BILL REQ. #: H-1495.3
| State of Washington | 59th Legislature | 2005 Regular Session |
Read first time 02/24/2005. Referred to Committee on Appropriations.
AN ACT Relating to consolidating the health services account and the general fund; amending RCW 43.41.260, 43.79.480, 43.84.092, 48.14.0201, 66.24.210, 66.24.290, 70.05.125, 70.47.015, 82.08.150, 82.24.020, 82.24.028, 82.26.020, and 82.26.028; reenacting and amending RCW 43.84.092 and 82.04.260; adding a new section to chapter 43.79 RCW; repealing RCW 43.72.900; providing effective dates; providing an expiration date; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 43.41.260 and 1995 c 265 s 21 are each amended to read
as follows:
The health care authority, the office of financial management, and
the department of social and health services shall together monitor the
enrollee level in the basic health plan and the medicaid caseload of
children ((funded from the health services account)). The office of
financial management shall adjust the funding levels by interagency
reimbursement of funds between the basic health plan and medicaid and
adjust the funding levels between the health care authority and the
medical assistance administration of the department of social and
health services to maximize combined enrollment.
Sec. 2 RCW 43.79.480 and 2002 c 365 s 15 are each amended to read
as follows:
(1) Moneys received by the state of Washington in accordance with
the settlement of the state's legal action against tobacco product
manufacturers, exclusive of costs and attorneys' fees, shall be
deposited in the tobacco settlement account created in this section
except as these moneys are sold or assigned under chapter 43.340 RCW.
(2) The tobacco settlement account is created in the state
treasury. Moneys in the tobacco settlement account may only be
transferred to the ((health services account)) general fund for the
purposes set forth in RCW 43.72.900, and to the tobacco prevention and
control account for purposes set forth in this section.
(3) The tobacco prevention and control account is created in the
state treasury. The source of revenue for this account is moneys
transferred to the account from the tobacco settlement account,
investment earnings, donations to the account, and other revenues as
directed by law. Expenditures from the account are subject to
appropriation.
Sec. 3 RCW 43.84.092 and 2003 c 361 s 602, 2003 c 324 s 1, 2003
c 150 s 2, and 2003 c 48 s 2 are each reenacted and amended to read as
follows:
(1) All earnings of investments of surplus balances in the state
treasury shall be deposited to the treasury income account, which
account is hereby established in the state treasury.
(2) The treasury income account shall be utilized to pay or receive
funds associated with federal programs as required by the federal cash
management improvement act of 1990. The treasury income account is
subject in all respects to chapter 43.88 RCW, but no appropriation is
required for refunds or allocations of interest earnings required by
the cash management improvement act. Refunds of interest to the
federal treasury required under the cash management improvement act
fall under RCW 43.88.180 and shall not require appropriation. The
office of financial management shall determine the amounts due to or
from the federal government pursuant to the cash management improvement
act. The office of financial management may direct transfers of funds
between accounts as deemed necessary to implement the provisions of the
cash management improvement act, and this subsection. Refunds or
allocations shall occur prior to the distributions of earnings set
forth in subsection (4) of this section.
(3) Except for the provisions of RCW 43.84.160, the treasury income
account may be utilized for the payment of purchased banking services
on behalf of treasury funds including, but not limited to, depository,
safekeeping, and disbursement functions for the state treasury and
affected state agencies. The treasury income account is subject in all
respects to chapter 43.88 RCW, but no appropriation is required for
payments to financial institutions. Payments shall occur prior to
distribution of earnings set forth in subsection (4) of this section.
(4) Monthly, the state treasurer shall distribute the earnings
credited to the treasury income account. The state treasurer shall
credit the general fund with all the earnings credited to the treasury
income account except:
(a) The following accounts and funds shall receive their
proportionate share of earnings based upon each account's and fund's
average daily balance for the period: The capitol building
construction account, the Cedar River channel construction and
operation account, the Central Washington University capital projects
account, the charitable, educational, penal and reformatory
institutions account, the common school construction fund, the county
criminal justice assistance account, the county sales and use tax
equalization account, the data processing building construction
account, the deferred compensation administrative account, the deferred
compensation principal account, the department of retirement systems
expense account, the drinking water assistance account, the drinking
water assistance administrative account, the drinking water assistance
repayment account, the Eastern Washington University capital projects
account, the education construction fund, the election account, the
emergency reserve fund, The Evergreen State College capital projects
account, the federal forest revolving account, ((the health services
account,)) the public health services account, the health system
capacity account, the personal health services account, the state
higher education construction account, the higher education
construction account, the highway infrastructure account, the
industrial insurance premium refund account, the judges' retirement
account, the judicial retirement administrative account, the judicial
retirement principal account, the local leasehold excise tax account,
the local real estate excise tax account, the local sales and use tax
account, the medical aid account, the mobile home park relocation fund,
the multimodal transportation account, the municipal criminal justice
assistance account, the municipal sales and use tax equalization
account, the natural resources deposit account, the oyster reserve land
account, the perpetual surveillance and maintenance account, the public
employees' retirement system plan 1 account, the public employees'
retirement system combined plan 2 and plan 3 account, the public
facilities construction loan revolving account beginning July 1, 2004,
the public health supplemental account, the public works assistance
account, the Puyallup tribal settlement account, the regional
transportation investment district account, the resource management
cost account, the site closure account, the special wildlife account,
the state employees' insurance account, the state employees' insurance
reserve account, the state investment board expense account, the state
investment board commingled trust fund accounts, the supplemental
pension account, the Tacoma Narrows toll bridge account, the teachers'
retirement system plan 1 account, the teachers' retirement system
combined plan 2 and plan 3 account, the tobacco prevention and control
account, the tobacco settlement account, the transportation
infrastructure account, the tuition recovery trust fund, the University
of Washington bond retirement fund, the University of Washington
building account, the volunteer fire fighters' and reserve officers'
relief and pension principal fund, the volunteer fire fighters' and
reserve officers' administrative fund, the Washington fruit express
account, the Washington judicial retirement system account, the
Washington law enforcement officers' and fire fighters' system plan 1
retirement account, the Washington law enforcement officers' and fire
fighters' system plan 2 retirement account, the Washington school
employees' retirement system combined plan 2 and 3 account, the
Washington state health insurance pool account, the Washington state
patrol retirement account, the Washington State University building
account, the Washington State University bond retirement fund, the
water pollution control revolving fund, and the Western Washington
University capital projects account. Earnings derived from investing
balances of the agricultural permanent fund, the normal school
permanent fund, the permanent common school fund, the scientific
permanent fund, and the state university permanent fund shall be
allocated to their respective beneficiary accounts. All earnings to be
distributed under this subsection (4)(a) shall first be reduced by the
allocation to the state treasurer's service fund pursuant to RCW
43.08.190.
(b) The following accounts and funds shall receive eighty percent
of their proportionate share of earnings based upon each account's or
fund's average daily balance for the period: The aeronautics account,
the aircraft search and rescue account, the county arterial
preservation account, the department of licensing services account, the
essential rail assistance account, the ferry bond retirement fund, the
grade crossing protective fund, the high capacity transportation
account, the highway bond retirement fund, the highway safety account,
the motor vehicle fund, the motorcycle safety education account, the
pilotage account, the public transportation systems account, the Puget
Sound capital construction account, the Puget Sound ferry operations
account, the recreational vehicle account, the rural arterial trust
account, the safety and education account, the special category C
account, the state patrol highway account, the transportation 2003
account (nickel account), the transportation equipment fund, the
transportation fund, the transportation improvement account, the
transportation improvement board bond retirement account, and the urban
arterial trust account.
(5) In conformance with Article II, section 37 of the state
Constitution, no treasury accounts or funds shall be allocated earnings
without the specific affirmative directive of this section.
Sec. 4 RCW 43.84.092 and 2004 c 242 s 60 are each amended to read
as follows:
(1) All earnings of investments of surplus balances in the state
treasury shall be deposited to the treasury income account, which
account is hereby established in the state treasury.
(2) The treasury income account shall be utilized to pay or receive
funds associated with federal programs as required by the federal cash
management improvement act of 1990. The treasury income account is
subject in all respects to chapter 43.88 RCW, but no appropriation is
required for refunds or allocations of interest earnings required by
the cash management improvement act. Refunds of interest to the
federal treasury required under the cash management improvement act
fall under RCW 43.88.180 and shall not require appropriation. The
office of financial management shall determine the amounts due to or
from the federal government pursuant to the cash management improvement
act. The office of financial management may direct transfers of funds
between accounts as deemed necessary to implement the provisions of the
cash management improvement act, and this subsection. Refunds or
allocations shall occur prior to the distributions of earnings set
forth in subsection (4) of this section.
(3) Except for the provisions of RCW 43.84.160, the treasury income
account may be utilized for the payment of purchased banking services
on behalf of treasury funds including, but not limited to, depository,
safekeeping, and disbursement functions for the state treasury and
affected state agencies. The treasury income account is subject in all
respects to chapter 43.88 RCW, but no appropriation is required for
payments to financial institutions. Payments shall occur prior to
distribution of earnings set forth in subsection (4) of this section.
(4) Monthly, the state treasurer shall distribute the earnings
credited to the treasury income account. The state treasurer shall
credit the general fund with all the earnings credited to the treasury
income account except:
(a) The following accounts and funds shall receive their
proportionate share of earnings based upon each account's and fund's
average daily balance for the period: The capitol building
construction account, the Cedar River channel construction and
operation account, the Central Washington University capital projects
account, the charitable, educational, penal and reformatory
institutions account, the common school construction fund, the county
criminal justice assistance account, the county sales and use tax
equalization account, the data processing building construction
account, the deferred compensation administrative account, the deferred
compensation principal account, the department of retirement systems
expense account, the drinking water assistance account, the drinking
water assistance administrative account, the drinking water assistance
repayment account, the Eastern Washington University capital projects
account, the education construction fund, the election account, the
emergency reserve fund, The Evergreen State College capital projects
account, the federal forest revolving account, ((the health services
account,)) the public health services account, the health system
capacity account, the personal health services account, the state
higher education construction account, the higher education
construction account, the highway infrastructure account, the
industrial insurance premium refund account, the judges' retirement
account, the judicial retirement administrative account, the judicial
retirement principal account, the local leasehold excise tax account,
the local real estate excise tax account, the local sales and use tax
account, the medical aid account, the mobile home park relocation fund,
the multimodal transportation account, the municipal criminal justice
assistance account, the municipal sales and use tax equalization
account, the natural resources deposit account, the oyster reserve land
account, the perpetual surveillance and maintenance account, the public
employees' retirement system plan 1 account, the public employees'
retirement system combined plan 2 and plan 3 account, the public
facilities construction loan revolving account beginning July 1, 2004,
the public health supplemental account, the public works assistance
account, the Puyallup tribal settlement account, the regional
transportation investment district account, the resource management
cost account, the site closure account, the special wildlife account,
the state employees' insurance account, the state employees' insurance
reserve account, the state investment board expense account, the state
investment board commingled trust fund accounts, the supplemental
pension account, the Tacoma Narrows toll bridge account, the teachers'
retirement system plan 1 account, the teachers' retirement system
combined plan 2 and plan 3 account, the tobacco prevention and control
account, the tobacco settlement account, the transportation
infrastructure account, the tuition recovery trust fund, the University
of Washington bond retirement fund, the University of Washington
building account, the volunteer fire fighters' and reserve officers'
relief and pension principal fund, the volunteer fire fighters' and
reserve officers' administrative fund, the Washington fruit express
account, the Washington judicial retirement system account, the
Washington law enforcement officers' and fire fighters' system plan 1
retirement account, the Washington law enforcement officers' and fire
fighters' system plan 2 retirement account, the Washington public
safety employees' plan 2 retirement account, the Washington school
employees' retirement system combined plan 2 and 3 account, the
Washington state health insurance pool account, the Washington state
patrol retirement account, the Washington State University building
account, the Washington State University bond retirement fund, the
water pollution control revolving fund, and the Western Washington
University capital projects account. Earnings derived from investing
balances of the agricultural permanent fund, the normal school
permanent fund, the permanent common school fund, the scientific
permanent fund, and the state university permanent fund shall be
allocated to their respective beneficiary accounts. All earnings to be
distributed under this subsection (4)(a) shall first be reduced by the
allocation to the state treasurer's service fund pursuant to RCW
43.08.190.
(b) The following accounts and funds shall receive eighty percent
of their proportionate share of earnings based upon each account's or
fund's average daily balance for the period: The aeronautics account,
the aircraft search and rescue account, the county arterial
preservation account, the department of licensing services account, the
essential rail assistance account, the ferry bond retirement fund, the
grade crossing protective fund, the high capacity transportation
account, the highway bond retirement fund, the highway safety account,
the motor vehicle fund, the motorcycle safety education account, the
pilotage account, the public transportation systems account, the Puget
Sound capital construction account, the Puget Sound ferry operations
account, the recreational vehicle account, the rural arterial trust
account, the safety and education account, the special category C
account, the state patrol highway account, the transportation 2003
account (nickel account), the transportation equipment fund, the
transportation fund, the transportation improvement account, the
transportation improvement board bond retirement account, and the urban
arterial trust account.
(5) In conformance with Article II, section 37 of the state
Constitution, no treasury accounts or funds shall be allocated earnings
without the specific affirmative directive of this section.
Sec. 5 RCW 48.14.0201 and 2004 c 260 s 24 are each amended to
read as follows:
(1) As used in this section, "taxpayer" means a health maintenance
organization as defined in RCW 48.46.020, a health care service
contractor as defined in RCW 48.44.010, or a self-funded multiple
employer welfare arrangement as defined in RCW 48.125.010.
(2) Each taxpayer shall pay a tax on or before the first day of
March of each year to the state treasurer through the insurance
commissioner's office. The tax shall be equal to the total amount of
all premiums and prepayments for health care services received by the
taxpayer during the preceding calendar year multiplied by the rate of
two percent.
(3) Taxpayers shall prepay their tax obligations under this
section. The minimum amount of the prepayments shall be percentages of
the taxpayer's tax obligation for the preceding calendar year
recomputed using the rate in effect for the current year. For the
prepayment of taxes due during the first calendar year, the minimum
amount of the prepayments shall be percentages of the taxpayer's tax
obligation that would have been due had the tax been in effect during
the previous calendar year. The tax prepayments shall be paid to the
state treasurer through the commissioner's office by the due dates and
in the following amounts:
(a) On or before June 15, forty-five percent;
(b) On or before September 15, twenty-five percent;
(c) On or before December 15, twenty-five percent.
(4) For good cause demonstrated in writing, the commissioner may
approve an amount smaller than the preceding calendar year's tax
obligation as recomputed for calculating the health maintenance
organization's, health care service contractor's, self-funded multiple
employer welfare arrangement's, or certified health plan's prepayment
obligations for the current tax year.
(5) Moneys collected under this section shall be deposited in the
general fund ((through March 31, 1996, and in the health services
account under RCW 43.72.900 after March 31, 1996)).
(6) The taxes imposed in this section do not apply to:
(a) Amounts received by any taxpayer from the United States or any
instrumentality thereof as prepayments for health care services
provided under Title XVIII (medicare) of the federal social security
act.
(b) Amounts received by any health care service contractor, as
defined in RCW 48.44.010, as prepayments for health care services
included within the definition of practice of dentistry under RCW
18.32.020.
(c) Participant contributions to self-funded multiple employer
welfare arrangements that are not taxable in this state.
(7) Beginning January 1, 2000, the state does hereby preempt the
field of imposing excise or privilege taxes upon taxpayers and no
county, city, town, or other municipal subdivision shall have the right
to impose any such taxes upon such taxpayers. This subsection shall be
limited to premiums and payments for health benefit plans offered by
health care service contractors under chapter 48.44 RCW, health
maintenance organizations under chapter 48.46 RCW, and self-funded
multiple employer welfare arrangements as defined in RCW 48.125.010.
The preemption authorized by this subsection shall not impair the
ability of a county, city, town, or other municipal subdivision to
impose excise or privilege taxes upon the health care services directly
delivered by the employees of a health maintenance organization under
chapter 48.46 RCW.
(8) The taxes imposed by this section apply to a self-funded
multiple employer welfare arrangement only in the event that they are
not preempted by the employee retirement income security act of 1974,
as amended, 29 U.S.C. Sec. 1001 et seq. The arrangements and the
commissioner shall initially request an advisory opinion from the
United States department of labor or obtain a declaratory ruling from
a federal court on the legality of imposing state premium taxes on
these arrangements. If there has not been a final determination by the
United States department of labor or a federal court that the taxes are
not preempted by federal law, the taxes provided for in this section
become effective on March 1, 2005, or thirty days following the
issuance of a certificate of authority, whichever is later. During the
time period between March 1, 2005, or thirty days following the
issuance of a certificate of authority, whichever is later, and the
final determination by the United States department of labor or a
federal court, any taxes shall be deposited in an interest bearing
escrow account maintained by the (([self-funded])) self-funded multiple
employer welfare arrangement. Upon a final determination that the
taxes are not preempted by the employee retirement income security act
of 1974, as amended, 29 U.S.C. Sec. 1001 et seq., all funds in the
interest bearing escrow account shall be transferred to the state
treasurer.
Sec. 6 RCW 66.24.210 and 2001 c 124 s 1 are each amended to read
as follows:
(1) There is hereby imposed upon all wines except cider sold to
wine distributors and the Washington state liquor control board, within
the state a tax at the rate of twenty and one-fourth cents per liter.
There is hereby imposed on all cider sold to wine distributors and the
Washington state liquor control board within the state a tax at the
rate of three and fifty-nine one-hundredths cents per liter: PROVIDED,
HOWEVER, That wine sold or shipped in bulk from one winery to another
winery shall not be subject to such tax. The tax provided for in this
section shall be collected by direct payments based on wine purchased
by wine distributors. Every person purchasing wine under the
provisions of this section shall on or before the twentieth day of each
month report to the board all purchases during the preceding calendar
month in such manner and upon such forms as may be prescribed by the
board, and with such report shall pay the tax due from the purchases
covered by such report unless the same has previously been paid. Any
such purchaser of wine whose applicable tax payment is not postmarked
by the twentieth day following the month of purchase will be assessed
a penalty at the rate of two percent a month or fraction thereof. The
board may require that every such person shall execute to and file with
the board a bond to be approved by the board, in such amount as the
board may fix, securing the payment of the tax. If any such person
fails to pay the tax when due, the board may forthwith suspend or
cancel the license until all taxes are paid.
(2) An additional tax is imposed equal to the rate specified in RCW
82.02.030 multiplied by the tax payable under subsection (1) of this
section. All revenues collected during any month from this additional
tax shall be transferred to the state general fund by the twenty-fifth
day of the following month.
(3) An additional tax is imposed on wines subject to tax under
subsection (1) of this section, at the rate of one-fourth of one cent
per liter for wine sold after June 30, 1987. After June 30, 1996, such
additional tax does not apply to cider. An additional tax of five one-
hundredths of one cent per liter is imposed on cider sold after June
30, 1996. All revenues collected under this subsection (3) shall be
disbursed quarterly to the Washington wine commission for use in
carrying out the purposes of chapter 15.88 RCW.
(4) An additional tax is imposed on all wine subject to tax under
subsection (1) of this section. The additional tax is equal to twenty-three and forty-four one-hundredths cents per liter on fortified wine
as defined in RCW 66.04.010(((38))) (39) when bottled or packaged by
the manufacturer, one cent per liter on all other wine except cider,
and eighteen one-hundredths of one cent per liter on cider. All
revenues collected during any month from this additional tax shall be
deposited in the violence reduction and drug enforcement account under
RCW 69.50.520 by the twenty-fifth day of the following month.
(5)(a) An additional tax is imposed on all cider subject to tax
under subsection (1) of this section. The additional tax is equal to
two and four one-hundredths cents per liter of cider sold after June
30, 1996, and before July 1, 1997, and is equal to four and seven one-hundredths cents per liter of cider sold after June 30, 1997.
(b) All revenues collected from the additional tax imposed under
this subsection (5) shall be deposited in the ((health services account
under RCW 43.72.900)) general fund.
(6) For the purposes of this section, "cider" means table wine that
contains not less than one-half of one percent of alcohol by volume and
not more than seven percent of alcohol by volume and is made from the
normal alcoholic fermentation of the juice of sound, ripe apples or
pears. "Cider" includes, but is not limited to, flavored, sparkling,
or carbonated cider and cider made from condensed apple or pear must.
Sec. 7 RCW 66.24.290 and 2003 c 167 s 5 are each amended to read
as follows:
(1) Any microbrewer or domestic brewery or beer distributor
licensed under this title may sell and deliver beer and strong beer to
holders of authorized licenses direct, but to no other person, other
than the board; and every such brewery or beer distributor shall report
all sales to the board monthly, pursuant to the regulations, and shall
pay to the board as an added tax for the privilege of manufacturing and
selling the beer and strong beer within the state a tax of one dollar
and thirty cents per barrel of thirty-one gallons on sales to licensees
within the state and on sales to licensees within the state of bottled
and canned beer, including strong beer, shall pay a tax computed in
gallons at the rate of one dollar and thirty cents per barrel of
thirty-one gallons. Any brewery or beer distributor whose applicable
tax payment is not postmarked by the twentieth day following the month
of sale will be assessed a penalty at the rate of two percent per month
or fraction thereof. Beer and strong beer shall be sold by breweries
and distributors in sealed barrels or packages. The moneys collected
under this subsection shall be distributed as follows: (a) Three-tenths of a percent shall be distributed to border areas under RCW
66.08.195; and (b) of the remaining moneys: (i) Twenty percent shall
be distributed to counties in the same manner as under RCW 66.08.200;
and (ii) eighty percent shall be distributed to incorporated cities and
towns in the same manner as under RCW 66.08.210.
(2) An additional tax is imposed on all beer and strong beer
subject to tax under subsection (1) of this section. The additional
tax is equal to two dollars per barrel of thirty-one gallons. All
revenues collected during any month from this additional tax shall be
deposited in the violence reduction and drug enforcement account under
RCW 69.50.520 by the twenty-fifth day of the following month.
(3)(a) An additional tax is imposed on all beer and strong beer
subject to tax under subsection (1) of this section. The additional
tax is equal to ninety-six cents per barrel of thirty-one gallons
through June 30, 1995, two dollars and thirty-nine cents per barrel of
thirty-one gallons for the period July 1, 1995, through June 30, 1997,
and four dollars and seventy-eight cents per barrel of thirty-one
gallons thereafter.
(b) The additional tax imposed under this subsection does not apply
to the sale of the first sixty thousand barrels of beer each year by
breweries that are entitled to a reduced rate of tax under 26 U.S.C.
Sec. 5051, as existing on July 1, 1993, or such subsequent date as may
be provided by the board by rule consistent with the purposes of this
exemption.
(c) All revenues collected from the additional tax imposed under
this subsection (3) shall be deposited in the ((health services account
under RCW 43.72.900)) general fund.
(4) An additional tax is imposed on all beer and strong beer that
is subject to tax under subsection (1) of this section that is in the
first sixty thousand barrels of beer and strong beer by breweries that
are entitled to a reduced rate of tax under 26 U.S.C. Sec. 5051, as
existing on July 1, 1993, or such subsequent date as may be provided by
the board by rule consistent with the purposes of the exemption under
subsection (3)(b) of this section. The additional tax is equal to one
dollar and forty-eight and two-tenths cents per barrel of thirty-one
gallons. By the twenty-fifth day of the following month, three percent
of the revenues collected from this additional tax shall be distributed
to border areas under RCW 66.08.195 and the remaining moneys shall be
transferred to the state general fund.
(5) The board may make refunds for all taxes paid on beer and
strong beer exported from the state for use outside the state.
(6) The board may require filing with the board of a bond to be
approved by it, in such amount as the board may fix, securing the
payment of the tax. If any licensee fails to pay the tax when due, the
board may forthwith suspend or cancel his or her license until all
taxes are paid.
Sec. 8 RCW 70.05.125 and 1998 c 266 s 1 are each amended to read
as follows:
(1) The county public health account is created in the state
treasury. Funds deposited in the county public health account shall be
distributed by the state treasurer to each local public health
jurisdiction based upon amounts certified to it by the department of
community, trade, and economic development in consultation with the
Washington state association of counties. The account shall include
funds distributed under RCW ((82.44.110 and)) 82.14.200(8) and such
funds as are appropriated to the account from the ((health services
account under RCW 43.72.900)) general fund, the public health services
account under RCW 43.72.902, and such other funds as the legislature
may appropriate to it.
(2)(a) The director of the department of community, trade, and
economic development shall certify the amounts to be distributed to
each local public health jurisdiction using 1995 as the base year of
actual city contributions to local public health.
(b) Only if funds are available and in an amount no greater than
available funds under RCW 82.14.200(8), the department of community,
trade, and economic development shall adjust the amount certified under
(a) of this subsection to compensate for any annexation of an area with
fifty thousand residents or more to any city as a result of a petition
during calendar year 1996 or 1997, or for any city that became newly
incorporated as a result of an election during calendar year 1994 or
1995. The amount to be adjusted shall be equal to the amount which
otherwise would have been lost to the health jurisdiction due to the
annexation or incorporation as calculated using the jurisdiction's 1995
funding formula.
(c) The county treasurer shall certify the actual 1995 city
contribution to the department. Funds in excess of the base shall be
distributed proportionately among the health jurisdictions based on
incorporated population figures as last determined by the office of
financial management.
(3) Moneys distributed under this section shall be expended
exclusively for local public health purposes.
Sec. 9 RCW 70.47.015 and 1997 c 337 s 1 are each amended to read
as follows:
(1) The legislature finds that the basic health plan has been an
effective program in providing health coverage for uninsured residents.
Further, since 1993, substantial amounts of public funds have been
allocated for subsidized basic health plan enrollment.
(2) It is the intent of the legislature that the basic health plan
enrollment be expanded expeditiously, ((consistent with funds available
in the health services account,)) with the goal of two hundred thousand
adult subsidized basic health plan enrollees and one hundred thirty
thousand children covered through expanded medical assistance services
by June 30, 1997, with the priority of providing needed health services
to children in conjunction with other public programs.
(3) Effective January 1, 1996, basic health plan enrollees whose
income is less than one hundred twenty-five percent of the federal
poverty level shall pay at least a ten-dollar premium share.
(4) No later than July 1, 1996, the administrator shall implement
procedures whereby hospitals licensed under chapters 70.41 and 71.12
RCW, health carrier, rural health care facilities regulated under
chapter 70.175 RCW, and community and migrant health centers funded
under RCW 41.05.220, may expeditiously assist patients and their
families in applying for basic health plan or medical assistance
coverage, and in submitting such applications directly to the health
care authority or the department of social and health services. The
health care authority and the department of social and health services
shall make every effort to simplify and expedite the application and
enrollment process.
(5) No later than July 1, 1996, the administrator shall implement
procedures whereby health insurance agents and brokers, licensed under
chapter 48.17 RCW, may expeditiously assist patients and their families
in applying for basic health plan or medical assistance coverage, and
in submitting such applications directly to the health care authority
or the department of social and health services. Brokers and agents
may receive a commission for each individual sale of the basic health
plan to anyone not signed up within the previous five years and a
commission for each group sale of the basic health plan, if funding for
this purpose is provided in a specific appropriation to the health care
authority. No commission shall be provided upon a renewal.
Commissions shall be determined based on the estimated annual cost of
the basic health plan, however, commissions shall not result in a
reduction in the premium amount paid to health carriers. For purposes
of this section "health carrier" is as defined in RCW 48.43.005. The
administrator may establish: (a) Minimum educational requirements that
must be completed by the agents or brokers; (b) an appointment process
for agents or brokers marketing the basic health plan; or (c) standards
for revocation of the appointment of an agent or broker to submit
applications for cause, including untrustworthy or incompetent conduct
or harm to the public. The health care authority and the department of
social and health services shall make every effort to simplify and
expedite the application and enrollment process.
Sec. 10 RCW 82.04.260 and 2003 2nd sp.s. c 1 s 4 and 2003 2nd
sp.s. c 1 s 3 are each reenacted and amended to read as follows:
(1) Upon every person engaging within this state in the business of
manufacturing:
(a) Wheat into flour, barley into pearl barley, soybeans into
soybean oil, canola into canola oil, canola meal, or canola byproducts,
or sunflower seeds into sunflower oil; as to such persons the amount of
tax with respect to such business shall be equal to the value of the
flour, pearl barley, oil, canola meal, or canola byproduct
manufactured, multiplied by the rate of 0.138 percent;
(b) Seafood products which remain in a raw, raw frozen, or raw
salted state at the completion of the manufacturing by that person; as
to such persons the amount of tax with respect to such business shall
be equal to the value of the products manufactured, multiplied by the
rate of 0.138 percent;
(c) By canning, preserving, freezing, processing, or dehydrating
fresh fruits and vegetables, or selling at wholesale fresh fruits and
vegetables canned, preserved, frozen, processed, or dehydrated by the
seller and sold to purchasers who transport in the ordinary course of
business the goods out of this state; as to such persons the amount of
tax with respect to such business shall be equal to the value of the
products canned, preserved, frozen, processed, or dehydrated multiplied
by the rate of 0.138 percent. As proof of sale to a person who
transports in the ordinary course of business goods out of this state,
the seller shall annually provide a statement in a form prescribed by
the department and retain the statement as a business record;
(d) Dairy products that as of September 20, 2001, are identified in
21 C.F.R., chapter 1, parts 131, 133, and 135, including byproducts
from the manufacturing of the dairy products such as whey and casein;
or selling the same to purchasers who transport in the ordinary course
of business the goods out of state; as to such persons the tax imposed
shall be equal to the value of the products manufactured multiplied by
the rate of 0.138 percent. As proof of sale to a person who transports
in the ordinary course of business goods out of this state, the seller
shall annually provide a statement in a form prescribed by the
department and retain the statement as a business record;
(e) Alcohol fuel, biodiesel fuel, or biodiesel feedstock, as those
terms are defined in RCW 82.29A.135; as to such persons the amount of
tax with respect to the business shall be equal to the value of alcohol
fuel, biodiesel fuel, or biodiesel feedstock manufactured, multiplied
by the rate of 0.138 percent. This subsection (1)(e) expires July 1,
2009; and
(f) Alcohol fuel or wood biomass fuel, as those terms are defined
in RCW 82.29A.135; as to such persons the amount of tax with respect to
the business shall be equal to the value of alcohol fuel or wood
biomass fuel manufactured, multiplied by the rate of 0.138 percent.
(2) Upon every person engaging within this state in the business of
splitting or processing dried peas; as to such persons the amount of
tax with respect to such business shall be equal to the value of the
peas split or processed, multiplied by the rate of 0.138 percent.
(3) Upon every nonprofit corporation and nonprofit association
engaging within this state in research and development, as to such
corporations and associations, the amount of tax with respect to such
activities shall be equal to the gross income derived from such
activities multiplied by the rate of 0.484 percent.
(4) Upon every person engaging within this state in the business of
slaughtering, breaking and/or processing perishable meat products
and/or selling the same at wholesale only and not at retail; as to such
persons the tax imposed shall be equal to the gross proceeds derived
from such sales multiplied by the rate of 0.138 percent.
(5) Upon every person engaging within this state in the business of
making sales, at retail or wholesale, of nuclear fuel assemblies
manufactured by that person, as to such persons the amount of tax with
respect to such business shall be equal to the gross proceeds of sales
of the assemblies multiplied by the rate of 0.275 percent.
(6) Upon every person engaging within this state in the business of
manufacturing nuclear fuel assemblies, as to such persons the amount of
tax with respect to such business shall be equal to the value of the
products manufactured multiplied by the rate of 0.275 percent.
(7) Upon every person engaging within this state in the business of
acting as a travel agent or tour operator; as to such persons the
amount of the tax with respect to such activities shall be equal to the
gross income derived from such activities multiplied by the rate of
0.275 percent.
(8) Upon every person engaging within this state in business as an
international steamship agent, international customs house broker,
international freight forwarder, vessel and/or cargo charter broker in
foreign commerce, and/or international air cargo agent; as to such
persons the amount of the tax with respect to only international
activities shall be equal to the gross income derived from such
activities multiplied by the rate of 0.275 percent.
(9) Upon every person engaging within this state in the business of
stevedoring and associated activities pertinent to the movement of
goods and commodities in waterborne interstate or foreign commerce; as
to such persons the amount of tax with respect to such business shall
be equal to the gross proceeds derived from such activities multiplied
by the rate of 0.275 percent. Persons subject to taxation under this
subsection shall be exempt from payment of taxes imposed by chapter
82.16 RCW for that portion of their business subject to taxation under
this subsection. Stevedoring and associated activities pertinent to
the conduct of goods and commodities in waterborne interstate or
foreign commerce are defined as all activities of a labor, service or
transportation nature whereby cargo may be loaded or unloaded to or
from vessels or barges, passing over, onto or under a wharf, pier, or
similar structure; cargo may be moved to a warehouse or similar holding
or storage yard or area to await further movement in import or export
or may move to a consolidation freight station and be stuffed,
unstuffed, containerized, separated or otherwise segregated or
aggregated for delivery or loaded on any mode of transportation for
delivery to its consignee. Specific activities included in this
definition are: Wharfage, handling, loading, unloading, moving of
cargo to a convenient place of delivery to the consignee or a
convenient place for further movement to export mode; documentation
services in connection with the receipt, delivery, checking, care,
custody and control of cargo required in the transfer of cargo;
imported automobile handling prior to delivery to consignee; terminal
stevedoring and incidental vessel services, including but not limited
to plugging and unplugging refrigerator service to containers,
trailers, and other refrigerated cargo receptacles, and securing ship
hatch covers.
(10) Upon every person engaging within this state in the business
of disposing of low-level waste, as defined in RCW 43.145.010; as to
such persons the amount of the tax with respect to such business shall
be equal to the gross income of the business, excluding any fees
imposed under chapter 43.200 RCW, multiplied by the rate of 3.3
percent.
If the gross income of the taxpayer is attributable to activities
both within and without this state, the gross income attributable to
this state shall be determined in accordance with the methods of
apportionment required under RCW 82.04.460.
(11) Upon every person engaging within this state as an insurance
agent, insurance broker, or insurance solicitor licensed under chapter
48.17 RCW; as to such persons, the amount of the tax with respect to
such licensed activities shall be equal to the gross income of such
business multiplied by the rate of 0.484 percent.
(12) Upon every person engaging within this state in business as a
hospital, as defined in chapter 70.41 RCW, that is operated as a
nonprofit corporation or by the state or any of its political
subdivisions, as to such persons, the amount of tax with respect to
such activities shall be equal to the gross income of the business
multiplied by the rate of 0.75 percent through June 30, 1995, and 1.5
percent thereafter. The moneys collected under this subsection shall
be deposited in the ((health services account created under RCW
43.72.900)) general fund.
(13)(a) Beginning October 1, 2005, upon every person engaging
within this state in the business of manufacturing commercial
airplanes, or components of such airplanes, as to such persons the
amount of tax with respect to such business shall, in the case of
manufacturers, be equal to the value of the product manufactured, or in
the case of processors for hire, be equal to the gross income of the
business, multiplied by the rate of:
(i) 0.4235 percent from October 1, 2005, through the later of June
30, 2007, or the day preceding the date final assembly of a
superefficient airplane begins in Washington state, as determined under
RCW 82.32.550; and
(ii) 0.2904 percent beginning on the later of July 1, 2007, or the
date final assembly of a superefficient airplane begins in Washington
state, as determined under RCW 82.32.550.
(b) Beginning October 1, 2005, upon every person engaging within
this state in the business of making sales, at retail or wholesale, of
commercial airplanes, or components of such airplanes, manufactured by
that person, as to such persons the amount of tax with respect to such
business shall be equal to the gross proceeds of sales of the airplanes
or components multiplied by the rate of:
(i) 0.4235 percent from October 1, 2005, through the later of June
30, 2007, or the day preceding the date final assembly of a
superefficient airplane begins in Washington state, as determined under
RCW 82.32.550; and
(ii) 0.2904 percent beginning on the later of July 1, 2007, or the
date final assembly of a superefficient airplane begins in Washington
state, as determined under RCW 82.32.550.
(c) For the purposes of this subsection (13), "commercial
airplane," "component," and "final assembly of a superefficient
airplane" have the meanings given in RCW 82.32.550.
(d) In addition to all other requirements under this title, a
person eligible for the tax rate under this subsection (13) must report
as required under RCW 82.32.545.
(e) This subsection (13) does not apply after the earlier of: July
1, 2024; or December 31, 2007, if assembly of a superefficient airplane
does not begin by December 31, 2007, as determined under RCW 82.32.550.
Sec. 11 RCW 82.08.150 and 2003 c 167 s 11 are each amended to
read as follows:
(1) There is levied and shall be collected a tax upon each retail
sale of spirits in the original package at the rate of fifteen percent
of the selling price. The tax imposed in this subsection shall apply
to all such sales including sales by the Washington state liquor stores
and agencies, but excluding sales to spirits, beer, and wine restaurant
licensees.
(2) There is levied and shall be collected a tax upon each sale of
spirits in the original package at the rate of ten percent of the
selling price on sales by Washington state liquor stores and agencies
to spirits, beer, and wine restaurant licensees.
(3) There is levied and shall be collected an additional tax upon
each retail sale of spirits in the original package at the rate of one
dollar and seventy-two cents per liter. The additional tax imposed in
this subsection shall apply to all such sales including sales by
Washington state liquor stores and agencies, and including sales to
spirits, beer, and wine restaurant licensees.
(4) An additional tax is imposed equal to fourteen percent
multiplied by the taxes payable under subsections (1), (2), and (3) of
this section.
(5) An additional tax is imposed upon each retail sale of spirits
in the original package at the rate of seven cents per liter. The
additional tax imposed in this subsection shall apply to all such sales
including sales by Washington state liquor stores and agencies, and
including sales to spirits, beer, and wine restaurant licensees. All
revenues collected during any month from this additional tax shall be
deposited in the violence reduction and drug enforcement account under
RCW 69.50.520 by the twenty-fifth day of the following month.
(6)(a) An additional tax is imposed upon retail sale of spirits in
the original package at the rate of one and seven-tenths percent of the
selling price through June 30, 1995, two and six-tenths percent of the
selling price for the period July 1, 1995, through June 30, 1997, and
three and four-tenths of the selling price thereafter. This additional
tax applies to all such sales including sales by Washington state
liquor stores and agencies, but excluding sales to spirits, beer, and
wine restaurant licensees.
(b) An additional tax is imposed upon retail sale of spirits in the
original package at the rate of one and one-tenth percent of the
selling price through June 30, 1995, one and seven-tenths percent of
the selling price for the period July 1, 1995, through June 30, 1997,
and two and three-tenths of the selling price thereafter. This
additional tax applies to all such sales to spirits, beer, and wine
restaurant licensees.
(c) An additional tax is imposed upon each retail sale of spirits
in the original package at the rate of twenty cents per liter through
June 30, 1995, thirty cents per liter for the period July 1, 1995,
through June 30, 1997, and forty-one cents per liter thereafter. This
additional tax applies to all such sales including sales by Washington
state liquor stores and agencies, and including sales to spirits, beer,
and wine restaurant licensees.
(d) All revenues collected during any month from additional taxes
under this subsection shall be deposited in the ((health services
account created under RCW 43.72.900)) general fund by the twenty-fifth
day of the following month.
(7) The tax imposed in RCW 82.08.020 shall not apply to sales of
spirits in the original package.
(8) The taxes imposed in this section shall be paid by the buyer to
the seller, and each seller shall collect from the buyer the full
amount of the tax payable in respect to each taxable sale under this
section. The taxes required by this section to be collected by the
seller shall be stated separately from the selling price and for
purposes of determining the tax due from the buyer to the seller, it
shall be conclusively presumed that the selling price quoted in any
price list does not include the taxes imposed by this section.
(9) As used in this section, the terms, "spirits" and "package"
shall have the meaning ascribed to them in chapter 66.04 RCW.
Sec. 12 RCW 82.24.020 and 2003 c 114 s 1 are each amended to read
as follows:
(1) There is levied and there shall be collected as provided in
this chapter, a tax upon the sale, use, consumption, handling,
possession or distribution of all cigarettes, in an amount equal to the
rate of eleven and one-half mills per cigarette.
(2) An additional tax is imposed upon the sale, use, consumption,
handling, possession, or distribution of all cigarettes, in an amount
equal to the rate of five and one-fourth mills per cigarette. All
revenues collected during any month from this additional tax shall be
deposited in the violence reduction and drug enforcement account under
RCW 69.50.520 by the twenty-fifth day of the following month.
(3) An additional tax is imposed upon the sale, use, consumption,
handling, possession, or distribution of all cigarettes, in an amount
equal to the rate of ten mills per cigarette through June 30, 1994,
eleven and one-fourth mills per cigarette for the period July 1, 1994,
through June 30, 1995, twenty mills per cigarette for the period July
1, 1995, through June 30, 1996, and twenty and one-half mills per
cigarette thereafter. All revenues collected during any month from
this additional tax shall be deposited in the ((health services account
created under RCW 43.72.900)) general fund by the twenty-fifth day of
the following month.
(4) Wholesalers subject to the payment of this tax may, if they
wish, absorb one-half mill per cigarette of the tax and not pass it on
to purchasers without being in violation of this section or any other
act relating to the sale or taxation of cigarettes.
(5) For purposes of this chapter, "possession" shall mean both (a)
physical possession by the purchaser and, (b) when cigarettes are being
transported to or held for the purchaser or his or her designee by a
person other than the purchaser, constructive possession by the
purchaser or his or her designee, which constructive possession shall
be deemed to occur at the location of the cigarettes being so
transported or held.
Sec. 13 RCW 82.24.028 and 2002 c 2 s 3 are each amended to read
as follows:
In addition to the tax imposed upon the sale, use, consumption,
handling, possession, or distribution of cigarettes set forth in RCW
82.24.020, there is imposed a tax in an amount equal to the rate of
thirty mills per cigarette effective January 1, 2002. All revenues
collected during any month from this additional tax shall be deposited
in the ((health services account created under RCW 43.72.900)) general
fund by the twenty-fifth day of the following month.
Sec. 14 RCW 82.26.020 and 2002 c 325 s 2 are each amended to read
as follows:
(1) There is levied and there shall be collected a tax upon the
sale, use, consumption, handling, or distribution of all tobacco
products in this state at the rate of forty-five percent of the
wholesale sales price of such tobacco products.
(2) Taxes under this section shall be imposed at the time the
distributor (a) brings, or causes to be brought, into this state from
without the state tobacco products for sale, (b) makes, manufactures,
or fabricates tobacco products in this state for sale in this state,
(c) ships or transports tobacco products to retailers in this state, to
be sold by those retailers, or (d) handles for sale any tobacco
products that are within this state but upon which tax has not been
imposed.
(3) An additional tax is imposed equal to seven percent multiplied
by the tax payable under subsection (1) of this section.
(4) An additional tax is imposed equal to ten percent of the
wholesale sales price of tobacco products. The moneys collected under
this subsection shall be deposited in the ((health services account
created under RCW 43.72.900)) general fund.
Sec. 15 RCW 82.26.028 and 2002 c 2 s 4 are each amended to read
as follows:
In addition to the taxes imposed upon the wholesale sales price of
tobacco products set forth in RCW 82.26.020 and 82.26.025, a surtax is
imposed equal to ninety-three and three-quarters percent of taxes
levied under RCW 82.26.020, effective January 1, 2002. The surtax
payable under this subsection shall be deposited in the ((health
services account created under RCW 43.72.900 for the purposes set forth
in that section)) general fund.
NEW SECTION. Sec. 16 A new section is added to chapter 43.79 RCW
to read as follows:
(1) For the fiscal biennium beginning July 1, 2005, and for each
fiscal biennium thereafter, the treasurer shall transfer the following
amounts from revenues deposited in the general fund pursuant to RCW
82.24.028 and 82.26.028:
(a) To the violence reduction and drug enforcement account under
RCW 69.50.520, six million nine hundred thirty-two thousand dollars, as
required by RCW 82.24.020(2); and
(b) To the water quality account under RCW 70.146.030, seven
million eight hundred eighty-five thousand dollars, as required by RCW
82.24.027(2)(a).
(2) Ten percent of the amounts deposited into the general fund
under RCW 82.24.028 and 82.26.028 shall be transferred no less
frequently than annually by the treasurer to the tobacco prevention and
control account established by RCW 43.79.480. The amounts transferred
shall be used exclusively for implementation of the Washington state
tobacco prevention and control plan. For the fiscal year beginning on
July 1, 2005, and for each fiscal year thereafter, the legislature
shall appropriate no less than twenty-six million two hundred forty
thousand dollars from the tobacco prevention and control account for
implementation of the Washington state tobacco prevention and control
plan.
NEW SECTION. Sec. 17 RCW 43.72.900 (Health services account) and
2003 c 259 s 1, 2002 c 371 s 909, 2002 c 2 s 2, & 1993 c 492 s 469 are
each repealed.
NEW SECTION. Sec. 18 Except for section 4 of this act, 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, 2005.
NEW SECTION. Sec. 19 Section 4 of this act takes effect July 1,
2006.
NEW SECTION. Sec. 20 Section 3 of this act expires July 1, 2006.