BP BHEAD INT H

AN ACT Relating to revenue for community empowerment activities; amending RCW 82.08.020 and 67.70.240; adding a new section to chapter 67.70 RCW; adding a new section to chapter 43.31 RCW; and providing for submission of this act to a vote of the people.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1. RCW 82.08.020 and 1992 c 194 s 9 are each amended to read as follows:

(1) There is levied and there shall be collected a tax on each retail sale in this state equal to six and five-tenths percent of the selling price.

(2) There is levied and there shall be collected an additional tax on each retail car rental, regardless of whether the vehicle is licensed in this state, equal to five and nine-tenths percent of the selling price. Ninety-one percent of the revenue collected under this subsection shall be deposited and distributed in the same manner as motor vehicle excise tax revenue collected under RCW 82.44.020(1). Nine percent of the revenue collected under this subsection shall be deposited in the transportation fund and distributed in the same manner as motor vehicle excise tax revenue collected under RCW 82.44.020(2).

(3) There is levied and there shall be collected an additional tax on each retail sale of ammunition equal to five percent of the selling price. The revenue collected under this subsection shall be deposited into the community empowerment trust fund, created in section 4 of this act.

(4) The taxes imposed under this chapter shall apply to successive retail sales of the same property.

((~~(4)~~)) (5) The rates provided in this section apply to taxes imposed under chapter 82.12 RCW as provided in RCW 82.12.020.

Sec. 2. RCW 67.70.240 and 1987 c 513 s 7 are each amended to read as follows:

The moneys in the state lottery account shall be used only: (1) For the payment of prizes to the holders of winning lottery tickets or shares; (2) for purposes of making deposits into the reserve account created by RCW 67.70.250 and into the lottery administrative account created by RCW 67.70.260; (3) for purposes of making deposits into the state's general fund; (4) for purposes of making deposits into the ((~~housing trust fund under the provisions of section 7 of this 1987 act~~)) community empowerment trust fund created by section 4 of this act; (5) for the purchase and promotion of lottery games and game-related services; and (6) for the payment of agent compensation.

The office of financial management shall require the allotment of all expenses paid from the account and shall report to the ways and means committees of the senate and house of representatives any changes in the allotments.

NEW SECTION. Sec. 3. A new section is added to chapter 67.70 RCW to read as follows:

The commission shall establish and operate an additional lottery in accordance with the provisions in this chapter. The state's share from the lottery created by this section shall be deposited into the community empowerment trust fund created by section 4 of this act.

NEW SECTION. Sec. 4. A new section is added to chapter 43.31 RCW to read as follows:

The Washington community empowerment trust fund account is created in the state treasury. The community empowerment trust fund shall include revenue from sources established in RCW 67.70.240, section 3 of this act, and 82.08.020, appropriations by the legislature, private contributions, and all other sources. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used only for community empowerment projects.

NEW SECTION. Sec. 5. If required under section 13, chapter 2, Laws of 1994, this act shall be submitted to the people for their adoption and ratification, or rejection, at the next succeeding general election to be held in the state, in accordance with Article II, section 1 of the state Constitution, as amended, and the laws enacted to facilitate the operation thereof.