BILL REQ. #:  S-3754.1 

Read first time 01/10/2006.   Referred to Committee on Early Learning, K-12 & Higher Education.

     AN ACT Relating to distributions to the education legacy trust account; amending RCW 82.24.026, 28A.505.220, and 84.52.068; and providing an effective date.

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

Sec. 1   RCW 82.24.026 and 2005 c 514 s 1102 are each amended to read as follows:
     (1) 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.
     (2) The revenue collected under this section shall be deposited as follows:
     (a) 21.7 percent shall be deposited into the health services account.
     (b) ((2.8 percent shall be deposited into the general fund.
     (c))) 2.3 percent shall be deposited into the violence reduction and drug enforcement account under RCW 69.50.520.
     (((d))) (c) 1.7 percent shall be deposited into the water quality account under RCW 70.146.030.
     (((e))) (d) The remainder shall be deposited into the ((education legacy trust account)) state general fund.

Sec. 2   RCW 28A.505.220 and 2005 c 514 s 1103 are each amended to read as follows:
     (1) Total distributions from the student achievement fund to each school district shall be based upon the average number of full-time equivalent students in the school district during the previous school year as reported to the office of the superintendent of public instruction by August 31st of the previous school year.
     (2) The allocation rate per full-time equivalent student shall be three hundred dollars in the 2005-06 school year, three hundred seventy-five dollars in the 2006-07 school year, and four hundred fifty dollars in the 2007-08 school year. For each subsequent school year, the amount allocated per full-time equivalent student shall be adjusted for inflation as defined in RCW ((43.135.025(8))) 84.52.068. These allocations per full-time equivalent student from the student achievement fund shall be supported from ((the following sources:
     (a) Distributions from state property tax proceeds deposited into the student achievement fund under RCW 84.52.068; and
     (b))) distributions from the education legacy trust account created in RCW 83.100.230.
     (3) Any funds deposited in the student achievement fund under RCW 43.135.045 shall be allocated to school districts on a one-time basis using a rate per full-time equivalent student. These funds are provided in addition to any amounts allocated in subsection (2) of this section.
     (4) The school district annual amounts as defined in subsection (2) of this section shall be distributed on the monthly apportionment schedule as defined in RCW 28A.510.250.

Sec. 3   RCW 84.52.068 and 2005 c 514 s 1104 are each amended to read as follows:
     (1) A portion of the proceeds of the state property tax levy shall be deposited into the ((student achievement fund)) education legacy trust account as provided in this section.
     (2)(a) The amount of the deposit shall be based upon the average number of full-time equivalent students in the school districts during the previous school year as reported to the office of the superintendent of public instruction by August 31st of the previous school year.
     (b) ((For the 2004-2005 through 2007-2008 school years, an annual amount equal to two hundred fifty-four dollars per full-time equivalent student in all school districts shall be deposited in the student achievement fund.
     (c) For the 2008-2009 school year, an annual amount equal to two hundred sixty-five dollars per full-time equivalent student in all school districts shall be deposited in the student achievement fund.
     (d) For the 2009-2010 school year, an annual amount equal to two hundred seventy-seven dollars per full-time equivalent student in all school districts shall be deposited in the student achievement fund.
     (e) For the 2010-2011 school year and each year thereafter, an annual amount equal to two hundred seventy-eight dollars per full-time equivalent student in all school districts shall be deposited in the student achievement fund)) For the 2005-06 school year, an amount equal to three hundred dollars per full-time equivalent student in all school districts shall be deposited in the student achievement fund.
     (c) For the 2006-07 school year, an amount equal to three hundred seventy-five dollars per full-time equivalent student in all school districts shall be deposited in the student achievement fund.
     (d) For the 2007-08 school year, an amount equal to four hundred fifty dollars per full-time equivalent student in all school districts shall be deposited in the student achievement fund.
     (e) For each subsequent school year, the amount deposited per full-time equivalent student shall be adjusted for inflation.
     (f) The school district annual amounts shall be deposited based on the monthly apportionment schedule as defined in RCW 28A.510.250. The office of the superintendent of public instruction shall notify the department of the monthly amounts to be deposited into the student achievement fund to meet the apportionment schedule.
     (3) For the purposes of this section, "inflation" means the percentage change in the implicit price deflator for the United States for each fiscal year as published by the federal bureau of labor statistics.

NEW SECTION.  Sec. 4   This act takes effect July 1, 2006.