CERTIFICATION OF ENROLLMENT

          ENGROSSED SECOND SUBSTITUTE HOUSE BILL 2319

                      Referendum Bill 43

Sections 901 through 909, 911, 912, and 915(2) of Engrossed Second Substitute Senate Bill 2319 have been referred to the voters for their approval or rejection at the November 8, 1994, state general election unless section 13, chapter 2, Laws of 1994, (a portion of Initiative Measure 601) has been declared invalid or enjoined by the State Supreme Court.

If the referendum appears on the general election ballot and is approved by the voters, sections 901 through 903, 909, 911, 912, and 915(2) will take effect on December 8, 1994; sections 904 through 908 will take effect on July 1, 1995.

                      REFERENDUM BILL 43

     AN ACT Relating to violence prevention; amending RCW 66.24.210, 66.24.290, 82.08.150, 82.24.020, 82.64.010, 82.64.020, 82.64.030, 82.64.040; repealing RCW 82.64.060, and 82.64.900; providing an effective date; and providing for submission of this act to a vote of the people.

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

                    PART IX.  MISCELLANEOUS

     Sec. 901.  RCW 66.24.210 and 1993 c 160 s 2 are each amended to read as follows:

     (1) There is hereby imposed upon all wines sold to wine wholesalers and the Washington state liquor control board, within the state a tax at the rate of twenty and one-fourth cents per liter:  PROVIDED, HOWEVER, That wine sold or shipped in bulk from one winery to another winery shall not be subject to such tax.  The tax provided for in this section may, if so prescribed by the board, be collected by means of stamps to be furnished by the board, or by direct payments based on wine purchased by wine wholesalers.  Every person purchasing wine under the provisions of this section shall on or before the twentieth day of each month report to the board all purchases during the preceding calendar month in such manner and upon such forms as may be prescribed by the board, and with such report shall pay the tax due from the purchases covered by such report unless the same has previously been paid.  Any such purchaser of wine whose applicable tax payment is not postmarked by the twentieth day following the month of purchase will be assessed a penalty at the rate of two percent a month or fraction thereof.  If this tax be collected by means of stamps, every such person shall procure from the board revenue stamps representing the tax in such form as the board shall prescribe and shall affix the same to the package or container in such manner and in such denomination as required by the board and shall cancel the same prior to the delivery of the package or container containing the wine to the purchaser.  If the tax is not collected by means of stamps, the board may require that every such person shall execute to and file with the board a bond to be approved by the board, in such amount as the board may fix, securing the payment of the tax.  If any such person fails to pay the tax when due, the board may forthwith suspend or cancel the license until all taxes are paid.

     (2) An additional tax is imposed equal to the rate specified in RCW 82.02.030 multiplied by the tax payable under subsection (1) of this section.  All revenues collected during any month from this additional tax shall be transferred to the state general fund by the twenty-fifth day of the following month.

     (3) An additional tax is imposed on wines subject to tax under subsection (1) of this section, at the rate of one-fourth of one cent per liter for wine sold after June 30, 1987.  Such additional tax shall cease to be imposed on July 1, 2001.  All revenues collected under this subsection (3) shall be disbursed quarterly to the Washington wine commission for use in carrying out the purposes of chapter 15.88 RCW.

     (4) ((Until July 1, 1995,)) An additional tax is imposed on all wine subject to tax under subsection (1) of this section.  The additional tax is equal to twenty-three and forty-four one-hundredths cents per liter on fortified wine as defined in RCW 66.04.010(34) when bottled or packaged by the manufacturer and one cent per liter on all other wine.  All revenues collected during any month from this additional tax shall be deposited in the violence reduction and drug enforcement ((and education)) account under RCW 69.50.520 by the twenty-fifth day of the following month.

     Sec. 902.  RCW 66.24.290 and 1993 c 492 s 311 are each amended to read as follows:

     (1) Any brewer or beer wholesaler licensed under this title may sell and deliver beer to holders of authorized licenses direct, but to no other person, other than the board; and every such brewer or beer wholesaler shall report all sales to the board monthly, pursuant to the regulations, and shall pay to the board as an added tax for the privilege of manufacturing and selling the beer within the state a tax of two dollars and sixty cents per barrel of thirty-one gallons on sales to licensees within the state and on sales to licensees within the state of bottled and canned beer shall pay a tax computed in gallons at the rate of two dollars and sixty cents per barrel of thirty-one gallons.  Any brewer or beer wholesaler whose applicable tax payment is not postmarked by the twentieth day following the month of sale will be assessed a penalty at the rate of two percent per month or fraction thereof.  Each such brewer or wholesaler shall procure from the board revenue stamps representing such tax in form prescribed by the board and shall affix the same to the barrel or package in such manner and in such denominations as required by the board, and shall cancel the same prior to commencing delivery from his or her place of business or warehouse of such barrels or packages.  Beer shall be sold by brewers and wholesalers in sealed barrels or packages.  The revenue stamps provided under this section need not be affixed and canceled in the making of resales of barrels or packages already taxed by the affixation and cancellation of stamps as provided in this section.

     (2) An additional tax is imposed equal to seven percent multiplied by the tax payable under subsection (1) of this section.  All revenues collected during any month from this additional tax shall be transferred to the state general fund by the twenty-fifth day of the following month.

     (3) ((Until July 1, 1995,)) An additional tax is imposed on all beer subject to tax under subsection (1) of this section.  The additional tax is equal to two dollars per barrel of thirty-one gallons.  All revenues collected during any month from this additional tax shall be deposited in the violence reduction and drug enforcement ((and education)) account under RCW 69.50.520 by the twenty-fifth day of the following month.

     (4)(a) An additional tax is imposed on all beer subject to tax under subsection (1) of this section.  The additional tax is equal to ninety-six cents per barrel of thirty-one gallons through June 30, 1995, two dollars and thirty-nine cents per barrel of thirty-one gallons for the period July 1, 1995, through June 30, 1997, and four dollars and seventy-eight cents per barrel of thirty-one gallons thereafter.

     (b) The additional tax imposed under this subsection does not apply to the sale of the first sixty thousand barrels of beer each year by breweries that are entitled to a reduced rate of tax under 26 U.S.C. Sec. 5051, as existing on July 1, 1993, or such subsequent date as may be provided by the board by rule consistent with the purposes of this exemption.

     (c) All revenues collected from the additional tax imposed under this subsection (4) shall be deposited in the health services account under RCW 43.72.900.

     (5) The tax imposed under this section shall not apply to "strong beer" as defined in this title.

     Sec. 903.  RCW 82.08.150 and 1993 c 492 s 310 are each amended to read as follows:

     (1) There is levied and shall be collected a tax upon each retail sale of spirits, or strong beer in the original package at the rate of fifteen percent of the selling price.  The tax imposed in this subsection shall apply to all such sales including sales by the Washington state liquor stores and agencies, but excluding sales to class H licensees.

     (2) There is levied and shall be collected a tax upon each sale of spirits, or strong beer in the original package at the rate of ten percent of the selling price on sales by Washington state liquor stores and agencies to class H licensees.

     (3) There is levied and shall be collected an additional tax upon each retail sale of spirits in the original package at the rate of one dollar and seventy-two cents per liter.  The additional tax imposed in this subsection shall apply to all such sales including sales by Washington state liquor stores and agencies, and including sales to class H licensees.

     (4) An additional tax is imposed equal to fourteen percent multiplied by the taxes payable under subsections (1), (2), and (3) of this section.

     (5) ((Until July 1, 1995,)) An additional tax is imposed upon each retail sale of spirits in the original package at the rate of seven cents per liter.  The additional tax imposed in this subsection shall apply to all such sales including sales by Washington state liquor stores and agencies, and including sales to class H licensees.  All revenues collected during any month from this additional tax shall be deposited in the violence reduction and drug enforcement ((and education)) account under RCW 69.50.520 by the twenty-fifth day of the following month.

     (6)(a) An additional tax is imposed upon retail sale of spirits in the original package at the rate of one and seven-tenths percent of the selling price through June 30, 1995, two and six-tenths percent of the selling price for the period July 1, 1995, through June 30, 1997, and three and four-tenths of the selling price thereafter.  This additional tax applies to all such sales including sales by Washington state liquor stores and agencies, but excluding sales to class H licensees.

     (b) An additional tax is imposed upon retail sale of spirits in the original package at the rate of one and one-tenth percent of the selling price through June 30, 1995, one and seven-tenths percent of the selling price for the period July 1, 1995, through June 30, 1997, and two and three-tenths of the selling price thereafter.  This additional tax applies to all such sales to class H licensees.

     (c) An additional tax is imposed upon each retail sale of spirits in the original package at the rate of twenty cents per liter through June 30, 1995, thirty cents per liter for the period July 1, 1995, through June 30, 1997, and forty-one cents per liter thereafter.  This additional tax applies to all such sales including sales by Washington state liquor stores and agencies, and including sales to class H licensees.

     (d) All revenues collected during any month from additional taxes under this subsection shall be deposited in the health services account created under RCW 43.72.900 by the twenty-fifth day of the following month.

     (7) The tax imposed in RCW 82.08.020 shall not apply to sales of spirits or strong beer in the original package.

     (8) The taxes imposed in this section shall be paid by the buyer to the seller, and each seller shall collect from the buyer the full amount of the tax payable in respect to each taxable sale under this section.  The taxes required by this section to be collected by the seller shall be stated separately from the selling price and for purposes of determining the tax due from the buyer to the seller, it shall be conclusively presumed that the selling price quoted in any price list does not include the taxes imposed by this section.

     (9) As used in this section, the terms, "spirits," "strong beer," and "package" shall have the meaning ascribed to them in chapter 66.04 RCW.

     Sec. 904.  RCW 82.24.020 and 1993 c 492 s 307 are each amended to read as follows:

     (1) There is levied and there shall be collected as provided in this chapter, a tax upon the sale, use, consumption, handling, possession or distribution of all cigarettes, in an amount equal to the rate of eleven and one-half mills per cigarette.

     (2) ((Until July 1, 1995,)) An additional tax is imposed upon the sale, use, consumption, handling, possession, or distribution of all cigarettes, in an amount equal to the rate of ((one and one-half)) five and one-fourth mills per cigarette.  All revenues collected during any month from this additional tax shall be deposited in the violence reduction and drug enforcement ((and education)) account under RCW 69.50.520 by the twenty-fifth day of the following month.

     (3) An additional tax is imposed upon the sale, use, consumption, handling, possession, or distribution of all cigarettes, in an amount equal to the rate of ten mills per cigarette through June 30, 1994, eleven and one-fourth mills per cigarette for the period July 1, 1994, through June 30, 1995, twenty mills per cigarette for the period July 1, 1995, through June 30, 1996, and twenty and one-half mills per cigarette thereafter.  All revenues collected during any month from this additional tax shall be deposited in the health services account created under RCW 43.72.900 by the twenty-fifth day of the following month.

     (4) Wholesalers and retailers subject to the payment of this tax may, if they wish, absorb one-half mill per cigarette of the tax and not pass it on to purchasers without being in violation of this section or any other act relating to the sale or taxation of cigarettes.

     (5) For purposes of this chapter, "possession" shall mean both (a) physical possession by the purchaser and, (b) when cigarettes are being transported to or held for the purchaser or his or her designee by a person other than the purchaser, constructive possession by the purchaser or his or her designee, which constructive possession shall be deemed to occur at the location of the cigarettes being so transported or held.

     Sec. 905.  RCW 82.64.010 and 1991 c 80 s 1 are each amended to read as follows:

     Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

     (1) "Carbonated beverage" has its ordinary meaning and includes any nonalcoholic liquid intended for human consumption which contains carbon dioxide, whether carbonation is obtained by natural or artificial means.

     (2) "Previously taxed ((carbonated beverage or)) syrup" means ((a carbonated beverage or)) syrup in respect to which a tax has been paid under this chapter.  ((A "previously taxed carbonated beverage" includes carbonated beverages in respect to which a tax has been paid under this chapter on the carbonated beverage or on the syrup in the carbonated beverage.))

     (3) "Syrup" means a concentrated liquid which is added to carbonated water to produce a carbonated beverage.

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

     Sec. 906.  RCW 82.64.020 and 1991 c 80 s 2 are each amended to read as follows:

     (1) A tax is imposed on each sale at wholesale of ((a carbonated beverage or)) syrup in this state.  The rate of the tax shall be equal to ((eighty-four one-thousandths of a cent per ounce for carbonated beverages and seventy-five cents)) one dollar per gallon ((for syrups)).  Fractional amounts shall be taxed proportionally.

     (2) A tax is imposed on each sale at retail of ((a carbonated beverage or)) syrup in this state.  The rate of the tax shall be equal to the rate imposed under subsection (1) of this section.

     (3) Moneys collected under this chapter shall be deposited in the violence reduction and drug enforcement ((and education)) account under RCW 69.50.520.

     (4) Chapter 82.32 RCW applies to the taxes imposed in this chapter.  The tax due dates, reporting periods, and return requirements applicable to chapter 82.04 RCW apply equally to the taxes imposed in this chapter.

     Sec. 907.  RCW 82.64.030 and 1991 c 80 s 3 are each amended to read as follows:

     The following are exempt from the taxes imposed in this chapter:

     (1) Any successive sale of a previously taxed ((carbonated beverage or)) syrup.

     (2) Any ((carbonated beverage or)) syrup that is transferred to a point outside the state for use outside the state.  The department shall provide by rule appropriate procedures and exemption certificates for the administration of this exemption.

     (3) Any sale at wholesale of a trademarked ((carbonated beverage or)) syrup by any person to a person commonly known as a bottler who is appointed by the owner of the trademark to manufacture, distribute, and sell such trademarked ((carbonated beverage or)) syrup within a specified geographic territory.

     (4) Any sale of ((carbonated beverage or)) syrup in respect to which a tax on the privilege of possession was paid under this chapter before June 1, 1991.

     Sec. 908.  RCW 82.64.040 and 1991 c 80 s 7 are each amended to read as follows:

     (1) Credit shall be allowed, in accordance with rules of the department, against the taxes imposed in this chapter for any ((carbonated beverage or)) syrup tax paid to another state with respect to the same ((carbonated beverage or)) syrup.  The amount of the credit shall not exceed the tax liability arising under this chapter with respect to that ((carbonated beverage or)) syrup.

     (2) For the purpose of this section:

     (a) "((Carbonated beverage or)) Syrup tax" means a tax:

     (i) That is imposed on the sale at wholesale of ((carbonated beverages or)) syrup and that is not generally imposed on other activities or privileges; and

     (ii) That is measured by the volume of the ((carbonated beverage or)) syrup.

     (b) "State" means (i) a state of the United States other than Washington, or any political subdivision of such other state, (ii) the District of Columbia, and (iii) any foreign country or political subdivision thereof.

NEW SECTION. Sec. 909.  The following acts or parts of acts are each repealed:

     (1) RCW 82.64.060 and 1991 c 80 s 5; and

     (2) RCW 82.64.900 and 1989 c 271 s 509.

NEW SECTION. Sec. 911.  Sections 901 through 909 of this act shall be submitted as a single ballot measure to the people for their adoption and ratification, or rejection, at the next succeeding general election to be held in this state, in accordance with Article II, section 1 of the state Constitution, as amended, and the laws adopted to facilitate the operation thereof unless section 13, chapter 2, Laws of 1994, has been declared invalid or otherwise enjoined or stayed by a court of competent jurisdiction.

NEW SECTION. Sec. 912.  Sections 905 through 908 of this act shall not be construed as affecting any existing right acquired or liability or obligation incurred, nor as affecting any proceeding instituted under those sections, before the effective date of sections 905 through 908 of this act.

NEW SECTION. Sec. 915.  (2) Sections 904 through 908 of this act shall take effect July 1, 1995.