Bill Summary – FastDemocracy

Z-0450.2
                                 SENATE BILL 5847
     State of Washington         68th Legislature       2024 Regular Session
     By Senators Liias, King, Hasegawa, Nobles, Shewmake, and C. Wilson;
     by request of Department of Licensing
     Prefiled 12/14/23.    Read first time 01/08/24.   Referred to Committee
     on Transportation.
      AN ACT Relating to enhancing prorate and fuel tax collections by
  improving taxpayer compliance, providing additional enforcement
  mechanisms,   and  protecting   confidential  taxpayer  information;
  amending RCW 46.87.020, 46.87.080, 46.87.350, 82.38.020, 82.38.072,
  82.38.120, 82.38.140, 82.38.170, 82.38.220, 82.38.260, 82.38.270,
  82.38.380, 82.42.118, and 82.42.210; reenacting and amending RCW
  82.42.010; adding new sections to chapter 82.38 RCW; adding new
  sections to chapter 82.42 RCW; prescribing penalties; and providing
  an effective date.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
     Sec. 1.   RCW 46.87.020 and 2015 c 228 s 2 are each amended to
 read as follows:
     Provisions and terms used in this chapter have the meaning given
 to them in the international registration plan (IRP), in chapter
 46.04 RCW, or as otherwise defined in this section. Definitions given
 to terms by the IRP prevail unless given a different meaning in this
 chapter or in rules adopted under authority of this chapter.
     (1) "Adequate records" are records maintained by the owner of the
 fleet sufficient to enable the department to verify the distances
 reported in the owner's application for apportioned registration and
 to evaluate the accuracy of the owner's distance accounting system.
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     (2) "Apportionable vehicle" has the meaning given by the IRP,
 except that it does not include vehicles with a declared gross weight
 of ((twelve thousand)) 12,000 pounds or less.
     (3) "Cab card" is a certificate of registration issued for a
 vehicle.
     (4) "Credentials" means cab cards, apportioned plates, temporary
 operating authority, and validation tabs issued for proportionally
 registered vehicles.
     (5) "Declared combined gross weight" means the total unladen
 weight of any combination of vehicles plus the maximum weight of the
 load to be carried on the combination of vehicles as declared by the
 registrant.
     (6) "Declared gross weight" means the total unladen weight of any
 vehicle plus the maximum weight of the load to be carried on the
 vehicle as declared by the registrant. In the case of a bus, auto
 stage, or a passenger-carrying for hire vehicle with a seating
 capacity of more than six, the declared gross weight is determined by
 multiplying ((one hundred fifty)) 150 pounds by the number of seats
 in the vehicle, including the driver's seat, and adding this amount
 to the unladen weight of the vehicle. If the resultant gross weight
 is not listed in RCW 46.17.355, it must be increased to the next
 higher gross weight authorized in chapter 46.44 RCW.
     (7) "Department" means the department of licensing.
     (8) "Fleet" means one or more apportionable vehicles.
     (9) "In-jurisdiction distance" means the total distance, in
 miles, accumulated in a jurisdiction during the reporting period by
 vehicles of the fleet while they were a part of the fleet.
     (10) "IRP" means the international registration plan.
     (11) "Jurisdiction" means and includes a state, territory or
 possession of the United States, the District of Columbia, the
 Commonwealth of Puerto Rico, a foreign country, and a state or
 province of a foreign country.
     (12)   "Motor   carrier"   means  an   entity    engaged in   the
 transportation of goods or persons. "Motor carrier" includes a for-
 hire motor carrier, private motor carrier, exempt motor carrier,
 registrant licensed under this chapter, motor vehicle lessor, and
 motor vehicle lessee.
     (13) "Owner" means a person or business who holds the legal title
 to a vehicle, or if a vehicle is the subject of an agreement for its
 conditional sale with the right of purchase upon performance of the
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 conditions stated in the agreement and with an immediate right of
 possession vested in the conditional vendee, or if a vehicle is
 subject to a lease, contract, or other legal arrangement vesting
 right of possession or control, for security or otherwise, or if a
 mortgagor of a vehicle is entitled to possession, then the owner is
 deemed to be the person or business in whom is vested right of
 possession or control.
     (((13) [(14)])) (14) "Person" means any individual, partnership,
 association, public or private corporation, limited liability
 company, or other type of legal or commercial entity, including its
 members, managers, partners, directors, or officers.
     (((14) [(15)])) (15) "Prorate percentage" is the factor applied
 to the total proratable fees and taxes to determine the apportionable
 fees required for registration in a jurisdiction. It is determined by
 dividing the in-jurisdiction distance for a particular jurisdiction
 by the total distance.
      (((15) [(16)])) (16) "Registrant" means a person, business, or
 corporation in whose name or names a vehicle or fleet of vehicles is
 registered.
      (((16) [(17)])) (17) "Registration year" means the ((twelve)) 12-
 month period during which the credentials issued by the base
 jurisdiction are valid.
     (((17) [(18)])) (18) "Reporting period" means the period of
 ((twelve)) 12 consecutive months immediately prior to July 1st of the
 calendar year immediately preceding the beginning of the registration
 year for which apportioned registration is sought. If the fleet
 registration period commences in October, November, or December, the
 reporting period is the period of ((twelve)) 12 consecutive months
 immediately preceding July 1st of the current calendar year.
      (((18) [(19)])) (19) "Total distance" means all distance operated
 by a fleet of apportioned vehicles. "Total distance" includes the
 full    distance    traveled   in    all   vehicle   movements,    both
 interjurisdictional    and   intrajurisdictional,  including    loaded,
 unladen, deadhead, and bobtail distances. Distance traveled by a
 vehicle while under a trip lease is considered to have been traveled
 by the lessor's fleet. All distance, both interstate and intrastate,
 accumulated by vehicles of the fleet is included in the fleet
 distance.
      (20) "Deny" means to decline acceptance of an application for
 licensure or reinstatement.
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     (21) "Refuse" has the same meaning as "deny" in subsection (20)
 of this section.
     (22) "Revoke" means to prohibit all authority granted by this
 chapter, including the display and use of credentials issued by the
 department for a period of one year or greater or for an indefinite
 period.
     (23) "Suspend" means to restrict the grant of authority under
 this chapter for a period of less than one year.
     Sec. 2.   RCW 46.87.080 and 2015 c 228 s 10 are each amended to
 read as follows:
     (1) Upon making satisfactory application and payment of fees and
 taxes   for  proportional  registration  under   this  chapter,  the
 department must issue credentials. License plates must be displayed
 as required under RCW 46.16A.200(5). The license plates must be of a
 design determined by the department. The license plates must be
 treated with reflectorized material and clearly marked with the words
 "WASHINGTON" and "APPORTIONED," both words to appear in full and
 without abbreviation.
     (2) The cab card is the certificate of registration for the
 vehicle. The cab card must contain the name and address of the
 registrant as maintained in the records of the department, the
 license   plate  number   assigned  to   the  vehicle,   the  vehicle
 identification number, and other information the department may
 require. The cab card must be signed by the registrant, or a
 designated person if the registrant is a business, and must always be
 carried in the vehicle.
     (3) The apportioned license plates are not transferable. License
 plates must be legible and remain with the vehicle until the
 department requires them to be removed.
     (4) Validation tab(s) of a design determined by the department
 must be affixed to the license plate(s) as prescribed by the
 department and indicate the month and year for which the vehicle is
 registered.
     (5) A fleet vehicle properly registered is deemed to be fully
 registered in this state for any type of legal movement or operation.
 In instances in which a permit or grant of authority is required for
 interstate or intrastate operation, the vehicle must not be operated
 in interstate or intrastate commerce unless the owner is granted the
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 appropriate operating authority and the vehicle is being operated in
 conformity with that permit or operating authority.
     (6) The department may deny, suspend, or revoke the credentials
 authorized under subsection (1) of this section to any person: (a)
 Who formerly held any type of license, registration, credentials, or
 permit issued by the department pursuant to chapter 46.16A, 46.44,
 46.85, ((46.87,)) or 82.38 RCW or this chapter that has been revoked
 for cause, which cause has not been removed; (b) who is a subterfuge
 for the real party in interest whose license, registration,
 credentials, or permit issued by the department pursuant to chapter
 46.16A, 46.44, 46.85, ((46.87,)) or 82.38 RCW or this chapter and has
 been revoked for cause, which cause has not been removed; (c) who, as
 a person, individual licensee, or officer, partner, director, owner,
 or managing employee of a nonindividual licensee, has had a license,
 registration, or permit issued by the department pursuant to chapter
 46.16A, 46.44, 46.85, ((46.87,)) or 82.38 RCW or this chapter that
 has been revoked for cause, which cause has not been removed; (d) who
 has an unsatisfied debt to the state assessed under either chapter
 46.16A, 46.44, 46.85, ((46.87,)) 82.38, or 82.44 RCW or this chapter;
 or (e) who, as a person, individual licensee, officer, partner,
 director, owner, or managing employee of a nonindividual licensee,
 has been prohibited from operating as a motor carrier by the federal
 motor carrier safety administration or Washington state patrol and
 the cause for such prohibition has not been satisfied.
     (7) ((Before such denial, suspension, or revocation under
 subsection (6) of this section)) Any action initiated under
 subsection (6) of this section may be immediately issued as a notice
 of the adverse action. Upon service of that notice, the applicant,
 registrant, or owner must be granted 30 calendar days to request a
 review by the department on the action. If a timely request to review
 is received, the department must grant the applicant, registrant, or
 owner ((an informal hearing)) a review and at least ((ten)) 10 days
 written notice of the time ((and)), place, and method of the
 ((hearing)) review. If no request is received by the department, the
 action becomes final and subject to the provisions of RCW 46.87.300.
     Sec. 3.   RCW 46.87.350 and 2015 c 228 s 33 are each amended to
 read as follows:
     If a person is delinquent in the payment of any obligation, the
 department may give notice of the amount of the delinquency, in
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 person ((or)), by mail, or through electronic service, to persons
 having possession or control of credits or personal and real property
 belonging to the person, or owing any debts to the person. Any person
 notified may not transfer or dispose of credits, personal and real
 property, or debts without the consent of the department. A person
 notified must, within ((twenty)) 20 days after receipt of the notice,
 advise the department of any credits, personal and real property, or
 debts in his or her possession, under his or her control or owing by
 him or her, and must immediately deliver the credits, personal and
 real property, or debts to the department.
     If a person fails to timely answer the notice, a court may render
 judgment by default against the person.
     The notice and order to withhold and deliver constitutes a
 continuing lien on property of the person. The department must
 include in the notice to withhold and deliver "continuing lien." The
 effective date of a notice to withhold and deliver is the date of
 service.
     Sec. 4. RCW 82.38.020 and 2013 c 225 s 102 are each amended to
 read as follows:
     The definitions in this section apply throughout this chapter
 unless the context clearly requires otherwise.
     (1) "Blended fuel" means a mixture of fuel and another liquid,
 other than a de minimis amount of the liquid.
     (2) "Blender" means a person who produces blended fuel outside
 the bulk transfer-terminal system.
     (3) "Bond" means a bond duly executed with a corporate surety
 qualified under chapter 48.28 RCW payable to the state of Washington
 conditioned upon faithful performance of all requirements of this
 chapter.
     (4) "Bulk transfer-terminal system" means the fuel distribution
 system consisting of refineries, pipelines, vessels, and terminals.
 Fuel in a refinery, pipeline, vessel, or terminal is in the bulk
 transfer-terminal system.
     (5) "Bulk transfer" means a transfer of fuel by pipeline or
 vessel.
     (6) "Bulk storage" means the placing of fuel into a receptacle
 other than the fuel supply tank of a motor vehicle.
     (7) "Department" means the department of licensing.
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     (8) "Distributor" means a person who acquires fuel outside the
 bulk transfer-terminal system for importation into Washington, from a
 terminal or refinery rack located within Washington for distribution
 within Washington, or for immediate export outside the state of
 Washington.
     (9) "Dyed special fuel user" means a person authorized by the
 internal revenue code to operate a motor vehicle on the highway using
 dyed special fuel, in which the use is not exempt from the fuel tax.
     (10) "Evasion" or "evade" means to diminish or avoid the
 computation, assessment, or payment of authorized taxes or fees
 through:
     (a) A knowing: False statement; omission; misrepresentation of
 fact; or other act of deception;
     (b) An intentional: Failure to file a return or report; or other
 act of deception; or
     (c) The unlawful use of dyed special fuel.
     (11) "Exempt sale" means the sale of fuel to a person whose use
 of fuel is exempt from the fuel tax.
     (12) "Export" means to obtain fuel in this state for sales or
 distribution outside the state. Fuel distributed to a federally
 recognized Indian tribal reservation located within the state of
 Washington is not considered exported outside this state.
     (13) "Exporter" means a person who purchases fuel physically
 located in this state at the time of purchase and directly exports
 the fuel by a means other than the bulk transfer-terminal system to a
 destination outside of the state. If the exporter of record is acting
 as an agent, the person for whom the agent is acting is the exporter.
 If there is no exporter of record, the owner of the fuel at the time
 of exportation is the exporter.
     (14) "Fuel" means motor vehicle fuel or special fuel.
     (15) "Fuel user" means a person engaged in uses of fuel that are
 not specifically exempted from the fuel tax imposed under this
 chapter.
     (16) "Highway" means every way or place open to the use of the
 public, as a matter of right, for the purpose of vehicular travel.
     (17) "Import" means to bring fuel into this state by a means of
 conveyance other than the fuel supply tank of a motor vehicle.
     (18) "Importer" means a person who imports fuel into the state by
 a means other than the bulk transfer-terminal system. If the importer
 of record is acting as an agent, the person for whom the agent is
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 acting is the importer. If there is no importer of record, the owner
 of the fuel at the time of importation is the importer.
     (19) "International fuel tax agreement licensee" means a fuel
 user operating qualified motor vehicles in interstate commerce and
 licensed by the department under the international fuel tax
 agreement.
     (20) "Licensee" means a person holding a license issued under
 this chapter.
     (21) "Motor vehicle" means a self-propelled vehicle utilizing
 fuel as a means of propulsion.
     (22) "Motor vehicle fuel" means gasoline and any other
 inflammable gas or liquid, by whatsoever name the gasoline, gas, or
 liquid may be known or sold the chief use of which is as a fuel for
 the propulsion of motor vehicles or vessels.
     (23) "Natural gas" means naturally o