H-3289

AN ACT Relating to a tax on the sale of liquor advertising to fund alcohol counteradvertising; adding a new chapter to Title 82 RCW; and providing an effective date.

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

NEW SECTION. Sec. 1. The legislature finds that adult citizens of this state have the right to use alcohol in a responsible manner. However, the illegal use of alcohol by minors, the high incidence of driving while under the influence of alcohol, the health risks associated with the abuse of alcohol, and the large number of alcohol-related crimes in Washington state are all compelling problems that the state must address.

Alcohol is an illegal drug for persons under twenty-one years of age, yet it has been estimated that over fifty thousand students in grades six to twelve in Washington schools can be considered heavy drinkers and over fifty percent have tried alcohol. Almost one-half of the deaths and almost one-quarter of the disabling injuries on Washington highways result from accidents involving drivers under the influence of alcohol. As a class, young people are greatly overrepresented in the number of alcohol-related collisions. Alcohol-related accidents are the leading cause of death in sixteen to twenty-four year olds in the United States.

Alcohol abuse has been linked to a wide array of family and health problems, causing much pain and suffering. The treatment of these problems raises the cost of health care for all citizens of the state. Approximately one hundred forty-five babies are born in Washington each year with fetal alcohol syndrome. Fetal alcohol syndrome is the third leading cause of mental retardation in the United States.

More than one-third of the arrests in the United States each year are related to alcohol abuse. Taxpayers in the United States pay one hundred fifty million dollars a year for the arrest, trial, and jail time of these people.

The legislature further finds that advertising has a tremendous effect on the attitudes, beliefs, social behavior, and consumer behavior of citizens of all ages, especially young persons. It is estimated that over seventy percent of high school seniors watch some television every day. The average primary and secondary level student spends more time watching television than doing homework. Many advertisers have taken advantage of this eager market by explicitly or implicitly purveying the message that alcohol contributes to a person's attractiveness, athletic ability, professional ability, or social status. Advertisers have also attempted to make alcohol appealing to young people by linking alcohol to various animated characters and mascots. Moreover, some alcohol advertisements convey a sexist message by objectifying women.

Recognizing the severity of the problems associated with alcohol use and abuse, recognizing that the twenty-first amendment to the Constitution of the United States grants states the power to prohibit the sale of liquor entirely, or to regulate the time, place, and manner in which it may be served, recognizing the overriding state interest in protecting the health, welfare, and safety of its citizens, and recognizing that the right to sell liquor in the state of Washington is subject to any condition imposed by the state, the state hereby requires that any person or entity advertising or promoting the sale of liquor in this state shall pay the sales tax on liquor advertising mandated in this chapter. The purpose of this tax is to create a fund dedicated to a public awareness campaign regarding specific issues of public importance, including: The illegal use of liquor by minors; the dangers and consequences of driving while under the influence of liquor; and the societal, family, and health costs associated with alcoholism.

NEW SECTION. Sec. 2. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Advertisement" or "advertising" means a representation made in any medium for the purpose of inducing, or that is likely to induce, the purchase of a product.

(2) "Advertising time or space" refers to the units in which the right to advertise in any medium is sold.

(3) "Alcohol counteradvertisement" means a message, conveyed through any medium, intended to educate the public about an issue of public importance relating to the use of alcohol, such as: The illegal use of alcohol by minors; drunk driving; or alcoholism.

(4) "Liquor" means the same as the definition in RCW 66.04.010.

(5) Except for the terms defined in this section, the definitions in chapters 82.04, 82.08, and 82.12 RCW apply to this chapter.

NEW SECTION. Sec. 3. There is levied and there shall be collected a tax on each sale of advertising time or space to any person or entity selling or promoting the sale of liquor equal to ten percent of the selling price of the advertising time or space.

NEW SECTION. Sec. 4. (1) Chapter 82.32 RCW and RCW 82.08.050, 82.08.055, 82.08.060, 82.08.100, and 82.08.120 apply to the tax imposed in this chapter. The tax due dates, reporting periods, and return requirements applicable to chapter 82.04 RCW apply equally to the tax imposed in this chapter.

(2) The department of revenue shall by rule provide a method or methods of apportioning or allocating the taxable selling price of the advertising taxed under this chapter if the tax is applied to national, international, or multistate advertising and does not fairly represent the taxpayer's activity attributable to this state. The rule shall require the consideration of those facts, circumstances, and apportionment factors as will result in an equitable and constitutionally permissible division of the taxable activity.

NEW SECTION. Sec. 5. The alcohol counteradvertising account is created in the custody of the state treasurer. All designated receipts from this chapter shall be deposited into the account. Expenditures from the account may be made only on the authorization of the director of the division of alcohol and substance abuse in the department of social and health services for the purpose of creating and administering a public awareness campaign as provided in section 6 of this act.

NEW SECTION. Sec. 6. (1) A full-time public information officer within the department of social and health services division of alcohol and substance abuse shall design and administer a public awareness campaign using a multimedia approach to disseminate information to the general public. The goal of the campaign is to raise public awareness regarding the dangers of alcohol consumption by minors, alcohol-impaired driving, and alcohol abuse.

(2) In administering the public awareness campaign, the public information officer shall:

(a) Produce or contract for the production of alcohol counteradvertisements if necessary to fulfill the purposes of this chapter;

(b) Purchase the rights to use alcohol counteradvertisements that have already been produced by other entities, if the director deems the counteradvertisements to be of acceptable quality and consistent with the purposes of this chapter, and if this option is more cost-effective than producing original counteradvertisements of comparable quality;

(c) Purchase advertising time and space that is reasonably calculated to have the greatest impact on minors, potential drunk drivers, and problem drinkers;

(d) Solicit donations of public service advertising time and space whenever possible; and

(e) Study the impacts of the campaign on a continual basis and report the results of this study to the house of representatives and senate commerce and labor committees every two years beginning with the 1993 regular legislative session.

NEW SECTION. Sec. 7. 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. 8. Sections 1 through 7 of this act shall constitute a new chapter in Title 82 RCW.

NEW SECTION. Sec. 9. This act shall take effect October 1, 1992.