1359 AMS SNYD SWK

HB 1359 - S AMD - 420

    BySenators Snyder and McDonald

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

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

    "(2) The department shall convene the cigarette tax and  revenue loss advisory committee.

    (a) The advisory committee shall consist of the following members:

    (i) Two members from the convenience store industry, appointed by the speaker of the house of representatives and the majority leader of the senate;

    (ii) Two members representing federally recognized Indian tribes, one appointed by the tribes contained within eastern Washington and one appointed by the tribes contained within western Washington;

    (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) Four members of the senate, two from each of the largest caucuses, and on the senate committee on ways and means, appointed by the president of the senate;

    (vii) Four members of the house of representatives, two from each of the largest caucuses, and at least one on the house committee on finance and at least one on the house committee on trade and economic development, appointed by the speaker of the house of representatives;

    (viii) the governor or the governor's designee.

    (b) The advisory committee may enlist the assistance of representatives of local government, and tax policy experts from the academic, legal, tribal, and business communities.

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

    (d) The advisory committee shall conduct a study of current state law as it applies to the unlawful possession, purchase, sale and use of unstamped and untaxed cigarettes on Indian reservations by nontribal members. The study shall include, but not be limited to the following:

    (i) A review and analysis of all lost cigarette tax revenue, determined from the best evidence and analytical techniques available, due to cross border sales, Indian sales, casual and organized bootlegging or smuggling, and sales on military reservations including but not limited to the period beginning January 1, 1992, and ending December 1, 1995.   

    (ii) An analysis quantifying losses in cigarette tax revenue attributable to each of the categories enumerated in (d) (i) of this subsection by fiscal year and the total lost revenue to the state in each fiscal year.  In any fiscal year during which the cigarette tax is increased, the losses must be analyzed to reveal revenue losses during the previous fiscal year and succeeding fiscal year.

    (iii) Sources of information used to make estimates of revenue loss in each fiscal 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 shall be clearly stated and justified.  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) An analysis of the underlying reasons for revenue loss.

    (v) An analysis on the feasibility of negotiating cooperative agreements between the state of Washington and federally recognized Indian tribes within its borders.

    (vi) An assessment of the effect of tax rates on cigarette compliance and to identify the state's best opportunity to ensure compliance, and reduce conflict.

    (e) The advisory committee may utilize the staff of the Governor's office on Indian Affairs, the house of representatives office of program research, senate committee services and research services provided to the legislature by the department of revenue pursuant to RCW 82.01.060(4).

    (f) The advisory committee shall submit its final report to the legislature by December 31, 1995."   

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