HOUSE BILL REPORT

                  SB 6483

             As Reported By House Committee On:

                      Commerce & Labor

Title:  An act relating to the transfer of the enforcement authority for cigarette and tobacco taxes from the department of revenue to the liquor control board.

Brief Description:  Authorizing the transfer of enforcement of cigarette and tobacco taxes to the liquor control board.

Sponsors:  Senator West.

Brief History:

  Committee Activity:

Commerce & Labor:  2/23/98 [DP].

HOUSE COMMITTEE ON COMMERCE & LABOR

Majority Report:  Do pass.  Signed by 9 members:  Representatives McMorris, Chairman; Honeyford, Vice Chairman; Conway, Ranking Minority Member; Wood, Assistant Ranking Minority Member; Boldt; Clements; Cole; Hatfield and Lisk.

Staff:  Pam Madson (786-7166).

Background:  In 1997, the enforcement authority for cigarette and tobacco tax laws was transferred to the Liquor Control Board from the Department of Revenue.  One section that included, among the board's current duties, the authority for the board and its enforcement agents to enforce the cigarette and tobacco tax laws, also contained provisions that required the Liquor Control Board to reduce lost revenue from cigarette tax evasion by 50 percent in five years through active enforcement and negotiated agreements with Indian tribes.  The Governor vetoed this section, and with the veto eliminated the board's authorizing language.  In his veto message, the Governor did indicate support for the transfer of enforcement to the Liquor Control Board but objected to the other provisions contained in the section.

Summary of Bill:  The Liquor Control Board and its enforcement agents are authorized to enforce the cigarette and tobacco tax laws.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  None.

Testimony Against:  None.

Testified:  None.