1359 AAS 4/14/95 S3157.2

HB 1359 - S AMD  312

By Senators McDonald and Snyder

                                                   ADOPTED 4/14/95

    On page 13, line 17, before "The" insert "(1)"

    On page 13, after line 18, insert the following:

    "(2)(a) The department shall convene the cigarette tax and revenue loss advisory committee.  The advisory committee shall consist of the following members:

    (i) Two members recommended by the Washington state association of neighborhood stores, appointed by the speaker of the house of representatives and the majority leader of the senate;

    (ii) One member recommended by the Korean-American grocers association, appointed by the speaker of the house of representatives and the majority leader of the senate;

    (iii) One wholesaler of tobacco products, appointed by the speaker of the house of representatives and the majority leader of the senate;

    (iv) One distributor of tobacco products, appointed by the speaker of the house of representatives and the majority leader of the senate;

    (v) The director of the department of revenue or the director's designee;

    (vi) A representative of the Washington state liquor control board;

    (vii) Four representatives of the senate committee on ways and means;

    (viii) Four representatives of the house of representatives committee on finance; and

    (ix) The governor or the governor's designee.

    (b) Nonlegislative members may receive reimbursement from the governor's office for travel under RCW 43.03.050 and 43.03.060.  Legislative members may be reimbursed under RCW 41.04.300.

    (c)(i) The advisory committee shall review, analyze, and report all cigarette tax losses determined from the best evidence and analytical techniques available to have been experienced by the state of Washington due to cross border sales, Indian sales, casual and organized bootlegging or smuggling, and sales on military reservations.  This report must cover the period from January 1, 1992, through December 1, 1995.  This report must be made to the appropriate committees of the legislature by January 15, 1996.

    (ii) The report must quantify cigarette tax losses attributable to each of the categories enumerated in (c)(i) of this subsection by year and the total loss of revenue experienced by the state in each year.  In a year during which the cigarette tax was increased, the losses must be broken down to reveal revenue losses during the year before the increase and revenue losses during the year after the increase.

    (iii) The report must state the sources of information used to make estimates of revenue loss in each year and the methodology used to convert such information into estimates of revenue lost.  If assumptions are required to be made in developing these estimates, the assumptions must be clearly stated and justified in the report.  If a determination is made not to utilize certain available information that might be probative of revenue losses, the omission must be noted and the rationale for its omission clearly stated.

    (iv) In addition to establishing from the best information available the amount of cigarette revenue lost in each year, the report must include an enumeration and analysis of the underlying reasons for such losses, and a narrative summary accurately and objectively setting forth the findings embodied in the report.

    (d) The advisory committee may utilize the staff of the department, the Washington state liquor control board, the senate committee on ways and means, and the house of representatives committee on finance for the purpose of carrying out this subsection."

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