S-3491.1          _______________________________________________

                         SENATE CONCURRENT RESOLUTION 8417

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State of Washington              54th Legislature         1995 1st Special Session

By Senators Snyder and McDonald

Read first time 5/19/95.

Creating the cigarette tax and revenue loss advisory committee.

     WHEREAS, There is concern that more citizens of the state of Washington are purchasing cigarettes from casual smuggling, military commissaries, cross-border state sales, and Indian Smokeshops;

     NOW, THEREFORE, BE IT RESOLVED, By the Senate of the state of Washington, the House of Representatives concurring, That a joint select committee to be known as the cigarette tax and revenue loss advisory committee be established to 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 must include, but not be limited to, the following:

     (1) A review and analysis of all lost cigarette tax revenue covering, at a minimum, calendar years 1992 through 1995 and analyzing, among other factors, revenue losses that might be attributable to cigarette tax increases that took effect during that time;

     (2) An analysis on the feasibility of negotiation cooperative agreements between the state of Washington and federally recognized Indian tribes within its borders;

     (3) 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; and

     BE IT FURTHER RESOLVED, That the committee consist of:

     (1) 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;

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

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

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

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

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

     (7) The governor or the governor's designee; and

     (8) Nonlegislative members shall be reimbursed for travel expenses as provided in RCW 43.03.050 and 43.03.060.  Legislative members may be reimbursed pursuant to RCW 41.04.300; and

     BE IT FURTHER RESOLVED, That the advisory committee may enlist the assistance of representatives of local government and tax policy experts from the academic, legal, tribal, and business communities.

     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 under RCW 82.01.060(5); and

     BE IT FURTHER RESOLVED, That the advisory committee report its findings to the legislature by December 31, 1995.

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