CERTIFICATION OF ENROLLMENT

                  SUBSTITUTE SENATE BILL 5737

                   Chapter 306, Laws of 1997

                         (partial veto)

                        55th Legislature

                      1997 Regular Session

VIOLENCE REDUCTION AND DRUG ENFORCEMENT ACCOUNT FUNDING

                    EFFECTIVE DATE:  7/1/97

Passed by the Senate April 15, 1997   YEAS 33   NAYS 16              IRV NEWHOUSE President of the Senate Passed by the House April 18, 1997   YEAS 61   NAYS 34

CERTIFICATE I, Mike O=Connell, Secretary of the Senate of the State of Washington, do hereby certify that the attached is  SUBSTITUTE SENATE BILL 5737 as passed by the Senate and the House of Representatives on the dates hereon set forth.

CLYDE BALLARD Speaker of the       House of Representatives

MIKE O'CONNELL                             Secretary

Approved May 9, 1997, with the exception of sections 1 and 3, which are vetoed.Place Style On Codes above, and Style Off Codes below.

FILED                         May 9, 1997 - 1:53 p.m.

GARY LOCKE Governor of the State of Washington

Secretary of State                   State of Washington

          _______________________________________________

                    SUBSTITUTE SENATE BILL 5737

          _______________________________________________

             Passed Legislature - 1997 Regular Session

State of Washington      55th Legislature     1997 Regular Session

By Senate Committee on Ways & Means (originally sponsored by Senators Anderson, Loveland, Schow, Sheldon, Strannigan, Rossi, Deccio, Goings, Horn, Swecker, Rasmussen, Bauer, Hale, Roach, Johnson, Benton, West and Oke)

Read first time 04/07/97.

Reducing the carbonated beverage tax.   

    AN ACT Relating to reducing the carbonated beverage tax; amending RCW 82.64.020; creating a new section; making appropriations; providing an effective date; and declaring an emergency.

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

    *Sec. 1.  RCW 82.64.020 and 1994 sp.s. c 7 s 906 are each amended to read as follows:

    (1) A tax is imposed on each sale at wholesale of syrup in this state.  The rate of the tax shall be equal to ((one dollar)) fifty cents per gallon.  Fractional amounts shall be taxed proportionally.

    (2) A tax is imposed on each sale at retail of 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 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. 1 was vetoed.  See message at end of chapter.

NEW SECTION. Sec. 2.  (1) The sum of three million five hundred seventy thousand dollars, or as much thereof as may be necessary, is appropriated for the fiscal year ending June 30, 1998, from the general fund to the violence reduction and drug enforcement account for the purposes of RCW 69.50.520.

    (2) The sum of four million one hundred sixty thousand dollars, or as much thereof as may be necessary, is appropriated for the fiscal year ending June 30, 1999, from the general fund to the violence reduction and drug enforcement account for the purposes of RCW 69.50.520.

    *NEW SECTION.  Sec. 3. This act does not affect any existing right acquired or liability or obligation incurred under the section amended in this act or under any rule or order adopted under that section, nor does it affect any proceeding instituted under that section.

*Sec. 3 was vetoed.  See message at end of chapter.

NEW SECTION. Sec. 4.  This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 1997.

    Passed the Senate April 15, 1997.

    Passed the House April 18, 1997.

Approved by the Governor May 9, 1997, with the exception of certain items that were vetoed.

    Filed in Office of Secretary of State May 9, 1997.

    Note:  Governor's explanation of partial veto is as follows:

    "I am returning herewith, without my approval as to sections 1 and 3, Substitute Senate Bill No. 5737 entitled:

"AN ACT Relating to reducing the carbonated beverage tax;"

    Section 1 of Substitute Senate Bill No. 5737 would have reduced the carbonated beverage syrup tax from one dollar per gallon to fifty cents per gallon.  The funding reduction this would create in the Violence Reduction and Drug Education (VRDE) account would have been replaced by a General-Fund-State appropriation during the 1997-99 Biennium.

    Section 1 would reduce the state's revenues by $7.7 million in the 1997-99 biennium.  In light of the other very substantial tax cuts that I have already signed into law, it is clear that the state cannot afford section 1 of SSB 5737.

    Section 3 of SSB 5737 applies only to section 1, and is therefore rendered unnecessary by the veto of section 1.

    The people of the state indicated their support for funding the VRDE account through the carbonated beverage syrup tax when they approved Referendum 43 in November 1994.  Clearly, the dedication of those tax revenues to the VRDE account, at the rates set in Referendum 43, reflects the will of the voters of Washington.  Reducing the tax and replacing it with an appropriation would jeopardize the long-term prospects of the important programs funded through the account.

    For these reasons, I have vetoed sections 1 and 3 of Substitute Senate Bill No. 5737.  With the exception of sections 1 and 3, Substitute Senate Bill No. 5737 is approved."