
the seller for sale as a single item, except:
(1) Food that is only cut, repackaged, or pasteurized by the
seller; or
(II) Raw eggs, fish, meat, poultry, and foods containing
these raw animal foods requiring cooking by the
consumer as recommended by the federal food and drug
administration in chapter 3, part 401.11 ofThe Food Code,
published by the food and drug administration, as amended
or renumbered as of January 1, 2003, so as to prevent
foodborne illness.
(ii) "Prepared food" does not include the following food
or food ingredients, if the food or food ingredients are sold
without eating utensils provided by the seller:
(A) Food sold by a seller whose proper primary North
American industry classification system (NAICS) classification
is manufacturing in sector 311, except subsector 3118
(bakeries), as provided in the "North American industry
classification system --United States, 2002";
(B) Food sold in an unheated state by weight or volume as
a single 38 item; or
(C) Bakery items.The term "bakery items" includes bread,
rolls, buns, biscuits, bagels, croissants, pastries, donuts,
Danish, cakes, tortes, pies, tarts, muffins, bars, cookies, or
tortillas.
(c) "Soft drinks" means nonalcoholic beverages that
contain natural or artificial sweeteners. Soft drinks do not
include beverages that contain: Milk or milk products; soy,
rice, or similar milk substitutes; or greater than fifty percent
Referendum Bill 52 129
of vegetable or fruit juice by volume.
(d) "Candy" means a preparation of sugar, honey, or
other natural or artificial sweeteners in combination with
chocolate, fruits, nuts, or other ingredients or flavorings in
the form of bars, drops, or pieces. "Candy" does not include
any preparation containing flour and does not require
refrigeration.
(e) "Bottled water" means water that is placed in a sealed
container or package for human consumption. Bottled water
is calorie free and does not contain sweeteners or other
additives except that it may contain: (i) Antimicrobial agents;
(ii) fluoride; (iii) carbonation; (iv) vitamins, minerals, and
electrolytes; (v) oxygen; (vi) preservatives; and (vii) only
those flavors, extracts, or essences derived from a spice or
fruit. "Bottled water" includes water that is delivered to the
buyer in a reusable container that is not sold with the water.
(3) Notwithstanding anything in this section to the
contrary, the exemption of "food and food ingredients"
provided in this section applies to food and food ingredients
that are furnished, prepared, or served as meals:
(a) Under a state administered nutrition program for the
aged as provided for in the older Americans act (P.L. 95-478
Title III) and RCW 29 74.38.040(6);
(b)That are provided to senior citizens, individuals with
disabilities, or low-income persons by a not -for -profit
organization organized under chapter 24.03 or 24.12 RCW; or
(c)That are provided to residents, sixty-two years of age
or older, of a qualified low-income senior housing facility by
the lessor or operator of the facility.The sale of a meal that
is billed to both spouses of a marital community or both
domestic partners of a domestic partnership meets the age
requirement in this subsection (3)(c) if at least one of the
spouses or domestic partners is at least sixty-two years of
age. For purposes of this subsection, "qualified low-income
senior housing facility" means a facility:
(i)That meets the definition of a qualified low-income
housing project under 26 U.S.C. Sec. 42 of the federal
internal revenue code, as existing on August 1, 2009;
(ii)That has.been partially funded under 42 U.S.C. Sec.
1485;and
(iii) For which the lessor or operator has at any time been
entitled to claim a federal income tax credit under 26 U.S.C.
Sec. 42 of the federal internal revenue code.
(4)(a) Subsection (1) of this section notwithstanding, the
retail sale of food and food ingredients is subject to sales tax
under RCW 82.08.020 if the food and food ingredients are
sold through a vending machine. Except as provided in (b) of
this subsection, the selling price of food and food ingredients
sold through a vending machine for purposes of RCW
82.08.020 is fifty-seven percent of the gross receipts.
(b) For soft drinks and hot prepared food and food
ingredients, other than food and food ingredients which are
heated after they have been dispensed from the vending
machine, the selling price is the total gross receipts of such
sales divided by the sum of one plus the sales tax rate
expressed as a decimal.
(c) For tax collected under this subsection (4), the
requirements that the tax be collected from the buyer and
that the amount of tax be stated as a separate item are
waived.
Sec. 306. RCW 82.12.0293 and 2010 1 st sp.s. c ... (2ESSB
6143) s 903 are each amended to read as follows:
(1)The provisions of this chapter do not apply in
respect to the use of food and food ingredients for human
consumption. "Food and food ingredients" has the same
meaning as in RCW 82.08.0293.
(2) (( ))The exemption of "food and food
ingredients" provided for in subsection (1) of this section
does not apply to prepared food, soft drinks, bottled water,
candy, or dietary supplements. ((Beginning itily 1, 2013,
�pand food ingredients" provided X—f-
its sub s—tio°r(+Yin4--thisseetio p-pm-pef&d-
f d afE�,rkS navy,-er-[#ietafy-supper ��c�c .)) "Prepared
food;' "soft drinks;' "dietary supplements;' "candy;' and
"bottled water" have the same meanings as in RCW
82.08.0293.
(3) Notwithstanding anything in this section to the contrary,
the exemption of "food and food ingredients" provided in this
section ((apply)) applies to food and food ingredients which
are furnished, prepared, or served as meals:
(a) Under a state administered nutrition program for the
aged as provided for in the older Americans act (P.L. 95-478
Title 111) and RCW 74.38.040(6);
(b) Which are provided to senior citizens, individuals
with disabilities, or low-income persons by a not -for -profit
organization organized under chapter 24.03 or 24.12 RCW; or
(c)That are provided to residents, sixty-two years of age
or older, of a qualified low-income senior housing facility by
the lessor or operator of the facility. The sale of a meal that
is billed to both spouses of a marital community or both
domestic partners of a domestic partnership meets the age
requirement in this subsection (3)(c) if at least one of the
spouses or domestic partners is at least sixty-two years of
age. For purposes of this subsection, "qualified low-income
18 senior housing facility" has the same meaning as in RCW
82.08.0293.
PART IV
TECHNICAL PROVISIONS
NEW SECTION. Sec. 401. (1)The legislature may provide
additional means for raising moneys for the payment of
the principal of and interest on the bonds authorized in
section 201 of this act, and section 202 of this act may not be
deemed to provide an exclusive method for the payment.
(2)The office of the state treasurer must determine a
mechanism to allow individual Washington state residents to
purchase jobs act bonds.
NEW SECTION. Sec. 402. The bonds authorized by this
chapter constitute a legal investment for all state funds or
for funds under state control and all funds of municipal
corporations.
NEW SECTION. Sec. 403. The state finance committee
is authorized to prescribe the form, terms, conditions, and
covenants of the bonds provided for in this act, the time or
times of sale of all or any portion of them, and the conditions
and manner of their sale and issuance.
NEW SECTION. Sec. 404. The Washington works account
is created in the state treasury. All receipts from bonds
authorized under section 201 of this act must be deposited
in the account. Moneys in the account may be spent only
after appropriation. The proceeds from the sale of the bonds
authorized in section 201 of this act must be deposited in the
account. Moneys in the account must be used exclusively for:
u
130
Referendum Bill 52
(1)The purposes of sections 301, 302, and 303 of this
act, which includes energy and operational cost savings
improvements and related projects that result in energy and
operational cost savings for public school districts and public
higher education institutions; and
(2)The payment of the expenses incurred in connection
with the sale and issuance of the bonds.
NEW SECTION. Sec. 405. If the state finance committee
deems it necessary to issue any portion of the bonds
authorized in this chapter as taxable bonds in order to
comply with federal internal revenue service rules and
regulations pertaining to the use of nontaxable bond
proceeds, the proceeds of such taxable bonds must be
transferred to the state taxable building construction account
in lieu of any deposits otherwise provided by section 404
of this act.The state treasurer must submit written notice to
the director of financial management if it is determined that
any such transfer to the state taxable building construction
account is necessary. Moneys in the account may be spent
only after appropriation. For purposes of this section,
"nontaxable bond proceeds" includes proceeds from bonds
issued as tax exempt bonds and proceeds from taxable
bonds eligible for direct federal subsidy under federal
internal revenue service rules.
Sec. 406. RCW 39.94.040 and 2003 c 6 s 2 are each
amended to read as follows:
(1) Except as provided in RCW 28B.10.022, the state may
not enter into any financing contract for itself if the aggregate
principal amount payable thereunder is greater than an
amount to be established from time to time by the state
finance committee or participate in a program providing for
the issuance of certificates of participation, including any
contract for credit enhancement, without the prior approval
of the state finance committee. Except as provided in RCW
28B.10.022, the state finance committee shall approve the
form of all financing contracts or a standard format for all
financing contracts.The state finance committee also may:
(a) Consolidate existing or potential financing contracts
into master financing contracts with respect to property
acquired by one or more agencies, departments,
instrumentalities of the state, the state board for community
and technical colleges, or a state institution of higher
learning; or to be acquired by an other agency;
(b) Approve programs providing for the issuance of
certificates of participation in master financing contracts for
the state or for other agencies;
(c) Enter into agreements with trustees relating to master
financing contracts; and
(d) Make appropriate rules for the performance of its duties
under this chapter.
(2) In the performance of its duties under this chapter, the
state finance committee may consult with representatives
from the department of general administration, the office of
financial management, and the department of information
services.
(3) With the approval of the state finance committee, the
state also may enter into agreements with trustees relating
to financing contracts and the issuance of certificates of
participation.
(4) Except for financing contracts for real property used for
the purposes described under chapter 28B.140 RCW, the state
may not enter into any financing contract for real property of
the state without prior approval of the legislature.
(5)The state may not enter into any financing contract
on behalf of an other agency without the approval of such
a financing contract by the governing body of the other
agency. For the purposes of this requirement, a financing
contract must be treated as used fQr real property if it is
being entered intp by_the state for the acquisition of land:
the acquisition of an existing building; the construction
of a new building, or a major remodeling, renovation.
re -habilitation, or rebuilding of an„existing building:, Prior
a_onrovaI of the legisla_tureds-not required under this chapter,
for a f i na nci nct contract ente reCl into by the state and r thi
chaple r for -energy consery tion im proy m ents to x' 'n
building,$ where_such'Improvements ,include lai fixtures
and equiument that are no part of a major remodeling
renovation, rehabilitati n. or rebuildinci of the building, or b
other irnprovements to the, building that „are be
ingnerform_ed
for the rp i ma ry purpose of energy conservation. Such energy
conservation improvements must be determined eligible
# or f ina nci ng and r this cha r by the-ffice f f i na, ncia, l
_rnan_agem_ent in_accordance with financing auidelines
established by the state treasurer. and -are to be treated as
personal property for the purposes of this chapter.
PART V
REFERENDUM PROVISIONS
NEW SECTION. Sec. 501. (1)The secretary of state shall
submit sections 101 through 203 and 401 through 405 of
this act to the people for their adoption and ratification, or
rejection, at the next general election to be held in this state,
in accordance with Article II, section 1 and Article VIII, section
3 of the state Constitution and the laws adopted to facilitate
their operation.
(2) If the people ratify this act as specified under
subsection (1) of this section, revenues generated shall be
spent as detailed in this act.
(3) Pursuant to RCW 29A.72.050(6), the statement of
subject and concise description for the ballot title shall read:
"The legislature has passed Engrossed House Bill No. 2561
(this act), concerning job creation through energy efficiency
projects in school buildings.This bill would promote job
creation by authorizing bonds to construct energy efficiency
savings improvements to schools, including higher
education buildings.'
NEW SECTION. Sec. 502. Sections 303 through 306
of this act are contingent upon approval by the voters of
sections 101 through 203 and 401 through 405 of this act. If
sections 101 through 203 and 401 through 405 of this act are
not approved by the voters by December 1, 2010, sections
303 through 306 of this act are null and void.
NEW SECTION. Sec. 503. Sections 201 through 203, 301,
302, and 401 through 405 of this act constitute a new chapter
inTitle 43 RCW.
PART VI
MISCELLANEOUS PROVISIONS
NEW SECTION. Sec. 601. This act takes effect if Second
Engrossed Substitute Senate Bill No. 6143 is enacted by the
legislature during the 2010 1st special session.
05_�►�IDAM
Senate Joint Resolution 8225
Complete Text
Senate Joint Resolution 8225
BE IT RESOLVED, BYTHE SENATE AND HOUSE OF
REPRESENTATIVES OFTHE STATE OFWASHINGTON, IN
LEGISLATIVE SESSION ASSEMBLED:
THAT, At the next general election to be held in this state
the secretary of state shall submit to the qualified voters of
the state for their approval and ratification, or rejection, an
amendment to Article VIII, section 1 of the Constitution of the
state of Washington to read'as follows:
Article VIII, section 1.
(a)The state may contract debt, the principal of which shall
be paid and discharged within thirty years from the time of
contracting thereof, in the manner set forth herein.
(b)The aggregate debt contracted by the state shall not
exceed that amount for which payments of principal and
interest in any fiscal year would require the state to expend
more than nine percent of the arithmetic mean of its general
state revenues for the three immediately preceding fiscal
years as certified by the treasurer.The term "fiscal year"
means that period of time commencing July 1 of any year
and ending on June 30 of the following year.
(c)The term "general state revenues" when used in this
section, shall include all state money received in the treasury
from each and every source whatsoever except: (1) Fees
and revenues derived from the ownership or operation of
any undertaking, facility, or project; (2) Moneys received as
gifts, grants, donations, aid, or assistance or otherwise from
the United States or any department, bureau, or corporation
thereof, or any person, firm, or corporation, public or private,
when the terms and conditions of such gift, grant, donation,
aid, or assistance require the application and disbursement
of such moneys otherwise than for the general purposes
of the state of Washington; (3) Moneys to be paid into and
received from retirement system funds, and performance
bonds and deposits; (4) Moneys to be paid into and received
from trust funds including but not limited to moneys
received from taxes levied for specific purposes and the
several permanent and irreducible funds of the state and the
moneys derived therefrom but excluding bond redemption
funds; (5) Proceeds received from the sale of bonds or other
evidences of indebtedness.
(d) In computing the amount required for payment
of principal and interest on outstanding debt under
this section, debt shall be construed to mean borrowed
money represented by bonds, notes, or other evidences of
indebtedness which are secured by the full faith and credit
of the state or are required to be repaid, directly or indirectly,
from general state revenues and which are incurred by the
state, any department, authority, public corporation, or
quasi public corporation of the state, any state university
or college, or any other public agency created by the state
but not by counties, cities, towns, school districts, or other
municipal corporations, but shall not include obligations
for the payment of current expenses of state government,
nor shall it include debt hereafter incurred pursuant to
section 3 of this article, obligations guaranteed as provided
for in subsection (g) of this section, principal of bond
anticipation notes or obligations issued to fund or refund
131
the indebtedness of the Washington state building authority.
In addition for the uur os of cam 12utin the m u nt
r u' ed for a ment of interesi on outstanding b under
subs-W on (4) of this section and this subsection, "interest"
shall be reduced by subtracting the amount scheduled
to be received by the state as payments from the federal
vernm nt in each year in res e f ds notes,or r
evidences_off indebtedness subject to this section.
(e)The state may pledge the full faith, credit, and taxing
power of the state to guarantee the voter approved general
obligation debt of school districts in the manner authorized
by the legislature. Any such guarantee does not remove the
debt obligation of the school district and is not state debt.
(f)The state may, without limitation, fund or refund, at or
prior to maturity, the whole or any part of any existing debt
or of any debt hereafter contracted pursuant to section 1,
section 2, or section 3 of this article, including any premium
payable with respect thereto and interest thereon, or fund or
refund, at or prior to maturity, the whole or any pan: of any
indebtedness incurred or authorized prior to the effective
date of this amendment by any entity of the type described
in subsection (h) of this section, including any premium
payable with respect thereto and any interest thereon. Such
funding or refunding shall not be deemed to be contracting
debt by the state.
(g) Notwithstanding the limitation contained in subsection
(b) of this section, the state may pledge its full faith, credit,
and taxing power to guarantee the payment of any obligation
payable from revenues received from any of the following
sources: (1) Fees collected by the state as license fees for
motor vehicles; (2) Excise taxes collected by the state on the
sale, distribution or use of motor vehicle fuel; and (3) Interest
on the permanent common school fund: Provided, That the
legislature shall, at all times, provide sufficient revenues
from such sources to pay the principal and interest due on all
obligations for which said source of revenue is pledged.
(h) No money shall be paid from funds in custody of
the treasurer with respect to any debt contracted after the
effective date of this amendment by the Washington state
building authority, the capitol committee, or any similar
entity existing or operating for similar purposes pursuant to
which such entity undertakes to finance or provide a facility
for use or occupancy by the state or any agency, department,
or instrumentality thereof.
O)The legislature shall prescribe all matters relating to
the contracting, funding or refunding of debt pursuant to
this section, including:The purposes for which debt may
be contracted; by a favorable vote of three -fifths of the
members elected to each house, the amount of debt which
may be contracted for any class of such purposes; the kinds
of notes, bonds, or other evidences of debt which may be
issued by the state; and the manner by which the treasurer
shall determine and advise the legislature, any appropriate
agency, officer, or instrumentality of the state as to the
available debt capacity within the limitation set forth in this
section.The legislature may delegate to any state officer,
agency, or instrumentality any of its powers relating to
the contracting, funding or refunding of debt pursuant to
this section except its power to determine the amount and
purposes for which debt may be contracted.
(j)The full faith, credit, and taxing power of the state of
Washington are pledged to the payment of the debt created
132 Senate Joint Resolution 8225 I Engrossed Substitute House Joint Resolution 4220
on behalf of the state pursuant to this section and the
legislature shall provide by appropriation for the payment
of the interest upon and installments of principal of all such
debt as the same falls due, but in any event, any court of
record may compel such payment.
(k) Notwithstanding the limitations contained in subsection
(b) of this section, the state may issue certificates of
indebtedness in such sum or sums as may be necessary to
meet temporary deficiencies'of the treasury, to preserve the
best interests of the state in the conduct of the various state
institutions, departments, bureaus, and agencies during each
fiscal year; such certificates may be issued only to provide
for appropriations already made by the legislature and such
certificates must be retired and the debt discharged other
than by refunding within twelve months after the date of
incurrence.
(1) Bonds, notes, or other obligations issued and sold by
the state of Washington pursuant to and in conformity with
this article shall not be invalid for any irregularity or defect in
the proceedings of the issuance or sale thereof and shall be
incontestable in the hands of a bona fide purchaser or holder
thereof.
BE IT FURTHER RESOLVED,That the secretary of state
shall cause notice of this constitutional amendment to be
published at least four times during the four weeks next
preceding the election in every legal newspaper in the state.
M40101M
Kids can vote
in the Mock Election!
Kids vote at www.vote.wa.gov
Kids grades K-12 can vote in the Mock Election
for real candidates and ballot measures. Online
voting is open from 9 a.m. on October 25 until
noon on October 29.
Kids have their say on TV
A special discussion forum for kids hosted by
TVW, Washington's Public Affairs Network, will
be televised on Thursday, October 21. Questions
emailed to just4you@sos.wa.gov before October
19 could be read onTV.
Artwork by Jack Sovelove, Lopez Island Elementary (grade 4)
Complete Text
Engrossed Substitute House Joint Resolution 4220
BE IT RESOLVED, BYTHE SENATE AND HOUSE OF
REPRESENTATIVES OFTHE STATE OF WASHINGTON, IN
LEGISLATIVE SESSION ASSEMBLED:
THAT, At the next general election to be held in this state
the secretary of state shall submit to the qualified voters of
the state for their approval and ratification, or rejection, an
amendment to Article I, section 20 of the Constitution of the
state of Washington to read as follows:
Article I, section 20. All persons charged with crime
shall be bailable by sufficient sureties, except for capital
offenses when the proof is evident, or the presumption
great. Bail may be denied for offenses punishabie by the
possibility of life in prison_ upon a showing by clear and
convincing evidence of a nropensityfor violence that creates
a suhstantial_Iikef_ihQo-d of danger to the community or any
persons, sub;ect to such limitations as shall be determined
bvth_e heciislature.
BE IT FURTHER RE_ SOLVED.That the secretary of state
shall cause notice of this constitutional amendment to be
published at least four times during the four weeks next
preceding the election in every legal newspaper in the s#ate.
-- END --
0 Political Party
Contact Information
Washington State Democrats
PO Box 4027
Seattle, WA 98194
(206) 583-0664
info @wa-democrats.org
www.wa-democrats.org
Washington State Republican Party
2840 Northup Way, Ste 140
Bellevue, WA 98004
(425) 460-0570
wagop@wsrp.org
www.wsrp.org
'it together
Be the smartest voter on the block.
The voters' pamphlet is a good source, but
not the only source of information about
issues and candidates.
Information about state candidate and ballot
measure contributors is available from the
Public Disclosure Commission
www.pdc.wa.gov.
Information about federal candidate
contributors is available from the Federal
Election Commission www.fec.gov.
Information about voting records is available
from the Washington Legislature
www.leg.wa.gov, the U.S. House of
Representatives www.house.gov, and the
U.S. Senate www.senate.gov.
Visit candidates' websites or call them
directly to learn their positions on issues that
matter to you.
Refer to other sources such as the news or
associations you trust (labor unions, civic
clubs, or religious, political, environmental,
or business associations).
0
t
e
133
Voting...
is for everyone!
Did you know the voters' pamphlet is
available in Spanish and Chinese?
The federal Voting Rights Act requires counties home to
large minority language groups with limited English skills to
translate election materials.
Based on the 2000 Census, Washington is required to provide
the voters' pamphlet (and other election materials) in Chinese
to residents in certain areas of King County, and in Spanish
throughoutYakima, Franklin, and Adams counties.
We're still waiting for 2010 Census results, but the state
anticipates adding translated election materials in several
counties by 2012. Some counties may require translations in
multiple languages.
Did you know the voters' pamphlet is
available in formats for people with visual
disabilities?
State law requires the voters' pamphlet to be available to
people with visual disabilities upon request.
Audio, as well as plain text and electronic Braille for text
readers, is available at www.vote.wa.gov.
Braille, audio, and large -print voters' pamphlets are available
upon request.To request an alternate format be sent to you, or
someone you know, email voterspamphlet@sos.wa.gov and
include your preferred format, name, and mailing address, or
call the voter hotline at (800) 448-4881.
0• • • •
County Elections Contact Information
Adams County
210 W Broadway Ave, Ste 200
Ritzville, WA 99169-1897
Phone: (509) 659-3249
TDD/TTY: (509) 659-1122
Asotin County
PO Box 129
Asotin, WA 99402-0129
Phone: (509) 243-2084
TDD/M.- (800) 855-1155
Benton County
PO Box 470
Prosser, WA 99350-0470
Phone: (509) 736-3085
TDD/TTY: (800) 833-6388
Chelan County
PO Box 4760
Wenatchee, WA 98807-4760
Phone: (509) 667-6808
TDD/TTY: (800) 833-6388
Clallam County
223 E 4th St, Ste 1
Port Angeles, WA 98362
Phone: (360) 417-2221
Toll -free (866) 433-8683
TDDlTTY: (800) 833-6388
Clark County
PO Box 8815
Vancouver, WA 98666-8815
Phone: (360) 397-2345
TDDITTY: (800) 223-3131
Columbia County
341 E Main St, Ste 3
Dayton, WA 99328-1361
Phone: (509) 382-4541
TDD/TTY: (800) 833-6388
Cowlitz County
207 4th Ave N, Rm 107
Kelso, WA 98626-4130
Phone: (360) 577-3005
TDD/TTY: (360) 577-3061
Douglas County
PO Box 456
Waterville, WA 98858
Phone: (509) 745-8527
TDD/TTY: (509) 745-8527 ext 207
Ferry County
350 E Delaware Ave, #2
Republic, WA 99166
Phone: (509) 775-5200
TDD/TTY: (800) 833-6388
Franklin County
PO Box 1451
Pasco, WA 99301
Phone: (509) 545-3538
TDD/TTY: (800) 833-6388
Garfield County
PO Box 278
Pomeroy, WA 99347
Phone: (509) 843-1411
TDDfTTY: (800) 833-6388
Grant County
PO Box 37
Ephrata, WA 98823
Phone: (509) 754-2011 ext 343
TDD[TTY: (800) 833-6388
Grays Harbor County
100 W Broadway, Ste 2
Montesano, WA 98563
Phone: (360) 249-4232
TDD/TTY: (360) 249-6575
Island County
PO Box 1410
Coupeville, WA 98239
Phone: (360) 679-7366
TDD/TTY: (360) 679-7305
Jefferson County
PO Box 563
PortTownsend, WA 98368
Phone: (360) 385-9119
TDD/TTY: (800) 833-6388
King County
MAIL: 919 SW Grady Way
Renton, WA 98057-2906
Phone: (206.) 296-8683
TDD/TTY: 711
Kitsap County
614 Division St
Port Orchard, WA 98366
Phone: (360) 337-7128
Kittitas County
205 W 5th Ave, Ste 105
Ellensburg, WA 98926
Phone: (509) 962-7503
TDD/TTY: (800) 833-6388
Klickitat County
205 S Columbus Ave, Stop 2
Goldendaie. WA 98620
Phone: (509) 773-4001
TDD/TTY: (800) 833-6388
Lewis County
PO Box 29
Chehalis, WA 98532-0029
Phone: (360) 740-1278
TDD/TTY: (360) 740-1480
Lincoln County
PO Box 28
Davenport, WA 99122
Phone: (509) 725-4971
TDD/TTY: (800) 833-6388
Mason County
PO Box 400
Shelton, WA 98584
Phone: (360) 427-9670 ext 470
TDD/TTY: (800) 833-6388
uKanogan bounty
PO Box 1010
Okanogan, WA 98840
Phone: (509) 422-7240
TDD/TT_Y: (800) 833-6388
racmc e,oum y
PO Box 97
South Bend, WA 98586-0097
Phone: (360) 875-9317
TDD/TTY: (360) 875-9400
Pend Oreille County
PO Box 5015
Newport, WA 99156
Phone: (509) 447-6472
TDDfM. (509) 447-3186
Pierce County
2501 S 35th St, Ste C
Tacoma, WA 98409
Phone: (253) 798-8683
TDD/TTY: 711
San Juan County
PO Box 638
Friday Harbor, WA 98250
Phone: (360) 378-3357
TDDrrTY: (360) 378-4151
Magli bounty
PO Box 1306
Mount Vernon, WA 98273
Phone: (360) 336-9305
TDDlTTY: (800) 833-6388
Skamania County
PO Box 790
Stevenson, WA 98648
Phone: (509) 427-3730
TDDlTTY: (800) 833-6388
Snohomish County
3000 Rockefeller Ave, MS 505
Everett, WA 98201
Phone: (425) 388-3444
TDD/T TY: (425) 388-3700
Spokane County
1033W Gardner Ave
Spokane, WA 99260
Phone: (509) 477-2320
TDD/TTY: (509) 477-2333
aievens county
215 S Oak St, Rm 106
Colville, WA 99114
Phone: (509) 684-7514
Toll -free (866) 307-9060
TDDlTTY. (800) 833-6384
Thurston County
2000 Lakeridge Dr SW
Olympia, WA 98502-6090
Phone: (360) 786-5408
TDD/TTY: (360) 754-2933
Wahkiakum County
PO Box 543
Cathlamet, WA 98612
Phone: (360) 795-3219
TDD)TTY: (800) 833-6388
Walla Walla County
PO Box 2176
Walla Walla, WA 99362
Phone: (509) 524-2530
TDD/TTY: (800) 833-6388
Whatcom County
311 Grand Ave, Ste 103
Bellingham, WA 98225
Phone: (360)676-6742
TDD/TTY: (360) 738-4555
Whitman County
PO Box 191
Colfax, WA 99111
Phone: (509) 397-5284
TDD/TTY: (800) 833-6388
Yakima County
128 N 2nd St, Rm 117
Yakima, WA 98901
Phone: (509) 574-1340
TDD/TTY: (800) 833-6388
Links to websites for all county elections departments can be found at www.vote.wa.gov,
sure ofi
o Secretary of State, State of Washington
w PO Box 40220
ynr Olympia WA 98504-0220
Edition 26
NONPROFIT ORG,
U.S. POSTAGE
PAID
SEATTLE, WA
PERMIT NO. 1216
ECRWSS
Residential Customer
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