CERTIFICATION OF ENROLLMENT

                   ENGROSSED SENATE BILL 6198

                    Chapter 21, Laws of 2001

                        57th Legislature

                  2001 Second Special Session

CIGARETTE TAX CONTRACTS

                    EFFECTIVE DATE:  9/20/01

Passed by the Senate June 19, 2001   YEAS 41   NAYS 0                BRAD OWEN President of the Senate Passed by the House June 20, 2001   YEAS 81   NAYS 2

CERTIFICATE I, Tony M. Cook, Secretary of the Senate of the State of Washington, do hereby certify that the attached is  ENGROSSED SENATE BILL 6198 as passed by the Senate and the House of Representatives on the dates hereon set forth.

FRANK CHOPP Speaker of the       House of Representatives	TONY M. COOK                             Secretary
CLYDE BALLARD Speaker of the       House of Representatives

Approved July 13, 2001 Place Style On Codes above, and Style Off Codes below.

FILED                       July 13, 2001 - 3:12 p.m.

GARY LOCKE Governor of the State of Washington

Secretary of State                  State of Washington

          _______________________________________________

                    ENGROSSED SENATE BILL 6198

          _______________________________________________

         Passed Legislature - 2001 Second Special Session

State of Washington   57th Legislature 2001 Second Special Session

By Senators Prentice, Deccio, B. Sheldon, Honeyford, T. Sheldon, Jacobsen and Rasmussen

READ FIRST TIME 06/08/2001.  HELD AT THE DESK. 06/15/2001. UNDER SUSPENSION OF THE RULES, PLACED ON SECOND READING CALENDAR.

Allowing the governor to enter into cigarette sales contracts with certain Indian tribes.      

    AN ACT Relating to contracts concerning the sale of cigarettes; and amending RCW 43.06.---.

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

    Sec. 1.  RCW 43.06.--- and 2001 c 235 s 3 are each amended to read as follows:

    (1) The governor is authorized to enter into cigarette tax contracts with the Squaxin Island Tribe, the Nisqually Tribe, Tulalip Tribes, the Muckleshoot Indian Tribe, the Quinault Nation, the Jamestown S'Klallam Indian Tribe, the Port Gamble S'Klallam Tribe, the Stillaguamish Tribe, the Sauk-Suiattle Tribe, the Skokomish Indian Tribe, the Yakama Nation, the Suquamish Tribe, the Nooksack Indian Tribe, the Lummi Nation, the Chehalis Confederated Tribes, and the Upper Skagit Tribe.  Each contract adopted under this section shall provide that the tribal cigarette tax rate be one hundred percent of the state cigarette and state and local sales and use taxes within three years of enacting the tribal tax and shall be set no lower than eighty percent of the state cigarette and state and local sales and use taxes during the three-year phase-in period.  The three-year phase-in period shall be shortened by three months each quarter the number of cartons of nontribal manufactured cigarettes is at least ten percent or more than the quarterly average number of cartons of nontribal manufactured cigarettes from the six-month period preceding the imposition of the tribal tax under the contract.  Sales at a retailer operation not in existence as of the date a tribal tax under this section is imposed are subject to the full rate of the tribal tax under the contract.  The tribal cigarette tax is in lieu of the state cigarette and state and local sales and use taxes, as provided in RCW 43.06.---(3) (section 2, chapter 235, Laws of 2001).

    (2) A cigarette tax contract under this section is subject to RCW 43.06.--- (section 2, chapter 235, Laws of 2001).

    Passed the Senate June 19, 2001.

    Passed the House June 20, 2001.

Approved by the Governor July 13, 2001.

    Filed in Office of Secretary of State July 13, 2001.